Professor’s Comments June 1, 2016

Posted by OMS  at June 1st, 2016

Stocks were mixed yesterday.  The Dow fell 86 points, closing at 17,787.  The NASDAQ was up 15 points at 4948.  Volume on the NYSE was moderate, coming in at 107 percent of its 10-day average.  There were 107 new highs and only 4 new lows.

There was another small change in the A-D oscillator yesterday, so we need to be on the lookout for a Big Move within the next 1-2 days.  The last six small change signals have produced moves of over 100 points in the Dow within 2 days of the signal.

It appears that yesterday’s pullback was part or all of a small retracement wave within wave ‘E’ up of Major Wave 2 up.  If this is the case, then stocks should start to rally once the current pullback completes.

Yesterday’s pullback in the Dow caused the 2-period RSI Wilder to generate a reading of 37.17, very close to oversold territory.  So IF the Dow pulls back again today, I will be looking to establish a small ‘trial’ position in DDM, the 2:1 positive leveraged ETF for the Dow.

As long as The Tide and the Dean’s List remain positive, I will look to trade the Dow for a re-test of the 20 April high of 18,168.

Gold rallied slightly yesterday from EXTREME oversold conditions.  Gold continues to look like it wants to move under the 2000 level, with 1980 a likely target.  UUP, the Dollar ETF, remains on the Dean’s List.  As long as it remains on the List, gold is likely headed lower.

BTW, I got a kick out of the folks on both Fox Business news and CNBC yesterday.  The reason they cited for yesterday’s decline was worry about the Fed raising interest rates.  Hmmm?  Didn’t they use the same rationale (raising rates) for the Big rally that occurred last Monday and Tuesday.  Hey guys…ya can’t have it both ways! 

This is one of the reasons that I did the Update webinar last Saturday.  I wanted my students to thoroughly understand the impact of a Fed rate increase in June or July.  I also wanted them to understand how this will impact the U.S. Dollar and what it will do to stocks and ETFs like Caterpillar (CAT) and EEV..  If you could not attend last Saturday’s webinar, I strongly urge you to get a copy of the recording and look at the example slides I used to walk you through this complex subject.  In the webinar I talk about the Dollar, its impact on the Euro and the Yen, equities, oil, and gold.  

The Dean’s List makes all this pretty simple.  It will tell you when the Dollar is strong and which stocks and ETFs to trade in a strong Dollar environment.  This way you won’t be confused by what the commentators are saying.  You’ll know! 

The recording is available for less than 30 bucks from AIQ or Dave.  We are making it available at this ridiculously low price because I believe it is something that ALL of my students should know and thoroughly understand.  If you are using the Dean’s List without knowing what the Dollar is doing, you’re NOT using the List correctly.   This webinar will open your eyes to a whole new way of looking at the market.  Again, I urge you to get a copy.

That’s what I’m doing,

h

Market Signals for

06-01-2016

One hour video recorded from May 28, 2016 The Professor’s Signs of a Major Market Turn – Prospectives and the Projected Timing and Levels One hour streaming video – includes webinar handouts The Professor usually holds an update class whenever the Market looks like it may be making a major turn. If you have been following the Professor’s Comments you know that a turn is due….. LEARN MORE

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The Hockey Stick Pattern
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