Professor’s Comments June 12, 2018

Posted by OMS  at June 12th, 2018

The markets were mostly flat yesterday.  They appeared to be waiting for news from the Shanghai Summit Meeting and tomorrow’s Fed meeting on interest rate policy. The Dow finished up 6 points at 25,322.  The NASDAQ and SPX were up 14 and 3 points, respectively.  Volume on the NYSE was low, coming in at 90 percent of its 10-day moving average.  There were 147 new highs and 25 new lows.

There were no changes to any of the cockpit indicators after yesterday’s trading.  All indicators on the major indexes remain on Buy Signals with my combination VTI-volume indicator in the Up-Trend Mode. The Dow is now up over 500 points since my combination VTI-volume indicator turned positive. As long as this indicator remain positive, the short-term picture remains positive. My upside target for Wave 5 up remains near or above the 26 January high of 26,616.

With the market marking time yesterday, there was another small change in the A-D oscillator.  This means that we need to be on the lookout for another Big Move within the next 1-2 days.  With the Fed announcement scheduled for tomorrow afternoon at 2pm, its likely the Big Move will occur sometime tomorrow. Students should remember that the period just prior to the Fed announcement at 2pm is usually very positive.

The Sector Ratio increased to 23-1 positive after yesterday’s session.  The Strong Sector List continues to be led Healthcare, Retail, Consumer Products, Retail, Energy, Computers, Food Drug, and Semiconductors.  The only Weakest Sector was Household Products.  With the Sector Ratio extremely strong now and major indexes in the Up-Trend Mode, I continue to look for opportunities to Buy and HOLD stocks and ETFs in the strongest sectors.  As long as the Sector Ratio maintains its positive bias, Buying and HOLDING stocks continues to be my primary strategy.

Gold and the miners were up slightly yesterday.  GLD finished up 0.22 cents at 123.22. With UDN, the inverse ETF for the Dollar back on the Dean’s List, I’m just waiting for gold to generate a new Buy Signal.  Right now, the VTI-volume indicator on gold is still neutral. The VTI-volume indicator on SLV, the silver ETF, has turned positive so silver is now on a Buy Signal.  My longer-term target for SLV remains near the 23-24 level. SLV closed at 15.94 BTW, students should look at a Weekly Chart of SLV and note how the ETF has been forming a corrective wave that is almost 2 years long. Recently the Bollinger Bands have become EXTREMELY narrow, suggesting a Big Move is likely. The VTI-volume indicator on SLV’s Weekly Chart is also on a Buy Signal.

Waiting for the Fed announcement.

That’s what I’m doing,

h

Market Signals for

06-12-2018

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