Professor’s Comments June 15, 2018

Posted by OMS  at June 15th, 2018

The markets were mixed yesterday.  The tech heavy NASDAQ rose 65 points while the Dow closed 26 points lower at 25,175.  The SPX finished up 7 points. Volume on the NYSE was moderate, coming in at 98 percent of its 10-day moving average.  There were 102 new highs and 51 new lows.

The VXO fell over 10 percent yesterday, its lowest level in 3 months.  Because volatility tends to revert to its mean, this is usually a short-term negative for the markets.  Also, there was another small change in the A-D oscillator, so with a negatively biased volatility index, we could see a Big Move to the downside today.  

The Dow has risen over 1,155 points since the current rally started on 29 May.  So, a pullback here would likely be either wave 2 down within Wave 3 up or Wave 2 down within Major Wave 5 up.  Either way, the markets should resume their rally once the correction completes.  I continue to view any pullback as a buying opportunity.

Students should note the differences between the 2-period RSI on the Dow and the same indicator on the NASDAQ and SPX.  Right now, the RSI on the Dow is currently oversold at 14.84.  The same indicator on the SPX and NASDAQ is showing readings of 62.4 and 93, respectively.  In other words, the Dow is oversold while the NASDAQ and SPX are overbought.  If the NASDAQ and SPX pullback today in sympathy with the Dow, it could present several opportunities for Rifle Trades in healthcare and tech stocks on the Member’s Watch List.  Watch the short-term bars for entry points. 

The Hi-Lo indicator turned negative after yesterday’s session.  This caused The Tide to turn neutral.  Other than that, there were no changes to 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.  My upside target for Wave 5 up remains near or above the 26 January high of 26,616.

The Sector Ratio rose to19-4 positive after yesterday’s session.  The Strong Sector List continues to be led Healthcare, Energy, Retail, Computers, Consumer Products, and Semiconductors.  The Weak Sector List was led by Household Products, Leisure, Telecoms, and CapGoods.  As long as the Sector Ratio maintains its positive bias, Buying and HOLDING stocks remains my primary strategy.

BTW, Royal Caribbean (RCL) jumped over 5 points yesterday to 113.50. During the day, it got as high as 115.55. I mention this today because I said I was interested in the stock about two weeks ago. Then the day after I bought it, an analyst at Morgan down graded the stock dropping it over 4 points . He put a one year target of 110 on the stock. Hmmm? I ignored the analyst, looked at my indicators, and bought more. My combination VTI-volume indicator on RCL remains on a Buy Signal.

Gold, silver, and the miners were up again yesterday.  GLD finished up 0.19 cents at 123.38.  The Bollinger Bands on GLD continue to tighten and appear ready to ‘Squeeze the Toothpaste’.  Yesterday’s up move caused my VTI-volume indicator to move to a Buy Signal.  The VTI-volume indicator on silver (SLV) remains positive. Yesterday SLV was up 0.09 cents to 16.17.  My target for SLV remains near the 23-24 level. Pay attention to the metals now.  They are showing signs that they want to trend higher.

That’s what I’m doing,

h

Market Signals for

06-15-2018

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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