Professor’s Comments June 8, 2018

Posted by OMS  at June 8th, 2018

The markets were mixed yesterday.  The Dow finished up 95 points at 25,241.  The NASDAQ and SPX were down 54 and 2 points, respectively.  Volume on the NYSE was moderate, coming in at 107 percent of its 10-day moving average.  There were 166 new highs and 57 new lows.

There were no changes to any of the cockpit indicators after yesterday’s trading.  All indicators remain positive and on Buy Signals.  However, the VTI-volume indicator on the Dow is still NOT in the Trend Mode and the 2-period RSI is now EXTREMELY overbought with a reading of 95.4, so a pullback could occur at any time. The pullback would likely be wave 2 down within Wave 5 up. Since the VTI-volume indicator on the Dow generated its Buy Signal, the Dow is now up over 440 points.  I would view any pullback at this point as a buying opportunity.

Students should remember that the theoretical target for Wave 5 up on the Dow is above the 26 January high of 26,617.  Prices could go even high IF a ‘through-over’ wave develops.  If this happens, Wave 5 up should continue for several months.

The Sector Ratio remained at 19-5 positive after yesterday’s session.  The Strongest Sector List continues to be led Healthcare, Retail, Computers, Semiconductors, Energy and Consumer Products.  The Weakest Sectors are Household Products, Foods, Telecoms, Service, and Media.  I continue to look for opportunities to Buy and HOLD stocks in the strongest sectors.  As long as the Sector Ratio maintains its positive bias, Buying and HOLDING stocks will continue to be my primary strategy.  

Gold and the miners were flat again yesterday.  GLD finished down 0.06 cents at 122.86.   My combination VTI-volume indicator on GLD remains on a neutral signal.  The same indicator on SLV, the ETF for silver, remains on a Buy Signal.  SLV was up 0,2 cents yesterday at 15.72.  The ETF appears to be completing final wave ‘e’ of a 2-year triangle.  I’m still looking for it to move above the 17 level now, which would project a move toward the 23-24 level.

That’s what I’m doing,

h

BTW, there was a ‘relatively’ small change in the A-D oscillator last night of 12 points.  I didn’t turn on the light on the cockpit because I normally use 10 points or less for this signal.  However, given that the market is EXTREMELY overbought, any pullback, IF one occurs, will likely correct a healthy portion of the recent 440-point gain in the Dow.

Market Signals for

06-08-2018

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