Professor’s Comments May 11, 2018

Posted by OMS  at May 11th, 2018

The markets rallied hard again yesterday breaking above the Upper Boundary Line of the triangle pattern they have been in for months.  The move was impulsive and argues that Wave 5 up is underway.  The Dow finished up 197 points at 24,740.  The NASDAQ and SPX finished the day up 65 and 25 points, respectively.  Volume on the NYSE was moderate, coming in at 93 percent of its 10-day moving average.  There were 139 new highs and 31 new lows.

All the cockpit indicators are now on Buy Signals.  My combination VTI-volume indicator remains on a Buy Signal, but the VTI portion of the signal is still only at 56.5, so it’s NOT in the Trend Mode …yet.  However, the 35-period CCI jumped to 130.7 last night, so it is showing Trend conditions.  Last night the 2-period RSI came in with an overbought reading of 98.8, so with mixed Trend indicators, the market will likely continue to push higher today.  However students should be aware that after two days of impulsive moves up, wave 1 of Wave 5 up could be nearing completion.  If the market starts to pull back to develop its wave 2 ‘Blade’, I would view this as another buying opportunity.  A ‘Blade’ would provide the energy for the next major move higher.

Yesterday’s Sector Ratio remained at 12-12 neutral.  Energy, Healthcare, Leisure, Computers and Semiconductors were the Strongest Sectors.  These are the sectors where I will be looking to buy stocks from the Member’s Watch List. With positive indicators on the cockpit and a positive Tide, I will be buying and holding stocks in the strongest sectors.

The weakest sectors were Household Products, Food, Service, Real Estate and Food Drugs. I will be avoiding stocks in these sectors. No weak sector stocks for me.

I had another nice day trading INTC, CSCO, and a few energy stocks.  The gold miners and silver (SLV) also contributed.  BTW, the Material Sector has moved to the Strong Sector List. The overall pattern in both gold and silver suggests higher prices.  My combination VTI-volume indicator for SLV generated a Buy Signal yesterday.  The same indicator for GDX is already on a Buy Signal.

That’s what I’m doing.

h

Market Signals for

05-11-2018

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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The Hockey Stick Pattern
The Creation of Waves and Trends
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