Professor’s Comments May 22, 2015
Posted by OMS at May 22nd, 2015
The Dow rose less than a point yesterday, closing at 18,296. Volume was moderate, coming in at 97 percent of its 10-day average. There were 86 new highs and 24 new lows.
Once again not much changed with yesterday’s trading. The indicators remain mixed, so I continue to wait.
Yesterday’s flat trading caused the A-D oscillator to have another relatively small change. This time the change was slightly over 10 points so I didn’t turn on the cockpit light. There have been a string of small change signals from the A-D oscillator during the past 10 days, so we still need to be on the lookout for a Big Move. However, with mixed signals and a flat market, I really can’t tell if the Big Move will be up or down.
The pattern suggests that the next MAJOR move in the market will be down. However, the current string of sideways days could also be the ‘Blade’ of a small Hockey Stick Pattern which could take prices slightly higher.
Because of this, I’m going to stay on the sidelines. With absolutely no movement in the indexes, and no stocks to trade from the Honor Roll, it’s been tough to even scalp this market.
Gold stocks remain flat too. Since crossing the 200, GDX has pulled back and appears to be consolidating between the 50 and the 200. If you look closely, even though the ETF has not gone anywhere for the past few weeks, slowly but surely the 50 is starting to edge up toward the 200. This is what you want to see if you are Bullish on gold. However at some point , probably sometime next week, GDX will need to start moving above the 200 so the 50 can continue to move higher. If this happens, I will start focusing on gold and mining shares.
Remember, the longer term chart for gold suggests that prices should start to move higher later this year as wave 5 up gets underway. And wave 5 up should be a 5 wave trend wave. If this is to happen, the 50 will need to cross above the 200 so GDX can start moving into an uptrend. All the building blocks needed to support higher prices are being put in place. The next step will require prices to move above the 200. I’m just watching to see if this happens.
That’s what I’m doing,
h
Market Signals for 05-22-2015 |
|
---|---|
DMI (DIA) | NEG |
DMI (QQQ) | NEG |
COACH (DIA) | POS |
COACH (QQQ) | POS |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | NEU |
SUM IND | POS |
Not sure of the terminology we use? Check out these articles
The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ
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Category: Professor's Comments