Professor’s Comments May 25, 2018

Posted by OMS  at May 25th, 2018

I woke up a little early this morning, so I thought I’d pass along a few comments on yesterday’s action.

The early decline and late rally appeared to be micro-wave ‘c’ of sub-wave 2 of Wave 3 up. If this is the case, yesterday’s late rally was the start of wave 3 of 3 up. The rally should continue today and for the next few day before the next correction (wave 4 of 3 up) occurs. With my VTI-volume indicator on a Buy Signal and in the Trend Mode, this is the time I want to hold (not trade) the stocks I was buying yesterday’s dip.

Same for gold and silver. Yesterday, the VTI-volume indicator for GDX moved to a Buy Signal. If I’m right about gold (the metal), it could have completed its wave 2 corrective pattern yesterday and starting a move toward the 1600 level. If this happens, I would expect GDX and other miners to move up with it. I have been buying GDX and other mining stocks for the past few weeks and now have a sizable Basic Position.

The Sector Ratio dipped to 12-12 after yesterday’s session. This is exactly what I would expect to see after a wave 2 correction. If the market starts to rally today I would expect to see the Ratio improve to 18-4 positive or better within the next few days. Am improvement like this wold confirm that the market is continuing its Wave 3 up.

The strong sectors I mentioned yesterday remain strong. All I’m doing now is holding the stocks I bought on yesterday’s dip. BTW, did you notice the 3 point+ pop Medtronic (MDT) had after it announced better than expected earnings? I took profits on the stock when it was over bought and then bought it back a few minutes later after it pulled back 1.5 points. I treated the short-term pop as a scalp.

Remember, if wave 3 of Wave 3 up is about to start, the Dow could be on its way to 26,617 or higher. Yesterday the Dow closed at 24,812, so with a possible gain of 1,800 Dow points, I want to give my stocks a chance to show me the money.

Buying and HOLDING stocks in strongest sectors from the Member’s Watch List.

That’s what I’m doing,

h

Market Signals for

05-25-2018

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

Not sure of the terminology we use? Check out these articles

The Hockey Stick Pattern
The Creation of Waves and Trends
FAQ

All of the commentary expressed in this site and any attachments are opinions of the author, subject to change, and provided for educational purposes only. Nothing in this commentary or any attachments should be considered as trading advice. Trading any financial instrument is RISKY and may result in loss of capital including loss of principal. Past performance is not indicative of future results. Always understand the RISK before you trade.