Professor’s Comments Monday August 26, 2013 DJIA chart
Posted by professor at August 26th, 2013
here’s the DJIA chart I referred to in the Weekend Strategy Review
A new rally leg could be starting.
On Thursday, the Professor highlighted 29 stocks that were starting Uptrends. Then on Friday, he highlighted another 38 stocks. When I saw this, I decided to stop by his office for a chat. But it was apparent that he didn’t want to talk, and just pointed to a chart he had placed near his computer. I was just about to ask him something, but when he dozed off again, I knew that we’re still not ready to rally. But we could be getting close. The Professor almost awake!
One of the things I have observed in the past is that whenever The Professor wakes up and starts to highlight over 50 stocks, it usually signals the start of a significant rally. That’s because The Professor is a TREND algorithm. And when he sees more than 50 stocks starting to trend, it usually means that the overall market is starting to trend.
I posted the chart he pointed to that shows what the Dow did after 2 January 2013, when The Professor highlighted 188 stocks that were entering Up trends. During the next two months, the Dow gained almost 600 points. Same for the 62 stocks he highlighted on 27 February. Then again on 23 April with 63, and finally the 93 he highlighted on 5 July that started the rally that took the Dow from 15,135 to 15,658.
So now with 28 on Thursday, and 38 more on Friday, I’m just waiting.
If the market starts to move higher on Monday, I’ll run the Professor about an hour after the open. If he starts to highlight more than 50 stocks, I’ll let you know. After that I’ll start buying stocks and index ETFs aggressively.
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Category: Professor's Comments