Professor’s Comments November 13, 2015

Posted by OMS  at November 13th, 2015

The Dow broke below the support line I mentioned yesterday and closed down 254 points at 17,448. Volume was moderate, coming in at 100 percent of its 10-day average.  There were 20 new highs and 188 new lows.

Yesterday’s decline was the large move predicted by the A-D oscillator and the H&S Pattern. The decline was strong enough to turn several of the cockpit indicators negative. It also caused the Dean’s List to turn neutral, as two inverse index ETF have now appeared on the List.

It appears that Major Wave 3 down is underway. Protect yourself.

Yesterday’s large decline was the impulsive move I was looking for to signal the start of a new down trend. However the decline reached the target of the short-term H&S pattern. As I talk about in Class, stocks move to targets and then once the target is achieved, a new pattern must be formed. So on a very short-term basis, it’s likely that the market will do some backing and filling for the next few days to form the Blade of another small Hockey Stock Pattern to set up another round of impulsive selling. This backing and filling should also cause the Dean’s List to shorten and turn negative.

Remember, the target for the larger Ending Diagonal Pattern is still the 160 level on the DOW (DIA). In other words, even though yesterday’s move completed the short-term pattern, the larger pattern still has a long way to go.

As long as The Tide remains negative, traders should view any retracement rallies as opportunities tho establish positions in inverse ETFs from the Dean’s List.

I’m in Dallas, TX this morning spending the weekend with my son and his family. So depending on what he has planned, I’m not sure when I’ll be posting my comments this weekend.

That’s what I’m doing,

h

Market Signals for

11-13-2015

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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