Professor’s Comments November 17, 2016
Posted by OMS at November 17th, 2016
The Dow fell 55 points, closing at 18,868. Volume was low, coming in at 82 percent of its 10-day average. There were 111 new highs and 19 new lows.
Yesterday’s low volume decline was a needed pause for the market to move higher. In my Comments yesterday, I talked about how the Dow would likely pullback because the 2-period RSI was EXTREMELY overbought (99.4). But because the VTI on the Dow was positive and in the Trend Mode, the pullback would likely be temporary.
Yesterday’s 98-point intraday decline was also the Big Move predicted by Monday’s small change signal in the A-D oscillator. BTW, yesterday’s lackluster trading produced another Small Change signal, so we need to be on the lookout for another Big Move within the next 1-2 days. Only this time, now that the market has pulled back a bit and is heading into the very Bullish Thanksgiving Holiday time-period, I would expect the move to be up.
When the market was near its lows yesterday, and the possibility of a Small Change signal being generated, I bought a few short-term Call options on the SPY. I only plan to hold these options for a day or two, hoping for a Big Move.
The Professor algorithm continues to show a strong positive bias since confirming the post-election rally, even after yesterday’s small decline.
So even though I believe the market will top after the positive bias of the Holiday period passes, I’m going to scalp and Position Trade the long side going into the next Thursday. Two stocks I will be looking at closely are Checkpoint Software (CHKP) and Akamai Technologies (AKAM). Both stocks were highlighted last night for the Honor Roll, and both have nice Hockey Stick Patterns that should support higher prices. If the indicators turn positive on the short-term bars, I’m a buyer. Scalps or Position Trades only! No falling in love allowed.
Gold and mining stocks pulled back slightly. The strength in the Dollar continues to be a problem for the metals. However, the Money Flow indicators on UUP are diverging negatively and starting to weaken. UUP closed right at its Upper Bollinger Band last night. If it pulls back today, and closes below its Upper Band, it will generate a Sell Signal. This should be very positive for gold.
BTW, the VTI on GLD is still negative. However, a few of my early gold rabbits, like RGLD, are getting very close to generating Buy Signals. One solid up day should do it. Remember, when the VTI on GLD turned negative, the ETF was trading at 122+. Now it’s at 116.77. So even though I believe gold and the metals are putting in a bottom at current levels, I don’t have a Buy Signal….yet.
That’s what I’m doing.
h
Market Signals for
11-17-2016
DMI (DIA) | POS |
DMI (QQQ) | NEG |
COACH (DIA) | POS |
COACH (QQQ) | POS |
A/D OSC | SM CHG |
DEANs LIST | POS |
THE TIDE | POS |
SUM IND | POS |
VTI | POS-T |
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
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Category: Professor's Comments