Professor’s Comments November 28, 2018

Posted by OMS  at November 28th, 2018

The markets were mixed yesterday. The Dow gained 108 points at 24,749.  The NASDSQ and SPX rose 1 and 8 points, respectively.  Volume on the NYSE was moderate, coming in at 93 percent of its 10-day average.  There were 20 new highs and 233 new lows.

Yesterday’s trading action was likely part of a corrective sub-wave within sub-wave 3 down of Wave 3 down. In yesterday’s comments I mentioned the correction could retrace back to the 24,700+ level before it completes. Yesterday the corrective wave reached a high of 24,749.  Once this corrective wave completes, the Dow and the other indexes should resume their decline as Wave 3 down continues to unfold.

There was no change to any of the cockpit indicators after yesterday’s session. The Dean’s List remains negative and The Tide remains neutral.

There was another small change in the A-D oscillator last night, so we need to be on the lookout for another Big Move within the next 1-2 days.

The Sector Ratio fell to 2-22 negative after yesterday’s session.  The only two strong sectors were Media and Leisure.  GM fell 0.96 cents a day after popping 1.72 points. The decline removed the autos from the Strong Sector List.  Apparently, investors realized that cutting 15,000 jobs wasn’t really that good for the company.  There was also news that President Trump was considering eliminating the subsidies they receive for their electric car. Anyhow, the Autos are no longer on the Strong List.

Gold and mining stocks fell slightly yesterday.  My VTI-volume indicator for gold moved to a Sell Signal. It appears that the next leg down of GLD’s zig-zag pattern is starting. Once this decline is over, gold should rally hard as Major Wave 3 up unfolds. But not now.

Crude Oil rose slightly yesterday with UCO rising 0.06 cents at 17.55.  Crude appears to be putting in a short-term bottom at these levels which is likely part of an a-b-c correction.  Volume going into the ETF is increasing and has turned the VZO slightly positive on the Daily charts. Students should pull up a chart of UCO and look at how the VCO has been rising as the price continues to fall.  This positive divergence usually occurs just before a rise in price.  But right now, the momentum is still negative.  If the upside momentum starts to increase during the next few days, UCO could be an interesting short-term trade.  Unlike Crude Oil, UCO is a highly leveraged ETF that produces quick intraday moves. UCO can be an exciting vehicle to trade IF you’re on the right side of the indicators. Scalp trades with small positions only. Remember, the cockpit indictor for Crude Oil is still negative.

That’s what I’m doing,

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Market Signals for

11-28-2018

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

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