Professor’s Comments November 6, 2015

Posted by OMS  at November 6th, 2015

Stocks closed little changed ahead of today’s Jobs Report.

The Dow fell 4 points, closing at 17,863.  Volume was moderate, coming in at 105 percent of its 10-day average.  There were 93 new highs and 66 new lows.

As I mentioned in yesterday’s 10.50 Update, there is a possibility that the Dow put in its Wave 2 top this past Tuesday.  The attached 15 min chart of the DIA shows a pattern of five waves down for Wave 1 down.  These waves are followed by a small a-b-c retracement for wave 2 up.  If this count is correct, the Dow has already started its Major Wave 3 decline and the market could start an impulsive decline after the Jobs report.  No guarantees.

Gold shares continued lower yesterday with my new trend indicator entering the trend mode on GLD.  So as I mentioned yesterday, it appears that GLD is starting another leg lower, towards the 100 level. GLD closed at 105.64.

The DMI on GDX also turned negative yesterday.  Because GDX appears to be in a slightly different pattern than GLD, I do not expect it to make a new low on this leg down.  However it could easily approach the 13 level.

Waiting for the Jobs Report.

That’s what I’m doing,

h

Market Signals for

11-06-2015

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.