Weekend Strategy Review April 10, 2016
Posted by OMS at April 10th, 2016
The Dow rose 35 points on Friday, closing at 17,577. It was down 216 points for the week. The NASDAQ was up 2 points on Friday and down 64 points for the week.
There’s not a lot new to say this weekend. The indicators remain mixed as the market continues to roll over.
I’ve attached two charts that show the mixed indicators.
The first shows how two of the four breadth indicators that make up The Tide are currently negative. It also shows how an Ending Diagonal Pattern has formed for Major Wave 2 up.
The second chart shows the mixed PT indicators. Right now the DMI and the P-volume are negative, but the MACD is still positive telling us that the downside momentum has not started yet. So we have to wait for the momentum to shift.
This makes my strategy going forward pretty simple.
When we see how the Dow rose almost 1,600 points since The Tide turned positive on 16 February, we clearly don’t want to trade against The Tide.
And because the pattern is an Ending Diagonal, which is a termination pattern, we know that the target for this pattern is always where it began. So I have to assume that once The Tide turns negative, the Dow should fall to the 15,500 level or below. That’s over 2,000 Dow points from current levels.
Bottom Line: I’m just waiting for all four of the breadth indicators of The Tide to turn negative. Once this happens, I’ll start buying inverse index ETFs from the Dean’s List.
Have a great weekend.
That’s what I’m doing,
h
Market Signals for
04-11-2016
DMI (DIA) | NEG |
DMI (QQQ) | POS |
COACH (DIA) | NEG |
COACH (QQQ) | NEG |
A/D OSC | |
DEANs LIST | POS |
THE TIDE | NEU |
SUM IND | NEG |
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.
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Category: Professor's Comments, Weekend Strategy Review