Today’s Market Comments:

Stocks rose Tuesday, November 6th, on low volume, ahead of the U.S. Mid-term elections. The rise moved our small cap Russell 2000 and NYSE 10 day average Advance/Decline Line Indicators to new Buy signals. Our Blue Chip key trend-finder indicators remain on a Buy Tuesday. Techs are on a Sideways signal. Small caps on a Buy. Stocks look to be starting wave {c} up of2-up, correcting the October plunge. Once complete, wave 3-down will take stocks sharply lower.

As this newsletter is going out, it appears that there will be a split U.S. Congress, the Republicans controlling the Senate, Democrats the House. This means legislative gridlock most likely. It means no further tax cuts for the middle class as was spoken about before the election. Next on the news agenda is the Fed’s short-term interest rate policy announcement Thursday.

 

Metals and Mining stocks fell Tuesday, and our HUI key trend-finder indicators remain on a Sell signal. Once wave 3 down’s plunge starts in stocks, Metals and Miners should rise sharply.

There is a Phi mate turn date ideally scheduled for Wednesday, November 7th, the day after we learn results of the U.S. Mid-term elections. Phi mate turns can be off a few days from their ideal scheduled date.

Our Blue Chip key trend-finder indicators moved to a Buy signal October 30th, 2018 and remain there Tuesday, November 6th. The Purchasing Power Indicator component triggered a Buy signal Tuesday, October 30th. The 14-day Stochastic Indicator generated a Buy on October 30th, and the 30 Day Stochastic Indicator generated a Buy on October 30th, 2018. When these three indicators agree, it is a short-term (1 week to 3 months’ time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.

Our intermediate term Secondary Trend Indicator generated a Sell signal Wednesday, October 10th, and remains there Tuesday, November 6th, rising 2 points (out of a possible 9 points), to negative -6. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 4 to 415 Tuesday while Supply Pressure fell 7 to 428, telling us Tuesday’s rise in Blue Chips was moderate. This DP/SP Indicator moved to an Enter Short Signal October 4th, and remains there Monday, November 5th, 2018. The October plunge came right after this Sell signal.

The Plunge Protection Team Indicator moved to an “OFF” signal on October 25th, which means the PPT is not likely to support the markets while this indicator remains on an “OFF.” This means there is not likely to be significant government intervention at this time. This indicator is designed to identify high probability periods where the PPT will be supporting, or buying the stock market (when it is on an “On” signal) and when it moves to a Neutral or Off signal (formerly called Sell), it does not mean the stock market will decline, it means the PPT’s interest in buying the market is off rather than on, and market forces outside the PPT are more likely to determine stock trends up or down. In other words, a Neutral or Off signal means the odds are higher that the PPT stands down or has little influence on price trends. 

Caution: I would not bet the farm on a Crash. Crashes are rare and maybe the pattern will morph into something we presently do not see that is less ominous. Risk must be managed. Maybe the Fed buys the entire stock market, who knows given their track record. Maybe a black swan event is postponed several months.

Gold, Silver and Miners fell Tuesday . They generated a Sell signal Thursday, October 25th, as the HUI 30 Day Stochastic triggered a Sell signal October 24th, and our HUI Purchasing Power Indicator generated a Sell on October 25th. When these two indicators agree, it is a directional signal, and when at odds with one another, it is a combination neutral signal. The HUI Demand Power / Supply Pressure Indicator moved to an Enter Short signal Wednesday, October 24th. On Tuesday, November 6th, Demand Power fell 5 to 400 while Supply Pressure rose 3 to 424, telling us Tuesday’s HUI decline was moderate.

DJIA PPI rose 3 to 31.04, on a Buy

DJIA 30 Day Stochastic Fast 53.33 Slow 41.33 On a Buy

DJIA 14 Day Stochastic Fast 90.00 Slow 70.56 On a Buy

DJIA % Above 30 Day Average 53.33

DJIA % Above 10 Day Average 93.33

DJIA % Above 5 Day Average 90.00

Secondary Trend Indicator Rose 2 to Negative -6, On a Sell

Demand Power Up 4 to 415, Supply Pressure fell 7 to 428 Sell

McClellan Oscillator Rose to Positive + 148.82

McClellan Osc Summation Index -892.76

Plunge Protection Team Indicator + 4.19, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator + 241.2 on a Buy

NYSE New Highs 51 New Lows 65

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicatorsgenerated a Sideways signal Friday, November 2nd, 2018, and remain there November 6th, 2018. The NDX Purchasing Power Indicator generated a Sell on November 2nd, the NDX 14 Day Stochastic triggered aBuy signal on October 30th, 2018 and the 30 Day Stochastic triggered a Buy signal on November 1st. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.

 

The NDX Demand Power / Supply Pressure Indicator moved to an Enter Short positions signal Thursday, October 4th and remains there November 6th. On Tuesday November 6th, Demand Power rose 3 to 450, while Supply Pressure fell 7 to 468, telling us the rise was moderate.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal November 1st, 2018, and needs to rise above positive + 5.0 for a new Buy. It rose to positive + 12.2 on Tuesday, November 6th.

NDX PPI Rose 3 to 175.65 On a Sell

NDX 30 Day Stochastic Fast 40.48 Slow 29.76 On a Buy

NDX 14 Day Stochastic Fast 71.43 Slow 62.62 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 12.2 On a Buy

NDX Demand Power Up 3 to 450, Supply Pressure Fell 7 to 468 Sell

RUT PPI Up 2 to 153.34 on a Buy

RUT 10 Day Advance/Decline Line Indicator + 200.7 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Sell signal October 25th, 2018.

HUI PPI Flat at + 162.13, on a Sell

HUI 30 Day Stochastic Fast 45.00, Slow 36.11 on a Sell

HUI Demand Power Fell 5 to 400; Supply Pressure Up 3 to 424, Sell