Today’s Market Comments:
We closed our latest trade Thursday, June 21st, in our Platinum program that generated a 76.9 percent profit in three weeks. Platinum members can click on the Current Trade button for Details.
Stocks fell sharply Thursday, June 21st. Our Short-term Blue Chip and Tech key trend-finder indicators generated new Sell signals, as all three components are in agreement on Sells. Our Purchasing Power Indicator for Blue Chips and Techs moved to new Sell signals Thursday. Also, for the first time since August 2017, our intermediate term Secondary Trend Indicator is now on a Sell signal. The stock market also triggered a third Hindenburg Omen potential stock market crash observation Thursday. This is a time for caution.
As for the wave mapping, we see large degree triangle patterns from January 2018, and the pattern may not be complete in the Industrials. If not, the current decline could be subwave e-down to complete its wave iv triangle. It is unclear whether the S&P 500 has completed its triangle and the current decline is a correction within wave v-up, or is also wave e-down to complete its wave iv triangle. We updated visual charts in tonight’s newsletter on pages 25 through 32.
Our HUI key trend-finder indicators remain on a Sell signal Thursday. Metals and Miners look to be finishing triangle patterns also, with upside breakouts coming once the current decline completes.
If you are in need of inspiration, check out our new feature on page 33 in Thursday’s report.
Our Blue Chip key trend-finder indicators moved to a Sell signal June 21st, 2018 and remain there Thursday, June 21st. The Purchasing Power Indicator component triggered a Sell signal Thursday, June 21st. The 14-day Stochastic Indicator generated a Sell on June 14th, and the 30 Day Stochastic Indicator generated a Sell on June 15th, 2018. When these three indicators are in agreement, 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 Thursday, June 21st, and remains there Thursday, June 21st, losing 5 points (out of a possible 9 points), to negative 5, needing to reach and rise above the positive + 5 threshold for a new Buy.
Demand Power fell 6 to 386 Thursday while Supply Pressure rose 6 to 382, telling us Thursday’s drop in Blue Chips was moderate to strong. This DP/SP Indicator moved to an Enter Long Signal Wednesday, May 2nd, and remains there Thursday, June 21st, 2018.
The Plunge Protection Team Indicator moved back to an “OFF” signal on March 21st, which means the PPT is not as 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, or if there is it will not be effective. 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, Silve r and Miners fell Thursday, June 21st, and are finishing their Bullish triangles. They moved to a Sell signal Wednesday, June 20th, as the HUI 30 Day Stochastic triggered a Sell signal June 20th, and our HUI Purchasing Power Indicator generated a Sell on June 15th. When these two indicators are in agreement, it is a directional signal, and when at odds with one another, it is a combination neutral signal. On May 29th, the HUI Demand Power / Supply Pressure Indicator moved to a Short signal. On Thursday, June 21st, Demand Power fell 1 to 379 while Supply Pressure rose 1 to 404, telling us Thursday’s HUI decline was weak.
DJIA PPI Fell 4 to + 63.97, on a Sell
DJIA 30 Day Stochastic Fast 40.00 Slow 45.33 On a Sell
DJIA 14 Day Stochastic Fast 20.00 Slow 40.00 On a Sell
DJIA % Above 30 Day Average 40.00
DJIA % Above 10 Day Average 13.33
DJIA % Above 5 Day Average 16.67
Secondary Trend Indicator Fell 5 to Negative -5, On a Sell
Demand Power Fell 6 to 386, Supply Pressure Rose 6 to 382 Buy
McClellan Oscillator Fell to negative – 71.18
McClellan Osc Summation Index + 3102.38
Plunge Protection Team Indicator + 3.94, on an “OFF”
DJIA 10 Day Advance/Decline Indicator – 36.9 on a Buy
NYSE New Highs 83 New Lows 82
Today’s Technology NDX Market Comments:
The NDX Short-term key Trend-finder Indicators generated a Sell signal Thursday, June 21st, 2018, and remain there June 21st, 2018. The NDX Purchasing Power Indicator generated a Sell on June 21st, the NDX 14 Day Stochastic triggered a Sell signal on June 21st, 2018 and the 30 Day Stochastic triggered a Sell signal on April 24th. 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 Long positions signal Monday, May 7th and remains there June 21st. On Thursday June 21st, Demand Power fell 4 to 417, while Supply Pressure rose 5 to 402, telling us Thursday’s decline was moderate.
The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal May 7th, 2018, and needs to fall below negative – 5.0 for a new Sell. It fell to positive + 5.8 on Thursday, June 21st.
NDX PPI Fell 6 to + 256.33 On a Sell
NDX 30 Day Stochastic Fast 58.00 Slow 61.00 On a Sell
NDX 14 Day Stochastic Fast 41.00 Slow 52.40 On a Sell
NDX 10 Day Advance/Decline Line Indicator + 5.8 On a Buy
NDX Demand Power Fell 4 to 417, Supply Pressure Rose 5 to 402 Buy
RUT PPI Fell 4 to + 200.34 on a Buy
RUT 10 Day Advance/Decline Line Indicator + 82.10 On a Buy
Today’s Mining Stocks and Precious Metals Market Comments:
Our HUI key trend-finder indicators moved to a Sell signal June 20th, 2018.
HUI PPI Flat at 179.33, on a Sell
HUI 30 Day Stochastic Fast 25.00, Slow 43.33 on a Sell
HUI Demand Power Fell 1 to 379; Supply Pressure Rose 1 to 404, Sell