Today’s Market Comments:
Note: We will be ending our 10 Year Platinum Special subscription opportunity, 10 years for just $3,357.50, in 8 days, on July 31st, and will be raising the price for a 10 year subscription substantially, to $8,950. If you would like to grab this great long-term membership $3,357.50 deal, the equivalent of about $28 per month, before it expires, email us at email@example.com for a disclosure form. So far in 2017, we are averaging around $2,500 per month in additional income trading profits on closed trades on an average investment of approximately $6,300. Not bad given the lack of volatility so far in 2017, which we expect to increase significantly as the year progresses, which should enhance our ability to generate even greater additional income. We also are offering a shorter-term deal, 17 Months for $1,695, and 36 months for $2,550 through July 31st.
Stocks were flat Friday, July 21st. There were no changes to our key indicators. Blue Chips remain Neutral, Techs on a Buy, small caps on a Buy. The chart on page 33 warns us that the Industrials are finishing a major top, perhaps one of historical proportions, meaning a decline, a Bear Market is approaching that will be powerful. It shows the monthly MACD in a similar and yet rare position last seen in late 1999 and again in late 2007. On page 35 we see the Monthly MACD Histograms are shrinking, a Bearish divergence to prices. This is telling us declining momentum is soon going to pick up. It is an early warning. The Industrials, S&P 500 and NASDAQ 100 are all finishing large degree Rising Bearish Wedge termination top patterns from August 2015. See charts on pages 37, 40 and 42. Shorter-term, the Industrials are completing a classic Rising Bearish Wedge termination top pattern that started at the April 2017 lows. See chart on page 39. Small caps are completing a Jaws of Death topping pattern from 2013. See the chart on page 43.
The U.S. Dollar is deeply oversold, and is completing a Declining Bullish Wedge from December 2016 with a typical ending wave below the descending bottom boundary. A strong rally should explode from the fast approaching bottom. With the Fed tightening money, and not many other nations doing the same, this should provide wind for a Dollar rally. Oil is inside a new rising trend, wave E up that could last for years. There will be short-term corrections along the path for significantly higher prices. See chart on page 48. Precious Metals and Mining stocks are staring rally trends. We just got a new Buy signal in our HUI Mining Stock Demand Power / Supply Pressure Indicator, shown in chart on page 27. There is also a significant Bullish divergence between Mining stock prices and their 10 day average Advance/Decline Line indicator, shown on page 26.
Our Blue Chip key trend-finder indicators moved to a Sideways signal Wednesday, July 12th, 2017 and remain there Friday, July 21st. The Purchasing Power Indicator component triggered a Buy signal Wednesday, July 12th. The 14-day Stochastic Indicator generated a Buy on July 12, and the 30 Day Stochastic Indicator generated a Sell on June 21st. 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 key trend-finder indicator signal.
Our intermediate term Secondary Trend Indicator generated a Buy signal Monday, June 26th, and remains there Friday, July 21st, falling 4 points (out of a possible 9 points), to positive + 15, needing to Fall below the negative -5 threshold for a new Sell.
Demand Power Fell 2 to 390 Friday while Supply Pressure was flat at 364, telling us Friday’s move in Blue Chips was weak. This DP/SP Indicator moved to an Enter Long Signal Wednesday, July 12th, and remains there Friday, July 21st, 2017.
The Plunge Protection Team Indicator moved back to an “Off” signal on Thursday, December 15th, which means the PPT is likely to stand down from supporting the markets while this indicator remains on an “Off.” This does not mean stocks cannot rally, it just 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 a Buy signal) and when it moves to a Neutral of 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 and Miners were higher Friday, July 21st. They generated a Buy signal Monday, July 17th, as the HUI 30 Day Stochastic triggered a Buy signal June 23rd, and our HUI Purchasing Power Indicator generated a Buy on July 17th. 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 Monday, June 12th, the HUI Demand Power / Supply Pressure Indicator triggered a Sell signal. On Friday, July 21st, Demand Power rose 1 to 406 while Supply Pressure fell 3 to 395, telling us Friday’s HUI move was mild.
DJIA PPI Flat at + 53.58 on a Buy
DJIA 30 Day Stochastic Fast 66.67 Slow 60.67 On a Sell
DJIA 14 Day Stochastic Fast 63.33 Slow 68.33 On a Buy
DJIA % Above 30 Day Average 66.67
DJIA % Above 10 Day Average 60.00
DJIA % Above 5 Day Average 56.67
Secondary Trend Indicator fell 5 to Positive + 14, On a Buy
Demand Power Fell 2 to 390, Supply Pressure Flat at 364 Buy
McClellan Oscillator positive + 55.42
McClellan Osc Summation Index + 3146.33
Plunge Protection Team Indicator – 1.25, on an Off
DJIA 10 Day Advance/Decline Indicator + 475.3 on a Buy
NYSE New Highs 184 New Lows 15
Today’s Technology NDX Market Comments:
The NDX Short-term key Trend-finder Indicators generated a Buy signal Wednesday, July 12th, 2017, and remain there July 21st, 2017. The NDX Purchasing Power Indicator generated a Buy on July 10th, the NDX 14 Day Stochastic triggered a Buy signal on July 12th, 2017 and the 30 Day Stochastic triggered a Buy signal on July 12th. 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 Friday, July 14th and remains there July 19th. On Friday July 21st, Demand Power fell 3 to 422, while Supply Pressure rose 1 to 401, telling us Friday’s rise was weak.
The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal July 12th, needing to fall below negative – 5.0 for a new Sell. It fell to + 29.6 on Friday, July 21st, 2017.
NDX PPI Flat at 177.40 On a Buy
NDX 30 Day Stochastic Fast 63.00 Slow 61.40 On a Buy
NDX 14 Day Stochastic Fast 69.00 Slow 69.40 On a Buy
NDX 10 Day Advance/Decline Line Indicator + 29.6 On a Buy
NDX Demand Power Fell 3 to 422, Supply Pressure Up 1 to 401 Buy
RUT PPI Fell 1 to 154.39 on a Buy
RUT 10 Day Advance/Decline Line Indicator + 130.5 On a Buy
Today’s Mining Stocks and Precious Metals Market Comments:
Our HUI key trend-finder indicators moved to a Buy signal June 23rd, 2017.
HUI PPI Up 1 to 184.53, on a Buy
HUI 30 Day Stochastic Fast 90.00, Slow 47.22 on a Buy
HUI Demand Power Up 1 to 406; Supply Pressure Fell 3 to 395, Buy