Today’s Market Comments:

Stocks closed mixed to flat Friday, December 28th, 2018. There were no changes to our short-term key trend-finder indicator signals, which remain on a Sideways signal this weekend. Blue Chip stocks are rising is a corrective wave {ii} up of {3} down of3-down. Techs are rising in corrective wave {2} up. This rally leg could have more upside over the coming trading days. Once complete, an acceleration declining phase will follow. This is a major Bear market starting. 2019 will be a volatile year for stocks.

We update charts in tonight’s report.

Our Blue Chip key trend-finder indicators moved to a Sideways signal December 26th, 2018 and remain there Friday, December 28th. The Purchasing Power Indicator component triggered a Buy signal Wednesday, December 26th. The 14-day Stochastic Indicator generated a Buy on December 27th, and the 30 Day Stochastic Indicator generated a Sell on December 4th, 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 Friday, December 28th, rising 6 points (out of a possible 9 points), to negative -31. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 5 to 389 Friday while Supply Pressure fell 5 to 472, telling us Friday’s move in Blue Chips was moderate. This DP/SP Indicator moved to an Enter Short Signal December 6th, and remains there Friday, December 28th, 2018. 

The Plunge Protection Team Indicator moved to an “ON” signal on December 21st, which means the PPT is likely to support the markets while this indicator remains on an “ON.” This means there is 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. Maybe a massive short-covering rally is induced by the PPT that causes a violent rally just when market participants are expecting more selling.

Gold and Silver rose, and Miners fell Friday. The HUI generated a Sell signal Wednesday, December 19th, as the HUI 30 Day Stochastic triggered a Sell signal December 19th, and our HUI Purchasing Power Indicator generated a Sell on December 19th. 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 Long signal Wednesday, December 12th. On Friday, December 28th, Demand Power fell 6 to 425 while Supply Pressure rose 7 to 423, telling us Friday’s HUI decline was moderate.

DJIA PPI flat at negative -43.60, on a Buy

DJIA 30 Day Stochastic Fast 3.33 Slow 2.00 On a Sell

DJIA 14 Day Stochastic Fast 26.67 Slow 8.89 On a Buy

DJIA % Above 30 Day Average 3.33

DJIA % Above 10 Day Average 53.33

DJIA % Above 5 Day Average 100.00

Secondary Trend Indicator Rose 6 to Negative -31, On a Sell

Demand Power Up 5 to 389, Supply Pressure Fell 5 to 472 Sell

McClellan Oscillator Rose to Negative – 29.10

McClellan Osc Summation Index – 2263.47

Plunge Protection Team Indicator + 19.81, an “ON” signal

DJIA 10 Day Advance/Decline Indicator – 738.2 on a Sell

NYSE New Highs 5 New Lows 99 

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated aSideways signal Wednesday, December 26th, 2018, and remain there December 28th, 2018. The NDX Purchasing Power Indicator generated a Buy on December 26th, the NDX 14 Day Stochastic triggered a Buy signal on December 27th, 2018 and the 30 Day Stochastic triggered a Sell signal on December 4th. 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 anEnter Sell positions signal Friday, December 14th and remains there December 28th. On Friday December 28th, Demand Power fell 1 to 430, while Supply Pressure fell 4 to 473, telling us the decline was weak.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Sell signal December 14th, 2018, and needs to rise above positive + 5.0 for a new Buy. It rose to – 32.4 on Friday, December 28th.

 

NDX PPI Flat at 81.11, On a Buy

NDX 30 Day Stochastic Fast 6.10 Slow 4.35 On a Sell

NDX 14 Day Stochastic Fast 22.62 Slow 10.24 On a Buy

NDX 10 Day Advance/Decline Line Indicator – 32.4, On a Sell

NDX Demand Power Fell 1 to 430, Supply Pressure Fell 4 to 473 Sell

 

RUT PPI Rose 1 to 92.50, on a Buy

RUT 10 Day Advance/Decline Line Indicator – 480.7 On a Sell

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Sell signal December 19th, 2018.

HUI PPI Fell 1 to + 169.38, on a Sell

HUI 30 Day Stochastic Fast 70.00, Slow 69.44 on a Sell

HUI Demand Power Fell 6 to 425; Supply Pressure Up 7 to 423, Buy