Today’s Market Comments:

Stocks rose sharply Monday, November 26th. The rally moved our Purchasing Power Indicator for Blue Chips, Techs and small caps to a Buy signal. However, the key trend-finder indicators remain on a Neutral signal. It is possible stocks are working through an a-b-c corrective wave {ii} up within a large declining trend.

 

General Motors announced it will be cutting almost 15,000 jobs. So much for the 40 percent large corporation tax cut creating jobs. It should have gone to small businesses and households, not large corporations, since 70 percent of new jobs come from small businesses and 70 percent of spending comes from consumers. Huge mistake. Fed Chairman Powell is embarking on a mission to contract the economy. Think about this: He is drawing $80 billion per month from the U.S. economy. Per month. The entire Military budget is $700 billion. This is a serious economic contraction going on here, at a time when housing is in the tank, job creation is stalling, and he is also raising short-term interest rates, slowing borrowing and the economic growth that comes from borrowing and capital investment. Deflation is underway.

 

There is a lot of weird stuff going on environmentally lately. I am not going to list those events here tonight, but I did want to share something bizarre I noted this past weekend. I was enjoying some family time at the Jersey shore, have been going to the mid-Atlantic beaches for decades, and saw something for the first time ever. A camel spider, also known as a sun spider. It was about 8 inches, has ten legs, and ran across a parking lot at the speed of a squirrel, they run about 10 mph, then leaped about three feet onto a dune. These are native to the Middle East, Mexico, and the U.S. Southwest. They have powerful jaws and can kill small animals and rodents. It could outrun a human. If you like the beach, you probably never ran into anything like this. Creepy creature completely out of place. Almost looked like something from the science fiction movie Aliens.

 

Mining stocks and Metals fell slightly Monday, and remain on a Sideways signal.  

Our Blue Chip key trend-finder indicators moved to a Sideways signal November 20th, 2018 and remain there Monday, November 26th. The Purchasing Power Indicator component triggered a Buy signal Monday, November 19th. The 14-day Stochastic Indicator generated a Sell on November 12th, and the 30 Day Stochastic Indicator generated a Sell on November 20th, 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 Monday, November 26th, rising 8 points (out of a possible 9 points), to negative -22. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 7 to 406 Monday while Supply Pressure fell 7 to 423, telling us Wednesday’s rise in Blue Chips was strong. This DP/SP Indicator moved to an Enter Short Signal November 12th, and remains there Monday, November 26th, 2018. The previous Sell signal identified the start of the October plunge.

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 Monday. They generated a Sideways signal Friday, November 16th, as the HUI 30 Day Stochastic triggered a Sell signal October 24th, and our HUI Purchasing Power Indicator generated a Buy on November 16th. 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 Monday, November 26th, Demand Power fell 3 to 393 while Supply Pressure rose 1 to 421, telling us Monday’s HUI decline was mild.

DJIA PPI rose 7 to 10.80, on a Buy

DJIA 30 Day Stochastic Fast 50.00 Slow 44.67 On a Sell

DJIA 14 Day Stochastic Fast 16.67 Slow 27.78 On a Sell

DJIA % Above 30 Day Average 50.00

DJIA % Above 10 Day Average 33.33

DJIA % Above 5 Day Average 60.00

Secondary Trend Indicator Up 8 to Negative -22, On a Sell

Demand Power Up 7 to 406, Supply Pressure Fell 7 to 420 Sell

McClellan Oscillator Rose to Positive + 20.22

McClellan Osc Summation Index – 449.28

Plunge Protection Team Indicator – 11.39, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator – 309.6 on a Sell

NYSE New Highs14 New Lows 146

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicatorsgenerated a Sideways signal Monday, November 26th, 2018, and remain there November 26th, 2018. The NDX Purchasing Power Indicator generated a Buy on November 26th, the NDX 14 Day Stochastic triggered aBuy signal on November 26th, 2018 and the 30 Day Stochastic triggered a Sell signal on November 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 Short positions signal Monday, November 19th and remains there November 26th. On Monday November 26th, Demand Power rose 9 to 444, while Supply Pressure fell 8 to 449, telling us the rise was strong and due more to a lack of selling rather than a strong urge to buy.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Sell signal November 20th, 2018, and needs to fall below negative – 5.0 for a new Sell. It rose to + 0.0 on Monday, November 26th. 

NDX PPI Up 14 to 142.68 On a Buy

NDX 30 Day Stochastic Fast 46.43 Slow 37.62 On a Sell

NDX 14 Day Stochastic Fast 36.90 Slow 23.10 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 0.0 On a Sell

NDX Demand Power Up 9 to 444, Supply Pressure Fell 8 to 449 Sell

 

RUT PPI Up 3 to 141.33 on a Buy

RUT 10 Day Advance/Decline Line Indicator – 124.0 On a Sell

 

Today’s Mining Stocks and Precious Metals Market Comments:

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

HUI PPI Flat at + 164.31, on a Buy

HUI 30 Day Stochastic Fast 30.00, Slow 30.00 on a Sell

HUI Demand Power Fell 3 to 393; Supply Pressure Up 1 to 421, Sell