Today’s Market Comments:

We closed three more trades today at a profit, and over the past seven trading days we have closed ten consecutive profitable trades, including trades for stocks and precious metals, both options trades and Exchange Traded Funds Trades. October Platinum Special: 2 Years for $1,995. Or, also 5 Years for $3,750 with a $500 credit for past payments.  Email us at mainrdmch@aol.com for a Disclosure form.

 

Stocks were all over the place Monday, October 15th, ending down for the day. The gyrations are either wave iv-up of a five wave 1-down plunge from October 3rd, or are wave b-sideways of corrective wave 2-up for the recent plunge. If I had a leaning, it would be the move Monday was part of wave iv. If so, stocks should soon decline, perhaps 500 points for the Industrials, 60 points for the S&P 500, to complete wave v-down of 1-down and finish the plunge. This bottom could arrive Thursday or Friday this week. Then if correct, a strong wave 2-up rally will take over into the mid-term election and our next Phi mate turn date, November 7th +/- a day or so. Once 2-up completes, a powerful wave 3-down move would follow, worse than we just saw.

 

The recent plunge wiped out three months of gains in just about a week. Our Blue Chip key trend-finder indicators remain on a Sideways signal Monday, however our NASDAQ 100 key trend-finder indicators moved back to a new Sell from a Neutral reading. Small caps remain on a Sell signal. We update charts in tonight’s report. If wave 2-up is underway, if the move Monday is wave b-sideways of 2-up, it means wave 2 is going to be a shallow recovery, and 3 down is coming soon and will be violent.

 

The ETF UGLD did a 1 for 10 reverse split Monday. Our HUI Mining stock key trend-finder indicators remain solidly on a Buy signal Monday.

 

This stock market plunge is coming after a 19 observation Hindenburg Omen potential stock market crash signals was generated in August. The observations were continuous over the weeks since, and warned that this stock market is in a fragile condition. New NYSE Lows have run above 79 for 30 consecutive trading days, which is a dangerous condition. 

Our Blue Chip key trend-finder indicators moved to a Sideways signal October 5th, 2018 and remain there Monday, October 12th. The Purchasing Power Indicator component triggered a Buy signal Friday, October 12th. The 14-day Stochastic Indicator generated a Sell on October 5th, and the 30 Day Stochastic Indicator generated a Sell on September 25th, 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, October 15th, rising 3 points (out of a possible 9 points), to negative – 7. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 2 to 364 Monday while Supply Pressure fell 2 to 431, telling us Monday’s move in Blue Chips was weak. This DP/SP Indicator moved to an Enter Short Signal October 4th, and remains there Monday, October 15th, 2018.

The Plunge Protection Team Indicator moved to an “ON” signal on October 11th, 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.

Gold, Silver and Miners rose Monday. They generated a Buy signal Thursday, October 11th, as the HUI 30 Day Stochastic triggered a Buy signal October 11th, and our HUI Purchasing Power Indicator generated a Buy on September 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 Thursday, October 11th. On Monday, October 15th, Demand Power rose 6 to 417 while Supply Pressure fell 4 to 404, telling us Monday’s HUI rise was moderate.

DJIA PPI fell 2 to 33.69, on a Buy

DJIA 30 Day Stochastic Fast 6.67 Slow 20.00 On a Sell

DJIA 14 Day Stochastic Fast 3.33 Slow 20.00 On a Sell

DJIA % Above 30 Day Average 6.67

DJIA % Above 10 Day Average 3.33

DJIA % Above 5 Day Average 6.67

Secondary Trend Indicator Rose 3 to Negative -7, On a Sell

Demand Power rose 2 to 364, Supply Pressure fell 2 to 431 Sell

McClellan Oscillator Rose to Negative – 156.38

McClellan Osc Summation Index -283.42

Plunge Protection Team Indicator + 29.3, on an “ON”  

DJIA 10 Day Advance/Decline Indicator – 672.1 on a Sell

NYSE New Highs 10 New Lows 216

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Sell signal Monday, October 15th, 2018, and remain there October 15th, 2018. The NDX Purchasing Power Indicator generated a Sellon October 15th, the NDX 14 Day Stochastic triggered a Sellsignal on October 4th, 2018 and the 30 Day Stochastic triggered aSell signal on October 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 Short positions signal Thursday, October 4th and remains there October 15th. On Monday October 15th, Demand Power fell 4 to 402, while Supply Pressure up 4 to 462, telling us the decline was moderate.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Sell signal October 4th, 2018, and needs to rise above positive + 5.0 for a new Buy. It fell to negative -29.2 on Monday, October 15th.

NDX PPI Fell 6 to 195.49 On a Sell

NDX 30 Day Stochastic Fast 7.14 Slow 8.81 On a Sell

NDX 14 Day Stochastic Fast 7.14 Slow 6.19 On a Sell

NDX 10 Day Advance/Decline Line Indicator -29.2 On a Sell

NDX Demand Power Fell 4 to 402, Supply Pressure Up 4 to 462 Sell

RUT PPI Up 1 to 151.23 on a Sell

RUT 10 Day Advance/Decline Line Indicator – 441.20 On a Sell

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Buy signal October 11th, 2018.

HUI PPI Rose 2 to + 169.13, on a Buy

HUI 30 Day Stochastic Fast 85.00, Slow 55.56 on a Buy

HUI Demand Power Up 6 to 417; Supply Pressure Fell 4 to 404, Buy