Today’s Market Comments:

Stocks continued their plunge, as wave {3} down of  large degree 3-down takes grip. This could be a crash before it is over. The decline the past week is subwave {i} down of {3} down. The Industrials fell 500 points Monday December 17th, and have dropped 1,250 points the past week, and have plunged 2,500 points so far in December. It is getting ugly. The Fed will announce its latest interest rate policy and monetary tightening policy this Wednesday. If they pause, we could see wave {ii} up of{3} down take stocks higher into Christmas, before the next plunge starts, {iii} down of {3} down of 3-down. That plunge will be nasty, not gentle like we have seen the past two months. All of our key indicators remain on Sell signals Monday.

 

Precious metals and Mining stocks rose sharply Monday, and may be about to start the upside thrust charts have been suggesting is coming. They remain on Buy signals tonight.

 

Our Blue Chip key trend-finder indicators moved to a Sell signal December 4th, 2018 and remain there Monday, December 17th. The Purchasing Power Indicator component triggered a Sell signal Tuesday, December 4th. The 14-day Stochastic Indicator generated a Sell on December 4th, 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 Monday, December 17th, falling 8 points (out of a possible 9 points), to negative -33. It will need to rise above positive + 5 for a new Buy signal.

Demand Power fell 10 to 375 Friday while Supply Pressure rose 15 to 457, telling us Monday’s drop in Blue Chips was powerful. This DP/SP Indicator moved to an Enter Short Signal December 6th, and remains there Monday, December 17th, 2018. 

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 rose sharply Monday. They generated a Buy signal Friday, December 7th, as the HUI 30 Day Stochastic triggered a Buy signal December 7th, 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 Long signal Wednesday, December 12th. On Monday, December 17th, Demand Power rose 6 to 419 while Supply Pressure fell 4 to 401, telling us Friday’s HUI rise was moderate.

DJIA PPI Fell 16 to negative -27.29, on a Sell

DJIA 30 Day Stochastic Fast 0.00 Slow 22.00 On a Sell

DJIA 14 Day Stochastic Fast 0.00 Slow 15.00 On a Sell

DJIA % Above 30 Day Average 0.00

DJIA % Above 10 Day Average 0.00

DJIA % Above 5 Day Average 0.00

Secondary Trend Indicator Fell 8 to Negative -33, On a Sell

Demand Power Fell 10 to 375, Supply Pressure Up 15 to 457 Sell

McClellan Oscillator Fell to Negative – 209.26

McClellan Osc Summation Index – 682.01

Plunge Protection Team Indicator + 12.47, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator – 757.0 on a Sell

NYSE New Highs 5 New Lows 883

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Sell signal Friday, December 14th, 2018, and remain there December 17th, 2018. The NDX Purchasing Power Indicator generated a Sellon December 14th, the NDX 14 Day Stochastic triggered a Sellsignal on December 4th, 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 17th. On Monday December 17th, Demand Power fell 8 to 427, while Supply Pressure rose 9 to 461, telling us the decline was powerful with deep pockets intervention supporting prices.

 

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 fell to – 20.2 on Monday, December 17th.

 

NDX PPI Fell 14 to 111.17 On a Sell

NDX 30 Day Stochastic Fast 4.76 Slow 22.14 On a Sell

NDX 14 Day Stochastic Fast 2.38 Slow 18.10 On a Sell

NDX 10 Day Advance/Decline Line Indicator – 20.2 On a Sell

NDX Demand Power Fell 8 to 427, Supply Pressure Up 9 to 461 Sell

 

RUT PPI Fell 9 to 104.63 on a Sell

RUT 10 Day Advance/Decline Line Indicator – 582.6 On a Sell

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Buy signal December 7th, 2018.

HUI PPI Rose 2 to + 171.88, on a Buy

HUI 30 Day Stochastic Fast 80.00, Slow 63.89 on a Buy

HUI Demand Power Up 6 to 419; Supply Pressure Fell 4 to 401, Buy