Today’s Market Comments:

Stocks rose Monday, January 7th, 2019, extending their corrective wave {ii} up rally. Our short-term key trend-finder indicators remain on a Buy signal. All of the 10 day average Advance/Decline Line Indicators are also on Buy signals. The alternate possibility is this is a larger degree wave {4} up rally. In either case, once complete, stocks will decline sharply again in either wave {iii} down of {3} down of 3-down, or {5} down of 3-down. The McClellan Oscillator is close to an extreme overbought condition. One possible upside price target for stocks is there declining 50 day moving average, which we show in charts in tonight’s newsletter. That is a key resistance level.

 

Our HUI key trend-finder indicators remain on a Sideways signal tonight. Gold rose slightly Monday, while Silver and Mining stocks fell slightly. A powerful rising trend is expected in 2019 for precious metals and Mining stocks, large degree wave 3-up. 

Our Blue Chip key trend-finder indicators moved to a Buy signal January 4th, 2019 and remain there Monday, January 7th, 2019. The Purchasing Power Indicator component triggered a Buy signal Friday, January 4th. The 14-day Stochastic Indicator generated a Buy on January 4th, and the 30 Day Stochastic Indicator generated a Buy on January 4th, 2019. 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, January 7th, rising 2 points (out of a possible 9 points), to negative -13. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 6 to 427 Monday while Supply Pressure fell 10 to 438, telling us Monday’s rise in Blue Chips was strong, and due more to a lack of selling rather than a strong urge to buy. This DP/SP Indicator moved to an Enter Short Signal December 6th, and remains there Monday, January 7th, 2019. 

The Plunge Protection Team Indicator moved to an “OFF” signal on January 2nd, 2019, which means the PPT is not as likely to support the markets while this indicator remains on an “OFF.” This means there is n 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. 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 rose, while Silver and Miners fell Monday. The HUI generated a key trend-finder indicator Sideways (Neutral) signal Wednesday, January 2nd, as the HUI 30 Day Stochastic triggered a Buy signal January 2nd, 2019, 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 Monday, January 7th, Demand Power fell 4 to 421 while Supply Pressure rose 1 to 418, telling us Monday’s HUI decline was mild.

DJIA PPI rose 4 to negative -22.05, on a Buy

DJIA 30 Day Stochastic Fast 30.00 Slow 18.00 On a Buy

DJIA 14 Day Stochastic Fast 83.33 Slow 52.22 On a Buy

DJIA % Above 30 Day Average 30.00

DJIA % Above 10 Day Average 90.00

DJIA % Above 5 Day Average 83.33

Secondary Trend Indicator Rose 2 to Negative -13, On a Sell

Demand Power Rose 6 to 427, Supply Pressure Fell 10 to 438 Sell

McClellan Oscillator Rose to Positive + 288.0

McClellan Osc Summation Index – 1479.79

Plunge Protection Team Indicator -0.87, an “OFF” signal

DJIA 10 Day Advance/Decline Indicator + 613.9 on a Buy

NYSE New Highs 8 New Lows 11

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Buy signal Friday, January 4th, 2019, and remain there January 7th, 2019. The NDX Purchasing Power Indicator generated a Buy on January 4th, the NDX 14 Day Stochastic triggered a Buy signal on December 27th, 2018 and the 30 Day Stochastic triggered a Buysignal of January 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 anExit Sell positions signal Monday, January 7th and remains there January 7th. On Monday January 7th, Demand Power rose 5 to 452, while Supply Pressure fell 6 to 448, telling us the rally was moderate.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal January 7th, 2019, and needs to fall below negative -5.0 for a new Sell. It rose to + 14.6 on Monday, January 7th.

 

NDX PPI Rose 5 to 96.53, On a Buy

NDX 30 Day Stochastic Fast 36.59 Slow 19.76 On a Buy

NDX 14 Day Stochastic Fast 88.10 Slow 55.00 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 14.6, On a Buy

NDX Demand Power Up 5 to 452, Supply Pressure Fell 6 to 448 Neutral

 

RUT PPI Rose 6 to 110.63, on a Buy

RUT 10 Day Advance/Decline Line Indicator + 329.7 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Sideways (Neutral) signal January 2nd, 2019.

HUI PPI Fell 1 to + 169.65, on a Sell

HUI 30 Day Stochastic Fast 95.00, Slow 80.56 on a Buy

HUI Demand Power Fell 4 to 421; Supply Pressure Up 1 to 418, Buy