Today’s Market Comments:

 

Stocks fell slightly Thursday, November 8th, a mild correction inside the final subwave {c} up of 2-up, correcting the October plunge. Volume was light. The Federal Reserve announced it was leaving short-term interest rates the same for the time being, but would likely raise interest rates in December. New Lows rose to 68, with New Highs at 75. This did not trigger another Hindenburg Omen observation because the McClellan Oscillator was positive. In looking at the wave pattern for stocks, wave 2-up should be nearing completion. If so, wave 3-down is not far off. If this wave mapping is correct, wave 3-down could be a major plunge as wave 3’s are typically more dramatic than wave 1’s, which was the October plunge. It would take a rise above the highs seen the past few months to cancel this wave mapping and reduce the probability of an imminent wave 3-down crash.

 

Our key trend-finder indicators remain on a Buy signal tonight. New Sells would be evidence wave 3-down is starting. Our Secondary Trend Indicator, an intermediate term trend indicator, remains on a Sell Thursday.

 

Metals and Mining stocks fell slightly Thursday, and our HUI key trend-finder indicators remain on a Sell signal. Once wave 3 down’s plunge starts in stocks, Metals and Miners should rise sharply.

There was a Phi mate turn date ideally scheduled for Wednesday, November 7th. Phi mate turns can be off a few days from their ideal scheduled date. This may be pointing to the top for wave 2 over the coming days. The next Phi mate turn date is December 27th.

Our Blue Chip key trend-finder indicators moved to a Buy signal October 30th, 2018 and remain there Thursday, November 8th. The Purchasing Power Indicator component triggered a Buy signal Tuesday, October 30th. The 14-day Stochastic Indicator generated a Buy on October 30th, and the 30 Day Stochastic Indicator generated a Buy on October 30th, 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 Thursday, November 8th, rising 5 points (out of a possible 9 points), to negative -3. It will need to rise above positive + 5 for a new Buy signal.

Demand Power fell 3 to 427 Thursday while Supply Pressure fell 2 to 416, telling us Thursday’s decline in Blue Chips was weak. This DP/SP Indicator moved to an Enter Long Signal November 7th, and remains there Thursday, November 8th, 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 Thursda y . They generated a Sell signal Thursday, October 25th, as the HUI 30 Day Stochastic triggered a Sell signal October 24th, and our HUI Purchasing Power Indicator generated a Sell on October 25th. 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 Thursday, November 8th, Demand Power was flat at 396 while Supply Pressure fell 1 to 426, telling us Thursday’s HUI decline was weak.

DJIA PPI fell 1 to 41.98, on a Buy

DJIA 30 Day Stochastic Fast 83.33 Slow 60.00 On a Buy

DJIA 14 Day Stochastic Fast 96.67 Slow 87.22 On a Buy

DJIA % Above 30 Day Average 83.33

DJIA % Above 10 Day Average 96.67

DJIA % Above 5 Day Average 93.33

Secondary Trend Indicator Fell 5 to Negative -3, On a Sell

Demand Power Fell 3 to 427, Supply Pressure fell 2 to 416 Buy

McClellan Oscillator Fell to Positive + 182.65

McClellan Osc Summation Index – 496.07

Plunge Protection Team Indicator – 3.21, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator + 409.4 on a Buy

NYSE New Highs 75 New Lows 68

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Buysignal Wednesday, November 7th, 2018, and remain there November 8th, 2018. The NDX Purchasing Power Indicator generated a Buy on November 7th, the NDX 14 Day Stochastic triggered a Buy signal on October 30th, 2018 and the 30 Day Stochastic triggered a Buy signal on November 1st. 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 Short positions signal Wednesday, November 7th and remains there November 8th. On Thursday November 8th, Demand Power fell 3 to 463, while Supply Pressure flat at 459, telling us the rise was strong with significant short-covering.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal November 1st, 2018, and needs to rise above positive + 5.0 for a new Buy. It fell to positive + 19.4 on Thursday, November 8th. 

NDX PPI Fell 3 to 193.87 On a Buy

NDX 30 Day Stochastic Fast 59.52 Slow 45.00 On a Buy

NDX 14 Day Stochastic Fast 79.76 Slow 73.57 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 19.4 On a Buy

NDX Demand Power Fell 3 to 463, Supply Pressure Flat at 459 Neutral

RUT PPI Flat at 159.36 on a Buy

RUT 10 Day Advance/Decline Line Indicator + 320.9 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

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

HUI PPI Flat at + 161.35, on a Sell

HUI 30 Day Stochastic Fast 30.00, Slow 37.22 on a Sell

HUI Demand Power Flat at 396; Supply Pressure Fell 1 to 426, Sell