Today’s Market Comments:

Stocks fell Wednesday, July 11th. Volume was light. The Industrials fell to their 50 day moving average and stopped there. A few days ago, the 50 day MA was resistance. After rising above that level, it is now support. All of our key indicators remain on Buy signals in spite of Wednesday’s decline. The top wave mapping at this time considers stocks are correcting within a new rising trend, wave v-up within a large rising trend-channel from August 2015. The alternate for Blue Chips is that they are now working through the final wave {c} down of the final subwave e-down of triangle iv from January 2018. We update charts in tonight’s report.

Precious metals are finishing patterns that will lead to a powerful and lengthy rally. Gold is base building and has formed a large Inverse Head & Shoulders Bottom, a rounded bottom. This is an accumulation pattern. While precious metals and Miners fell sharply Wednesday, which could be fulfilling our alternate mapping, nevertheless, once complete, which should happen within months if not weeks, a strong rising trend should take over.      

Our Blue Chip key trend-finder indicators moved to a Buy signal July 9th, 2018 and remain there Wednesday, July 11th. The Purchasing Power Indicator component triggered a Buy signal Thursday, July 5th. The 14-day Stochastic Indicator generated a Buy on June 14th, and the 30 Day Stochastic Indicator generated a Buy on July 9th, 2018. When these three indicators are in agreement, 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 Buy signal Tuesday, July 3rd, and remains there Wednesday, July 11th, declining 7 points (out of a possible 9 points), at positive + 16, needing to fall below the negative – 5 threshold for the new Sell.

Demand Power fell 7 to 387 Wednesday while Supply Pressure rose 7 to 380, telling us Wednesday’s decline in Blue Chips was strong. This DP/SP Indicator moved to an Enter Long Signal Friday, July 6th, and remains there Wednesday, July 11th, 2018.

The Plunge Protection Team Indicator moved back to an “OFF” signal on March 21st, which means the PPT is not as 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, or if there is it will not be effective. 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, Silve r and Mining stocks fell Wednesday, July 11th. They moved to a Sideways signal Tuesday, July 3rd, as the HUI 30 Day Stochastic triggered a Buy signal July 3rd, and our HUI Purchasing Power Indicator generated a Sell on June 15th. When these two indicators are in agreement, it is a directional signal, and when at odds with one another, it is a combination neutral signal. On May 29th, the HUI Demand Power / Supply Pressure Indicator moved to a Short signal. On Wednesday, July 11th, Demand Power fell 4 to 384 while Supply Pressure rose 7 to 406, telling us Wednesday’s HUI decline was moderate.

DJIA PPI Fell 4 to + 63.70, on a Buy

DJIA 30 Day Stochastic Fast 43.33 Slow 45.33 On a Buy

DJIA 14 Day Stochastic Fast 53.33 Slow 46.11 On a Buy

DJIA % Above 30 Day Average 43.33

DJIA % Above 10 Day Average 90.00

DJIA % Above 5 Day Average 63.33

Secondary Trend Indicator Fell 7 Positive + 16, On a Buy

Demand Power Fell 7 to 387, Supply Pressure Rose 7 to 380 Buy

McClellan Oscillator Fell to positive + 13.37

McClellan Osc Summation Index + 2956.11

Plunge Protection Team Indicator -5.46, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator + 324.4 on a Buy

NYSE New Highs 59 New Lows 44

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated a Buy signal Friday, July 6th, 2018, and remain there July 11th, 2018. The NDX Purchasing Power Indicator generated a Buy on July 2nd, the NDX 14 Day Stochastic triggered aBuy signal on July 2nd, 2018 and the 30 Day Stochastic triggered a Buy signal on July 6th. 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 Buy positions signal Friday, July 6th and remains there July 11th. On Wednesday July 11th, Demand Power fell 3 to 421, while Supply Pressure rose 3 to 410, telling us Wednesday’s decline was moderate.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal July 6th, 2018, and needs to fall below negative – 5.0 for a new Sell. It fell to positive + 19.8 on Wednesday, July 11th. 

NDX PPI Fell 4 to + 251.86 On a Buy

NDX 30 Day Stochastic Fast 55.95 Slow 53.59 On a Buy

NDX 14 Day Stochastic Fast 74.00 Slow 63.56 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 19.8 On a Buy

NDX Demand Power Fell 3 to 421, Supply Pressure Rose 3 to 410 Buy

 

RUT PPI Fell 2 + 194.36 on a Buy

RUT 10 Day Advance/Decline Line Indicator + 75.20 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Sideways signal July 3rd, 2018.

HUI PPI Fell 3 to 179.10, on a Sell

HUI 30 Day Stochastic Fast 30.00, Slow 47.22 on a Buy

HUI Demand Power Fell 4 to 384; Supply Pressure Rose 7 to 406, Sell