Today’s Market Comments:

Note to Platinum members: We entered a new position today, details available at the Current Trade button.

 

Stocks plunged Monday, December 24th, the worst Christmas Eve drop ever, then rose December 26th, the largest daily price gain ever. How is that for volatility! The rise Wednesday came from an extraordinary short-term oversold condition and a little help from our deep pockets friends.

 

This is to be expected during a crash that is kicking off a new massive Bear market, Grand Supercycle degree wave {IV} down. Stocks are rising in corrective wave {ii}up of {3} down, or {2} up which could last into year end. Then a powerful plunge, wave {iii} down or {i} down of{3} down of 3-down will follow. We update charts in tonight’s report.

 

We have a Phi mate turn date that was ideally scheduled for December 27th, which may have occurred a day early, at today’s opening intraday low.

 

Our key trend-finder indicators moved to a Sideways signal from a Sell Wednesday, December 26th. The Blue Chip, NASDAQ 100 and Russell 2000 Purchasing Power Indicators moved to new Buys, at odds with the stochastic indicators which remain on Sells tonight. In spite of the 1,086 point rally in the Industrials Wednesday, not one Dow 30 stock was able to rise above its 30 day moving average. Further, we saw only 4 NYSE New Highs, but saw an incredible 808 New Lows. There was a huge imbalance between the Demand Power and Supply Pressure Indicators Wednesday, telling us there was an inefficient market, and significant deep pockets buying intervention that sparked short-covering to boost prices. The PPT met last Sunday, devising its support strategy for the stock market. Our Plunge Protection Team Indicator moved to “On” Friday, December 21st, suggesting it was very likely the PPT would induce a strong countertrend rally soon.

 

Precious metals rose Wednesday, Silver leading the way, but Mining stocks fell modestly. Their key trend-finder indicators remain on Sell signals tonight.

 

Our Blue Chip key trend-finder indicators moved to a Sideways signal December 26th, 2018 and remain there Wednesday, December 26th. The Purchasing Power Indicator component triggered a Buy signal Wednesday, December 26th. 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 Wednesday, December 26th, rising 9 points (out of a possible 9 points), to negative -42. It will need to rise above positive + 5 for a new Buy signal.

Demand Power rose 31 to 379 Wednesday while Supply Pressure fell 14 to 486, telling us Wednesday’s rise in Blue Chips was powerful with deep pockets intervention igniting short covering to boost Demand. This DP/SP Indicator moved to an Enter Short Signal December 6th, and remains there Wednesday, December 26th, 2018. 

The Plunge Protection Team Indicator moved to an “ON” signal on December 21st, 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. 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, Silver rose sharply, and Miners fell Wednesday. The HUI generated a Sell signal Wednesday, December 19th, as the HUI 30 Day Stochastic triggered a Sell signal December 19th, 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 Wednesday, December 26th, Demand Power fell 3 to 430 while Supply Pressure rose 1 to 418, telling us Thursday’s HUI move was mild.

DJIA PPI rose 30 to negative -46.49 from -76.48, on a Buy

DJIA 30 Day Stochastic Fast 0.00 Slow 0.00 On a Sell

DJIA 14 Day Stochastic Fast 6.67 Slow 1.11 On a Sell

DJIA % Above 30 Day Average 0.00

DJIA % Above 10 Day Average 16.67

DJIA % Above 5 Day Average 70.00

Secondary Trend Indicator Rose 9 to Negative -42 from -51, On a Sell

Demand Power Up 31 to 379, Supply Pressure Fell 14 to 486 Sell

McClellan Oscillator Rose to Negative – 153.68

McClellan Osc Summation Index – 2130.77

Plunge Protection Team Indicator + 18.49, an “ON” signal

DJIA 10 Day Advance/Decline Indicator – 840.4 on a Sell

NYSE New Highs 4 New Lows 808

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicatorsgenerated a Sideways signal Wednesday, December 26th, 2018, and remain there December 26th, 2018. The NDX Purchasing Power Indicator generated a Buy on December 26th, the NDX 14 Day Stochastic triggered aSell signal 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 an Enter Sell positions signal Friday, December 14th and remains there December 26th. On Wednesday December 26th, Demand Power rose 28 to 430, while Supply Pressure fell 10 to 484, telling us the rise was powerful with deep pockets intervention igniting buying and short-covering adding to Demand.

 

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 rose to – 37.8 on Wednesday, December 26th from -45.0 December 24th. 

NDX PPI Rose 37 to 79.26 from 42.54, On a Buy

NDX 30 Day Stochastic Fast 5.95 Slow 2.62 On a Sell

NDX 14 Day Stochastic Fast 9.52 Slow 2.86 On a Sell

NDX 10 Day Advance/Decline Line Indicator – 37.8 from -45 On a Sell

NDX Demand Power Up 28 to 430, Supply Pressure Fell 10 to 484 Sell

 

RUT PPI Rose 18 to 91.21 from 73.53, on a Sell

RUT 10 Day Advance/Decline Line Indicator – 586.3 from -789 On a Sell

 

Today’s Mining Stocks and Precious Metals Market Comments:

Our HUI key trend-finder indicators moved to a Sell signal December 19th, 2018.

HUI PPI Fell 2 to + 170.26 from + 172.08, on a Sell

HUI 30 Day Stochastic Fast 70.00, Slow 68.33 on a Sell

HUI Demand Power Fell 3 to 430; Supply Pressure Up 1 to 418, Buy