For Wednesday December 27, 2017 3:00 PM Pacific.
DOW + 28 on 325 net advances
NASDAQ COMP + 3 on 54 net advances
SHORT TERM TREND Bullish
INTERMEDIATE TERM Bullish
STOCKS: There is a theory that tax loss selling, which usually takes place in October, did not take place because of uncertainty about the tax bill. Supposedly it is taking place now. Of course, you can never be sure, but something seems to be retarding progress in the markets.
Every time we look to be starting up, selling comes in. It could also be a large sell program. If a major institution is decides to unload shares, they won’t announce it. They simply bleed stocks into to the market and once it’s over, shares frequently explode to the upside.
GOLD: Gold moved up $9. Lower bond rates may have helped, but the momentum from its last oversold condition is more likely the reason.
CHART: The S&P 500 has been waffling sideways for over a week, but the advance decline line continues to make all time highs.
BOTTOM LINE: (Trading)
Our intermediate term system is on a buy.
System 7 We are long the SSO from 110.59. Stay with it on Thursday.
System 8 We are in cash. Stay there for now.
System 9 We are in cash.
NEWS AND FUNDAMENTALS: Consumer confidence came in at 122.1, lower than last month’s 128.6. Pending home sales rose 0.2%, lower than the expected .05%. On Thursday we get the trade deficit, initial claims and oil inventories.
INTERESTING STUFF: Never interrupt your enemy when he is making a mistake. ——–Napoleon Bonaparte
TORONTO EXCHANGE: Toronto was up 38.
BONDS: Bonds surged.
THE REST: The dollar was lower again. Crude oil fell back a bit.
Bonds –Bullish as of Dec. 15.
U.S. dollar – Bearish as of Dec. 11
Euro — Bullish as of Dec. 11.
Gold —-Bullish as of Dec. 13.
Silver—- Bullish as of Dec. 13.
Crude oil —-Bullish as of Dec. 26.
Toronto Stock Exchange—- Bullish as of September 20, 2017.
We are on a long term buy signal for the markets of the U.S., Canada, Britain, Germany and France.
Monetary conditions (+2 means the Fed is actively dropping rates; +1 means a bias toward easing. 0 means neutral, -1 means a bias toward tightening, -2 means actively raising rates). RSI (30 or below is oversold, 80 or above is overbought). McClellan Oscillator ( minus 100 is oversold. Plus 100 is overbought). Composite Gauge (5 or below is negative, 13 or above is positive). Composite Gauge five day m.a. (8.0 or below is overbought. 13.0 or above is oversold). CBOE Put Call Ratio ( .80 or below is a negative. 1.00 or above is a positive). Volatility Index, VIX (low teens bearish, high twenties bullish), VIX % single day change. + 5 or greater bullish. -5 or less, bearish. VIX % change 5 day m.a. +3.0 or above bullish, -3.0 or below, bearish. Advances minus declines three day m.a.( +500 is bearish. – 500 is bullish). Supply Demand 5 day m.a. (.45 or below is a positive. .80 or above is a negative). Trading Index (TRIN) 1.40 or above bullish. No level for bearish.
No guarantees are made. Traders can and do lose money. The publisher may take positions in recommended securities.
