Weekend Sept 29, 2018
This signal was created by the late Jim Miekka, who was a mathematician and market analyst. He wanted to improve on Gerald Appel’s “Split Market Sell Signal”, which occurred whenever both NH and NL exceeded 45 on the same day. The adjustments which Miekka made accounted for the growth in the number of issues traded since the days when Appel first introduced that signal, and Miekka also added some other filtering criteria.
I regularly feature Tom's comments but this one is of particular interest. There has been a new record of HOs going all the way back to 1988.
There were 12 HOs just before the February mini crash. Now there have been 10 in September. We urge you to read and notice the chart Jesse Felder created going back to 1988 contained in Tom's update.
NYSE A D Line 10 Months
NYSE A D Line Three months
This needs to improve qucickly. Recall that October is a prime month for market setbacks, 1929, 1987, top in Fall 2007.
This bears a close watch.
5 Year Yield
Interest rates are on the rise and in a hurry.
Note the big 42 cent or 2.95% spike in silver Friday. Has this market finally seen a wash out and reversal?
West Texas Intermediate
WTIC keeps hitting resistance in the 1970s.
The US Dollar has yet to really break down. This is holding price advances in metals and crude oil priced in dollars.
The Bottom Line
We are in the dangerous seasonal part of the year for a stock market break down. Interest rates are headed higher. We are patiently waiting a resolution of the US Dollar to track the next move in metals ad oil.
The 44 minute response by Judge Kavanaugh shows just how far basic civility towards a judicial nominee has fallen. While Dr. Ford could not remember anything but Cavanaugh's name,, not the place, date, how she got there or returned home. He is quite specific even to a remarkable 982 calendar. No doubt Dr. Ford believes what she has to say but no one else she names is able to recall her version of the facts. Believe what you want about the two. But I lived through the 1973-74 Watergate breakdown with a similar attack in the media on a daily basis.The markets slowly tanked 50% in two years. Social mood is not in mere decline or tatters it is being torn apart like a Gladiator up against a lion in the Coliseum. The Dems overlooked far more serious behavior by Jack and Ted Kennedy, Gary Hart, Bill Clinton, and John Edwards. But this is a Republican.
While this sounds extreme, I noted one comment on this at the digital WSJ. The writer wondered if this was telegraphing the final end of the USA as a power. The Dems have disregarded the concept of innocence until proven guilty. And all the Republicans are not for the Trump nominee either. As he notes, by the time this is done Judge Kavanaugh may not even be able to coach a girls' basketball team.
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