Whew! I’m glad to see the back of October, aren’t you? Last month lived up to its usual market volatility, with several big down days on the Dow Jones Industrial Average. However, things are looking up, and with this morning’s futures, it looks like investors appreciate the coming gridlock in Congress, following yesterday’s mid-term elections.
Wall Street’s Best Dividend Stocks 314
Can Go Either Way
Resistance for the QQQ remains between 172.00 and 174.00. Support is between 165.00 and 168.00. A break below 165.00 would imply 162.50 is likely. A break below 162.50 would suggest the low on 10/29 at 160.09 will not hold and a new downside target of 154.50 is possible. MACD is on a sell after rising from a very oversold condition on the latest rally. MACD is oversold and not yet on a buy. However, it’s likely to go on a buy with any strength in the QQQ later this week. It’s positive daily MACD has turned up generating a buy. However, no double bottom formation or positive divergence has formed. If the QQQ gets through resistance between 172.00 and 174.00 then I would expect another rally attempt towards new highs. On the other hand, if the QQQ goes below 162.50 I would expect more selling pressure to occur and the 10/29 low to be violated.
Dr. Marvin Appel and Gerald Appel, Systems and Forecasts, www.systemsandforecasts.com, 800-829-6229, November 5, 2018
Perhaps Confirming Highs
Market trends have turned to down from up. To be sure, there may be some sideways movements that cause whipsaws (short-term trend changes) and false signals. There may even be an index or two that reaches back to new highs, but it appears for now that most major indexes have seen their highs for this bull market. It would not be unusual for the Dow Industrials, the blue-chip index for blue chips, to make another high, but if it remains unaccompanied by other indexes, this does nothing more than confirm a top formation.
Stephen L. McKee, No-Load Mutual Fund Selections & Timing, www.investments.com, 800-800-6563, November 2018
Signals Bullish, but Exercise Caution
I do think a retest of the recent lows near 2600 is going to happen. But we are not in the business of ignoring or trading against our own signals. So, we will continue to retain long call positions in the short-term, but will be rolling then up to take partial profits and lock in gains, while watching for signs of divergence and sell signals from some of the indicators that helped us spot the October top.
Lawrence G. McMillan, The Option Strategist, www.optionstrategist.com, 973-328-1303, November 2, 2018
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The next Wall Street’s Best Dividend Stocks issue will be published on December 12, 2018