Daily Market Comments - December 2006
12/28 - Stock Market Comments
The expected 'dead' week after Christmas has been fairly lively. The 20 day moving average clearly acted as support once again. The Dow is now pressing the top of the uptrending channel with plenty of juice left in the stochastics. A break out of the upper trend channel could be the start of a very strong rally going into the first of the year. Continue to stay long in the strong chart positions.
12/22 - Stock Market Comments
The selling in the markets on Thursday was relatively lackluster. It did not alter the slow uptrend scenario. Do not expect too much market movement today. The morning futures are showing a positive open. If there are any traders on the floor at the open, most of them will probably be gone after lunch. Expect a very quiet day. Happy holidays to you all.
12/21 - Stock Market Comments
Wednesday's lackluster trading was not unexpected a few days before the Christmas holiday. Expect more of the same for the next few trading days. Volume should be light. Unless anything major happens in the world markets, anticipate that the slow uptrending channel will still remain in progress.
12/20 - Stock Market Comments
The past couple of days of trading provided the opportunity for the markets to pull back with some profit-taking. The NASDAQ appeared to have run into an upper resistance level. The Dow showed potentially weak signals, Shooting Stars. However, the strength in the markets Tuesday was further evidence that the slow uptrending channel was still in progress. As of yet, there has not been a confirmed signal to indicate a change of investor sentiment. Continue to hold the good bullish candlestick charts.
12/19 - Stock Market Comments
The weakness in the NASDAQ was significant, although the Dow did not show too much selling. The markets appear to be opening weaker this morning. The Evening Star-type signal that formed in the NASDAQ did so right at the recent highs, making the resistance level somewhat obvious. Weowuld be taking some profits on long positions that are not showing great strength this morning. The markets may be using the holidays as a resting stage. They appear to be getting tired.
12/15 - Stock Market Comments
The Dow had been trading at a resistance level for the last week. Thursday's bullish trading provided a clear indication of which direction the investor sentiment was moving. The Dow broke through the resistance level with strong conviction. This makes the top of the uptrend channel the next viable target. The other indexes confirmed that for at least a few more days of positive trading.
12/14 - Stock Market Comment
The potential strength in the markets Wednesday was dramatically diminished with the market trading almost flat at the end of the day. This formed a Hanging Man/Shooting Star combination in the Dow. This weakness is occurring at a perceived resistance level. The NASDAQ has not shown any great strength for the past two-week period. On the other hand, it has not revealed any great weakness either. The slow uptrend is still the predominant analytical factor. Until that is greatly altered by confirmed sell signals, anticipate the uptrend still being in progress.
12/13 - Stock Market Comments
The Dow traded much lower on Tuesday but closed at the very top end of its trading range. This kept the Dow well above the 20 day moving average. The NASDAQ, although trading weaker for the day, attempted to close relatively close to the 20 day moving average. The strength in this morning's premarket futures, caused by a good retail report, keeps the uptrend in progress. Continue to stay long with a few short positions in the portfolio.
12/12 - Stock Market Comments
The Dow opened near the low on Monday and traded higher for the rest of the day. This positive trading confirmed the Bullish Harami of the previous day. The NASDAQ closed slightly above the 20 day moving average. This provides more evidence that the 20 day moving average is acting as support in both the Dow and the NASDAQ for this uptrend. Continue to hold long positions with a small number of short positions in the portfolio.
12/11 - Stock Market Comments
The Bullish Harami that formed in the Dow on Friday, right on the 20 day moving average, was a signal that indicated that the selling has stopped. It provided more evidence that the 20 day moving average was acting as the uptrend support. The Asian markets were up strong this morning. The premarket futures are showing strength. Continue to stay long.
12/8 - Stock Market Comments
Both the Dow and the NASDAQ had the opportunity to move into new high territory on Thursday. However, after the Dow had traded positive for a good part of the day, it started selling off in the late afternoon. This confirmed a Bearish Harami from the previous day. The NASDAQ formed a Bearish Engulfing signal. These sell signals are now creating double tops. Start taking profits on your toppy charts and adding some short positions.
12/7 - Stock Market Comments
The weakness in the markets Wednesday was not anything of any great magnitude. It appeared to be more profit-taking than a change of investor sentiment. The strength of this morning's futures reveal that the Bulls are still in this market. The uptrend should still be in progress until a severe sell signal illustrates a change of investor sentiment. Continue to hold the long positions.
12/6 - Stock Market Comments
The bullish activity in the markets on Tuesday was further confirmation the uptrend was using the 20 day moving average as the support area. Today's premarket futures are showing some weakness but not anything that would indicate any change of investor sentiment, just some profit-taking. Continue to stay long.
12/5 - Stock Market Comments
The strength in the markets on Monday reaffirmed the 20 day moving average acting as support in this existing uptrend. The next target for both the Dow and the NASDAQ will be a test of the recent highs. Upon breaching the recent highs, the top of the trend channel becomes the next target. Currently the probabilities created from the signals indicate a few more days to the upside. Continue to hold long positions until something shows a dramatic change of investor sentiment. This uptrend should continue.
12/4 - Stock Market Comments
The markets traded weak most of the day on Friday. However, the buyers stepped back in during the final hour. Both the Dow and the NASDAQ closed right near the 20 day moving average. Today needs to see the trading stay above the 20 day moving average to indicate that the market trend is still moving in an upward direction. A close down into the tails of Friday's trading signals would make the 50 day moving average the likely target. Biotech firms are getting a lot of interest.
12/1 - Stock Market Comments
Thursday's indecisive trading was not unusual after a big up-day. Both the Dow and the NASDAQ held up above the 20 day MA. The overall trend is still positive. The support on the 20 MA over the past couple of days reinforced that analysis. Continue to hold long positions.