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Daily Market Comments - July 2007

7/31 - Stock Market Comments

All the indexes formed a Bullish Harami yesterday. This occurred when stochastics were now near the oversold conditions. The past year has seen an uptrend in the market that has been interspersed with hard-sell loss for a few days and then the Bulls step back in. We may have experience that once again this past week. Be buying long positions but remain nimble.

7/30 - Stock Market Comments

The markets sold off hard in the final hour on Friday, probably a function of margin calls. This morning's positive open could be an indication of a Bullish Harami potential for the day. Start watching for potential buy signals. There are many bottoming signals that have formed in the past few days in individual stocks. Currently the market trend for the past year has been a steady uptrend followed by sharp selling, then a steady uptrend again.

7/27 - Stock Market Comments

The large selloffs that occur during the uptrend are somewhat healthy. It keeps the euphoria from coming into the market. Yesterday's pullback definitely has put a damper on investor Bullish sentiment. Do not expect any major move in today's market. There should be choppiness in the markets until investors get a feel for what the market will do from here.

7/26 - Stock Market Comments

On Wednesday, the Dow moved up and just touched the T-line. Although it formed a Bullish Harami, the stochastics were not yet in the oversold area. That made the downtrend still a viable possibility. As mentioned in Wednesday's afternoon comments, this downtrend is not out of the woods yet. The much weaker open today, as indicated by the premarket futures, indicates the pullback needs to find a viable bottom. The 50 day moving average in the Dow remains a potential target.

7/25 - Stock Market Comments

Amazon is opening up 15 points higher today. This has changed the direction of Tuesday's investor sentiment. With the Dow futures opening up 62 points, any selling of long positions or establishing any short positions should be held off until there is confirmation that Tuesday was not a one-day selloff during a slow uptrend. Confirmation of the sellers being in control would result in a positive open today with the markets moving back down through Tuesday's close later in the day.

7/24 - Stock Market Comments

Although the Dow showed strength on Monday, the rest of the markets were not as robust. There were more stocks trading lower than trading higher on Monday. Today, there are lower futures that are starting to reveal the lack of sustained bullishness at this level in the markets. Be prepared to take profits in some of a long positions and add some short positions to the portfolio. This may be short-term but we do not know that yet.

7/23 - Stock Market Comments

Friday's selling may have been a function of options expiration. It created a Bearish Engulfing signal in the Dow. Today's futures are showing strength on the open. The trend is still your friend. A severe sell signal or a confirmed sell signal is required to indicate that the uptrend is over. Continue to hold long positions in strong sectors.

7/13 - Stock Market Comments

The anticipated breakout through the upper trendline was finally consummated Thursday, and 283 points in the Dow was a very pleasant and obvious indication that the upper trend channel was not going to act as resistance anymore. This morning's futures do not reveal any great profit-taking on the open. Do not be surprised to see some consolidation in the next few days of trading, but the fact that a large bullish candle breached the upper resistance level reveals t


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