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Daily Market Comments - October 2007



10/31 - Stock Market Comments

Hopefully we will not see a scary day on this Halloween Wednesday. The morning futures are positive after the Google report. On Tuesday, although the Dow was down, the NASDAQ remained flat to positive. This revealed that money was not coming out of the market. Today the expectation is for the Feds to cut interest rates by one quarter of a point. Whether they do or not, expect some whipsaw action before the end of the day. Continue to hold long positions and continue to be nimble.

10/30 - Stock Market Comments

The Dow just touched the 20 day day moving average on Monday before pulling back. The Nasdaq closed just above the recent high. Today's futures are showing some selling. After the number of bullish days in the recent rally, some profit-taking is to be expected. Stay long but stay nimble when necessary.

10/29 - Stock Market Comments

The strength in the markets on Friday confirmed the patterns. The NASDAQ is forming a strong J-Hook pattern. The Dow closed more than halfway up the large bearish candle of last week and it closed above the T-Line. The uptrend should remain in progress with the potential of passing the recent highs. Continue to stay long.

10/26 - Stock Market Comments

The markets closed very tentatively on Thursday. The NASDAQ didn't show any indication of an uptrend continuing. However, the futures show strong bullish sentiment after the Microsoft earnings report. A positive open today should continue adding to the bullish sentiment.  

10/25 - Stock Market Comments

Wednesday's trading, as described in both of the books, was called a 'scary' day, a big selloff day after a couple of days of bullish signals. The fact that the Dow was down 200 points and finished up flat will give the Bulls a shot of confidence. Todays futures are trading positive. This scenario creates a high probability that the uptrend will continue. It's not a guarantee, but a high probability.  

10/24 - Stock Market Comments

The Dow closed positive on Tuesday but did not close above the halfway point of Friday's big bearish candle. This means the bearish sentiment has not yet been overcome by the Bulls. The NASDAQ showed a much stronger move Tuesday, closing at the top end of Friday's bearish candle. With the weakness in the markets this morning, anticipate a few more days of choppiness.   

10/23 - Stock Market Comments

On Monday the Dow formed a Hammer signal right at the 50 day moving average. The NASDAQ opened lower and closed almost halfway up the previous candle.This morning's futures indicate strength after the Apple report. If you add long positions today, the markets definitely need to close more than halfway up on Friday's candle. A lower close today will be a strong indication that the markets are heading lower.

10/22 - Stock Market Comments

The fact that the markets opened lower on Friday was still an indication that the Doji signals in the Dow had not yet shown any bullish confirmation. This continued the non-aggressive stance for buying positions. The breakdown of the market has now altered investor sentiment. The other world markets have followed suit. The prognosis of the markets continuing to be sloppy, as projected most of last week, still remains in effect. The magnitude of the pullback has now reached the stage where a bullish sentiment has been altered. Most long positions should have been stopped out by this time. With stochastics closer to the oversold condition, remaining in cash until the next buy signal appears is the

 

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