Daily Market Comments - November 2007
11/29 - Stock Market Comments
The Bullish Harami signals were definitely confirmed on Wednesdayday. The T-line was breached and is not acting as resistance anymore. Investor sentiment did exactly what was required to confirm the bottoming action of the past week. After the huge move of Wednesday, expected some profit-taking early today. Most of the short positions were stopped out with profits on Wednesday. Now start looking for good long buy signals.
11/28 - Stock Market Comments
What is a major factor for indicating a change of investor sentiment? Indecision! Indecision can be found with a series of Doji signals or with very volatile swings in price movements. The Dow chart has illustrated great indecision over the past week of trading. The Bullish Harami signals of the past few days produced the potential of a market reversal. However, these signals were not followed by confirmation. An additional factor was the T-line clearly acting as resistance. Tuesday's Bullish Harami closed very close to the T-line. With this morning's futures showing great bullish strength, it can be assumed that prices are now coming up through the T-line. This should instigate buying strong charts immediately on the open. The end of the day should show a close above the T-line for all the indexes and indicate a trend reversal.
11/27 - Stock Market Comments
Both the Dow and the NASDAQ failed at the T-line on Monday. Obviously this illustrates the downtrend is still in progress. Stochastics have been in the oversold condition for a couple of weeks, which it can do in a sustained downtrend. Friday's Bullish Harami shows some signs of an initial bottoming action. No aggressive buying should be done until a strong buy signal appears.
11/26 - Stock Market Comments
The Friday after Thanksgiving is usually a very lethargic trading day but as we saw, the Dow rallied back 182 points forming a large Bullish Harami. This occurred at the same level where the Dow bottomed out in mid-August. There is always the question of whether a low volume day such as Friday is important for analyzing the charts. Keep in mind, the candlestick signals are the cumulative knowledge of everybody buying and selling during a certain time frame. Friday's trading is part of that picture. Todays futures indicate a flat open. Watch to see if the Bullish Harami gets confirmed.
11/21 - Stock Market Comments
Tuesday's trading formed a Doji in both the Dow and the NASDAQ. That would have indicated the possibility of the trend reversing upon a positive open this morning. However, as we can see, the morning futures are strongly down. The Dow trend will continue until a candlestick buy signal is followed by confirmation that brings the trend up through theT- line. Until then, continue to hold short positions and any purchases of long positions should be done with the idea of getting back out on the first signs of weakness.
11/19 - Stock Market Comments
The Dow formed a Bullish Harami at the T-line on Friday. The NASDAQ formed a Hammer signal. However, with the lower open today, the choppy market enviroment continues. As before, continue to look for strong buy signals but remain nimble after entering any trades. This market has not established any trend yet.
11/16 - Stock Market Comments
The Dow closed more than halfway down the large Bullish Engulfing signal that indicated the Bulls were taking control. A close below the halfway point indicates the Bears are still in control. The morning futures are showing a positive open. Although the stochastics are showing oversold cond