Daily Market Comments - December 2007
12/26 - Stock Market Comments
The Dow and the NASDAQ came up through the 50 day moving average on Monday. This indicated that the 50 day moving average may obviously not act as resistance. The NASDAQ has shown very strong buying over the past few trading days, gapping up each day. Continue to stay long but expect some consolidation today, after the good strength we saw during the past week of trading.
12/21 - Stock Market Comments
The NASDAQ gapped up above the T-Line yesterday. The Dow formed another Spinning Top. The positive Futures this morning is more confirmation that the uptrend should continue for the next few days.
12/20 - Stock Market Comments
Wednesday's indecisive trading was somewhat expected with the stochastics not yet in the oversold area. The stochastics are now in the oversold area. The NASDAQ was trading right at the 200 day moving average, forming a couple of Doji signals. Today's positive open illustrates the Bulls have now stepped in. Start adding long positions with the expectation of the markets closing stronger today. A close near the lower end of the trading ranges would indicate this market did not reverse.
12/19 - Stock Market Comments
The Dow and the NASDAQ formed Bullish Harami signals on Tuesday. Positive confirmation is required today to indicate that the current downtrend is being reversed. However, stochastics are not yet into the oversold area which would indicate the possibility of a couple of more indecisive trading days. This morning's futures are relatively flat. I would be very picky about which stocks to go after.
12/18 - Stock Market Comments
Today's futures are showing good strength but be careful. There needs to be a strong reversal signal to indicate the downtrend is over. The stochastics do not indicate that happening for the next few days. Unless we see a very strong bullish candle today, such as a Bullish Harami, any long positions should be assessed while considering the possible continuation of the market downtrend.
12/17 - Stock Market Comments
The Dow failed at the 50 day moving average this past week. This makes the 200 day moving average the next viable target, which is not very far away. Expect another day or two of the markets pulling back, however, continue to stay with strong sectors. The solar energy companies are still performing well. LDK is opening over 20 points higher today.
12/14 - Stock Market Comments
Although the Dow showed some positive on the close yesterday, it failed to come up through the 50 day moving average. More significantly, it did not come up to the halfway point of Tuesdays large Bearish Candle. Until the Dow can negate that large Bearish Candle, Bulls need to stay on the defensive. This is a good area to build a little cash in the portfolio. A close above the 50 day moving average is very relevant at this level.
12/13 - Stock market Comments
The late day weakness in the markets revealed the Bulls had not been able to take back control of the trend after the severe selling day on Tuesday. The Futures are showing continued weakness this morning. Any positions that show selling confirmation today should be lightened up. Until a buy signal appears, the long positions should be reduced. At this time, increasing the cash position would be prudent.
12/12 - Stock Market Comments
The hard selling after the Fed announcement was too much of a reaction, as discussed in the chat room yesterday. The recommendation to wait and see what the morning Futures would bring is usually the correct posture after a strong knee-jerk reaction. Currently, the mo