Daily Market Comments - January 2008
1/31 - Stock Market Comments
The warning signal was the Dow forming a Shooting Star/Harami after the Fed announcement. With the morning futures down strong, this is an indication to take some of the long positions off the table. Now we have to watch for a double bottom.
1/30 - Stock Market Comments
The morning futures have been whipsawing as different economic reports come out. The Asian markets took some profits today. We may expect some consolidation in the Dow before the Fed announcements. Remain nimble. Although the positive trading in the markets has diminished, the talk of recession, especially with another hard selling day such as a three hundred (300) point drop in the Dow, could come back to the forefront. The NASDAQ closed Tuesday right on the T-Line. It needs to close above that level today to maintain bullish sentiment.
1/29 - Stock Market Comments
Monday was a day that would indicate which direction the market was going to move. Either the markets were going to fail at the T-Line or indicate whether the Bulls were still in control. Obviously, the Bulls were still in control. Today and Wednesday will probably be influenced by whether everybody thinks the Feds will cut rates either one quarter of a point or one half of a point. As mentioned previously, the longer the bullish trend maintains, the less the recessionary fears will be expressed.
1/28 - Stock Market Comments
Some selling on Friday was expected. However, the magnitude of the selling created bearish signals in both the Dow and the NASDAQ. This occurred at the T-line. Today's trading needs to reveal the Bears 'not' in control. This would require a Doji, a Hammer, or a Bullish Harami to indicate Friday's selling was merely profit-taking in an uptrend versus the end of a bounce in a downtrend. Remain nimble and be prepared to close out long positions on severe selling today.
1/24 - Stock Market Comments
The Hammer signal in the Dow on Tuesday was an alert of a possible reversal. Wednesday confirmed the change of investors' sentiment with almost a test of the previous day's low, followed by a Bullish Engulfing signal. It would not be unusual to expect some consolidation today after a four fifty (450) point swing in the Dow. This morning's futures indicate a continuation of bullish sentiment. Continue to buy but remain nimble, we could expect the negative sentiment to diminish over the next couple of days.
1/23 - Stock Market Comments
To repeat the obvious, the Dow was down 460 points at one time on Tuesday. It closed down 127 points. This created a large Hammer signal. We need to see bullish confirmation of a Hammer signal. This morning, the futures are still showing strong movement to the downside. This would indicate that more time is needed to illustrate the Bulls are starting to step in. Although the Hammer signal represents a possible reversal in the downtrend, until we see definite confirmation do not commit to the longside with any aggressiveness.
1/22 - Stock Market Comments
Where do most people sell? They panic sell at the bottom. When do you want to buy? When there is blood in the streets! This day will be an excellent day to sit back and see when the selling stops. You will be able to use your candlestick signals whether on the one, five, or fifteen minute chart to see when the panic selling ends. If you have been keeping your powder dry, today may probably be a good day to use it.
1/18 - Stock Market Comments
The premarket futures appear to be up fairly strongly this morning. The Asian markets were down qui