Daily Market Comments - August 2005
08/01 - Stock Market Comment - Aug. 1, 2005
Friday's sell-off did not indicate any change of direction
for the markets. Nothing yet has created any signal
to indicate that the slow uptrend is still not in progress.
Unfortunately, the summer doldrums may become more
evident over the next three weeks. However, the activity
of the markets have been dramatically stronger than this time
Continue holding all the long positions.
08/02 - Stock Market Comment - Aug. 2, 2005
08/03 - Stock Market Comment - Aug. 3, 2005
08/04 - Stock Market Comment - Aug. 4, 2005
08/05 - Stock Market Comment - Aug. 5, 2005
08/08 - Stock Market Comment - Aug. 8, 2005
08/09 - Stock Market Comment - Aug. 9, 2005
08/10 - Stock Market Comment - Aug. 10, 2005
08/11 - Stock Market Comment - Aug. 11, 2005
08/12 - Stock Market Comment - Aug. 12, 2005
08/15 - Stock Market Comment - Aug. 15, 2005
Friday's trading had the opportunity to confirm a bullish
uptrend. Thursday's trading in the Dow closed right
at the top of the recent trading channel. The selling
brought the Dow's prices back into the middle of the
The NASDAQ had formed a Bullish Harami signal on
Thursday. Although the NASDAQ gapped down on
Friday, it formed a Hammer signal. The same type of
trading occurred in the S&P 500 and the Russell 2000.
The lower trading on Friday created some indecisive
signals. Stochastics are in the oversold area. The
scenario remains the same. Look for the recent pullback
to be bottoming out with mild selling. Something should
move the markets back up over the next few days. Most
likely it will be a break in the oil prices.
08/16 - Stock Market Comment - Aug. 16, 2005
Monday's buying in the afternoon was additional
confirmation that the selling in the markets over the past
week was not going to be anything severe. The stochastics
for the major indexes have now moved back into the
oversold area well demonstrating Candlestick buy formations.
The NASDAQ has formed a couple of bullish Harami's in
the past six trading days as well as a Hammer followed by
a Bullish Engulfing signal yesterday. The stochastics
have moved into the oversold area and appear to be
wanting to curl back up. Both the S&P 500 and the
Russell 2000 are demonstrating bullish indicators.
Start watching for strong buy signals in specific industries
08/17 - Stock Market Comment - Aug. 17, 2005
The Dow sold off to below the 200 day moving average.
The NASDAQ is now nearing the 50 day moving average.
The anticipated slow sell-off picked up speed Tuesday.
This made getting to the anticipated moving average
targets much quicker. Anticipate another couple of days
of pullback action before witnessing buy signals in the
stochastics in the oversold conditions.
Crude Oil has formed two Doji's over the last couple of days.
Watch for weakness today.
08/18 - Stock Market Comment - Aug. 18, 2005
The Dow and the S&P 500 appeared to support right at the
major moving averages. The NASDAQ formed a Bullish
Harami. The stochastics for all of the indexes are getting
near the oversold conditions.
The two Doji's at the top of the Crude Oil chart
indicated the potential of a price pullback. We suspect
Crude Oil prices will come back down and testthe 50
day moving average at around $60.50.A move to that
level should help with the bottoming action in the equity
08/19 - Stock Market Comment - Aug. 19, 2005
The NASDAQ appears to be wanting to test the 50
day moving average. The Dow should be trading
indecisively until the NASDAQ does reach the 50 day
moving average, which more than likely will be
Crude Oil prices moved higher this morning based on
an attack on the transport ship. However, the overall
trend in Crude Oil prices should be down for the next week or so.
Start watching for good buy signals in some stocks.
08/22 - Stock Market Comment - Aug. 22, 2005
The slow downtrend is still evident. However, the moving
averages still appear to be holding as support levels. Hold
the long positions until a severe sell signal appears.
Crude Oil picked up strength on Friday. It needs
to be watched. If it fails to produce a new high
in the next few days, it may be a sign that the Bearish
E ngulfing signal of last week is still in effect.
Continue to purchase long positions that show good chart
08/23 - Stock Market Comment - Aug 23, 2005
The buying was apparent most of Monday. However,
by the end of the trading day, trading came back
to the opening levels. This created Long-legged
D oji's in the Dow and the NASDAQ. This indecision
signal occurred very close to the 50 day moving averages.
Any positive trading today would warrant aggressive
Crude Oil had an opportunity to trade higher Monday.
By the end of the day, both Crude Oil and Natural Gas
traded near the low end of their trading range.
Any further weakness in Crude Oil would indicate
that a new high was not going to be reached.
This weakness should cause some strength in the
08/24 - Stock Market Comment - Aug 24, 2005
The slow market decline that has been projected for the
past two weeks has now reached the support levels,
the moving averages. Stochastics have gotten back
to the oversold condition. What should be the next
market trend expectation?
This morning the economic news shows that large consumer
sales are down much greater than expectations.
The markets will open lower. The trading needs to be watched
to see what Candlestick formation is seen today.
Weakness going into the close would indicate more selling
for the next few days as the major moving averages
would have been violated. On the other hand, a lower
open at the end of a slow down trend may eventually
form a bullish signal today.
08/25 - Stock Market Comment - Aug. 25, 2005
08/26 - Stock Market Comment - Aug. 26, 2005
Thursday's trading demonstrated the lack of direction. It
is not unexpected as the indexes are trading very close
to the moving averages. It is a Friday in late summer.
There may not be any great movement in today's trading.
The indexes are oversold, apparently looking for
a catalyst to get moving. Continue to hold the long
positions that are doing well in this market.
08/29 - Stock Market Comment - Aug. 29, 2005
The hurricane is going to be the predominant factor
in today's trading. The expectation of what has happened
to the oil rigs offshore is going to greatly influence
Crude Oil prices today. Although this is short-term
reaction trading, it will influence investor sentiment.
Friday did not show any buying support in this
market. What needs to be seen today is an early sell-off
followed by late afternoon buying to indicate a bottom
to this recent downtrend.
08/30 - Stock Market Comment - Aug. 30, 2005
08/31 - Stock Market Comment - Aug. 31, 2005