Daily Market Comments - February 2008
2/29 - Stock Market Comments
The Evening Star signal that formed in the Dow on Thursday is influencing more selling today. Lighten up on long positions and add a few short positions on today's weakness. The Dow had the possibility of supporting on the T-Line but today's futures indicate that it will not happen. Long positions should be greatly reduced at least for the next few days.
2/28 - Stock Market Comments
The Dow formed a Doji on Wednesday just above the 50 day moving average. There should be some consolidation soon, but nothing yet to show any major change of investor sentiment. This morning's futures indicate weakness. The uptrend should remain in progress provided no severe selling is witnessed in the markets today. Continue to hold your own position. Notice the farther this market moves higher, the more the term "recession" has disappeared from everyone's analysis.
2/27 - Stock Market Comments
The Dow closed right on the 50 day moving average. This morning's futures indicate some selling. Remember the rule, the first time a trend reaches a moving average, it will usually fail. If it comes back and tests the moving average the second time, it will go through. Anticipate some consolidation today. Unless the selling is dramatically severe, expect today to be a profit-taking day.
2/26 - Stock Market Comments
The strong bullish move on Monday brought the Dow up through the top of the Pennant formation. This would indicate a bias to the upside. Expect some consolidation today. However, a lack of severe selling today would indicate a bullish trend starting to take hold.
2/25 - Stock Market Comments
Friday's trading was the same as the previous seven trading days, moving one way in the morning and ending up in the opposite direction by the end of the day. This kept both the Dow and the Nasdaq in the range of the Pennant formation. Today's futures reveal a lack of direction again. It's the same scenario as all last week, expect sideways movement but be ready for a breakout one way or the other out of the point of the Pennant formation.
2/22 - Stock Market Comments
The markets are demonstrating a definite lack of direction, moving in one direction during the morning and ending in the opposite direction in the afternoon. As discussed in last night's chat room, the Dow is forming a Pennant formation. This means we will probably not see any major movement in the markets until there is a breakout one way or the other. When the markets are in these conditions, there is nothing wrong with sitting and waiting for the signals to provide better guidance.
2/21 - Stock Market Comments
The Dow had a nice turnaround Wednesday after trading much lower, then finishing up 90 points as the Bulls stepped in during the afternoon. The NASDAQ closed right on the T-Line after opening much lower. Today's positive open provides more confirmation that the fear aspect is diminishing dramatically in this market. Stay nimble but buy the strong sectors.
2/20 - Stock Market Comments
Tuesday's failure to hold the morning rally created another Doji in the Dow and another Bearish Engulfing signal in the NASDAQ. Stochastics have now rolled over and are heading down. Today's open will indicate which direction they will be taking the trend of this market. The morning futures are down dramatically. Get out of weak, long positions. A strong selling day in the market will confirm the slow downtrend. Another Doji day in the Dow would at best continued the sideways movement.
2/19 - Stock Market Comments
The indecisive trading of Friday was needed to indicate whether a full scale reversal h