Daily Market Comments - March 2008
3/31 - Stock Market Comments
The weakness of Friday's trading indicated the moving averages were not going to act as support. This is seen with further weakness this morning. The markets had the opportunity to form J-Hook patterns last week but now reveal that the Bulls are not ready to reestablish control. Anticipate a sideways or slow downtrend type movement in this market until something major breaks it out of its pattern one way or the other.
3/28 - Stock Market Comments
All the indexes pulled back on Thursday to potential support levels, the various moving averages. We need to see positive trading today, such as Bullish Harami's, to indicate that those moving averages are going to act as support. The bias is still "long" provided you don't see any severe selling in the markets today.
3/27 - Stock Market Comments
Wednesday's trading indicated profit-taking for the day. This morning's futures are showing strength in the Dow and the S&P 500. The NASDAQ is showing less strength due to Oracle's weakness this morning. The bias is still bullish. Continue to hold long positions in the strong sectors.
3/26 - Stock Market Comments
The initial weakness today is the expected profit-taking after a strong market move. The Dow and the NASDAQ should attempt to use the 50 day moving average as support. Continue to stay long but we would not suggest being an aggressive buyer today. However, there are still stocks showing good chart patterns that can be bought.
3/24 - Stock Market Comments
A Stick Sandwich pattern formed in the Dow on Thursday. This is a very bullish signal. It illustrates bullish sentiment from the 420 point move in the Dow, profit-taking the next day, and followed by the Bulls entering back into the market on Friday. The Dow closed above the 50 day moving average on Thursday. Today's positive futures confirm the bullishness in both the Dow and the NASDAQ. The combination of bullish signals over the past two weeks, the Kicker signal and the Morning Star signal in the NASDAQ and the large Bullish Engulfing signals in the Dow, provided the evidence the Bulls were attempting to take control of the trend. Start buying long positions as long as the Dow remains above the 50 day moving average.
3/20 - Stock Market Comments
The severe selling of Wednesday put doubt back into the market trend. The 300 point move to the downside in the Dow closed more than halfway down the previous candle, as well as below the T-line. Once again, today's trading results are required to get a gauge on investor sentiment. Currently the markets are not telling us which direction it wants to move. Be nimble and stay predominantly in cash if you can. Today, we could see positive trading going into the long weekend. This is only one of two long weekends for the year.
3/19 - Stock Market Comments
The farther the markets move away from the recent lows, the less we hear the talk of recession. The less we hear about the talk of recession, the better the prospects of investor sentiment turning more bullish. This catch-22 clearly indicates how markets/prices are a function of investor sentiment versus fundamental facts. If the Dow can start using the 50 day moving average as support, versus resistance, the better the chances are that the uptrend should continue.
3/18 - Stock Market Comments
The Dow and the NASDAQ are still in the bottoming stages. Today's positive open requires confirmation going into the close. As we have witnessed for the past few weeks, the markets have been able to swing dramatically intraday. Any buying done today should be done so with the idea of closing the positions if the market tur