Daily Market Comments - May 2008
5/15 - Stock Market Comments
Wednesday's strength showed some weakness near the close but it's not anything yet that would show any change of investor sentiment. The 200 day MA is in the picture for both the Dow and the Nasdaq. The Dow looks to be testing it again. The Nasdaq touched it for the first time on Wednesday. Stay long.
5/14 - Stock Market Comments
Although the Dow closed down on Tuesday, the selling did not seem to have any aggressiveness to it, merely some profit-taking. The NASDAQ closed positive, setting up for a J-Hook pattern the should take the NASDAQ up to the 200 day moving average. Currently the trend appears to be working in the upward trend channel. Stochastics have curled back up. Continue to be predominantly long until a definite sell signal appears.
5/13 - Stock Market Comments
On Monday the Dow formed a Bullish Engulfing signal. Both the Dow and the NASDAQ appeared to be setting up for J-Hook patterns. Both indexes closed above the T-line on Monday. The recent pullback was not performed in a compelling the manner. The Bulls continued to make their presence known. The retail report was way above expectations today. Maybe this economy is not in as bad a shape as everybody has been telling us.
5/12 - Stock Market Comments
The weakness in the Dow on Friday was not fully confirmed by the NASDAQ. The Dow pulled back to the 34 day moving average. As of now, the downtrend needs to be considered the predominant bias, but the conviction of the selling is questionable. A bullish candlestick signal in the Dow today would further add to the questionability of the current downtrend and add more credibility to the longer-term uptrend.
5/9 - Stock Market Comments
On Thursday the Dow formed a Bullish Harami and the NASDAQ formed a Doji/Harami. However, today's weaker futures indicate no bullish confirmation of those signals. This market is now in a downtrend. The 50 day moving average is likely the next target. Crude oil prices are now above $126 a barrel. A negative open in the markets today would require a dramatic bullish move to negate the downward bias of the market. Buying some of the short index funds is prudent.
5/7 - Stock Market Comments
The market showed a good bullish indication Tuesday, trading lower in the morning and closing higher in the afternoon. The Dow is contending with the 200 day moving average and the NASDAQ is getting closer to it. The solar energy companies and the oil companies, of course, are maintaining good strength with crude oil prices pushing on to new highs. The markets are now in the overbought condition so stay nimble.
5/6 - Stock Market Comments
Monday's profit-taking was well anticipated just as the Dow reached the 200 day moving average. A Spinning Top at that level required a positive open on Monday. Expect some more profit-taking with the T-line acting as the potential support level. This would indicate today and maybe Wednesday as pullback days. The uptrend should be considered still in progress until we see a candlestick sell signal and a close below the T-line.
5/2 - Stock Market Comments
Today's employment numbers gave the indication that a recession, if we are in one, may not be as severe as anticipated. The Dow is now up through the 200 day moving average. Be careful of a "gap and crap" type day. Currently there are no signals showing any indication of weakness. However, the stochastics are now in the overbought conditions. As the indexes start testing the 200 a moving average, anticipate some profit-taking. Stay long but be nimble.
5/1 - Stock Market Comments
The markets were strong going into the Fed announcement Wednesday but closed lower on the day, forming a Shooting Star signal in the Dow and a Bearish Engulfing signal in the Nasdaq. This will make today's trading easy. A lower open will indicate the Bears have taken control. The lower end of the trend channels should be the short term targets. A bullish day makes the 200 MA the target. It is not unusual to see a completely different trading action the next day after a Fed announcement.