Daily Market Comments - May 2008
5/30 - Stock Market Comments
The important technical levels that need to be addressed today are the 200 day moving average for the NASDAQ and the 50 day moving average for the Dow. Thursday's trading took the indexes up through those levels but they closed just below. It will be important for the uptrend in both indexes to close above those levels. A failure of those levels would be indicative of them acting as resistance. There are still a lot of stocks moving positive. Continue to hold those positions.
5/29 - Stock Market Comments
The bullish indication on Wednesday was illustrated by the selling early followed by the buying going into the close. The Bullish Harami was confirmed in the Dow. The NASDAQ had sold lower during the day but closed back up above the T-line. Unless a severe sell signal reappears in the markets, the slow uptrending channel should be the predominant indicator.
5/28 - Stock Market Comments
The Dow is trading below the 50 day moving average. It traded near a minor trend line on Tuesday, forming a Bullish Harami. The NASDAQ showed good strength, closing back above the T-line. This morning's futures are showing good bullish strength. Stochastics are in the oversold condition for both indexes. Bottoming action has been forming in the NASDAQ for the past three days. Be prepared to cover short positions and add back to the long positions provided today's trading remains bullish going into the close.
5/27 - Stock Market Comments
The weakness in Friday's market was more illustrated in the Dow than in the NASDAQ. The QQQQ's are showing Doji signals for the last two days. Today's positive futures demonstrates the lack of aggressiveness on the part of the sellers. The NASDAQ is showing indecision at the 50 day moving average area. Today usually is considered the first day of summer. Do not be surprised to see a slowdown in volume. The markets should be considered still in a downtrend. However, the NASDAQ is showing signs of bottoming action.
5/23 - Stock Market Comments
Thursday's trading was indecisive. This occurred near the 50 day MA in the Dow. Today's futures show continued weakness, indicating Thursday's trading was just a pause in the current downtrend. The Bulls needed a strong open today. The downward bias is still in progress. Keep shorts in the portfolio.
5/22 - Stock Market Comments
Where are crude oil prices going to? $150.00, $200.00 a barrel? When the experts start projecting huge prices and the actual price starts having big moves in the overbought area, start looking for a reversal. The markets sold off hard on Wednesday, bringing the Dow back to the 50 day MA. Watch to see if there is some support in that area today. Otherwise the downtrend is obviously in progress. Have some short positions in the portfolio.
5/21 - Stock Market Comments
Crude oil prices appear to be the forefront concern today, whereas crude oil prices have been increasing for the past month. Tuesday's pullback from the 200 day moving average was an indication the markets may have trouble moving higher with crude oil prices in this range. The Shooting Star signal followed by the bearish candle of Tuesday is an indication the Bears are starting to move in at these levels. The next few days of trading will indicate whether this market is going to come back down to the 50 day moving average or whether a sideways action may start.
5/20 - Stock Market Comments
The weakness on Monday afternoon created a Shooting Star signal in the Dow. With this occurring right at the 200 day moving average, the additional weakness seen in the markets this morning implie