Daily Market Comments - June 2009
6/30 - Stock Market Comments
The strength of the market in the last few days once again reveals a slow sideways uptrending movement. These are market conditions where an investor needs to remain nimble, keeping an eye on support and resistance levels. Investor sentiment can obviously be considered just slightly bullish. This may be the conditions to expect going into the summer months. Take advantage of the information provided an individual stock/sectors.
6/24 - Stock Market Comments
On Tuesday the indexes formed Doji signals. Today we're seeing good strength in the premarket futures. It will be important how they close the market today. The NASDAQ will have to contend with the T-line. The Dow will as well. A close near the high end of today's trading range could form a Morning Star signal. Be prepared to cover the short funds immediately but also be prepared to buy them back if this market doesn't show strength going into the close. A strong day today would continue to make the sideways mode of the market trend the predominant prognosis.
6/23 - Stock Market Comments
The hard selling on Monday brought the Dow back down through the 50 day moving average. Both the Dow and the NASDAQ sold off after a Doji right near the T-line area. The NASDAQ still has a day or two to the downside before it reaches the 50 day moving average. Continue to hold short funds in the portfolio until a compelling buy signal indicates the downtrend is over. As long as the indexes close below the T-line, the downtrend has to be considered as being in progress.
6/22 - Stock Market Comments
The Dow kept pushing up against the T-line on Friday but eventually backed off. The NASDAQ traded up above the T-line from the open and for most of the day. However, the weakness in the markets late in the afternoon brought both indexes back below the T-line. This morning's weakness in the futures continue to produce the sideways movement of this market. Any buying in today's market should be done only with evidence of strong bullish action in specific stocks. Obviously this market should not produce severe selling to maintain the sideways motion. Watch the small biotech's, they have been acting well recently.
6/18 - Stock Market Comments
The markets didn't do anything on Wednesday that would have altered the downward direction. Today's premarket futures and opening are not showing any dramatic change of investor sentiment either. Anticipate more downside. However, the recent history of this market trend reveals any pullback is usually mild, followed by a slow rounding bottom action. Continue to keep the portfolio biased toward the short side but continue to watch the trajectory of this market. An indecisive trading day today would indicate a lack of severe selling, setting up for another rounded bottom action.
6/17 - Stock Market Comments
The signature of a downtrend is trading positive early in the day and selling off in the afternoon. We saw that occur on Tuesday. Be aware of that syndrome if the market opens slightly positive today and doesn't seem to want to go anywhere. Obviously with a downward bias for the next few days, it would be prudent to have some short positions in the portfolio or buy some of the short funds. Until a candlestick reversal signal appears, and with the trading occurring below the T-line, the downtrend has to be considered as being in progress.
6/16 - Stock Market Comments
The hard sell of Monday brought the Dow back into the 200 day moving average range. The NASDAQ gapped down below the T-line. The markets closing at the lower end of their trading range was an obvious divergence as to what it had been doing over the past two weeks. Any weakness or strength in the markets during the day had always come back and closed near the open of each day. Monday's selling changed that norm. This would indicate the possibilities of some weakness. However, the market has had a slow flowing uptrend with prices backing and filling. A Bullish Harami in today's indexes might illustrate the continued slows sideways movement of the market. Continue to close out the weak charts and maintain the strong stocks and patterns.
6/15 - Stock Market Comments
There appears to be great weakness in the European markets today, which is showing follow-through into the U.S. markets. The market will open lower. It will be prudent to lighten up on positions that have charts demonstrating some weakness. However, until the markets confirm there has been a change of investor sentiment, continue to remain relatively long. A close below the T-line is still a major confirmation that is needed to demonstrate that the slow uptrend in the markets is over.
6/12 - Stock Market Comments
The markets pulled back to their indecisive trading range after trading much stronger most of the day on Thursday. The sideways motion of this market is still in progress. The T-line is now coming up to the market trading. The past eight days of indecisive trading should show a breakout from these levels one way or the other. To keep things simple, the uptrend is still in progress until we see a close below the T-line. Continue to hold the strong sectors. The banking stocks are picking up strength.
6/11 - Stock Market Comments
Wednesday's trading produced another indecisive trading day. Both the Dow and the NASDAQ bounced up off the T-line. Today's premarket futures indicate a relatively flat open. After a series of Doji signals, be prepared for a break either to the downside or the upside. When that occurs, it will indicate which direction the market will move from here. Currently, there are still a good number of stocks/sectors that are showing extremely strong bullish indications.
6/10 - Stock Market Comments
It was another Doji day on Tuesday in the Dow, absolutely flat. However, that gave more clarity about what should happen next. The positive open today after a series of Doji signals indicates this market is going to go higher. Continue to hold long positions. Solar stocks are acting very well.
6/8 - Stock Market Comments
Friday's markets showed indecisive trading, not unexpected for a Friday during the summertime. Today's lower market open is consistent with the slow meandering uptrend. Look for the 200 day moving average to act as support today for the Dow. Expect a pullback to the T-line in the NASDAQ after Friday's Hanging Man signal. Until there is any definite breach of the moving averages, the uptrend is still in progress.
6/5 - Stock Market Comments
The Dow just pushed through the 200 day moving average on Thursday. The NASDAQ opened positive after the previous day's Doji. Today's futures are up strong. Currently there hasn't been any signs of a change of investor sentiment. Any positions that were stopped out on Wednesday and then continued higher on Thursday should be in the list of stocks to buy into. Continue to hold the strong positions.
6/4 - Stock Market Comments
After trading much lower on Wednesday for most of the day, the markets had strong buying on the close. That created an indecisive candle for both the Dow and the NASDAQ. Anticipate a couple of days of consolidation/sideways moving markets until the T-line catches up to the trading area. Remain long, and remain nimble.
6/3 - Stock Market Comments
Tuesday's trading held up well after the strong day of Monday. Today's weakness, reaction to economic news, should be considered backing and filling until this market demonstrates a severe sell signal. Continue to hold long positions provided they do not demonstrate confirmed sell signals.
6/2 - Stock Market Comments
Monday's strength in the Dow moved right up to the 200 day moving average. The NASDAQ broke out of a J-Hook pattern. Expect some consolidation today. However, both indexes have built up some juice in the stochastics. Anticipate more upside movement before any dramatic change occurs in investor sentiment.
6/1 - Stock Market Comments
After a fairly lethargic day on Friday, the Bulls came in on the close. Today's pre-market futures indicate a continuation of that sentiment. This could be the start of wave three attempting a test of the 200 day moving average over the near-term. Continue to stay long. Crude oil prices continue to show strength, watch the oil sector.