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Daily Market Comments - July 2009

7/29 - Stock Market Comments

Until the markets form a confirmed candlestick sell signal, continue to stay with a bullish bias. On Tuesday, the Dow traded lower most of the day but came back up to the top of the trading range at the end of the day. With the Dow closing slightly negative and the NASDAQ closing positive, it demonstrated that money was not leaving the market. Today's opening selloff has to be watched with the anticipation of the market close illustrating what is going on in investor sentiment. Currently, the sideways move of the past few days merely represents a resting period during an uptrend.

7/28 - Stock Market Comments

The expected profit-taking is evident this morning. Obviously, take profits in charts that look weak, but look for the strong charts to remain relatively strong. Look at some of the short positions we have recently recommended as a hedge.

7/24 - Stock Market Comments

Expect some profit-taking today. Microsoft earnings were a little bit disappointing. Having been bought with the NASDAQ trading positive 12 days in a row, some profit-taking has to be expected. However, until it becomes clear that there is definite selling in this market, a change of investor sentiment, continue to remain predominantly long. This allows for a few short positions to be in the portfolio.

7/23 - Stock Market Comments

Although the Dow traded lower on Wednesday, the NASDAQ closed higher. This is an obvious indication that money was just shifting versus coming out of the market. As of yet, there is no sell signals in the market. Take profits where individual stock charts indicate weakness. Overall, continue to stay long until a dramatic sell signal appears.

7/22 - Stock Market Comments

Both the Dow and the NASDAQ are in overbought conditions. Be prepared for some profit-taking out of obvious candlestick patterns. The more this market continues to show strength, the better the probabilities more patterns will show good gains. Be nimble.

7/20 - Stock Market Comments

The markets showed good strength on Friday, a day where profit-taking would well have been anticipated. Today's market open continues to reveal strength but remain cautious, the markets are now well into the overbought conditions. There are still some good patterns that can be very profitable. Look for the option trading recommendation in the member area.

7/16 - Stock Market Comments

With the strength of Wednesday and the past three days, expect some consolidation today. Take some profits in the big percentage movers but be ready to recommit funds upon seeing the consolidation finishing. The past three days of trading have pretty well negated  the Head and Shoulders analysis.

7/14 - Stock Market Comments

After the strong day Monday, it is not unusual to see some consolidation. All the indexes created a Cradle pattern on Monday. Anticipate more upside movement over the next few days, at least a test of the 50 day moving average in the Dow. Buy the strong charts, there are many in the financial area and the oil area.

7/13 - Stock Market Comments

The past three trading days illustrated indecisiveness, Doji signals in a small Hammer. Today's premarket futures reveal mild bullishness. Stochastics are in the oversold condition. This is a good set-up for a possible bounce back up through the T-line. Keep in mind, a true trend reversal will require a close above the T-line. Establishing long positions here will still require  nimbleness.

7/10 - Stock Market Comments

Both the Dow and the NASDAQ formed Doji signals on Thursday. A reversal of the downtrend required bullish confirmation today. However, the premarket futures are indicating more weakness. The downtrend remains in progress until a confirmed buy signal appears, including a close above the T-line. Use the short funds.

7/9 - Stock Market Comments

On Wednesday the Dow formed a Doji. The NASDAQ formed a Hammer signal. Today's positive premarket futures indicate a bounce. This will warrant closing some of the short funds. However, be prepared for a possible bounce versus a full-scale reversal. The NASDAQ stochastics have not quite gotten to the oversold conditions. 

7/8 - Stock Market Comments

The bearish tone of this market will remain until a strong buy signal appears. Today's premarket futures do not indicate any change of the current investor sentiment. Maintain the short funds and short positions until there is a change of investor sentiment.  

7/7 - Stock Market Comments

The markets did not appear to want to move dramatically on Monday. The Dow supported at a previous support level. The NASDAQ formed a Doji after touching the 50 day moving average. Today's premarket futures indicate a lack of buying or selling pressure. Be nimble. The downward bias is still the predominant direction until a confirmed buy signal appears.  

7/6 - Stock Market Comments

The severe weakness in Thursday's trading brought the Dow back to a major support level. The NASDAQ gapped down from Wednesday's Doji. This is a strong sell signal. The 50 day moving average is the next likely target. Expect continued weakness today as well as for the next few days. Add more leveraged short funds to the portfolio. Close out long positions that are not maintaining strength.    

7/2 - Stock Market Comments

Today's weakness followed Wednesday's strength, which followed Tuesday's weakness. This does not change the prognosis one single bit. Expect a sideways motion to this market until investor sentiment shows anything different. Use today's trading to identify which positions are showing weakness. They can be closed going into the long weekend.

7/1 - Stock Market Comments

The premarket futures are demonstrating strength this morning. This makes the market trend prognosis consistent with the past few days/weeks/months trend analysis. The sideways market is still in progress. Continue to buy stocks that are in strong sectors.


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