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Daily Market Comments - August 2009

8/31 - Stock Market Comments

The NASDAQ formed a small bearish Belt Hold signal on Friday. The Dow had a few days of indecisive trading. This morning's weakness is a reaction to the big sell-off in the Asian markets. If today;s markets continue to drift lower after the first hour, and start to trade back below the T-line, take profits. The prevalent sideways motion of this market requires staying above the T-line. 

8/28 - Stock Market Comments

The markets bounced off the lower trading on Thursday using the T-line and the 20 day moving average as support. Today's trading continues to reveal the sideways investor sentiment. Nothing has changed. Continue to hold long positions in good chart patterns.   

8/27 - Stock Market Comments

The past few days have showed indecisive trading in the Dow and the NASDAQ. There has been no indication yet of a change of investor sentiment. The sideways motion of the market is allowing the T-line to catch up. Expect another day or two of indecisive trading, then see what happens when the T-line reaches the trading area. Until then, stay long in the charts that continue to show strength.   

8/26 - Stock Market Comments

The indecisive nature of the markets over the past couple of days is a short-term equilibrium. This would indicate a sideways moving market. Fortunately, as long as there is not a definite candlestick sell signal, investor sentiment will continue to provide a slow upward trend. This allows for the strong charts to continue. Keep a bullish bias in the portfolio but also be nimble.  

8/25 - Stock Market Comments

Although the markets gave back most of the gains they made early in the morning, there still isn't evidence that the sellers are taking control. It's merely profit-taking. Today's premarket futures indicate the Bulls are still in control. Remain in a bullish bias but be nimble.        

8/24 - Stock Market Comments

Friday showed very good strength in the markets. That strength appears to be following through today. The Dow chart pattern appears to be the same as this past April. That would imply there will be another week of positive trading. Anticipate some profit-taking but remain long. The J-Hook patterns are working extremely well, especially in the bank sector. Continue to take advantage of the signals and patterns but remain nimble.

8/21 - Stock Market Comments

The markets completely negated the pullback of Monday. The trading has come back up above  the T-line.  The same market action occurred back in April of this year. Consider the trend to be in a slow steady uptrend until a dramatic sell signal appears. Continue to utilize the information built into candlestick patterns. This is where you will make better profits during an uptrend. It's a Friday in the summer. Don't be surprised if there is some profit-taking today.

8/20 - Stock Market Comments

The employment numbers didn't knock the premarket futures down that much. Look for a relatively flat open. The positive trading of the previous two days hasn't been indecisive. They were relatively strong days. This indicates the investor sentiment has substantial bull sentiment still. Stay to the long side, but always remain nimble.       

8/19 - Stock Market Comments

Tuesday's bullish strength did not alter the downtrend, but it did indicate the downtrend may not be moving with any great force. Today's initial selling reminds us we are below the T-line. Remain nimble. Don't be afraid to put on positions and close them out immediately/same-day if they are not confirming with the trend.         

8/18 - Stock Market Comments

Monday's selling brought both the Dow and the NASDAQ down through the T-line. This indicates a change of investor sentiment. Remain with a relatively bearish bias until a strong buy signal reappears. There is the possibility of a  J-Hook pattern setting up in the markets, but until that can definitely be confirmed, use the short funds to take advantage of any downward trend over the next few days. The health care sector is showing good strength.     

8/17 - Stock Market Comments

The markets showed confirmed Hanging Man signals in both the Dow and the NASDAQ this past week. The T-line had been acting as support. Today's premarket futures shows severe weakness in investor sentiment. Be ready to close out long positions that have weak looking charts. Investor sentiment is obviously changing. Will this be a temporary pullback? That we do not know, so why risk holding long positions? Close out long positions that have shown weakness over the past few days of trading. Add some short funds to the portfolio. Positions can be bought back as soon as the signals indicate the pullback is over.   

8/12 - Stock Market Comments

Tuesday's selling brought both the Dow and the NASDAQ back below the T-line. However, the degree of urgency in Tuesday's selling did not indicate anything but profit-taking. Today's pre-market futures are basically flat. It would not be unusual to see a couple of days of consolidation and then the formation of a J-Hook pattern. Take some profits and be prepared to recommit to the market if a J-Hook pattern develops.


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