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Daily Market Comments - October 2009


10/27 - Stock Market Comments

Monday was a hard reversal day that confirmed that the Dow was trading below the T-line. Be careful of any bullish trading. The Bulls have to prove they can bring this market through the T-line with good conviction. Until that time, use short funds and short positions in the portfolio.     

10/15 - Stock Market Comments

After the extra buying push to get the Dow up over 10,000, expect some profit-taking early today. The important part of today will be how the markets close. As of now, there hasn't been anything that shows a change of the bullish investor sentiment. Stay long but be nimble.

10/6 - Stock Market Comments

The Morning Star signal in the Dow right on the 50 day moving average made it fairly obvious the buyers were coming back into the market at that support level. The strength in today's premarket futures was further confirmation. Long positions have now been reestablished. Anticipate more upside movement but continue to use the T-line as your trend support.

10/5 - Stock Market Comments

The positive trading on today's open provides more evidence the 50 day moving average may be acting as support. Be a cautious buyer, this market needs to close above the 50 day moving average for the next day or so until the stochastics get in the oversold area. There will be many positive trading stocks if this market creates a congestion area at these levels.   

10/2 - Stock Market Comments

As anticipated, the sellers are still in this market this morning. It appears as if the Dow could move immediately to the 50 day moving average. Watch for a bounce from that level, everybody else will be watching. The short funds should be in the portfolio, but be nimble once the next support level is reached. Be ready to participate in J-Hook patterns.     

10/1 - Stock Market Comments

The Bulls needed to see a positive open today after the recovery/Hammer type signal on Wednesday. With the Dow backing off 60 points on the open of today, it's still trading in the range that would indicate a sideways action of the market trend. Both the Dow and the NASDAQ trading below the T-line makes the analysis fairly simple, the downtrend is still in progress. Position the portfolio accordingly, which may require putting some short funds in the portfolio.    


 

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