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Daily Market Comments - November 2009


11/30 - Stock Market Comments

The selling on Friday closed to the Dow back below the T-line. The NASDAQ had opened at its lowest point but traded positive from there. Although the selling was news related, the candlestick charts still reflect what the investor sentiment is doing. Today's initial weakness continues to reveal the lack of bullish  participation. There were numerous Belt Hold type formations on Friday. Continue to hold long positions that reveal bullish chart action. Close out any positions with weak charts and keep a little more cash in the portfolio until the markets reveal where they want to go.   

11/25 - Stock Market Comments

The day before Thanksgiving usually does not have a great amount of volatility. The Dow is ready to nudge the upper trend channel one more time. A positive open for the NASDAQ gives the indication that it will try to test the recent highs over the next few days. Anticipate the majority of today's price actions in the markets to occur in the first hour. Maintain long positions and get ready to relax for the holidays.  

11/24 - Stock Market Comments

Monday's Morning Star signal in the Dow, forming on the T-line, brought the Dow back up to where it was nudging the upper trend channel line. There might a couple of days of lethargic trading until the markets decide whether they want to break through the upper trend line or prepare for a downturn. There needs to be a strong bullish stimulus to get the markets to break up through the trendline resistance level. Maintain long positions but be ready to take profits if the resistance level appears to act like the resistance level.

11/23 - Stock Market Comments

The Dow traded indecisively on Friday. Today, the strong open is forming a Morning Star signal on the T-line. The NASDAQ formed a Doji on Friday followed today by a gap up above the T-line. Cover short positions and add to the long positions provided this market doesn't sell off going into the close.      

11/19 - Stock Market Comments

on Wednesday the Dow closed as a Dragonfly Doji in the overbought condition. A lower open would be an indication of the end of the current uptrend, which is exactly what the pre-market futures were warning. Now watch the T-line.   

11/18 - Stock Market Comments

The market trend remains healthy. There is consistent profit-taking as the market moves up to higher levels. This is not a trend with great enthusiasm, just a solid steady uptrend. The prognosis remains the same. Continue to hold long positions that show chart patterns that continue to indicate strength.  

11/17 - Stock Market Comments

The Dow closed slightly above the upper trend channel. The NASDAQ closed at a recent high and gapped up to get there. The markets are in overbought conditions. There are a good number of stocks on the verge of breaking out through their recent highs. Expect some profit-taking today after Monday's big price move. Take profits in charts that are showing sell signals but continue to hold the strong chart patterns. The uptrend remains in progress until a strong sell signal appears. 

11/16 - Stock Market Comments

After the hard sell-off on Thursday, the markets could have sold off on Friday back to the T-line without anybody questioning the profit-taking. The bullish trading on Friday, followed by a positive open this morning, indicates the Bulls still want to put pressure on the upper trend channel. Continue to stay with the long positions as long as they don't indicate any candlestick sell signals. 

11/13 - Stock Market Comments

Although there was weakness in Thursday's markets, the Dow didn't illustrate any reversal signal. This makes the possibility of testing the T-line very viable. With the markets in the overbought condition, be prepared to take profits in some positions and reserving that cash for the charts that will turn bullish if the markets bounce up off the T-line.   

11/12 - Stock Market Comments

The Dow just touched the top of the trend channel on Wednesday before backing off. The NASDAQ appears to have a few more days before it reaches the top of the trend channel. Expect some profit-taking in this area but anticipate another week of indecisive trading before the top of the trend channel shows evidence of resisting the uptrend again. A bullish move through the top of the trend channel would change the characteristics of this slow, steady, bullish market. The strong charts should continue to show upside movement, although it may be slower. Take profits on positions that show true candlestick sell signals.       

11/11 - Stock Market Comments

The Dow will be testing the top end of the trading channel today. The NASDAQ still has some upside potential. Continue to stay long until there is evidence of a candlestick sell signal. The Bulls remain in control but both indexes are approaching the overbought condition. Be nimble but bullish.   

11/10 - Stock Market Comments

After the strength in the market over the past three days, expect some profit-taking today. Unless the sellers can close the markets more than halfway down Monday's candles, consider it profit-taking. The next upside target it is not too far away, nudging on the upper trend channel.  


 

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