Daily Market Comments - December 2009
12/30 - Stock Market Comments
Today's trading will still not be influenced by any large volume. Tuesday's indecisive trading will probably be mirrored today. The big money decisions should not occur until after the first of the year. Hold positions that continue to confirm patterns.
12/29 - Stock Market Comments
The positive trade in the premarket futures indicates there hasn't been any dramatic change of investor sentiment. Continue to hold the long positions that are acting well, especially those confirming price patterns. Although the volume will be relatively low in the next few days of trading, there will be individual stocks that will produce extensive profits.
12/17 - Stock Market Comments
The Dow traded indecisively on Wednesday, right on the T-line. Today's weakness reveals the T-line is not acting as support and the trend is moving in the direction of how they opened it after the Doji of Wednesday. If the market closes weak or continues to show weakness in the late afternoon, close out long positions that are showing weakness and add some of the short funds.
12/16 - Stock Market Comments
Tuesday's trading showed some profit-taking but it didn't alter the slow uptrend scenario. The Dow showed some weakness at the previous top resistance area. It needs to stay above the T-line to keep the bullish trend in progress. A close below that level today would indicate a possible pullback to the bottom of the trend channel. Today's positive open indicates the possibility of the T-line acting as support. Remain long, but keep your finger on the trigger.
12/15 - Stock Market Comments
The positive trading on Monday brought the Dow up to recent highs. The NASDAQ closed in new high territory. This morning's premarket futures indicate some profit-taking. Expect more upside movement but continue to be nimble.
12/14 - Stock Market Comments
The strength in Friday's trading moved the Dow up to the Dumpling Top trajectory. If the strength remains in today's market, the Rounding Top formation will have been breached, giving the prospects of a wave three starting. Continue to hold long positions, but we definitely need to see the indexes close in their upper trading ranges today.
12/10 - Stock Market Comments
The positive trading of Wednesday in the markets, followed by positive trading today is consistent with the up and down trading found in a Dumpling Top pattern. Positive trading for the next day or so needs to be watched for resistance at the rounded curving top of this market. Long positions will continue to work but be more diligent when looking to take profits.
12/9 - Stock Market Comments
Tuesday's sell-off further confirmed the Dow forming a Dumpling Top pattern. This would indicate there is not a severe selling pressure on the market but a slow drifting downward bias. View any positive trading with a little suspicion. The downward drift of this market should be the predominant direction unless something stimulates the market to a dramatic upside move. However, the upside move would have to be substantial.
12/8 - Stock Market Comments
The opening weakness is giving the Dow more Dumpling Top symptoms. The NASDAQ gapped down below the T-line after a Doji. Unless there is a dramatic reversal to the upside today, the indexes will be showing a bias toward the downside. It may not be a strong bias, but it will indicate prices to be moving lower. Obviously, if the Dumpling Top pattern gets to completion, expect a strong move to the downside. Anticipate taking profits or closing long positions that are showing weakness.
12/7 - Stock Market Comments
The indexes had the opportunity to move above their current trading ranges on Friday but sold off late in the day. This put their trading back into the trading range. The sideways motion of these markets continues to be the predominant trend force until there is a dramatic move out of the current trading range one way or the other. However, this still provides the opportunity to make money in the charts that are showing good buy signals or bullish chart patterns.
12/3 - Stock Market Comments
The Dow formed a Doji on Wednesday. This was not unusual after a strong move the prior day. A positive open today indicates the potential of another strong up-day. Eventually a breach of the upper trend channel could be the stimulus for a strong rally. Maintain long positions. The banking stocks should show strength today.
12/2 - Stock Market Comments
There should be some profit-taking after the strong day on Tuesday. The strength in Tuesday's trading brought both the Dow and the NASDAQ well above the T-line. The gap up in the NASDAQ created an Island Reversal situation, so expect more upside movement. If the Dow breaks through the upper trend channel, that could create a very strong rally. The Dow formed a Morning Star signal on Tuesday, which usually indicates a slingshot effect to the upside.
12/1 - Stock Market Comments
The Dow formed a small Spinning Top on Monday, showing indecision after the pullback. Today's positive open clearly indicates the lack of bearish pressure on this market. The strong open has brought both the Dow and the NASDAQ back up above the T-line. The gap up in the NASDAQ is showing a potential little Island Reversal. Maintain long positions.