Daily Market Comments - March 2010
3/31 - Stock Market Comments
The market is opening weaker this morning but not in any magnitude that would indicate there was a change of investor sentiment. Continue to use the T-line as your confirming indicator. As long as the markets continue to close above the T-line, it has to be assumed the uptrend is still in progress. Watch the oil stocks.
3/30 - Stock Market Comments
Monday's positive trading, after three days of potential reversal signals, indicated the Bulls were still participating in this market trend. The uptrend is still in progress until a candlestick sell signal appears, followed by a close below the T-line. This current uptrend has solid strength in that the profit-taking continues to occur during the trend. Stay long and stay nimble.
3/18 - Stock Market Comments
The markets are in the overbought conditions but have not shown any sell signals. The uptrend is still in progress but be nimble. These market conditions allow individual stock charts to tell the story. Take profits when each chart says to take profits.
3/17 - Stock Market Comments
The market shows good strength in the fact that each day reveals profit-taking consolidation. Then the buyers step back in near the end of the day. The uptrend is stretched but has not shown signs of coming to an end. Be nimble and have both long positions and short positions in the portfolio.
3/15 - Stock Market Comments
Although the market traded slightly positive on Friday, there were numerous stocks showing weakness. Expect some profit-taking after 10 days plus days of positive training. Be prepared to take some profits if you start seeing selling of any magnitude coming into the market.
3/12 - Stock Market Comments
The markets continue to move up. Anticipate profit-taking in the very near future but if the financial stocks continue their strength, the uptrend should remain in progress. Remain long but with the idea the markets should be showing some profit-taking. Do not be hesitant to take some profits yourself.
3/10 - Stock Market Comments
The flat trading in the markets continues. It's probably waiting until the T-line catches up. Continue to hold long positions. Obviously there are still stocks moving up during these sideways markets. Continue to watch for the bank stocks to breakout.
3/9 - Stock Market Comments
Monday's trading was relatively indecisive, which was not unexpected after a couple of strong days in the market. Today's premarket futures are showing some mild selling on the open. Anticipate some profit-taking but the uptrend is still in progress until a strong sell signal appears. That could be possible today on a strong selling day, creating an Evening Star signal in the Dow. Stay long but be nimble.
3/8 - Stock Market Comments
The strong day on Friday provided additional evidence the J-Hook pattern target will be the recent highs. Expect some profit-taking during the uptrend but anticipate the uptrend testing the recent highs before any significant selling occurs. Watch for the banking stocks to break out of resistance levels today. If so, they should provide the strength for the next move in the markets.
3/5 - Stock Market Comments
The jobs report was not as bad as expected. This has provided additional strength to the uptrend. As of yet, there is nothing to indicate a change of investor sentiment. Continue to evaluate the uptrend as being in progress as long as it trades above the T-line. There is still plenty of profits to be made in this market condition.
3/4 - Stock Market Comments
The premarket futures are indicating another slightly positive open. There doesn't seem to be an expectation of any severe selling but there doesn't seem to be any aggressive buying either. If the markets continue their slow uptrend, this allows candlestick charts to perform on both the bullish and bearish patterns. Stay nimble and predominantly long. The uptrend is considered in progress as long as it does not close below the T-line.
3/3 - Stock Market Comments
Tuesday showed strength in the markets but it faded in the afternoon. Today's positive open indicates Tuesday's sell-off in the afternoon was probably profit-taking. If the J-Hook pattern persists, look for a test of the January highs. This would indicate another few days of positive trading. Stay predominantly long, but do not disregard charts that are showing good short positions. A few short positions in the portfolio would be a comfortable hedge.
3/1 - Stock Market Comments
The Dow in the NASDAQ showed indecisive trading on Friday. The Dow formed a Doji. This makes today's trading very simple. On the positive training, you want to buy immediately. Today's positive trading will be also adding confirmation to the J-Hook pattern forming right at the 50 day moving average for both indexes. Buy with confidence and use Friday's close as your stop.