Daily Market Comments - June 2010
6/29 - Stock Market Comments
The downtrend remains in progress, today's gap down amplifies that prognosis. If any of the short positions has a severe gap down, you might consider taking off at least half the position. Continue to hold the short funds until you see a strong reversal.
6/25 - Stock Market Comments
The failure of the 50 day moving average and the trading below the T-line makes the overall prognosis bearish. It would not be unusual to see some bullish bounce today, a Friday at the end of a hard selling week. Unless the Bulls are able to mount a very strong up-move, keep the portfolio positioning to the short side.
6/24 - Stock Market Comments
The Dow formed a Doji on Wednesday after a hard selling day. This usually indicates another down-day will occur, especially if the markets open lower today. Both the Dow and the NASDAQ are trading below the T-line. It has to be considered that the downtrend will remain in progress until we see a candlestick buy signal and a close above the T-line. Keep the short funds in the portfolio.
6/23 - Stock Market Comments
Tuesday's selling was a clear confirmation of the Doji in the Dow. The expected pullback was to the 200 day moving average and the T-line. But the Bears were able to push the markets down through that support level. Be prepared for more selling. Further weakness from these levels would make the downtrending channel the predominate analysis. It will be prudent to have some of the short funds in the portfolio.
6/22 - Stock Market Comments
After the Dow touched the 50 day moving average on Monday it started backing off. After the NASDAQ opened higher it backed off as well, but supported just above the T-line. Today's trading will be affected by whether it holds in this area while gaining strength for another attempt at the recent highs. Any weakness in this market should bring the Dow back down to the 200 day moving average. The stochastics are in the overbought conditions. Expect some consolidation.
6/17 Stock Market Comments
The Dow formed a Doji on Wednesday following a strong up-day. A positive open today should indicate more upside movement. The NASDAQ will be breaking out above the most recent peak if it opens positive. It is still working off the Kicker signal of last week. The NASDAQ should be moving up toward the 50 day moving average. Continue to hold long positions. Our recent recommendation, TPC, has an extremely strong bullish chart pattern.
6/16 Stock Markets Comments
The strength in Tuesday's trading brought the Dow up through the 200 day moving average. Expect some profit-taking today. However, anticipate the 200 day moving average now acting as support. The NASDAQ needs to stay above the 34 day EMA. Its next upside target should be the 50 day moving average. Remain nimble but expect an upside bias for the next few days.