Daily Market Comments - July 2010
7/15 Stock Market Comments
The markets consolidated right at the moving averages on Wednesday. This was to be somewhat expected with stochastics now in the overbought conditions. Some profit-taking should be entering this market until the trend can rest for a few days. This may result in a slight pullback in the market but we would be suspect of whether it would be considered a trend reversal. Take some profits and look for opportunities.
7/14 Stock Market Comments
The Dow went right through the 50 day moving average on Tuesday, positive trading will take it up through the 200 day moving average today. The NASDAQ is still reaching toward the 50 day moving average. Stay long but expect some profit-taking as soon as the major moving averages are reached. A pullback from that level doesn't necessarily mean a trend reversal is occurring, it's just a pullback.
7/8 - Stock Market Comments
The Inverted Hammer of Tuesday was well confirmed by the Dow. The Dow closed above the T-line. There appears to be more bullish movement on the open today. The uptrend should be starting but use the T-line as an indicator to show support. We do not want to see the Dow close below the T-line. Any buying today still requires some nimbleness until the markets confirm they will stay above the T-line.
7/6 - Stock Market Comments
The Dow finished relatively strong on Friday. It had traded back to even just before the close on Friday. The final five minutes saw the Dow sell off 46 points. However, in either case, the Dow and the NASDAQ formed a relatively indecisive Doji type day. Today's positive trading could create a pop back up to the T-line over the next day or two. Short funds should be covered. Short positions should be covered if they are showing reversal signals. It is not unusual to see the markets trade well after everyone has had a pleasant Fourth of July weekend, which we hope you all had.
7/2 - Stock Market Comments
The job numbers didn't rattle the market one way or the other. Although there appears to be a slight bit of buying in the oversold area, the markets are not yet showing any dramatic change of investor sentiment. If there is evidence of bullish strength, especially in some of the short positions, take profits. The markets are in an area where the probabilities indicate at least a bullish bounce.
7/1 - Stock Market Comments
Wednesday's selling came mostly in the final hour. It brought the Dow right down to the lows of May and early June. The S&P and NASDAQ have traded below their lows for the last day or two. The markets are now in the oversold condition. There are good profits in our short positions. Do not be greedy, take off partial positions. The true reversal will make itself known with a strong candlestick signal. Until then, stay short.