Daily Market Comments - August 2010
8/31 Stock Market Comments
The failure of the Dow to get up through the T-line indicates the downtrend is still in progress. Tuesday's slight weakness in the futures still confirms the downtrend. The lack of bullish sentiment is obvious. The lack of panic selling indicates the bottom is not yet here. Any short positions added on Tuesday should be done with nimbleness.
8/24 - Stock Market Comments
The magnitude of Wednesday's selling will probably create a gap down in the market indexes. When this occurs in the oversold condition, it is prudent to start taking profits on the short sales. If there is extensive selling early in the day, start watching for a potential reversal signal.
8/20 - Stock Market Comments
The weaker open on Friday was expected after Thursday's failure of the T-line. Expect a few more days to the downside. Recent lows could now be the viable target. Add short funds to your portfolio.
8/16 - Stock Market Comments
The lack of pre-market futures movement gives an indication the 50 day moving average might have relevence as far as acting as support. The downtrend requires a breakdown through the 50 day moving average today.
8/9 - Stock Market Comments
After the market sold off hard on Friday and then recovered to fairly close to even provided significant information. The Dow and the NASDAQ didn't close below the T-line. The positive open this morning is an indication that Friday was merely a profit-taking day. Any positions that were closed out on Friday may need to be re-addressed if they open positive this morning. See what the charts look like. As of now, the simple rule of the T-line indicates the uptrend is still in progress.