Daily Market Comments - October 2010
10/28 - Stock Market Comments
The hard selling of Wednesday was followed by late afternoon buying, which brought the Dow back up above the T-line. After two days of indecisive trading in the Dow, anticipate Thursday's positive trading to persist going into the close. The opportunity to sell this market off was present over the last couple of days but traders could not sell it off. The NASDAQ revealed much more bullish resiliency. Stay long, stay nimble, and make good profits.
10/27 -Stock Market Comments
After trading off early in the day, both the Dow and the NASDAQ came up and closed near the top end of their trading ranges. The Dow is showing some indecisive trading but the stochastics aren't showing overbought conditions. Anticipate selling on Wednesday's open. The selling will become worrisome if the markets start trading back down through Tuesday's low.
10/26 - Stock Market Comments
The premarket futures are indicating a pullback of about 45 points in the Dow. This was somewhat expected after the Shooting Star signal of Monday. Be prepared to take some profits. However, it will be important to see if the markets hold up well after the initial selloff and then start coming back positive. The most important factor is still the T-line.
10/25 - Stock Market Comments
The trend will move in the same direction when the NASDAQ is up and the Dow is down or vice versa. This usually indicates money shifting back and forth versus money coming in or out of the market. Continue to hold long positions but the further this market remains in a steady uptrend, the more one needs to be nimble. Obviously, new positions put on at these levels are done so with more risk than positions put on at September 1st.
10/22 - Stock Market Comments
Although the downtrend moved positive on Thursday, it resulted in a relatively indecisive trading day. The NASDAQ showed a Spinning Top formation on Thursday, and traded in kind of a junkie manner over the past week. The underlying factor is that both indexes are still trading above the T-line. Any long positions established today will be done with the idea that if this market breaks down below the T-line, close out positions quickly.
10/20 - Stock Market Comments
Both the Dow and the NASDAQ closed below the T-line on Tuesday. The NASDAQ did so with an indecisive formation while the Dow had a very definite bearish candle. The Dow has since come up and tested the T-line this morning. It will be very important to watch what it does at the T-line. A failure of closing above the T-line on Wednesday or trading above the T-line during the day will be an important indication of whether Tuesday's selling was merely a down day in an uptrend.
10/19 - Stock Market Comments
On mornings where prices gap down, it can be discouraging that a significant amount of profits are given back before anything can be done about it. Successful investing involves taking action when you can take action. Is it time to sell on a gap down? Is it time to buy? Because the positions are already at lower levels, use the short term charts to see if any buying is coming in at these levels.
10/18 - Stock Market Comments
Friday's trading indicated no change of investor sentiment, the NASDAQ traded positive while the Dow traded slightly negative. The T-line still remains an important support factor. Continue to hold long positions but place your stops at logical points where it would indicate sellers are taking control, especially in those positions that are in the overbought condition.
10/14 - Stock Market Comments
Wednesday's positive trading after Tuesday's consolidation day was more evidence the uptrend was in progress. Today's open also reveals there hasn't been any major change in investor sentiment. Nothing has changed from the prognosis of the past week. Continue to hold long positions that are showing strength coming out of candlestick patterns.
10/13 - Stock Market Comments
Tuesday's backing and filling continued to add strength to the uptrend. The T-line once again showed support. The length and steadiness of this uptrend has allowed for many of the patterns to perform nicely. Continue to stay long, especially in the strong charts.
10/4 - Stock Market Comments
The indexes maintained their strength on Friday, making the T-line more compelling as a support level. Use the T-line as your main criteria. The sideways movement of the markets either represents a resting period during an uptrend or a reversal about ready to occur. Until the markets can close below the T-line, it has to be assessed that the uptrend is still in progress. There hasn't yet been a candlestick sell signal that has been confirmed.
10/1 - Stock Market Comments
Friday's positive trading makes the T-line more likely to act as support. Thursday showed the opportunity for a sell-off but it didn't confirm on Friday. Continue to hold long positions but a close below the T-line today would warrant adding short funds to the portfolio.