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Daily Market Comments - November 2010

11/29 - Stock Market Comments

The hard selling in the Dow on Friday's half-day of trading was not fully recognized by the NASDAQ. Currently the Dow is trading between the 50 day moving average and the T-line. The NASDAQ is trading above the T-line and is continuing to show good strength. Both indexes need to show weakness concurrently to get a true indication that the Bears are in control. Stay long, stay nimble.

11/22 - Stock Market Comments

Friday held up well, keeping the Dow and the NASDAQ above the T-line. Today's trading is showing some valuable information. Although the Dow is down 80 points, the NASDAQ is trading flat. This doesn't represent a major change of investor sentiment. Continue to hold long positions that are showing good patterns.

11/16 - Stock Market Comments

The Dow formed a Doji on Monday after it failed at the T-line. It needed to open positive on Tuesday to show that the uptrend is still in progress. The lower futures indicate a much lower open. Start closing long positions.

11/15 - Stock Market Comments

On Friday the Dow closed below the T-line but appeared to have bounced up off the 20 day moving average. The positive trading on Monday requires the same vigilance as when an uptrend experiences an early morning sell-off but then starts climbing before the end of the day. Any purchases on the long side on Monday should be closed out if the markets start going negative again.

11/12 - Stock Market Comments

The premarket futures are showing weakness this morning but not to the magnitude that it is illustrating a change of investor sentiment. Instead, it looks more like profit-taking on the open. Be prepared to take some long positions off the table provided the market doesn't show any strength after the first 45 minutes or so.

11/10 - Stock Market Comments

The hard selling of Tuesday and the soft selling on Wednesday is bringing the Dow back down to the T-line exactly. The NASDAQ is just approaching the T-line. The market is in a condition where lightning up on the long positions is prudent. If the market appears to hold at the T-line, positions can always be bought back.

11/9 - Stock Market Comments

Monday's slight weakness in the market appeared to be profit-taking. There was no evidence the Bears were trying to take control of the trend. It would not be unusual for the market to move sideways until the T-line catches up. Remain long and remain nimble, there are still many positions that will move in a strong bullish direction.

11/8 - Stock Market Comments

The markets held up well on Friday after the strong move on Thursday. It's not surprising to see some initial profit-taking today. Watch the indexes to make sure they aren't showing rampant selling. As usual the uptrend has to be considered in progress as long as it doesn't close below the T-line. Take profits where individual stock charts are showing weakness.

11/3 - Stock Market Comments

The election results were somewhat anticipated. There are a few seats that could still make the Senate very equalized if they go to the Republican side. It appears as if the market is cogitating what they had expected for the past two months. This is evident in the lack of enthusiasm one way or the other in today's trading so far. Be nimble today.

11/2 - Stock Market Comments

After the Dow's long-legged Doji on Monday, it was imperative to see which direction the market would go this morning. Obviously, the Bulls are still in control. Maintain long positions but the important information will come from how the markets trade on Wednesday when the results of the election are in. Gridlock is your friend.


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