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Daily Market Comments - December 2010

12/30 - Stock Market Comments

The Dow futures are down 11. NASDAQ futures are up 1. This indicates another relatively indecisive trading day. More than likely this mode of market movement will continue right through to the end of Friday. Stay long, but accumulate some cash for an expected strong market move one way or the other on Monday.

12/23 - Stock Market Comments

Obviously, today's trading is going to be very light. That reduces the possibility of any great price movement. However, that doesn't eliminate the possibility completely. Any weakness in individual positions should be used as an opportunity to add some cash to the account. There will be no way of telling what the retail figures might be on Monday, creating an opportunity one way or the other in retail stores. Merry Christmas!

12/22 - Stock Market Comments

The market showed a different sentiment on Tuesday. It opened positive and stayed positive all day long. There wasn't a major pullback during the day that required buying going into the close. This may be an indication that investor confidence is building up after the sustained uptrend. This is your typical Santa rally.

12/20 - Stock Market Comments

The market still continues to show slow consistent uptrend. The same investment scenario remains in place. Until there is evidence of a severe sell signal or a change of investor sentiment, continue to hold long positions.

12/16 - Stock Market Comments

Today's premarket futures indicate once more that there is no driving force to the downside or the upside. Anticipate some more relatively flat trading. Obviously, the magnitude of profits in these market conditions is diminished. But there are still chart patterns that are moving extremely well. Stay with the probabilities.

12/15 - Stock Market Comments

Last week the Dow traded flat while the NASDAQ traded slightly positive. This week the Dow is trading positive while the NASDAQ is trading flat. Although the premarket futures appeared to be slightly negative this morning, it does not have the magnitude that would indicate any change of investor sentiment. Until both the Dow and the NASDAQ form a severe candlestick sell signal, and remains above the T-line, consider the uptrend as still being in progress.

12/09 - Stock Market Comments

The indecisive nature of the trend over the past few days gave the impression the markets were coming back to test the T-line. Thursday's positive open indicates the slow uptrend may still be the predominant direction. To date, the flat trading market has been able to produce big gains in stocks that are showing strong price patterns. Nothing yet reveals the Bears are trying to take control. But remain nimble.

12/08 - Stock Market Comments

After Tuesday's initial buying, the Dow finally closed as a Shooting Star/Doji. Wednesday's weakness is expected after a Shooting Star signal in the overbought condition. Currently, the magnitude of the selling doesn't indicate any huge evacuation of the market. This would imply a mild pullback to the T-line or a sideways movement until the T-line catches up. If Wednesday's selling becomes extensive, continue to close out long positions that are indicating profit-taking.

12/07 -Stock Market Comments

The strength in Tuesday's market may provide some opportunity to take partial positions off. Prices gapping up in the overbought condition warrant profit-taking. You can diminish your fear of selling too early by taking one half of a position off and let the other half ride. If the market does continue higher, use the funds that you have freed up to find positions that may just be breaking out of patterns.

12/06 - Stock Market Comments

The strong move in the Dow last week continued right up to the close of Friday. This magnitude of move usually warrants some profit-taking but it hasn't entered the market yet. There will be profit-taking but continue to hold long positions until there are severe sell signals in the market indexes. Friday's trading developed a potential Hanging Man signal. However, note where the stochastics are.

12/01 - Stock Market Comments

The market is still in a whipsaw action. However, today's strong trading, if it stays strong going into the close, produces more credence to the bottoming action scenario. These market conditions make it difficult to put profits in the account. Getting out of positions when it's time to get out and getting back into positions when it is time to get back in is still the proper method of investing. The expectations of small losses during a whipsaw market should be the same as the expectations of making money when an uptrend or a downtrend is consistent. The advantage of using the patterns is that the losses will usually be smaller than the gains. Obviously, the short recommendations would not have been implemented today.


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