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Daily Market Comments - January 2011

1/31 - Stock market Comments

 Friday's selling was the first hard crack in this uptrend. However, it may have been overextended. Look for a balance on the open Monday, but any trading back down through the close of Friday will indicate the lack of full strength in this market. Any buying Monday should be done with the idea it the markets go negative, close out the positions. We need to see a bullish Harami to indicate this was just a one-day selloff on Friday.

1/28- Stock market Comments

The market still continue in a slow steady progress. Friday's premarket futures indicate a very flat opening. Do not be surprised to see some backing and filling on a Friday. Use the pullbacks on strong charts as an opportunity to add long positions. Crrently there are no market signals showing any change of investor sentiment.

1/27 - Stock Market Comments

The compelling bullish signal is occurring in the NASDAQ ,forming a J-hook pattern with Wednesday's trading coming up through the T-line. The Dow is still showing indecisive trading but has not yet shown any weakness. Stay long but remain nimble.

1/26 - Stock Market Comments

 Although the Dow closed very close to even Wednesday, it did form a hanging man /dragonfly Doji. The premarket futures were trading stronger earlier this morning but have slowly deteriorated heading for the open. Be careful of a potential open slightly higher with immediate selling off, creating a bearish engulfing signal following a Doji. Stay long provided the market does not go negative, at that point considered taking some long positions off.  

1/24 - Stock Market Comments

 The DOW being up 49 points on Friday while the NASDAQ was down 15 is definitely showing a divergence in the market trends. Monday's premarket futures are indicating an absolute flat open. This also is diminishing the ability  to project which direction the market wants to go from here. A sideways move the market will produce good long positions and a good short positions. Be selective and there does not need to be any aggressive positioning yet in these market conditions.    

1/21 - stock market comments

Friday's positive trading needs to be watched closely. Remember, in an uptrend the indexes would usually trade lower in the morning and then slowly come back up turn the rest of the day. Give the markets a little time this morning to see if these levels will hold.                               

1/20 - Stock market Comments

Wednesday the NASDAQ was the hardest selling index but it did not do a candlestick Sell signal.  the S&P 500 formed an evening star signal. Thursday's premarket futures indicate a weaker open .this will be an opportunity to take some profits off the table and maybe adding a short position or two.

1/18 - Stock Market Comments

The markets acted well going into the close on Friday. The premarket futures are showing a relatively flat open. This is a good indication there has not yet been any change of investor sentiment. Continue to own long positions. Be selective as to which sectors you want to participate.

1/13 - Stock Market Comments

The relatively flat open suggests there is going to be some consolidating today. If the market moves sideways, this will still spotlight which sectors are continuing to act strong.  Stay with those sectors. Until the markets close below the T-line, the uptrend is still in progress.

1/12 - Stock Market Comments

The longer this uptrend continues, the more confidence will keep continuing to build up. Continue to hold your log positions with the expectation a top will require a very exuberant candlestick reversal signal. Stay with the strong sectors.

1/11 - Stock market Comments

The futures indicate a positive open this morning, after a hammer type signal formed in the Dow Monday. This would bring the Dow back up above the T-line. Unless use a dramatic change of direction during Tuesday's trading, it has to be assumed the Bulls are still maintaining control. As this trend continues higher, additional patterns having the opportunity to breakout. AMRN is gapping up Tuesday, confirming a J-hook pattern.

1/10 - Stock Market Comments

 Friday showed weakness most of the day but closed strong at the end of the day. Monday's weakness is not unexpected as a reaction to Friday's weakness. It will now become very important as to which end of the trading range the markets finish  today. A close near the lower end of the range will signify the bears taking control. A close near the top end of the range, both the Dow and the NASDAQ closing up above the T-line, will be a good indication the uptrend merely went through some profit-taking. The nimble and be ready to shift portfolio direction.

1/06 - Stock Market Comments

 The markets continued to show steady strength. There is not any evidence of exuberance coming into the market yet. Continue to place trades in those strong sectors. When they start to fizzle, there are new sectors that are showing strength. This is the advantage of having candlestick signals to immediately reveal where money is moving from and into.

1/03 - Stock Market Comments

The sectors that are showing good strength Monday are those that continued to show good strength in the past three weeks of a slow steady rise in the market. The oil stocks are showing strength. The mining stocks are showing good strength, some of them got been up reasonably strong this morning.  Semiconductor's stocks and the banks are showing good strength. Monday is market should open strong, however it will need to remain strong throughout the day. If it closes near the lower end introduced trading range, that would indicate a short-term top. Stay long but staying nimble Monday.



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