Daily Market Comments - March 2011
3/30 - Stock market Comments
Both the NASDAQ and the S&P 500 use the T-line Tuesday as a support level. Both came back up strong enough to negate the previous days sell signals. Tuesday's positive futures indicate the uptrend is still likely in progress. Stay long and stay nimble.
3/29 - Stock market Comments
Be a little bit wary of the initial strength this morning. The shooting star signal in the Dow and the left/right combo in the NASDAQ are strong indicators there has been a change of investor sentiment. That change will only disappear an extremely strong buying Tuesday. Otherwise be careful of initial buying followed by more selling.
3/28 - Stock market Comments
Although the markets have been moving up for extended period of time, they are still not showing any great exuberance. Continue to hold long positions would be expectation of some profit-taking fairly soon. Monday's premarket futures are showing a slight positive open. Stay long until a definite reversal signal appears.
3/25 - stock market comments
The market has had a good strong move for the past seven trading days. Do not be surprised to see a day of backing and filling, on a Friday. However, there is still a very large number of stocks that have not shown any diminishing up bullish strength. Stay predominantly long. Take profits on individual positions where the signals show that it is appropriate. There will be others stock charts to move funds into with lower risk and higher upside potential.
3/23 - Stock market Comments
The premarket futures are indicating a flat open Wednesday, possibly another day of consolidation after the three strong up days last week in the Dow. Cntinued to remain long provided the markets stay above the T-line. Specific sectors are acting much stronger than the rest of the market. Use your candlestick scanning techniques to find and participate in those sectors .
3/22 - Stock Market Comments
The strength in Monday's trading move the Dow above resistance levels. The NASDAQ formed a kicker signal, opening on the T-line and moving higher. Tuesday's premarket futures do not show any dramatic profit-taking. Expect some consolidation but the overall market trend appears to be picking up bullish signals.
3/18 - Stock market Comments
The Dow formed a bullish Harami Thursday, the S&P 500 a Doji at the top end of the previous days trading range. The NASDAQ opened higher but started trading lower before the end of the day. This did not give a clear indication of the direction of the markets. Friday's open would indicate whether the Bulls or the bears were in control. The very positive premarket futures indicate the bullish Harami will be confirmed. Anticipate a bounce up to resistance levels. That should provide a day or two of bullish trading.
3/16 - Stock market comments
The premarket futures indicate a relatively flat open today. The knee-jerk reaction of yesterday may be over. Watch for an indecisive trading day, a Doji or a hammer day, letting the stochastics get well into the oversold condition, before the next moved to the upside. Let the strong price patterns, such as the J-hook, let you know where the money is coming back into the market. Watch the refining industry.
3/15 - Stock market Comments
The Japanese crisis is now breaking the bullish sentiment. The big gap down Tuesday should warrant taking some profits, maybe have to positions off on the short side. After the market opens, give it a few minutes to see if they continue selling or if it starts to bounce up. A bounce should be considered just that, a balance.
3/14 - Stock market Comments
The Japanese disaster is creating Dow in the markets ,this usually implies selling. Although the Dow and the NASDAQ showed some strength on Friday, the fact that the prices broke through support levels the previous day should still be the overriding factor. Anticipate more downside until we see stochastics get toward the oversold condition.
3/8 - Stock markets comments
The weakness in the Dow and the NASDAQ brought both indexes back down to the lower support level of a trend channel. Unfortunately the indecisive nature of this market is not showing any trend direction. A breach of the lower trend channel would make the downside trend much more plausible. A move back up into the trend channel would only make the prospects of moving sideways more evident. Until there is a better visual assessment of the market trend, the amount of funds exposed to the market should be reduced.
3/7 - Stock market Comments
Although the markets closed lower on Friday, after trading much lower, both the Dow and the Nasdaq closed above the T-line. stay with oil stocks
3/4 - Stock Market Comments
After the big selling day a couple days ago ,there was a Doji day. Expect somewhat the same in Friday's trading after the big bullish day Thursday. There may be some consolidation, but the morning star signal formed in the Dow Thursday with stochastics in the oversold area starting to come up makes a bullish rally more probable.
3/2 -Stock Market Comments
The hard selling Tuesday brought the NASDAQ down to the 50 day moving average and the Dow below the T-line. There were quite a few stocks that started breaking down dramatically. However, there were stocks such as the oil stocks and mining stocks that mostly held up well. Stay long in strong sectors while going short in weak sectors. Anticipate a few more days of weakness before both indexes find someplace to support.