Daily Market Comments - May 2011
5/30 - Stock Market Comments
Today's premarket futures showed enough strength to indicate a breach of the downtrending channel that has been in effect for the last month. There are many good breakout situations that should be bought into immediately.
5/26 - Stock market Comments
Yesterday the Dow was up strong but closed back below the T-line. Today's premarket futures indicate slightly weaker open. The T-line should still be a relevant resistance level until the stochastics get well into the oversold area. Continue to hold shorts until there is a definite bullish reversal signal. Continue to hold longs that are showing strength such as the gold and silver mining stocks.
5/20 - Stock market Comments
The indexes needed positive trading to keep them up above the T-line today. The premarket futures appear to be weaker. If the markets trade lower, that will provide evidence the T-line is acting as resistance and the down trending channel will be the predominant analytical factor. The trend will usually move in the direction of how they open after a Doji.
5/19 - Stock market Comments
The slight positive open indicated by the futures puts the NASDAQ right at the T-line. The Dow has only a little ways to go to get to the T-line. It will be important to see trading get through the T-line resistance area to indicate that the pullback is over. Weakness point into the close would reveal the probability of the Dow testing the 50 day moving average, indicating another week of a downward trend in the markets. However, there are still a good number of bullish charts that continue to show strength as well as bearish charts showing weakness. Unless there is a very strong move in the indexes, individual charts should be the primary analysis .
5/17 - Stock market Comments
The NASDAQ appears like it will open right at the 50 day moving average . Anticipate a day where the markets just kind of hoover, seeing at the 50 day moving average is going to act as support. The magnitude of today's trading range may be very minimal, however this will still allow for specific positions to move in the direction the charts indicate they are moving. Would be trading this market versus establishing long-term positions until a definite trend can be identified.
5/13 - Stock market Comments
Yesterday's positive trading brought both the Dow and the NASDAQ up above the T-line, this indicated that Wednesday's selloff day was merely a selloff day .this morning's premarket futures are opening slightly positive, demonstrating the Bulls are still participating in this uptrend. It would not be suprising to see a Doji type trading day on a Friday. This would not make it very conducive for active daytrading but it would still be in line with the slow uptrend scenario.
5/11- Stock market Comments
The markets may be looking for a day of rest after three bullish days, setting up another J-hook pattern. Consider any consolidations that does not breached the T-line an opportunity to add long positions. Currently the J-hook pattern is the predominant evaluation ,there are no reversal signals.
5/10 - Stock market Comments
Both the Dow and the NASDAQ closed just slightly above the T-line Monday. Tuesday's trading definitely requires bullish confirmation. The premarket futures continued to show more bullish strength. Be prepared to cover short positions that are acting to strong and adding long positions back to the portfolio . The Dow formed an inverted hammer signal on Friday which was confirmed on Monday. Today's trading should confirm positive trading above the T-line.
5/9 - Stock Market Comments
Although the market is showing a little strength this morning ,keep in mind that after a strong day on Friday ,both the Dow and the NASDAQ close back below the T-line .this means the downtrend is still in progress until there is a confirmed buy signal that closes the indexes above the T-line.
5/6 - Stock Market Comments
The job report, on the surface, looks very bullish. Today's premarket futures indicate an open in both the Dow and the NASDAQ back up to the T line. However, before going extensively bullish, watch to see what the markets do from that level. The European markets appear to be up steady this morning. This could be a positive bounce day in a downtrend. Lighten up on some of the short positions but be prepared to reestablish those positions if the buying pressure disappears this morning.
5/5 - Stock market copmments
Ever since the Doji's formed in the Dow ,and the left right bearish combo formed in the NASDAQ ,the markets have been in a decline, as anticipated. Today's premarket futures are indicating further weakness which illustrates the Dow not holding at the T line. Long positions should be showing compelling strength to continue to be held in the portfolio. Having short positions in the port folio should have already been established. This downtrend may be moderate in strength but will continue until a candlestick bullish signal appears and gets confirmed.
5/2 - Stock Market Comments
The enemy is killed! However, the markets are not showing exuberance strength on the open. This is good. It would be much better to see slow and steady strength building during the day. Continue to stay long, there is not anything to show any change of investor sentiment.