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Daily Market Comments - June 2011


6/30 - Stock market Comments

 The markets showed an obvious trend indication with yesterday's positive trading, breaking the Dow and the NASDAQ up into new recent high territory. This provided clear indication that the recent resistance levels were not acting as resistance anymore . The positive trading in today's premarket futures indicate the Bulls are still participating. Expect some profit-taking fairly soon but consider it profit-taking.

6/28 - Stock market comments

 After the markets have been whipsaw owing like they have been for the past three weeks ,yesterday's bullish Harami that formed in the Dow it also closed right at the T line. Today's trading requires bullish confirmation which can be seen already in the first few minutes of trading. Long positions can be added to the portfolio but if this market turns back around and heads negative on the day, any new long positions need to maintain a bullish chart. Any signs of weakness would require closing out the positions immediately.

6/27 - Stock Market Comments

Although the premarket futures are opening relatively flat today, Friday's selloff indicated the bottoming action of this market was not over. There might still be a good possibility of a double bottom. Any major positioning done in this market condition should be put on with a very short leash.  There is an underlying element of bullishness in the biotech area.

6/24 - Stock market comments

 After the hard selling early yesterday, the buying came back into the markets during the final hour. This created a hammer signal in the Dow, bottoming at the same level the Dow bottomed two weeks ago. Today's positive open confirms the hammer signal, still making the uptrend the predominant scenario. Add long positions. There are many good positive charts right now.

6/21 - Stock Market Comments

 The Dow has shown some quiet  consistency over the past three days of trading, demonstrating the Bulls are dabbling their toes back in the market. Yesterday's trading brought the Dow back up through the T-line . The NASDAQ did not reveal any great reversal signal but did start following the Dow's lead. Today's premarket futures indicate another mild positive open. This bottoming action should now be making the short positions very uncomfortable. The current program for the portfolio should be closing out short positions as they are  needed and adding long positions. However,  the slow rounding bottom of this possible trend reversal is not requiring any rapid decision-making.

6/16 - Stock Market Comments

 When the markets start showing adaily whipsaw action, that indecision is as relevant as seeing a Doji. A big price move up one day followed by a big price move down the next day followed by another big up move reveals there is indecision between the Bulls and the bears. These market conditions usually occur just before a market reversal. Watch individual charts for signs of strength for covering short positions and starting to add long positions. The oversold conditions of the market make the upside more likely.

6/14 - Stock Market Comments

With both the Dow and the NASDAQ in the oversold condition, bullish opens such as today reveal the changing sentiment. The NASDAQ formed a Doji that bounced off the 200 day moving average yesterday. A positive open today becomes a compelling reason to start taking profits on short positions and adding to long positions.

6/13 - Stock Market Comments

 The hard selling of Friday completely negated the bullish trading of Thursday, the Dow could not come back up through the T-line. Today's positive open still requires a significant reversal signal to indicate a change of investor sentiment. The indexes are showing oversold conditions ut the down trending still is the predominant analysis. Stay predominantly short until there is a signal that would indicate the trend has reversed.  It would not be unusual to see a few days of oscillating trading if the markets are trying put in a bottom.

6/9 - Stock Market Comments

Wednesday's strength needs to see bullish confirmation today .the NASDAQ formed a bullish Harami/Doji. It requires a positive open today to show bullish confirmation. Any weakness in the markets today would negate the potential strength of Wednesday's signals.

6/2 - Stock Market Comments

The markets had a great potential for breaking out into new territory yesterday, but the immediate weakness on the open should have kept any  aggressive buying from occurring. The result of the day indicated the downward trend channel was still the primary analytical indicator. Now look for a test of the lower end of the trend channel. The markets are demonstrating they want to stay in the downward trend channel, which should make trading very difficult until the trend channel is breached one way or the other.

6/1 - Stock Market Comments

Yesterday's positive trading took both the Dow and the NASDAQ up through the downtrending channel. The premarket futures are indicating some profit-taking from yesterday's strong move. However, if the trading cannot get back down through the top of the downtrending channel, expect more upside once today's profit-taking is over.

 


 

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