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Daily Market Comments - July 2011

7/28 - Stock Market Comments

 Be careful of a positive open during a downtrend. Any buying on the initial strength should be watched diligently. If the market indexes start heading after a positive open, add short positions. Long positions can consist of Chinese companies. There will not be any great urgency to buy stock before the debt ceiling issue is resolved.

7/27 - Stock Market Comments

Wednesday the NASDAQ has gapped down. This is confirming the weakness seen in the Dow for the last three days. Unfortunately, a sideways moving market is going to produce down days and up days but not in an orderly fashion.

7/25 - Stock Market Comments

 Although the market trend bias is positive, getting a full head of steam is going to be difficult until the spending situation of the government is resolved. Unfortunately, even after a plan is finally decided upon, the ramifications of that plan will not likely be understood for many months. Continue to hold long positions provided they are not showing a reversal signal. This market may remain choppy while earnings are being reported and the spending issue is being resolved. This will be a time frame for the strength of a candlestick signal/pattern becomes more relevant for individual stock positions.

7/21 - Stock Market comments

Yesterday the Dow formed a Doji after a strong day. The positive premarket futures indicate the Bulls are continuing the trend .there is a possibility of another strong bullish day in the markets. The NASDAQ would confirm that possibility due to the kicker  signal  that confirms a Jay hook pattern in the making. Everybody should have one or two oil stocks in the portfolio.

7/20 - Stock Market Comments

Tuesday's strong market move provided the information required to show a change of investor sentiment. After about a week of oscillating, The Dow broke up through the top of the resistance level, the tee line. The NASDAQ formed a kicker signal yesterday, continuing a Jay hook pattern. Today's premarket futures are showing bullish follow-through. Many short positions should have been stopped out yesterday while establishing long positions. Remain relatively long with expectation of profit taking but the trend should have an upward bias.

7/18 - Stock Market Comments

The Dow was in a position where making a test of the 50 day moving average was a likely result. It is just now move back to that area. The NASDAQ also has the opportunity to come back and retest the 50 day moving average, allowing the stochastics to get back into the oversold condition. Remain relatively heavy in cash until the 50 day moving average acts as support or was just the first downside target.

7/5 - Stock Market Comments

Friday's buying continued an exceedingly strong move for the market. Tuesday's premarket futures do not show any great strength but do not show any immediate profit-taking. Although the indexes are now in the overbought condition, continue to stay long until there is a sell signal that would represent a change of investor sentiment from this current bullish move. That may seem like very simplistic instructions but that is a benefit of candlestick analysis, it makes things very simple.


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