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Daily Market Comments - August 2011

8/31 - Stock market Comments

 The rule of the Doji after a strong price move, followed by a Doji, the following day will usually move in the same magnitude as the day prior  to the Doji. That is fairly evident in today's premarket futures. Buying can be aggressive but with the caveat that the day should finish trading near the high end of the trading range. Probabilities are usually pretty high for that to happen under these candlestick conditions.

8/29 - Stock market Comments

 After Bernanke talked last Friday, the market ended its bearish pullback and started to move positive again. This was in  correlation with the double bottom reversal of a few days ago. The next target for the Dow is approximately the 1220 area, where it would be testing/reaching the last peak. Today's premarket futures in the war positive trading, a carryover of the European markets be an up strong.

8/26 - Stock Market Comments

 Yesterday's bearish engulfing signal in the Dow during the first part of an uptrend requires a positive open today, however the premarket futures are showing more weakness. This would indicate the uptrend has been awarded and that a potential pennant formation could be forming. This would imply a day or two to test the bottom of the pattern formation.

8/25 - Stock Market Comments

 Investor sentiment usually be confirmed when investment news hits the wires .  Warren Buffett is supporting Bank of America.  The bullish investor sentiment of the past few days continue to demonstrate the upward trend based upon that news. This makes the prospect of a double bottom in the markets more likely, the closer the markets get to breaking out over the last recent peak of two weeks ago. Stay long and tedious he a sell signal.  

8/24 - Stock Market Comments

The premarket futures are showing a flat market open today. It is expected that after a big market move, such as yesterday, there will be some consolidation. But now the question becomes whether a 300 point move in the Dow is a big market move or is it becoming a normal market move?  Expect some profit-taking today but the fact that the Dow, the NASDAQ , and the S&P 500 all closed above the T-line ,after a candlestick reversal signal ,is a very good bullish indication.

8/23 - Stock Market Comments

Yesterday the Dow formed an inverted hammer signal. This morning the premarket futures are indicating a positive open. This will show the bears the Bulls are back at it again. Be prepared to cover short positions if today's market shows additional strengths after the open. If the initial buying fails once again, the bearish J-hook pattern will continue to be the predominant analytical indicator. 

8/22 - Stock market Comments

A very bullish opening occurring this morning, a reaction to the results in Tripoli. Be careful of not reacting too fast. The stochastics are still heading down in the indexes after a gap down from the tee line last week. Wait to see what the market does after the open before making any major decisions.

8/19 - stock market comments

Both the Dow and the NASDAQ have created potential bearish J hook pattern setups. Keep in mind, trends move based upon investor sentiment. If the selling starts to accelerate, obviously remain short. The next downtrend could be the equivalent of the downtrend over the past few weeks. This could be wave three of the bearish J hook pattern. Watch to see what type of signals occur at the recent lows.

8/18 - Stock Market Comments

The magnitude of the bearishness of the premarket futures clearly indicates the tee line is acting as resistance for the indexes. Be ready to add short positions immediately to the portfolio. A gap down and the NASDAQ will demonstrate a strong force continuing to the downside.

8/17 - Stock market Comments

Although the DOW closed abonve the T-line yesterday, the Nasdaq formed a doji at the lower end of the previous days candle, right on the T-line. The DOW is opening higher today, but the NAS is opening slightly lower. An uptrned continuation needs to see strength in both indexes today. Any commitment of funds today needs to see strength on the close.

8/16 - Stock Market Comments

The strong oscillations in the Dow last week represented indecision between the Bulls and the bears. A major criteria for seeing a change of investor sentiment is usually extensive indecisive trading. That can be witnessed in a strong Doji signal in one day or extended over a one-week period as we have seen this past week. Now that the Dow has been able to move up above the T-line after three strong trading days ,today's weakness is probably profit-taking that will test the T-line. Watch to see if the T-line acts as a support level today.

8/11 - Stock Market Comments

Bottoming action is usually involve a number of days where the market does not know which direction it wants to go. The big price moves up and down in the markets illustrate on a day-to-day basis what a Doji illustrates on a one-day basis. Until the markets reveal the direction of the next trend, trading should be oriented towards scalping or sitting back in cash and relaxing until the market shows which direction it wants to go.

8/10 - Stock market Comments

 Obviously the market is revealing great indecision. It is doing it with huge up days followed by you down days. This is the same in decision that is revealed in a Doji but in the current market conditions, the indecision is on a day-to-day basis. Obviously this does not make for good portfolio positioning strategies. Stay on the sidelines or plan on scalping.

8/9 - Stock market Comments

 There appears to be the potential of a bounce on the open this morning. For traders, this allows for some quick profitable trading. However, in these type of market conditions, there is no method to predict which direction the trading will go by the end of the day. This is not a time yet to establish longer-term trades. There is not enough information yet to establish a reversal has occurred .any buying today has to be done on a daytrading basis. Watch your candlestick signals on the five-minute and 10 min. chart.

8/8 - Stock Market Comment

The only problem with a downgrade by Standard & Poor's is that the US government has never missed a payment. A strong gap down today after an extended downtrend would be the time to start watching for bullish evidence. Be nimble but be ready to buy on gap down prices.

8/4 - Stock Market Comments

The weight of the market continued to push the market down! This is the reason why a candlestick reversal signal in the oversold condition requires bullish confirmation. The premarket futures were an indication that the Bulls were not confirming Wednesday's hammer signal. However, a certain percentage of short positions in the portfolio would make Thursday's trading very comfortable. 

8/3 - Stock Market Comments

Markets usually move in the direction of how they open prices after a Doji. That was clearly evident following the long legged Doji in the Dow Tuesday. The markets did not hold at the 200 day moving average.

8/2 - Stock Market Comments

 The long legged Doji in the Dow yesterday illustrated great indecision. Yesterday's trading did not quite touch the 200 day moving average. Anticipate today's lower open creating the opportunity for both the Dow and the NASDAQ to test the 200 day moving average. This would also allow the stochastics to get into the oversold area. Buying can be done on positions that are showing very strong bullish charts but until there is a definite reversal signal in the markets, be ready to close out in the newly established  positions on the first signs of weakness.

8/1 - Stock market comments

 In principle, there has been an agreement. Obviously, the premarket futures are showing a good reaction. However ,the devil is in the details. It still needs to be passed. Any buying today should be done with the prospect that once the euphoria ends, the next hurdle will start being analyzed, be nimble.  


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