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Daily Market Comments - October 2011

10/28 - Stock market Comments

What is the conventional wisdom? October is usually a terrible month! This is the exact reason why you that the market tell you what the market is doing. After a nice steady rise for the past 30 days up to the 200 day moving average, expect some profit-taking today. It is a Friday.

10/27 - Stock market Comments

The 200 day moving average appears as if it will not act as resistance based upon the strength of today's premarket futures. If the euphoria is excessive after the market opens, use the five-minute and 10 min. charts for taking some profits. Things can be bought back once the market settles down. A solid close above the 200 day moving average would give the uptrend new life.

10/26 - Stock Market Comments

Tuesday's selling in the markets did not show a reversal signal, merely selling during an uptrend. Wednesday's premarket futures indicated a bullish open. Long positions can be maintained Wednesday provided this market does not close back below yesterday's close. The T-line is now close enough to the downside to potentially act as support during the day. Stay long but stay nimble.

10/17 - Stock Market Comments

The markets appear to be opening weaker today but not with any great magnitude. Both the Dow and the NASDAQ are in the over bought condition, making them much more susceptible to some profit-taking. Take profits in charts that are showing some weakness but do not be hesitant about getting back into strong charts if the profit-taking in a market soon disappears.

10/14 - Stock Market Comments

The current bullish move in the markets is relatively healthy in that every other day is a consolidation day, taking profits, followed by more buying. Be nimble, but expect the next moving average for both the Dow and the NASDAQ to be the next target. Conditions have got back to the overbought area, take some profits as a trend moves higher.

10/12 - Stock Market Comments

The markets opening up higher indicate the Bulls are still participating. Stay long but anticipate profit-taking as the markets are now climbing back up into the overbought conditions.

10/11 - Stock Market Comments

Monday's strong buying in the markets broke the trajectory of the dumpling top as well as the 50 day moving average. This now creates a new playing field for the market direction. Expects some profit-taking Tuesday but now the longer-term trend has shed a lot of the big downside move in the market probabilities. Anticipate the Dow using the 50 day moving average as support.

10/10 - Stock Market Comments

The premarket futures are showing a strong open on Monday morning. This should open the market near the high of Friday. This also still makes the 50 day moving average an important technical level. It will be important to see what the market does after the initial positive trading. Additional bullish trading after the opening session will indicate the 50 day moving average may not be acting as resistance. Selling after the initial morning rotation may indicate the 50 day moving average is acting as resistance.

10/06 - Stock Market Comments

The market appears to have another day to the upside, but be cautious, the market has shown that it will move three or four days up then followed by three or four days down. Keep your fingers very close to the trigger.

10/05 - Stock Market Comments

After being down most of the day, the buying came back into the market during the final 30 min. of the day. It may have been short covering more than bullish sentiment. Te dumpling top is still the predominant indicator. There is still could be additional buying without breaching the dumpling top curvature. Unless there is severe buying strength being exhibited in the markets, the dumpling top break down still should be the overriding factor .

10/03 - Stock Market Comments

The weakness in Friday's trading created a Bearish Engulfing signal. This after two months of a rounding top, Dumpling Top. This will be the area where the slow deterioration of investor confidence will start showing itself. Be prepared for a strong bearish downdraft. Add short positions.


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