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Daily Market Comments - December 2011

12/21 - Stock Market Comments

After a very large trading day as we saw yesterday ,expect some profit-taking the next day. That does not necessarily mean not doing any buying, just wait until the five minute and 10 minute chart indicates the profit-taking is over. The NASDAQ formed a kicker signal yesterday. Yesterday was strength negates the downtrend and brings the whipsaw market mode back into the analysis.

12/20 - Stock market Comments

The magnitude of today's buying makes the downtrend very skeptical. If the markets close at the top end of their trading range today, the 50 day moving average will have more of a significant support in the Dow.

12/19 - Stock market comments

The premarket futures are showing a positive open for Monday morning. However, the magnitude of the buying does not yet indicate there is going to be any major change of investor sentiment, the trading range for the indexes still require a close above the T-line. Any buying executed today should be done so with a very short timeframe in mind. Any buying seen in the markets this morning need to remain going into the close.

12/16 - Stock market Comments

A slightly positive open today probably illustrates the possibility of a choppy/sideways move the market due to option expirations as well as allowing the declining stochastics to catch up to the market. Stay relatively short unless a huge bullish move appears in this market.

12/15 - Stock Market Comments

How would you trade a market that is down one day and up the next day ? Use very simple rules, the downtrend is still in progress until you see a candlestick buy signal and a close above the T-line. Any buying today should be done so with great nimbleness.

12/13 - Stock market Comments

The strong selling in the markets yesterday are providing a whipsaw scenario. However, the Dow closed right at the T-line. Positive trading is required in the markets today to continue the bullish T-line crunch. A close below the T-line today would be a strong signal that a double top has formed.

12/09 - Stock market Comments

The premarket futures are showing a slightly positive open today. After the selling in the markets yesterday ,the Dow closed right on the T-line, the NASDAQ closed right on the 50 day moving average. If the markets trade positive today, it would indicate yesterday's trading was merely profit-taking during an uptrend, another attempt at breaking out through the resistance levels would be viable. Further selling would breach the support levels, making Novembers lows a viable target.

12/08 - Stock market Comments

The indexes are resisting at obvious resistance levels .expect a few days of hovering and consolidating, but they need to stay above the T-line. Look for a T-line crunch, pushing the markets back up through in the next few days.

12/07 - Stock Market Comments

Wednesday's selling is more clearly defined with the NASDAQ showing indecisive trading once it reached the 200 day moving average. The probable set up for the next few days will be soggy/downward trading but still maintaining above the T-line.

12/06 - Stock Market Comments

With the Dow trading positive and the NASDAQ trading slightly lower, the implication is that there is no change of investor sentiment, just a shifting day in the markets. Profit-taking should be applied to positions where the charts are showing a confirmed sell signal.

12/02 - Stock Market Comments

More positive trading Friday, although the markets have given up a decent percentage of the gains Friday, the Bulls are still moving the market. The Dow is currently trying to push through a resistance level. It will be important to see the indexes closed near their upper end of their trading range.

12/01 - Stock Market Comments

Obviously a day of rest after a 490 point move in the Dow Wednesday. It would not be unusual for a pullback to test the. The next upside would be in the 12,200 area, the congestion area of a few weeks ago. We are in an uptrend unless Thursday's selling close is more than halfway down Wednesday's candle.


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