Daily Market Comments - May 2012
05/31 - Stock Market CommentsThe current sideways motion of this market is revealing more whipsaw action. The 200 day moving average is to close to ignore. Anticipate more waffling over the next few days, creating an opportunity for the markets to bounce off the 200 day moving average.
05/30 - Stock Market CommentsTuesday the trading brought the markets up above the T-line. However, Wednesday's trading has taken the markets back below the T-line and with force. The NASDAQ get a kicker signal to the downside. The uncertainty of the markets right at the T-line makes the remaining amble very important.
05/29 - Stock Market CommentsThe difficulty the market had of getting up through the T-line last week was quickly dispelled on Tuesday's trading. Both the Dow and the NASDAQ have moved through the T-line without any hesitation.
05/25 - Stock Market CommentsToday's weakness in the premarket futures is making it more evident that this week's non-signal bounce was merely a bounce to the T line. A weaker trading day today would still make the 200 day moving average the next viable target.
05/24 - Stock Market Comments
Thursday the markets are wildly unexciting. The T-line is still a very strong factor for the market trend. If it cannot get up above the T-line during the next couple days of trading, look for a another strong potential downside.
05/23 - Stock Market Comments
It is very flattering with the number of e-mails expressing admiration on how accurately we have been able to call the market trend, even the exactness of bounces during the trend. This would be great cause for patting one's own back.
05/22 - Stock Market Comments
Although the markets traded positive yesterday, they did not produce a reversal signal. The first resistance level will be the T line. Watch carefully to see if they are able to get the markets up through the T line.
05/21 - Stock Market Comments
Once again the positive trading needs to be watched with great diligence. After a severe downtrend, a bounce is expected. Normal trend processes incorporate buying in the morning with selling in the afternoon.
05/18 - Stock Market CommentsA broken record scenario - continue to stay short until you see a candlestick buy signal and a close above the T-line. Candlestick analysis makes it very easy to decide which direction your portfolio should be oriented. The 200 day moving average is still the obvious target to the downside.
05/17 - Stock Market Comments
Candlestick analysis makes trend analysis very easy. You are considered in a downtrend until you see a candlestick buy signal and a close above the T-line. Although the indexes had that opportunity to show a reversal at the support levels, there wasn't any candlestick buy signal formed at those areas. Stay short.
05/16 - Stock Market CommentsA downtrend is described with buying in the morning and selling in the afternoon. Until the indexes can create a bullish signal at the end of the day, followed by a bullish confirmation, the down trend remains in progress.
05/15 - Stock Market CommentsThe indexes appear trying to support on the support channel. Although the Dow is trading lower, it is not trading with any conviction to the downside. At the same time, the NASDAQ has been trading positive most of the day.
05/14 - Stock Market Comments
The Dow is now hovering in the support area, the expected target ever since the Dow came back down through the T-line. All the indexes are now in the oversold condition. Be more diligent in watching to see if the bottoming action starts at the support level.
05/11 - Stock Market CommentsAfter selling off early this morning, the markets have moved back up nicely. However, it is still relatively early in the day. Bottoming actions usually experience an extensive amount of whipsaw movement before a new direction can be established. Do not make any substantial bullish decisions until bullish signals are confirmed. The T-line is still a very important analytical factor.
05/10 - Stock Market CommentsAlthough the market open positive Thursday, all indicators are not yet in alignment to show there is a reversal in the trend. The Dow you know has a strong support area 100 points below where it is trading right now. Short positions and continue to be maintained until a market reversal has been confirmed.
05/09 - Stock Market CommentsThe down trend continues with the target for the Dow be in the 12,700 area. Stay short until stochastics get into the oversold area and a candlestick buy signal appears. As can be seen over the past two months, there is atrading channel that is developing. Each time prices come to the edge of that trading channel, it becomes important to watch to see what type of candlestick signals form in that area.
05/08 - Stock Market CommentsThe markets are following the indicators, the NASDAQ opened below Monday's open and went in a bearish direction. This is a good indication there is more downside. Remain predominantly short with any long positions remaining strong due to patterns. There are a couple of frypan bottom trades that are holding up well.
05/07 - Stock Market CommentsAny candlestick reversal signals Friday? None! So what is your analysis? The Dow formed a candlestick sell signal and a close below the T-line. Keep it simple! Until we see a candlestick buy signal and a close above the T-line, anticipate this downtrend will continue.
05/03 - Stock Market CommentsThe indecisiveness nature of Thursday's trading continues to reveal there is no major change of investor sentiment in the markets. Fortunately this allows for candlestick signals and patterns to perform optimally when there is not any evidence of a severe selling reversal.
05/02 - Stock Market Comments
The bullish participation in Wednesday's market can be much more readily seen in the NASDAQ chart. Although the NASDAQ is not up huge, it opened lower and then solve bullish participation from that point.
05/01 - Stock Market Comments
The force of the island reversal is still affecting the uptrend for the NASDAQ. The Dow was strong enough Tuesday to get through the recent highs. Continue to remain predominantly long with some safety shorts in the portfolio.