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Daily Market Comments - July 2012

07/31 - Stock Market Comments

The markets are continuing to rest after the strong move over what past couple days. There does not seem to be any great movement in most positions. Maintain long positions if they stay above the T-line.

07/30 - Stock Market Comments

The strength in the markets on Friday breached the current trend channel. This would imply that upside momentum should take the markets up to test the recent highs. Monday's trading illustrates the continued strength of this uptrend.

07/27 - Stock Market Comments

The Dow has moved up to test the top of the trend channel with just a few powerful bullish days. Plus, there is still juice left in the stochastics, not yet near the overbought condition. This could indicate a potential breakout of the trend channel, producing a few more good days to the upside.

07/26 - Stock Market Comments

The Dow is confirming the bullish Harami it formed Wednesday. The NASDAQ has had a significant gap up from a doji. This puts the trading back into the middle of the current trend channel, making the top end of the trend channel the viable target.

07/25 - Stock Market Comments

Although the Dow is trading positive, the NASDAQ has not shown any strength this morning. This indicates no change of investor sentiment. Anticipate a couple of indecisive trading days near the lower end of the current trend channel.

07/24 - Stock Market Comments

The markets have come down to test the bottom of the trend channel. The Dow is sitting right on the 200 day moving average. That should be a logical bottom! However, the stochastics are still heading down with much more downside before getting to the oversold condition.

07/23 - Stock Market Comments

When the market trades off that hard and fast as we saw this morning, it is usually a knee-jerk reaction. In this case, the European theater is created worries around the world. Fortunately, a candlestick investor can see what the investor sentiment is doing right at specific technical levels.

07/20 - Stock Market Comments

Friday's trading does not necessarily indicate a reversal, the stochastics are still heading up and the Dow is still trading above the T-line. This warrants to be the markets to the end of the day. Continue to hold long positions with a smattering of short positions in the portfolio that have not yet traded above the T-line.

07/19 - Stock Market Comments

The markets are moving as expected, the slow uptrend approaching the top of the trend channel. The lack of enthusiasm in Thursday's bullish trading does not restrict some nice price moves being seen in specific stocks. Many of the short positions have been stopped out at this point. Utilize the information built into the patterns.

07/18 - Stock Market Comments

Once again, the trend is better identified when selling occurs early, then followed by buying going into the rest of the day. The trend channel for both the Dow and the NASDAQ continue to act as the predominant indicator.

07/17 - Stock Market Comments

Bullish sentiment immediately disappeared when Bernanke started speaking. Unfortunately, there is a clear correlation between government participation in the free market versus the free market working on its own.

07/12 - Stock Market Comments

Thursday's weakness in the markets make the 200 day moving average the viable target for both the Dow and the NASDAQ. The shorts should be acting well.

07/11 - Stock Market Comments

The markets keep drifting toward the lower end of a trend channel. Tuesday selling much closer to that target. Wednesday's trading shows signs that it may have reached that target and now experiencing a little bit of buying.

07/10 - Stock Market Comments

The early morning buying is always looked at with suspicion when you're stochastics are heading down and the current trend is heading down.

07/09 - Stock Market Comments

A pullback or a reversal? The fact that there is obvious buying in numerous positions Monday indicate there is no aggressive selling across the market.

07/06 - Stock Market Comments

The indecisiveness of the uptrend of the markets are now making a trend channel the most predominant indicator. Unfortunately, this makes trading a little bit more difficult.

07/05 - Stock Market Comments

Although Friday was a fairly lethargic trading day, it did bring the Dow up through the high a few weeks ago, confirming a J-hook pattern. The initial selling in Thursday's market has now disappeared, reconfirming the uptrend is in progress and that the J-hook pattern is a very predominant analytical indicator.


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