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Daily Market Comments - October 2012

10/31 - Stock Market Comments

After a couple of snow days, the Dow has remaining in its indecisive trading mode. Note how it is forming Doji's moving absolutely sideways. This has the makings of a potential cradle pattern. The indecisive trading who may now be caused by investors not making a major decision until the election is over at that time. The direction of the market will indicate what the next trend will do.

10/26 - Stock Market Comments

One basic simple rule, the downtrend remains in progress until a candlestick buy signal is confirmed. That confirmation will usually require a close above the T-line. As of yet, any potential reversal signals have not been correlating with other confirming indicators. Both the Dow and the S&P 500 have potential support levels within foreseeable range.

10/25 - Stock Market Comments

Any buying Thursday should be done with using a quick trigger finger, be nimble. The strength of Thursday's buying does not necessarily mean a reversal is in progress, but it might signify the Bulls are starting to come back into the market at these levels.

10/24 - Stock Market Comments

The graphics of candlestick signals are fully illustrated in Wednesday's trading. The NASDAQ is trading positive. Good? To most people it would appear that way, but the candlestick formation illustrates the fact the NASDAQ opened higher and is now trading lower than where it opened.

10/23 - Stock Market Comments

For most investors, Tuesday is an excruciating day. but as a candlestick investor, this is a good day. The natural evolution of the recent trends closed out the long positions and left short positions open. The past few days have created opportunities to add to the short positions.

10/22 - Stock Market Comments

The hard selling from Friday is going to keep investor sentiment in a tentative state for the next day or two. However, all the indexes dropped right to support levels such as the 50 day moving average.

10/17 - Stock Market Comments

The early morning profit-taking does not seem to be too severe. The uptrend should remain in progress bringing the indexes back up to their resistance levels. This should indicate a few more days to the upside. Concentrate on the long positions, short positions should be being closed out.

10/16 - Stock Market Comments

Monday's bullish confirmation of the Doji's provided for a high probability positive trading day Tuesday, bouncing off the 50 day moving average in both the Dow and the S&P 500. The NASDAQ is confirming good strength Tuesday with a gap up back up through the T-line.

10/15 - Stock Market Comments

The indecisive trading of Friday put the indexes right on the 50 day moving average, the NASDAQ on a previous support level. Monday's indecisive trading, although positive, starts to give an indication the support levels might hold.

10/12 - Stock Market Comments

After a little bit of bullish activity this morning, the market indexes hovered just above 50 day moving average. Now they are trading off, solidly testing the 50 day moving average. Stochastics illustrate some additional weakness, making the 50 day moving average area a waffling area potential.

10/11 - Stock Market Comments

Be careful, Thursday's initial strength in the markets does not necessarily mean there is a change of investor sentiment in the overall current trend. Evidence of that is stochastics not yet to the oversold condition, the 50 day moving average nor the 200 day moving average has been touched by the Dow and the NASDAQ.

10/10 - Stock Market Comments

Although the markets appear to be resting at this moment, there has not been anything to indicate a change in the downtrend. Continue to stay predominantly short until a definite reversal signal appears. The likely target for the NASDAQ is the 200 day moving average and the target for the Dow is the 50 day moving average.

10/08 - Stock Market Comments

Although the markets are showing weakness this morning, they do not appear to be in any hurry to go anywhere. Many of the positions were showing red early in the day but now some of them are starting to show green. The market nature does not appear to have any conviction one way or the other.

10/04 - Stock Market Comments

The very simple rule of the Doji! A trend will move in the direction of how they open after a Doji. Thursday the Dow formed a Doji right on the T-line. Thursday's positive trading adds further confirmation to the scoop type pattern. Until a definite trend has been identified, continue to hold both long and short positions in the portfolio.

10/03 - Stock Market Comments

The markets continue to show sideways movement at best. Each index is trading slightly below the T-line but the trend is more sideways at this point that it is downward. Until a trend can be identified, continue to hold long positions as well as short positions. Remain nimble, the market appears to be waiting for something.



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