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Daily Market Comments - December 2012


12/31 - Stock Market Comments

When our premarket futures important? Last Friday, after the close, somebody in the chat room mentioned the Dow futures were down another 200 points. Keep in mind, the investor sentiment that prevails on Friday afternoon will most likely have nothing to do with the investor sentiment on Monday morning.

12/28 - Stock Market Comments

Although the Dow and the S&P 500 are showing weakness, the candlestick formation demonstrates much more clearly the NASDAQ showing bullish strength. Although the NASDAQ is lower, there has been bullish participation since the open.

12/27 - Stock Market Comments

The downtrend is being expedited by the "finger-pointing" process of our wonderful politicians versus a solution process. Numerous long positions have been stopped out with the addition of more short positions into the portfolio. Observing the obvious, the downtrend in the indexes have not supported at major moving averages.

12/26 - Stock Market Comments

The Dow is currently trading back to the 50 day moving average. The NASDAQ also. The S&P 500 is heading in that direction. Although the volume is fairly light during the Christmas to New Year's trading range, prices still move. Candlestick signals and patterns are still the graphic indication of what is occurring between the Bulls and the Bears.

12/21 - Stock Market Comments

A knee-jerk reaction day, such as Friday, allows for an investor to determine which stocks are starting to show more weakness. It provides an opportunity to take some profits and watch to see which stocks might be coming back the strongest, suggesting the Bulls are still in control. Unfortunately, the rhetoric out of Washington has the capability of whipsawing.

12/20 - Stock Market Comments

The anticipated profit-taking has brought the Dow right back down to the T-line and is now forming a Doji. The fact that it is forming a Doji reveals there is not any dramatic selling pressure, merely profit-taking. Additionally, there are numerous stocks still trading positive today, indicating the Bulls are still very much participating in this market trend. If the Dow forms a Doji Thursday, bouncing off the T-line, expect with high probabilities an additional bullish move on Friday.

12/19 - Stock Market Comments

The weakness in Wednesday's market is anticipated profit-taking after two strong days. The magnitude of the selling indicates merely profit-taking versus any major change of investor sentiment. Stay long with the anticipation of more upside in the trend. Any pullback on individual stocks should be analyzed as to whether it is a reversal or merely selling during an uptrend. The markets are moving with the expectation that Washington can do something to avert the Cliff.

12/18 - Stock Market Comments

The strength in Monday's trading indicated the 50 day moving average was going to act as support. It also produce the possibility of a J-hook pattern. Tuesday's positive trading enhances that probability, producing a J-hook pattern that would indicate the uptrend is still in progress for maybe the next two weeks.

12/17 - Stock Market Comments

This morning's positive trading is providing more evidence the moving averages are supporting the indexes. Continue to stay relatively long in the portfolio with some short positions. The moving average supports will be much more convincing as long as the markets stay positive Monday. There would be very bearish implications if the indexes started selling off, back down through the open.

12/14 - Stock Market Comments

Although the markets are pulling back Friday, they are doing so in a very indecisive manner. The Dow is supporting on the T-line, the S&P 500 the supporting on the 50 day moving average, and the NASDAQ is supporting on the 20 day moving average, all with indecisive trading formations. As expected, the profit-taking pullback is still in process.

12/13 - Stock Market Comments

The markets continue to move in a sideways mode. Especially after Boehners comments that nothing is really getting done puts the market in a condition where nobody really wants to commit funds with any enthusiasm. As mentioned Wednesday, expect some backing and filling Thursday, but there does not seem to be any major change in investor sentiment. That means the slow sideways uptrend is still in progress.

12/12 - Stock Market Comments

The message in Tuesday's trading came more from the NASDAQ, a J-hook gap up. Wednesday's positive trading is a good sign in the sense that there could be some profit-taking Wednesday but the Bulls are still participating in this market. Expect some profit-taking soon with the Dow above the 50 day moving average.

12/11 - Stock Market Comments

After Monday's Doji in the Dow, positive futures this morning indicated the possibility of a Doji sandwich. More positive trading indicated the 50 day moving average was going to act as support. There is good strength in the market obviously. Continue to hold long positions. The buying the pattern setups to take advantage of the higher profit potentials during this uptrend.

12/10 - Stock Market Comments

Monday's early trading is not showing any decisive force one way or the other. However, the Dow and the NASDAQ are now in sync. Obviously, a positive close Monday will add more credibility to the slow uptrend scenario.

12/6 - Stock Market Comments

The indecisiveness of Thursday's trading is an indication that there is still no conviction in this market. The NASDAQ and the S&P 500 are showing bearish signals while the Dow has been showing a positive trend. These market conditions make for the analysis of individual stock/sectors much more important. There are excellent charts to be long and there are excellent charts to be short. Be patient but do not be overly aggressive in these market conditions

12/5 - Stock Market Comments

The Dow is up, the NASDAQ is down, no direction in this market. The markets are still in a wait and see mode, waiting for some sort of resolution of the financial deficits. Obviously this market is in a trading situation where there is not going to be big upside potential or big downside potential until something is resolved. Let each individual stock chart be your guide.

12/4 - Stock Market Comments

Tuesday's market is not showing any great enthusiasm. However, none of the indexes appear to want to breach T-line to the downside. Unfortunately, although this does not create any huge downside risk for most positions, it also diminishes the upside potential in existing long positions. The portfolio should be predominantly long as the markets are remaining above the T-line but also have a few short positions in the portfolio. Candlestick signals allow a portfolio to have positioning in both directions with a great probability you will make money in the majority of your positions.

 

 

 

 

 


 

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