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Daily Market Comments - February 2013


02/28 - Stock Market Comments

With the magnitude of Wednesday's buying, Thursday's trading as a high probability of just consolidating. In two days, the Dow has run from the bottom support level up to the top of the up trending resistance level. The Dow is currently trading as a Doji Thursday. This creates the opportunity for a Doji sandwich if the markets open positive Friday.

02/27 - Stock Market Comments

Tuesday and Wednesday is demonstrating bullish participation in the market indexes. However, the selling days are creating sell signals. Any buying should be done with a quick close possibility. The bullish trend will require a strong close Wednesday. Stay nimble.

02/26 - Stock Market Comments

The Dow has already tested the T-line on buying Tuesday but is now backing off. Any buying Tuesday has to be done with great nimbleness. Monday's selling still reveals a breakdown of the market trend, with the second large bearish engulfing signal. Be prepared for the downside to be more probable.

02/25 - Stock Market Comments

Monday's positive trading is confirming a scoop type pattern in the DOW. The Nasdaq has gapped up just above the T-line. If the market maintains strength going into the close, the pullback of the past few days will be offset. Maintain long positions, be nimble, be ready to add shorts if the indexes start turning weak.

02/22 - Stock Market Comments

Friday's positive trading needs to be watched closely. The T-line is still a major factor. Until the indexes can close above the T-line again, the downtrend is still the predominant factor. Have both long and short positions on in these market conditions.

02/21 - Stock Market Comments

The selling continues, economic news not positive. Continue to close out longs that are not showing any reason to stay in them. Adding a few more short positions would be proper. OSIS can be shorted on Thursday's weakness.

02/20 - Stock Market Comments

The slow rounded bottom pattern is a powerful, high profit, high percentage pattern. That is exactly what the DOW is forming now. Look for a strong bullish move in the market over the next few days in Wednesday's trading stays strong going into the close.

02/19 - Stock Market Comments

The Dow has the opportunity to create a Morning star type signal at the end of the flat trading of the past few weeks. This would lead to a high probability bullish sling shot effect out of the current trading range, more upside. Stay long as long as there are no indexes closing below the T-line.

02/15 - Stock Market Comments

The market indexes continue to show a lack of change of investor sentiment. Obviously the indexes need to continue to close above the T-line. If the Dow sees a strong positive day, it will be forming a Morning Star signal at the end of a flat trading area, a mini scoop pattern. This would be a prelude to a strong week next week. Continue to stay long, and continue to be nimble.

02/14 - Stock Market Comments

There was a change in the trend dynamic in that the Dow was initially trading significantly below the T-line on the open. However, it has slowly moved back up to where it is trading back up above the T-line, with a lower shadow. Obviously, it needs to close above the T-line. But watch out for the markets moving significantly positive Thursday, creating a bullish engulfing signal with a booster in the Dow. This type of pattern would be significant evidence that a wave three might be in progress. This is not a trend speculation, merely an observation to start watching.

02/13 - Stock Market Comments

The Dow is trading down, the NASDAQ is trading positive. This is an indication there is not a change of investor sentiment, merely shifting positions. The uptrend still remains in progress. Nothing has changed, continue to hold long positions, especially those coming out of good chart patterns. There are numerous J-hook patterns and frypan bottom patterns that are working out very well.

02/12 - Stock Market Comments

Tuesday's indecisive trading continues to reveal there is no major change of investor sentiment. The Dow continues to move up off the T-line and put pressure on the resistance level. A T-line crunch breakout would be a significant bullish move. Trading above the recent highs in the Dow would warrant adding long positions aggressively to the portfolio.

02/11 - Stock Market Comments

Monday's selling in the early part of the day still does not indicate a change of investor sentiment, merely profit-taking that could be expected in a slow uptrending market. Unless the selling becomes severe, reaching the support levels or creating candlestick sell signals, sit patiently until there are signs of a change of investor sentiment. Remain relatively long with a few short positions in the portfolio.

02/07 - Stock Market Comments

Observe the obvious, the Dow has had a few sell signals over the past 10 days now showing a potential evening star signal. Unless the markets comes back up toward the top end of the trading range Thursday, the evening star signal will provide a convincing sell signal. Be prepared to start closing out long positions that are showing weakness going into the end of the day.

02/05 - Stock Market Comments

Tuesday's positive trading is still creating the whipsaw action we have seen in the past two days. Tuesday's trading requires continued strength going into the close. If Tuesday's trading closes mid range or lower, it will continue to demonstrate the trading remaining in the whipsaw range. Continue to stay long as long as the trading does not close below the T-line. It will be important to see the NASDAQ closing above the T-line Tuesday. Stay long, and be nimble.

02/04 - Stock Market Comments

Monday's early selling is the product of some disturbing news coming out of Europe. Suspect it to be a knee-jerk reaction. The uptrend of the overall US market probably is not going to be greatly affected. This is the type of market you allow to settle out before making any quick decisions. The market does need to start showing some strength before the end of the day. The NASDAQ opened lower but has not traded off. Continue to maintain long positions until there is confirmed selling in this market.

02/01 - Stock Market Comments

Friday's healthy trading would be considered exuberant at the top of a trend, if it was actually at the top of a trend. Note how the trading in the Dow has not really exceeded the upper limits of the current trend channel. It merely has recovered some of the selling of the past two days. The NASDAQ has gapped up nicely Friday but it has not exceeded the top end of its trading range.


 

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