Daily Market Comments - May 2013
05/31 - Stock Market Comments
Although the markets are slightly lower today, they do not give the indication they want to move too far away from the T-line. The Dow and the S&P 500 are hovering in that area while the NASDAQ has opened lower, right on the T-line, and started to trade higher. So far, the implication is that the market does not appear to want to move anywhere substantially Friday. Stay with the strong chart patterns.
05/30 - Stock Market Comments
Thursday's positive trading continues to indicate the T-line is acting as a support level, just as it has for the past four months. The bullish trading obviously needs to remain intact going into the close Thursday. Continue to maintain long positions with a few short positions in the portfolio. Until there is a candlestick sell signal and a close below the T-line, it has to be assumed the uptrend is still in progress.
05/29 - Stock Market Comments
Wednesday's selling has brought the Dow back down to the T-line. Once again the T-line is going to act as a very important trend indicator. The S&P 500 is trading back below the T-line but the NASDAQ is trading very in decisively right on the T-line Wednesday. It will be important to see where the markets close Wednesday. Expect some profit-taking and do not hesitate to take profits on positions that are showing weakness at resistance levels, i.e. VV US. One indication of an uptrend is experiencing selling in the morning with buying coming back in later in the day. Stay nimble.
05/28 - Stock Market Comments
After the Dow had formed Doji/hammer signals just above the T-line on Thursday and Friday, There was an implication the sellers could not push the Dow down through the T-line. The NASDAQ and the S&P 500 were trading below the T-line, but a great advantage of candlestick signals was the revealing that Bulls were participating in the market after those indexes opened lower. The positive premarket futures made it obvious the indexes were going to be trading well above the T-line again, making the uptrend still in progress.
05/24 - Stock Market Comments
The market will move in the direction of how they open after a Doji. Friday's lower open after the Doji in the Dow Thursday reveals the direction the trend will be moving. This is a very simple candlestick analytical tool. This makes market conditions more oriented to the short side. Any long positions need to be illustrating good strength in spite of the general market bearish sentiment,TLLP and MXWL. Add some short positions to the portfolio.
05/23 - Stock Market Comments
The reversal signals in the indexes Wednesday are obviously being confirmed Thursday. The NASDAQ is producing the week a scenario with the strong gapped down from Wednesday's signal. It is currently trading above where it opened. However, the trading in all the indexes are now well below the T-line. The T-line needs to be breached to the upside to indicate the pullback was merely profit-taking. But until the indexes can close back up above the T-line, assume a down trend is in progress.
05/22 - Stock Market Comments
The strength in this uptrend is the fact that it is not ripped/roaring to the
upside. The positive move each day is a slow steady calculated uptrend. Nothing
has changed, continue to hold long positions until there is a definite change of
05/21 - Stock Market Comments
There might be some nervousness in the fact that the markets were trading relatively strong on the open but have now backed off. Keep in mind, in an uptrend, the selling will usually occur early in the day but it is the end result of the day that is more important. Although the indexes have moved back off their highs, there are still has not been a confirmed signal that indicates bears are taking control, merely some profit-taking. Stay brave, and stay nimble.
05/20 - Stock Market Comments
Although the markets are soggy this morning, there still is not any evidence of
any major change of investor sentiment. The Dow is trading down about 30 points
but although the NASDAQ is slightly lower, the candlestick formation reveals
buying after the open in the NASDAQ. This produces a scenario that indicates
there is no aggressive selling occurring so far today. The uptrend should remain
05/17 - Stock Market Comments
After Thursdays bearish Harami's in the Dow, the S&P 500, and the NASDAQ, Friday's trading needed to open positive and trade positive to sustain the uptrend. The trend is still the predominant analytical factor. However, the fact that there was a potential sell signal in all three indexes Thursday should provide a potential alert. The uptrend remains comfortably in place provided bullish trading continues today.
05/16 - Stock Market Comments
The market indexes are not revealing any severe change of investor sentiment, however it appears as if there are numerous stocks in the process of profit-taking. This is an area to definitely be nimble, do not hesitate to take profits on charts that are starting to show weakness. If this uptrend continues, there will be a new supply of trades where the risk reward factors are much better in your favor.
05/15 - Stock Market Comments
Slightly negative economic news is not knocking this market down. After the initial selling this morning in the Dow, buying can be seen bringing the market back up almost a positive. Additionally, there were numerous stocks trading positive this morning even as the market was selling off slightly. The broken record scenario, stay long until you see a definite candlestick sell signal in the indexes.
05/14 - Stock Market Comments
What is expected after a Doji sandwich? More upside! That is exactly what is occurring in the Dow after last week's Doji sandwich. After a few days of consolidation above the T-line, the Dow is continuing its uptrend. The NASDAQ continues its steady Eddie uptrend without any signs of bearish participation. Currently, there is no evidence of exuberance. Everybody is expecting a pullback. That is usually a good reason for the uptrend to continue.
05/13 - Stock Market Comments
Is Monday's selling indicating a strong reversal day in the markets? Obviously,
the Dow, the S&P 500, and the NASDAQ are all bearish. However, the NASDAQ is
trading right where it opened and has been trading positive from that level.
That would imply there is not a massive selling spree in progress. Additionally,
there is still plenty of buying going on in individual stocks.
05/10 - Stock Market Comments
The Doji sandwich set formed in the Dow a few days ago was a good indication a steady uptrend would be in progress. The gap up breakout in the NASDAQ is currently forming a 45°. The slow steady uptrend is producing a good number of candlestick pattern breakouts over the past few days.
05/09 - Stock Market CommentsAlthough the indexes are slightly lower Thursday, they are not moving with the magnitude that would indicate there has been a change of the current investor sentiment, merely profit-taking in the morning. No candlestick sell signals are being formed. No indications of any selling pressure is currently in this market. Continue to use the strong candlestick charts to maintain long positions.
05/08 - Stock Market CommentsWednesday's initial selling in the Dow does not indicate any major change of investor sentiment. This is verified by the fact that the S&P 500 and the NASDAQ are trading positive. This is more confirmation there has not been any change of the current investor sentiment. Continue to stay long until a major reversal signal appears. The longer a trend remains in existence, the more compelling the reversal signal needs to be. A reversal of this uptrending market would require a strong candlestick sell signal and a close below the T-line.
05/07 - Stock Market Comments
Tuesday's trading is showing the NASDAQ in profit-taking mode while the Dow is in
the process of forming a Doji sandwich. This would imply more upside to this
trend. Currently there is nothing that is showing any change of investor
sentiment. Continue to be predominantly long in the portfolio. The markets are
in overbought conditions but still indicating a slow uptrend is in progress.
However, overbought conditions require more diligence for watching for a
reversal signal. The uptrend continues to be in progress but be nimble.
05/06 - Stock Market Comments
Monday the Dow is doing some profit-taking early. Obviously profit-taking due to
the fact that the S&P 500 and the NASDAQ are continuing to trade positive.
Friday's strong trading day broke the Dow and the S&P 500 up through a minor
resistance level, indicating a new wave is now in progress. Continue to stay
long as long as the trend does not violate the T-line.
05/02 - Stock Market Comments
The positive trading in the markets Thursday, after the hard selling of yesterday, which had created a potential candlestick sell signal, an evening star signal, is indicating the bigger picture. The indexes are having a difficult time trading below the T-line. However, Thursday's positive trading needs to remain positive to negate the effects of Wednesday's Morning Star signal in the Dow.
05/01 - Stock Market CommentsThe T-line becomes a much more important factor when market trends show volatility intraday. There are numerous stocks that are in uptrends but have shown excessive waffling on the way up. Without the T-line, many uptrending positions may have been closed out based upon candlestick signals. This is why it is important to see confirmation when a candlestick sell signal appears. In a slow uptrend, a candlestick sell signal and a close below the T-line will keep you from being spooked out of a trade that has an uptrending bias.