Daily Market Comments - June 2013
06/28 - Stock Market Comments
06/26 - Stock Market Comments
The bullish bounce looks nice but there is one caveat yet to indicate the Bulls are back in control. Currently both the Dow and the NASDAQ have just touched the T-line but have not gone through it yet. Be careful, long positions put on today need to see the markets close near the high end of Wednesday's trading range, better yet above the T-line. Be nimble, we are currently in a downtrend attempting to do a bullish reversal, but the reversal still requires confirmation with a close above the T-line.
06/25 - Stock Market Comments
06/24 - Stock Market Comments
06/21 - Stock Market Comments
06/20 - Stock Market Comments
06/19 - Stock Market Comments
Tuesday's positive trading produce the message, the current profit-taking downtrend channel had been breached to the upside. Obviously, there is profit-taking occurring in early trading Wednesday, the Dow trading lower. However, when it can be seen that the NASDAQ and the S&P 500 are not selling off, it can be assumed the early morning selling is merely profit-taking.
06/18 - Stock Market Comments
A new uptrend has compelling evidence in that the Dow, after forming a bullish engulfing signal at the 50 day moving average, has now broken out of the descending resistance level. The NASDAQ is providing a more compelling bullish signal, a bullish flutter kicker breaking out of the descending resistance line. The up trending market has experienced pullbacks followed by bullish candlestick signals reestablishing the uptrend over the past six months.
06/17 - Stock Market Comments
06/13 - Stock Market Comments
As might be anticipated, Thursday's trading in the Dow and the S&P 500 is showing indecisive signals right on the support level, the 50 day moving average. This indecisive trading appears to be allowing the NASDAQ to trade flat or lower until the T-line becomes a factor. Unless there is a huge reversal in the market direction, anticipate a day or two of waffling at the 50 day moving average until a support level can be established for the NASDAQ.
06/12 - Stock Market Comments
Tuesday's selling created an evening star signal in the Dow. This sell signal occurred below the peak of three weeks ago. This essentially indicates the bullish uptrend at best will be very slow and calculating as the market has indicated over the past four months. A lower close Wednesday would indicate the current downtrending channel is still in effect, making the 50 day moving average still a likely target.
06/11 - Stock Market Comments
What is the definition of "buy on a positive open"? What we do not want to see is that the premarket futures are going to show that the Dow is going to open down 120 points. Obviously that would indicate there is some great selling pressure. So what do you do if the market immediately opens down 150 points? If the previous trend was indicating investor sentiment was relatively bullish, a deep bearish open needs to be watched with some suspect.
06/10 - Stock Market Comments
The Dow is down 30 points but the NASDAQ is trading positive. Simple analysis, consolidation after two strong days last week. Which way will the market be moving? Using the very simple analysis from candlestick analysis, a candlestick buy signal and a close above the T-line provide strong probabilities the uptrend is in progress until there is a candlestick sell signal and a close back below the T-line.
06/07 - Stock Market CommentsAny buying Friday has to be done with the caveat that the market indexes need to close near the high end of their trading ranges. Be careful, a close back below the T-line in the Dow and the S&P 500 would indicate a bounce versus a full-scale reversal. This does not preclude individual stocks maintaining strength from their individual chart patterns. However, with the market moving as fast as it has this morning, expect some profit-taking but then the profit-taking needs to be reconfirmed with bullish sentiment keeping Friday's trading above the T-line.
06/06 - Stock Market CommentsBe careful, a downtrending market usually sees buying in the morning, followed by selling in the afternoon. Both the Dow and the S&P 500 have hit the support level of the 50 day moving average. The NASDAQ has a good distance to go before it moves down to the 50 day moving average. Although the stochastics are in the oversold area, they are still on a downward trajectory. This would imply that the Dow and the S&P 500 might do some waffling here at the 50 day moving average, giving time for the NASDAQ to come down and tests that level. Any buying at these levels should be done so with a very short leash.
06/05 - Stock Market CommentsWednesday's trading provided an opportunity for the indexes to come back up through the T-line. As seen, the selling put all the indexes well below the T-line. Wednesday's weakness in the markets is in line with the simple analysis that the downtrend will remain in progress until the indexes can provide bullish candlestick signals and a close above the T-line. Short positions should be outweighing long positions in the portfolio.
06/04 - Stock Market CommentsAlthough the Dow is trading positive Monday, the S&P 500 and the NASDAQ are not following suit. The market is looking for the direction this morning. After the big down move on Friday, it would not be unusual to see a Doji type day in the indexes. Be prepared for some more profit-taking in the markets. Having a few additional short positions would be prudent until it can be discerned as to whether this is a profit-taking pullback
06/03 - Stock Market Comments
Although the Dow is trading positive Monday, the S&P 500 and the NASDAQ are not following suit. The market is looking for the direction this morning. After the big down move on Friday, it would not be unusual to see a Doji type day in the indexes. Be prepared for some more profit-taking in the markets. Having a few additional short positions would be prudent until it can be discerned as to whether this is a profit-taking pullback or a full-scale reversal. Be nimble.