Daily Market Comments - July 2013
07/31 - Stock Market Comments
The trend will move in the direction of how they open after a Doji. All the indexes formed Doji's Tuesday. Wednesday's positive trading, especially in the NASDAQ, reveals the T-line is continuing to act as a support level. The rounded bottom forming in all the indexes indicate investor sentiment is building up confidence again. Continue to stay long.
07/30 - Stock Market Comments
The lack of bullish sentiment after the Dow traded down below the T-line last Thursday and Friday is now showing a slow curve pattern set up. If today's trading in the Dow closes near the high end of the trading range, both the Dow and the NASDAQ will be confirming a slow curve pattern. This provides evidence the bullish sentiment, after a few days of consolidation, is likely to continue its upward path.
07/24 - Stock Market Comments
Note how both the Dow and the NASDAQ have use the T-line as support Wednesday. There does not appear to be any aggressive selling or any change of investor sentiment in the overall market trend. This continues to put analytical evaluations solely upon individual stock positions. Stay predominantly long by staying with the strong candlestick chart patterns.
07/23 - Stock Market Comments
Tuesday the Dow is trading positive and the NASDAQ is trading negative. Both are still above the T-line but when there is one index up and one index down, it can be assumed there has not been a major change of investor sentiment. Continue to stay long until a sell signal appears in the Dow, the NASDAQ, and the S&P 500 all at the same time. That will then require closes below the T-line.
07/22 - Stock Market Comments
The market indexes are showing indecisive trading, revealing two things. First, there is not any major shift in investor sentiment, a slow consistent uptrend. Secondly, it's making the analysis of individual stock positions more important. As long as there is not a major change of investor sentiment in the market in general, candlestick signals and patterns will reveal which individual stock positions to be participating in. Stay long and be selective.
07/10 - Stock Market Comments
With the Dow and the S&P 500 trading slightly lower and the NASDAQ trading slightly higher, Wednesday's trading so far merely reveals consolidation, there has not been any change of investor sentiment. Continue to hold long positions that are staying above the T-line. The uptrend remains in progress until there is a confirmed candlestick sell signal in the indexes. Currently, there is no evidence of bearish pressure.
07/09 - Stock Market Comments
Tuesday's bullish trading add some evidence the downtrending resistance level of the past month is not deterring the indexes. More importantly it is showing there is not any bearish sentiment coming into this market. Numerous stock positions are showing profit-taking this morning. Keep in mind, during an uptrend, the selling occurs in the morning and the buying comes back in the afternoon. Unless there is a compelling sell signal, be patient.
07/08 - Stock Market Comments
The Dow is currently nudging the downtrending resistance level, however the NASDAQ and the S&P 500 appear to have gapped up this morning through their down trending resistance levels. A close near the top end of the indexes trading ranges Monday would be a very strong indicator wave three is now in progress. Stay predominantly long, close out any short positions that do not reveal weakness Monday.
07/05 - Stock Market Comments
The jobs report was seen as bullish, continuing to make the T-line crunch prognosis the most likely trend analysis. Both the Dow and the S&P 500 are nudging the 50 day moving average while the NASDAQ is pushing on the downtrending resistance level. A breakout above those levels will be very strong evidence wave three would be in progress.
07/03 - Stock Market Comments
The markets started off a little bit weak this morning but the NASDAQ is the strongest illustration there is not any great selling. It opened lower and is now trading back up toward breakeven. The Dow trading lower early but now coming back up toward the top of the trading range provides the prospect of it staying above the T-line Wednesday. The T-line will be a very important factor. A close below the T-line puts the blue ice failure scenario back in place.
07/02 - Stock Market Comments
The T-line crunch looks like the prognosis for the Dow and S&P 500. The NASDAQ required a positive open Tuesday to keep Mondays little shooting star signal from potentially creating a selloff back to the T-line. A positive close in the NASDAQ Tuesday would confirm the island reversal, making the up side analysis much stronger. Stay long and use the T-line as your primary indicator.
07/01 - Stock Market Comments
After the selling of Friday, the Dow was either going to produce a blue ice failure or a T-line crunch. Monday's positive trading obviously makes the T-line crunch much more viable. This is being confirmed by the NASDAQ. Although the Dow closed lower on Friday, the NASDAQ made it clear there was support on the T-line. Monday's gap up in the NASDAQ makes the bullish trend prognosis much more viable. Numerous bullish candlestick charts are working as expected Monday.