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Daily Market Comments - August 2013


08/30 - Stock Market Comments

Friday's bearish trading provides more evidence the Doji type trading day of Thursday for both the Dow and the S&P 500 confirmed the T-line was acting as resistance. The NASDAQ, which closed right on the T-line, required bullish confirmation Friday. Simply stated, as long as the indexes are trading below the T-line, the downtrend is in progress.

08/29 - Stock Market Comments

Thursday's positive trading still requires the indexes to eventually close above the T-line. Although there is buying at these levels, there has not been a strong reversal signal in any of the indexes. At this level, the NASDAQ is trading back up above the T-line.

08/28 - Stock Market Comments

Tuesdays hard selling created a potential bearish J-hook pattern in the Dow. This indicates that investor sentiment has definitely continued in the negative direction. Do not anticipate today's early buying is demonstrating a major change of investor sentiment.

08/27 - Stock Market Comments

Tuesday's selling, a continued reaction to the Syria question, has the Dow trading at a minor support level. It will be important to see how the markets close Tuesday. Observing buying going into the close Tuesday, creating a hammer type signal in the Dow would indicate this minor support level is likely to hold.

08/26 - Stock Market Comments

Although the Dow is still below the T-line after the bullish Harami on Thursday, the uptrend is getting better confirmation with the S&P 500 trading up above the T-line and the NASDAQ trading well above the T-line. The NASDAQ has had a Doji, gap up, Doji, gap up. This combination reveals strong bullish confirmation. Additionally, the NASDAQ is forming a mini scoop pattern, which implies a breakout of these levels will continue as a strong uptrend. Expect the summer doldrums to be coming to an end.

08/23 - Stock Market Comments

After the positive trading Wednesday afternoon, the indexes have clearly shown bullish sentiment coming back into the market. The NASDAQ is trading well above the T-line after some good bullish signals. However, the Dow and the S&P 500 are showing sluggishness right at the T-line level. Friday's trading may not demonstrate a lot of enthusiasm one way or the other, being a Friday in August, but individual stock chart should continued to move as the charts indicate.

08/22 - Stock Market Comments

The Dow is forming a bullish Harami Thursday but will need the close to confirm. The NASDAQ has done a Doji followed by a gap up through the T-line in the oversold area. This is a much more compelling reversal signal. The NASDAQ has been acting stronger than the Dow and the S&P over the past few days. This has been providing evidence that there is not aggressive selling in the markets.

08/21 - Stock Market Comments

Once again we are in the market mode of one index up, one index flat, one index down. This reveals there is no strong direction in the markets one way or the other. Currently the slow market direction is in a downward mode. However, there are still good bullish patterns in this market as well as good bearish patterns in this market.

08/20 - Stock Market Comments

The indexes are getting back to a point where they are in the oversold condition. Tuesday's positive trading in both the Dow and the S&P 500 have the potential of forming bullish Harami's. This would tell us that the selling had stopped. Until there is a dramatic change of investor sentiment, it has to be considered that the downtrend remains in progress.

08/19 - Stock Market Comments

The indecisive nature of Monday morning's open in the Dow indicates a possible bottoming action after Friday's indecisive trading. The NASDAQ is in the process of forming a MorningStar signal in the oversold area. If it closes at the high end of Monday's trading range, that should provide more evidence the market is looking for a bottom.

08/16 - Stock Market Comments

After the hard selling Thursday, option Friday will probably produce a very insignificant day. Also, the S&P 500's bouncing right off the 50 day moving average. Start watching for J-hook type patterns setting up Friday but will need further confirmation on Monday.

08/15 - Stock Market Comments

After an extended slow drifting period to the downside in the Dow, we are seeing aggressive/panic selling. Where do most people sell? Usually at the bottom. Knowing this, start watching the intraday charts to see if buying starts coming back into the markets. Short positions should be watched to see if they are get excessive selling.

08/14 - Stock Market Comments

Although the Dow is trading down 45 points, the NASDAQ and the S&P 500 are demonstrating that they are not selling off. Makes the trend analysis more of the same, the sideways mode is still in progress. This makes market conditions still in the process of allowing strong/bullish charts to continue working and short chart positions going negative.

08/09 - Stock Market Comments

A Friday in August, usually not going to show too much vigor especially in the afternoon. Currently the markets are showing sideways movement but that has not deterred the number of strong charts performing very well Friday. Take off at least half positions in breakout recommendations, such as MTDR and AMED. There will probably be more opportunities early next week.

08/08 - Stock Market Comments

The Dow and the S&P 500 are still trading below the T-line but the NASDAQ continues to use the T-line as a support area. This combination reveals there is no aggressive selling in the markets, but no aggressive buying either. The candlestick charts indicate the lethargic summer trading is in progress, no conviction one way or the other. This allows for short and long positions to be working effectively. When the markets are moving relatively sideways, there will always be sectors that are acting strong while other sectors are acting weak.

08/07 - Stock Market Comments

The visual elements of candlestick signals allows for the closing of positions upon confirmation of sell signals. Wednesday is a good example. Numerous stock positions Tuesday showed potential sell signals. This morning, the premarket futures indicated more weakness. This was a good scenario for being prepared to close out long positions that were opening lower after Tuesdays sell signals. Currently, as can be seen, the markets are continuing their pullback after the Dow and the S&P 500 closed below the T-line Tuesday.

08/06 - Stock Market Comments

Tuesday's market closed be an extremely important message. With the excessive selling so far this morning, the Dow has traded back below the T-line, even breaching the 20 day moving average. Up until Tuesday, the markets have been showing a consistency. Selling in the morning with buying in the afternoon. If the markets close at the lower end of their trading range today, they will be producing a bearish scoop pattern. This would be a prelude to a strong slingshot effect to the downside. It will be very important to see if the indexes can close back up above the T-line.


08/05 - Stock Market Comments

The early selling of the Dow use the T-line as support once again. The NASDAQ and the S&P 500 didn't show any movement on the open. These are two reasons to indicate any selling this morning was merely profit-taking versus any change of investor sentiment. Continue to hold long positions until something drastically alters the uptrend.

08/01 - Stock Market Comments

The NASDAQ had been indicating a slow curve pattern off the T-line over the past two weeks. Thursday's positive trading is a confirmation of the slow curve. It also indicates a J-hook pattern has been established, provided the indexes close at the high end of their trading range Thursday, that would produce the next strong wave to the upside. Nothing to do now except stay long until you see a candlestick sell signal.

 

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