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Daily Market Comments - September 2013


09/30 - Stock Market Comments

It will be important to see where the NASDAQ closes Monday. Currently, after it opened lower, it is now trading above where it opened but is now trading back up at the T-line. A close above the T-line will cause a bullish belt hold signal. A close below the T-line will show investor sentiment getting weak in the NASDAQ along with the Dow and the S&P 500. Numerous longs were close out on the weaker open today. This market does not have a direction and is not being assisted by the lack of direction of the government.

09/26 - Stock Market Comments

Be careful, although the Dow and the S&P 500 trading positive Thursday, they are not backed up above the T-line and they have not shown a reversal signal. However, the NASDAQ is forming a small kicker signal and it has not been able to get back below the T-line. These market conditions illustrate there are some sectors that are acting strong while other sectors are acting weak. These are market conditions where it is appropriate to have both long and short positions in the portfolio.

09/25 - Stock Market Comments

Watch the signal that is forming Wednesday in the DOW, a hammer signal right off the 50 day moving average. The NASDAQ is also forming a hammer signal after a DOJI. Note how the NASDAQ has not been able to close back below the T-line. Once again, there are numerous stocks that are still showing good strength.

09/23 - Stock Market Comments

The profit-taking of Friday is still in progress. The Dow came down to the T-line on Friday, the S&P 500 is there Monday. Continue to take profits in positions that are showing weakness. There will be better levels to be buying back. Also, adding a few more shorts to the portfolio would be prudent. Anticipate the markets to potentially pullback to their 50 day moving averages.

09/20 - Stock Market Comments

The markets are in a territory where profit-taking would be easily understandable. However, there are still no strong indications that the sellers are showing any extravagant presense. The Dow is at a potential resistance level but the NASDAQ has gapped opened slightly, creating a trend kicker potential. Continue to stay long until a sell signal occurs in any of the indexes. Even at that point, unless it becomes apparent that all the indexes are starting to take profits, it has to be assumed the uptrend remains in progress.

09/19 - Stock Market Comments

After Wednesday's big move, the markets could easily show some profit-taking. Thursday's trading is not yet showing any great consolidation. The economic numbers remain good. With the indexes now trading at recent highs, be very aware of exuberant buying. This provides the alert for taking profits. Stay long but be ready to take profits.

09/18 - Stock Market Comments

The markets appear to be in a holding pattern today, no selling even though the Dow is down 36 points, the NASDAQ is trading slightly positive. This is an indication there has not been a change of investor sentiment, merely a shifting of funds. Stay long, the markets are not likely to make any major moves prior to the FOMC announcements. There are still numerous frypan bottom patterns working very well.

09/17 - Stock Market Comments

Monday the NASDAQ showed bearish inclinations. However, it did not close below the 3T line, let alone the T-line. Tuesday's positive trading continues to show a bullish move in the Dow and S&P 500 as well as the NASDAQ showing support on the 3T line. Unless the NASDAQ starts trading back below Tuesday's open, the uptrend remains in progress.

09/16 - Stock Market Comments

The markets are moving in the direction the candlestick charts would indicate, however the magnitude of the move, especially Monday, is now moving the indexes into an area where profit-taking should be expected. The Dow has moved away from the T-line and the 3T line, making it well extended. Stay long but be ready to take some profits.

09/13 - Stock Market Comments

The fact that the Dow is trading positive Friday while numerous stocks are still in the profit-taking mode, as evidenced by the NASDAQ and the S&P 500 trading relatively flat continues to illustrate a market that is in the profit taking mode. Not unexpected for a Friday after a good strong trading week. The current lackluster environment Friday makes today a good day to get a round of golf in.

09/12 - Stock Market Comments

The strong market move over the past week has provided the prospect of some profit-taking. Currently Thursday's indecisive trading illustrates a resting period for the Bulls but the markets are not backing off. The strength in this market is being illustrated by the fact that the indexes are not able to trade back below the 3T-line, let alone the T-line.

09/11 - Stock Market Comments

A profit-taking day! How can this be concluded? Because the Dow is trading positive and the NASDAQ is trading negative, indicating there is no change of investor sentiment today, merely selling and buying of different sectors. Allow the profit-taking to occur in the morning and then see what investor sentiment is doing going into the close. Keep in mind, an uptrend usually experiences selling in the morning and buying in the afternoon.

09/10 - Stock Market Comments

Tuesday's positive trading in the Dow makes the 50 day moving average target more viable. Expect some profit-taking along the way but as long as the markets continue to close above the T-line, the overall trend will remain positive. The NASDAQ, with today's gap up through the top resistance level indicates wave three is in progress. Stay predominantly long, there are still a few gold stocks that can remain short.

09/9 - Stock Market Comments

The long leg a Doji of Friday in the Dow showed indecision but it continued to close above the T-line. Monday's positive trading illustrates which way the decision was made. Ever since last week's cradle pattern in the Dow and the S&P 500, the implication is a strong uptrend. This remains confirmed as long as the indexes do not close back below the T-line.

09/6 - Stock Market Comments

How do you play a knee-jerk reaction? Analyze what the current trend is doing when the knee-jerk reaction occurs. There is usually a high probability the knee-jerk reaction will diminish and the current trend will come back into play. Is the selling over today? Watch your Dow five-minute and 10 minute chart. That will tell you what is happening.

09/5 - Stock Market Comments

After the bullish flutter kicker signal in the NASDAQ Wednesday, it is now approaching the downtrending resistance level. The Dow and the S&P 500 have traded higher Thursday and now back toward the lower end of their trading range but is continuing to demonstrate the bullish sentiment. The Dow and the S&P 500 created cradle patterns yesterday as well as closing above the T-line. The assumption is that the uptrend is in progress as long as we do not see the indexes close back below the T-line.

09/4 - Stock Market Comments

Although some bullish trading is coming in early in the day, the markets continue to demonstrate that there is no major selling pressure at these levels. The stochastics are showing oversold conditions and the candlestick signals are starting to show buy signals. Continue to hold both long and short positions in the portfolio.

09/3 - Stock Market Comments

Although the Dow is trading positive, a good bullish day, it is currently trading right at the T-line. It will be important to see the Dow close above the T-line. What is more bullish is the fact that the NASDAQ is creating a bullish kicker signal Tuesday, opening above Friday's open and moving in a positive direction. Any buying Tuesday still requires the markets to close on a positive note.


 

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