Daily Market Comments - October 2013
10/31 - Stock Market Comments
The Bearish Harami that formed in the Dow Wednesday was a good indication the uptrend was not going to push through the top end of the trend channel. Friday's selling is confirming. This would imply a pullback at least to the T-line. From that point, a bounce up off the T-line would reveal the possibility of a small J-hook pattern just before breaking out of the top resistance level.
10/30 - Stock Market Comments
The markets may not be showing any great enthusiasm to the upside Wednesday. The Dow has just touched the top of the trend channel, an obvious resistance level. The markets will wait to see whether this acts as a resistance level or whether they will breakout into new high territory. Be diligent, the 10 minute charts may produce better evidence of what investor sentiment is going to do at these levels. Stay predominantly long but be prepared to take some profits.
10/29 - Stock Market Comments
The Apple announcement is a perfect example of why small volume, trading after-hours, does not have any severe relevance. The initial down move in Apple trading last night could have produced a negative influence on the indexes today. As can be observed, there still is no change of investor sentiment. The top of the trend channel continues to be the likely target.
10/24 - Stock Market Comments
The market continues to show that the backing and filling is keeping the exuberance of a steady uptrend. Thursday's positive trading the Dow continues to make the top of the trend channel the likely target. Continue to hold long positions that demonstrate good bullish chart signals.
10/23 - Stock Market Comments
All the indexes are showing profit-taking Wednesday. The NASDAQ formed to Doji's over the last two days and is gapping down Wednesday. This would imply profit-taking back to the T-line. expect a day or two of pullback but would not anticipate a full-scale reversal until there was a close below the T-line. Close out positions that have formed sell signals and are confirming Wednesday. You can always buy back new positions or repurchase existing positions once a buy signal appears.
10/22 - Stock Market Comments
The strongest analytical observation is the Dow continuing to head to the top of the trend channel. The S&P 500 is forming a DOJI sandwich Tuesday, implying more upside to come. Same prognosis as before, the uptrend remains in progress. Stay predominantly long, short positions should be held as long as they are not showing any buy signals.
10/21 - Stock Market Comments
The markets are showing some consolidation early this morning, which is not unusual after a nice strong week last week. The prognosis remains the same, continue to stay long in the strong bullish charts and have a few short positions on in the weak charts. The uptrend remains in progress as long as the indexes continued to trade above the T-line. The trend channel is obvious. Anticipate an eventual test of the top of the trend channel in the Dow over the next few weeks. This would imply more upside in the near-term.
10/18 - Stock Market Comments
Friday's trading does not indicate any change of investor sentiment. Although the Dow is trading slightly lower, the S&P 500 and the NASDAQ are trading higher. The NASDAQ definitely being influenced by googles pop to the upside. But more compelling is the fact that numerous bullish charts continue to move bullish. This clearly reveals there is no change of investor sentiment in this market. The market still maintains the characteristic of specific sectors continuing to trade positive while other sectors are selling off. A good portfolio mix is still to be predominantly long with a few short positions in the portfolio.
10/17 - Stock Market Comments
The uptrend remains in progress, it is not unusual to see them sell off in the morning and buy back in the later part of the day. The early morning sell off was not a real convincing activity due to the number of stocks that continue to trade positive. As can be seen in the NASDAQ, after yesterday's trend kicker signal, Thursday's trading opened lower but immediately started trading positive. This was a good indication that although the Dow and the S&P 500 were trading lower initially, there was not any major selling Thursday.
10/16 - Stock Market Comments
Washington – men of definite indecision, and the markets are reacting. When the market starts whipsawing, using the simple rule for the T-line will help keep from getting juked out of the market. Continue to hold long positions as long as they do not close back below the T-line.
10/15 - Stock Market Comments
Tuesday's profit-taking is not very compelling. The Dow has come back to the 20 day moving average and supported at that level. The NASDAQ is trading in decisively on a slight pullback I'm doing a Doji. The S&P 500 not showing any great selling pressure. An uptrend, profits are usually taken in the morning and the buying comes back in the afternoon.
10/14 - Stock Market Comments
Monday's selling is being explained as more concern about Washington coming up with an agreement. Thursday and Friday trading were huge days in the markets. Profit-taking today was not unexpected. Using candlestick charts, it becomes much more clear that once the markets opened, especially the NASDAQ, the buyers were stepping in.
10/11 - Stock Market Comments
Friday's bullish follow-through has gotten the Dow to the 50 day moving average, expect some profit-taking at this area. However, as long as the indexes continue to stay above the T-line, the reversal remains in progress.
10/10 - Stock Market Comments
Observe the obvious! The Dow did a Doji Wednesday at the recent support levels, just touching the 200 day moving average, with stochastics in the oversold condition. Thursday the Dow opened positive and has already moved back up to the T-line, a MorningStar signal. What confirms a MorningStar signal? Thursday's Dow needs to close more than half way up the candle of two days ago. The next confirmation would be a close above the T line. But remain nimble, these markets are reacting to the incompetency of Washington.
10/09 - Stock Market Comments
Having both long and short positions on in this market over the past few weeks have produced good profits. It also allows for restructuring the portfolio quickly once a strong trend indication appears. Logic stoploss placement may have reduced some profits in the long positions but that should've been offset with short profits on a big down day.
10/08 - Stock Market Comments
The rule of the Doji, the trend will move in the direction how they open prices after a Doji. That is being demonstrated by the NASDAQ. Tuesday's lower trading in the NASDAQ creating a bearish flutter kicker signal. This creates extremely high probabilities the overall market trends is now going to affect each of the indexes. Currently, today's low in the Dow bounced off the lower trend channel.
10/07 - Stock Market Comments
The Dow is down, the S&P is down, and the NASDAQ is down. They are selling this market? That would appear to be so for most investors but the candlestick investor can see visually that there is buying occurring in this market after the open. The NASDAQ is forming another bullish candle since the open.
10/04 - Stock Market Comments
The sideways mode of the market still is the predominate analysis. The Dow is illustrating some buying but is not showing any major reversal of its downtrend. However, the NASDAQ continues to maintain a sideways/slightly bullish trend right at the T-line. S&P 500 is using the 50 day moving average as support. All these factors added together continues to demonstrate there is no major trend in this market.
10/03 - Stock Market Comments
The nature of the market conditions remain the same, the Dow continues to sell off while the S&P 500 appears to be supporting at the 50 day moving average, is also resisting at the T-line. This currently makes the market action still in a sideways mode. The NASDAQ is still above the T-line although its trajectory is relatively flat. The prognosis remains the same, stay in strong long positions, the short in good weak patterns.
10/02 - Stock Market Comments
The Dow continues its journey down to the bottom of the trend channel. The S&P is wobbling between the 50 day moving average and the T-line, the NASDAQ continues to trade above the T-line. Note how it has not sold off once it opened. The market remains very sector specific.
10/01 - Stock Market Comments
The investment markets are showing their great concern over a government shutdown – yawn! Market conditions remain the same as the past two weeks, strengthen the NASDAQ, still trading above the T-line, and weakness in the Dow and the S&P 500.