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Daily Market Comments - December 2013


12/31 - Stock Market Comments

Same analysis, the market uptrend will continue as long as the indexes continued a close above the T-line. However, due to the gains produced in this year's market, expect profit-taking to occur after the first. Be careful of hard selling on Thursday.

12/30 - Stock Market Comments

Currently, the lack of decisiveness in Monday's trading, the Dow up nine points while the NASDAQ is down six points, continues to illustrate a lack of change of investor sentiment. Stay with the basic rule, as long as the indexes are trading above the T-line, the uptrend is in progress. Additionally, numerous stock charts that are showing good bullish patterns continued to provide strong profits. Stay long.

12/23 - Stock Market Comments

A Santa Claus rally? Call it what you would like, but as can be seen so far in Monday's trading, the bullish sentiment still remains in this market. With Christmas falling in the middle of the week, the volume will probably be extremely light this week. That does not necessarily mean there will not be some big profit opportunities. The scans will find where the money is moving. Stay long and the longer this market continues its upward trend, the more pronounced a reversal signal needs to be.

12/20 - Stock Market Comments

Investor sentiment remains positive obviously after the Fed announcements. The Dow has the potential of doing a doji sandwich Friday putting it back up into the trajectory of the previous trend. This would imply more upside potential over the next few days. Stay long, multiple good chart patterns to be participating in for inordinate profits during this uptrend.

12/19 - Stock Market Comments

The bullish trading Wednesday after the Fed report negated any of the negative prospects in the NASDAQ and the S&P 500. The Dow broke through the down trending channel with great vigor. All the indexes are now well above the T-line, indicating investor sentiment has turned dramatically back positive. Look for the Dow to move up into the previous trend trajectory and do a 45 from that level. Many of the shorts were stopped out Wednesday and now the longs should be placed back in the portfolio.

12/18 - Stock Market Comments

The Dow has a good bullish chart, a potential bullish Doji sandwich. However, the slowdown trending channel has not been breached. The NASDAQ is having trouble staying above the T-line. The S&P 500 is also trading below the T-line. This lack of direction continues to verify the nature of this market, remaining very sectors/stocks specific.

12/17 - Stock Market Comments

The lack of volatility in the market in general is a great benefit for the candlestick investor. It allows for the visual identification immediately for which stocks are acting very bullish and which are acting very bearish. Trading those stocks can be done with the confidence that there is not going to be any great influence by the market trend changing dramatically.

12/16 - Stock Market Comments

Monday's trading has taken the Dow back up to the top of its downward trend channel. Be careful of this fast move to the upside Monday. Although the Dow is forming a strong Morning Star signal it never got into the oversold area. It will be important to see that today's trading maintains its strength going into the close.

12/12 - Stock Market Comments

The buying in the markets this morning should be viewed with some suspect. Wednesday's selling was across-the-board, in all indexes. This signified a change of investor sentiment versus shifting from some sectors to other sectors. Any long positions remain in the portfolio needs to trade above the T-line. Adding a few more short positions to the portfolio is the viable strategy.

12/11 - Stock Market Comments

With the big move on Friday, the Dow had the opportunity to do some backing and filling/profit-taking yesterday, but it didn't. However, today in the Dow has already come back and use the T-line as support and traded up from that level. Although the Dow is trading soggy Tuesday, the NASDAQ and the S&P 500 are trading flat, continuing to indicate the slow uptrend remains in progress. Currently there are no sides of any change of investor sentiment. Anticipate more slow upside move it in the markets.

12/ 10- Stock Market Comments

With the big move on Friday, the Dow had the opportunity to do some backing and filling/profit-taking yesterday, but it didn't. However, today in the Dow has already come back and use the T-line as support and traded up from that level. Although the Dow is trading soggy Tuesday, the NASDAQ and the S&P 500 are trading flat, continuing to indicate the slow uptrend remains in progress. Currently there are no sides of any change of investor sentiment. Anticipate more slow upside move it in the markets.

12/06 - Stock Market Comments

The markets are trading positive after the one reports, bringing the Dow and the S&P 500 back up above the T-line. However, it will be imperative for the indexes to close above the T-line. If this bullish sentiment fades during the day, especially in the NASDAQ, that would be an indication the bears have finally taken control. Although the NASDAQ is currently trading above the T-line, it is not showing strength after the market open. A bearish reversal signal witnessed in the NASDAQ would show that the last bastion of bullish sentiment has now disappeared. Be prepared to close out long positions if the indexes start going negative Friday.

12/05 - Stock Market Comments

Candlestick analysis allows an investor to see whether the expected generalizations of market trends are actually being produced. The Santa Claus rally! Obviously the Santa Claus rally is not in effect, although there was great anticipation for it. The candlestick charts allows an investor to see what is actually going on in investor sentiment versus what is expected. Currently the Dow continues to sag but still does not show any aggressive selling, merely a pullback. This scenario also utilizes the fact that the NASDAQ is still trading above the T-line and does not demonstrate any aggressive selling. The market continues to be sector/stock specific.

12/04 - Stock Market Comments

The markets continue to reveal a lack any convincing selling. Wednesday's early selling followed by new buying illustrates the lack of permanent selling sentiment. This was also evident with the fact that numerous strong charts continue to remain strong during the Dow's pullback over the past few days. The NASDAQ has not shown the same selling urgency as the Dow, remaining above the T-line. Continue to stay in the strong charts on the long side with a few short positions in the portfolio.

12/03 - Stock Market Comments

The expected profit-taking is occurring Tuesday but mostly in the Dow. Currently, the NASDAQ and the S&P 500 are not showing any great selling pressure. Unless there is a severe selling draft Tuesday, the implication remains that this is profit-taking during an uptrend. Additional evidence is the fact that numerous bullish charts are continuing to trade bullish today, also indicating that there is not any massive selling.

12/02 - Stock Market Comments

The Dow formed a shooting star signal in Friday's abbreviated trading day, indicating the possibility of some consolidation. Monday the Dow has touched the T-line and bounced back up, showing that Monday's weakness of the Dow is merely profit-taking, the T-line is still acting as support. The NASDAQ and the S&P 500 are confirming in the fact that they are not moving one way or the other. Bottom line, investor sentiment has not changed, the uptrend is still in progress.


 

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