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Daily Market Comments - January 2014


01/31 - Stock Market Comments

Where do most people sell? At the bottom! What would imply that the markets are near the bottom? Stochastics in the oversold area and Thursdays trading created bullish Harami's in the Dow with an inverted hammer gap up in the NASDAQ. There is now evidence that buyers are stepping in at these levels.Although the Dow is trading off significantly Friday, the NASDAQ, after opening negative has been trading back up. This would imply there is not a full-scale bailout occurring in Friday's market.

01/30 - Stock Market Comments

Thursday's trading is currently creating a bullish Harami in the Dow and the S&P 500. These signals require confirmation. However, Wednesday's inverted hammer in the NASDAQ is being confirmed by a very large gap up Thursday.

01/29 - Stock Market Comments

The lack of a reversal signal in Tuesdays trading should have kept everybody alert for more selling. Wednesday's premarket futures were going to be the confirmation of whether the market was heading up or heading down. Obviously, with Wednsday's world news, the market is continuing to sell off. Be ready to close any long positions that are showing weakness and adding short positions to the portfolio. There still will be sectors that are continuing to act strong but the majority of the sectors will be selling.

01/28 - Stock Market Comments

Although the markets are trading positive Tuesday, there is still not any signals that indicate a change of investor sentiment. This would warrant still being careful on any long positions being bought. However, there are bullish signals being created in individual stocks. The current strategy should be buying these signals but keeping a very close watch as far as coming back out of long positions.

01/27 - Stock Market Comments

Be careful, the crack is investor sentiment on Friday will need to see if it continues Monday. Although the Dow is trading positive, the NASDAQ has not shown any change of investor sentiment. It will be important to see whether the market holds flat or slightly positive for the rest of the day.

01/24 - Stock Market Comments

Unless Friday's selling demonstrates a very strong reversal intraday, there will be more consolidation over the next few trading days. The Dow was already heading down but the NASDAQ, until Friday was maintaining its upward trend by continuing to close above the T-line. Friday's gap down through the T-line after Thursday's indecisive trading signal if this clearly reveals strong bearish sentiment in all the indexes. Close long positions that are confirming sell signals. Add some short positions him to the portfolio.

01/23 - Stock Market Comments

Bad news out of China, higher unemployment numbers, strong selling on the open. Should we be closing out long positions? That is the common question on a day like Thursday. Fortunately, with candlestick analysis, decisions can be made with better assessments based upon the candlestick signals/formations demonstrating what is occurring after prices have opened.

01/21 - Stock Market Comments

The characteristic of the trend has not changed, Tuesday the Dow is down while the NASDAQ and the S&P 500 are trading positive. This is been the same characteristic of the past few trading days. Nothing has changed as far as investor sentiment. The market is in a slow uptrend and remains very sector/stock specific.

01/17 - Stock Market Comments

Nothing has changed, the uptrend remains in progress. The Dow is trading positive Friday while the NASDAQ is trading negative. Still an indication there is no major change of investor sentiment. Continue to stay long but would not be concerned about any positions trading slightly lower today, merely profit-taking.

01/16 - Stock Market Comments

Once again the lack of any change of investor sentiment is evident in the fact that although the Dow is trading lower, the NASDAQ is trading positive. This is good evidence that there is not any major change in the overall sentiment of the market. These market conditions continue to be sector/stock specific. This is illustrated in the numerous frypan bottom, slow curve, and J-hook patterns that have been producing good profits. Stay predominantly long.

01/15 - Stock Market Comments

The bullish Harami's are obviously confirming in both the Dow and the S&P 500. Tuesday, although the NASDAQ did not do a reversal signal, the magnitude of its bullish move brought it well above the T-line. Wednesday's positive trading in all indexes clearly indicate bullish sentiment remains positive now that all indexes are back up above the T-line. Stay long. Do not hesitate to have one or two short positions in the portfolio.

01/14 - Stock Market Comments

The markets have done this before, after a hard selling day during the uptrend, the buying follows immediately. This is healthy for an uptrend in that it takes any enthusiasm out of the market. This creates a much more solid uptrend. Closing out weak positions Monday allows for the re-establishment of long positions in higher probability trades.

01/10 - Stock Market Comments

The market is really liked the drop in the unemployment rate! The number of people that have given up looking for jobs got bigger. The number of new jobs created was not all that great. Is this good news or bad news? The markets will give us that answer. Obviously, the market consensus was not impressed was the jobs report.

01/08 - Stock Market Comments

The jobs report apparently did not enthuse the market. However, the majority of the selling is in the Dow, the S&P 500 is relatively flat while the NASDAQ is actually trading positive. Nothing has changed the overall investor sentiment of the market. The prognosis remains the same, slow uptrend the market as long as the indexes remain above the T-line and the market is very stock/sector specific. Use candlestick signals and patterns to your advantage.

01/07 - Stock Market Comments

Once again the T-line has become an important trend factor. Tuesday's positive trading on the Dow and the S&P and the NASDAQ all provide visual support at the T-line. As long as the markets remain above the T-line, the uptrend remains in progress.

01/06 - Stock Market Comments

With the Dow is trading above the T-line and the NASDAQ trading below the T-line, the first day of trading for the new year, not including last week's holiday trading, does not show any change of current sentiment of the trend. The lack of vitality in Monday's selling would indicate that some of the profits from last year had been executed last week and today's trading is not anything more than some continuation of the profit-taking.

01/03 - Stock Market Comments

Although Thursday's selling was relatively excessive, there were no reversal signals in the indexes and they did not close below the T-line. This was implications that Thursday's profit-taking was merely profit-taking. Friday's positive trading, provided it remains positive, reveals the T-line is still acting as a support level, the uptrend remains in progress.

01/01 - Stock Market Comments

The markets are experiencing the expected profit-taking of profitable trades that have been pushed into 2014. As already seen this morning, many stocks sold off but the strong charts have immediately come back up. Continue to analyze the overall trend, the uptrend remains in progress until a candlestick sell signal and a close below the T-line occurs in the indexes.


 

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