Daily Market Comments - February 2014
02/28 - Stock Market Comments
The Dow is currently in the process of breaking out of a slow curve pattern off the 50 day moving average. This would imply not only more upside, but a breakout to the upside, or exuberance. Stay long but if the markets start showing dramatic bullishness next week, be prepared to start taking profits.
02/27 - Stock Market Comments
Although the buying pressure in the markets is not dramatic, there still is no evidence of any selling pressure, allowing the slow uptrend to continue. This also is allowing strong chart patterns to continue to perform, such as the recommendation for PEIX. Continue to stay predominantly long until there is a dramatic reversal in investor sentiment, a strong candlestick sell signal.
02/26 - Stock Market Comments
Observing the obvious, this uptrend remains solid in the fact that there is no exuberance being exhibited. The uptrend consists of positive days and profit-taking days. This illustrates profit-taking occurring during the uptrend. Fortunately, this type of market condition allows strong candlestick chart patterns to continue to form, providing inordinate profits based upon investor sentiment breaking out price moves.
02/25 - Stock Market Comments
The market prognosis remains the same, although the indexes are selling off Tuesday, there is no sell signal. This implies merely selling during an uptrend. There continues to be numerous stock charts that are trading positive. The trend is your friend until there is a dramatic reversal signal.
02/24 - Stock Market Comments
The strength in this market is the fact that when they consolidate, they are not producing any candlestick sell signals. Continue to stay long until there is a definite reversal signal in the markets. Currently, the J-hook pattern is in effect, indicating more upside.
02/21 - Stock Market Comments
The J-hook pattern is in progress in the Dow, indicating the 50 day moving average will not act as resistance. The S&P 500 has bounced up off the T-line as a small J-hook pattern which would also imply that the resistance level of the recent highs will not act as resistance. The J-hook pattern in all of the indexes provide a good indication the uptrend will continue.
02/20 - Stock Market Comments
The Dow has used the T-line as a support. As long as the Dow does not close below the T-line Thursday, consider Wednesday as a profit-taking day. The uptrend should remain in progress. The same scenario for the S&P 500. Once again, the T-line is a very high probability trend tool.
02/19 - Stock Market Comments
The Dow had the opportunity to show some profit-taking after an indecisive trading day at the 50 day moving average area. As seen Wednesday, the 50 is acting as support versus resistance. The S&P 500 had the same opportunity, a Doji that might imply profit-taking back to the T-line at the markets opened and traded lower Wednesday.
02/18 - Stock Market Comments
The market characteristic remains the same. The NASDAQ is up strong, the Dow is down strong, and the S&P 500 is flat. This continues to indicate a lack of change of investor sentiment, indicating the current trend will remain in progress. The prognosis remains the same, this is still a sector/stock specific market.
02/13 - Stock Market Comments
Candlestick charts illustrate more clearly whether a bearish open in the markets is a selloff or merely profit-taking. Thursday's candles reveal lower opens, but immediate buying. This was especially true in the NASDAQ chart. This reveals two major factors. First, it indicates on a short-term basis that individual stocks can be bought, especially when they have opened at the T-line and immediately started trading positive. Secondly, it reveals there has not been a change of investor sentiment in the overall market trend.
02/12 - Stock Market Comments
The Dow is trading slightly lower, the S&P 500 is trading flat and the NASDAQ is trading positive. This is a clear indication there has not been any change of investor sentiment. The current trading strategy should remain in progress, stay with the charts that continue to show strong chart patterns.
02/11 - Stock Market Comments
The Doji that formed in the Dow and the S&P 500 yesterday allowed for the expectation of a Doji sandwich upon a positive open this morning. Whether the magnitude of today's trading will equal the same magnitude as the day prior to the Doji is less important than being able to establish additional long positions on the open with confidence.
02/10 - Stock Market Comments
Simple analysis, as long as the indexes continued to trade above the T-line, consider the uptrend in progress. Currently, with the Dow trading slightly lower and the NASDAQ trading higher, this continues to indicate there is no change of investor sentiment. The uptrend should be in progress. Also, the markets still remain very sector/stock specific. Stay with the strong sectors on the long side, i.e. biotech, auto parts.
02/07 - Stock Market Comments
The sign of bullish sentiment is positive trading in the face of negative announcements, the jobs report. Friday's trading required bullish trading to show that the T-line was not going to act as resistance after the the bullish confirmation in all the indexes Thursday. There still remains the current market characteristic of being sector specific. Numerous short positions were closed out over the past couple of days. Long positions should be reestablished in the strong chart patterns.
02/06 - Stock Market Comments
Wednesday's Doji's in the indexes made Thursday's decision-making very easy, the markets were going to move in the direction of how they opened Thursday. The T-line remains the obvious first target. At that level, it will be important to see what type of signal occurs. The T-line will indicate whether this was just a bounce in a down trend or if a new uptrend is in progress.
02/05 - Stock Market Comments
Although the markets traded positive Tuesday, forming bullish Harami's, a positive open Wednesday was needed to confirm the Harami's. As witnessed in Wednesday's trading, bearish sentiment is still in control of the market. Short positions should be added to the portfolio and any long positions need to show convincing reasons to stay long. Fortunately, there are charts that continue to perform as the patterns indicate,PRAN, TKMR.
02/04 - Stock Market Comments
Tuesday's positive trading still needs to be watched closely. If the markets go negative Tuesday, expect the continuation of the panic selling that was exhibited at the end of Monday's trading. On the other hand, bullish Harami's would indicate the selling has stopped, the selloff is over. If the market stabilizes over the next couple of days, expect the continuation of a very specific sector/stock trading market.
02/01 - Stock Market Comments
The 200 day moving average still remains a viable target for the Dow. The NASDAQ, which had been showing strength on a daily basis during this market decline is now indicating a failure at the T-line, forming a bearish J-hook pattern. It is confirming the weakness that has been indicated by the Dow. Long positions need to remain convincingly long while adding some more short positions to the portfolio.