Daily Market Comments - April 2014
04/30 - Stock Market Comments
As Ralph Acampora expressed in our chat session last night, this market is definitely a stock picker market. That is continuing to be evident as we can see the indexes not showing any cohesiveness with each other. Although the Dow and the S&P 500 are trading above the T-line, the NASDAQ and the transportation index needed to both trade above the T-line to fully confirm an uptrend. Today, the NASDAQ is trading down, the transportation index is trading up above the T-line, and the Dow and the S&P 500 are basically flat. This clearly indicates a market trend of definite indecision.
04/29 - Stock Market Comments
After Monday's Doji's in the NASDAQ, the S&P 500, and the transportation index, what was required to indicate the uptrend would continue? The trend will move in the direction of how they open trading after a Doji. That is what we are seeing Tuesday. The Dow formed a bullish Harami Monday. It required a bullish open to confirm. Tuesday's trading is currently bringing the Dow and the S&P 500 back up above the T-line.
04/28 - Stock Market Comments
As anticipated, the selling of Friday was some expected profit-taking. Albeit relatively severe, Monday's trading indicates there is no across-the-board selling. The hard selling days actually add strength to this market uptrend. It keeps exuberance out of the market.
04/24 - Stock Market Comments
What are the typical characteristics of an uptrend? Selling in the morning and buying in the afternoon. Is Thursday a market reversal? If a daily trend is in question, move to the 10 min. chart. Currently, although there is some early selling pressure in Thursday's trading, the daily stochastics continue to reveal upward movement and there is not a compelling candlestick sell signal being formed.
04/23 - Stock Market Comments
Utilizing candlestick charts helps identify whether early-morning selling is a reversal or merely profit-taking. Wednesday's trading in the indexes was not of any great magnitude. The Dow and the S&P 500 use the 3T line for backing and filling support. At the same time, the Dow transportation index continues to trade positive. 04/21 - Stock Market Comments
Utilizing candlestick charts helps identify whether early-morning selling is a reversal or merely profit-taking. Wednesday's trading in the indexes was not of any great magnitude. The Dow and the S&P 500 use the 3T line for backing and filling support. At the same time, the Dow transportation index continues to trade positive.
04/21 - Stock Market Comments
The analysis remains the same, the charts indicate the uptrend should persist until the indexes reached the top of the trend channels. This would imply a few more days of upside potential. The Dow is currently trading above the 3T line which implies the uptrend is relatively strong.
04/21 - Stock Market Comments
Monday's trading remains consistent with the uptrend direction after the reversal of last week. Although Monday's trading does not show anything robust, it still illustrates the fact there has not been any change of investor sentiment.
04/16 - Stock Market Comments
Wednesday's positive trading is now bringing both the Dow and the S&P 500 up above the T-line. Although the NASDAQ is trading positive Wednesday, as expected after the long legged Doji that bounced off the 200 day moving average Tuesday, it is not yet trading above the T-line. Bullish strength is still required going into the close today.
04/15 - Stock Market Comments
Monday's formation in the Dow was not a reversal signal, merely an up day in a down trend. As evidenced by Tuesday's trading, not showing any great conviction to the upside, it still has to be assumed that these markets are in a down trend until there is a bullish candlestick signal and a close above the T-line. Although the Dow is trading positive, the NASDAQ is trading lower, indicating there is no major change of the current investor sentiment, the down trend has to be assumed to be continuing.
04/11 - Stock Market Comments
The markets opened lower as expected but a few of the indexes are already showing buyers stepping in. The NASDAQ opened lower, right on the lower trend line, and has started trading positive from that level. The transportation index trading below the T-line but is now back up above the T-line. The Dow and the S&P 500 are setting up hammer signals. Obviously this is still early in the day, but the initial evaluation indicates a lack of aggressive selling. Assess each chart on its own.
04/10 - Stock Market Comments
Thursday's trading as shown consolidation in the Dow, the transports, and the S&P 500, back to the T-line. This is not unexpected after a strong day Wednesday. Until there is a strong breakout one way or the other, the overall market trend still has to be assessed as being a slow upward trend. This still provides the environment for having both long and short positions in the portfolio.
04/09 - Stock Market Comments
Although the markets are trading positive Wednesday, they are not doing so with any great conviction. The fact that the stochastics are still heading in a downward direction provides an indication there is not a bottom yet to this pullback. Buying of long positions Wednesday should be done so with nimbleness. Be ready to close those positions out if this market does not show any additional strength. Continue with the same strategy of having both long and short positions in the portfolio.
04/08 - Stock Market Comments
The expected Doji day of yesterday may be in process Tuesday. The stochastics are still in a downward direction making the downside target on the Dow the 50 day moving average. The S&P 500 is trading in decisively at the 50 day moving average and the NASDAQ does not have any indication of support other than the recent lows. Continue to hold both long and short positions in the portfolio.
04/07 - Stock Market Comments
After a hard selling on Friday, it would not be unusual to see a Doji type day in the indexes Monday. This does not necessarily mean there will be an end to the current pullback, it will simply imply some profit-taking in the short positions. Continue to have both long and short positions in the portfolio. Currently the NASDAQ is trading above where it opened today. This illustrates there is some buying in this market although the markets are trading lower from Friday's close.
04/04 - Stock Market Comments
The market indexes remain in a state of definite indecision. The Dow is trading positive while the NASDAQ is trading negative. The accumulative result is that the current trend does not have a change of investor sentiment. This continues to result in the current trend not being altered. The prognosis remains the same, be predominantly long but have short positions in the portfolio.
04/02 - Stock Market Comments
Wednesday's lethargic trading on the open continues to show a lack of change of investor sentiment. The current trend, a slow uptrend, remains in progress. Although the major indexes, the Dow, the S&P 500, and the NASDAQ, are not showing any excessive strength this morning, the transportation index continues to act very strong.
04/01 - Stock Market Comments
The patterns are working exactly as expected, bullish continuation coming out of a slow curve pattern on the Dow. The NASDAQ needed to get above the T-line to show bullish confirmation, it opened at the T-line and continued to trade higher after some gap ups over the previous couple days. Long positions should be the bias of the portfolio with short positions that are still not showing strength still in the portfolio.