Daily Market Comments - May 2014
05/30 - Stock Market Comments
The current characteristic of this market remains the same, selling in the morning with bullish participation coming in later in the day. Friday's current selling is not showing any aggressiveness, merely profit-taking early in the day. Continue to stay long with the anticipation of the indexes testing the top of the trend channels over the next few days.
05/29 - Stock Market Comments
Although Thursday's trading demonstrates indecisiveness, it has not shown a change of investor sentiment for the trend. However, if Thursday's trading remains indecisive in the indexes, a Doji type day, expect some profit-taking to continue over the next couple of days of trading. Bought unless there is a severe candlestick reversal signal, consider the trend is still in an uptrend and maintain individual stock positions based upon their own charts.
05/28 - Stock Market Comments
Wednesday's early-morning selling is expected profit-taking after the markets have had for strong bullish days. The current lack of conviction in the selling implies profit-taking versus a market reversal. Stochastics are still in an upward direction. Keep in mind, most of the indexes have broken out through resistance levels. It would not be unusual to see a day or two of backing and filling to see if the resistance levels are not going to act as support. As long as are still is numerous stocks trading positive such as AAPL, that indicates there is not a massive selling in the markets.
05/27 - Stock Market Comments
The Doji sandwich potential in the Dow last Friday was not quite the same magnitude as the trading day prior to the Doji. However, it is not unusual to see the next two days after a Doji produce the same magnitude move as the day prior to the Doji. Knowing that, the expectation of a positive day Tuesday was relatively high, plus the fact that the results of a Doji sandwich usually indicates more upside potential. Currently all the indexes are demonstrating strength with the expectation of testing the top of trend channels. Stay predominantly long.
05/23 - Stock Market Comments
The positive trading in the Dow Friday makes the potential of a Doji sandwich very viable. This formation would produce high probabilities of this uptrend continuing. The other indexes also confirm more strength in these markets, especially the transportation index confirming a J-hook pattern moving up into new territory. Stay predominantly long.
05/22 - Stock Market Comments
The Dow is trading slightly positive Thursday after some consolidation but the more informational charts are the NASDAQ pushing on the 50 day moving average and the transportation index doing a T-line crunch into its recent resistance level at the highs. If either of these indexes breakout, it will provide more evidence that investor confidence continues to remain bullish.
05/21 - Stock Market Comments
Trend analysis becomes much easier to assess using candlestick signals. However, as we have seen in the recent past months, the trend has been difficult to make large profits. The current market conditions continue to reveal the trend inconsistency. Tuesday, the Dow down big, getting all back today.
05/20 - Stock Market Comments
Tuesday's backing and filling is not causing any concern based upon the nature of this market for the past two months. All the indexes showed buy signals at the bottom of their trend channels. They are currently trading in the trend channel range. Tuesday's early selloff continues to reveal the lack of bullish exuberance.
05/19 - Stock Market Comments
Although the Dow has been trading negative most of the morning, the other indexes, the NASDAQ, the S&P 500, and especially the transportation index have been showing good strength, making the uptrending channel the main assessment focus for this trend. There are numerous J-hook patterns setting up, indicating most of the selling should be over.
05/16 - Stock Market Comments
The evening star signal that formed in the Dow earlier this week got confirmation Thursday. However, the Dow and the S&P 500l sold off exactly to the 50 day moving average before seeing buying. The NASDAQ hit a low that corresponded with a support level of the previous lows over the past few weeks.
05/15 - Stock Market Comments
After Wednesday's Evening Star signal in the Dow but a close just above the T-line, Thursday's open would indicate which direction they would take the market. A lower open would make the prospects of a pullback to the lower end of the current trend channel very likely.
05/14 - Stock Market Comments
Profit-taking day? Although the indexes are trading lower, the Dow and the S&P are sitting right on the 3T line and the NASDAQ is doing a Doji day right on the 3T line, not showing any compelling selling after the open. As long as the indexes remain above the T-line, the uptrend is still in progress.
05/13 - Stock Market Comments
Although the markets have the opportunity to do some profit-taking after Monday's big price move, the fact that the indexes are now trading into new Heights territories after three months of trading below the resistance level indicates investor sentiment has now become bullish again. Current up side targets imply the markets should have at least another two or three days of upside move before any consolidating.
05/12 - Stock Market Comments
With the Dow, the transportation index, and the S&P 500 trading above the resistance levels and the NASDAQ gapping up through the T-line after a left/right combo, investor sentiment indicates the resistance levels are not acting as resistance anymore. As long as the market indexes trade above the recent resistance levels, the next phase of this uptrend will stay in motion.
05/08 - Stock Market CommentsThursday's positive trading shows more compelling evidence the Bulls are taking control. Wednesday, although the Dow traded positive, the NASDAQ traded lower but did a hammer type signal. Thursday's positive trading in the NASDAQ is creating a bullish engulfing signal at the bottom of the trend channel. The transportation index as held the T-line over the past few days and now is contending with the recent highs. A breakout of the transportation index would provide high probabilities a new uptrend would be in progress.
05/06 - Stock Market Comments
Monday the Dow did a hammer type signal and the NASDAQ did a piercing signal. Both required positive trading Tueday to indicate a strong bullish uptrend in progress. A lower open after a hammer type signal reveals the Bulls did not take control.
05/02 - Stock Market CommentsFriday's trading continues to demonstrate a solid uptrend environment in the markets. Early selling followed by more bullish participation. Currently the Dow is nudging a breakout area. A breakout through these levels, after a few months of consolidation, would make for the possibility of another strong trend move. Stay predominantly long, but there are still some short positions that should remain in the portfolio.
05/01 - Stock Market CommentsThursday's early selling in the markets is doing so right at new high breakout areas for most of the indexes. There probably will be some resistance at these areas, however the J-hook pattern in the Dow continues to imply more upside, meaning it should move up into new record high areas. Continue to stay predominantly long but with a few short positions in the portfolio.