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Daily Market Comments - June 2014


06/30 - Stock Market Comments


The lack of upside trading in the Dow is not changing the overall market trend based upon the positive trading in the NASDAQ, the transportation index, and the S&P 500. The charts on all the indexes continue to reveal investor sentiment has not changed over the past few months, meaning no dramatic selling indications other than profit-taking during a slow uptrend. This market environment continues to produce strong candlestick breakout situations without the fear of a strong market selloff.

06/27 - Stock Market Comments


The Dow trading down, the S&P 500 trading flat, the NASDAQ trading positive. Investor sentiment has not changed, the current sideways/slow uptrend remains in progress still making this a very stock/sector specific trading market. Fortunately, this allows for simple candlestick scanning techniques to find the best bullish and bearish charts.

06/26 - Stock Market Comments


Although the Dow traded positive Wednesday, it did not close above the T-line. The other indexes showed more strength, closing above the T-line. However, as seen in Thursday's trading, there was no follow -through bullish confirmation. The sideways mode of the market is revealing a lack of decision/decisiveness on either the Bulls or the bears convictions. The nature of the market continues to demonstrate a very sector/stock specific trading environment. There are still bullish charts acting extremely well.

06/25 - Stock Market Comments


Tuesdays strong reversal signal in the markets currently is not getting confirmation. However, for the uptrend channel to remain a predominate analytical factor, Wednesday's positive trading requires positive trading going into the close. If the markets come back down through Wednesday's open, look for additional consolidation, probably back to the 50 day moving average on the Dow. There will be numerous positions that closed below the T-line Tuesday but will have to be reevaluated if they were closed out yesterday and now trading back up above the T-line.

06/24 - Stock Market Comments


The strength in this market is revealed by the fact that the T-line consistently acts as a support during this uptrend. The transportation index is bouncing up off the T-line Tuesday while the Dow is trading positive after using the T-line as support earlier. During these market conditions, the prognosis remains the same, stay long until the appearance of a severe sell signal.

06/20 - Stock Market Comments

Friday's positive trading is just confirming the J-hook pattern that has been developing in the markets over the past few days. Obviously the markets are in a slow steady uptrend. This provides the opportunity for individual charts to perform based upon pattern breakouts or providing opportunities to trade positive chart patterns that have pulled back to support levels. The prognosis remains the same. Stay long until a dramatic reversal signal appears in the indexes.

06/19 - Stock Market Comments

Thursday's profit-taking is not unexpected after the big move yesterday late in the day. The important factor in Wednesdays trading showed bullish confirmation in all the indexes and closed above the T-line. The Dow, S&P 500, and the NASDAQ all forms J-hook pattern setups. This would imply more upside. Stay predominantly long with any short positions in the portfolio continuing to show weakness in these market conditions.

06/18 - Stock Market Comments

Although the indexes are trading very in decisively this morning, note the transportation index. The transportation index is not going to move higher unless the longer-term outlook is viewed as being positive. Continue to utilize the strong individual stock charts to take advantage of the lack of bearish sentiment.

06/17 - Stock Market Comments

The NASDAQ is producing the most bullish chart of the indexes. Yesterdays left/right combo right at the T-line was a good indication the bears could not get control of the market. Tuesday's bullish trading in the indexes is confirming the T-line support in the NASDAQ as well as influencing the other indexes.

06/16 - Stock Market Comments

With the number of stocks that continue to trade positive, Monday's weakness so far in the indexes reflects profit-taking versus any major change of investor sentiment. These market conditions still suggest remaining predominantly long in good charts while also having a small percentage of the portfolio in short positions.

06/13 - Stock Market Comments

The current indecisive trading in the indexes merely indicate resting going into the weekend. Any long positions being held should have compelling chart patterns. However, currently the uptrend in the markets are not doing anything it hasn't done over the past six months, steady uptrend followed by sharp selling, then steady uptrend.

06/12 - Stock Market Comments

The markets are showing definite profit-taking today with the transportation index leading the way to the downside. Note how the transportation index has breached the T-line convincingly. The Dow has not held at the T-line and the S&P 500 is testing it right now. The NASDAQ, although weaker, is still above the T-line and is not showing any decisive selling.

06/11 - Stock Market Comments

Although the Dow is trading lower Wednesday, the NASDAQ is showing that buying remains in that market since the open Wednesday. The index causing major concern is the transportation index. An evening star signal with the index currently trading below the T-line. If the transportation index closes below the T-line Wednesday, start watching for potential reversal/profit-taking in the other indexes.

06/10 - Stock Market Comments

The Doji type day in the indexes yesterday gave the possibility of some profit-taking Tuesday. Currently, the Dow, the NASDAQ, and the S&P 500 are not showing any severe selling. The transportation index is forming a possible evening Star signal, but it has not yet closed below the T-line. The transportation index will be the telltale indicator. If it starts showing weakness over the next couple of days, expect the rest of the indexes to follow suit. As of now, stay long but be nimble.

06/09 - Stock Market Comments

The J-hook patterns in the indexes continue to demonstrate investor sentiment having a high probability of remaining bullish. With this observation, many of the candlestick chart patterns, frypan bottoms, J-hook patterns, etc. are producing much larger profits than the average uptrending stocks. Continue to stay long, especially in the pattern breakout situations.

06/06 - Stock Market Comments

What is normal investor reaction in an uptrend? The longer the uptrend process, the more confident most investors become. Additionally, the longer an uptrend persists, the more panicky short position holders become. Note that the Dow has broken out through a recent resistance level and there is some evidence of exuberance starting to build up. This is a sign to start looking for profit-taking/sell signals.

06/05 - Stock Market Comments

The candlestick signals continue to show the characteristic of this market remains the same. Slow non-zoom steady uptrend with backing and filling during the trend. this continues to allow candlestick patterns to perform nicely.

06/04 - Stock Market Comments

Although the Dow is slightly negative, it can be seen that it has already use the T-line Wednesday as a support level before bouncing back up. More visually compelling is the fact that the NASDAQ again open lower, on the T-lines and has consistently moved positive. Currently, there is no indication of any change of investor sentiment that is creating the slow uptrend. The indexes using the T-line as support provides more credence the uptrend is still solidly in progress.

06/03 - Stock Market Comments

The visual elements of candlesticks provide a much more accurate assessment of the market trends. Tuesday the Dow is trading lower. Is this a reversal or merely profit-taking? That is better assessed when looking at the NASDAQ chart. Note it opened lower but is showing bullish participation since it opened. This clearly implies there is no concerted selling occurring in Tuesday's trading. The current uptrend remains in progress.

06/02 - Stock Market Comments

The markets appear to be in a resting phase. Although there is some weakness and Friday and Monday's trading so far, there are not any signs of investor sentiment changes. The NASDAQ pullback but used the T-line as support. The other indexes appear to be consolidating. The Dow is currently showing some waffling at the recent highs but not showing any decisive selling. Continue to stay predominantly long.


 

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