Daily Market Comments - July 2014
07/31 - Stock Market Comments
Thursday's trading is a good example why having short positions added to the portfolio becomes prudent. As the candlestick charts were demonstrating over the past few trading days, that although the trading had remain in the uptrending channel, there was not any convincing evidence that the uptrend was still not in progress but there was not any convincing evidence there was any great bullish pressures.
07/30 - Stock Market Comments
Wednesday the Dow is trading lower, but the NASDAQ is trading higher and the transportation index is doing a potential bullish Harami. This disparagy between the indexes continues to reveal no dramatic change of investor sentiment, merely rotation of sectors. Continue to stay with the strong chart patterns, NQ and TWTR have produced huge profits today based upon the chart patterns indicating buying pressure over the past few days. Stay long, be selective, and be nimble.
07/29 - Stock Market Comments
The Dow, NASDAQ, and S&P 500 are all currently confirming the support line of the trend channel. Tuesday's positive trading is creating MorningStar type signals. However, the transportation index is still not showing any great strength. Obviously, the indexes need to remain positive today to confirm the trend channel support. There are strong kicker signal's today MDSO and AKS. Remain nimble.
07/28 - Stock Market Comments
The selling of Friday, which produced or confirmed candlestick sell signals, created to opportunities on today's open. A positive open would have been illustrated the trend channel was acting as support or a lower open would've illustrated the bottom of the trend channel had been breached. As can be seen, Monday's bearish trading has reached the lower edge of the trend channel, indicating more downside.
07/25 - Stock Market Comments
Although the Dow is trading much lower, the other indexes indicate there is no massive selling. The transportation index is trading positive. The NASDAQ and the S&P 500 are trading lower but they are trading above where they opened and still are trading above the T-line. A Friday in the middle of the summer without any indications of a change of investor sentiment, continue to hold the good positions.
07/24 - Stock Market Comments
A summer day! No aggressive buying, no aggressive selling, a resting day. They are already at the beaches and the lakes. Currently there is no indication of any change of investor sentiment. The NASDAQ is trading down slightly, the Dow is trading up slightly and the transportation index is still maintaining good strength. Any stock positioning still remains sector/stock specific.
07/23 - Stock Market Comments
The indexes are still providing evidence that there is no change of investor sentiment. Although the Dow is trading lower, it has already bounced up off the T-line while the NASDAQ, transportation index, and the S&P 500 are all trading higher. The uptrend remains in progress. Continue to use the strong chart patterns.
07/22 - Stock Market Comments
The candlestick trend analysis remains the same, the indexes are trading up and down but in the trend channel range. The transportation index is showing good strength, moving to recent highs. The NASDAQ has done a best friend signal off the T-line, making a J-hook pattern very likely. This would imply there is still more uptrend in this market if the NASDAQ could breakout into new highs over the next few trading days. Stay long.
07/21 - Stock Market Comments
Monday's trading remains consistent with the nature of this uptrend, nothing showing strong compelling buying but still an uptrend. Although the Dow has backed off, the transportation index and the S&P 500 are showing any great selling pressure. Stay long as long as these markets remain above the T-line.
07/18 - Stock Market Comments
Friday's positive trading does not necessarily tell us yet that the selling is over, however when analyzing the current uptrend, especially in the Dow, the market tells us that it goes to the top of this trend channel and then back down to the bottom of the trend channel. Thursday's selloff move back to approximately the bottom of the trend channel and today's buying so far reveals the possibility of the bottom of the trend channel continuing to act as support.
07/17 - Stock Market Comments
The market characteristics remain the same, a slow uptrend with no great conviction. Currently, the market indexes are trading relatively flat but that is after they've already done some consolidation so far this morning. Continue to stay with the strong charts.
07/16 - Stock Market Comments
The Doji sandwich formation in the DOW indicates more pressure on the upper trend channel. Obviously this implies no massive selling occurring in this uptrending market.
07/15 - Stock Market Comments
The market indexes continue in its obvious trend, indecision but no signs of a reversal. Although the uptrend is persistent, the market is not moving up across-the-board. The market remains a very sector/stock specific trading environment.
07/14 - Stock Market Comments
Monday's positive trading was somewhat expected based upon the lack of enthusiasm, hammer type signals on Friday, showing that the sellers were not pushing the markets down away from the T-line. Currently, all the indexes are back up in the midrange of their upward trend channel. This would imply the next target is the top of the trend channel, meaning a few more days to the upside.
07/11 - Stock Market Comments
The markets continue to show a mode of indecision. The Dow and S&P 500 are trading down, the NASDAQ is trading higher. The transportation index is trading relatively flat. This continues to produce evidence that there is no dramatic buying pressure as well as no dramatic selling pressure, making profitability in this market sector/stock specific.
07/10 - Stock Market Comments
A close at the lower end of the indexes trading range today would put them below the bottom of the uptrending channel. This would imply a major change of investor sentiment over the past four months. However, today's selling appears to be a knee-jerk reaction to the international banking news. A close near the top of the trading range today would indicate the knee-jerk reaction had dissipated and the uptrending channel would be made stronger with the indication the buyers continue to step in on weakness. Indecision in the markets have made the mining stocks a strong sector.
07/09 - Stock Market Comments
Tuesday's selling brought the indexes back down toward the bottom of their upward trend channel. The only index that indicated the sellers had not taken complete control was the transportation index. Wednesday, it's positive trading is clearly indicating the upper trend channel remains in progress and the Dow, NASDAQ, and S&P 500 are currently forming potential bullish Harami's, implying all the indexes could be maintaining the trend channel. If positions were stopped out Tuesday because of closes below the T-line, be prepared to repurchase if they start closing back up above the T-line.
07/08 - Stock Market Comments
Once again, the Japanese Rice traders sage advice of letting the market tell you what the market is doing has come back into play. As can be seen in all the indexes, when they hit the top of their trend channel they started selling off. The likely target for the indexes is back to the bottom of the trend channel. In the case of the NASDAQ, it may already be back to the bottom of the trend channel. Look for numerous individual stock charts to pullback to obvious support levels such as the 50 day moving averages.
07/07 - Stock Market Comments
07/03 - Stock Market Comments
Seasonality, meaning an effect on price movement based upon time, can be applied to Monday's trading. If prices moved up just prior to a long weekend, usually they will back off just after a long weekend. If prices moved down the day before a long weekend, prices usually move back up the day after a long weekend.
Although the indexes are trading positive, there is a lot of profit-taking occurring an individual stock positions. This obviously is not unusual prior to a long weekend. With only a half of a day of trading in the market Thursday, more than likely many of the traders will square their books early today and then head for the beach. Stay long as long as there is not a strong sell signal in individual positions.
07/02 - Stock Market Comments
Although there is no great enthusiasm in Wednesday's market trading, it does reveal that investor sentiment is still bullish, albeit relatively slow today. This continues to allow good positions to proceed with their price movements. The slow uptrend of this market is still characterized by being very stock/sector specific. Continue to stay long in charts that are not revealing potential sell signals.
07/01 - Stock Market Comments
The NASDAQ may be showing signs of exuberance with a gap up in the overbought condition, however the stabilizing conditions are revealed in the Dow, S&P 500, and the transportation index that are showing good bullish action after some consolidation. Be careful of to much buying Tuesday, but continue to stay long in positions that are not yet showing any signs of profit-taking.