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Daily Market Comments - August 2014


08/29 - Stock Market Comments

The Dow trading down and the NASDAQ trading up indicates there is no change of investor sentiment, the current trend remains in progress. The analysis remains the same, this is a sector specific market. Continue to hold long positions but don't let backing and filling scare you out of positions. Be sure to use reversal signals as your decision-making process, not merely selling days in uptrends.

08/28 - Stock Market Comments

A healthy market includes profit-taking days. The question was asked this morning whether the lower open in the Dow was an indication of a major change of investor sentiment. The first analysis still requires assessing which direction the market is moving.

08/27 - Stock Market Comments

The uptrend remains in progress. It is not unusual to see profit-taking occur early in the day during an uptrend, followed by buying later in the day. How can it be assessed that the early trading is merely profit-taking versus a true reversal? If there is a change of investor sentiment during an extended uptrend, the premarket futures will show a definite change before the market opens. Stay predominantly long and be nimble.

08/26 - Stock Market Comments

Although the indexes are in the overbought condition, there has not yet been any evidence of exuberance. The slow steady uptrend of the Dow implies that it wants to come back up into the trajectory of the original trend. Continue to stay long but with the markets in the overbought condition, be diligent as far as watching for profit-taking.

08/22 - Stock Market Comments

Expect a consolidation day on a Friday in the summer after a strong move to the upside this week. The market character remains the same, very stock/sector specific.

08/21 - Stock Market Comments

A consolidation day is in progress. This is evident by the fact the Dow is trading positive and the NASDAQ is slightly negative. Merely demonstrates a shifting of money in the markets but no change of investor sentiment. Continue to stay long.

08/20 - Stock Market Comments

It is not unusual to see some profit-taking as we are witnessing Wednesday in today's market. However, currently there is no great selling pressure. Expect some lower trading in the morning which is not unusual during an uptrend, with expected buying coming in later in the day. Stay predominantly long, closing any long positions should require a substantial sell signal.

08/19 - Stock Market Comments

The positive trading in the Dow is currently showing at the 50 day moving average is not going to act as resistance. There is the potential for some profit-taking but the stochastics are still in an upward direction and not quite into the overbought condition. The trend kicker signal in the NASDAQ Monday, breaking through recent highs, is a good indication that bullish strength should continue this uptrend. Stay predominantly long. Any short positions remain in the portfolio at this time should show compelling weakness.

08/18 - Stock Market Comments

The bullish trading Monday is creating a Doji sandwich and the S&P 500 and the transportation index. The gap up in the NASDAQ is forming a trend kicker signal. The Dow is staying above the T-line, looking for the 50 day moving average to be the next viable target. Continue to hold long positions, there are numerous candlestick pattern breakouts in progress.

08/13 - Stock Market Comments

After Tuesday's consolidation, a Doji right on the T-line, Wednesday's open was an important piece of information, it was illustrating whether the initial reversal was merely a bounce with the possibility of heading back to the 200 day moving average or the bullish trend was going to continue, making the 50 day moving average the likely target for the Dow.

08/08 - Stock Market Comments

Wednesday's positive trading is creating some potential reversal signals in the markets. However, the important part of that statement is the word "potential". The indications of buying today have the possibility of creating reversal signals but keep in mind, the day is not over. The NASDAQ is forming a bullish engulfing signal and not moving too far away from the 50 day moving average.

08/07 - Stock Market Comments

Be aware of the down trend syndrome, trading positive in the morning and selling off in the afternoon. Currently, the indexes are not revealing anything that would demonstrate a change of investor sentiment of the current down trend. The prognosis remains the same, long positions should be demonstrating good chart strength and have numerous short positions in the portfolio.

08/05 - Stock Market Comments

Monday's strength in the markets required bullish confirmation today, which obviously the weaker trading is not confirming. The lack of direction in the market indexes continues to make this a sector/stock specific trading arena. Continue to have both long and short positions in the portfolio until there is evidence of a trend direction

08/01 - Stock Market Comments

 Although the indexes are trading relatively in decisively today, there is no indication of any change of the bearish sentiment in this down trend. Unless there is a dramatic reversal today, the down trend should remain in progress. Continuing to add short positions to the portfolio is suggested. There are bullish chart patterns still in progress but the strength of the bullish moves are obviously diminished based upon the negative sentiments in the markets.


 

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