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Daily Market Comments - September 2014


09/30 - Stock Market Comments

The markets continue to show some indecisiveness, however it is doing so at what appears to be a bottoming area for the indexes. After the pullback, the basic characteristic of the market has reverted back to being very stock/sector specific. These market conditions still warrant having both long and short positions on in the portfolio.

09/29 - Stock Market Comments

Note how the indexes all opened lower Monday but immediately started showing buying. This was much more evident on the graphics of candlestick charts. Currently the Dow and the transportation index has used the 50 day moving average as a support level once again. Now they are trading at the top end of their trading range, a clear indication the 50 day moving average is acting as support. The indexes continue to trade below the T-line but are showing definite bottoming/buy signals.

09/26 - Stock Market Comments

The dow trading positive Friday is showing support at the 50 day moving average. However, the NASDAQ has come up to the 50 day moving average and backed off. This still makes the market trend relatively indecisive with obviously a bearish bias. Continue to have short and long positions in the portfolio. The market trend in general is not going to help or hinder individual stock prices. This market remains very stock/sector specific.

09/25 - Stock Market Comments

Candlestick charts allows an investor to evaluate whether all the stars are in alignment. Yesterdays bullish trading created a bullish engulfing signal in the Dow, a Morning Star signal in the NASDAQ. Why was it crucial to see bullish confirmation. The reason there was suspicion that yesterdays bullish trading might not be a full-scale reversal was due to the fact that the stochastics are still in a downward direction.

09/24 - Stock Market Comments

Wednesday's positive trading doesn't necessarily mean the down trend is over, however it does indicate the down trend is not going to be a complete bailout situation. Although the market is trading higher Wednesday, the T-line is still a factor that needs to be breached before the down trend is considered to be over. Continue to have the portfolio position with short positions and long positions still need to be demonstrating good uptrending charts.

09/23 - Stock Market Comments

Remember the likely price movements. In a down trend, it is not unusual to see buying in the morning and selling in the afternoon. The opposite is true during an uptrend. After a big down day like we saw yesterday, it is not unusual to see short covering/a bounce. If you are buying based upon a candlestick buy signal or shorting based upon a candlestick sell signal, the trend will continue until you see opposite signal.

09/22 - Stock Market Comments

The Dow formed a shooting star signal on Friday. The S&P 500 formed a Doji and the NASDAQ formed a dark cloud. Monday's selling confirms those sell signals, implying a selloff back to the nearest support levels, the T-line for the Dow and the 50 day moving average for the NASDAQ. Expect some more downside over the next few days.

09/19 - Stock Market Comments

The market indexes continue to firm the J hook pattern. Being a Friday, anticipate there might be some profit-taking before the end of the day but that should not indicate any change of investor sentiment of the current uptrend.

09/18 - Stock Market Comments

Thursday's positive trading especially in the Dow and the S&P 500 illustrate a Doji sandwich breaking out into new territory. This would be a strong implication that after a few weeks of consolidation, wave 2, wave three is now in progress. Unless there is a severe change of investor sentiment, meaning the markets come back down through their opens Thursday, the probabilities suggest more upside. Stay predominantly long, any short positions should have very compelling reasons to stay short.

09/17 - Stock Market Comments

The bullish sentiment of yesterday continues to be confirmed today with the transportation index providing the most compelling chart. For the short term, Wednesday's trading andTuesdays trading illustrate a bullish decision for the markets after a few weeks of indecisive movement. This obviously puts the bias towards the bullish side but continue to hold short positions that have not participated in the up move over the past two days.

09/15 - Stock Market Comments

The indecisive trading is still obviously in a downward/slow trend. The NASDAQ is trading off almost 50 points while the Dow is trading positive six points, continuing to indicate there is no consensus in the markets as far as a hard selloff. Nothing has changed from the prognosis of the past few weeks, stay both long and short in the portfolio.

09/10 - Stock Market Comments

The selling of Tuesday is seen some residue selling Wednesday but not with the same magnitude. Currently the Dow is trading in decisively and appears to have supported so far on the 20 day moving average. Doji's at the end of the day in the indexes would indicate merely some profit-taking at these levels versus a change of investor sentiment. Even though we or slightly below the T-line, it appears as if the selling pressures are not exuberant.

09/09 - Stock Market Comments

The markets continue their wildly unexciting trend. Unless strong buying comes in in the latter part of the day, notice the slow rounding top, dumpling top, formations starting to develop. This implies two things. First, there will continue to be in extensive time frame of non-exciting market conditions and secondly be prepared for a strong down move if the dumpling top start showing aggressive selling.

09/08 - Stock Market Comments

The positive trading on Friday, followed by the selling today continues to indicate this market is now in a consolidation mode, obviously moving sideways without any conviction one way or the other. However, this is market conditions that continue to allow strong moving stocks to continue in their direction as well as weak moving stocks continuing to move in their direction.


 

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