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Daily Market Comments - December 2014

12/31 - Stock Market Comments

Wednesday's positive trading in the markets is not out of line with the slow sideways drift of this market at the end of the year. It should remain a fairly lethargic trading day. However, this continues to make strong charts remaining strong without any major change of investor sentiment in the overall market. Monday will be the telling day.

12/30 - Stock Market Comments

Although the markets are selling off a little bit Tuesday, they are doing so in a very indecisive manner. This is why using the T-line as a trend indicator becomes a very easy analytical tool to signify whether there has been a reversal or not. As long as the indexes continued to trade above the T-line, the uptrend remains in progress.

12/29 - Stock Market Comments

The week between Christmas and New Year's is usually a very low volume, slow moving week. However, it is also a week that has the opportunities on a very small percentage of stocks, usually those that demonstrate a lot of interest right before the end of the year. Utilize the candlestick charts to illustrate which stocks are getting a lot of attention. Big profits can be made during the slow week.

12/23 - Stock Market Comments

The Dow and the S&P 500 not only broke through new highs, but they gapped up through new highs. It will now be important to see whether the indexes remain up into new territory after the gap up through a obvious resistance level. Continue to stay long but prepare for some profit-taking.

12/22 - Stock Market Comments

The market indexes continue to push back up toward the existing trend. This would imply continued bullish move going right into Christmas. Continue to stay predominantly long as long as the indexes do not produce a sell signal and a close below the T-line. Currently the stochastics are continuing to head in an upward direction.

12/19 - Stock Market Comments

Investors enthusiasm continues to move the Santa Claus rally. Do not be surprised to see some profit-taking going into the weekend before the end of the day. However, as illustrated by the confirmation of the inverted hammer signal in the oversold condition, bullish sentiment still remains in this market, especially if the indexes remain above the T line.

12/18 - Stock Market Comments

One of the truisms of candlestick analysis is that when an inverted hammer signal confirms, especially in the oversold condition, the probabilities of a reversal is an extremely high probability, unofficially 95% or greater. Thursday's positive trading, trading well above the T-line, and the NASDAQ gapping up Thursday, adds more credibility to the reversal.

12/17 - Stock Market Comments

Tuesday's inverted hammers in the indexes require bullish confirmation Wednesday. Currently, Wednesday's positive trading reveals indications of positive support at these levels. However, it is crucial that today's trading does not take the indexes back down through the open. With the market conditions in the oversold condition, any bullish trading from these levels would indicate a bottom is setting up.

12/16 - Stock Market Comments

The indexes have moved back to the expected support levels. The Dow is now trading in the 50 day moving average area and the NASDAQ has gapped down Tuesday right to the 50 day moving average. The indexes have moved from the overbought levels back down to the oversold levels. This would give good prospects for watching candlestick reversal signals in the next day or two of trading.

12/11 - Stock Market Comments

Thursday's positive trading in the indexes require one key element, they need to close at the top end of their trading range. If they come back down through today's open, be prepared to short positions. Stay nimble.

12/10 - Stock Market Comments

The markets needed to see a positive open today after the hammer type signal Tuesday. A lower open followed by lower trading indicates Tuesday's close near the top end of the trading range was merely a bounce during the down trend. Unless the market indexes come back up once again through their open, expect a down trending market for the near future.

12/09 - Stock Market Comments

Tuesday's selling continues to follow through from the sell signals created Monday, especially in the NASDAQ that had gap down after a Doji. The NASDAQ is currently trading above where it opened, and indication the markets are selling off dramatically hard just yet. The Dow continues to trade lower as well as the transportation index.

12/08 - Stock Market Comments

Monday's indecisive trading confirms the markets indecisive nature, a redundant redundancy. These market conditions make the T-line and important factor. Stay predominantly long but have a few short positions in the portfolio. The 18,000 level in the Dow needs to be watched. It should be where everybody is watching to see if it will break through or start profit-taking. Watch the charts.

12/05 - Stock Market Comments

Friday's positive trading continues to confirm the T-line is going to act as support, the uptrend is in progress. The steady uptrend remains solid due to the fact that exuberant buying is not coming into this market, even after what would be perceived as good economic news in the job numbers Friday. Continue to stay long with some short positions in the portfolio. However, the persistent uptrend is providing some very good breakout patterns EXAS and UIHC.

12/03 - Stock Market Comments

Although today's trading is not showing any great vigor, it is illustrating the T-line is acting as support in the continued uptrend. The uptrend remains in progress provided there is not another hard selling day in the markets, confirming the evening star signal of the past few days. Currently, the bullish Harami of yesterday, being confirmed with positive trading today provides evidence the T-line continues to support the uptrend. Stay long but be nimble.

12/02 - Stock Market Comments

Monday's pullback has to be viewed as profit-taking PROVIDED Tuesday's trading in the indexes does not come back down through Tuesdays close. Selling off through Monday's close would merely indicate today's buying was a bounce. Continue to stay long in charts that are not demonstrating sell signals. But remain diligent as far as where today's trading finally closes.


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