Daily Market Comments - January 2015
01/30 - Stock Market Comments
The prognosis remains the same, Friday's lower trading in the indexes continue to reveal a lack of direction in the market trend, a wedge formation is still in progress. Nothing new, they both long and short in the portfolio.
01/29 - Stock Market Comments
The market indexes continue to hover near the lower end of the trading channel. Stochastics are now just getting into the oversold condition. The 200 day moving average is a viable target for the S&P 500 and the Dow. Obviously the short term trend is down while the major trend in the indexes continue to move sideways. These conditions continue to warrant having both long and short positions in the portfolio. Do not get discouraged if your profitability seems lethargic, there is no direction or conviction in either the long or short direction of this market.
01/28 - Stock Market Comments
The bullish trading Wednesday is creating a bullish Harami in both the Dow and the S&P 500. A bullish Harami indicates the selling has stopped. This is significant when analyzing the Dow chart, showing the selling has stopped right at the bottom of the trend channel. The bullish Harami in the transportation index is occurring right at the T-line.
01/27 - Stock Market Comments
The markets continue to have a lack of decisiveness in its overall direction. With the Dow selling off extremely hard today, there are still a good number of stocks that continue in a bullish track based upon the candlestick patterns. As illustrated in the chart patterns over the past four weeks, a major wedge formation has been setting up in the Dow. This in itself implies there is no definite direction bias in investor sentiment. Continue to stay both long and short.
01/26 - Stock Market Comments
Although the overall market trend remains indecisive, the one confirming factor is the indexes continued to trade above the T-line, implying the uptrend, albeit choppy, is still a slow uptrend. This continues to make the most logical strategy a portfolio of both long and short positions. The candlestick charts will make it obvious as to which charts are in uptrends and which charts are in downtrends.
01/20 - Stock Market Comments
Although there was strong buying on Friday, the indexes are having a hard time getting up through the T-line Tuesday. The Dow, S&P 500, and the NASDAQ, after trading higher on the open, is now trading back below the T-line. A close below the T line today would indicate the sideways mode of the market with a slow drift, probably back down to the 200 day moving average. That scenario still warrants having both long and short positions in the portfolio.
01/16 - Stock Market Comments
Friday's positive trading in the markets does not show anything that would be changing investor sentiment, merely some buying/short covering in a down trending market. There is a perceived trend channel in progress, indicating the slow down trending/sideways moving market. This continues to allow scanning strong and weak sectors/stocks on an individual basis.
01/15 - Stock Market Comments
The indecisive trading of Thursday is occurring in the Dow and the S&P 500 right at the lower end of the trend channels. The transportation index is doing a bullish Harami after yesterday's hammer signal right at the support level. The indecisive trading at these levels suggest the lower trend channel should be acting as support. Until this market produces an identifiable trend, have both long and short positions in the portfolio.
01/14 - Stock Market Comments
The initial bearish reaction to the retail numbers today are still persisting in the Dow and the S&P 500, but the NASDAQ, although trading lower is trading positive from where it opened. It appeared to have supported at the lower end of the trend channel. The Dow is currently trading right at the lower end of the trend channel.
01/12 - Stock Market Comments
Today's weakness in the market is follow-through from the selling of Friday. However, the weakness on Friday did not create a sell signal and stochastics are still heading in an upward direction. It would've been bullish obviously to see a positive open today. Today's weakness provides more of the scenario that the markets may be in a sideways/wedge mode for the next few weeks.
01/09 - Stock Market Comments
Profit-taking today is expected. Watch to see what the 50 day moving average and the T-line do as far as acting as support. Continue to hold long positions that have chart patterns that are not being breached. The market remains in an uptrend as long as there is not a close back below the T-line.
01/08 - Stock Market Comments
The NASDAQ is producing the strongest reversal signal, a bullish Karami followed by a gap up through the T-line. The Dow and S&P 500 are showing good strength but they not coming off true reversal signals. If the NASDAQ maintains its strength, it will be likely that the Dow and the S&P 500 will eventually retrace to the 50 day moving average to see if it's going to act as support.
01/07 - Stock Market Comments
Wednesday's positive trading is creating bullish harami's in the indexes. However, stochastics are still heading in a downward direction. This would warrant being cautious on any bullish trading Wednesday. If the markets come back down through their opens, Wednesday's bullish trading was merely a bounce during the down trend.
01/06 - Stock Market Comments
Tuesday's initial bounce to the upside should be viewed with some skepticism, a bounce. Although the Dow and the S&P 500 are trading positive so far this morning, the NASDAQ and the transportation index continue to trade lower. This indicates there is no change of overall sentiment in the market.
01/05 - Stock Market CommentsMonday's selling continues to make the 50 day moving average the likely target. The Dow is heading in that direction and the S&P 500 and the NASDAQ are already there. The 50 day moving average will be an important level to watch. The biotech's continue to show strength. Watch for any other sector that reveals strength in Monday's or Tuesday's trading.
01/02 - Stock Market Comments
Although the Dow is not selling off, it has pulled back from its initial bullish trading on the open this morning. The transportation index is down hard as well as the NASDAQ. The NASDAQ showed a Doji, followed by a gap down that eventually took trading back below the T-line.