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Daily Market Comments - April 2015


04/30 - Stock Market Comments

The failure of the markets to break through the upper resistance levels, the Dow and the S&P 500 in a wedge formation, the NASDAQ in a upward trend channel, is now making the lower end of the patterns the next target. However, the Dow and the S&P 500 are at the narrow point of the wedge formation, making any pullbacks quickly testing the bottom of the wedge formation. As long as there is not a breach of the patterns to the downside, the slow oscillation of the uptrend remains in progress. Continue to have both long and short positions in the portfolio.

04/28 - Stock Market Comments

Today's indecisive trading remains consistent with the nature of the current trend. The Dow, although trading positive, is still in the wedge formation. The transportation index shows a clear sell signal at the 50 day moving average, putting it in a downward move/sideways mode at best. Market conditions still make stock selections on a very specific stock/sector analysis. Continue to have both long and short positions in the portfolio.

04/27 - Stock Market Comments

The NASDAQ broke out of its upper resistance level with a gap up on Friday. Today's positive trading in the NASDAQ adds more credibility that the uptrend is in progress. Currently the Dow is nudging the top of its wedge formation while the S&P 500 has breached that level on Friday and in today's trading. As long as the market indexes remain above the T-line and appear to be broken out of their resistance levels, it can be assumed with a high degree of probability that the uptrend will remain in progress until the appearance of a strong sell signal.

04/24 - Stock Market Comments

Although the Dow and the S&P 500 are still just at the top of their indecisive wedge formation, the NASDAQ has shown a compelling breakout of its resistance level with a gap up today. This combination continues to demonstrate the lack of exuberance in the market, but merely a slow consistent bullish trend. A breakout through the top of the wedge by the Dow and the NASDAQ would be strong evidence of wave three being in progress.

04/22 - Stock Market Comments

The market characteristic remains the same, indecisive/sideways movements, with up days and down days. The continuation of the wedge formation reveals a lack of direction in the markets until there is a breakout of the wedge to the upside or the downside. Until then, it remains a very simple trading strategy for staying long in charts that continue to trade above the T-line or staying short in charts that continue to stay below the T-line.

04/16 - Stock Market Comments

Today's positive trading continues to illustrate the nature of the market indexes, very indecisive and still in the middle of a sideways trend channel. The prognosis remains the same, continue to hold long positions that do not show sell signals and closes below the T-line and continue to have short positions in the portfolio. Until there is a breakout of the top of the wedge formation, the market is still in a sideways mode.

04/16 - Stock Market Comments

The Dow and the S&P 500 are still trying to push through the top of the wedge formation. A lower trading day in the indexes would indicate the top of the wedge formation is still acting as resistance, look for more sideways market. A breakout through the top of the wedge formation would indicate wave three was now in progress. Continue to hold long positions until there is a definite move from this resistance level one way or the other.

04/16 - Stock Market Comments

After yesterday's early consolidation, the afternoon buying illustrated the T line was still acting as a bullish support. Currently, today's positive trading is pushing through the upper trend channel of the wedge formation. 

04/14 - Stock Market Comments

Today's weakness further confirms yesterdays bearish Harami's that indicated a failure to breakout of the top of the wedge formation. Crude oil is still in a J-hook pattern, today producing a Doji sandwich pattern, implying crude oil is still moving higher. The oil stocks are in J-hook patterns. The markets in general are still in a sideways mode, making investing very stock specific.

04/13 - Stock Market Comments

The Dow and the S&P 500 are trying to push through the top of the wedge. The NASDAQ and the transportation index are also trading positive today, indicating bullish sentiment is across-the-board. Continue to stay long but it will be important for the Dow and the S&P 500 not to show an indecisive trading day at this resistance level.

04/10 - Stock Market Comments

The indexes continue to push slowly toward the top of the wedge. The transportation index is trading above the T-line, also confirming bullish sentiment in all the indexes. Continue to stay predominantly long. Crude oil prices are trading higher after pulling back to the 50 day moving average to act as support. Oil stocks are still a strong sector.

04/09 - Stock Market Comments

The wedge formation is still in progress and today's trading illustrates the lack of decision from you the Bulls or the bears. As long as the market does not show any great conviction in either direction, trading specific sectors is still the correct criteria.

04/08 - Stock Market Comments

Yesterday's indecisive Doji type day in the indexes required a positive open and positive trading today, which the markets are doing. The top of the wedge formation is still the likely target. Continue to stay predominantly long but the nature of the market has not changed. Expect oscillating trading days, up one day and down the next.

04/07 - Stock Market Comments

Today's positive trading confirms the support at the bottom of the wedge formation in the indexes. However, the strongest bullish signal is coming from the NASDAQ, a left/right combo off the 50 day moving average up through the T-line. The charts imply a move over the next few days back up to the top of the wedge formation. This does not imply any major rally until the wedge formation is breached to the upside. Currently stay long but be ready to take profits if resistance is shown at the top of the wedge.

04/06 - Stock Market Comments

Today's lower trading on the open was not breaching any of the support levels in the market indexes. Currently, the positive trading continues to demonstrate the recent support levels continue to act as support, all in the 50 day moving average area. The markets still demonstrate a stock/sector specific trading environment.

04/02 - Stock Market Comments

The positive trading in today's market should not create any great excitement, it merely illustrates the wedge formation remains in progress. If the indexes pullback to where they are trading below today's open, a more powerful down trend prognosis would be an effect.

04/01 - Stock Market Comments

The Dow, S&P 500, and the transportation index have already pulled back today to the recent lows/support level of a few days ago. The NASDAQ has currently pulled back and is trading right on the 50 day moving average. A close near the low end of today's trading range would show the failure of the Morning Star signal in the indexes last week have failed, the down trend remains in progress. Even if the markets close near the top end of their trading range today, the sideways mode of the markets still be the predominant direction. The lack of direction in this market makes having both long and short positions in the portfolio the most viable strategy.


 

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