Daily Market Comments - July 2015
07/31 - Stock Market Comments
Although the markets continue to trade in an indecisive manner, they are trading above the T-line. The Dow is hovering right around the T-line. The short term uptrend, albeit very slow, remains in progress as long as the indexes remain above the T-line. The indecisive nature still warrants having both long and short positions established in the portfolio.
07/30 - Stock Market Comments
The indecisive nature of the market continues. The Dow did not do a reversal signal two days ago, indicating the current uptrend may not be substantial. Today's weakness indicates the 200 day moving average may continue to act as resistance. There is a spreading formation in progress in the Dow, meaning the last low did not actually reach the bottom of the spreading wedge support area. There still has not been a candlestick reversal signal and a close above the T-line in the Dow. Short positions should still be a good portion of the portfolio.
07/29 - Stock Market Comments
Although the Dow did not do a reversal signal yesterday, along with the other indexes it can be seems that the possible support levels at the lower end of the trend channels continued active support. The most compelling chart is the transportation index forming a strong Morning Star signal yesterday, followed by bullish confirmation going to the 50 day moving average today. Obviously the short-term bias should be back to the alongside but a few short positions continue to work.
07/27 - Stock Market Comments
Nothing has shown any change of trend direction in the Dow but it is getting close to a potential support level. However, stochastics still indicate a day or two more to the downside. The NASDAQ gap down again with stochastics rolling over, look for the potential of filling the gap down another 80 points. Currently, the downtrend is in progress until there is evidence of a candlestick reversal signal.
07/21 - Stock Market Comments
Although the Dow is trading off hard, the transportation index is trading up strong, the NASDAQ and the S&P 500 are trading relatively flat. This combination merely illustrates consolidations in specific stocks/sectors versus any wholesale reversal of the indexes. The lack of cohesiveness is an indication the current market direction is in progress, just going through some consolidation.
07/17 - Stock Market Comments
Today requires some cautions. The Dow and the S&P 500 continue to have some problems getting through the resistance area. The NASDAQ has gapped up in the overbought conditions and is trading right at the upper resistance level. Friday in the summer time might experience some profit-taking. However, expect it to be merely profit-taking based upon the transportation index continuing to show strength off the T-line. Be diligent.
07/16 - Stock Market Comments
Today's strength in the markets is clearly illustrated with a gap up/trend kicker signal in the NASDAQ. The positive trading today in the Dow is attempting to breach the down trending resistance level. The S&P 500, today's Doji sandwich, is now nudging the upper resistance level. Continue to stay predominantly long with a smattering of short positions in the portfolio.
07/15 - Stock Market Comments
Currently the Dow is trying to nudge the top of the down trend channel. A breakthrough of that level would indicate the trend will continue to test recent highs. The NASDAQ showing positive trading today without any indications of indecisiveness makes the top of the trend channel still a viable target. This would imply more days to the upside. Remain predominantly long.
07/14 - Stock Market Comments
After a strong day yesterday, consolidation would be expected. However, although today's trading is not that great, it still indicates the Bulls are maintaining the current uptrend. A close above the 50 day moving average for both the Dow and the S&P 500 would show good strength with the NASDAQ gapping up again and trading positive on Monday. Anticipate more upside with the likelihood of some profit-taking along the way. Stay predominantly long.
07/10 - Stock Market Comments
One of the highest probability reversal signals is an inverted hammer followed by bullish confirmation, as we are seeing in the Dow and the S&P 500 today. However, other aspects still need consideration. The NASDAQ gapped up above yesterdays open, potentially forming a bullish flutter kicker signal but all the indexes still require a close above the T-line to confirm a bullish reversal signal has occurred. Stay diligent, the nature of this market has not yet changed, still very indecisive.
07/09 - Stock Market CommentsBe careful, although the indexes are trading up very strong today, it has not changed the overall nature of the market trading of the past four months, up one day, up the next, down the next, etc. This is where utilizing the T-line as a trend indicator becomes vital.
07/08 - Stock Market Comments
Yesterdays trading provided hammer signals in the indexes, potential candlestick reversal signals. They closed at the T-line. Candlestick analysis is very simple. A potential reversal signal requires confirmation. Bullish confirmation today would have been a positive open, confirming the signal, and breaching the T-line. That is why it is important to see how prices open during the next time frame after a signal. Obviously, today's lower open and lower trading continues to indicate the T-line is still a resistance factor. The short positions remain in place.
07/07 - Stock Market Comments
The T-line continues to act as a resistance level in the market indexes. Currently the Dow is forming a bearish J-hook pattern, meaning a close at the low end of today's trading range will have breached the support level and imply more downside. The same chart pattern is viewed in the NASDAQ.
07/06 - Stock Market Comments
What effect does the Greece situation have on the American economy? Probability very little! That is why it is important to watch what the candlestick signals are telling you after knee-jerk reactions. Although the market indexes are trading lower today, there is buying occurring after the open. This is more clearly apparent in the NASDAQ. Continue to utilize the signals and the T-line.
07/02 - Stock Market Comments
Nothing new in the market trend, the Dow is up slightly, the NASDAQ is down slightly, and neither are trading in a range big enough to indicate there is nothing more than sideways indecisive trading. More than likely, the lack of direction will be enhanced with most traders heading for the beach early today.
07/01 - Stock Market Comments
Yesterdays trading showed indecisive trading, Doji type days and inverted hammer days in the indexes. Today's positive trading shows a good indication that the bottom of the upward trend channel continue to act as support. This implies the trend channel will continue to hold but the nature of the market has not shown any change yet, it still remains a very indecisive trading market day to day.