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Daily Market Comments - August 2015


08/31 - Stock Market Comments

The T-line continues to act as an important factor in this market. The Dow and the S&P 500 are trading back below the T line, potentially creating an evening star signal if the markets close more than halfway down Thursday's candle. The NASDAQ has open lower and is currently trading right at the T-line. It needs to close above the T-line to provide any indication the current bullish move/bounce is still in progress. Where the market closes today will be an important factor.

08/28 - Stock Market Comments

Today's market consolidation has a different tone to it, the lack of wild oscillations. The T-line continues to act as a predominant factor. As long as the market indexes remain above the T-line, the uptrend is considered in progress. This means where the market closes today will be important. Crude oil prices have come back up strong over the past couple days, breaking out of the downtrend. Look for oil stocks as trades.

08/27 - Stock Market Comments

Although the markets are trading positive today, the T-line continues to act as an influence. The Dow and the S&P 500 have topped out so far at the T-line, the NASDAQ is trading right at the T-line. Any long positions established today still require close following.

08/26 - Stock Market Comments

The major benefit of candlestick analysis is that it allows the investor to see what a trend/price would do with a high degree of probability. It will also demonstrate when there is no high probability assessment of a trend. That is currently what is occurring in these markets. There is no established direction. Any trading has to be done on the basis of quick profits off of short-term intraday charts. Otherwise, sitting and waiting for the market to sort itself out is the best strategy. Be patient, a trend will be established sometime in the future, two days or maybe two weeks.

08/25 - Stock Market Comments

Where does the market want to go? It doesn't know either! Until the market settles down, moving away from huge whipsaw moves intraday, any trading should be oriented toward the 10 min. candlestick chart. Until there is a candlestick reversal signal, the downtrend remains in progress. Intraday buying requires confirmation going into the close. Trade nimbly.

08/24 - Stock Market Comments

There are expectations of a dumpling top. A big downtrend! 800 points on the Dow is obviously a big down move. Taking profits on short positions on the open was/is a logical place to take profits.

08/21 - Stock Market Comments

Because prices/trends move based upon investor sentiment, it will be important to see how the markets finish up the day today. The major indexes are breaking down through trend support levels. A close at the top end of the trading range today, a hammer signal, would indicate the lower trend channel support level was going to continued active support. A close near the lower end of the trading range today would indicate investors have given up, the dumpling top breakdown would be in progress. Very few long positions should be remaining intact, only if they were not showing sell signals.

08/19 - Stock Market Comments

A broken record analysis, same old same old, the markets are still in a sideways mode with no direction. The analysis remains the same, any established positions should have good compelling charts. More than likely, the sideways/doldrums of the summer will continue for the next week or two until everybody gets back from their vacations.

08/17 - Stock Market Comments

After selling off hard this morning, the Dow is now trading back up at the top of its trading range, at the T-line. A hammer signal in the Dow would provide additional evidence the market is trying to base in this area. The NASDAQ opened lower but is now trading slightly positive, also indicating Bulls are stepping in in this area. Again, the markets are not showing any decisiveness one way or the other. Any trades still require close watching.

08/14 - Stock Market Comments

The markets continue to demonstrate a lack of direction. Today's lethargic trading is not showing any change of investor sentiment, keeping the sideways mode of this market in progress.

08/13 - Stock Market Comments

The markets remain decisively indecisive. It is obvious that the bulls nor the Bears are in control. The summer doldrums remain in progress. Any individual stock positions should have very compelling charts.

08/12 - Stock Market Comments

The Dow is trading at the lower trend support level but with no signs of a reversal. The 200 day moving average appears to be the likely target for the NASDAQ. This makes for a few more days to the downside likely. Any long positions should be holding up above the T-line.

08/11 - Stock Market Comments

The magnitude of today selling continued indicate the indecisive nature of the market conditions versus merely profit-taking from yesterday's big bullish day. Individual stock charts remain the prominent analytical factors, without any influence from overall market conditions. Be nimble or continue to go fishing.

08/10 - Stock Market Comments

Friday's trading produced a hammer signal in the Dow with the significance factor being the low of the hammer reversal at about where the lower channel support level occurred. Today's positive trading is forming a MorningStar signal in the Dow. The NASDAQ is producing a Doji followed by a gap up, your best friend.

08/05 - Stock Market Comments

Today's bullish trading should not be met with any great enthusiasm, the market conditions still remain indecisive/choppy. However, the transportation index and the NASDAQ are providing clear indications that strong bullish sentiment remains in specific parts of the overall market. Any sustained positions still requires good charts confirmation, both bullish and bearish.

08/04 - Stock Market Comments

When the markets appear to be in the summer doldrums, after months of trading very lethargically, it becomes much more clear as to the benefits of candlestick charts. Candlestick charts can pinpoint the individual stock charts that are acting well. This can be seen in the fry pan bottoms and the belt hold signals that are performing well even though the overall market is sideways.

08/03 - Stock Market Comments

The Dow is down, the NASDAQ is up, the S&P 500 is flat, indicating a continued lack of consensus in the markets. This continues to make individual stock/sectors the primary considerations. Continue to be both long and short in this market.

 


 

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