Daily Market Comments - October 2015
10/30 - Stock Market Comments
Today's lethargic trading so far indicates there is not any drastic change of investor sentiment. Assume the current uptrend remains in progress. The big traders,AMZN, NFLX, AAPL, BABA, continue to show bullish participation, more evidence there is no compelling selling occurring in this market trend yet.
10/23 - Stock Market Comments
Note that the Dow and the S&P 500 have gapped up in the overbought condition to trade above the 200 day moving average. The gap up in today's trading should be an alert. The uptrend requires today's indexes to continue to trade near the high-end of their trading range. A pullback towards today's open would create the possibility of a gapped up shooting star at a major resistance level. Be prepared to take profits if the markets start selling off before the end of the day.
10/22 - Stock Market Comments
The T-line continues to act as a predominant trend indicator. Yesterday's trading in the Dow and S&P 500 brought the indexes back to the T-line. A lower open today would have breached the T-line, making a continued pullback very likely. However, as seen, today's positive trading continues to make the 200 day moving average the viable target. Until there is an actual close below the T-line, the uptrend remains in progress.
10/21 - Stock Market Comments
Today's trading is demonstrating another indecisive trading day, the Dow and the S&P 500 currently forming Doji's, the NASDAQ pulling back almost to the T-line and the transportation index trading positive. Although this does not show any change of the current trend, the fact that the Dow and the S&P 500 have formed a series of doji's in the overbought condition should be an alert. Stay predominately long but be ready to take some profits if any weakness starts appearing in the markets.
10/20 - Stock Market Comments
Today's backing and filling does not illustrate any change of investor sentiment. The Dow had been trading positive while the NASDAQ was trading lower, indicating there was no major change of the current trend. Currently, the Dow and the S&P 500 are trading slightly lower but with the Doji formations, indicating the lack of decisive selling. As long as the indexes continue to trade above the T-line, the uptrend has to be assumed to be in progress.
10/19 - Stock Market Comments
A simple rule of market trend analysis is utilizing what each market index is doing as a total analysis. Today, the Dow and S&P 500 is trading lower but the NASDAQ is trading higher. This combination infers that the current market trend has not changed, there is no consensus of the indexes. As long as the indexes remain above the T line, expect the 200 day moving average to be the next likely target.
10/15 - Stock Market Comments
Today's positive trading is showing the indexes currently supporting on the T-line. This continues the uptrend, provided the bullish sentiment can continue going into the end of the day. A failure to stay above the T-line today would still make the 50 day moving average a viable target, indicating a few more days of pullback. Have both long and short positions in the portfolio.
10/13 - Stock Market Comments
Although the markets open lower today, the indexes are now trading back up toward the top of their trading range and the NASDAQ is now trading positive. The expected profit-taking from yesterday's Doji's may have already occurred. However, continue to be on the defensive, weaker trading before the end of the day would still reveal a pullback to see if the moving averages they had acted as possible resistance are now going to act as support.
10/12 - Stock Market Comments
Warning, warning, Will Robinson! The indecisive trading in the indexes in the overbought condition, the Dow and the S&P 500 trading absolutely flat, creating Doji's is indicating a possible change of the market trend. A logical pullback would be back to the T-line or 50 day moving average. The NASDAQ is showing potential weakness at the 50 day moving average and the downtrend of the past three months.
10/08 - Stock Market Comments
Today's initial trading is not showing any compelling selling, merely profit-taking with the indexes rolling back and testing the 3T-line. Assume the uptrend remains in progress without the appearance of any candlestick sell signal and continuing to trade above the T-line, as well as the 3T-line. Numerous stock charts continue to show strength, implying there is no major change of the uptrend. Stay long.
10/07 - Stock Market Comments
Today's bullish doji sandwich in the Dow is indicating the 50 day moving average is not going to act as resistance. The NASDAQ gap up above the open of yesterday's consolidation Doji, and the transportation index has come up through the 50 day moving average. Nothing has changed that would indicate the Bulls still are in control. Continue to stay predominately long.
10/05 - Stock Market Comments
The bullish signals in the Dow and the S&P 500 last week, the MorningStar signal followed by a bullish Doji sandwich up through the T-line makes the 50 day moving average a very high probability target. Expect another day or two of positive trading before the 50 day moving average resistance area has to be addressed. The NASDAQ, after forming a left/right combo on Friday, has shown good bullish confirmation with today's gap up. Stay long.
10/06 - Stock Market Comments
Today's trading should be considered consolidation. The Dow is trading positive while the NASDAQ is trading negative, not illustrating any change of investor sentiment of the current uptrend. As long as the indexes continue to trade above the T-line after last week's strong bullish candlestick reversal signals, the assumption should be the uptrend remains in progress. Currently the Dow is trading above the 50 day moving average, which had been a potential resistance level. Stay predominately long until sell signals appear.
10/01 - Stock Market Comments
Although there were strong Morning Star signals in the Dow and the S&P 500 yesterday, the T-line still is a critical factor. Numerous short charts showed potential bullish reversal signals yesterday but continue to have a difficult time getting up through the T-line. A very simple analytical tool is requiring a candlestick buy signal and a close above the T-line.