Daily Market Comments - February 2016
02/26 - Stock Market Comments
It would not be unusual to see a Doji day in the markets after a steady run-up in the markets. A positive or flat day in the Dow and S and P 500 would add further confirmation to the bobble pattern at the 50 day moving average. Stay predominately long. These market conditions still make individual stocks/sectors the predominant trades.
02/25 - Stock Market Comments
Today's slightly positive trading adds credibility to the bobble formation in the Dow and S&P 500. The uptrend remains in progress as long as they continue to trade above the T line. Continue to stay predominately long with obviously some sectors remaining much stronger than others, i.e. gold.
02/24 - Stock Market Comments
Today's weakness continues to confirm the resistance at the 50 day moving average in the Dow, that was demonstrated by a bearish Harami. A close below the T-line in the indexes would negate the prospect of an uptrending bobble pattern and make a pullback to the bottom of the trend channel the most likely prospect. Gold stocks continue to show strength with gold prices breaking out of a wedge formation and continuing the uptrend.
02/23 - Stock Market Comments
The strong trading day of yesterday show the Dow testing the 50 day moving average resistance level. Today's trading required a positive open to show there was not going to be any resistance at that level. Today's current selling shows consolidation making the uptrend a relatively slow upward trajectory. However, these conditions do not deter the strong sectors such as the mining sector.
02/22 - Stock Market Comments
Today's positive trading confirmed the double Doji pattern that was set up Friday in the Dow and the S&P 500. This makes the 50 day moving average the likely target. The NASDAQ gapped up and is trading positive after Friday's trading supported at the T-line. Anticipate more upside but watch to see what the indexes do once they reach the 50 day moving average. Crude oil prices are up two dollars today, continuing to demonstrate support in the $30 area. Stay predominately long.
02/19 - Stock Market Comments
Today's consolidation is showing the indexes, although trading lower, are trading well above the lows. The transportation index likely will consolidate back to the 50 day moving average to see if it will now act as support. Crude oil is trading back off, not yet demonstrating a downtrend anymore, merely a sideways basing zone. Gold prices are waffling today but the classic pattern still indicates more upside.
02/18 - Stock Market Comments
Today's consolidation/profit-taking is not unexpected after the strong run-up over the past four trading days. Continue to maintain long positions provided they are not doing any severe selling signals. Crude oil is trading positive after a kicker signal and a Doji sandwich trading up through the T-line and today's trading breaking the downward resistance level. Strength in crude oil should maintain strength in the markets.
02/17 - Stock Market Comments
The Dow and the S&P 500 are getting close to the top of the trend channel, the first obvious resistance area. The NASDAQ has been gapping up for the last couple of days, creating the potential of a scoop pattern. The transportation index has confirmed that the 50 day moving average is not going to act as resistance. Continue to stay predominately long but watch to see how the markets react once they do get to the top of the trend channel.
02/16 - Stock Market Comments
Although the markets had a big positive day on Friday, the indexes did not form a candlestick reversal signal. The only positive note of Friday's positive trading is that the reversal/buying occurred at the same level as a bullish signal occurred one month ago. This makes for the prospects of a double bottom but today's bullish trading is not being viewed as a cross the board bullish conviction. The NASDAQ has open higher but is currently trading below where it opened. The other indexes, although trading higher, are showing indecisive candle formations. The markets remain very indecisive, at best a sideways or very slow uptrending trajectory. Long and short positions still require analysis of each individual stock chart
02/10 - Stock Market Comments
Both the Dow and the S&P 500 have traded up and tested the T-line but are currently backing off. Stochastics are still heading down, this implies that any positive trading has to be viewed with some suspicion. The T-line remains an important trend factor. Continue to stay predominately short.
02/09 - Stock Market CommentsToday's trading is showing indecisiveness, the transportation index and the NASDAQ are showing strength while the Dow and S&P 500 are selling off. The main factor remains that the indexes continue to trade below the T-line, maintaining the simple scenario that the downtrend remains in progress. However, the transportation index is remaining above the T-line in a steady uptrend. This implies the current weakness in the market is not demonstrating wholesale selling. Stay predominately short but long positions in the portfolio can be producing profitability.
02/08 - Stock Market Comments
The bearish J-hook pattern remains the predominant pattern in the market indexes. Any long positions remaining in the portfolio should have compelling reasons to stay long. Short positions should now be the predominant trading strategy. The long positions should be oriented to the gold sector.
02/04 - Stock Market CommentsToday's positive trading, confirming the bullish Harami of yesterday in the Dow and the S&P 500, unless experiencing strong selling before the end of the day, is demonstrating that the trading channel is a very slow uptrend bobbing along the T-line. Fortunately, numerous sectors such as the oil sector and the gold sector have been working extremely well during the sideways mode. Those are obviously the sectors be trading long. Numerous stocks have been trading absolutely sideways for the past three weeks. Obviously stay long in the strong sectors and short in the week sectors, both should still be in the portfolio.
02/03 - Stock Market Comments
The evening star signal in the Dow and the S&P 500 are confirming today. The NASDAQ opened at the T-line and immediately started trading lower. If the indexes close near the lower end of their trading range today, expect wave three of a bearish J hook pattern to be in progress. Add short positions to the portfolio today. Gold is breaking out of a frypan bottom pattern,NUGT a good long positions.
02/02 - Stock Market CommentsThe magnitude of today's selling has a very relevant factor. Although the indexes have not breached the T line to the downside, the strength of the selling clearly indicates the lack of consistency of an upward trend reversal. Although there may be an uptrend in progress, it is without any consistent bullish force. It will be important to see where the indexes close today.