Daily Market Comments - April 2016
04/28 - Stock Market Comments
The lower open in the Dow today could have been scary but at the same time the qqq's were opening positive. This was a good indication that the markets were not turning over. Although the Dow and S&P 500 are currently not doing anything with great resiliency, they are still trading at or above the T-line. Stay long. Gold stocks and oil stocks are still acting strong.
04/27 - Stock Market Comments
The sideways nature of the market still persists. The Dow, transportation index, and the S&P 500 are all hovering in the T-line area, not showing any directional move one way or the other. The NASDAQ gapped down today and is currently trading just below the 200 day moving average. A close at the lower end of the NASDAQ trading range would imply the 200 day moving average was not acting as support, making the 50 day moving average as the next target. This would indicate more downside over the next few trading days. Any long positions should continue to demonstrate strength, oil stocks and mining stocks continue to act well.
04/26 - Stock Market Comments
The markets appear to be waiting for something, what it is is not apparent. The Dow and S&P 500 are riding along the T-line in decisively, Doji days. The NASDAQ is trading just below the T-line in a sideways trajectory. Gold prices and crude oil prices are in slow moving patterns, gold prices are in a big frypan bottom pattern, crude oil prices are in a slow T-line crunch. It is hard to find anything that is moving with any relevance. Keep some powder dry.
04/25 - Stock Market Comments
After the indecisive Doji day on Friday, the markets needed to open positive today to indicate the T-line area was going to act as support. Today's weakness indicates more downside/consolidation. However, gold has moved back up in price making the gold stocks relatively strong. Oil stocks and biotech's continue to act well. Any long positions held in the portfolio over the next few days should be in the strong sectors. Add some short positions to the portfolio.
04/21 - Stock Market Comments
Nothing wildly exciting in the market trend, making the existing slow uptrend is still in progress. Profit-taking should be expected, but as can be seen, profit-taking continues to occur intraday. Usually selling early in the day, followed by buying in the afternoon. Note that the 3T line is acting as the uptrend support.
04/18 - Stock Market Comments
The big talk this morning is the lower crude oil prices based on the DOHA meeting. Note, however, crude oil prices are trading above where they opened. This is a sign that there is not any great mass selling of crude oil. After opening lower this morning, the indexes are now trading positive, keeping in the same mode that has existed in the uptrend for the last two months. The prognosis remains the same, as long as the indexes remain above the T-line, the uptrend remains in progress.
04/14 - Stock Market CommentsThe morning indecisive trading is not on next acted after two good solid days in the market indexes. The general prognosis should be the markets getting back up into the trend trajectory of the previous two months after last week's consolidation. As long as the indexes are now trading back up above the T-line, assume the uptrend remains in progress. However, there will be strong bullish sectors as well as bearish sectors in the slow uptrend the market. Stay predominately long but have some short positions in the portfolio.
04/12 - Stock Market Comments
The markets remain in an indecisive mode, Dow is trading slightly positive while the NASDAQ is trading lower, the S&P 500 trading flat. Until the market indexes can close above the T-line, the downside projection is still the higher probability. The oil and gold sector remain strong. Continue to have both long and short positions in the portfolio until a decisive direction can be seen.
04/11 - Stock Market Comments
The Dow formed an inverted hammer/Doji on Friday, which brought it back down below the T-line. The trend was going to move in the direction of how they open the markets today. Currently, as seen, the bullish trading has brought the Dow and S&P 500 back up above the T-line creating a morning star signal. It will be important to see the indexes closing above the T-line today. The strong sectors remain the gold and crude oil areas. Numerous stocks are trading up off major support levels with good candlestick buy signals today, but once again it remains very important to see bullish sentiment going into the close.
04/08 - Stock Market CommentsWhich direction is the market trend? When the market does not know, that means there is a definite change of investor sentiment occurring from the previous trend. Although the markets are trading back accessibly positive today, continue to be alert. The whipsaw action in the indexes over the past few trading days illustrates what a Doji illustrates in one day, indecision between the Bulls and the bears. Be careful, have both long and short positions in the portfolio, utilizing the T-line as an important trend factor in either direction. The gold and oil sectors remain strong bullish sectors.
04/07 - Stock Market CommentsThe weakness in today's trading in the markets was in the realm of high probabilities based upon the Dow closing below the T-line on Tuesday. That was the first indication the sellers had picked up enough strength to breach the T-line trend, which had been acting consistently for the past month and a half. Specific sectors continue to act well, such as the gold sector. Start moving money out of charts that are beginning to show weakness and moving to stronger sectors, as well has having some short positions in the portfolio.
04/06 - Stock Market Comments
The T-line continues to act as an effective trend support. The strength, especially in the NASDAQ, revealing that both the T-line in the 200 day moving average were going to continued active support provides a strong indication the uptrend can maintain. The transportation index was showing the greatest weakness but has now formed a hammer/Doji signal. The analysis remains the same, the uptrend remains in progress as long as the indexes close above the T-line. This also requires a positive open tomorrow to indicate today's strength is going to maintain above the T-line.
04/05 - Stock Market Comments
The T line as a relevant factor. The NASDAQ is going to close right on the T line. The Dow is going to close just below the T line. The transportation index, although trading as a Doji today, is trading just below the support level of the 200 day moving average. Tomorrow's trading will be easy to assess. The uptrend requires a bullish open followed by a close above the T line. A lower open is going to continue the consolidation/pullback.
04/04 - Stock Market Comments
There is one evident factor occurring in this market trend. Although the indexes have been moving up in a slow and steady fashion, numerous candlestick pattern breakouts have been producing excessively strong profits. This is the advantage of recognizing patterns. The results are usually much stronger than merely a slow steady uptrend and move. Continue to stay long until you see a definite sell signal. The T-line continues to act as a viable trend support.
04/01 - Stock Market Comments
The T-line continues to be an important trend factor. The NASDAQ opened at the T-line and immediately started trading positive from there. The Dow and the S&P 500 sold off to the T-line area today and now trading back up. Currently the transportation index is testing the 200 day moving average again to see if it's going to act as support.