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Daily Market Comments - May 2016


05/26 - Stock Market Comments

The Dow is trading down 25 points while the NASDAQ is trading positive three points. This is the obvious consolidation after the strong move the market has made over the past few days. Continue to stay long until you see a candlestick reversal signal. There is the potential of a possible pullback to the T-line/50 day moving average area but with the strength of the candlestick reversal signals of the past week and a half, the probabilities would indicate the uptrend will be continuing. It may have a few days of moving sideways, allowing the T-line to catch up. Stay predominantly long.

05/25 - Stock Market Comments

The candlestick reversal signals of the past few days are now being well confirmed. The NASDAQ as gapped up again after buy signals, indicating more upside potential. The buy signal in the Dow closed at the 50 day moving average yesterday. Today's positive trading is taking the Dow up above the 50 day moving average and breaching the downtrend channel. There is now a good probability the indexes will come back up to the trajectory of the uptrend that was in progress prior to the pullback starting in mid April. Stay predominantly long.

05/24 - Stock Market Comments

Today's positive trading after yesterday's Doji in the indexes is the confirmation needed to indicate a major change of investor sentiment. All the indexes are currently trading above the T line. The Dow is currently nudging the 50 day moving average but the NASDAQ and S&P 500 have gone right through the 50 day moving average. The uptrend is in progress provided the markets do not close back near the low end of their trading range today.

05/20 - Stock Market Comments

05/18 - Stock Market Comments

Today's positive trading in the markets is not yet showing anything that is changing the slow downward direction of the market trend. The Dow S&P 500 are trading below the T line. The NASDAQ is currently just nudging the T-line. The transportation index is showing the most strength, indicating the market trend is more likely to be in a slow downward drift versus a hard selling. State law in a strong sectors, oil, gold, and the Biotech's. The retail area can be shorted.

Today's bullish trading is significant, it is bringing the NASDAQ and transportation index backup above the T-line. The S&P 500 is trading right at the T-line, but the Dow is still trading below the T-line. This implies a possible reversal of the downtrend, however the final criteria is the close above the T-line. It will be important to see how the indexes close going into the end of the day. Keep in mind, a downtrend usually experiences buying in the morning followed by selling later in the day. Any long positions established today need to be watched.

05/17 - Stock Market Comments

The expected consolidation is just that, although the Dow, S&P 500, and the NASDAQ are showing profit-taking after yesterday's big price move, the transportation index is up extremely strong. This indicates there is not any consensus selling in this market, merely profit-taking. However, it will be important to see the indexes staying near the T-line area today. There are both long and short positions working well in this market.

05/16 - Stock Market Comments

Although the markets are trading positive today, keep in mind that the downtrend remains in progress until there is a candlestick reversal signal and a close above the T–line. However, crude oil and gold are showing good strength. Both of those sectors are showing strong stock candidates.

05/13 - Stock Market Comments

The indecisive nature of the market trend persists, which is not unexpected for Friday trading. However, the strong sectors continue to remain strong, gold stocks are acting well today. And the weak sectors, retail, continue to be weak. Have both long and short positions in the portfolio.

05/12 - Stock Market Comments

The lack of buying/selling in the market today indicates the indecisive nature of the market, which means the Dow and the S&P 500 will probably move sideways until the 50 day moving average catches up. A wedge type formation is being created in the indexes. These market conditions still warrant having both long and short positions in the portfolio.

05/11 - Stock Market Comments

Profit-taking/consolidation would be expected today after the big move in the indexes yesterday. Watch to see if the T-line will act as support today. If the indexes trade at or near the T-line, which is where the Dow is currently trading, use your 10 min. chart to see if any buying comes in, indicating the T-line is acting as support. The uptrend now is assumed to be in progress as long as the indexes remain above the T-line.

05/09 - Stock Market Comments

The positive trading of Friday created potential reversal signals in all the indexes. Today's positive trading has not yet breached the T-line. Currently the T-line is still a very important downtrend been factor. Short positions still remain the prominent bias of the portfolio. Gold and oil have hit congestion/resistance levels, making those sectors non-bullish prospects at this point.

05/05 - Stock Market Comments

A bullish day, the markets trading positive? The graphics of candlestick signals provide much greater clarity as to what the trend of the market is actually doing. Although trading positive, the indexes are trading below where they opened. This provides immediate verification that there isn't any compelling strength yet in this market trend, merely a positive open. Anticipate the Dow and S&P 500 to test the 50 day moving average, implying some more downside.

05/04 - Stock Market Comments

The indexes continue to trade below the T-line, expect the Dow and the S&P 500 to test the 50 day moving average within the next few days. The strategy remains the same, have both long and short positions in the portfolio but obviously more oriented to the short side for the short term.

05/02 - Stock Market Comments

The NASDAQ is trading slightly positive. Currently it is producing a bullish Harami/Doji right on the 50 day moving average with stochastics just getting into the oversold condition. It will be very important to see how the indexes finish the day. But the nature of the market continues, strong sectors remaining strong with weak sectors remaining weak. There are very good uptrending positions as well as good bearish positions.

 


 

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