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Daily Market Comments - September 2016

09/30 - Stock Market Comments

The indecisive nature of the market is illustrated once again today, keeping the market trend in an absolutely flat/sideways mode. This continues to make each individual stock chart the most relevant factor. Currently, there are both good bullish charts as well as good bearish charts. These market conditions warrant having both long and short positions in the portfolio.


09/29 - Stock Market Comments

The markets continue to demonstrate a lack of conviction. Today's indecisive trading illustrates the trend channel as being the strongest indicator. However, individual sectors continue to outperform. Crude oil stocks are gaining strength with the prospect of Saudi Arabia cutting production. Utilize each individual stock chart pattern as the main criteria.


09/22 - Stock Market Comments

The most compelling confirmation today was the gap up through the resistance level in the NASDAQ, confirming a scoop pattern breakout. The S&P 500 gapped up through the 50 day moving average, also in the process of forming a scoop pattern. The Dow has gapped up and is currently nudging the 50 day moving average. The market trend has prospects of going much higher if today's trading closes near the high end of its trading range, scoop pattern slingshot affects.


09/21 - Stock Market Comments

Both the Dow and the S&P 500 have gapped up slightly today, above yesterday's open and continue to trade positive. This little kicker signal at the T-line provides more compelling evidence that the Bulls want to take control. Add to that, the NASDAQ gapping up trying to push through the upper resistance level. The T-line, along with a strong candlestick signal today, still remains the predominant trend indicator.


09/20 - Stock Market Comments

Today's positive trading is bringing both the Dow and the S&P 500 backup above the T-line, creating a slow bottoming action created by a piercing signal and a Morning Star signal over the past week and a half. The NASDAQ remains consistent above the T-line, making a scoop type pattern. Additional positive trading in the NASDAQ would create a breakout/bullish slingshot effect. Continue to stay predominantly long in the bullish candlestick patterns.


09/19 - Stock Market Comments

The Dow, S&P 500, and the transportation index are all trying to come up through the T-line today. The strongest indicator is the NASDAQ, gapping up today, forming a scoop pattern with a large piercing signal showing the reversal at the 50 day moving average last week. Crude oil prices are trading higher and gold prices appear to be holding at the most recent support level. Currently bullish sentiment is in control.


09/15 - Stock Market Comments

The NASDAQ is showing buy signals at the 50 day moving average, with current trading just above the T-line. The Dow, however, trading positive has stalled at the 3T-line and stochastics are still just now heading into the oversold area. This combination indicates the majority of the selling may be over, a bottom trying to form in this area. Short positions have not shown any great resiliency to the downside. Continue to take advantage of the bullish frypan bottom patterns.


09/14 - Stock Market Comments

Stay predominantly short.Investor sentiment is what moves prices. Until the indexes can show a candlestick buy signal and a close above the T-line, investor sentiment will remain bearish. Stay predominantly short, any long positions need to be very compelling, frypan bottoms/J-hook patterns.

09/13 - Stock Market Comments

Today's premarket futures immediately indicated which direction the market was going to go, yesterday was merely a bounce after a downtrend had started. Now the trend analysis becomes very simple, the markets will be in a downtrend until there is a buy signal and a close above the T-line. Stochastics indicate at least another few days of downtrend before they get into the oversold condition.

09/12 - Stock Market Comments

The hard selloff on Friday breached a lot of support levels and formed a Doji followed by a strong gap down in the Dow. This indicates a change of investor sentiment. Although the markets are trading slightly positive this morning, there has not been any indication the bearish sentiment has been repaired. Watch for some more selling before any sustained uptrend can be put back in place.

09/09 - Stock Market Comments

The indecisive nature of the market trend has been altered in today's trading. The Dow formed a Doji yesterday on the T-line followed by a gap down today. That combination indicates decisiveness, in this case to the downside. Long positions that have been trading positive but doubtful should be closed out if they are showing weakness in today's market. The short positions should be maintained and likely added to if the markets demonstrate more weakness early next week.


09/08 - Stock Market Comments

The nature of the market remains the same, indecisive and sideways. Fortunately this continues to make strong candlestick charts profitable trading. As long as the markets do not demonstrate any severe change of investor sentiment, each individual stock chart can be analyzed based upon the pattern it is developing. Stay predominantly long but there are also short positions that should be in the portfolio.

09/07 - Stock Market Comments

The indecisive trading of the market is still in progress except the transportation index is showing a good bullish pattern set up with it strong up move today. This implies investor sentiment, although indecisive, is indecisive in a slow upward manner. Continue to hold the strong sectors. The overall market trend still has to be assumed to be in a slow uptrend as long as the indexes continue to trade above the T-line.

09/06 - Stock Market Comments

Friday's gap up in both the Dow and the NASDAQ was an indication that strong buying came back into the market after the Dow formed a hammer signal at the 50 day moving average. The Labor Day weekend which indicates the end of the summer, usually has all the traders back to business. As seen in today's trading, the investor sentiment remains the same indecisive nature as illustrated for the past two months. With the indexes continuing to trade above the T-line, the prognosis remains simple, the sideways mode of the market remains in progress. Continue to evaluate each individual stock chart on its own merits/signals and patterns.

09/02 - Stock Market Comments

The hammer signal yesterday in the Dow bouncing off the 50 day moving average, followed by a gap up through the T-line today is pretty strong evidence the 50 day moving average was the support level target. The NASDAQ also has gapped up from a hammer signal from yesterday. This implies more upside, probably coming out of the sideways market from the past two months. The strong chart patterns continue to work well, i.e. SINA and YY.

09/01 - Stock Market Comments

The summer doldrums drift is still in progress, currently slowly trading to the downside. However, the Dow is currently trading right at the 50 day moving average. It will be important to see whether this level will hold. These market conditions still warrant having both long and short positions in the portfolio.

 

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