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Stock Market Comments - August 2005

08/31 - Stock Market Comment - Aug. 31, 2005

Tuesday's final hour of trading brought the Dow back up from the lows of the day. The most striking feature is the fact that the low of Tuesday was exactly the same low that was hit by the Dow on the previous day. This forms a Tweezer Bottom. A Bullish Engulfing signal was formed on Monday in the Dow. Tuesday, the formation was not quite a Hammer signal but it did
form a Tweezer Bottom. This becomes significant when occurring in the oversold conditions.

The market is trying to bottom. Be prepared to buy but this does not need to be done aggressively until strong buy signals appear in the markets again.

08/30 - Stock Market Comment - Aug. 30, 2005

Although the markets showed good bullish signals Monday in the oversold condition, the uncertainty of the hurricane situation will probably make for a few days of bottoming action before a major uptrend can get started. Crude Oil, opening at $69 on Monday, immediately started pulling back. The dark candle that it formed should be an indicator that prices may have a hard time climbing from this level.

Continue to buy the good long positions but be nimble. 

08/29 - Stock Market Comment - Aug. 29, 2005

The hurricane is going to be the predominant factor in today's trading. The expectation of what has happened to the oil rigs offshore is going to greatly influence
Crude Oil prices today. Although this is short-term reaction trading, it will influence investor sentiment.

Friday did not show any buying support in this market. What needs to be seen today is an early sell-off followed by late afternoon buying to indicate a bottom to this recent downtrend.


08/26 - Stock Market Comment - Aug. 26, 2005

Thursday's trading demonstrated the lack of direction. It is not unexpected as the indexes are trading very close to the moving averages. It is a Friday in late summer. There may not be any great movement in today's trading. The indexes are oversold, apparently looking for a catalyst to get moving. Continue to hold the long positions that are doing well in this market.


08/25 - Stock Market Comment - Aug. 25, 2005

Although the Dow sold off relatively hard on Wednesday, the NASDAQ formed an Inverted Hammer very close to the 50 day moving average. Both indexes are in the oversold condition.

A bullish day in the NASDAQ would confirm the Inverted Hammer signal. If this occurred right at the 50 day moving average, it would have great significance as far as indicating a trend reversal.

Crude Oil closed right near its all-time high on Wednesday. The stochastics indicate that it could go higher. However, if the price appears to fail the current level, this would indicate a Double Top. Weakness in the Crude Oil prices from this level could add strength to the equity markets.


08/24 - Stock Market Comment - Aug 24, 2005

The slow market decline that has been projected for the past two weeks has now reached the support levels, the moving averages. Stochastics have gotten back to the oversold condition. What should be the next market trend expectation?

This morning the economic news shows that large consumer sales are down much greater than expectations. The markets will open lower. The trading needs to be watched to see what Candlestick formation is seen today. Weakness going into the close would indicate more selling for the next few days as the major moving averages would have been violated. On the other hand, a lower open at the end of a slow down trend may eventually form a bullish signal today.



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