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Daily Market Comments - March 2017

03/29/17 - Stock Market Comments

With the Dow trading lower and the NASDAQ trading higher, this illustrates the markets are very sector specific. The biotech's, as seen in LABU, continues to act very well. CARA, CLSD, EXAS continue to act very bullish. Stay predominantly long, with a few short positions in the portfolio, as long as the short positions are not showing any bullish sentiment I.E. UFS. Currently the market indexes are not showing any dramatic bullish sentiment or bearish sentiment, allowing each sector to perform.

03/28/17 - Stock Market Comments

The NASDAQ is having problems getting through the T-line after yesterday's bullish engulfing signal. The Dow is trading slightly positive but the big bullish indicator today is the transportation index trading positive, heading back up to test the T-line. Although there isn't any rampant buying today, there isn't anything to indicate any major change of investor sentiment, implying the markets may have found a support at the 50 day moving average yesterday. The prognosis remains the same, this market is sector specific. Biotech's are acting well, hospital stocks appear to be picking up strength, semi conductors are showing strength.

03/27/17 - Stock Market Comments

The expected knee-jerk reaction to the cancellation of the health bill has taken the Dow right down to the projected target, the 50 day moving average. Although the market indexes are trading lower today, the NASDAQ, the S&P 500, and the transportation index are trading above where they opened. The Dow is trading towards the higher end of its trading range so far today. This implies the selling is not of a rampant nature. Numerous stocks that were trading in good uptrends last week opened lower today but now are continuing to trade positive. The markets continue to show continued strength in specific sectors. Have both long and short in the portfolio.

03/24/17 - Stock Market Comments

Today's healthcare vote remains the prominent influence of the market movement. With the market not moving with any great decisiveness yet, each individual stock chart remains the predominant evaluation. Biotech stocks continue to act well. Gold stocks are attempting to hold up, oil stocks are still in downtrends. Each sector needs to be evaluated.

03/23/17 - Stock Market Comments

The market direction is definitely a function of whether the healthcare vote is going to be positive, negative, or postponed. Yesterday's Doji in the Dow and S&P 500 occurred on a downtrending support line. Today's positive trading has the inkling of moving back up to test the T-line. However, the reactionary move is still going to be predicated upon the number of likely votes for or against a new healthcare plan. Stay diligent.

03/22/17 - Stock Market Comments

Today's current selling is the expected follow-through after yesterday's bearish left right combo. The political rumblings of Washington is the main excuse. The current downtrend could take the Dow and S&P 500 and NASDAQ down to test the 50 day moving average. This would also be the approximate 50% retracement of the last trend based upon Fibonacci numbers. Expects some more downside, obviously short positions should have stronger relevance.

03/21/17 - Stock Market Comments

After opening positive today, the market indexes have sold off dramatically, creating a bearish left/right combo that needs to be acknowledged. This strong sell signal will be very relevant if the markets close at the low end of their trading range today. But keep in mind, the day is not over. A close backup above the T-line would indicate the trend is continuing the uptrend.

03/20/17 - Stock Market Comments

Today's trading is not showing any change of investor sentiment. The Dow and the NASDAQ continue to form a slow curve/J-hook pattern illustrating the T-line is acting as the support level. Overall, there is no evidence of any selling pressure, which indicates the current uptrend remains in progress. The lack of any dramatic bullish or bearish pressure on the overall market is allowing current strong trending stocks, either bullish or bearish, to continue their trends. The predominant analysis remains staying long or staying short in trends that remain above or below the T-line.

03/17/17 - Stock Market Comments

What are the candlestick charts indicating as far as the market trend? Because we can recognize the potential of a J-hook pattern, it can be implied that investor sentiment is still relatively bullish or at least not showing any signs of bearish sentiment. Currently the indecisive trading in today's market, although not showing any buying strength, is still not altering an observable pattern. Having this visual knowledge, witnessing the trading remaining above the T-line, allows investors to maintain and/or add bullish positions based upon strong candlestick charts. As long as the indexes remain above the T-line, the probabilities tell us the uptrend is still in progress.

03/16/17 - Stock Market Comments

What is the nature of the market trend? Although today's trading is not showing the resiliency that was seen in yesterday's trading, the market indexes are showing patterns that are easily identifiable. The Dow, S&P 500, and the NASDAQ are all in the process of setting up a bullish J-hook pattern. The lack of aggressive bullish sentiment on any particular day does not offset the information provided in the candlestick pattern. These candlestick signals are clearly defined in our free 12 Major Candlestick Signals. It actually illustrates there is no exuberance in this market uptrend. This creates a much more solid, less whipsawing, market trend. Continue to stay long with some short positions in the portfolio.

03/15/17 - Stock Market Comments

The T-line continues to be an important trend factor. What does it mean when the Dow is trading in decisively and sideways right at the T-line? It means the market is not moving in any great direction. Simple visual analysis reveals the NASDAQ and the S&P 500 trading backup above the T-line, waffling back and forth. The transportation index has been selling off hard for the past two weeks but trading positive today.

03/14/17 - Stock Market Comments

Today's selling continues to demonstrate the indecisive, lack of direction of the markets that has occurred for the past two weeks. The NASDAQ had been showing bullish persistency until today's little gap down/kicker signal. Unless the markets shows some strong bullish sentiment going into the close, investor sentiment will be proving to be turning bearish based upon closing back below the T-line.

03/13/17 - Stock Market Comments

The Dow is down, the NASDAQ is up, and the S&P 500 is flat. No change of investor sentiment. The NASDAQ is the most compelling indicating the potential of a J-hook pattern with it continuing to trade above the T-line. The S&P 500 is trading right at the T-line. The Dow just slightly below the T-line. The lack of any identifiable reversal signals implies the uptrend remains in progress albeit relatively slow. This makes analyzing individual stocks/sectors the prominent analysis. Gold prices appear to be stabilizing. Shipping stocks are showing good strength today.

03/10/17 - Stock Market Comments

The indecisive pullback in the markets over the past week was an indication that there was not any aggressive selling sentiment in the market. Today's positive trading, especially in the NASDAQ, indicated the markets were ready to turn bullish on any good news. Today's job report provided that stimulus. If the markets maintain strength going into the close, demonstrating that they will close above the T-line today, there would be good probabilities wave three of a J-hook pattern was starting. Currently the markets are trading at the low end of their range. It will be important for a bullish trend to have strength exhibited going into the close. The T-line remains a critical analytical tool.

03/09/17 - Stock Market Comments

The markets continue to demonstrate a lack of selling pressure. The past week of trading has revealed an indecisive pullback, implying profit-taking versus a reversal. Yesterday's hard selling in the Dow is being offset by a potential bullish Harami today that might be closing right at the T-line. The prognosis remains the same, as long as there is not a severe sell signal in the market indexes, the uptrend is likely still in progress.

03/07/17 - Stock Market Comments

The markets continue to drift lower, with emphasis on the term drift. The Dow, although trading lower, is forming another Doji type trading day, continuing to trade above the T-line. The NASDAQ and S&P 500 are also currently forming a Doji days at the T-line area. The indecisive nature of the daily formations illustrate there is no strong selling pressure. And there has not been a candlestick sell signal in the Dow or the NASDAQ. Anticipate more profit-taking but until there is a dramatic sell signal, the uptrend is likely still in progress.

03/06/17 - Stock Market Comments

The graphics of candlestick charts clearly show the indexes utilizing the moving averages as support potential. The NASDAQ is trading right on the T-line, the Dow is trading in decisively at the 3T-line. The overall analysis is that the markets are trading lower but in decisively. The trend analysis remains simple, the uptrend remains in progress as long as there is not a close below the T-line. Specific sectors continue to act well, i.e. biotech's. Stay with the strong sectors and have a few short positions in the portfolio.

03/02/17 - Stock Market Comments

There are some huge profits being made in this market rally over the past few months, especially when candlestick charts pinpoint which sectors are acting the strongest. LABU provides the visual evidence that the biotech's have had a strong price move, a pullback/profit-taking, followed by another strong price move. This makes LABU as a viable leverage trade but it also allows the candlestick investor to stand for the strongest chart patterns in the biotech sector.

03/01/17 - Stock Market Comments

Observe the obvious! Apparently investors liked what they heard in last night's speech. Does this change the fundamentals of many companies? Obviously the perception is that the earnings potential of companies are getting better based upon this administrations policies. This is why we like Candlestick signals, it gives you an unfair advantage over other chart analysis. Stay long, biotech's continue to maintain their strength. Gold stocks are selling off, the economic fear factor is diminishing.

 

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