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Daily Market Comments - July 2017

 

07/31/17 - Stock Market Comments

The markets are still in a mixed mode, the Dow trading positive and the NASDAQ trading negative. The T-line continues to act as a relevant factor. Numerous stocks and indexes that moved back up from lower opens on Friday to the T-line area are not getting confirmation Today. The trading environment remains the same, each individual stock chart needs to be analyzed on its own. Specific stocks and sectors continue to show strength or weakness in this market. There is no overall consensus of the market direction.

07/28/17 - Stock Market Comments

The T-line has illustrated that it is a very effective trend indicator. Any stock positions that traded below the T-line when the market started selling off clearly indicated the buyers had disappeared and probably would not come back into the trades until prices came back up above the T-line.

07/27/17 - Stock Market Comments

The markets are starting to show some warning flags. The transportation index is selling off excessively strong. The NASDAQ has Gapped Up in the overbought condition. AMZN has Gapped Up, FB has Gapped Up. Exuberance is starting to creep into the markets. Be careful, these are signs of potential reversals. Be ready to take profits on trades that might start showing sell signals in the overbought condition.

07/26/17 - Stock Market Comments

Today's Gap Up positive trading in the Dow is forming a Bullish Flutter Kicker Signal. Although the markets are at all-time highs, if the Bullish Flutter Kicker Signal persists going into the end of the day, this will be a strong indication there is still more upside. The NASDAQ and S&P 500 continue to move in their slow steady uptrend, currently not showing any major change of investor sentiment.

07/25/17 - Stock Market Comments

Yesterday the Dow is down and the NASDAQ was up. Today the Dow is up and the NASDAQ is down. Clearly indicating there is no definite bullish consensus in the overall market, merely funds shifting from sector to sector. When the market remains indecisive/choppy, the combination of candlestick signals being confirmed by the T-line becomes a good probability trend indicator.

07/24/17 - Stock Market Comments

Summer doldrums or consolidation? It doesn't matter, currently the markets are not showing any great strength one way or the other. This is probably a function of it be in the middle of the summer and there is nothing currently that is stimulating Bullish or Bearish sentiment. In these market conditions, holding existing positions require the simple trend analysis, our long positions remaining above the T-line and are short positions remaining below the T-line. Adding any new positions requires very compelling buy or sell signals. Anticipate some boredom.

07/21/17 - Stock Market Comments

The hanging man signal that formed in the NASDAQ and the S&P 500 Yesterday provided a little bit of a warning of potential profit-taking if the markets opened lower Today. There are no significant signals in. Those indexes that would indicate a major change of investor sentiment, the NASDAQ is still trading above the 3T-line. The Dow is currently trading below the T-line. If it closes at the lower end of today's trading range, that would show a breach of the Frypan Bottom trajectory that had been remaining above the T-line. That pattern requires the Dow to close above the T-line Today to maintain the Frypan Bottom Analysis. A close below the T-line would imply more sideways movement on a short-term time frame.

07/20/17 - Stock Market Comments

The lack of movement in the markets today still indicate there is no major change of investor sentiment. The Dow, although trading lower, has use the T-line once again as support and trading above the T-line. A slow moving market is not a deterrent. Numerous Bullish Candlestick Charts continue to act very well based upon the fact that there is no evidence of bearish pressure in this trend. Continue to maintain the long positions simply by staying in positions that are not showing any candlestick reversal signals or trading below the T-line.

07/19/17 - Stock Market Comments

The uptrend remains in progress with a couple important messages being conveyed today. The NASDAQ and the S&P 500 have Gapped up through the highs from around 1 June. The gap up has occurred in the overbought condition. Depending upon how the markets close today will illustrate whether this was exhaustion in the overbought condition or the recent highs are not acting as resistance anymore. A close near the high end of the trading range in the indexes would indicate wave three is still in progress. A candlestick reversal signal, such as a Doji or a Shooting Star, would indicate the potential of Today's gap up being an exhaustion of Bullish investor sentiment. Stay long but watch how the markets close Today.

07/18/17 - Stock Market Comments

The T-line becomes a much more relevant factor when trends are not showing a distinctive set of Bullish Candles or Bearish Candles. Slow oscillating Uptrends usually have Bullish days as well as Bearish days. The trend remains more defined as long as the Bearish days do not breach the Uptrending T-line. Although the market indexes are trading lower Today, they are still trading above the T-line. The NASDAQ and S&P 500 are using the 3T-line as support. This provides evidence that the Bulls are still very much in control, the breakout patterns of last week still reveal a wave three to be in progress. Continue to stay predominantly long, using the T-line as your final factor.

07/17/17 - Stock Market Comments

The positive trading in the NASDAQ and S&P 500 show the wave three uptrend still in progress. The Dow, although trading flat Today, is still in a Frypan Bottom Trajectory. This illustrates the Bullish sentiment/Trend is still in progress. More evidence is seeing that AMZN,AAPL, NFLX are still in Uptrends, indicating the overall markets are not showing any signs of investor selling.  Maintain long positions that continue to trade above the T-line and not showing any sell signals.

07/14/17 - Stock Market Comments

Bullish sentiment continues to be demonstrated. The positive trading Today, although not very excessive, shows the Dow in a Frypan Bottom/J-hook Pattern. This implies the uptrend will continue with the potential of the same price move the markets demonstrated from mid-May to mid-June. This makes the market analysis relatively easy. As long as the indexes remain above the T-line, the uptrend remains in progress.

07/13/17 - Stock Market Comments

Today's indecisive trading in the markets is not unexpected after a big move from Yesterday. The strength of Yesterday's trading provided evidence that the bullish trend was still in progress, with the NASDAQ and the S&P 500 breaking up through a Downtrending resistance level. Stay predominantly long, any short positions in the portfolio should have compelling weakness.

07/12/17 - Stock Market Comments

After Yesterday's Hammer/Doji type days in the indexes, bringing the indexes backup above the T-line, it was very important to see the markets open positive to confirm that the Bulls were still in control. The gap up in the indexes Today is showing very strong Bullish confirmation. The Dow is in the process of forming a slow curve/J-hook Pattern set up. The S&P 500's Gapped Up through the downtrending resistance level. The NASDAQ is also Gapping up pushing through the Downtrending resistance level. The indexes obviously need to maintain their strength going into the end of the trading day to confirm these strong pattern implications. That would imply the consolidation of the past month is likely over.

07/11/17 - Stock Market Comments

Once again the markets are trading in the opposite direction of the previous trading day, making the overall direction a flat/sideways trajectory at best. The Dow is selling off the hardest. If it closes at these levels, a slow sideways slightly downward trend would continue until the 50 day moving average catches up. To continue a reasonable uptrend requires the indexes to close above the T-line Today. These market conditions still warrant analyzing each individual position based upon the price not showing a reversal signal and a close below the T-line. When the market is not providing any consistent trend, any open positions should reveal a good trend. Otherwise, sitting in cash for a few days does not hurt.

07/10/17 - Stock Market Comments

Although there is not any dramatic buying in the market today, the indexes reveal the confirmation of the bullish support demonstrated on Friday. The kicker type signal in the NASDAQ brought that index back up to the T-line. Today's positive trading is currently forming a Doji above the T-line but resisting at the 50 Day Moving Average. The Dow continues to form a slow Frypan Bottom pattern using the T-line as a support level. The lack of selling pressure is illustrated by the biggies such as AMZN , NVDA, NFLX confirming the reversal signals that formed on Friday. This is another visual evidence that investor sentiment has not turn bearish. The lack of dramatic overall market direction still makes the analysis of each individual stock/sector the main priority.

07/07/17 - Stock Market Comments

Today's positive trading currently indicates the lack of aggressive selling, continuing to make the sideways drift of the market the top prognosis. These market conditions still indicate having both long and short positions in the portfolio. Although the market does not want to go higher, it does not appear to want to go lower either. The T-line remains a crucial factor for analyzing which direction a trend is moving.

07/06/17 - Stock Market Comments

The magnitude of Today's selling is negating any candlestick bullish signals or patterns in the indexes. Yesterday's trading in the Dow formed a hanging man/Doji at the breakout area. Today's Gap Down in the Dow is trading below Yesterday's low of the Doji and currently trading below the T-line. A close in this area would put the markets back into a slow sideways drift at best. The NASDAQ formed a Bullish Harami Yesterday. It needed to open positive demonstrating the support level was continuing to act as support. Today's gap down below Yesterday's open reveals severe weakness in the NASDAQ. Unless the market indexes close near the high end of their trading ranges, especially backup above the T-line, the direction of the market will be dismally sideways at best.

07/05/17 - Stock Market Comments

Although the Dow is trading slightly lower today, it has revealed that it was using the T-line as support at the low of the day. The NASDAQ is trading higher Today, the S&P 500 is trading flat. This indicates there is no major change of investor sentiment, the slow uptrend in the markets continue. Sector rotation is in progress. Long positions and short positions should be based upon identifying and utilizing the strong candlestick charts. The remaining trading days of this week may be fairly low-volume due to the holiday week, the vacationing mode is still prevalent.

 

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