Daily Market Comments - August 2017
08/31/17 - Stock Market CommentsThe Bullish trading Yesterday confirmed the market indexes Left/Right Combo Signals. The downtrending channel of the past month was breached to the upside yesterday, confirming the Left Right combo. This produce high probabilities that prices were moving higher.
08/30/17 - Stock Market Comments
The Dow and S&P 500 are trading relatively flat, the same nature of how they have traded over the past few weeks. This is still a function of the summer doldrums as well as the lack of activity in Washington DC. However, the NASDAQ is showing a possible breakout of the Downtrending Channel after Yesterday's Left/Right Combo signal.
08/29/17 - Stock Market CommentsThe nature of the market has been indecisive for the past few weeks. An event like the North Korean missile rocket launch has a more bearish reaction that if the nature of the market had been solidly positive. However, after the Dow opened down 125 points, it has climbed up to where it is often only 40 points. This indicates the initial selling was merely a knee-jerk reaction versus the start of a major selloff.
08/28/17 - Stock Market Comments
Although the hurricane damage in Texas is dominating the news, the markets are not doing anything more relevant than what their existing trend sentiment was exhibiting all last week, merely sideways, noncommittal direction. This lack of direction can be contributed to the last week of the summer doldrums, as well as the hurricane throwing a little bit of indecision into most people's market evaluation. Continue to use each individual stock chart as the prime analysis.
08/25/17 - Stock Market CommentsToday's positive trading in the markets are still under the influence of the downtrending channel. The upper resistance level of the trend channel has not yet been breached. This puts the market sentiment still in a indecisive and possibly a lower trend channel continuation until the upper resistance level can be broken. Each individual stock chart and/or sector remains the main criteria for establishing long or short positions. Strong candlestick buy signals are easily identified, i.e. PI and strong sell patterns continue to demonstrate good short positioning, i.e.POOL.
08/24/17 - Stock Market Comments
The Resistance Level at the Downtrending channel top continues to act as a resistance level. This is probably the result of the gridlock in our nations capital. The indecisive trend still makes each individual stock and/or sector the prominent analytical factor. The drifting market makes identifying the ultra strong signals more important. Otherwise prices do not appear to have any great Bullish or Bearish forces to help them move.
08/23/17 - Stock Market Comments
Although the indexes are trading lower, they are trading above where they opened. This is an indication there is any dramatic selling, merely some initial profit-taking from the big move Yesterday followed by some more buying. Also, the indexes are all hovering around the T-line, providing the possibility of the T-line acting as a support level.
08/22/17 - Stock Market CommentsThe simple Doji rule! Yesterday the indexes formed an indecisive day, a Doji day, on observable potential support levels. Today's positive trading confirms the support at those levels. The Doji rule – prices will move in the direction of how they open after a Doji. Knowing the simple rule allows for the quick decision-making for covering short positions and establishing long trades immediately. If the markets continue to trade higher Today, anticipate the support levels have shown they are acting as support. Now watch to see what the indexes do at the T-line area.
08/21/17 - Stock Market Comments
The indecisive trading of Today's markets is occurring at potential support levels. The NASDAQ is currently trading in decisively at the reversal level of last week. The Dow is currently trading right on the 50 Day Moving Average with stochastics going into the oversold conditions. These will be important levels to watch for an indication of whether support at these levels indicate the markets are merely in a profit-taking pullback or a breach of the support levels indicating a bigger downside potential. The prognosis remains the same, have both long and short positions in the portfolio.
08/18/17 - Stock Market Comments
The markets are currently doing hammer/Doji type days with the Dow almost touching the 50 day moving average at its low. More significantly, the NASDAQ is doing a Doji/hammer signal right at the same level at bottomed out last week. This does not necessarily mean the downtrend is over but more an indication the markets may be back in a wedge/sideways mode. Continue to have both long and short positions in the portfolio.
08/17/17 - Stock Market CommentsYesterday afternoon selling brought the indexes back down to where they were forming Doji's. Today's lower open, with a close below the T-line in the indexes makes the prospects of the sideways movement of the market more likely. This would not be unusual during the August vacation time frame. These market conditions still make having both long and short positions in the portfolio.
08/16/17 - Stock Market Comments
Today's positive trading in the indexes are creating trend kicker signals. This produces a high probability outcome of more upside provided the markets close positive today. It is also producing J-hook patterns. This is consistent with the characteristic of this uptrend, steady up moves followed by profit-taking followed by steady uptrend. There are still numerous short positions that are working well in this market. Continue to have both long and short positions in the portfolio.
08/15/17 - Stock Market CommentsThe markets are not showing any dynamic strength today but they are still trading above the T-line. The Dow has actually used the T-line as support today at its low end of trading. As long as the indexes remain above the T-line, the uptrend is in progress and probably what the same characteristics as the uptrend prior to the selloff late last week, a slow steady uptrend. The trading environment remains the same. Have both long and short positions in the portfolio.
08/14/17 - Stock Market CommentsToday's positive trading is confirming the bullish Harami's of Friday, which indicated the selling may have stopped. If the market indexes close of the top end of their trading range today, they will be confirming the bullish Harami's and closing backup above the T-line, creating another J-hook pattern probability. Be ready to cover short positions if the market closes on a strong bullish finish today.
08/11/17 - Stock Market Comments
The initial bounce after a big selloff day is the recouping of the panic selling better occurs near the end of the day. Yesterday's hard selling showed confirmation the Bears were in control with the indexes doing bearish trend kicker's and closing below the T-line. Today's positive trading, unless it does a severe bullish move back up toward the open of yesterday's candles, should be viewed merely as a bounce. The downtrend should be anticipated as long as the indexes do not show strong reversal signals and a close backup above the T-line. Be careful of any long positions and be oriented toward the short side.
08/10/17 - Stock Market Comments
Today's gap down open is creating bearish trend kicker signals. If the markets close near the lower end of their trading range today, a bearish trend kicker implies a strong force to the downside. Expect more downside. The areas to watch are the support levels such as the 50 day moving average for the NASDAQ and the S&P 500. The Dow has gapped down below the T line today. This all implies further downside. The short positions should be a stronger bias.
08/09/17 - Stock Market CommentsIt is the summertime! The only trending index has been the Dow, which formed a long legged Doji yesterday, creating the prospects of some profit-taking. Today's lower trading in the Dow is currently forming a Doji right on the T-line. This implies profit-taking versus a full-scale reversal of the markets. The NASDAQ and the S&P 500 had been trading relatively sideways for the past three weeks. Today's lower trading provides the implication that the slow downward drift is still in progress, making a sideways move until the 50 day moving average catches up a likely scenario. Continue to have both long and short positions in the portfolio.
08/04/17 - Stock Market CommentsAlthough the markets have opened higher today, they appear to be starting to drift lower. This remains consistent with the lack of bullish sentiment in the NASDAQ and the S&P 500 over the past week or two of trading. Although the Dow has been hitting record highs, it is doing so with very indecisive trading days, Doji type days. These market conditions still make having both long and short positions in the portfolio the prudent strategy. Expect more sideways trading in the markets for the next few trading days. This is why we recommend Trend Analysis.
08/03/17 - Stock Market CommentsYesterday's Bullish Enthusiasm from AAPL helped stabilize the markets, the Dow anyways, but it somewhat masked the weakness that was being demonstrated in the NASDAQ and S&P 500. Although the Dow is trading higher today, the NASDAQ and S&P 500 continue to demonstrate bearish candlestick signals. Currently there is no dramatic selling pressure, merely indication that the bullish sentiment has dramatically diminished. This market environment warrants having both long and short positions in the portfolio.
08/02/17 - Stock Market CommentsObserve the obvious! Without the strength of Apple Today, the Dow would be showing weakness. The NASDAQ and S&P 500, although opening higher, are now trading lower. The NASDAQ is in the process of forming its third bearish engulfing signal over the past five trading days. This illustrates the lack of any bullish sentiment, the sellers are starting to take control. Any long positions showing weakness should be closed. Short positions should be added to the portfolio. This is why we recommend Trend Analysis.
08/01/17 - Stock Market Comments
Although the Dow continues to trade higher, into record territory, the other indexes are not showing any great strength and a big percentage of stocks are currently trading lower or sideways. This demonstrates there is not an across-the-board strength in the overall market. Simple Candlestick Scanning Techniques are revealing many better short position charts than long positions.