Daily Market Comments - June 2006
6/30 -- Stock Market Comments
The quarter-point rate height was apparently what the market wanted to see. The negative investor sentiment that had overhung the market for the last few weeks disappeared completely with that announcement. The Dow moved from the 200 day moving average back up to the 50 day moving average. Trading above that level will negate the 50 day moving average acting as resistance. Look for investor sentiment to continue to be positive in the markets in the near term.
6/29 -- Stock Market Comments
The Fed announcement today should have the markets in a "wait and see" mode. There still should be some sectors that move well despite what the Feds do, such as the oils. We would not do anything aggressive today until after the announcement.
6/28 -- Stock Market Comments
The selling of Tuesday broke down through the potential trend channel that was developing. The evaluation of a slow uptrend, based upon that trend channel, has now been negated. Look for continued selling over the next few days. Short the weak sectors. The major airline industry is rolling over. Tech stocks also are showing weakness. Long positions that are not showing any strength should be closed out. The markets should head lower until something dramatic changes investor sentiment.
6/27 -- Stock Market Comments
The buying on Monday provided more chart evidence that the market is in a sideways movement. However, there are sectors acting strong, home builders, mining, and oil service companies. This is still a market environment to stay long in the strong sectors and have a few short positions in the portfolio.
6/26 -- Stock Market Comments
The lack of strength in the markets late Friday afternoon provided some more evidence of weakness or sideways movement. Neither the Dow nor the NASDAQ are indicating any directional movement. This now provides an environment for keeping both long positions and short position established in the portfolio.
6/23 -- Stock Market Comments
The markets had an opportunity to show more strength on Thursday. All the indexes formed Bearish Harami signals. This indicates that there is not a strong bullish force in this market yet. This morning's weakness continues to show that evidence. This market now may be in a sideways mode. Close out the long positions that are showing weakness and add a few short positions to the portfolio.
6/22 -- Stock Market Comments
The strength in the markets on Wednesday was a result of the reversal signals at the bottom of the downtrend last week. Notice that after the Bullish Engulfing signal formed in the Dow, the strong up-move resisted slightly at the 20 day moving average. This illustrated normal consolidation after the strong initial move. The NASDAQ also showed consolidation after its initial up-move. It did not close above the close of the last large bullish candle. That would have created a Three Methods Rising signal. A strong move today in the NASDAQ would bring it up through the 20 day moving average, a possible resistance level. Continue to hold long positions. The mining stocks are starting to show good strength again.
6/21 -- Stock Market Comments
The Dow formed a Bullish Harami on Tuesday. The NASDAQ formed an Inverted Hammer signal right on the 500 day moving average. The stochastics in both indexes are starting to move in a positive direction. The current candlestick signals