Daily Market Comments - November 2017
11/30/17 - Stock Market Comments
The Dow has gapped up a second time, taking it back into the major trend trajectory. The transportation index, after a huge breakout day yesterday, continues to trade positive. The most revealing index is the NASDAQ. After a huge selloff yesterday, it has bounced back up to where the trading is back up above the T-line. Caution is still required based upon the strong buying of the past few days. This is indicating exuberance. Stay predominantly long but be a little more diligent as far as taking profits on signs of reversals.
11/29/17 - Stock Market Comments
The Dow up strong, the transportation index up stronger, the NASDAQ selling off hard, indicating the market is currently very sector oriented. The candlestick charts clearly reveal which stocks/sectors are starting to sell off and which sectors are starting to be bought. AMZN, NVDA, AAPL, TSLA the big names that have acted well are now getting hard selling. Retailers and banks are getting good strength.
11/28/17 - Stock Market Comments
The steady climb in the market indexes have not shown any exuberance. Today, the consumer confidence report showed a 17 year high. Investor sentiment has not changed, the slow steady uptrend remains in progress. This is allowing specific stocks/sectors to perform well both on the bullish side as well as some on the bearish side.
11/27/17 - Stock Market Comments
The indecisive nature of the markets remain but still in a slow bullish uptrend. The Dow is showing good strength so far today while the NASDAQ is trading relatively flat and the transportation index has pulled back to the T-line. Overall, there is no change of investor sentiment. As long as the indexes remain above the T-line, consider the uptrend in progress.
11/21/17 - Stock Market Comments
The expected consolidation on a day before a very long weekend is in progress. Nothing has changed as far as investor sentiment when witnessing the NASDAQ trading slightly higher, the S&P 500 trading relatively flat, while the Dow is trading lower. The nature of the market remains the same, there are still good bullish charts creating profits as well as good bearish charts creating profits. Analyze each individual chart pattern on its own merit. This is why we recommend Trend Analysis.
11/20/17 - Stock Market CommentsThe only consistent factor for analyzing the overall market trend continues to be the T-line. The day to day analysis is not illustrating any consistency. However, the indexes are making the T-line the relevant trend factor. Today's positive trading is bringing the Dow backup through the T-line after the kicker signal of last week. The relatively indecisive trading of the NASDAQ is keeping the trading well above the T-line. The trend, albeit slightly positive, is still very indecisive. This makes having both long and shorts in the portfolio the most viable strategy.
11/17/17 - Stock Market CommentsThe expected consolidation today is in progress after the big bullish day yesterday. However, today's lower trading is still making the T-line an important factor. The Dow is currently trading slightly back below the T-line, the S&P 500 is currently trading right on the T-line while the NASDAQ is significantly above the T-line. This puts the market direction still in an indecisive mode. Both long and short positions continue to act well in this market. The regional airline stocks are working extremely well.
11/16/17 - Stock Market Comments
The NASDAQ has a best friend gap up above the T-line so far today. The Dow and S&P 500 have Bullish kicker signals. The T-line is still a major trend indicator on numerous stock charts, there Bullish moves continuing as they stay above the T-line (T-Line Trading). The indecisiveness/whipsaw action of the market indexes is going to be directly attributed to how the tax bill vote finishes out. The prognosis remains the same, have both long and short positions in the portfolio provided they are not showing reversal signals and a close above/below the T-line.
11/15/17 - Stock Market Comments
Each individual daily formations allows for much more accurate assessment of the overall market trend nature. Although the market indexes were not showing any convincing selling over the past few trading days, even given the prospects of the Bulls still tried to maintain control, the most compelling factor was that the indexes, although trading in decisively were trading below the T-line.
11/14/17 - Stock Market CommentsToday's lower trading is now creating strong bearish implications. The Dow has not been able to get back up above the T-line over the past few days of trading. Today's gap down and lower trading is further confirming the downward trajectory of the stochastics.
11/13/17 - Stock Market Comments
The market pullback is showing a consistent factor. The markets opened lower but trade above where they opened by the end of the day. This is currently demonstrating the sellers have not taken control of the trend. However, the indexes are trading below the T-line, giving more probabilities that investor sentiment is more inclined to be on the bearish side until there is a close backup above the T-line.
11/10/17 - Stock Market Comments
The market indexes are trading lower but not with any great decisiveness. However, they are trading lower after yesterday's Doji type days. Make sure you have some additional short positions in the portfolio. Any long positions now require the lack of any selling to maintain those positions until there is more decisiveness in the markets one way or the other. Be ready to take profits on the long side upon further weakness in the markets.
11/09/17 - Stock Market Comments
The markets are trading lower, the past week of Doji's in the Dow provided the suspicion of some profit-taking about ready to occur. However, currently the lower trading is showing Doji type day pullbacks, meaning not very convincing selling.
11/08/17 - Stock Market Comments
The potential reversal signals of yesterday, Doji's and bearish Harami's, in the indexes provided the prospect of some profit-taking/consolidation. Today's weakness in the markets can be construed as profit-taking versus a market reversal based upon the indecisive nature of Today's trading.
11/07/17 - Stock Market Comments
Today's trading is not showing any change of trend/investor sentiment. However there is an interesting formation and the transportation index. It is currently forming and inverted hammer signal right on the 50 day moving average. It is still early in the day but watch this index. A bounce up off the 50 day moving average creating wave three would be a strong indication that the uptrend in all the market indexes will remain in progress. The prognosis remains the same, stay predominantly long and have a few short positions in the portfolio.
11/06/17 - Stock Market Comments
The markets continue to show slow bullish strength. The big stocks,NVDA, AMZN, AAPL are maintaining steady bullish uptrends. Pattern breakouts are working, such as wedge breakouts in NFLX and ZYNE. As long as the overall market trend continues its steady but slow uptrend, the big profits are going to be made in pattern breakouts. Continue to stay predominantly long and maintain the short positions i.e. WATT as long as It does not demonstrate bullish reversal signals.
11/03/17 - Stock Market Comments
Nothing has been changed, today's relatively flat trading in the markets are demonstrating the uptrend remains in progress. This has made some candlestick breakouts very profitable. JUNO and BLUE have produced some big gains due to the bullish flutter kicker. Breakout patterns produce much stronger gains when it can be analyzed that the overall market is not showing any dramatic change of direction. The slow market movement still makes having both long and short positions in the portfolio of viable trading strategy.
11/02/17 - Stock Market Comments
The devil may be in the details! Everybody anticipates the tax cuts should boost the market, but the details of the tax cut may throw the politicians into a tizzy. The anticipation of how hard it will be to get the tax bill passed may have a deterrent on the market trend. This still requires attention to each individual stock chart, with long positions not demonstrating reversal signals and staying above the T-line while short positions should not be demonstrating buy signals and a close backup above the T-line. This needs to be watched more diligently based upon the potential of political rhetoric whipsawing the markets. Be ready to go more into cash if the markets start showing choppy reactions of political blubbering.
11/01/17 - Stock Market Comments
The tax plan delayed for a day, bad? Today's bullish trading in the markets may be the acknowledgment that a tax plan is about ready to be presented. Whatever the reason, it doesn't matter. The markets continue to demonstrate bullish sentiment. Is this exuberance at the top? Less likely, due to the fact that the S&P 500 and the Dow have been in a sideways consolidation for the past week and a half.