Daily Market Comments - December 2017
12/27/17 - Stock Market Comments
Although Today's market trading is not very dynamic, it is still consistent with the overall trend. The T-line continues to act as a support area. Any expected tax selling is more than likely going to be pushed into next year. This would make the current trend likely to persist up until Friday of this week. The slow uptrend continues to provide for the opportunity for strong candlestick charts to continue to move in a bullish direction.
12/26/17 - Stock Market CommentsThe trading between Christmas and New Year's is usually very light. However, the candlestick charts still provide valuable information on what is occurring in specific sectors of the market. The retailers are getting bullish attention indicating Christmas sales were very good i.e. BOOT, FL, DDS, ZUMZ.
12/21/17 - Stock Market Comments
Although the indexes have consolidation days, even creating potential reversal signals, one significant factor remains constant. The indexes have not been able to close back below the T-line. As a matter of fact, the 3T-line continues to act as a support. The validity of this trend is much more easy to visually analyze for the candlestick investor. Until there is a strong candlestick reversal signal and a breach of the T-line, there has not been any change of investor sentiment, the uptrend remains in progress. Numerous steady Eddie charts continue to produce good gains in the portfolio, i.e. ALK, GDS, SKX.
12/20/17 - Stock Market Comments
Today's lethargic trading in the markets indicates more profit-taking versus a reversal. While the Dow and S&P 500 are trading relatively flat, the NASDAQ is trading lower and the transportation index is trading higher. This merely indicates shifting of funds versus any major exodus in the markets. The nature of the market still remains very stock/sector specific. Continue to take profits in stocks that are start to show reversal signals. There are other sectors starting to rotate into strength. This is why we recommend Trend Analysis.
12/19/17 - Stock Market Comments
After the gap up in the indexes yesterday, in the overbought area, it was not unexpected to see some profit-taking today. Today's selling appears to be more profit-taking than any major reversal of investor sentiment because the candlestick signals are not showing any compelling sell signals. The underlying analysis is still that the indexes are trading above the T-line. The lack of any decisive selling continues to allow candlestick chart patterns to produce good profits, i.e. RIOT and the message signal in SQM.
12/18/17 - Stock Market Comments
Why is the market continuing higher with such great strength? The tax bill? Corporate earnings? Worldwide economic expansion? It doesn't matter. The analysis of the candlestick charts allows us to participate in the right market direction at the right time. In this case, the right direction has lasted for over 12 months.
12/15/17 - Stock Market Comments
Yesterday the market indexes created potential sell signals, bearish engulfing signals, but they did not close below the T-line. Confirmed selling would have been exhibited had the markets opened lower Today. The strength in Today's trading, as long as it remains going into the close, reveals the T-line is still a major support factor. The uptrend remains in progress as long as there is not a severe selling day going into the close today. Continue to analyze each individual stock chart on its own merits with the portfolio still oriented toward the long side.
12/14/17 - Stock Market Comments
Nothing has changed the uptrend except for the overall strength of the market might be showing it is getting ready for a rest. Although there is the continuation of polar opposite analysis of the political agenda in Washington, obviously Fox News and CNN have dramatically opposite reporting, the underlying factor is demonstrated by the overall market trend.
12/13/17 - Stock Market CommentsThe J-hook pattern in the indexes is still in progress, implying more upside. Especially if the trading continues above the T-line as well as the 3T-line. The continued strength of the market is making the short positions less attractive, stopping out of short positions. The steady uptrend's of the market are making the high probability/high profit candlestick patterns more viable, i.e. MIDD confirming a bobble breakout. USAT FP breakout. This makes for very easy entry strategies for both stocks and options.
12/12/17 - Stock Market Comments
The market indexes are trading above the 3T-line, let alone the T-line. The classic pattern in the Dow is in the process of confirming on today's positive trading. The NASDAQ is trading flat while the S&P 500 and transportation index continue to trade higher. There is no evidence of any profit-taking/selling occurring in this market. Also, there are no signs of exuberant buying.
12/11/17 - Stock Market Comments
The underlying nature of the market remains the same. Although Today's trading is relatively lethargic so far, there is no evidence of the sellers taking control. With the indexes continuing to trade above the T-line, the uptrend remains in progress. A subway bombing in New York City does not create a ripple in investor sentiment. Continue to utilize the chart patterns that are demonstrating the strongest price moves. Numerous J-hook patterns are still in progress.
12/08/17 - Stock Market CommentsThe J-hook pattern is the predominant analysis in both the indexes as well as numerous individual stocks. The positive trading in the indexes today are further confirming that the T-line is still acting as a viable trend support. The NASDAQ gapped up well above the T-line Today, indicating an extremely high probability the uptrend will continue and may continue with some excessive force. Stay predominantly long but be nimble. This market still requires trading specific stocks and sectors.
12/07/17 - Stock Market Comments
Today's positive trading in the Dow and S&P 500 is making the T-line and obvious relevant factor. The NASDAQ, after a left/right combo yesterday is trading backup right to the T-line. If the markets close near the high end of their trading range today, it has to be evaluated that bullish sentiment is now offsetting the profit-taking/consolidation of the past few trading days. This makes Today's close very important, indicating whether the T-line is going to show a reversal of the consolidation.
12/06/17 - Stock Market CommentsThe weakness in the markets are producing numerous sell signals in individual stock prices. These market conditions are making it clear that there is profit-taking/selling occurring. Analyze each stock chart position. If it is showing sell signals, close out the position. There will be plenty of good buy charts after the market finishes its consolidation. The short positions should be producing good profits during this pullback. Expect more downside as the indexes continue to head down toward support levels.
12/05/17 - Stock Market Comments
The market indexes are back in an indecisive mode, the Dow closed at the lower end of its trading range yesterday even though it ended up closing positive. This lack of buying is much more visually identifiable based upon the candlestick formations.
12/04/17 - Stock Market CommentsThe results of the tax bill are being seen in the Dow and the transportation index. The S&P 500 opened higher but is currently trading below where it opened, not showing follow-through strength. The NASDAQ opened higher but is currently trading much lower, forming a potential bearish left/right combo. Although the hanging man signal on Friday, formed by bad news reporting, still is a graphic depiction of what was occurring in human nature. These market conditions warrant being prepared to take profits on charts that are showing signs of weakness/sell signals.
12/01/17 - Stock Market Comments
Today's market consolidation is being attributed to Flynn's guilty plea. But maybe the markets are merely consolidating/resting after a big huge move so far this week. Currently the Dow is trading positive in the NASDAQ, although trading lower, is trading near the high of the day after opening lower. Nothing is indicating there has been any change of overall market investor sentiment, the bullish sentiment remains in progress.