Daily Market Comments - February 2018
02/12/18 - Stock Market Comments
Today's positive trading is indicating a possible basing area in the markets. A reversal requires strength going into the close. Currently, the Dow is trading at where it opened after trading higher, demonstrating the lack of bullish follow-through so far today.
02/09/18 - Stock Market Comments
Be careful, although the markets are trading positive today, they are not trading above where they opened. Unless the markets can produce convincing bullish Harami's Today, the downtrend is still in progress. It is still early in the day, not unusual to see the initial bounce after a big selling day. Remember, candlestick signals are created by where prices open and close. Nothing yet has indicated the Bulls are able to take control. Stay predominantly short until there is convincing bullish signals.
02/08/18 - Stock Market Comments
Yesterday, the market indexes demonstrated a Doji type day, a day of indecision while still trading below the T-line and the 50 day moving average. The Doji rule made it very easy to anticipate the direction of today's trading. If the markets continue to show the lack of strength to get them above the 50 day moving average and/or the T-line, it will be assumed the downtrend remains in progress until the next major reversal signal. Short positions need to be maintained as long as they do not close above the T-line.
02/07/18 - Stock Market CommentsThere were numerous bullish signals yesterday, many bullish engulfing signals and piercing signals. Today there is a lot of follow-through, bouncing prices back up toward T-line's. But be careful, the T-line remains a very relevant indicator for the confirmation of price moves back in a positive direction. After severe selling in the markets and individual stocks, it will not be unusual to see some waffling below the T-line for the next few days. Any bullish trades placed today should be done with the anticipation of moving back out of those trades very quickly if the buying is not maintained.
02/06/18 - Stock Market CommentsHave the markets bottom? That is a hard question to answer based upon the daily chart. However, it can already be assumed that with such a hard selloff over the last few days, there might be some buying stepping in. But how do we know if that is a full-scale bottoming action or merely a bounce? Simple, watch your 10 minute chart. Currently the Dow 10 minute chart is illustrating that any buying occurring so far today has run into resistance at the 10 minute chart T line. Until the 10 minute chart illustrates the Bulls taking control, maintain the short positions.
02/05/18 - Stock Market Comments
Be careful! Although a couple of the major indexes, after opening much lower, are now trading slightly positive. But this is not creating any candlestick reversal signals. The fact that the stochastics are still heading down causes some suspicion that the market has not yet bottomed out.
02/02/18 - Stock Market Comments
The use of logical stop's produces a natural reversal in the portfolio positioning. Over the past week, profitable bullish trades were stopped out. Potential new bullish trades usually did not execute based upon lower opens but at the same time short trades were executed.
02/01/18 - Stock Market Comments
The hard selling on Tuesday is still having a residue of fact on investor sentiment, taking the assumed and consistent bullish sentiment out of the market trend. However, as demonstrated in yesterday's and today's trading, that although the buying has been stymied, there is no great selling pressure.