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Daily Market Comments - April 2018

04/30/18 - Stock Market Comments

Today's positive trading demonstrates the lack of selling pressure but still not enough bullish pressure to breach the upside of the wedge formation. The sideways mode of the markets continue to accentuate the analysis of each individual stock chart versus depending on the market trend to assist in price moves. Both long and short positions should remain in the portfolio. Currently the market indexes are trading above the T-line but still below the downward resistance level.

04/27/18 - Stock Market Comments

The T-line continues to act as a viable factor. The Dow could not get up through the T-line yesterday and is selling off. The NASDAQ and the S&P 500 closed above the T-line yesterday but Today those indexes have pulled back to test the T-line as support. This demonstrates the lack of any bullish follow-through of yesterday but also illustrates the lack of any major selling pressure. The sideways mode of the market is still in progress as illustrated by the wedge formation. Continue to stay both long and short.

04/26/18 - Stock Market Comments

Yesterday's Doji in the indexes gave a better view of whether the market was still in a sideways trend or whether the 200 day moving average was going to be the next target, the bottom of the trend channel. Today's gap up, especially in the NASDAQ, illustrates the lack of any overpowering selling pressure. Although Today's positive trading reveals the downtrend is now more in a sideways trend, the sideways trend remains the prominent direction until there is a breakout through the upper resistance level. Continue to have both long and short positions in the portfolio provided they are not violating the T-line.

04/25/18 - Stock Market Comments

The market indexes currently trading relatively flat after trading lower earlier indicates there is still some potential bullishness that is offsetting the selling of the past five trading days. This does not mean an uptrend is about to start, it merely implies that the sideways motion of the market is probably still in progress. Investor sentiment is still on the bearish bias, but not with the aggressiveness of yesterday. Additionally, the transportation index is trading up strong today, not implying a reversal but more of a stabilization in the markets. These conditions continue to warrant having both long and short positions in the portfolio. This is why we recommend Trend Analysis.

04/24/18 - Stock Market Comments

Nothing has changed the nature of the market trend, the slow lower drifting is the expectation of the sideways moving market indexes. These market conditions usually do not warrant going after anything aggressively but it allows for the evaluation of chart pattern setups that can be anticipated to be good trades if/when the market turns back up.

04/23/18 - Stock Market Comments

Wildly unexciting! Although the market indexes are trading slightly positive, they are still trading at the exact same level of where they opened today. The indexes close below the 50 day moving average as well as the T-line on Friday, creating the prospects of a sideways moving market. Today's lack of conviction is helping to confirm that analysis. Anticipate a boring trading day.

04/20/18 - Stock Market Comments

As somewhat anticipated, the markets are continuing to consolidate back to the support levels of the 50 day moving average and the T-line. The uptrend remains in progress as long as the indexes stay above the T-line. These are type of days where the uptrend remains in progress but profit-taking is occurring, making the analysis of each individual stock chart more important. Continue to stay predominantly long.

04/19/18 - Stock Market Comments

Why is today looking like a consolidation day? Many uptrending stocks are pulling back but they are not doing candlestick reversal signals. That indicates there is no major change of investor sentiment in those trends, merely profit-taking. It would not be unexpected to see the indexes come back and test the 50 day moving average to see if it is going to act as support.

04/18/18 - Stock Market Comments

The market indexes consolidated early today but is now trading above where they opened. This reveals the lack of any selling pressure as of yet in this market. The trend channel that has developed since late January implies the uptrend will remain in progress. Continue to stay predominantly long with any short positions showing compelling reasons to stay short. This is why we recommend Trend Analysis.

04/17/18 - Stock Market Comments

Does a gap up in a stock like NFLX warrant a rally in the whole market? Definitely not, but think of the environment of investor sentiment. Even as an investor that may not be investing in Netflix, seeing that everything is working great in that stock, a stock that is in the investment limelight, and that it is showing good bullish news as well has strong price movement, does that influence confidence or doubt in what all other stocks might be doing?

04/16/18 - Stock Market Comments

Today's positive trading does not take the markets out of a indecisive nature, the major indexes continuing to trade below the 50 day moving average but above the T-line. The most compelling chart has formed in the transportation index, a bullish Doji sandwich breakout through the 50 day moving average. This adds confirmation to the analysis of the markets are in a slow upward basing mode but not yet with any dramatic bullish force coming back into the market.

04/13/18 - Stock Market Comments

The waffling nature of the market still persist but with one consistency, the indexes continue to now to trade above the T-line. The force of the market is not necessarily anything rampant, as seen in the Dow today where it hit the 50 day moving average and has backed off. The other indexes have the same potential resistance levels to contend with. Continue to hold both long and short positions with a bias toward the long side.

04/12/18 - Stock Market Comments

Although the markets have not shown any decisive trading over the past few trading days, one underlying factor can be observed. The markets are currently trading above the T-line.

04/02/18 - Stock Market Comments

The resistance of the T-line in Thursdays trading showed the indexes still had some doubt as to a bullish reversal. Today's lower trading illustrates the lack of bullish confirmation, putting the markets prospects back into a sideways moving wedge formation. The T-line remains an important indicator.

 

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