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Daily Market Comments - May 2018

05/23/18 - Stock Market Comments

After opening lower Today, the market indexes are currently trading above where they opened. This reveals that although the markets are lower, there is still buying occurring at these levels. The T-line remains a relevant factor. The indexes are hovering at the T-line level. It will be important to see whether the T-line holds as a support today. Stay predominantly long but a close below the T-line at the end of the day would warrant taking some long positions out of the portfolio.

05/22/18 - Stock Market Comments

Today's lack of direction in the markets are not changing the J-hook pattern potential in the indexes. Although the Dow is trading lower, the transportation index is trading higher, indicating no major change of investor sentiment. The lack of any change of investor sentiment allows for strong candlestick chart patterns to continue to work.

05/21/18 - Stock Market Comments

The gap up strength in today's trading illustrated the T-line was going to act as a support level. It also shows a strong bullish sentiment starting the third wave of a J-hook pattern. This would imply the next bullish leg is in progress. As long as the days trading remains above Today's open, the probabilities of more upside remain extremely strong. Any short positions in the portfolio should be showing compelling weakness.

05/18/18 - Stock Market Comments

Today's lethargic trading is making most individual stock prices trading lethargicly. Although the markets are trading indecisively, they are still using the T-line as an ultimate support level. Today will probably be a very boring day to trade/watch. Continue to hold long positions that are not showing any relevant selling/candlestick sell signals.

05/17/18 - Stock Market Comments

The T-line continues to act as a support level. The Dow and S&P 500 have already used it once again Today as a support before starting to head higher. The J-hook pattern is becoming evident in the major indexes. Continue to stay long as long as these market indexes remain above the T-line. The oil stocks are still producing good profits.

05/16/18 - Stock Market Comments

Although the markets are not trading up with any great resiliency Today, Today's positive trading implies yesterday's pullback to the T-line was merely a pullback. Until there is a confirmed sell signal AND a close below the T-line, it has to be assumed based upon probabilities the uptrend is remaining in progress. Stay predominantly long with specific sectors such as oil and biotech's showing the strongest sector moves.

05/15/18 - Stock Market Comments

Yesterday's potential reversal signals in the market indexes are being confirmed Today. An expected pullback to the T-line has already been experienced in the NASDAQ and S&P 500. Both indexes have touched the T-line and showing support. Numerous stocks sold off on today's early trading but are now coming back up. This would imply today as a profit-taking day, not necessarily a market reversal. Continue to watch to see what the indexes do at the T-line.

05/11/18 - Stock Market Comments

Bullish sentiment continues to move the market is expected after a wedge breakout. Continue to stay long as long as there is no dramatic candlestick sell signal in the indexes. The bullish uptrend should remain in progress as long as the trading remains above the T-line as well as the 3T-line. Stay predominantly long.

05/10/18 - Stock Market Comments

Today's positive trading is adding confirmation that the breakout of the wedge formation is creating a new bullish trend. Bullish candlestick charts are working extremely well. Any short positions at this time should still have compelling reasons to stay short. Numerous J-hook patterns are working very strong. Stay predominantly long.

05/09/18 - Stock Market Comments

The markets continue to trade in decisively but the NASDAQ is trading in decisively above the resistance levels, the Dow is trading in decisively just below the resistance levels and the S&P 500 is trading in decisively right at the 50 day moving average. This makes the market conditions good for being in strong bullish chart patterns such as the oil stocks. As long as there is no evidence of a change of investor sentiment, each individual stock chart becomes the main criteria. Stay predominantly long, especially if the Dow can close above the 50 day moving average.

05/08/18 - Stock Market Comments

The NASDAQ, although backing and filling a little today, is staying above the T-line as well as the upper wedge resistance level. The Dow and S&P 500 are trading in decisively today just below the 50 day moving average and the upper wedge resistance level. This implies no major change of the trend, basically sideways with the NASDAQ creating some bullish bias. The candlestick signals do not illustrate any major change of investor sentiment. Stay predominantly long.

05/07/18 - Stock Market Comments

The strong reversal signals of Friday are now being confirmed with strength Today. The Dow has gone from supporting on the 200 day moving average and is currently nudging the 50 day moving average, the top of the wedge formation. The NASDAQ gapped up through the 50 day moving average/downward resistance level. Bullish confirmation is also illustrated in the big stocks, AAPL, NFLX, AMZN, NVDA. The wedge consolidation may be over based upon the breakout of the NASDAQ today.

 

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