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Daily Market Comments - October 2018

10/19/18 - Stock Market Comments

Be careful, the expected bounce today is providing a lot of positive trading in stocks but many stocks are not moving much from where they opened or are trading below where they opened albeit they are still trading positive. Short positions that have been showing bullish signals and are confirming today should be covered, but expect a couple days of choppiness in the markets before any major trend, either bullish or bearish will continue from here.

10/18/18 - Stock Market Comments

The T-line remains a relevant factor when analyzing the indexes. The indecisive trading yesterday, although buying brought the indexes backup toward the top of their trading range, the T-line still needed to be addressed. Today's lower trading continues to make the T-line a resistance level. Investor sentiment still needs time to recover from the hard selling of last week. Indecision still remains.

10/17/18 - Stock Market Comments

As anticipated, after the large bullish move in the markets yesterday, profit-taking is in progress. Is Today's trading profit-taking or a failure of the uptrend to start? A very easy trading strategy can be put into place. Today, watch the 10 minute chart. If there becomes an area where the movement of the markets start showing support on the 10 minute chart, aggressive buyers can start stepping in with the anticipation that yesterday's bullish candlestick signals are still in effect.

10/16/18 - Stock Market Comments

Today's positive trading is selling gap ups in the S&P 500 and the NASDAQ. It is also confirming an inverted hammer signal in the Dow. Provided the trading stays strongly positive today, this will provide more healing of investor sentiment, adding to the prospects that this is putting the markets in a basing area. Long positions can be added but with the caveat that the markets need to close very bullish today.

10/15/18 - Stock Market Comments

This basing action allows for identifying which individual stocks are trading with a new direction based upon identifying very strong reversal signals. Knowing what the top ranked candlestick signals illustrate allows investors to take advantage of price movements well before the rest of the market enters those trades i.e. AMCX and DERM bullish flutter kicker, ACOR McMuffin,TLRY wedge breakout.

10/12/18 - Stock Market Comments

Be careful, the expected bounce today is providing a lot of positive trading in stocks but many stocks are not moving much from where they opened or are trading below where they opened albeit they are still trading positive. Short positions that have been showing bullish signals and are confirming today should be covered, but expect a couple days of choppiness in the markets before any major trend, either bullish or bearish will continue from here.

10/11/18 - Stock Market Comments

Huge price moves obviously produce big gains. Reactions to those big price moves also provide opportunities to make some big gains. Had the markets opened dramatically lower Today, gapping down, the 10 minute candlestick charts would've been instrumental for recognizing when the buying started come back in.

10/10/18 - Stock Market Comments

Where is the market going to go? As a candlestick investor, you do not have to know the answer. You merely have to identify which direction it is currently going and be able to analyze the prospects of reversal areas/support levels. Then it is relatively easy to assess what is happening at those support levels based upon the type of candlestick formation that occurs at those levels.

10/09/18 - Stock Market Comments

Yesterday, the low of the long legged Doji that developed in the NASDAQ supported at approximately the same level that the markets hit their lows in late July. Today's positive trading in the NASDAQ is creating the potential of a bullish left/right combo. However, it needs to trade near the high end of today's trading range to provide better confirmation the Bulls are taking control.

10/08/18 - Stock Market Comments

Keep in mind, in a downtrend it is not unusual to see some buying early in the day followed by selling later in the day. An uptrend, the selling is early in the day, followed by buying later in the day. Today's early buying should not be viewed as a reversal in the downtrend.

10/04/18 - Stock Market Comments

The Doji that formed in the Dow yesterday created the suspicion that profit-taking/consolidation was likely to occur Today. Currently the Dow has pulled back to the T-line, not yet confirming any major reversal in the markets. Also, the NASDAQ has sold off hard, creating the potential of a bearish best friend signal if the 50 day moving average does not hold in the NASDAQ. The T-line remains a critical indicator.

10/03/18 - Stock Market Comments

The J-hook pattern is evident in the Dow and S&P 500. The NASDAQ is not showing the same resiliency, which is good. This indicates that the markets are not in an exuberance state. There is plenty of sector rotation. There is good profitable trades both on the bullish side as well as the bearish side. Oil stocks continue to act strong, biotech's continue to act weak. The T-line still acts as a very vital trend indicator.

10/02/18 - Stock Market Comments

The market characteristics remain the same as the past few weeks, a slow uptrend but without any evidence of exuberance. Today's trading shows the indexes trading mildly higher, except for the transportation index, which appears to be pulling back to test the 50 day moving average.

10/01/18 - Stock Market Comments

The confidence to stay predominantly long in this market has been the use of a simple trend factor, the T-line. The indexes, especially the NASDAQ, have been indicating the lack of any selling pressure in the overall market. The Canadian trade news merely adds additional bullish stimulus to what had already been a bullish trend in the market.

 

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