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August 29 Daily Market Comments

The Dow trading down and the NASDAQ trading up indicates there is no change of investor sentiment, the current trend remains in progress. The analysis remains the same, this is a sector specific market. Continue to hold long positions but don't let backing and filling scare you out of positions. Be sure to use reversal signals as your decision-making process, not merely selling days in uptrends. … [Read More...]

August 28 Daily Market Comments

A healthy market includes profit-taking days. The question was asked this morning whether the lower open in the Dow was an indication of a major change of investor sentiment. The first analysis still requires assessing which direction the market is moving. An uptrending market requires a strong reversal signal. The magnitude of the premarket futures to the downside today was not an indication that a huge change had occurred. On mornings when the market is pulling back, watch the 10 min. chart. If it eventually stabilizes, the prognosis leans toward merely profit-taking during an uptrend. Obviously, where the market closes today will be an important indication of whether there is beginning to be a chink in the armor. The T-line will be acting as an important technical level. … [Read More...]

August 27 Daily Market Comments

The uptrend remains in progress. It is not unusual to see profit-taking occur early in the day during an uptrend, followed by buying later in the day. How can it be assessed that the early trading is merely profit-taking versus a true reversal? If there is a change of investor sentiment during an extended uptrend, the premarket futures will show a definite change before the market opens. Stay predominantly long and be nimble. … [Read More...]

August 26 Daily Market Comments

Although the indexes are in the overbought condition, there has not yet been any evidence of exuberance. The slow steady uptrend of the Dow implies that it wants to come back up into the trajectory of the original trend. Continue to stay long but with the markets in the overbought condition, be diligent as far as watching for profit-taking. … [Read More...]

August 22 Daily Market Comments

Expect a consolidation day on a Friday in the summer after a strong move to the upside this week. The market character remains the same, very stock/sector specific. … [Read More...]

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