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.

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.