September 23 Daily Market Comments

Remember the likely price movements. In a down trend, it is not unusual to see buying in the morning and selling in the afternoon. The opposite is true during an uptrend. After a big down day like we saw yesterday, it is not unusual to see short covering/a bounce. If you are buying based upon a candlestick buy signal or shorting based upon a candlestick sell signal, the trend will continue until you see opposite signal. Do not be too hasty establishing or covering positions until you see there is a definite reversal signal.

September 22 Daily Market Comments

The Dow formed a shooting star signal on Friday. The S&P 500 formed a Doji and the NASDAQ formed a dark cloud. Monday’s selling confirms those sell signals, implying a selloff back to the nearest support levels, the T-line for the Dow and the 50 day moving average for the NASDAQ. Expect some more downside over the next few days.