November 17th Daily Market Comments

The expected consolidation today is in progress after the big bullish day yesterday. However, today’s lower trading is still making the T-line an important factor. The Dow is currently trading slightly back below the T-line, the S&P 500 is currently trading right on the T-line while the NASDAQ is significantly above the T-line. This puts the market direction still in an indecisive mode. Both long and short positions continue to act well in this market. The regional airline stocks are working extremely well.

November 16th Daily Market Comments

The NASDAQ has a best friend gap up above the T-line so far today. The Dow and S&P 500 have Bullish kicker signals. The T-line is still a major trend indicator on numerous stock charts, there Bullish moves continuing as they stay above the T-line (T-Line Trading). The indecisiveness/whipsaw action of the market indexes is going to be directly attributed to how the tax bill vote finishes out. The prognosis remains the same, have both long and short positions in the portfolio provided they are not showing reversal signals and a close above/below the T-line.

Trending Stocks: AMWD, DQ, IBP, NKTR

American Woodmark Corp. (AMWD)

Chart for AMWD

Over the next 13 weeks, American Woodmark Corp. has on average historically risen by 8.7% based on the past 31 years of stock performance.

American Woodmark Corp. has risen higher by an average 8.7% in 19 of those 31 years over the subsequent 13 week period,corresponding to a historical probability of 61%

The holding period that leads to the greatest annualized return for American Woodmark Corp., based on historical prices, is 19 weeks. Should American Woodmark Corp. stock move in the future similarly to its average historical movement over this duration, an annualized return of 42% could result.

Daqo New Energy Corp. (DQ)

Chart for DQ

Over the next 13 weeks, Daqo New Energy Corp. has on average historically risen by 23.2% based on the past 7 years of stock performance.

Daqo New Energy Corp. has risen higher by an average 23.2% in 3 of those 7 years over the subsequent 13 week period,corresponding to a historical probability of 42%

The holding period that leads to the greatest annualized return for Daqo New Energy Corp., based on historical prices, is 51 weeks. Should Daqo New Energy Corp. stock move in the future similarly to its average historical movement over this duration, an annualized return of 117% could result.

INSTALLED BLDNG PRODUCT (IBP)

Chart for IBP

Over the next 13 weeks, INSTALLED BLDNG PRODUCT has on average historically risen by 9.7% based on the past 3 years of stock performance.

INSTALLED BLDNG PRODUCT has risen higher by an average 9.7% in 2 of those 3 years over the subsequent 13 week period,corresponding to a historical probability of 66%

The holding period that leads to the greatest annualized return for INSTALLED BLDNG PRODUCT, based on historical prices, is 2 weeks. Should INSTALLED BLDNG PRODUCT stock move in the future similarly to its average historical movement over this duration, an annualized return of 361% could result.

Nektar Therapeutics (NKTR)

Chart for NKTR

Over the next 13 weeks, Nektar Therapeutics has on average historically risen by 14.9% based on the past 23 years of stock performance.

Nektar Therapeutics has risen higher by an average 14.9% in 16 of those 23 years over the subsequent 13 week period,corresponding to a historical probability of 69%

The holding period that leads to the greatest annualized return for Nektar Therapeutics, based on historical prices, is 1 week. Should Nektar Therapeutics stock move in the future similarly to its average historical movement over this duration, an annualized return of 121% could result.

November 15th Daily Market Comments

Each individual daily formations allows for much more accurate assessment of the overall market trend nature. Although the market indexes were not showing any convincing selling over the past few trading days, even given the prospects of the Bulls still tried to maintain control, the most compelling factor was that the indexes, although trading in decisively were trading below the T-line. But the most important analytical factor was the fact that the markets were still in an indecisive stage. This left the probabilities indicating better prospects of more downside until the indexes could close backup above the T-line. The current market conditions, even in today’s trading, shows that the Bulls have brought the trading backup above the open, forming a hammer type signal, but the overall assessment is still witnessing the markets in a slow indecisive pullback.
Fortunately, numerous candlestick bullish charts are still producing profits to the long side but the short positions in the portfolio are doing well.

November 14th Daily Market Comments

Today’s lower trading is now creating strong bearish implications. The Dow has not been able to get back up above the T-line over the past few days of trading. Today’s gap down and lower trading is further confirming the downward trajectory of the stochastics. The NASDAQ and S&P 500 were showing prospects of just barely staying above the T-line but Today’s strong selling is demonstrating the acceleration of the bearish participation of the overall market. Short positions are obviously working well. Any long positions being maintained should have compelling evidence, no sell signals or trading below the T-line, to stay in those positions. Expect more downside in the markets if there is no bullish signal formations created going into the close.

November 13th Daily Market Comments

The market pullback is showing a consistent factor. The markets opened lower but trade above where they opened by the end of the day. This is currently demonstrating the sellers have not taken control of the trend. However, the indexes are trading below the T-line, giving more probabilities that investor sentiment is more inclined to be on the bearish side until there is a close backup above the T-line. The tentative nature of the current market conditions still require holding long positions that are not demonstrating any sell signals and having short positions also in the portfolio.

November 10th Daily Market Comments

The market indexes are trading lower but not with any great decisiveness. However, they are trading lower after yesterday’s Doji type days. Make sure you have some additional short positions in the portfolio. Any long positions now require the lack of any selling to maintain those positions until there is more decisiveness in the markets one way or the other. Be ready to take profits on the long side upon further weakness in the markets Today.

November 9th Daily Market Comments

The markets are trading lower, the past week of Doji’s in the Dow provided the suspicion of some profit-taking about ready to occur. However, currently the lower trading is showing Doji type day pullbacks, meaning not very convincing selling. The NASDAQ, trading lower, but above the open. This indicates the currently there is no dramatic selling in the markets, merely profit-taking. Use each individual chart as your primary analysis. Watch where the market indexes close today. Currently the T-line is still acting as a relevant support. Oil stocks are rebounding as crude oil prices are also moving up after a double Doji signal.

November 8th Daily Market Comments

The potential reversal signals of yesterday, Doji’s and bearish Harami’s, in the indexes provided the prospect of some profit-taking/consolidation. Today’s weakness in the markets can be construed as profit-taking versus a market reversal based upon the indecisive nature of Today’s trading. This would make the prospects of the indexes coming back to test the T-line a likely scenario. The transportation index is producing strong selling after failing to hold the 50 day moving average yesterday. Take profits on sell signals. The oil stocks traded in decisively yesterday and were closed out on lower opens today. Existing short positions should be maintained provided there are no indications of bullish reversal signals. Expect more consolidation in the markets for the next day or two.

November 7th Daily Market Comments

Today’s trading is not showing any change of trend/investor sentiment. However there is an interesting formation and the transportation index. It is currently forming and inverted hammer signal right on the 50 day moving average. It is still early in the day but watch this index. A bounce up off the 50 day moving average creating wave three would be a strong indication that the uptrend in all the market indexes will remain in progress. The prognosis remains the same, stay predominantly long and have a few short positions in the portfolio.