The NASDAQ is trading positive, the Dow is trading slightly negative, the S&P 500 is trading flat. Demonstrating there is no change of investor sentiment in this current uptrend. Do not expect anything of any great magnitude in today’s trading, probably most of the major traders will be taken off for the holiday by early afternoon. Friday will be a half day. It is not usually worth even paying attention to the market on a Friday/half day after Thanksgiving. However, there is an interesting trading dynamic on that day. Because there are so few people around, any excessive bullish trading in a particular stock will usually get the attention of everybody trading that day, providing an opportunity to trade some big profits in one or two specific stocks. Continue to stay predominantly long, but there are still some good short positions in progress.
Although the markets remain decisively indecisive Tuesday, there has not been any change of investor sentiment. The major indexes are showing very little movement but the transportation index is still relatively positive. As long as this market trades above the T-line, the analysis remains that this market is continuing its uptrend. Continue to maintain long positions and short positions that are confirming their chart patterns.
After two weeks of indecisive trading in the markets, it was looking for a direction. The past couple days of trading indicated a slow curve set up to the upside. One consistent factor that remained in the uptrend was the fact that the indexes could not close below the T-line. Friday’s bullish action in the markets indicate the direction this market should move after two weeks of Doji type trading days. A strong uptrend should be in progress provided Friday’s trading maintains its strength going into the close.
Tuesday’s bullish trading The indexes above the T-line and gave the indication a new wave could be starting. However, Tuesday’s weakness in the markets puts the indexes back into the sideways mode, indecisive trend. The T-line remains a very important factor. Unless the market shows strength by the end of the day, confirming Tuesday’s slow curve breakout potential, trade positions should still be watched with a defensive nature.
The markets continue to consolidate. The S&P 500 has produced five Doji’s in a row. It is still trading above the T-line but a series of Doji’s allows for accurate analysis. Watch for a strong price move from these levels, whether bullish or bearish, which will demonstrate which direction the market will go with relatively strong movement. Long positions should still be maintained but with very close stop loss positioning.
The markets continue its indecisive trading on a daily basis but there is no evidence of any change of investor sentiment. The uptrend remains in progress however the indecisive trading days still require diligence as far as watching for something that might start a selloff. Continue to stay predominantly long but be very quick to take profits if selling starts coming into these markets.
As expected after Tuesday’s Doji in the Dow, some profit-taking has occurred. It can be analyzed more as profit-taking versus any trend reversal just yet based upon the fact that the NASDAQ opened lower and is trading above where it opened. This illustrates the Bulls are still participating even though the NASDAQ index is still down slightly. The graphics of candlesticks provides much more accurate evaluations of what is occurring.