Archives for June 2017

The ability to pinpoint which sectors are acting the best, even when the market is not showing any major trend, is amplified by the illustration of the chart movements in specific sectors. LABU clearly indicated the biotech sector was acting well, making stocks in that sector a viable strong trades. It also allowed for a good trade in LABU  itself, either stock or options. The graphics of candlestick charts allow for pinpointing which areas of the markets are acting the best. This is why we recommend Trend Analysis.

The major indexes are showing some profit-taking from Yesterday’s big price move but no change of investor sentiment. The transportation index is selling off hard. This may be a healthy indication that specific sectors are getting hit with profit-taking but the overall market remains in a study uptrend. The profit-taking along the way implies there is no exuberance coming into this market. Stay predominantly long but use the candlestick charts to illustrate which stocks/sectors are acting the strongest. This is why we recommend Trend Analysis.

Today’s positive trading has produced gap ups in the indexes. The Dow, which is been moving steadily up, has a gap up in the overbought condition. This would normally create an alert for some potential profit-taking. However, the gap ups in the NASDAQ, the S&P 500, and the transportation index provide strong Bullish Signals after some consolidation. Today will be a very bullish indication provided the indexes close at the higher end of their trading range. Currently, it has to be assumed the uptrend remains in progress as long as the indexes trade above the T-line.

The markets remain in an indecisive consolidation stage, the NASDAQ appears to be drifting lower toward the 50 Day Moving Average. The S&P 500 is moving sideways and cannot get back up above the T-line. The Dow and S&P 500 are trading above the T-line but with indecisive trading. Hopefully this is not the summer doldrums. There are good trades continuing with the T-line be in the ultimate support levels. These market conditions warrant being very selective as far as long and short positions. This is the normal environment when the markets are not showing any major trend.

The big break down in the NASDAQ last week has been confirmed with the failure of a close backup above the T-line. Yesterday’s bearish engulfing signal at the T-line illustrated the lack of Bullish pressure. Today’s Gap down in the NASDAQ indicates the 50 Day Moving Average will be a likely target. The transportation index did a bearish engulfing signal yesterday followed by Today’s gap down which is trading below the T-line. The S&P 500 formed a Hanging Man signal Yesterday followed by a Gap down below the T-line Today. Although the Dow is trading lower, it is still trading above the T-line. However the overall analysis of all the market indexes illustrate sellers starting to take control. Be prepared to take profits if the markets do not show any strength Today.

The markets are trading slightly lower Today. The main news attention is upon the shooting in Washington. The financial markets appear to be waiting for the results of interest rates this afternoon. On indecisive days like this, the candlestick reversal signals and the T-line becomes much more relevant. Currently there is no dramatic change of investor sentiment, the slow uptrend remains in progress. This is why we recommend Trend Analysis.