The profit-taking is now obviously more pronounced. The previous uptrend in the NASDAQ had been offsetting the indecisive selling in the Dow. Today’s trading has both the Dow and the NASDAQ trading lower. Currently the NASDAQ is trading right on the T-line. It will be important to see whether the T-line holds. If the markets close near the lower end of their trading range today, especially the Dow, expect more pullback. The transportation index is currently pulled back to the 200 day moving average. That index needs to support of the 200 to keep the rest of the markets from heading lower. Any long positions that are showing trading below the T-line should be closed out at the end of the day. Continue to have short positions in the portfolio. Gold stocks continue to act strong.
August 2nd Daily Market Comments
The profit-taking is now obviously more pronounced. The previous uptrend in the NASDAQ had been offsetting the indecisive selling in the Dow. Today’s trading has both the Dow and the NASDAQ trading lower. Currently the NASDAQ is trading right on the T-line. It will be important to see whether the T-line holds. If the markets close near the lower end of their trading range today, especially the Dow, expect more pullback. The transportation index is currently pulled back to the 200 day moving average. That index needs to support of the 200 to keep the rest of the markets from heading lower. Any long positions that are showing trading below the T-line should be closed out at the end of the day. Continue to have short positions in the portfolio. Gold stocks continue to act strong.