It is the summertime! The only trending index has been the Dow, which formed a long legged Doji yesterday, creating the prospects of some profit-taking. Today’s lower trading in the Dow is currently forming a Doji right on the T-line. This implies profit-taking versus a full-scale reversal of the markets. The NASDAQ and the S&P 500 had been trading relatively sideways for the past three weeks. Today’s lower trading provides the implication that the slow downward drift is still in progress, making a sideways move until the 50 day moving average catches up a likely scenario. Continue to have both long and short positions in the portfolio.
August 9th Daily Market Comments
It is the summertime! The only trending index has been the Dow, which formed a long legged Doji yesterday, creating the prospects of some profit-taking. Today’s lower trading in the Dow is currently forming a Doji right on the T-line. This implies profit-taking versus a full-scale reversal of the markets. The NASDAQ and the S&P 500 had been trading relatively sideways for the past three weeks. Today’s lower trading provides the implication that the slow downward drift is still in progress, making a sideways move until the 50 day moving average catches up a likely scenario. Continue to have both long and short positions in the portfolio.