August 17th Daily Market Comments

Yesterday afternoon selling brought the indexes back down to where they were forming Doji’s. Today’s lower open, with a close below the T-line in the indexes makes the prospects of the sideways movement of the market more likely. This would not be unusual during the August vacation time frame. These market conditions still make having both long and short positions in the portfolio.

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August 16th Daily Market Comments

Today’s positive trading in the indexes are creating trend kicker signals. This produces a high probability outcome of more upside provided the markets close positive today. It is also producing J-hook patterns. This is consistent with the characteristic of this uptrend, steady up moves followed by profit-taking followed by steady uptrend. There are still numerous short positions that are working well in this market. Continue to have both long and short positions in the portfolio.

 

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August 15th Daily Market Comments

The markets are not showing any dynamic strength today but they are still trading above the T-line. The Dow has actually used the T-line as support today at its low end of trading. As long as the indexes remain above the T-line, the uptrend is in progress and probably what the same characteristics as the uptrend prior to the selloff late last week, a slow steady uptrend. The trading environment remains the same. Have both long and short positions in the portfolio.

 

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August 14th Daily Market Comments

Today’s positive trading is confirming the bullish Harami’s of Friday, which indicated the selling may have stopped. If the market indexes close of the top end of their trading range today, they will be confirming the bullish Harami’s and closing backup above the T-line, creating another J-hook pattern probability. Be ready to cover short positions if the market closes on a strong bullish finish today.

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August 11th Daily Market Comments

The initial bounce after a big selloff day is the recouping of the panic selling better occurs near the end of the day. Yesterday’s hard selling showed confirmation the Bears were in control with the indexes doing bearish trend kicker’s and closing below the T-line. Today’s positive trading, unless it does a severe bullish move back up toward the open of yesterday’s candles, should be viewed merely as a bounce. The downtrend should be anticipated as long as the indexes do not show strong reversal signals and a close backup above the T-line. Be careful of any long positions and be oriented toward the short side.

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August 10th Daily Market Comments

Today’s gap down open is creating bearish trend kicker signals. If the markets close near the lower end of their trading range today, a bearish trend kicker implies a strong force to the downside. Expect more downside. The areas to watch are the support levels such as the 50 day moving average for the NASDAQ and the S&P 500. The Dow has gapped down below the T line today. This all implies further downside. The short positions should be a stronger bias.

 

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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.

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August 4th Daily Market Comments

Although the markets have opened higher today, they appear to be starting to drift lower. This remains consistent with the lack of bullish sentiment in the NASDAQ and the S&P 500 over the past week or two of trading. Although the Dow has been hitting record highs, it is doing so with very indecisive trading days, Doji type days. These market conditions still make having both long and short positions in the portfolio the prudent strategy. Expect more sideways trading in the markets for the next few trading days. This is why we recommend Trend Analysis.

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August 3rd Daily Market Comments

Yesterday’s Bullish Enthusiasm from AAPL helped stabilize the markets, the Dow anyways, but it somewhat masked the weakness that was being demonstrated in the NASDAQ and S&P 500.  Although the Dow is trading higher today, the NASDAQ and S&P 500 continue to demonstrate bearish candlestick signals. Currently there is no dramatic selling pressure, merely indication that the bullish sentiment has dramatically diminished. This market environment warrants having both long and short positions in the portfolio.

 

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August 2nd Daily Market Comments

Observe the obvious! Without the strength of Apple Today, the Dow would be showing weakness. The NASDAQ and S&P 500, although opening higher, are now trading lower. The NASDAQ is in the process of forming its third bearish engulfing signal over the past five trading days. This illustrates the lack of any bullish sentiment, the sellers are starting to take control. Any long positions showing weakness should be closed. Short positions should be added to the portfolio. This is why we recommend Trend Analysis.

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