December 15th Daily Market Comments

Yesterday the market indexes created potential sell signals, bearish engulfing signals, but they did not close below the T-line. Confirmed selling would have been exhibited had the markets opened lower Today. The strength in Today’s trading, as long as it remains going into the close, reveals the T-line is still a major support factor. The uptrend remains in progress as long as there is not a severe selling day going into the close today. Continue to analyze each individual stock chart on its own merits with the portfolio still oriented toward the long side.

 

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December 14th Daily Market Comments

Nothing has changed the uptrend except for the overall strength of the market might be showing it is getting ready for a rest. Although there is the continuation of polar opposite analysis of the political agenda in Washington, obviously Fox News and CNN have dramatically opposite reporting, the underlying factor is demonstrated by the overall market trend. This is much more important for analyzing results because the buying and selling of the markets are the actual decisions being made versus the political commentary of the media. Investor confidence remains bullish. The expectation of the retail sales for Christmas is another sign of whether the economy is strong or weak. Observe the obvious, when the checkout lines are excessively long, people are spending money.

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December 13th Daily Market Comments

The J-hook pattern in the indexes is still in progress, implying more upside. Especially if the trading continues above the T-line as well as the 3T-line. The continued strength of the market is making the short positions less attractive, stopping out of short positions. The steady uptrend’s of the market are making the high probability/high profit candlestick patterns more viable, i.e. MIDD confirming a bobble breakout. USAT FP breakout. This makes for very easy entry strategies for both stocks and options.

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December 12th Daily Market Comments

The market indexes are trading above the 3T-line, let alone the T-line. The classic pattern in the Dow is in the process of confirming on today’s positive trading. The NASDAQ is trading flat while the S&P 500 and transportation index continue to trade higher. There is no evidence of any profit-taking/selling occurring in this market. Also, there are no signs of exuberant buying. The steady uptrend reveals a much more solid trend based upon profit-taking occurring along the way. The prognosis remains the same. Stay predominantly long but it is prudent to have a few short positions in the portfolio. Specific sectors/stocks are working extremely well. RIOT is currently producing very strong profits. GLYC has gapped up producing a breakout of a Frypan bottom. This market remains extremely profitable as long as you maintain the strong candlestick chart patterns.

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December 11th Daily Market Comments

The underlying nature of the market remains the same. Although Today’s trading is relatively lethargic so far, there is no evidence of the sellers taking control. With the indexes continuing to trade above the T-line, the uptrend remains in progress. A subway bombing in New York City does not create a ripple in investor sentiment. Continue to utilize the chart patterns that are demonstrating the strongest price moves. Numerous J-hook patterns are still in progress.

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December 8th Daily Market Comments

The J-hook pattern is the predominant analysis in both the indexes as well as numerous individual stocks. The positive trading in the indexes today are further confirming that the T-line is still acting as a viable trend support. The NASDAQ gapped up well above the T-line Today, indicating an extremely high probability the uptrend will continue and may continue with some excessive force. Stay predominantly long but be nimble. This market still requires trading specific stocks and sectors.

 

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December 7th Daily Market Comments

Today’s positive trading in the Dow and S&P 500 is making the T-line (T-Line Trading) and obvious relevant factor. The NASDAQ, after a left/right combo yesterday is trading backup right to the T-line. If the markets close near the high end of their trading range today, it has to be evaluated that bullish sentiment is now offsetting the profit-taking/consolidation of the past few trading days. This makes Today’s close very important, indicating whether the T-line is going to show a reversal of the consolidation.

 

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December 6th Daily Market Comments

The weakness in the markets are producing numerous sell signals in individual stock prices. These market conditions are making it clear that there is profit-taking/selling occurring. Analyze each stock chart position. If it is showing sell signals, close out the position. There will be plenty of good buy charts after the market finishes its consolidation. The short positions should be producing good profits during this pullback. Expect more downside as the indexes continue to head down toward support levels.

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December 5th Daily Market Comments

The market indexes are back in an indecisive mode, the Dow closed at the lower end of its trading range yesterday even though it ended up closing positive. This lack of buying is much more visually identifiable based upon the candlestick formations. The current market indecisiveness is illustrated with weakness following through in the Dow today while the NASDAQ is in a bullish bounce after some hard candlestick sell signals of the past few days. Expect some more sideways/lower consolidation for the next few trading days. Any long positions need to have compelling reasons to stay long. Short positions should be experiencing good profitability.

 

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December 4th Daily Market Comments

The results of the tax bill are being seen in the Dow and the transportation index. The S&P 500 opened higher but is currently trading below where it opened, not showing follow-through strength. The NASDAQ opened higher but is currently trading much lower, forming a potential bearish left/right combo. Although the hanging man signal on Friday, formed by bad news reporting, still is a graphic depiction of what was occurring in human nature. These market conditions warrant being prepared to take profits on charts that are showing signs of weakness/sell signals. Stay predominantly long but short positions have been working very well, NVDA, NFLX, AMZN. Analyze each stock chart on its own chart patterns. This is why we recommend Trend Analysis.

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