A good bullish day? Be careful, today the indexes gapped up in the overbought condition. It would not be unusual to see profit-taking start coming in before the end of the day, before a long weekend. And the prospect of the indexes, after coming up through the 50 day moving average resistance level, pulling back to see if the resistance level is now going to act as support. Stay predominantly long. Any selling in the market would make for more diligent evaluation of long positions, making sure reversal signals were not occurring. … [Read More...]
The Dow and the S&P 500 are continuing their slow uptrend toward the 50 day moving average. The strongest indicator is the NASDAQ, after going through the 50 day moving average yesterday on a small J-hook pattern, it is continuing to show buying strength today. Although the indexes are in the overbought condition, there are no signs of any exuberance to the upside nor any signs of excessive selling pressure. Anticipate more slow upside but have your safety stop's in place. … [Read More...]
The Dow is moving sideways but indicating there is still bullish sentiment in the market. The NASDAQ is more informative with it currently nudging the 50 day moving average, forming a potential J-hook pattern. It will be important to see whether the NASDAQ can maintain its strength near the 50 day moving average or whether they start selling off from that level. Gold appears to be trending sideways, crude oil trying to get back up through the 50 day moving average. Although the strength of today's buying is not resilient, it indicates there is no signs yet of any selling pressure. Stay long especially in the sectors that are continuing to show good strength, i.e. cannabis stocks. … [Read More...]
The T-line remains a relevant factor. The indexes, one trading on their lows of the day, appeared to be using the T-line area as support. This is more of an indication of profit-taking versus any full-scale reversal, as long as the indexes remain above the T-line. Currently, many stocks, although trading lower are trading indecisively, as Doji's. This illustrates the lack of selling pressure, merely profit-taking. Continue to stay with the strong bullish charts. … [Read More...]
January 18th Daily Market Comments
A good bullish day? Be careful, today the indexes gapped up in the overbought condition. It would not be unusual to see profit-taking start coming in before the end of the day, before a long weekend. And the prospect of the indexes, after coming up through the 50 day moving average resistance level, pulling back to see if the resistance level is now going to act as support. Stay predominantly long. Any selling in the market would make for more diligent evaluation of long positions, making sure reversal signals were not occurring. … [Read More...]