Friday's indecisive trading, a Doji day, in the indexes made the likelihood of profit-taking Today that much greater. The Dow actually did a Doji after gapping up slightly in the overbought condition and at an all-time high. Today's trading in the transportation index shows a definite change of investor sentiment after the Doji/shooting star signal at the T-line on Friday followed by a much lower trading Today. The prognosis remains the same, candlestick patterns, such as the Frypan bottom pattern will likely continue in spite of the market selloff, i.e. … [Read More...]
Although the Dow is trading at all-time highs, the NASDAQ is trading lower. This does not diminish the strength of the market, it actually reveals that exuberance has not come into the market trend. This makes for a much more solid/sustained trend movement. These market conditions continue to produce good profits on the long side as well as some good profits on the short side. Analyze each individual position on its own merits but with knowing the overall bias of the market is still in an upward direction.
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Although the Dow is still trading higher, the strongest bullish indication today was the gap up in the NASDAQ after yesterday's Doji day right at the T-line. The analysis is very simple, as long as the indexes continue to trade above the T-line, the uptrend remains in progress. The trading strategy remains the same, the bias of the portfolio should be bullish with a few short positions still producing good profits. … [Read More...]
Although the Dow is trading up strong again today, rampant enthusiasm still has not permeated this market. Yesterday's positive trading demonstrated the indexes were going to stay above the T-line, implying the uptrend remains in progress. However, with the Dow trading up 175 points, the transportation index and the S&P 500 trading moderately higher, the NASDAQ is trading lower. This combination demonstrates that bullish and bearish sentiment is evident in specific sectors. The prognosis remains the same, the slow uptrend of the markets continues but still with very selective stocks/sectors. Have both long and short positions in the portfolio with the bias toward the long side. … [Read More...]
Today's positive trading in the indexes are showing strength at the T-line and currently showing the lack of confirmation in yesterday's evening star signals. This is good for the bullish uptrend PROVIDED selling does not bring the markets back down through Today's open. If the markets close with good bullish candles Today, staying above the T-line, additional bullish confirmation will be required to confirm the uptrend is continuing, albeit very slowly. A lower open in tomorrow's trading would indicate sideways/wedge formations forming in the indexes, obviously not making for very compelling trend movement. Continue to have both long and short positions in the portfolio.
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September 24th Daily Market Comments
Friday's indecisive trading, a Doji day, in the indexes made the likelihood of profit-taking Today that much greater. The Dow actually did a Doji after gapping up slightly in the overbought condition and at an all-time high. Today's trading in the transportation index shows a definite change of investor sentiment after the Doji/shooting star signal at the T-line on Friday followed by a much lower trading Today. The prognosis remains the same, candlestick patterns, such as the Frypan bottom pattern will likely continue in spite of the market selloff, i.e. … [Read More...]