February 6th Daily Market Comments

Have the markets bottom? That is a hard question to answer based upon the daily chart. However, it can already be assumed that with such a hard selloff over the last few days, there might be some buying stepping in. But how do we know if that is a full-scale bottoming action or merely a bounce? Simple, watch your 10 minute chart. Currently the Dow 10 minute chart is illustrating that any buying occurring so far today has run into resistance at the 10 minute chart T line. Until the 10 minute chart illustrates the Bulls taking control, maintain the short positions.

Trending Stocks: EBAY, QRVO

eBay (EBAY)

Chart for EBAY

Over the next 13 weeks, eBay has on average historically risen by 15.2% based on the past 19 years of stock performance.

eBay has risen higher by an average 15.2% in 13 of those 19 years over the subsequent 13 week period,corresponding to a historical probability of 68%

The holding period that leads to the greatest annualized return for eBay, based on historical prices, is 9 weeks. Should eBay stock move in the future similarly to its average historical movement over this duration, an annualized return of 65% could result.

Qorvo Inc (QRVO)

Chart for QRVO

Over the next 13 weeks, Qorvo Inc has on average historically risen by 7.3% based on the past 3 years of stock performance.

Qorvo Inc has risen higher by an average 7.3% in 2 of those 3 years over the subsequent 13 week period,corresponding to a historical probability of 66%

The holding period that leads to the greatest annualized return for Qorvo Inc, based on historical prices, is 8 weeks. Should Qorvo Inc stock move in the future similarly to its average historical movement over this duration, an annualized return of 95% could result.

February 5th Daily Market Comments

Be careful! Although a couple of the major indexes, after opening much lower, are now trading slightly positive. But this is not creating any candlestick reversal signals. The fact that the stochastics are still heading down causes some suspicion that the market has not yet bottomed out. The 50 day moving average is showing some relevancy for the transportation index but the remaining indexes are merely trading positive from where they opened. A bounce? It will be important to see how the indexes close today. Stay predominantly short until there are definite reversal signals in the indexes.

February 2nd Daily Market Comments

The use of logical stop’s produces a natural reversal in the portfolio positioning. Over the past week, profitable bullish trades were stopped out. Potential new bullish trades usually did not execute based upon lower opens but at the same time short trades were executed. This created a natural change from being predominantly long to being predominantly short in the portfolio. At one time, scanning for new trades was heavily directed toward long positions based upon the market indexes trading above the T-line. Adding a few short positions to the portfolio was viable based upon the markets be in overbought.

February 1st Daily Market Comments

The hard selling on Tuesday is still having a residue of fact on investor sentiment, taking the assumed and consistent bullish sentiment out of the market trend. However, as demonstrated in yesterday’s and today’s trading, that although the buying has been stymied, there is no great selling pressure. This is apparent with the NASDAQ currently trading positive, the S&P 500 trading relatively flat, and the Dow down slightly.

Trending Stocks: MDGL

Madrigal Pharmaceuticals (MDGL)

Chart for MDGL

Over the next 13 weeks, Madrigal Pharmaceuticals has on average historically fallen by 5% based on the past 10 years of stock performance.

Madrigal Pharmaceuticals has fallen lower by an average 5% in 5 of those 10 years over the subsequent 13 week period,corresponding to a historical probability of 50%

The holding period that leads to the greatest annualized return for Madrigal Pharmaceuticals, based on historical prices, is 52 weeks. Should Madrigal Pharmaceuticals stock move in the future similarly to its average historical movement over this duration, an annualized return of 67% could result.

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January 31st Daily Market Comments

The regret Today is merely the fact that some positions were closed out but now trading positive today. There are two important facts to remember. First, the stops should have been placed at price levels that a bullish price trend should not be moving back down through. For the circumstances, that was the correct thing to do. Secondly, with those funds freed up in the account, an investor has a much better analytical strategy available.

Trending Stocks: DPS, MXIM

Dr Pepper (DPS)

Chart for DPS

Over the next 13 weeks, Dr Pepper has on average historically risen by 8.8% based on the past 9 years of stock performance.

Dr Pepper has risen higher by an average 8.8% in 8 of those 9 years over the subsequent 13 week period,corresponding to a historical probability of 88%

The holding period that leads to the greatest annualized return for Dr Pepper, based on historical prices, is 10 weeks. Should Dr Pepper stock move in the future similarly to its average historical movement over this duration, an annualized return of 48% could result.

Maxim (MXIM)

Chart for MXIM

Over the next 13 weeks, Maxim has on average historically risen by 4.5% based on the past 29 years of stock performance.

Maxim has risen higher by an average 4.5% in 17 of those 29 years over the subsequent 13 week period,corresponding to a historical probability of 58%

The holding period that leads to the greatest annualized return for Maxim, based on historical prices, is 4 weeks. Should Maxim stock move in the future similarly to its average historical movement over this duration, an annualized return of 36% could result.

January 30th Daily Market Comments

Why the selloff Today? You never know when or what is going to change investor sentiment. That is why it is always prudent to have safety stop’s at levels that tell you prices should not be moving back down through. If you’re trying to figure out what to do with lower trading positions, take one step back and ask, “what does this chart tell me?” If it is not a good bullish chart, close it out. First, that puts money back into your account as cash so that you have a much better perspective as to what to be doing next. This is why we recommend Trend Analysis.