Archives for March 2017

The weakness in today’s trading does not demonstrate any major change of investor sentiment. The slight selling in the indexes is not producing any reversal signals and the indexes are still trading above the T-line, the Dow trading right on the T-line. The lack of any major change of investor sentiment continues to make each individual sector/stock the main criteria. Stay long with a few short positions.

The current positive trading today indicates the Washington rhetoric is not deterring investor sentiment. The candlestick charts reveal that although bullish strength in the markets may not be overwhelming, at least it is revealing there has not yet been any change of investor sentiment. The uptrend remains in progress as long as the indexes continue to trade above the T-line. Today, the Dow is trying to climb up through the T-line.The current positive trading today indicates the Washington rhetoric is not deterring investor sentiment. The candlestick charts reveal that although bullish strength in the markets may not be overwhelming, at least it is revealing there has not yet been any change of investor sentiment. The uptrend remains in progress as long as the indexes continue to trade above the T-line. Today, the Dow is trying to climb up through the T-line.

With the Dow trading lower and the NASDAQ trading higher, this illustrates the markets are very sector specific. The biotech’s, as seen in LABU, continues to act very well. CARA, CLSD, EXAS continue to act very bullish. Stay predominantly long, with a few short positions in the portfolio, as long as the short positions are not showing any bullish sentiment I.E. UFS. Currently the market indexes are not showing any dramatic bullish sentiment or bearish sentiment, allowing each sector to perform. This is why it’s important to project price targets.

The NASDAQ is having problems getting through the T-line after yesterday’s bullish engulfing signal. The Dow is trading slightly positive but the big bullish indicator today is the transportation index trading positive, heading back up to test the T-line. Although there isn’t any rampant buying today, there isn’t anything to indicate any major change of investor sentiment, implying the markets may have found a support at the 50 day moving average yesterday. The prognosis remains the same, this market is sector specific. Biotech’s are acting well, hospital stocks appear to be picking up strength, semi conductors are showing strength.

The expected knee-jerk reaction to the cancellation of the health bill has taken the Dow right down to the projected target, the 50 day moving average. Although the market indexes are trading lower today, the NASDAQ, the S&P 500, and the transportation index are trading above where they opened. The Dow is trading towards the higher end of its trading range so far today. This implies the selling is not of a rampant nature. Numerous stocks that were trading in good uptrends last week opened lower today but now are continuing to trade positive. The markets continue to show continued strength in specific sectors. Have both long and short in the portfolio.

Today’s healthcare vote remains the prominent influence of the market movement. With the market not moving with any great decisiveness yet, each individual stock chart remains the predominant evaluation. Biotech stocks continue to act well. Gold stocks are attempting to hold up, oil stocks are still in downtrends. Each sector needs to be evaluated.

The market direction is definitely a function of whether the healthcare vote is going to be positive, negative, or postponed. Yesterday’s Doji in the Dow and S&P 500 occurred on a downtrending support line. Today’s positive trading has the inkling of moving back up to test the T-line. However, the reactionary move is still going to be predicated upon the number of likely votes for or against a new healthcare plan. Stay diligent.