Archives for June 2017

Today’s positive trading is trading as a Doji Day in the Dow  and S&P 500, showing indecision in an indecisive market trend. This continues to reveal there is no bullish or bearish consensus in this market, a sideways mode is still the likely prognosis. Continue to hold long positions that are acting strong and shorting positions that continue to act weak. Obviously not a profound trading strategy, but the best strategy for when the markets are showing no decisiveness.

Today’s selling demonstrates that Yesterday’s bullish trading day was merely showing the indecisive sideways trend of the overall market. The Dow and S&P 500 are not showing any dramatic selling Today but the NASDAQ continues to sell off hard. However, the transportation index is still showing some strength. These market conditions illustrate the lack of consensus between the Bulls and the Bears, demonstrating specific sectors are being bought while other sectors are being sold. Have both long and short positions in the portfolio. This is why we recommend Trend Analysis.

Today’s positive trading continues to make the T-line a very vital factor in trend analysis. The NASDAQ has tested the 50 Day Moving Average Today before bouncing up while the Dow opened at the T-line Today and moved positive, the S&P 500 Gapped Up and is currently trading right at the T-line, and the transportation index has done a Kicker Signal bouncing off the T-line and continuing a J-hook pattern. Overall, after the hard selling of Yesterday, Today’s positive trading indicates there is no dramatic selling pressure. The market indexes should continue at least in a sideways, if not a slow uptrend manner. Each individual stock chart remains the main criteria for both long and short positions.

The T-line remains an important trend factor. The Dow is trading above the T-line. The NASDAQ is doing a Doji right on the T-line. This indicates there is no dramatic change of investor sentiment, the slow uptrend remains in progress. Stay predominantly long, utilizing the T-line as a support level for each individual position.

Today’s positive trading, other than the NASDAQ, continues to demonstrate a slow uptrend in the market as long as the indexes do not close below the T-line. Continue to stay long in charts that do not demonstrate a sell signal and a close below the T-line. The biotechs continue to act strong. Crude Oil is trying to based around the $43 area but still not showing any major trend of the downtrend. This is why we recommend Trend Analysis.

The candlestick breakout patterns continue to work effectively in this market that is not showing any dramatic change of investor sentiment. Today CARA  Gapped Up after a strong buy signal through the resistance level. The ability to recognize strong buy signals going into a resistance level produces extremely high probabilities of Big Breakout trades. They become much more effective when able to analyze the overall direction of the markets. Currently the market indexes continue to utilize the T-line as an uptrending support level.

The health care rhetoric going on in Washington today appears to be adding strength of the market indexes. This also illustrates the T-line acting as support for all the indexes. The healthcare/biotech sector continues to act very bullish. The market conditions still make pinpointing the strong charts in specific stocks and sectors the main investment criteria. Stay predominantly long.