Archives for November 2017

The Dow has gapped up a second time, taking it back into the major trend trajectory. The transportation index, after a huge breakout day yesterday, continues to trade positive. The most revealing index is the NASDAQ. After a huge selloff yesterday, it has bounced back up to where the trading is back up above the T-line. Caution is still required based upon the strong buying of the past few days. This is indicating exuberance. Stay predominantly long but be a little more diligent as far as taking profits on signs of reversals.

The Dow up strong, the transportation index up stronger, the NASDAQ selling off hard, indicating the market is currently very sector oriented. The candlestick charts clearly reveal which stocks/sectors are starting to sell off and which sectors are starting to be bought. AMZN, NVDA, AAPL, TSLA the big names that have acted well are now getting hard selling. Retailers and banks are getting good strength. Long and short positions should be executed and maintained upon their specific charts. This is not anything profound. The candlestick charts make it easy to see which areas to be long and which areas to be short.

The steady climb in the market indexes have not shown any exuberance. Today, the consumer confidence report showed a 17 year high. Investor sentiment has not changed, the slow steady uptrend remains in progress. This is allowing specific stocks/sectors to perform well both on the bullish side as well as some on the bearish side. Stay predominantly long but keep protective stop’s in place. Although there is no signs of any selling pressure, once it starts, everybody is going to start taking profits at the same time.

The indecisive nature of the markets remain but still in a slow bullish uptrend. The Dow is showing good strength so far today while the NASDAQ is trading relatively flat and the transportation index has pulled back to the T-line. Overall, there is no change of investor sentiment. As long as the indexes remain above the T-line, consider the uptrend in progress. The strength of each sector/stock should be the main criteria for staying long or staying in short. A number of the high tech stocks that were acting well up until last week have hit severe profit-taking i.e. SQ,STX. Look for other sectors.

The expected consolidation on a day before a very long weekend is in progress. Nothing has changed as far as investor sentiment when witnessing the NASDAQ trading slightly higher, the S&P 500 trading relatively flat, while the Dow is trading lower. The nature of the market remains the same, there are still good bullish charts creating profits as well as good bearish charts creating profits. Analyze each individual chart pattern on its own merit. This is why we recommend Trend Analysis.

The only consistent factor for analyzing the overall market trend continues to be the T-line. The day to day analysis is not illustrating any consistency. However, the indexes are making the T-line the relevant trend factor. Today’s positive trading is bringing the Dow backup through the T-line after the kicker signal of last week. The relatively indecisive trading of the NASDAQ is keeping the trading well above the T-line. The trend, albeit slightly positive, is still very indecisive. This makes having both long and shorts in the portfolio the most viable strategy.

The expected consolidation today is in progress after the big bullish day yesterday. However, today’s lower trading is still making the T-line an important factor. The Dow is currently trading slightly back below the T-line, the S&P 500 is currently trading right on the T-line while the NASDAQ is significantly above the T-line. This puts the market direction still in an indecisive mode. Both long and short positions continue to act well in this market. The regional airline stocks are working extremely well.

The NASDAQ has a best friend gap up above the T-line so far today. The Dow and S&P 500 have Bullish kicker signals. The T-line is still a major trend indicator on numerous stock charts, there Bullish moves continuing as they stay above the T-line (T-Line Trading). The indecisiveness/whipsaw action of the market indexes is going to be directly attributed to how the tax bill vote finishes out. The prognosis remains the same, have both long and short positions in the portfolio provided they are not showing reversal signals and a close above/below the T-line.