Archives for November 2017

Today’s lower trading is now creating strong bearish implications. The Dow has not been able to get back up above the T-line over the past few days of trading. Today’s gap down and lower trading is further confirming the downward trajectory of the stochastics. The NASDAQ and S&P 500 were showing prospects of just barely staying above the T-line but Today’s strong selling is demonstrating the acceleration of the bearish participation of the overall market. Short positions are obviously working well. Any long positions being maintained should have compelling evidence, no sell signals or trading below the T-line, to stay in those positions. Expect more downside in the markets if there is no bullish signal formations created going into the close.

The market pullback is showing a consistent factor. The markets opened lower but trade above where they opened by the end of the day. This is currently demonstrating the sellers have not taken control of the trend. However, the indexes are trading below the T-line, giving more probabilities that investor sentiment is more inclined to be on the bearish side until there is a close backup above the T-line. The tentative nature of the current market conditions still require holding long positions that are not demonstrating any sell signals and having short positions also in the portfolio.

The market indexes are trading lower but not with any great decisiveness. However, they are trading lower after yesterday’s Doji type days. Make sure you have some additional short positions in the portfolio. Any long positions now require the lack of any selling to maintain those positions until there is more decisiveness in the markets one way or the other. Be ready to take profits on the long side upon further weakness in the markets Today.

The markets are trading lower, the past week of Doji’s in the Dow provided the suspicion of some profit-taking about ready to occur. However, currently the lower trading is showing Doji type day pullbacks, meaning not very convincing selling. The NASDAQ, trading lower, but above the open. This indicates the currently there is no dramatic selling in the markets, merely profit-taking. Use each individual chart as your primary analysis. Watch where the market indexes close today. Currently the T-line is still acting as a relevant support. Oil stocks are rebounding as crude oil prices are also moving up after a double Doji signal.

The potential reversal signals of yesterday, Doji’s and bearish Harami’s, in the indexes provided the prospect of some profit-taking/consolidation. Today’s weakness in the markets can be construed as profit-taking versus a market reversal based upon the indecisive nature of Today’s trading. This would make the prospects of the indexes coming back to test the T-line a likely scenario. The transportation index is producing strong selling after failing to hold the 50 day moving average yesterday. Take profits on sell signals. The oil stocks traded in decisively yesterday and were closed out on lower opens today. Existing short positions should be maintained provided there are no indications of bullish reversal signals. Expect more consolidation in the markets for the next day or two.

Today’s trading is not showing any change of trend/investor sentiment. However there is an interesting formation and the transportation index. It is currently forming and inverted hammer signal right on the 50 day moving average. It is still early in the day but watch this index. A bounce up off the 50 day moving average creating wave three would be a strong indication that the uptrend in all the market indexes will remain in progress. The prognosis remains the same, stay predominantly long and have a few short positions in the portfolio.

The markets continue to show slow bullish strength. The big stocks,NVDA, AMZN, AAPL are maintaining steady bullish uptrends. Pattern breakouts are working, such as wedge breakouts in NFLX and ZYNE. As long as the overall market trend continues its steady but slow uptrend, the big profits are going to be made in pattern breakouts. Continue to stay predominantly long and maintain the short positions i.e. WATT as long as It does not demonstrate bullish reversal signals.