Archives for August 2018

Yesterday’s news on the Chinese tariffs wars appears to be merely the excuse/reason for profit-taking in the markets. The positive trading today offset the Doji’s that formed in the indexes yesterday. The uptrend appears to be maintaining but after yesterday’s Doji, the markets need to stay above the opens of today. Any selling from these levels back through the opens would indicate the failure of the Bulls, some more downtrend would be expected. Stay long but be attentive.

The early morning consolidation appears to be just that, consolidation. The indexes have opened lower today but mostly trading above where they opened, the NASDAQ actually trading slightly positive. This is not unusual for an uptrend, lower opens but then buying continues during the day. Continue to stay predominantly long.

Today’s market consolidation is the markets resting from yesterday’s big day. The uptrend remains in progress without any indication of change of investor sentiment. Continue to stay predominantly long, with some short positions in the portfolio i.e.TSLA, CMG, BKE. Numerous frypan bottom and steady Eddie patterns continue to produce consistent profits. Although we have just gone through the summer doldrums, there have been many profitable trades. This is why you do not listen to the experts that say sell in May and go away.

Today’s positive trading is confirming the NASDAQ breakout through a resistance level with a Doji sandwich last Friday. The Dow and the S&P 500 both gapped up through a resistance level after Friday’s trading illustrated support at the T-line. The upper resistance level of the uptrending channel continues to be the potential target. The uptrend remains viable as long as there is doubtful rhetoric being espoused by the “experts” on the financial news stations. Continue to stay predominantly long. Currently there is no signs of bearish sentiment in the markets.

The T-line has demonstrated once again that it is an important support factor in the overall market trend. Today’s positive trading illustrated the Dow and the S&P 500 using the T-line as support. The gap up Doji through a resistance level in the NASDAQ produces good evidence that a new wave to the upside is highly likely. Stay predominantly long.

The markets appear to be in a consolidation stage, not trading higher but not trading with any definite lower trading. The NASDAQ is firing a warning shot. It was trading up above the breakout level earlier but now has pulled back below the breakout level, indicating the potential failure of moving to new higher levels.

In spite of all the political bombshells, the markets have pretty well continued their path. The NASDAQ is illustrated that the T-line was continuing to act as a support level. The consolidation in the Dow and S&P 500 showed that the 3T-line was a relevant support level. The prognosis remains the same, as long as the indexes continue to trade above the T-line, the uptrend remains in progress.

Yesterday, the NASDAQ was kind of the laggard of the indexes. Today the gap up in the NASDAQ has formed a Trend Kicker Signal, above the T-line, implying much more upside. The Dow and the S&P 500 continue to trade toward the top end of the trading channel. The transportation index continues to trade in an upward direction, confirming the J-hook pattern. There is no indication currently of any major change of investor sentiment, the slow uptrending market remains in progress. This still makes identifying specific stocks/sectors that are performing the best.

Although the middle of August is considered the optimal vacation time, the markets remained somewhat bullish last week, the Dow especially. Expect at least one more week of vacation before the markets start seeing the activity picked back up. Fortunately, there are still numerous candlestick stock chart patterns that are producing good profitability even during the dog days of summer. The Dow continues to demonstrate strength while the NASDAQ continues to demonstrate a sideways/wedge formation. Remain predominantly long but short positions are also working well.