Archives for August 2018

When it becomes hard to find any good trades, either long or short, you have to realize your in a lethargic summer trading day. It may be more worthwhile to go to the beach. Today’s current trading does not reflect any major bullish or bearish trend indication. Continue to hold positions, both long and short, but are continuing to confirm by staying above or below the T-line. Do not anticipate any major market movement on a late-summer Friday trading day.

After the market indexes bounced off the 50 day moving average yesterday and the transportation index close backup above the T-line, there was a strong indication any selling was going to be indecisive. Today’s positive trading does not necessarily indicate there is going to be a strong bullish move, but it keeps the indexes in a sideways mode. These market conditions still warrant analyzing each individual stock/sector on its own chart movements. Continue to use the T-line as your ultimate trend indicator factor. Currently all the indexes have moved back up above the T-line.

The escalating rhetoric of the trade wars has created a selling knee-jerk reaction that has taken the Dow and the NASDAQ back down to the 50 day moving average before starting to bounce back up. Obviously the lower open today indicated the potential bullish signals of yesterday were not going to confirm. Now the 50 day moving average becomes a viable support level to watch. Maintaining a heavier cash balance in the account is prudent until the August vacationing days are over. The T-line remains a viable trend indicator for existing positions.

Today’s positive trading in the markets still has to be watched with some skepticism. There are not any real reversal signals being exhibited in some of the indexes. It will be important to see how the markets close Today. A close above the T-line Today would indicate the upward trend channel is still the top prognosis. A close below the T-line would indicate the profit-taking/consolidation was still in progress. Stay predominantly long but be prepared to remain heavier in cash or adding a few short positions to the portfolio if the markets selloff before the close.

Today’s positive trading still needs to be viewed with some suspicion in regards to the Dow, it is still trading below the T-line. However, the NASDAQ trading much more bullish and trading above the T-line after the Doji at the T-line on Friday.

After the market indexes gapped up on Tuesday in the overbought condition and was followed by a couple more days of Doji’s, that provided the suspicion the market was running out of steam and to be prepared for some profit-taking. The profit-taking in Today’s trading is more likely than a reversal because the candlestick signals are demonstrating buying above where prices opened in the NASDAQ. The S&P 500 is trading lower but in decisively. It will be important to see what the magnitude of the selling is going into the close. Be prepared for some more profit-taking.

Another slow trading uptrending summer day, the NASDAQ trading positive, the Dow trading relatively flat. The bullish sentiment is being revealed with positive earnings reports shooting prices of individual stocks up dramatically, i.e. Roku, yelp. Continue to stay predominantly long.

Today’s slightly lower trading in the markets are not necessarily showing any trend reversal indication, merely backing and filling during an uptrend. Currently the Dow is in a J-hook pattern. The indexes are staying above the T-line implying the overall trend remains in an upward direction. Continue to stay predominantly long as long as there is no candlestick reversal signal and a close back below the T line. The logical prognosis is the uptrend is heading toward the top of the trend channel.

The market indexes are still showing indecisive trading, the Dow is trading lower, the S&P 500 is trading lower but above where it opened and the NASDAQ after opening lower is now trading solidly positive, forming a potential left/right combo off the 50 day moving average. The aggregate of the index moves indicate the lack of any consensus in one direction or the other. This makes the analysis of each individual stock chart the top priority.

After some early selling, the market indexes are now showing slow bullish participation. Investor sentiment appears to be remaining positive due to a good percentage of companies reporting better-than-expected earnings, i.e. AAPL. The NASDAQ did a bullish Harami/Doji right on the 50 day moving average. Today’s positive trading implies at least a test of the T-line. Continue to stay predominantly long with a few short positions in the portfolio.