Archives for September 2018

The Dow and the S&P 500 are currently forming a left/right combo on the T-line, a strong bullish indication. The NASDAQ continues it’s uptrending frypan bottom trajectory, also indicating solid bullish sentiment in the markets continue to stay predominantly long. Today NVDA has done a best friend breakout, another indication bullish sentiment is staying in the markets. Stay predominantly long, there are also good short positions available.

Today’s bullish trading continues to demonstrate the T-line acting as a relevant trend support level. It also demonstrated the NASDAQ continuing the frypan bottom pattern and remaining above the T-line. Potential trade wars, Supreme Court judge hearings, excessive political rhetoric from Washington DC does not appear to be affecting investment decisions. What could’ve been a viable change of investor sentiment after yesterday’s trading closing the indexes in the T-line area has been negated, demonstrating the uptrend remains in progress. Continue to hold long positions that remain above the T-line as well as maintaining short positions that continue below the T-line. Very simple trading strategy.

Today’s positive trading, although not demonstratively strong continues to indicate the T-line acting as a support level. The NASDAQ is setting up as a Frypan bottom, implying a slow steady uptrend for the near future. The S&P 500 and the Dow are still trading above the T-line not showing any severe selling pressure. The slow uptrend’s of the market continue to make the evaluation of each individual stock chart the top priority. NFLX is doing a bullish Doji sandwich right at a breakout level. AAPL is setting up as three white soldiers at the T-line. The evaluation of the indexes as well as some of the big followed stocks make the prospects of a continued uptrend very likely.

The lack of movement in the markets today continue to demonstrate there is no major change of investor sentiment from the slow uptrend in progress. The lack of directional force in the markets, the lack of any excessive bullish strength is also demonstrating the lack of any bearish sentiment. These market conditions allow for analyzing the high profit candlestick signals and patterns with better prospects they will work effectively without any market direction offsetting the profitability of each signal or pattern.

Friday’s indecisive trading, a Doji day, in the indexes made the likelihood of profit-taking Today that much greater. The Dow actually did a Doji after gapping up slightly in the overbought condition and at an all-time high. Today’s trading in the transportation index shows a definite change of investor sentiment after the Doji/shooting star signal at the T-line on Friday followed by a much lower trading Today. The prognosis remains the same, candlestick patterns, such as the Frypan bottom pattern will likely continue in spite of the market selloff, i.e.

Although the Dow is trading at all-time highs, the NASDAQ is trading lower. This does not diminish the strength of the market, it actually reveals that exuberance has not come into the market trend. This makes for a much more solid/sustained trend movement. These market conditions continue to produce good profits on the long side as well as some good profits on the short side. Analyze each individual position on its own merits but with knowing the overall bias of the market is still in an upward direction.

Although the Dow is still trading higher, the strongest bullish indication today was the gap up in the NASDAQ after yesterday’s Doji day right at the T-line. The analysis is very simple, as long as the indexes continue to trade above the T-line, the uptrend remains in progress. The trading strategy remains the same, the bias of the portfolio should be bullish with a few short positions still producing good profits.

Although the Dow is trading up strong again today, rampant enthusiasm still has not permeated this market. Yesterday’s positive trading demonstrated the indexes were going to stay above the T-line, implying the uptrend remains in progress. However, with the Dow trading up 175 points, the transportation index and the S&P 500 trading moderately higher, the NASDAQ is trading lower. This combination demonstrates that bullish and bearish sentiment is evident in specific sectors. The prognosis remains the same, the slow uptrend of the markets continues but still with very selective stocks/sectors. Have both long and short positions in the portfolio with the bias toward the long side.

Today’s positive trading in the indexes are showing strength at the T-line and currently showing the lack of confirmation in yesterday’s evening star signals. This is good for the bullish uptrend PROVIDED selling does not bring the markets back down through Today’s open. If the markets close with good bullish candles Today, staying above the T-line, additional bullish confirmation will be required to confirm the uptrend is continuing, albeit very slowly. A lower open in tomorrow’s trading would indicate sideways/wedge formations forming in the indexes, obviously not making for very compelling trend movement. Continue to have both long and short positions in the portfolio.

Soggy day! There is not anything is showing any major change of investor sentiment but all the indexes are trading lower Today. This is different than the majority of trading days during this slow uptrend where one or two indexes would be trading higher while the other one or two indexes would be trading lower. The NASDAQ is selling off hard, it is currently the only index trading below the T-line. The NASDAQ is also looking like it is creating a sideways wedge formation, implying no major trend movements for the next week or two. Long positions should be watched with more scrutiny and having a few more short positions in the portfolio is prudent.