Archives for February 2019

February 22nd Daily Market Comments

The final trend criteria? The indexes continue to trade above the T-line. Yesterday the NASDAQ use the T-line as a support level. Assumption? The uptrend remains in progress as long as there is not an identifiable candlestick sell signal and a close below the T-line. Continue to stay long in charts that have not shown a sell signal and a close below the T line. When the market remains in a steady slow uptrend, take advantage of the candlestick pattern breakouts. IE DLPH, LDOS.

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February 21st Daily Market Comments

The major indexes are trading lower so far Today but the transportation index is trading positive. This implies the lack of any overall consensus of the selling. Expect profit-taking in individual stocks/sectors, rotation is in a fact. The candlestick charts still pinpoint which stocks have very strong bullish chart patterns i.e. DLPH kicker signal/J-hook confirmation. Take profits in charts that are demonstrating weakness/sell signals. There are good shorts that can be added to the portfolio as seen in the DPZ chart last week. These market conditions warrant having both long and short positions in place.

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February 20th Daily Market Comments

Today’s positive trading, although not dramatic, continues to move the market index uptrend in a slow steady manner. This makes a trading environment that allows the candlestick charts/breakout patterns to work very well. Continue to stay long as long as there is no signs of exuberant buying coming into the markets.

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February 19th Daily Market Comments

The strong move in the Dow on Friday clearly indicated the T-line was going to be a relevant factor. It also brought the NASDAQ and the S&P 500 through the potential resistance level of the 200 day moving average. Today’s trading, although the Dow is trading slightly lower, the S&P 500 and the NASDAQ are trading slightly higher, still above the 200 day moving average. This merely indicates profit-taking occurring in the Dow after Friday’s strong day, but not any signs of weakness in the bullish uptrend overall. Continue to stay long, utilizing the strong candlestick signals/pattern breakouts for excessive profits.

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February 14th Daily Market Comments

 

Although the indexes are trading lower today, especially the Dow, they are forming indecisive trading formations as well as staying above the T line. Anticipate this being a profit-taking day as long as there is not any severe selling, taking the indexes back down below the T-line. Be ready to take profits on price moves that are starting to show selling, potential reversal signals in the overbought condition. Do not hesitate to take some profits, if the market continues higher after consolidation, there will be other bullish opportunities.

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February 13th Daily Market Comments

The markets continue to show good strength, the Dow confirming a J-hook pattern, the S&P 500 not resisting at the 200 day moving average. There is also intraday profit-taking occurring in many of the stocks that have had good strong price moves. Profit-taking is adding strength to the overall trend, diminishing exuberance. Continue to stay long but the emphasis still remains on individual stock charts. Be prepared for sector rotations. Crude oil prices are still in a steady uptrend, watch the oils.

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February 12th Daily Market Comments

The implication that the T-line was continuing to act as a uptrending support level is obviously further confirmed today. The NASDAQ is potentially forming a Doji sandwich, making the 200 day moving average a viable target. The Dow trading higher indicates the 200 day moving average/T-line area continues to act as a support level. Note that the Dow opened higher, at yesterday’s open and continue to trade higher, making for a small trend kicker signal. The transportation index continues to move higher further confirming the T-line has maintained the uptrend.

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February 11th Daily Market Comments

The positive trading going into the close on Friday brought the indexes backup above the T-line. Today, although the Dow is trading slightly lower, the NASDAQ and S&P 500 are trading slightly higher. This is currently making the T-line support that much more viable. Most importantly, the transportation index is trading up strong today. This is making the overall prognosis continuing to lean more toward profit-taking occurring during the current uptrend. Note that numerous individual stock charts are in the process of forming J-hook patterns. Watch the T-line.

 

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February 7th Daily Market Comments

The evidence of the potential of profit-taking that was illustrated in the candlestick charts over the past two trading days is in progress today. However, the T-line is still acting as a relevant support factor. Both the NASDAQ and the S&P 500 have already tested and bounced back up off the T-line. The S&P 500, failing at the 200 day moving average and then showing support at the T-line creates the possibility of a bobble breakout if the S&P 500 comes back up and test the 200 day moving average. Numerous individual stocks have also appeared to support at the T-line. It will be important to see whether the day finishes near the top end of the trading range or the lower end of the trading range.

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February 6th Daily Market Comments

Today’s relatively flat trading continues to indicate the lack of any major change of investor sentiment. When the market opens lower, but very mildly lower, that indicates there is some profit-taking but no compelling bearish sentiment coming into the market trend. The lack of any major change of trend direction makes the 200 day moving average a viable target for the NASDAQ as well as the S&P 500. The transportation index is not shown any weakness, using the 3Tline as a trend support. As long as the markets indexes remain in a slow steady uptrend, the strong candlestick breakout patterns will produce good profits without the worry that there is any major change in the overall market. No matter what the rhetoric of Washington DC, the candlestick charts are revealing that investors are still making their decisions based upon other factors.

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