Archives for March 2019

March 20th Daily Market Comments

Yesterday’s little gap up in the market indexes, followed by selling later in the day, implied there would probably be some profit-taking. Today’s lower trading is currently trading well off their low in the indexes. As long as there is not any major selling candle today, assume that today is merely a profit-taking day. Continue to utilize the T-line as your final criteria for recognizing a change of investor sentiment.

 

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March 19th Daily Market Comments

Today’s bullish trading continues the steady uptrending market. The lack of evidence of exuberance is illustrated with numerous stocks trading in an upward direction but with one or two days to the upside, followed by a day of selling, followed by more upside. This indicates there is profit-taking occurring along the way. Because the market is not providing a powerful directional force, this makes each individual stock chart analysis based upon the candlestick signals or patterns. Obviously have the portfolio biased to the upside but there are still a few good short positions performing profitably. It is good to have a slight mixture of short positions in the portfolio as a safety factor.

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March 15th Daily Market Comments

The indexes needed to see strength Today to indicate the recent tops were not going to continue to act as a resistance. The Dow is currently trading above the T-line, the NASDAQ and S&P 500 are trading into new recent high territory. The uptrend is in progress as long as the markets do not close back below the low end of their trading range today. Continue to stay long.

 

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March 14th Daily Market Comments

The indecisive nature of today’s trading in the market indexes is illustrated by numerous stocks trading slightly positive and numerous stocks trading slightly negative, not demonstrating an overall consensus.NVDA trading lower, AMZN trading higher. It is important to observe the uptrend in the NASDAQ and the S&P 500 is currently showing indecisive trading at the same levels those trends topped out a few weeks ago. Watch what signals might occur at those potential resistance levels. The prognosis remains the same, the important analytical factors are based upon each individual stock chart.

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March 13th Daily Market Comments

The lack of selling in Boeing is allowing the Dow to demonstrate its true strength, currently trading up above the T-line. This is in conjunction with positive trading in all the other indexes, all currently trading above the T-line. In spite of all the political rhetoric, investor sentiment is demonstrating bullish trending in all of the indexes. Numerous candlestick signals and patterns are providing very strong profitability. Any short positions should be maintained provided they have not shown reversal signals. Most short positions have been closed out at this time. Simple trend analysis, the uptrend will remain in progress as long as the indexes do not close back below the T-line.

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March 12th Daily Market Comments

BA is keeping the Dow from coming up through the T-line. However, the NASDAQ and S&P 500 continue their move above the T-line. This puts the general market in a slightly bullish condition, not yet with full bullish confirmation but revealing the lack of any major selling pressure anymore. Maintain short positions that have not demonstrated reversal signals but the portfolio should be oriented more toward the long side as long as the indexes stay at or above the T-line area.

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March 11th Daily Market Comments

The lower open in the Dow today was the BA affect. The other indexes opened positive and traded positive. Positive trading would have brought the indexes up to the expected T-line resistance level but as can be seen, the S&P 500 and the NASDAQ do not seem to be resisting at that level. It will be important to see if the indexes close near the high end of the range today, confirming the buying that started after the open on Friday.

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March 8th Daily Market Comments

The Dow is currently trading right about where it opened, down 120 points. The S&P 500 also a Doji so far today. The NASDAQ is trading lower but above where it opened. However, although the NASDAQ is exhibiting some buying, it currently is not strong enough to illustrate any change of the markets downtrends. Continue to stay predominantly short until you see definite reversals in the market indexes. The downtrend remains in progress with stochastics still heading down. A reversal at this stage would require a dramatic bullish candle.

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March 7th Daily Market Comments

There is nothing magical about predicting more downside in the markets after witnessing a bearish left/right combo, followed by a bearish Doji sandwich that closes below the T-line. These are simple candlestick signals that illustrate with a high probability what is occurring in investor sentiment.

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March 6th Daily Market Comments

The expected weakness in the market is still being exhibited today, based upon the strong bearish left/right combo that occurred two trading days ago. The weaker trading in the Dow still provides the prospects of a bearish Doji sandwich, taking the trend down much lower, possibly the same magnitude as two days ago. The NASDAQ and the S&P 500 are both currently hovering right in the T line support area. Closes above the T line will be very important today in those indexes.
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