Archives for March 2019

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.

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.

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.

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.

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.

If Today’s selling makes the market indexes closing near the lower end of their trading range, even though they are still trading above the T-line, there will be a significant sell signal formed, a bearish left/right combo.

The markets are trading higher but as illustrated by the candlestick formations today, the indexes are still trading in an indecisive manner. Each individual candlestick stock chart should be the main criteria for evaluating whether to go long, stay long, or close out positions. A number of stock charts are showing good short positions. The indecisive nature of the market should warrant having both long and short positions in the portfolio.