November 13th Daily Market Comments

The Dow and the S&P 500 are trading flat or slightly higher after bouncing off the T line. The NASDAQ opened lower but is trading above where it opened, indicating buying is still occurring in this market. The transportation index is trading below the T-line causing an alert for watching the rest of the market indexes to start more selling.

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November 12th Daily Market Comments

The slow steady buying indicates calculated buying versus exuberance during this uptrend. The T-line remains a relevant factor for the market uptrend as well as individual stock prices. Numerous stock prices have consolidated mildly back to the T-line and then started back up. This indicates profit-taking occurring along the way. Continue to stay long as long as prices stay above the T-line.

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November 11th Daily Market Comments

Today’s selling was somewhat telegraphed last week with numerous indecisive/Doji trading days in the indexes. With the >Doji days occurring in the overbought condition after a good uptrend, it provided suspicion of some profit-taking about ready to occur. Anticipate more consolidation but not necessarily a reversal in the market indexes as long as they continue to trade above the T-line. This provides opportunities to analyze each individual position in the portfolio to evaluate whether it is time to take profits and look for other sectors that are about ready to start uptrends. The biotech sector is showing good strength.

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November 8th Daily Market Comments

Although Today’s slight selling is relatively indecisive, not showing any drastic change of investor sentiment, there is another visual consideration. Note that the indexes have been forming numerous Doji’s over the past few trading days. Although the uptrend remains in progress, the indecisive trading of the past few days should act as an alert that there may be a change of investor sentiment coming. Stay long but keep safety stop’s in place.

 

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November 7th Daily Market Comments

The double Doji set up that formed in the Dow yesterday provided good probabilities that if the markets opened positive today, the uptrend would continue, and likely with good strength. The indecisive trading in the NASDAQ and the S&P 500 over the past three days provided the same implication. The candlestick signals and patterns still do not reveal any change of investor sentiment. Assume that the next wave of the market uptrend is in progress but always have safety stop’s in place. Anticipate more upside.

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November 6th Daily Market Comments

More consolidation but nothing that shows a change of investor sentiment yet. Anticipate a slow trading day/profit-taking. Analyze each individual stock chart, looking for potential reversal signals. The length of this market trend will allow for taking profits in specific stocks/sectors and rotating that money into new positions. Stay predominantly long as long as the indexes continue to trade above the T-line. Today, the 3T-line is acting as a support level.

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November 5th Daily Market Comments

The market indexes are appearing to be in a consolidation stage today, allowing the T-line to catch up. Market consolidation is further implied with the transportation index trading very bullish today. The overall trend remains bullish without any evidence of a candlestick reversal signal as well as the indexes continuing to trade above the T-line. These market conditions warrant scanning for the strongest bullish chart setups, i.e. best friend signals, frypan bottom breakout’s.

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November 4th Daily Market Comments

The rhetoric of Washington politics does not seem to deter the bullish sentiment of economics. The bullish candlestick patterns demonstrated in the indexes imply more upside. The J-hook pattern of the NASDAQ and S&P 500 would indicate wave three is currently in progress. The Dow appears to be breaking out through resistance levels. Stay predominantly long using the T-line as the ultimate trend criteria. Any short positions should have very compelling reasons to stay short, i.e. SIX.

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November 1st Daily Market Comments

The strength in Today’s trading has broken the Dow out of a little resistance level as well as forming up a J-hook pattern. The same J-hook pattern confirmation is occurring in the NASDAQ and S&P 500 implying more upside. Stay predominantly long but continue to be aware of news items or tweets still having an effect on investor sentiment. But the overall prognosis is that bullish sentiment is still in control of this market especially with the J-hook pattern and the indexes trading above the T-line.

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October 30th Daily Market Comments

The markets are in a wait and see mode, waiting for the Fed announcements. However, the markets are not demonstrating any change of investor sentiment, continuing the uptrend. There are a small number of talking heads still warning of a market selloff the same as 2008. This is very bullish. Take advantage of the signals and patterns that are working. The frypan bottom pattern is producing great results, i.e. UIS, CVLT. ROKU is in the process of developing a Doji sandwich breakout.

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