October 27th Daily Market Comments

The analysis remains the same, as long as the indexes are trading below the T-line the downtrend remains in progress. Continue to hold short positions and stopping out of any long positions that are showing weakness, trading below the T line. Uncertainty is what creates bearish investor sentiment. No stimulus package being discussed, inconsistency in the election polls, the virus gaining strength. This all provides an indecisive market environment.

 

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October 26th Daily Market Comments

The trend analysis remains the same, the indexes demonstrating indecisive trading each day and the T-line continuing to act as a resistance factor. There is still plenty of indecision, the virus expanding, the election results. The slow downward drift of the market continues to produce a trading environment that can have both long and short positions in the portfolio, but each direction requires full confirmation that each stock price trend is not showing reversals, candlestick signals. Heavier cash positions is prudent.

 

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October 22nd Daily Market Comments

A large bearish left/right combo on Monday, closing the indexes below the T-line, confirmed the obvious selling. Further confirmation is demonstrated by the fact that the T-line is acting as the resistance level. The 50 day moving average appears to be the likely target, indicating more downside but that could be achieved Today. Short positions require the same strategy, have safety stops in place. Because there is always the potential of a positive announcement, vaccines, stimulus package, big earnings that could blast the market back up again. The portfolio bias should be more oriented to the short side.

 

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October 21st Daily Market Comments

The T-line rule! As long as the indexes cannot close back up above the T-line, assume the downtrend is in progress. The indecisive nature of trading is the indecision going into the election. Obviously, this makes trading relatively difficult, investor sentiment can swing one way or the other based upon the prospects of the stimulus package. The indecisive trading is not only in the indexes but in individual stocks. Numerous trending stocks have experienced choppy trend movement. However, there is evidence of bearish trades starting to work with more consistency,NVAX, OSTK. Keep safety stops in place.

 

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October 20th Daily Market Comments

What is the direction of the market trend? What are the candlestick charts revealing? The graphics of candlestick analysis makes analyzing market trends/stock price trends relatively easy. When you cannot identify the direction of a price move, because of the lack of candlestick signals and/or the waffling of a trend near the T-line, the trend analysis is easy. There is no identifiable trend. Currently the transportation index is trading back up above the T-line. The NASDAQ is trading below the T line. The Dow and S&P 500 are trading back up right to the T line level. This does not provide any conclusive trend analysis. What do you do with this trading scenario? Simple, stay long in long positions that have not shown any sell signals and are still trading above the T line. Stay short in short positions that have not shown any buy signals and continue to trade below the T line.

 

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October 19th Daily Market Comments

The nature of the market trend remains the same, the uptrend is in progress because the indexes are above the T-line but the daily trading remains very choppy. Currently, the Dow is setting up for a J-hook pattern provided it remains above the T-line. The NASDAQ is still in a consolidation mode, trading right back down to the T-line right now. There are strong sectors. It was projected that deliveries will be behind by 7 million packages a day going into the holiday season. This is providing strength in both the delivery stocks i.e. FDX, and a number of the retail stocks, DDS, CHWY. Stay long but in specific sectors and always have safety stops in place until the market shows more consistency in one direction or the other.

 

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October 16th Daily Market Comments

Although the market indexes are continuing their slow uptrend it is still doing so in a choppy/oscillating nature. This puts more importance on utilizing the T-line as your ultimate trend indicator. Numerous J-hook patterns are continuing to work successfully. Utilizing the candlestick patterns takes some of the anguish out of watching a choppy market, the patterns will usually produce and expected and identifiable price move. Stay predominately long, continue to utilize the T-line as your ultimate factor.

 

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October 15th Daily Market Comments

Although the markets are trading lower Today, because of the lack of results for a stimulus package, numerous stocks are trading above where they opened. This obviously indicates many stock price trends get influenced by knee-jerk market reaction but then the prevailing investor sentiment for that stock price sets back in. The market trend prognosis remains the same, the slow uptrend is likely in progress but it’s going to be a choppy uptrend based upon the day today rhetoric coming out of Washington. Continue to use the T-line as your ultimate trend indicator. The indexes are currently hovering at the T-line.

 

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October 14th Daily Market Comments

Consolidation is still the main trading factor Today, the major indexes trading relatively flat after trading higher on the open. However, consolidation is more evident versus any reversal of investor sentiment based upon the transportation index continuing to trade in a strong bullish uptrend. Expect some profit-taking in this area but as of yet there is not any signs of any major change of investor sentiment. The strategy remains the same, stay predominately long but have safety stops in place.

 

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October 13th Daily Market Comments

As anticipated, with the indexes moving a considerable distance above the T-line, there is expected profit-taking occurring Today. Currently, the market indexes are pulling back but with an indecisive Doji type day, illustrating a lack of aggressive selling. Expect some consolidation, may be over the next day or two, but nothing yet has shown there is a change of investor sentiment. Stay predominately long, keep safety stops in place.

 

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