March 27th Daily Market Comments

The markets are still being affected by the political garbage of Washington. But the underlying factor remains that the McMuffin signal in the indexes of the past few trading days produces strong probabilities the uptrend is in progress. The T-line now becomes the trend indicator. The uptrend remains in progress as long as the indexes continue to trade above the T-line. Witnessing the premarket futures showing that the markets were going to open much lower is an immediate indication that any bullish signals created yesterday were probably not going to confirm. This keeps you out of trades that are working just yet.

 

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March 25th Daily Market Comments

The market indexes are in the process of forming a McMuffin. If the markets closes near the high end of there trading range Today, this pattern will provide good evidence of more upside. The unemployment claims bad? Obviously, those numbers were already built into investor sentiment. Let the market tell you what the market is doing.

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March 25th Daily Market Comments

Why should you not listen to the opinions of the talking heads on the financial news stations? Because there is 47 different scenarios of what the markets are going to do from here. A short squeeze yesterday! What pork is in the relief bill? Retesting of the lows! There is one important relevant factor illustrated from all the expert opinions. Nobody knows what is going to happen from here. Except one. The market! The Japanese rice traders tell us always to let the market tell us what the market is doing.

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March 23rd Daily Market Comments

Are any of the congressional bills to supply financial relief to the American economy going to work? Are the feds announcing that they would do anything that it takes to support the economy going to work? Who knows! What is more important is watching the candlestick charts to see when the investor sentiment perceives any of this support is going to work. Continue to stay predominately in cash.

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March 20th Daily Market Comments

A change of investor sentiment? There are subtle differences occurring. The violent gapping on the open one way or the other has diminished over the past two trading days. Although the Dow is not exhibiting any radical movement today, the NASDAQ has been trading solidly positive. Additionally, the biggies such as AMZN, AAPL NVDA etc. are trading positive. This does not necessarily mean were ready for a big rally, but it does indicate that investor sentiment may be settling down.

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March 19th Daily Market Comments

Once again, there is evidence of buying in the market indexes in the oversold condition. Yesterday the indexes form Doji’s and hammer signals. The distance away from the T-line remains in alerting factor. The probabilities are now indicating picking up some long positions. But this should be done on the basis of being quick to close out long positions if the potential reversal signals negate, meaning the sellers come back in with strength.

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March 18th Daily Market Comments

The Dow 20,000 level is the perceived ultimate support level. It continues to hover in that area. This makes watching the 10 minute chart of the Dow very important. Obviously, continuing to sit in cash is the prudent strategy. Today’s lower open/trading remains in the observable nature of the overall market trend, up one day down the next continuation. Stay in cash until it becomes observable the market trend is reversing. There is no evidence of any change of investor sentiment of the current trend. Although this is a boring prognosis, it is better to be boring and keeping the powder dry for the next opportunity. The opportunity will come, be patient.

 

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March 16th Daily Market Comments

The market is down 1700 points, what does that tell the candlestick investor? The market opens down 2200 points, the candlestick graphics illustrate there is buying at these levels. That can also be clearly illustrated using the 10 minute chart. The indexes have moved excessively away from the T-line in the oversold area. Numerous stocks have moved excessively away from the T-line in the oversold area.

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March 13th Daily Market Comments

Be careful, although the market is trading positive it was very evident that after the market opened up dramatically, it continued to sell off. Being able to visually recognize the dark candlestick formation after the open immediately reveals the buyers have not continued. This obviously demonstrates the lack of any bullish pressure yet. Remain patient, until there is an obvious bullish candles/signal, the injury to the bullish sentiment still remains. This may be another waiting day. It may take multiple stimulus programs to gain investor confidence. It may take compelling news about the virus diminishing to diminish the overall fear factor.

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March 12th Daily Market Comments

The best way to trade this market is to be sitting in cash. No matter what trading strategy you would be using Today, there is no rhyme or reason in panic selling. The best thing to do is watch to see when the panic selling is over. Watch your 10 minute chart. Currently the market indexes, after opening much lower, have not sold off from those levels. Be patient, the herd mentality will be graphically illustrated in the candlestick charts. Be ready to buy. Note that the NASDAQ is currently trading above where it opened.

 

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