February 15th Daily Market Comments

The NASDAQ continues to be the strongest index with Today’s gap up after yesterday’s close well above the T-line. The other indexes are also showing strength but with indecisive trading after they have opened. The uptrend is now considered back in progress as long as the indexes remain above the T-line but expect some profit-taking after the bullish reversal signal of a week ago. Stay predominantly long but be aware there may be some profit-taking today and tomorrow, going into the long weekend.

 

 

 

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February 14th Daily Market Comments

The knee-jerk selling on the open as disappeared. The NASDAQ is currently trading above the T-line, the other indexes are just nudging the T-line. It will be important to see whether all the indexes can get above the T-line Today to confirm the large hammer type signals that occurred on Friday. Any long positions still require the confirmation of the markets closing above the T-line or at the high end of their trading range Today. The big stocks, AMZN, AAPL NVDA are all trading higher, indicating bullish pressure is still in the markets.

 

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February 13th Daily Market Comments

Today’s lack of bullish confirmation in the markets continue to illustrate the indecisive nature of the market. However, although the markets are trading lower, the indexes are trading above where they opened or at the high end of their trading range. This is why we recommend Trend Analysis.

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February 12th Daily Market Comments

Today’s positive trading is indicating a possible basing area in the markets. A reversal requires strength going into the close. Currently, the Dow is trading at where it opened after trading higher, demonstrating the lack of bullish follow-through so far today. Any established positions today still warrant being ready to close them back out immediately if the individual stock charts and the market indexes show weakness. This is why we recommend Trend Analysis.

 

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February 9th Daily Market Comments

Be careful, although the markets are trading positive today, they are not trading above where they opened. Unless the markets can produce convincing bullish Harami’s Today, the downtrend is still in progress. It is still early in the day, not unusual to see the initial bounce after a big selling day. Remember, candlestick signals are created by where prices open and close. Nothing yet has indicated the Bulls are able to take control. Stay predominantly short until there is convincing bullish signals.

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February 8th Daily Market Comments

Yesterday, the market indexes demonstrated a Doji type day, a day of indecision while still trading below the T-line and the 50 day moving average. The Doji rule made it very easy to anticipate the direction of today’s trading. If the markets continue to show the lack of strength to get them above the 50 day moving average and/or the T-line, it will be assumed the downtrend remains in progress until the next major reversal signal. Short positions need to be maintained as long as they do not close above the T-line. Any long positions established in the next day or so requires continued confirmation of trading bullish.

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February 7th Daily Market Comments

There were numerous bullish signals yesterday, many bullish engulfing signals and piercing signals. Today there is a lot of follow-through, bouncing prices back up toward T-line’s. But be careful, the T-line remains a very relevant indicator for the confirmation of price moves back in a positive direction. After severe selling in the markets and individual stocks, it will not be unusual to see some waffling below the T-line for the next few days. Any bullish trades placed today should be done with the anticipation of moving back out of those trades very quickly if the buying is not maintained. Numerous short positions should have been covered today with the confirmation of bullish reversal signals yesterday. Remain nimble until the indecisive nature of the market establishes more upside or whether this is merely a quick bounce.

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February 6th Daily Market Comments

Have the markets bottom? That is a hard question to answer based upon the daily chart. However, it can already be assumed that with such a hard selloff over the last few days, there might be some buying stepping in. But how do we know if that is a full-scale bottoming action or merely a bounce? Simple, watch your 10 minute chart. Currently the Dow 10 minute chart is illustrating that any buying occurring so far today has run into resistance at the 10 minute chart T line. Until the 10 minute chart illustrates the Bulls taking control, maintain the short positions.

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February 5th Daily Market Comments

Be careful! Although a couple of the major indexes, after opening much lower, are now trading slightly positive. But this is not creating any candlestick reversal signals. The fact that the stochastics are still heading down causes some suspicion that the market has not yet bottomed out. The 50 day moving average is showing some relevancy for the transportation index but the remaining indexes are merely trading positive from where they opened. A bounce? It will be important to see how the indexes close today. Stay predominantly short until there are definite reversal signals in the indexes.

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February 2nd Daily Market Comments

The use of logical stop’s produces a natural reversal in the portfolio positioning. Over the past week, profitable bullish trades were stopped out. Potential new bullish trades usually did not execute based upon lower opens but at the same time short trades were executed. This created a natural change from being predominantly long to being predominantly short in the portfolio. At one time, scanning for new trades was heavily directed toward long positions based upon the market indexes trading above the T-line. Adding a few short positions to the portfolio was viable based upon the markets be in overbought.

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