April 2nd Daily Market Comments

Be careful, watch the T-line on the Dow. A candlestick sell signal and a close below the T-line has high probability ramifications, illustrated in ZM and LK. The Dow has currently bounced back up to the T-line, it will be important to see what it does from that level. Oil stocks are showing strength with the prospects of Trump getting Saudi Arabia and Russia to reconcile. Have both long and short positions in the portfolio.

 

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April 1st Daily Market Comments

The T-line remains a very critical analytical level. Although the indexes produced a strong reversal, today’s trading below the T-line on the indexes indicates the potential of the markets heading lower. It will be important to see how they close the markets Today. The indecisive trend continues to make the analysis of individual stocks and sectors much more critical. Obviously, any positions maintained should have very compelling reasons to maintain. Until the markets can produce an observable trend, bullish or bearish, maintaining a heavier cash position is still the best strategy.

 

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March 31st Daily Market Comments

The McMuffin signal is a powerful reversal signal, indicating a trend reversal is likely to have occurred. But more importantly for the candlestick investor, it reveals another important factor. Investor sentiment has changed! The fear selling of the past month now has been altered. The strong candlestick reversal signal indicates investor sentiment is not reacting to all the bad virus news the same way.

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March 30th Daily Market Comments

The McMuffin pattern is still the predominant indication of investor sentiment. The virus news seems to be just as good/bad as it has been for the past few weeks. How should we analyze that? We don’t need to, the McMuffin pattern produces extremely high results. We do not need to analyze how the current news is affecting the market, we just need to analyze what everybody else thinks the news is doing to the market trend. Keep the analysis simple.

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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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