August 10th Daily Market Comments

Today’s positive trading indicates bullish patterns in the indexes provided the indexes trade near the high end of there trading range. The Dow is in the process of a J-hook pattern off the T line with a best friend signal today. However, the NASDAQ is trading lower after its open. Obviously bullish charts continue to act bullish, numerous trend kicker signals have occurred today. Stay long but be alert for any hard selling before the end of the day.

 

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August 8th Daily Market Comments

 

The uptrend remains in progress in the market indexes especially with a J-hook pattern set up in the Dow and the transportation index. The J-hook patterns are continuing to be profitable. The trading strategy remains simple, stay predominately long as long as the indexes continue to trade above the T line.

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August 4th Daily Market Comments

Appears to be a lethargic trading day in the middle of the summer. The lack of movement in the indexes today does not show any change of investor sentiment, the current trend remains in progress. This continues to allow good charts to perform well.

 

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August 2nd Daily Market Comments

The indecisive trading of yesterday in the indexes, the Doji/Harami signals in the overbought condition, provided the warning that the recent high of June 1 might be acting as a resistance level. That is being confirmed with the lower trading today. This would have been a stimulus for taking profits on long positions today if the premarket futures were showing a bearish sentiment. The transportation index is selling off very hard while the Dow is selling off, likely back to the T line. It will be important to see where the markets close today. Unfortunately it may be indicating the continuation of a sideways/summer doldrums market trend.

 

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August 1st Daily Market Comments

The J-hook patterns continue to work in the indexes. Why is the market heading up with the current political/economic conditions? Who knows, but we do not need to know. Candlestick charts provide the ability to analyze what everybody else’s decisions are as far as buying and selling. Stay predominately long.

 

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July 28th Daily Market Comments

Be careful! Fed announcements have a high frequency of whipsaw actions where the initial day has a strong move in one direction but then the next day has a strong move back in the opposite direction. Reality sets in. The feds raised interest rates. Expected. Bullish price move. But then rational thinking realizes they are having to raise interest rates to quell inflation. Market trend? Still relatively indecisive. Any positions should have very strong chart patterns.

 

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July 27th Daily Market Comments

Assumption – candlestick signals and patterns reveal price direction with a high degree of probability based upon historic results. They are further enhanced with confirming indicators, such as the T line. This means if the charts are revealing price movement that cannot be clearly analyzed as far as whether the bulls or the bears are in control, that becomes the analysis. The evaluation should be there is no identifiable price movements that are showing consistency, relax and sit in cash until there becomes better visual analysis. There were good strong sell signals over the past few days in the market indexes. However, today’s positive trading put so sell signals in doubt. That all adds up to the market does not have a decisive direction yet.

 

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July 27th Daily Market Comments

Assumption – candlestick signals and patterns reveal price direction with a high degree of probability based upon historic results. They are further enhanced with confirming indicators, such as the T line. This means if the charts are revealing price movement that cannot be clearly analyzed as far as whether the bulls or the bears are in control, that becomes the analysis. The evaluation should be there is no identifiable price movements that are showing consistency, relax and sit in cash until there becomes better visual analysis. There were good strong sell signals over the past few days in the market indexes. However, today’s positive trading put so sell signals in doubt. That all adds up to the market does not have a decisive direction yet.

 

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July 26th Daily Market Comments

Walmart is putting a negative perspective in investor sentiment today. The consumer confidence index was also showing a downtrend. The NASDAQ has gapped down to the T line and continue to trade lower. Unless there is a major change of investor sentiment by the end of the day, the bears appear to have control of the market. This is also evident in the number of short positions that are performing very well.

 

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July 25th Daily Market Comments

Do the summer doldrums always occur this time of year? Not always and the candlestick charts will illustrate whether that is happening or not. This year, although the indexes are currently trading above the T line, the market conditions still reveal indecisive trading. This is also accentuated by the lack of direction from the feds. The reactive decision-making about interest rates versus a proactive approach continues to put questioning in the investment community.

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