The markets like government spending, for now. The NASDAQ is showing excessive strength with constant gap ups from day-to-day. The Dow and S&P 500 continue to trade above the T line. The steel stocks and electric vehicle stocks remain strong. Nothing to do at this point except maintain long positions.

The strength can obviously be seen in the NASDAQ. After yesterday’s double Doji confirmation, and another gap up through the 50 day moving average reveals very strong bullish sentiment. The electric vehicle sector has picked up a lot of strength. Stay predominately long.

The double Doji set ups are performing in the NASDAQ and the S&P 500, the NASDAQ gapping up at the T-line and trading positive. An extremely large number of down trending stocks, short trades, have shown strong buy signals yesterday and Today, another indication there is no convincing selling occurring in this market. The kicker signals and the best friend signals are producing good trades Today.

Today’s selling is not real aggressive in the Dow and S&P 500. The NASDAQ continues its downward slope. But the transportation index continues to show a good bullish trend, implying this market is not selling off, merely profit-taking. The strategy remains the same, keep both long and short positions in your trading portfolio.

Today’s positive trading is confirming the bullish left/right combo that formed yesterday in the Dow right at the T-line. The S&P 500 is also confirming. The NASDAQ trading positive today gives the implication of at least a bounce back up to the T line, making today likely a positive trading day. Numerous short positions have now been covered. But the big traders, AAPL, TSLA, AMZN, NVDA are not moving. Market conditions still make the analysis of each individual stock/sector the top priority.

The T-line rule remains in effect, the downtrend of the markets is in progress as long as the indexes continue to trade below the T-line. Numerous short recommendations opened lower but are currently trading higher than where they opened. This makes for an easy entry strategy. Be ready to short these positions when they come back down through the open. Obviously, any long positions still be in maintained require staying above the T line. Be predominately short or in cash.

The market has returned to its indecisive non-directional mode. The NASDAQ is down, the Dow is up, neither moving in a decisive direction. This continues to make the analysis of individual stock chart the top criteria but even that is producing a difficult trading environment with numerous stocks moving up one day down the next. The T-line remains the ultimate criteria for maintaining positions either long or short.

The market is back in a wait and see mode, waiting for the Fed comments today. All the indexes are currently pulling back but supporting right on the T line. The trading strategy remains the same, having both long and short positions in the portfolio. The overall direction of the market is still in a very indecisive/sideways mode.

Be careful, although the market indexes are trading positive Today, it will be important to see where they close. Currently, stochastics are still heading down but the Dow is currently supporting at the T line. The NASDAQ has gapped up above the T line after a bullish Harami on Friday. The transportation index is producing a warning, a shooting star signal so far Today. Although the market indexes are trading higher, numerous short positions are acting well. This implies the lack of trend consensus. Continue to have both long and short positions in the portfolio.

Yesterday’s shooting star in the Dow was a good indicator to expect selling Today. The NASDAQ formed a bearish trend kicker signal, be careful of any bounce in that area today. Expect some more consolidation. The shooting star signal in the Dow yesterday is a significant indicator especially up in the overbought condition. Be cautious.