Today’s trading is a good example of why evaluating the premarket futures any time before 10 minutes within the opening is not worthwhile. The Iranian missile attack last night had the Dow futures down 355 points at one time. The Dow opened down approximately 20 points. Currently the markets are trading relatively flat, waiting for president Trumps announcements at 11 AM.

Today’s profit-taking in the markets is not unexpected after yesterday’s big reversal move. The indexes continue to trade above the T-line. The selling in the Dow is not dramatic. The NASDAQ continues to trade positive, indicating there is no major change of investor sentiment in the overall market trend. The strategy remains simple, stay long in positions that are continuing to trade above the T-line.

The markets again opened lower but are currently trading back up above where they opened. This has created numerous belt hold type signals, especially relevant in charts that open lower, on the T-line, and are now trading positive, ie AAPL. The belt hold type signals illustrate bullish pressure in the markets after the lower open. The T-line continues to be a relevant indicator. Do not let knee-jerk reactions whipsaw you out of positions.

Candlestick formations provide much more clear evidence that Today’s selling is more of a knee-jerk reaction versus a reversal. This is due to the fact that although the indexes are much lower, they are currently trading above where they opened. This merely indicates a lower open followed by buying still participating in this market. It is not time to bail out, watch to see where the indexes closed today in relation to the T-line.

Happy new year! The markets start out strong again not showing any change of the current investor sentiment that has been exhibited going right up into the first of the year. However, as expected there is some profit-taking which would be putting gains into 2020 for tax purposes.

The markets are not doing anything of any great magnitude, the indexes trading lower but above where they opened and hovering around the T-line support area. Maintain positions that are continuing to trade above or below the T-line but keep some dry powder ready for going after sectors that are showing the greatest strength on Thursday. The afternoon trading is likely to be very light.

Today’s profit-taking allows for assessing existing positions. If you have charts that are not showing great bullish dynamics, even though they are still trading above the T-line, closing those positions and moving to cash is a good strategy. The holiday season, with its slow trading is usually the timeframe when money managers make an assessment of their existing positions and analyzing which sectors will likely be the best place to be positioned after the first of the year.

Nothing has appeared to changed in investor sentiment. The slow steady bullish trend remains in progress even during the quiet holiday week. Although the volume is lower than normal, the investment decisions remain the same. Continue to hold long positions that remain above the T-line and not demonstrating any candlestick sell signals. Tax selling is not likely to occur until after the first of the year.

Although the volume at holiday time is usually much lower than normal, the underlying factor of the existing volume is that it will still show what investor sentiment is revealing from investors that are participating in the slow volume markets. Currently, it is evident that there is not any change of investor sentiment, slow bullish buying continues the uptrend. Obviously the week of the holiday will not have the full gamut of investors.

Although the major portion of today’s strength in the Dow is due to Boeing, the other indexes, the NASDAQ and the S&P 500, are still showing the same moderate strength that has been exhibited in the markets over the past two weeks. Obviously, the volume this week will be relatively low but that does not alter investor sentiment. Stay long as long as the indexes stay above the T-line.