December 4th Daily Market Comments

The results of the tax bill are being seen in the Dow and the transportation index. The S&P 500 opened higher but is currently trading below where it opened, not showing follow-through strength. The NASDAQ opened higher but is currently trading much lower, forming a potential bearish left/right combo. Although the hanging man signal on Friday, formed by bad news reporting, still is a graphic depiction of what was occurring in human nature. These market conditions warrant being prepared to take profits on charts that are showing signs of weakness/sell signals. Stay predominantly long but short positions have been working very well, NVDA, NFLX, AMZN. Analyze each stock chart on its own chart patterns. This is why we recommend Trend Analysis.