February 4th Daily Market Comments

A positive open after yesterday’s bullish Harami’s is an indication the trend has reversed. A gap up open after bullish Harami’s and the inverted hammer signal that formed in the Dow implies a very strong bullish reversal. The strong gap up in most stock positions today may have made hard to enter trades. Obviously, the existing trades can be maintained but if the market closes at the top end of its trading range today, anticipate an uptrend and possibly a very strong uptrend. Short positions forming bullish signals should be closed out.