July 28th Daily Market Comments

The T-line has illustrated that it is a very effective trend indicator. Any stock positions that traded below the T-line when the market started selling off clearly indicated the buyers had disappeared and probably would not come back into the trades until prices came back up above the T-line. The combination of a candlestick sell signal and a close/trading below the T-line gets you out of trades without the emotional questioning. Although the Dow is maintaining its trend, not selling off Today with any great strength, the other indexes are below the T-line. Expect a sideways motion in this market until Washington has better results coming from our illustrious representatives.

Share