The Dow formed a hammer signal on Friday in the oversold area, bouncing up off the 200 day moving average. This provided the prospects of a reversal in the market trend based upon a positive open today. Today’s positive trading produces evidence the 200 day moving average was going to act as a support level. Why is the market trading positive today? We do not need to know! Our evaluation should be merely analyzing what everybody else’s decision making process is producing. Numerous short positions are showing potential reversal signals, be ready to cover if the strength of the market continues going into the close. How will the elections affect the market? We do not need to know how to analyze that. We need to analyze what everybody else’s decisions are producing.
November 2nd Daily Market Comments
The Dow formed a hammer signal on Friday in the oversold area, bouncing up off the 200 day moving average. This provided the prospects of a reversal in the market trend based upon a positive open today. Today’s positive trading produces evidence the 200 day moving average was going to act as a support level. Why is the market trading positive today? We do not need to know! Our evaluation should be merely analyzing what everybody else’s decision making process is producing. Numerous short positions are showing potential reversal signals, be ready to cover if the strength of the market continues going into the close. How will the elections affect the market? We do not need to know how to analyze that. We need to analyze what everybody else’s decisions are producing.