September 4th Daily Market Comments

What is creating market moves? Headlines! Is there any way to analyze what is happening to investor sentiment on a day to day basis? Not really, but there is one underlying factor that provides a consistency in trend analysis, the T-line. Although the Dow traded off significantly yesterday, note that it closed right at the T-line. This should always be an observable indication. The whipsaw all of the markets on a daily basis is obviously a very difficult environment to try to maintain trades, but the T-line rule at least provides a criteria for staying in or getting out of individual stock positions. Established positions should utilize the T-line rule.