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Afternoon Market Update for Dec. 12, 2013

The Dow continues to be the most compelling for the short side. The NASDAQ and the S&P 500 are trading in decisively but obviously all three indexes remain below the 8ema and Stochastics is still in a downward trajectory. Any long positions should have compelling reasons to stay long, and short positions to the portfolio until a support level is reached. Continue to hold short positions as well as any remaining strong long positions in the portfolio.

Morning Market Update for Dec 12, 2013

The buying in the markets this morning should be viewed with suspicion. Wednesday's selling was across-the-board, in all indexes. This signified a change of investor sentiment versus shifting from some sectors to other sectors. Any long positions remain in the portfolio needs to trade above the 8ema. Adding a few more short positions to the portfolio is the viable strategy. Portfolios should now be oriented toward the short side.

Morning Market Update for Dec. 10, 2013

With the big move on Friday, the Dow had the opportunity to do some backing and filling/profit-taking yesterday, but it didn't. However, today in the Dow has already come back and use the 8ema as support and traded up from that level. And although the Dow is trading soggy Tuesday, the NASDAQ and the S&P 500 are trading flat, continuing to indicate the slow uptrend remains in progress. Currently there are no sides of any change of investor sentiment. Anticipate more slow upside move it in the markets. When there is no change of investor sentiment, the trend remains in progress. Continue to hold long positions. There are still opportunities to have a few short positions in the portfolio.

Afternoon Market Update for Dec 09, 2013

The markets continue to show bullish strength but very mildly Monday. It still is producing a trading atmosphere for stock specific trades. However, the majority of individual stock trends continue to consist of up moves with pullbacks, but with an overall upward bias. As long as the markets and individual stock charts remain above the 8ema, it continues to be assumed the uptrend is in progress. Hold long positions as long as they do not demonstrate weakness and close below the 8ema. Although the overall trend of the markets is positive, individual stock charts are illustrating buying as well as selling as their slow uptrending projection remains in progress. Stay long unless you see severe sell signals and closes below the 8ema.

Morning Market Update for Dec. 09, 2013

After a big day like Friday, it would not be unusual to see some profit-taking. However Monday's trading illustrates continued bullish participation in the markets. This provides the scenario of a healthy/steady uptrend. Stay long provided those severe candlestick reversal signals do not appear in the indexes. The same applies to individual stocks. As long as the uptrends remain above the 8ema, continue to hold. Many uptrends consist of bullish stages followed by pullbacks but as long as prices remain above the 8ema, continue to hold.

Afternoon Market Update for Dec 03, 2013

As the pullback continues, numerous charts are starting to show sell signals. Close out long positions that are starting to show weakness. Conversely, continue to hold the position that are showing strength, still buying or holding in particular stocks in spite of the market direction. The Dow is showing the most weakness with the S&P 500 now trading back below the 8ema. The sellers are taking control. Close weak positions, they can always be bought back if the indexes come back up above the 8ema. Add some short positions to the portfolio as you close out long positions that are showing sell signals.

Morning Market Update for Dec 03, 2013

The expected profit-taking is occurring Tuesday but mostly in the Dow. Currently, the NASDAQ and the S&P 500 are not showing any great selling pressure. Unless there is a severe selling draft Tuesday, the implication remains that this is profit-taking during an uptrend. Additional evidence is the fact that numerous bullish charts are continuing to trade bullish today, also indicating that there is not any massive selling, yet. As long as the indexes continue to trade above the 8ema, the uptrend has to be assumed to be in progress.

Afternoon Market Update for Dec 02, 2013

The shooting star of Friday is now reflecting the profit-taking. The 8ema continues to influence the short trend. The Dow appears to want to close below the 8ema while the S&P 500 is not showing any dramatic selling pressure. However, the NASDAQ gapped up on Friday and formed a Doji, followed Monday by a bearish engulfing signal. Anticipate a few more days of potential profit-taking before an uptrend can continue. With signs of potential profit-taking over the next couple of days, be prepared to take profits on any charts that are showing weakness.

Morning Market Update for December 02, 2013

The Dow formed a hybrid Shooting Star pattern on Friday, indicating the possibility of some consolidation. Today, the Dow has touched the 8ema and bounced back up, showing that Monday's weakness of the Dow is merely profit-taking, the 8ema is still acting as support. The NASDAQ and the S&P 500 are not moving one way or the other. Bottom line, investor sentiment has not changed, the uptrend is still in progress. The lack of strength or weakness in this market indicates no change of investor sentiment.

Morning Market Update for October 15, 2013

Today's profit-taking is not very compelling. The Dow has come back to the 20 day moving average and supported at that level. The NASDAQ is trading in decisively on a slight pullback I'm doing a Doji. The S&P 500 not showing any great selling pressure. In an uptrend, profits are usually taken in the morning and the buying comes back in the afternoon. Everybody is still waiting to see what decisions are being made in Washington. It is rumored that the Washington Redskins have decided to change their name. They plan to drop the term "Washington" because it is an embarrassment to their name. The uptrend remains in progress as long as the indexes continued to trade above the 8ema. It has to be assumed that Washington will come to a positive decision, not wanting to devastate the economy. The can will be kicked further on down the road, but so that is the expected from our decision-makers in Washington. Have a great trading day.

Morning Market Update for October 03, 2013

The nature of the market conditions remain the same, the Dow continues to sell off while the S&P 500 appears to be supporting at the 50 day moving average, is also resisting at the 8ema. This currently makes the market action still in a sideways mode. The NASDAQ is still above the 8ema although its trajectory is relatively flat. The prognosis remains the same, stay in strong long positions, the short in good weak patterns. These market conditions clearly illustrate that prices moved based upon investor sentiment. Currently it can be assumed that investor sentiment has no strong bullish outlook for the market in general. This is why analyzing specific stocks and sectors becomes very important. Have a great trading day.

Afternoon Market Update for October 01, 2013

Obviously a government shutdown is not worrying investors. Another day of indecisive trading in the Dow and the S&P 500 but further confirmation the sectors in the NASDAQ are still getting strong buyers. Continue to stay long and continue to stay short in the appropriate sectors. Currently, there is no major change in investor sentiment. The sideways motion of this market persists. As long as the markets remain relatively indecisive, other than the NASDAQ, stay with strong long in strong short positions. Have a great trading day.

Afternoon Market Update for September 26, 2013

The selling this afternoon has created inverted hammers in the Dow and the S&P 500. If an uptrend is going to start, the markets need open positive and trade positive tomorrow, confirming the inverted hammer signal. The NASDAQ, although trading back near the lower end of its trading range is still trading above yesterday's open, followed by selling from that point. It is maintaining its uptrend by staying above the 8ema. A positive open tomorrow would be further confirmation the NASDAQ was continuing to stay above the 8ema and forming a j-hook pattern, indicating the uptrend would remain in progress. This market still does not want to move in any direction with conviction. Keep both long positions and short positions in the portfolio. Have a great trading day.

Morning Market Update for September 26, 2013

Be careful, although the Dow and the S&P 500 trading positive Thursday, they are not backed up above the 8ema and they have not shown a reversal signal. However, the NASDAQ is forming a small separating line signal and it has not been able to get back below the 8ema. These market conditions illustrate there are some sectors that are acting strong while other sectors are acting weak. These are market conditions where it is appropriate to have both long and short positions in the portfolio. These market conditions illustrate a lack of trend, the NASDAQ is moving higher while the Dow and S&P 500 have been moving lower, a sector specific market. Take advantage of the capabilities of candlestick analysis to identify which longs and which shorts you should have in the portfolio. Have a great trading day.

Afternoon Market Update for September 18, 2013

The indexes and now trading above the recent highs, the FOMC comments did not deter bullish sentiment, obviously. However, the markets have now gotten overextended, away from the MA's and furthermore the 8ema. This would warrant watching for profit-taking. Be prepared to take some profits off the table in the near future. Note the magnitude of today's candles in the indexes, this is a sign of exuberance, be nimble, be prepared. Have a great trading day.

Morning Market Update for September 10, 2013

Tuesday's positive trading in the Dow makes the 50 day moving average target more viable. Expect some profit-taking along the way but as long as the markets continue to close above the 8ema, the overall trend will remain positive. The NASDAQ, with today's gap up through the top resistance level indicates wave three is in progress. Stay predominantly long, there are still a few gold stocks that can remain short. Be cautious of some profit-taking but remain in positions that are not demonstrating full sell signals. Have a great trading day. Learn more how we can improve your trading http://www.SylandDave.com

Morning Market Update for September 04, 2013

Although some bullish trading is coming in early in the day, the markets continue to demonstrate that there is no major selling pressure at these levels, yet. The Stochastics are showing oversold conditions and the candlestick signals are starting to show buy signals. Continue to hold both long and short positions in the portfolio. This is an area to start adding long positions but with the sense of nimbleness. A positive trading day today in the Dow and the S&P 500 would confirm the inverted hammer signal of Tuesday. This would be an extremely high probability indication the uptrend is starting again. The markets are not showing any excessive strength yet they are not showing any excessive selling. Although this is not a robust market condition, it will allow for specific candlestick signals/patterns to work effectively when there is no fear of a major selloff.

Morning Market Update for August 29, 2013

Thursday's positive trading still requires the indexes to eventually close above the 8ema. Although there is buying at these levels, there has not been a strong reversal signal in any of the indexes. At this level, the NASDAQ is trading back up above the 8ema. However, the Dow and the S&P 500 still need to see a close above the 8ema to demonstrate the current downtrend is over. Any buying Wednesday or Thursday still needs to be done with a sense of nimbleness. Be ready to close out positions that will be affected by a continued downtrend if the indexes fail once more below the 8ema. This market still requires close attention. The bias is still downward until there is bullish confirmations. Have a great trading day,

Afternoon Market Update for August 28, 2013

Although today's trading shows a bullish trading day, the Dow and the S&P 500 are not showing a reversal signal. The NASDAQ is actually producing a bullish Harami. The fact that the Dow and the S&P 500 are not true reversal signals, one still needs to be nimble. A possible move up to the 8ema may be met with resistance at that level. Any bullish trades in the portfolio should be watched diligently when the indexes approach the 8ema. The markets are still in a bearish mode until we see closes back up above the 8ema. Have a great trading day,

Afternoon Market Update for August 27, 2013

The lack of buying in the markets this afternoon puts the Dow in a situation where a bearish J-hook pattern is being confirmed. This would suggest another leg down, possibly all the way down to the 200 day moving average, near Junes lows.The NASDAQ had a good distance to get down to the 50 day moving average but it has already moved extensively to that target. It would not be unusual to see the markets traded lower Wednesday allowing the NASDAQ to test the 50 day moving average as support. The 8ema should be an important factor for individual stock price closes Wednesday. This market has now produced doubt in the Bulls minds, watch to see what the indexes do at support levels, the NASDAQ should hit one early tomorrow. Have a great trading day.

Morning Market Update for August 27, 2013

Tuesday's selling, a continued reaction to the Syria question, has the Dow trading at a minor support level. It will be important to see how the markets close Tuesday. Observing buying going into the close Tuesday, creating a hammer type signal in the Dow would indicate this minor support level is likely to hold. A close at the lower end of Tuesday's trading range would create a bearish J-hook pattern/falling off roof potential, taking the markets down to the lows of June. A close near the lower end of the trading range Tuesday would warrant closing out long positions that appear to have run out of steam. The failure of the Dow coming up through the 8ema revealed significant information. Investor sentiment has not turned aggressively bullish. Look at adding some short positions to the portfolio. Have a great trading day.

Morning Market Update for August 23, 2013

With it trading back up above the 8ema, there should be an implication the sellers have not taking over this market. Have a great trading day,

Morning Market Update for August 22, 2013

The Dow is forming a bullish Harami Thursday but will need the close to confirm. The NASDAQ has done a Doji followed by a gap up through the 8ema in the oversold area. This is a much more compelling reversal signal. The NASDAQ has been acting stronger than the Dow and the S&P over the past few days. This has been providing evidence that there is not aggressive selling in the markets. Continue to have both long and short positions in the portfolio with the bias starting to turn toward the bullish scenario. The markets appear like they do not want to go down aggressively, starting some bottoming action at these levels. Remain nimble but start orienting the portfolio toward the long side Have a great trading day

Afternoon Market Update for August 21, 2013

With the Dow and the S&P 500 forming Doji's Wednesday and the NASDAQ nudging the 8ema, there are still indications that there is not any severe selling at these levels. That will be clarified upon positive trading Thursday, confirming the Doji's in the Dow and the S&P 500 and moving the NASDAQ up above the 8ema. Additionally, there are numerous stocks moving positive Wednesday on strong chart patterns. This is another indication there is not any massive selling occurring. With the lack of aggressive selling indicators over the past two weeks, now that the markets are in the oversold condition revealing bullish reversal signals, be prepared to buy more long positions on positive trading over the next couple of days. Have a great trading day.

Morning Market Update for August 21, 2013

Once again we are in the market mode of one index up, one index flat, one index down. This reveals there is no strong direction in the markets one way or the other. Currently the slow market direction is in a downward mode. However, there are still good bullish patterns in this market as well as good bearish patterns in this market. The markets are still in conditions that do not demonstrate any forceful move one way or the other. This is the summer doldrums. Have a great trading day,

Afternoon Market Update for August 20, 2013

With the markets in the oversold condition, expectation of at least a bounce was not out of the realm of possibilities. The Dow has formed a bullish Harami Tuesday and the NASDAQ is confirmed in inverted hammer signal of Monday. Obviously this implies that the selling has stopped and the buying has started. Long positions can be added to the portfolio, short positions require the lack of bullish signals. Any buying in this area still requires bullish confirmation Wednesday. The oversold conditions were the alert that there might be at least a bounce in this area. The 8ema once again becomes a very predominant indicator as to whether the uptrend is back in progress. Have a great trading day.