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.