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