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.