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Summer Doldrums ? August 11, 2018

Posted by Tom in Thoughts.
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Aug. 10, 2018 – This is another short post as I’m winding up my “road trip”.  A short look at the chart below shows some very narrow range bars from Tuesday through Friday of last week.  We’ve bounced off the previous swing high and now that swing high is resistance to future price increases. That resistance is at the 7933 level on the NASDAQ Composite Index (green line).

Support of prices are at the 7604 level (red line).  These are our “lines in the sand” and represent where buyers and sellers have previously taken a stand.  I own personal feeling is that this market has entered into a trading range, a.k.a. the summer doldrums”.  Hey, it’s August and many of the big guys are on vacation.  Likely not much will happen until after Labor Day.   . . . . . unless a big news item comes along.  This administration appears to be trying to solve problems by edict . . . . and that doesn’t appear to be working out well in the short term.  (i.e. tariffs)

Where I see some strength is in Pharma, short China, short Gold, Wireless and Healthcare.  Banks and Financials bring up the rear.  So, let’s be a little patient for now, but be careful also.

That’s it for this week.  Have a good week.       ……………….  Tom  ……………

Within the Channel -Trend Continues August 5, 2018

Posted by Tom in Thoughts.
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Aug. 3, 2018 – I’m taking a short vacation but never “away” from the markets, but these posts will be brief.  Looking at the chart below we see that the broad NASDAQ Composite Index did the “predictable” in that it broke to the lower trend channel line and reverted higher.  Now . . . . looking at Fridays bar (the last one on the chart) we nore it being a very narrow range bar; indecision.

NASDAQ

Investors are unsure as to buy or sell into this short term rally.  The 7604 level is now support and the 7933 is now resistance.  A break below 7604 spells problems, especially if volume (selling) increases.  The 7933 level is the previous high, which is where selling appeared.

So, we’re really at or near a crossroad where this market could show it’s hand into the Fall.  Friday showed us that indecision.  What this market needs is leadership and a reason to bring buyers into the market.  Here’s a listing of current market sector strength in the short term:

Sectors

Have a good week.       ………..  Tom  ……………

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