Daily Stock Market Trend Indications

By: Mark_McMillan

Note that if your broker had trouble finding shares to borrow so you could short TLT, you can take a long position (buy) shares of TBT. It is a 2x Inverse TLT ETF meaning that it should move approximately twice what TLT will, but in the opposite direction. So, you can buy half as many shares of TBT to approximate shorting shares of TLT.

- Positions indicated as Green are Long positions, positions indicated as Red are short positions.
- The State of the Market is used to determine how you should trade. A trending market can ignore support and resistance levels and maintain its direction longer than most traders think it will.
- The BIAS is used to determine how aggressive or defensive you should be with a position. If the BIAS is Bullish but the market is in a Trading state, you might enter a short trade to take advantage of a reversal off of resistance. The BIAS tells you to exit that trade on "weaker" signals than you might otherwise trade on as the market is predisposed to move in the direction of BIAS.
- The Moving Averages are noted as they are important signposts used by the Chartists community in determining the relative health of the markets.

Commentary:
The Dow is still in a bullish uptrend state while the S&P-500 and NASDAQ-100 are in trading states. We will stay long with all the positions to see whether the money on the sidelines gets put to work today. If the semiconductor index enters free fall, that will be another sign that the market is shift toward a bearish bias so we will monitor that as well.

We hope you have enjoyed this edition of the McMillan portfolio. You may send comments to mark@stockbarometer.com.

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By Mark McMillan

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