October 18th Daily Market Comments

What is the danger signal today? Note that the Dow has gapped up in the overbought condition. What does this illustrate? Exuberance in the overbought condition. The NASDAQ and the S&P 500 are not demonstrating the same bullish consensus. Watch the Dow. If it starts selling off from these levels, be prepared to start taking profits. The Dow has to maintain its strength Today to not demonstrate a reversal in the overall market trends.

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October 17th Daily Market Comments

What do candlestick charts actually reveal? NFLX beat earnings, things look great, logic says the stock should open and trade higher. But what did it do? Opened lower and traded lower. Candlestick charts show what investors are actually doing, which sometimes is completely different than what WE think a price should be doing. Let the market tell you what the market is doing. Currently the market indexes appear to be running out of steam but they are not showing any selling pressure. Stay long but be ready to take profits on long positions. This is why we recommend Trend Analysis.

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October 16th Daily Market Comments

Although the indexes are trading higher this morning, they are trading at the same levels as where they opened, creating Doji’s. The Dow has formed Doji’s each day for the past few days. The S&P 500 and NASDAQ have traded higher over the past few trading days but closing below where they opened. This indicates the Bullish strength of this uptrend is starting to diminish. Stay long but be careful. Having a few short positions in the portfolio is still prudent.

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October 13th Daily Market Comments

Investor sentiment has not changed. The slow uptrend in the overall markets continue to make the analysis of individual stock charts more relevant. Continue to stay in the Bullish charts that remain above the T-line. Remain in bearish positions, such as CMCSA, as long as they stay below the T-line and are not showing any bullish reversal signals. These market conditions will have both long and short positions that are profitable.

 

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October 12th Daily Market Comments

The markets continue in a indecisive/consolidation mode. No formations have occurred that would indicate a change of investor sentiment but the trajectory and force of the current uptrend is starting to show indecisiveness. Nothing has shown a confirmed sell signal but it is prudent to be a little bit more defensive, ready to take some profits on signs of market weakness. Stay predominantly long but be prepared.

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October 11th Daily Market Comments

Although the markets are not moving with any great robustness, they still illustrate the lack of any change of investor sentiment, the slow uptrend persists. The transportation index is providing a good J-hook Pattern, indicating there is no overall selling indications in the markets. This slow steady uptrend allows candlestick patterns to perform, producing better profits than merely holding stocks that are in a slow uptrend. However, there are numerous candlestick positions that are performing steady eddies, staying above the T-line. Stay predominantly long and be a little more protective of profits.

 

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October 10th Daily Market Comments

The indications of some profit-taking/consolidation in Yesterday’s trading remains evident in Today’s trading. Although the indexes are trading higher, the candlestick formations reveal the lack of any strong bullish sentiment. Be defensive, be prepared to start taking some profits if the market indexes do not show any great bullish movement today. Currently all the indexes are trading below where they opened, revealing the lack of strength.

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October 9th Daily Market Comments

Today is a bank holiday. This might make the markets a little less active. However, currently there are no sides of any major change of investor sentiment. Many steady Eddie price moves are continuing in a consistent uptrending manner. These market conditions warrant using the candlestick chart analysis indicators to maintain uptrending stocks but with the prospects of taking profits on size of weakness/sell signals in specific sectors. Shift funds to the strong sectors, such as gold.

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October 6th Daily Market Comments

A Friday, after a good strong week in the markets, is likely to see some consolidation going into the weekend. With the market trading slightly lower, there is still no indication of any change of investor sentiment. Analyze each individual stock chart to assess whether there are any candlestick potential reversal signals. This allows for free and up some funds to get ready for the next sector movements. This is why we recommend Trend Analysis.

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October 5th Daily Market Comments

All boats rise in a rising tide, and currently the rising tide is still in progress. Fortunately, identifying the strong candlestick signals and patterns allows investors to make inordinate profits based upon the results of high profit patterns. The J-hook Pattern is working extremely well.

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