May 24th Daily Market Comments

Today’s market trading produces the same analysis as the past few days, the indexes remain above the T-line but without any dramatic buying and/or selling pressure. The uptrend in many Bullish stock prices is persistent but with backing and filling/profit-taking as the trends move higher. The T-line still remains a valuable trend indicator in slow upward waffling type moves. Stay predominantly long but having a few short positions in the portfolio is still going to produce profits. The indexes are approaching recent highs, making a breach of those levels a prospective J-hook Pattern Bullish confirmation.

Share

May 23rd Daily Market Comments

Although there has been indecisive trading Today, the markets are not showing any selling pressure. The markets may not be showing any extravagant buying pressure but the fact that the indexes are still trading slightly positive and trading above the T-line continues to demonstrate the overall market is not moving one way or the other. These market conditions allow the candlestick signals and patterns to produce profits based upon investor sentiment in each individual stock/sector. Use each individual stock chart as the main criteria.

Share

May 22nd Daily Market Comments

Today’s positive trading, as long as it stays positive going into the close, will bring all the indexes backup above the T-line. Although the indexes are still trading below the recent highs, they have recouped the dark candle created last Wednesday. A close above the T-line Today provides better insights into investment sentiment. The hard selloff of  Wednesday appears to be a profit-taking day versus a major reversal of the market trend. There is nothing yet in the candlestick charts to indicate the uptrend is continuing, but it does reveal that any selling is being offset by the strength of bullish sentiment. Even if this creates more sideways/slow uptrend in the overall market, it will allow for candlestick chart patterns to perform with good strength based upon the lack of any selling pressure in the market. This is why we recommend Trend Analysis.

Share

May 19th Daily Market Comments

Today’s positive trading is making the T-line relevant for the NASDAQ and the S&P 500, the Dow is currently testing the 50 Day Moving Average. The markets need to close near the high end of the range to indicate Wednesday’s big draw down was merely emotional selling versus a dramatic change of investor sentiment. A close near the top end of today’s trading range is important for illustrating a recovery versus a temporary bounce after a strong sell signal. Based upon the nature of the market for the past three months, a new flat trading range could be developing, as seen in the sideways movement of the markets after a big move one way or the other. This still allows for candlestick patterns to work effectively. Currently there are numerous J-hook Patterns bouncing back up from the T-line.

Share

May 18th Daily Market Comments

There is a better visual of RSI. That is the T-line. Watch how the individual charts that remained above the T-line in Yesterday’s sell off will likely have a much faster and stronger recovery than those that close well below the T-line Yesterday. Although the market is rebounding, be careful. It may merely be moving back up to the level it was trading prior to the final hour of panic selling. A close below the halfway point of Yesterday’s candle in the indexes would still illustrate the Bears are currently in control. The NASDAQ is currently the strongest index in today’s trading but still not yet back up to the halfway point of Yesterday’s candle. The indexes Gapping down from candlestick reversal signals demonstrates the strength of the selling. The downtrend need something dramatic to offset that message.

Share

May 17th Daily Market Comments

Knee-jerk reaction or a major change of investor sentiment? That question will be best answered on what type of candlestick formation is created in today’s trading. If the trading remains toward the lower end of today’s trading range, it now becomes a Bearish Best Friend Signal in the Dow, a Doji followed by a Gap Down. The NASDAQ would be a Hanging Man Signal followed by a Gap Down. If the markets trade near the top end of their trading range Today, creating indecisive/Hammer type signals, that would reveal Today’s profit-taking was merely profit-taking. The end of Today’s trading will provide more clarity as to which individual stock charts need to be closed based upon confirmed sell signals/weakness. Today is a perfect example on how prices/trends do not move based upon fundamentals, but move based upon investor sentiment. Obviously, the fundamentals of yesterday are no different than Today. It will be important to see how the markets close Today.

Share

May 16th Daily Market Comments

After opening positive this morning but now currently trading a little bit lower the market indexes still have not shown anything that  would show any change of investor sentiment. Unless there is a dramatic sell signal in the markets, as long as the indexes continue to trade above the T-line it has to be assumed the uptrend is in progress. This is allowing candlestick charts to produce big profits without any major worry of selling occurring in the market, i.e. SINA,NVDA,AMZN, VRX, AKBA.  The probabilities of Candlestick Pattern Breakouts remain very strong when there is nothing in the markets that show potential reversals.

Share

May 15th Daily Market Comments

Today’s positive trading affirms the lack of strength from the Bears, which would have been a viable prospect with the Dow and S&P 500 closing below the T-line a couple times last week. However, as can be seen in the Dow and S&P 500 candlestick formations, the Doji’s/Hammer Signals illustrated a lack of decisiveness. Today’s positive trading is currently bringing all the indexes backup above the T-line. The NASDAQ, trading in decisively each day last week, could never close below the T-line. The same prognosis remains, the uptrend remains in progress as long as the indexes continue to close above the T-line.

Share

May 12th Daily Market Comments

The Doji/Hammer type signals that formed in the Dow and S&P 500 Yesterday demonstrated that the Bulls have not left the market yet. But a lower open in those indexes today indicated the lack of any significant Bullish buying, keeping the overall market trend in a sideways/slightly downward trend. The term slightly downward is illustrated by the fact that numerous stocks are still trading positive, especially the biggies, AMZN. AAPL,NFLX, NVDA. These market indications continue to make a slowed downward drifting market the likely prospect until something major occurs to create new confidence coming out of Washington DC. Continue to concentrate on specific stock chart patterns, both on the long side and the short side. This is why we recommend Trend Analysis.

Share

May 11th Daily Market Comments

As illustrated in the Dow chart yesterday, a close below the T-line was an indication there might be some consolidation over the next few days. The NASDAQ is currently trading right at the T-line. The S&P 500 is trading below the T-line. Except for the NASDAQ, the other indexes are showing weakness/sell signals at the same levels the indexes topped out back in March. The main driving force of the markets are still predicated upon the expectations of things getting done in Washington DC. The market itself acts as a barometer as to what investor sentiment feels is being accomplished between our illustrious politicians. Expects some more sideways/consolidation.

Share
Trading in the Stock Market, Trading Options, Trading Futures, and Options on Futures, involves substantial risk of loss and is not suitable for all investors. Past Performance is not indicative of future results. CandlestickForum.com, Candlestick-Trading-Forum.com, StephenBigalow.com, and Candlestick Forum LLC do not recommend or endorse any specific trading system or method. We recommend that you research all trading systems, methods and market strategies thoroughly. Full Disclaimer here