May 4th Daily Market Comments

Today’s indecisive trading in the markets is probably the wait and see mode for the results of the healthcare vote. The market still illustrate the lack of any change of the current investor sentiment, an uptrending market. As long as the indexes remain above the T-line, albeit indecisively, the good trending/good pattern charts continue to move in the right direction. The magnitude of movement is somewhat diminished with the sideways mode of the market but still producing good profits. Our June Live Cattle trade, utilizing the classic pattern/J-hook pattern has produced huge profits with the price gapping up daily since the J-hook pattern breakout. This illustrates the simple strategy of candlestick analysis. It allows you to close out bad trades quickly and let your profitable trades run until you see a sell signal.

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