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October 18th Daily Market Comments

Today's consolidation, not unexpected, was made more evident with the NASDAQ opening yesterday right at the resistance level and selling off, creating a small hanging man signal. The projection of merely consolidation today is based upon the indecisive signals created over the past couple of trading days but the stochastics are still not quite into the overbought area. … [Read More...]

October 17th Market Wrap-Up

The continued uptrend of the markets are still a result of the bullish flutter kicker of last week. The strength of that signal allows the candlestick investor to anticipate that the top of the wedge formation is still the likely target. That allows for the expectation of additional upside for at least the next day or two. The candlestick investor also has the advantage of being able to recognize what is occurring in investor sentiment once a major resistance level is hit. Indecisive trading at that level, such as Doji's or shooting stars, indicate a much higher probability that it is time to take profits at those levels. A breakthrough of the resistance level with a good solid candle indicates the lack of any concern for that resistance level anymore, implying more upside. Because each candlestick signal and pattern produce expected results, a trend is much more easily analyzed knowing what the nature of each signal or pattern represents. Utilizing the information built into a pattern produces much higher probabilities of participating in a breakout price move at the appropriate time. As illustrated in our recommendation on WLH, the gap up through the resistance level confirmed the frypan bottom breakout. Being able to visually recognize today's trading was an indecisive/Doji type day produces an extremely high probability profitable trade entry based upon a positive open tomorrow. A positive open, utilizing the Doji rule, would produce a high probability of more upside. This would create a bullish Doji sandwich breakout. When analyzing where the breakout should occur and then seeing a strong candlestick signal that would confirm a bullish breakout, the candlestick investor will not only have high probabilities of a correct trade but the additional benefit of an extremely strong price move. Combining candlestick signals with candlestick patterns produces the opportunity to participate in huge price movements based upon the results of investor … [Read More...]

October 17th Daily Market Comments

Today's positive trading is being created with a slow steady buying pressure, demonstrating more calculated buying decisions. This is allowing for numerous breakout patterns to perform i.e. WLK. The upper wedge resistance level for the indexes continues to be the likely target. Stay predominantly long with the expectation of another day or two to the upside approaching the upper resistance level. The NASDAQ actually opened at the resistance level and has backed off. It will be important to see if the NASDAQ stay relatively close to the resistance level while the other indexes are catching up. Always be careful of tweets. Put safety stop's at levels that prices should not be trading back down through. … [Read More...]

October 16th Daily Market Comments

Although the market indexes are trading slightly lower Today, note that they are trading above where they opened. This implies merely profit-taking early in the day with the expectation that the uptrend will continue later in the day. An additional bullish indicator is witnessing a large number of stocks still trading positive. The projection remains the same, look for the indexes to come up and test the top of the wedge channel. … [Read More...]

October 15th Daily Market Comments

The bullish flutter kicker signal of last week is still in effect, trying to push the indexes backup toward the top of the wedge channel. Numerous signals, such as the double Doji set up, is confirming good breakout patterns, i.e.NVDA. Continue to stay long with the ultimate target being the top of the wedge channel/resistance level. Making hay while the sun shines is dramatically enhanced when witnessing strong candlestick signals at a bottom of a channel, with the likely target the top of the channel.   … [Read More...]