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February 26th Daily Market Comments

The Dow has bounced up 400 points Today, the NASDAQ and the S&P 500 forming bullish Harami's. This may be indicating the end of the selling if today's trading closes as a bullish Harami in the indexes and they start trading positive tomorrow. However, the qualifying word is "if".   … [Read More...]

February 25th Daily Market Comments

No pics today. Why? When you see a huge move in the markets, what would be the expected result the next day? That is difficult to assess. There could be up bounce because of the overselling going into the close of the previous day. There could be panic selling continuing driving the price down. … [Read More...]

February 24th Market Direction

Today's selling makes a candlestick analysis process very simple to identify. The uptrend remains in progress until you see a candlestick sell signal and a close below the T line. Thursday provided an indecisive Doji type day in the indexes. What was required to maintain the uptrend was positive trading. When the markets opened lower, that was an immediate sign that the bears were taking control. That was more confirmed with the indexes closing below the T line. This is an extremely high probability result using those simple parameters. Anytime you see a candlestick sell signal and a close below the T line, the prospects for the uptrend continuing is extremely low, the prospects for more downside is extremely strong. That visual analysis allows the candlestick investor to immediately start taking profits and closing out long positions that are showing weakness. Adding short positions becomes a much better trading strategy. This is based upon simple probabilities. Anytime a price move closes below the T line, the downward trend probabilities improved dramatically. Bearish patterns can be easily recognized especially in sectors that are in the limelight. The China virus is implying the cruise lines are going to have much more difficulties making profits until the virus situation is resolved. Which cruise line stocks produced the best probable short positions? Simple candlestick patterns indicated which stocks in that sector has the strongest downside prospects. This is putting the stars in alignment! If you can see what the overall market trend is doing, candlestick scanning techniques can pinpoint which sectors have the highest probabilities of producing down trending moves. Using these simple techniques constantly puts your investment funds in the appropriate direction at the appropriate time.     We will conduct a "Members Only" chat session tonight at 8:00 pm EST. Good Investing, The Candlestick Forum Team … [Read More...]

February 21st Daily Market Comments

The direction of today's trading was easily anticipated by the formation of a Doji tape day yesterday. The Dow had come back up toward the top end of the trading range forming a Doji type day but it still closed below the T-line. It needed to open positive and trade positive to confirm that the T-line was still acting as a bullish support.   … [Read More...]

February 20th Daily Market Comments

The markets still do not demonstrate any selling pressure. Today's lower open, the Dow opening right on the T-line, appear to be normal morning profit-taking. Nothing has changed the trend sentiment. Candlestick patterns are still producing good profits, i.e. the fry pan bottom. … [Read More...]