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May 13th Market Wrap-Up

The market indexes are still revealing strong sector specific trading. Numerous short positions continue to work well. A good number of long positions are showing strong bullish candlestick patterns. The fry pan bottom pattern has been producing some good profitability. The fry pan bottom pattern produces multiple benefits. First, it produces an extremely high probability of the price direction and secondly, the magnitude of the move is usually excessively strong. Additionally, the pattern will continue to produce profitability even when the overall market conditions may have turned in the opposite direction. https://youtu.be/ezH2zL5UAzM VTRS, ET, and IGT are producing strong fry pan bottom breakout situations. This puts the probabilities in your favor of having not only a positive trade, but a strong positive trade. Short positions continue to work, SPCE, RIOT, MARA, AMTX, plus a good number of other short positions. When the markets are not showing consistency as witnessed in the different directions the indexes have been moving, the Dow in one direction while the NASDAQ has been moving in another direction, profits can be made by having both long and short positions in the portfolio. Take advantage of the information built into the candlestick forum flashcards. This allows you to identify and learn the strong profit signals and patterns quickly. https://store.candlestickforum.com/collections/flash-cards-posters-and-mouse-pads/products/candlestick-forum-flash-cards   Chat session tonight at 8 PM ET. Click here to register. Good investing, The Candlestick Forum team … [Read More...]

May 12th Daily Market Comments

Although the NASDAQ traded positive after it opened yesterday, it did not do a reversal signal. Obviously today's strong selling indicates the NASDAQ remains in a downtrend as well as the other indexes coming off shooting star signals. The shorts are working very well. Any long positions require very compelling bullish charts to stay long.ie NMRD, ET.   … [Read More...]

May 11th Daily Market Comments

The ShootingStar failure of the Dow at the upper trend channel resistance level produced good probabilities that a reversal could be in effect. The magnitude of today's selling is the reflection of a change of investor sentiment that had already been in progress in the NASDAQ. Unless long positions are showing good strength, the Long's should be closed and more short positions added.   … [Read More...]

Shooting Star Reversal Signal in the Dow

Today's shooting star signal in the Dow and transportation index illustrates the bears starting to take control. A lower open in the Dow tomorrow would confirm the trend has reversed. This does not necessarily mean a full-scale reversal, but the prospects of profit-taking back to the T line. Add the fact that the NASDAQ is still in a strong downtrend and the S&P 500 sold off hard today makes the trading strategy-oriented more toward the short side. Remember the common sense logic of the Japanese rice traders. Where do most people buy? Exuberantly at the top! This was indicated in the gap up shooting star/Doji's in our recommendations of NUE and HZO. The gap up in the overbought area, away from the T line, was the alert for starting to take profits. Candlestick analysis provides common sense trading strategies. The probabilities are dramatically in your favor when you know what alerts to look for when taking profits. Short positions can be added to the portfolio upon weakness in the market indexes tomorrow. Chat session tonight at 8 PM ET. Good investing, The Candlestick Forum team … [Read More...]

May 10th Daily Market Comments

Although the Dow, S&P 500, and the transportation index continue to trade positive, the failure of the NASDAQ to close above the T line on Friday produced a warning. The nature of the market remains the same, the uptrend remains in progress but the high tech stocks of the NASDAQ are still being sold off. The strategy remains the same, have both long and short positions in place.   … [Read More...]