Be careful, the expected bounce today is providing a lot of positive trading in stocks but many stocks are not moving much from where they opened or are trading below where they opened albeit they are still trading positive. Short positions that have been showing bullish signals and are confirming today should be covered, but expect a couple days of choppiness in the markets before any major trend, either bullish or bearish will continue from here. Any trades placed over the next couple trading days should be done so with the idea that if things turn the opposite direction, go back to cash quickly.
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The T-line remains a relevant factor when analyzing the indexes. The indecisive trading yesterday, although buying brought the indexes backup toward the top of their trading range, the T-line still needed to be addressed. Today's lower trading continues to make the T-line a resistance level. Investor sentiment still needs time to recover from the hard selling of last week. Indecision still remains. If you cannot find compelling trade set ups, sit patiently in cash for a few more days. … [Read More...]
As anticipated, after the large bullish move in the markets yesterday, profit-taking is in progress. Is Today's trading profit-taking or a failure of the uptrend to start? A very easy trading strategy can be put into place. Today, watch the 10 minute chart. If there becomes an area where the movement of the markets start showing support on the 10 minute chart, aggressive buyers can start stepping in with the anticipation that yesterday's bullish candlestick signals are still in effect. It will be important to see where the indexes close Today. Profit-taking would be indicated with the indexes closing near the high end of their trading range.
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Today's positive trading is selling gap ups in the S&P 500 and the NASDAQ. It is also confirming an inverted hammer signal in the Dow. Provided the trading stays strongly positive today, this will provide more healing of investor sentiment, adding to the prospects that this is putting the markets in a basing area. Long positions can be added but with the caveat that the markets need to close very bullish today. Bullish flutter kicker's are acting well. Take advantage of the strong candlestick reversal signals, providing bigger profit opportunities if this market is going to reverse/rebound. … [Read More...]
This basing action allows for identifying which individual stocks are trading with a new direction based upon identifying very strong reversal signals. Knowing what the top ranked candlestick signals illustrate allows investors to take advantage of price movements well before the rest of the market enters those trades i.e. AMCX and DERM bullish flutter kicker, ACOR McMuffin,TLRY wedge breakout. The analysis of the ETFs, such as NUGT, allows for identifying strong buying in the gold sector. Although the markets remain in an indecisive consolidation stage, there are stocks/sectors that continue to produce good profits. The biggies, AMZN, AAAPL, NVDA etc. are not yet showing any reversal. … [Read More...]
October 19th Daily Market Comments
Be careful, the expected bounce today is providing a lot of positive trading in stocks but many stocks are not moving much from where they opened or are trading below where they opened albeit they are still trading positive. Short positions that have been showing bullish signals and are confirming today should be covered, but expect a couple days of choppiness in the markets before any major trend, either bullish or bearish will continue from here. Any trades placed over the next couple trading days should be done so with the idea that if things turn the opposite direction, go back to cash quickly. … [Read More...]