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June 24th Market Direction

The visual graphics of candlestick analysis allow investors to much more accurately assess where markets may be continuing an uptrend or getting ready to top out. This is evident in the Dow with the indecisive candlestick signals, a shooting star signal and a Doji occurring in the overbought area. Additionally, it merely takes visual analysis to recognize this indecisive trading, potentially a reversal in the trend, is occurring at the exact same levels the markets topped out about a month and a half ago. The nature of each candlestick signal allows for the analysis of what type of investor sentiment is occurring at observable potential reversal areas. Is the market ready to top out? The alert becomes much more apparent when recognizing where indecisive trading is occurring. Having the visual ability to analyze whether the market is still capable of additional uptrend or if it's about ready to pull back as a reversal or a profit-taking area, allows for the appropriate trade positioning in the portfolio. Any signs of weakness in the markets in this area creates a trading strategy that dramatically improves profit probabilities. If the market appears to be ready to back off, any new positions would be more oriented toward shorting. It would also create the analyzing of existing long positions with much more scrutiny, be in ready to take profits on signs of reversal signals. When these market conditions exist, the candlestick investor has a great advantage of being able to scan for the most profitable trades, whether bullish or bearish. Keep in mind, prices do not move based upon fundamentals, prices move based upon the perception of fundamentals. This is clearly identified using candlestick analysis.   We will conduct a "Members Only" chat session tonight at 8:00 pm EST. Good Investing, The Candlestick Forum Team … [Read More...]

June 24th Daily Market Comments

Are we in the summer doldrums? The Dow is trading higher, the transportation index is trading lower, the NASDAQ and S&P 500 are trading flat. There may be an advantage to the markets in Trump tweets. It keeps things interesting during the summer doldrums. Currently the indexes are in an uptrend, trading above the T line. Wave three of J-hook patterns are still in progress. The lack of continuity between the indexes indicate specific stocks/sectors need to be evaluated separate from the overall market trend. Gold stocks are still acting well. Biotech stocks are holding up. Stay predominantly long but be more scrutinizing as to which sectors are acting the strongest. … [Read More...]

June 21st Daily Market Comments

After a slow start, continuing to indicate no major change of investor sentiment in the markets, bullish pressure is still in progress. Wave three of the J-hook patterns that have developed in the indexes are still confirming. Stay with the trend, stay long as long as there is not a severe sell signal in the indexes. What is causing the strong bullish trend? We do not need to analyze that. All we need to analyze is what the charts are telling us. … [Read More...]

June 20th Daily Market Comments

The J-hook patterns that formed in the indexes are confirming today. The Dow up 200 points illustrates wave three is in progress. Expect backing and filling but as long as the indexes stay above the T-line, as well as the 3T-line, anticipate more confidence coming into the markets. Gold stocks and oil stocks are reacting well to the bullish moves in those futures. As long as there is not evidence of severe selling, bullish investor sentiment is still in control of the market trend. … [Read More...]

June 20th Market Wrap-Up

What dramatically improves your profitability? Knowing which direction the overall market is moving. That not only allows investors to move immediately when the candlestick charts on individual stocks are corresponding with the overall market direction, but it also provides a logical format for being in profit potential positions when the market does move favorably. Today, the premarket futures indicated a very strong bullish open. Numerous stocks gapped up, further confirming bullish patterns. However, the profitability of getting into bullish confirming trends was modified by having to pay higher prices the trades. With candlestick analysis, numerous position would have already been established based upon visible candlestick patterns, allowing for participating in the profitable gap up as well as further upside. A major advantage of candlestick analysis is the identification of when reversals are just starting. This produces better profitability obviously, for already being in positions as they are moving in the appropriate direction, especially when prices are gapping up. The major indexes had been creating bullish J-hook patterns. Those patterns alone indicated there was going to be more upside. This produced a much more comfortable trading strategy for buying good bullish individual stock charts knowing that the overall market trend was in a bullish move. The J-hook pattern has been the predominant profitable trade set up. When the major indexes are producing J-hook patterns, it is logical that numerous individual stock charts will also be producing J-hook patterns. The advantage of utilizing candlestick patterns for a trading strategy is that all stocks will usually rise in a rising market. Candlestick pattern breakouts will produce much greater profits because of the excessive price moves expected from human nature as a pattern performs.   Chat session tonight at 8 PM ET with Guest speaker Dave Aquino. Click here to register. Good … [Read More...]