Featured Posts

December 9th Market Direction

The nature of the overall market trend can sometimes be confusing based upon the day to day trading. Today's trading formed a bearish Harami, giving the possible indication the buying of Friday had come to an end. Fortunately, for the candlestick investor, the addition of the T-line into the analysis allows for better assessments as to what the overall investor sentiment is doing. The fact that the market indexes continue to trade above the T-line dramatically improves the probabilities the bullish sentiment of the market is back in progress. The combination of candlestick signals and the use of the T-line, the T-line being a natural support and resistance level of human nature, produces a very powerful and accurate evaluation of what a market/price trend will do. The use of the T-line in conjunction with candlestick signals dramatically reduces the prospects of being whipsawed in and out of a position. A major advantage of candlestick analysis is being able to identify which stocks/sectors are working the strongest or weakest during a market trend. As illustrated in today's trading, the charts/ETFs related to the biotech sector illustrated money coming into that sector. This allows for pinpointing the strong stocks in that sector. With the supply of over 7800 stock trading entities, candlestick charting techniques allow for identifying very quickly which stocks have the best upside potential. Even when a market trend is in an upward direction, Candlestick investors gain a huge advantages by surpassing merely uptrending stocks during an uptrend but identifying which stocks have the most strongest upside potential. Currently, the assumption is that the market is back in an uptrend now that is trading above the T line. Simple candlestick scanning techniques reveal the biotech sector is gaining inordinate strength. Logic dictates having a few biotech positions in the portfolio. We will conduct a “Members Only” chat session tonight at 8:00 pm EST. Good … [Read More...]

December 9th Daily Market Comments

Although the Dow is trading slightly lower, the other indexes are trading slightly positive and continuing to trade above the T-line. Today's trading does not show any major change of investor sentiment in the overall market. This makes each individual chart analysis the important criteria. Be predominantly long but always have safety stop's in place, i.e. DTIL. The caustic political rhetoric of Washington DC has not put a damper on investor sentiment. This makes the Japanese Rice traders professing of letting the market tell you what the market is doing very poignant as investor sentiment dismisses Washington's political atmosphere. Stay predominantly long but continue to have safety stop's in place in case of unexpected news. … [Read More...]

December 6th Daily Market Comments

The jobs report provided the bullish sentiment returns of the markets illustrated by the indexes gapping up, producing trend kicker signals above the T-line. The basic analysis will be simple, if the markets close above the T-line Today, investor sentiment has turned back positive continuing the uptrend in the market. Obviously, portfolios should now be oriented toward the long side. Any short positions should still have compelling weakness, staying below the T-line. … [Read More...]

December 5th Market Wrap-Up

The indecisive trend of the markets is more clearly revealed because of the trading formations on a daily basis. Adding the factor of the market indexes trading indecisively below the T line provides a better probability trading strategy for investors. Without a definite direction of the market, the portfolio strategy becomes more oriented toward having both long and short positions in the portfolio. This strategy can be maintained until there is a definite trend indication, such as a bullish candlestick signal and a close backup above the T line, showing the bullish uptrend is back in progress. Fortunately, with simple candlestick scanning techniques, it is very easy to identify strong bullish signals and patterns as well as strong bearish signals and patterns. Logic dictates that no matter which direction the market is moving or not moving, candlestick scanning techniques will always find more bullish and bearish trade set ups than most investors will be able to handle. This produces the opportunity for not only finding good trades, but being able to cultivate the best of those good trades. Very simple trend analysis techniques allows investors to participate in price movements based upon candlestick signals confirming an existing trend. For example, shorting BYND is based upon recognizing the downtrend of this stock price has been in progress for months. Additionally, witnessing candlestick sell signals at obvious resistance levels reveals investor sentiment is still continuing the downtrend. The same is true for analyzing bullish trends. The T line becomes a very important factor for recognizing the signals/patterns that are going to continue an uptrending move. Chat session tonight at 8 PM ET. Click here to register. Good Investing, The Candlestick Forum Team   … [Read More...]

December 4th Daily Market Comments

Although the market indexes are trading positive Today, note that the NASDAQ and the S&P 500 have resisted and sold back off when it hit the T-line. Until the market indexes can show a conclusive close above the T-line, the market direction is still in question. … [Read More...]