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September 20th Market Direction

The market indexes not showing any dramatic force one way or the other but the underlying factor of the indexes continuing to trade above the T-line at least provides a greater probability prospect that the uptrend remains in progress. This analysis may not be anything more than analyzing the lack of any great selling pressure in the market, allowing for specific bullish candlestick chart patterns to continue working. Numerous J-hook patterns i.e.DOCU continue to perform, as well as frypan bottom patterns working. … [Read More...]

September 19th Market Wrap-Up

Today's indecisive trading in the markets continues to demonstrate one important trend factor, the indexes are still trading above the T line. There is prospects of a J-hook pattern forming in each of the indexes. This would have very relevant ramifications for the next trend move. If wave three equates to wave one of a J-hook pattern, that means the market indexes will be moving to all-time highs. Currently there is no major change of investor sentiment as long as the indexes continue to trade above the T line without any candlestick reversal signals. This analysis allows investors to maintain positions on trading days that normally make most investors nervous. Because human nature works the same way time after time, utilizing the simple trend indicators in conjunction with candlestick signals and patterns keeps an investor from being whipsawed in and out of positions. The J-hook pattern and the frypan bottom pattern have produced trade set ups that have high probabilities of not only moving in the correct direction but also with a strong price move. When a candlestick pattern is developing while using the T line as a support level, it adds that much more credibility to the pattern expectations. This could be seen in a number of stock positions in today's trading. There are two major benefits of utilizing candlestick patterns. First, the probabilities of a trade moving in the expected direction is extremely high. This is based upon hundreds of years of witnessing what occurs in human nature. Secondly, the results of patterns usually create much stronger returns than merely uptrending stocks during an uptrending market. Having this information allows an investor to dramatically improve the profitability of their portfolio by not only being in the right place at the right time, but also being in very strong price moves at the right time. Chat session tonight at 8 PM ET with Guest Speaker Lane Mendelshon. Click here to register. Good Investing, The Candlestick … [Read More...]

September 19th Daily Market Comments

The Dow and S&P closed positive yesterday, but more importantly all the indexes close backup near the high end of their trading range, staying above the T-line. Today's positive trading if maintained going into the close is creating J-hook patterns in all the indexes. This is relevant with the calculation that wave three be in the same magnitude as wave one of the J-hook would put the indexes into new all-time high territory. The important factor is the trading above the T-line demonstrates bullish sentiment is still in control of the market trend. Stay predominantly long, any short positions should be watched more closely with the indexes continuing higher.   … [Read More...]

September 18th Daily Market Comments

The markets are in a holding pattern, waiting to see what the feds are going to do about interest rates. Unfortunately, until the meeting the markets are probably going to be trading very lethargically. Continue to hold long and short positions that are maintaining their trends above or below the T-line. The indexes continue to trade above the T-line, implying the uptrend remains in progress. Obviously the markets was so their reaction to whatever the feds announce about interest rates Today.   … [Read More...]

September 17th Daily Market Comments

Today's trading continues to illustrate indecisive consolidation. The Dow trading lower but above where it opened, the S&P 500 trading absolutely flat, and the NASDAQ trading relatively flat since the open. The big mover is crude oil with Saudi Arabia announcing they should be back in full production in just a matter of a couple weeks. The uptrend is in a consolidation stage but still trading above the T-line, making each individual stock chart the main criteria. Stay predominantly long but have a few short positions in the portfolio.   … [Read More...]