July 10th Daily Market Comments

The sideways mode of the market is still in process. The Dow and S&P 500 trading positive while the NASDAQ is trading slightly lower. However, the NASDAQ is currently forming a second hanging man signal. This warrants watching for any selling from this level, profit-taking in that index. Stay predominately long. Normally, would expect slow trading on a Friday afternoon during the summertime with everybody heading for the beach, but most beaches are still closed. New Jersey beaches, all you might do Today is some windsurfing.

 

July 9th Market Wrap-Up

Today’s weakness in the Dow reveals the sideways mode of the market after it resisted at the 200-day moving average. However, the NASDAQ continues to trade higher. This combination indicates there is no major change of the overall market trend, merely shifting of funds from sectors to sectors. Big profits are being made utilizing the pattern breakouts. The slow curve breakout of ALT produced a 52% gain in the stock and with much greater returns in the calls. This is not to brag about being in a big price move trade, it is basically illustrating how utilizing the information built into candlestick patterns allows investors to be in the correct trade right at the ultimate entry points.

Utilizing the patterns provided by candlestick charts allows an investor to identify the exact time to get into a trade, not having to wait around to see if that trade was going to work or not. Identifying the breakouts instigates adding a position right at the appropriate time. Numerous stocks have broken out of patterns this past week, producing excellent profitable trades. Adding the T-line as an indicator creates a trading strategy that takes the emotions out of when to close out a trade. A bullish price move can be maintained as long as there is not a close back below the T-line. These market conditions enhance the prospects of big bullish price moves when there is a lack of concern of bearish sentiment possibly reversing the markets. Currently, with the market trend more of a sideways mode, identifying bullish candlestick pattern breakouts are further enhanced.

 

Chat session tonight at 8 PM ET. Click here to register.

Good investing,

The Candlestick Forum team.

July 9th Daily Market Comments

Political rhetoric still affecting the market trend. The Dow is back below the T-line currently selling off over 400 points. The NASDAQ is trading lower but still trading above the resistance level and above the T-line. Although the markets are selling off, there is still a good percentage of green on the watchlists. Continue to use the T-line as your ultimate indicator.

July 7th Daily Market Comments

Although the Dow is showing some resistance at the 200-day moving average, the NASDAQ continues its steady uptrend. This combination reveals there is no major change of investor sentiment in the overall market trend. The big names continue to trade higher,TSLA, AAPL, NVDA. With the NASDAQ trading positive and the S&P trading lower but above where it opened, and all the indexes currently trading above the T-line, Today’s trading merely reveals profit-taking in specific sectors. Stay long.

July 6th Market Direction

With the market indexes continuing to trade positive, it confirms the uptrend remains in progress as long as the indexes continue to trade above the T-line. The strongest index was the NASDAQ. It actually gapped up and opened at a resistance level and traded positive from there. Economic indicators, such as the manufacturing index was up strong from May to June. This information appears to be overriding the increase in Corona virus numbers. Let the market tell you what the market is doing, the Japanese rice traders professing. We may not know what is producing the bullish sentiment, but candlestick investors do not need to know. Candlestick investors have the benefit of visually analyzing what everybody else’s decision is doing to the market trends. Currently there does not appear to be any exuberant buying in the market. However, TSLA and AMZN have been producing huge profits and are showing signs of exuberance. Be ready to take profits in price moves that are moving too far too fast.

J-hook patterns have produced significant profits. NIO and NIU J-hook patterns produce the prospects of much more upside. The candlestick patterns have produced consistent profits even as the market indexes oscillate. Pattern breakouts are indicating which sectors are now showing new strength. The chemical companies are showing good pattern breakouts ie SQM. CZZ has a very strong chart, showing a kicker signal breakout of a fry pan bottom through the 200 day moving average. This is what we call convergence analysis or 2+2 analysis, the more factors you can put into a visual analysis showing improved probabilities with multiple bullish indications merely improves the probabilities of not only being in a correct trade at the correct time, but a very strong price move.

 

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

July 6th Daily Market Comments

The Dow is nudging the 200 day moving average again. A breakout through that level would imply much more upside in this market. The NASDAQ gapped up and opened at a resistance level and continue to trade higher. Economic indicators continue to show bullish sentiment. Although the coronavirus numbers have escalated, it appears as if investors are looking past those numbers, expecting better economic environments in the near future. Stay long as long as the indexes continue to trade above the T-line.

Weekly Watch list July 6th – July 10th, 2020

The rhetorical question, why is the market moving up when the number of virus cases appears to be skyrocketing? The candlestick investor does not have to know the answer to that question. The candlestick investor is merely interested in what everybody else’s investment decision is doing. Apparently investors are looking past the virus crisis or the escalating virus reports is not the relevant number being evaluated, the number of deaths reducing may be the primary factor. Remember, investors are putting their money on the line based upon what they feel the prospects are for the future. That often means disregarding or taking into consideration what current situations are demonstrating.

A major underlying strength of this market trend is its lack of excessive/exuberant buying. The NASDAQ is trading at an all-time high but it was a long steady recovery from the March bottom. The Dow and S&P 500 have shown slow steady uptrends, not revealing any excessive buying. These market conditions have allowed for the identification of candlestick signals and patterns that produce high probability trades setups. The pattern breakouts also imply much stronger price moves than merely up trending stocks during a slow up-trending market. Watch the chemicals, Internet servers, and education and training stocks this week. They have produced observable candlestick breakout patterns.

07/09/2020 Stock Chat with Stephen Bigalow

To Download recorded sessions;

To download click on the link below, once on the video page you will right-click on the video then hit “Save video as” to save to your files.

Stock Chat – Thursday 07/09/20

 

At the end of the webinar Steve announced his upcoming Top Patterns Working in Today’s Market Conditions” event, which he’ll present on Saturday, July 25th.


This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.

 

Click here for more information.

 

July 2nd Market Wrap-Up

Good employment numbers, bad virus numbers, why is the market going up? We do not need to have that ability to figure out why the market is going up. Candlestick analysis merely evaluates what everybody decisions are for either buying or selling. Investing is a forward-looking process. The graphics of the candlestick charts merely reveal that investor sentiment is being influenced by what investors are anticipating for the future. Today’s events and/or facts have been built into the market. Investor decisions are based upon what the expectations are for economic future results. Currently, the market indexes are continuing to trade above the T line. Historic probability-factors indicate that as long prices/indexes trade above the T line, the probabilities are extremely strong the uptrend remains in progress.


Having the ability to analyze the overall market trend allows the candlestick investor to take advantage of potentially strong pattern breakout price moves. The magnitude of these moves are enhanced when knowing the overall market trend is moving in the same direction. Common sense dictates bullish charts are going to have greater bullish strength when the overall market is trading positive. Bearish candlestick price patterns are going to act with more force to the downside when the market, in general, is heading to the downside. This may seem like oversimplified logic, but a major benefit of candlestick analysis is the fact that the chart patterns are created by common sense aspects of what human nature normally does. Currently, J-hook patterns and fry pan bottom patterns continue to work exceptionally well in these market conditions. Our recommendations of APPS, VIVO, ZM and numerous Steady Eddie trending stocks continue to produce good profitability because of a simple trend indicator, they are remaining above the T line.

 

Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.

Good investing,

The Candlestick Forum team.

July 1st Daily Market Comments

The market indexes continue to trade above the T-line with the NASDAQ showing the most consistent strength. A number of the big stocks,AMZN, AAPL, NVDA formed MorningStar signals yesterday at the T-line area. This illustrates that bullish sentiment is still controlling the market. Stay predominately long.