Tesla provided a very strong bullish signal today, the bobble breakout. This makes Tesla a strong, bullish candidate for more upside. However, it also may have skewed the NASDAQ, demonstrating good strength well many of the underlying stocks in that index may not have been a strong. Currently, the markets are in a sideways wedge. This indecisive sideways trading likely reflects the indecision going into the CPI and PPI numbers. Also the retail sector report will be out at the end of this week. As illustrated in numerous retail stocks, they are in a downtrend. These market conditions allow for identifying good strong bullish trades and good bearish solid trades. Mark your calendars! September 23 will be a full day of training on utilizing strong entry points that allow for the improved probabilities of a price move confirming. This works both for bullish and bearish trade setups. Click here for more information

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Good Investing,

Stephen Bigalow

Candlestick reversal signals at obvious resistance levels produced a strong indication the bullish sentiment had reversed. Currently, the Dow, NASDAQ and S&P 500 are all trading below the T line. The Dow and S&P 500 are in a wedge formation, indicating the lack of any major direction. The NASDAQ, trading below the T line produces a strong probability that a down-trending trend channel is in progress. The downtrend in the markets make shorting stocks or sitting in cash the high probability trading strategy. However, there are still bullish chart patterns producing profits. Utilize the T line as your last criterion. The strength of the crude oil stocks was based upon the strength in crude oil over the past few weeks. However, crude oil produced a bearish Harami today, indicating the buying had stopped. Numerous crude oil stock charts have now shown sell signals, making this a good place to take profits. The retail sector is showing numerous bearish J-hook patterns. Go with the flow, utilize the bearish J-hook patterns to anticipate wave three to the downside.

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Good Investing,

Stephen Bigalow

The markets remain in a consolidation mode, as revealed with the Dow selling off, but the NASDAQ and the S&P 500 continue to show bullish strength. This produces market conditions that allow the candlestick investor to identify specific sectors acting bullish or bearish. The oil stocks are serving strong, and crude oil continues to trade positively into the mid-80s. Additional confirmation is the fact that numerous oil stock charts are producing the same pattern, the J-hook pattern. On the other spectrum, the bearish J-hook patterns appear in the retail stocks. This allows candlestick investors to take advantage of long and short positions during market consolidation. Analyzing each chart dramatically improves the probability of being in the right positions/trends at the right time. The one basic premise of candlestick analysis is that it is the graphic depiction of what occurs in human nature time after time. Learning the 12 major signals will greatly improve your probability of being in a profitable trade.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow