The market indexes are still revealing strong sector specific trading. Numerous short positions continue to work well. A good number of long positions are showing strong bullish candlestick patterns. The fry pan bottom pattern has been producing some good profitability. The fry pan bottom pattern produces multiple benefits. First, it produces an extremely high probability of the price direction and secondly, the magnitude of the move is usually excessively strong. Additionally, the pattern will continue to produce profitability even when the overall market conditions may have turned in the opposite direction.
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VTRS, ET, and IGT are producing strong fry pan bottom breakout situations. This puts the probabilities in your favor of having not only a positive trade, but a strong positive trade. Short positions continue to work, SPCE, RIOT, MARA, AMTX, plus a good number of other short positions. When the markets are not showing consistency as witnessed in the different directions the indexes have been moving, the Dow in one direction while the NASDAQ has been moving in another direction, profits can be made by having both long and short positions in the portfolio.
Take advantage of the information built into the candlestick forum flashcards. This allows you to identify and learn the strong profit signals and patterns quickly.
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The Candlestick Forum team

Today’s shooting star signal in the Dow and transportation index illustrates the bears starting to take control. A lower open in the Dow tomorrow would confirm the trend has reversed. This does not necessarily mean a full-scale reversal, but the prospects of profit-taking back to the T line. Add the fact that the NASDAQ is still in a strong downtrend and the S&P 500 sold off hard today makes the trading strategy-oriented more toward the short side.

Remember the common sense logic of the Japanese rice traders. Where do most people buy? Exuberantly at the top! This was indicated in the gap up shooting star/Doji’s in our recommendations of NUE and HZO. The gap up in the overbought area, away from the T line, was the alert for starting to take profits. Candlestick analysis provides common sense trading strategies. The probabilities are dramatically in your favor when you know what alerts to look for when taking profits. Short positions can be added to the portfolio upon weakness in the market indexes tomorrow.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

The Dow continues to trade higher, the NASDAQ is trading lower. This allows for simple candlestick scanning techniques to identify the strongest bullish charts as well as the strongest bearish charts. This allows for profiting in both long and short positions at the same time. The market is very sector-specific. The steel stocks, oil refining stocks, and mining stocks are producing good bullish trades. The high-tech/computer-related stocks have produced good short positions. The major advantage of candlestick analysis is being able to quickly identify which stock/sectors are moving in a specific direction. Currently, the NASDAQ has sold off to the first obvious support level, the 50 days moving average. This alerts the candlestick investor to watch more diligently to see if any buying starts coming in the short positions. Logically, buy signals would warrant taking profits in short positions and getting ready for bullish reversals.

Big profits can be made on bullish breakouts. When there is not any bearish sentiment in specific sectors of the market, any good news will stimulate stronger buying because of the lack of selling fears. This was illustrated in numerous stocks today,AVID, BCRX, HL that get exaggerated price moves because there is no bearish sentiment fears. Take advantage of the candlestick signal breakouts during these market conditions. Many strong price moves are identified early in the Candlestick Forum chat room. This provides a valuable source of getting into strong trades early when many eyes are looking for the same pattern breakouts following candlestick signals.

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

Good investing,

The Candlestick Forum team