March 1st Daily Market Comments

Be careful! Although the indexes are trading very bullish today, the Dow is moving up without a reversal signal. The NASDAQ is currently hovering at the T line. Unfortunately, for analyzing the overall market trend, today’s positive trading is putting the index charts back into the indecisive trading mode. This is making the analysis of each individual stock/sector as the top criteria. Be alert for selling before the end of the day.

 

February 26th Daily Market Comments

 

Morning Member Comments

Yesterday’s strong selling was a major reversal signal in investor sentiment. Although the indexes opened higher Today, it had to be viewed with skepticism as merely a bounce after yesterday’s hard selling. Add short positions to the portfolio, a downtrend is likely to be in progress until there is an observable bullish reversal signal.

CGIX should not be bought.

CAN can be shorted on Today’s weakness with the first target filling the gap.

FUBO can be shorted on Today’s weakness.

CRUS can be shorted with the anticipation of wave three moving prices down to the $70 level.

The magnitude of yesterday’s selling illustrated the major change of investor sentiment, this is what candlestick analysis indicates. Have the portfolio oriented toward the short side until there are buy signals and a close back up above the T line in the indexes. Mark your calendars, March 6 will be a mini training on “power trades”, utilizing convergence analysis to dramatically improve the probabilities of being in a correct trade.

February 25th, 2021 Stock Chat with Stephen Bigalow

To Download recorded sessions;

In order to download click on the link below, once on the video page you will click on the three dotted vertical line located at the bottom right hand side of the video player and click on “download” to save to your files.

Stock Chat – Thursday 02/25/21

At the end of the webinar, Steve announced his upcoming “Identify Power Trades” event, which he’ll present on Saturday, February 20th.

This 90-minute training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.

Click here for more information.

February 25th Market Wrap-Up

The candlestick charts would have put you in good short trades over the past few weeks. Yesterday’s bullish trading in the Dow, breaking out into new high territory, acted as an alert. It had the possibility of being the last gasp buying in an uptrend. Although the Dow was trading above the T line, the NASDAQ and the S&P 500 had been trading below the T line. Our chat room morning comment warning was to be careful of strong selling in the Dow, after yesterday’s strong breakout buying at the top. Today’s selling gave back all of yesterday’s bullish trading and then some in all the indexes. This is a very powerful candlestick reversal indication. The NASDAQ and the S&P 500 implemented the strategy of having both long and short positions in the portfolio. It was evident there were as many more good short trades developing than long trades. This allows for a very simple trading strategy for the past few weeks. Add short positions to the portfolio and start closing out long positions that were showing sell signals and/or weakness in overbought areas.https://youtu.be/x7oSqYFpRN8

Candlestick analysis alerts an investor of changes of investor sentiment. Analyzing what the candlestick signals and patterns are revealing in the market indexes overcomes most investors bullish enthusiasm. Do what the charts are telling you is occurring in investor sentiment and you’ll have your trade positions in the correct direction an extremely high percentage of the time. This is based upon a very simple premise. The Japanese rice traders have identified when investor sentiment is changing. Use this to your advantage. Join us tonight in our chat session identifying the common sense applications of stop losses utilizing candlestick analysis.

 

 

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

Good investing,

The Candlestick Forum team

February 25th Daily Market Comments

Profit-taking is expected after yesterday’s big up day. The Dow and transportation index continues to trade above the T-line. The NASDAQ and the S&P 500 are trading in a sideways mode. The trading strategy remains the same, have both long and short positions in the portfolio. The stimulus package appears to be the major bullish prospect for the market indexes. Obviously the sectors that are going to benefit from stimulus bailout continue to act well while other sectors are being sold. The T line remains the ultimate trend indicator after candlestick bullish or bearish patterns.

 

February 24th Daily Market Comments

The Dow continues to trade above the T-line, actually setting up a slow curve potential breakout to the upside, as long as it remains above the T line. The Dow and the transportation index up, the NASDAQ trying to show support at the 50 day moving average. The continued trading above the T line in the Dow demonstrates the lack of any selling pressure although it has revealed a lot of indecision over the past three weeks. The T line rule remains in effect, the Dow will remain in an uptrend as long as it can’t close below the T line. Note that many of the bullish trading stocks use the T line as support over the past few days when the markets are selling off. Keep safety stops in place.

 

February 23rd Daily Marker Comments

The T-line rule is simple! As long as prices close below the T-line, the probabilities are dramatically strong a downtrend will be in progress. That is obviously being seen in the NASDAQ and S&P 500 today. The NASDAQ is currently trying to support at the first likely target, the 200 day moving average. The T line works just as well for indicating the direction of a price move as it does as a support level. Note the number of stocks that have come down today and hit the T line, then bounced back up. This provides good evidence that their uptrends are likely to remain in progress. The Dow continues to trade the most bullish of the indexes, indicating money is moving toward the institutional big Cap quality stocks.

 

February 22nd Market Direction

The markets revealed the change of investor sentiment over the past two weeks of trading. Note the number of Doji’s that occurred in the Dow. Also note the resistance level the Dow could not seem to get up through. At the same time, the NASDAQ had gap down through the T line. Remember the T line rule – a close below the T line dramatically improves the probabilities the bears are in control. When seeing a close below the T line, the portfolio positioning strategy should be changing immediately. Start taking profits on long positions that are showing potential reversal signals and simple scanning techniques will start identifying which positions to short.

PYPL had formed a bearish left/right combo that closed right on the T line on Friday. This was after Doji signals revealed a reversal was coming. This provided a very simple shorting strategy. The bearish left right combo is an extremely high probability bearish signal. A lower open would confirm the signal as well as illustrate the T line was not going to act as support anymore. Applying the candlestick simple logic allows an investor to be in the right positions at the right time with a high degree of accuracy. Join us Thursday night for our free chat session on when to take profits.

 

 

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team

February 22nd Daily Market Comments

The market indexes continue to reveal indecisive trading in the markets. The Dow is trading flat after opening lower. The transportation index is staying mildly positive, but the NASDAQ and S&P 500 are selling off significantly. After two weeks of indecisive trading, numerous Doji’s, the indication that investor sentiment was starting to wane is becoming more evident.

February 19th Daily Market Comments

Today’s positive trading is forming potential MorningStar signals in the NASDAQ and the S&P 500. It is also producing a methods rising formation and the transportation index. The strength in the transportation index would reveal there is no consensus of bearish sentiment in the markets, merely profit-taking/consolidation. Numerous bearish charts have produced bullish confirmation signals. Continue to use the T-line as your ultimate trend indicator. The fry pan bottom patterns are still producing good profit trades, i.e. MP.