March 30th Daily Market Comments

The McMuffin pattern is still the predominant indication of investor sentiment. The virus news seems to be just as good/bad as it has been for the past few weeks. How should we analyze that? We don’t need to, the McMuffin pattern produces extremely high results. We do not need to analyze how the current news is affecting the market, we just need to analyze what everybody else thinks the news is doing to the market trend. Keep the analysis simple.

04/02/2020 Stock Chat with Stephen Bigalow

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Stock Chat – Thursday 04/02/20

Weekly Watchlist March 30th – April 3rd, 2020


Wouldn’t you like to put all the probabilities in your favor? Candlestick analysis does that for you. With great accuracy, you can analyze the direction of the overall market. You can then analyze which sectors are showing the strongest charts. And finally, you can identify which are the strongest individual stock chart candlestick signal/patterns that will produce the strongest price moves. This is putting all the stars in alignment.

This past week, the market indexes produced an extremely high probability reversal pattern, the McMuffin. Simple logic! The McMuffin is formed with a MorningStar signal, one of the 12 major candlestick reversal signals. Expectation? An upside reversal. It was immediately followed by a Doji sandwich, also producing high probability results, more upside. Adding these two signals together produces double the probabilities of more upside.

When you can see the direction of the overall market, simple candlestick scanning allows for the identification of which sectors are producing the strongest signals. Then it is a simple process to scan each sector for the strongest individual stocks. You now have identified trades that give you the highest probabilities of not only moving in the correct direction, but also with good strength.

The REITs are producing strong reversal patterns. Watch these stocks, VTR, ABR, EFC. The shipping sector is producing good bullish patterns. STNG, TNK. The specialized health sector has shown good reversal signals, APT, SDC, TVTY, EHC.

You will discover that you can sleep much better at night knowing that you have established positions in strong sectors enhanced with the strongest individual stock chart patterns in those sectors. Take advantage of this information, there are hundreds if not thousands of stock charts that are showing potential reversals. You want to be able to elevate your profitability by being in the best bullish charts.

 

 

March 27th Daily Market Comments

The markets are still being affected by the political garbage of Washington. But the underlying factor remains that the McMuffin signal in the indexes of the past few trading days produces strong probabilities the uptrend is in progress. The T-line now becomes the trend indicator. The uptrend remains in progress as long as the indexes continue to trade above the T-line. Witnessing the premarket futures showing that the markets were going to open much lower is an immediate indication that any bullish signals created yesterday were probably not going to confirm. This keeps you out of trades that are working just yet.

 

March 26th Market Wrap-Up

The McMuffin pattern! Not a very sophisticated sounding pattern but it is extremely reliable. It is formed by the Morning Star signal, one of the 12 major signals, followed by a Doji sandwich. In short, a morning sandwich, the McMuffin. These are the type of visual analytics that allow candlestick investors to start adding to long positions with great confidence. The MorningStar signal provides the expectation that a reversal is occurring. The Doji sandwich indicates more upside. The combination of a MorningStar signal followed by a Doji sandwich is a double confirmation that the bulls have taken control. This is provided visual recognition of high profit trade set ups. The important factor is being able to identify when there is a change of investor sentiment. This allows for entering trades that have upside potential well before everybody else is starting to move in. Boeing for example, trading it $99.00 four days ago is now trading at $180. There are numerous stocks that have produced very strong reversal signals that have the potential of doubling in a very short time frame.

Being able to identify the strongest top ranked candlestick signals and patterns allows an investor to make hay while the sun shines. You obviously want to be able to find the stocks that are going to move the strongest when a market is moving in the correct direction. Candlestick reversal signals allow you to identify which price moves are going to be much stronger than the normal price moves of most stocks. Adding confirmation indicators such as the T line dramatically improves the probabilities that an uptrend is in progress. This allows for identifying the target areas that will produce the biggest returns during the current trend. Utilizing the high profit candlestick patterns also produces high probability trade results based upon the exact entry points. There are numerous stock charts revealing top ranked reversal signals that have the capability of producing very strong profits. Why? Because investor sentiment can be clearly identified as to the strength of a price move through simple visual identification of the strongest reversal signals.

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

Good investing,

The Candlestick Forum team.

March 25th Daily Market Comments

The market indexes are in the process of forming a McMuffin. If the markets closes near the high end of there trading range Today, this pattern will provide good evidence of more upside. The unemployment claims bad? Obviously, those numbers were already built into investor sentiment. Let the market tell you what the market is doing.

March 25th Daily Market Comments

Why should you not listen to the opinions of the talking heads on the financial news stations? Because there is 47 different scenarios of what the markets are going to do from here. A short squeeze yesterday! What pork is in the relief bill? Retesting of the lows! There is one important relevant factor illustrated from all the expert opinions. Nobody knows what is going to happen from here. Except one. The market! The Japanese rice traders tell us always to let the market tell us what the market is doing.

March 23rd Market Direction

What is affecting the market trend? Politics! That was evident in the price movements of the markets today when there was the prospects of a relief bill passing and then the realization the relief bill was not passing. This becomes relevant information for anticipating the market trend is predicated on what bills can be passed. That implies the market trend has gotten to a level where investor sentiment is looking for something to help reverse the downtrend. What will be the best stock price reversals when the market reverses? That is currently being illustrated by candlestick reversal signals already performing. Last week ZM was identified as a potential J-hook pattern. Today, there were numerous Doji sandwich breakouts through the T line. What this illustrates is that buying has started back in this market. The candlestick investor gains a huge advantage by being able to identify which stock/sectors are starting to show buy signals. This implies that those stock/sectors will probably act the strongest when the market in general starts reversing and showing strength. The more you learn what is incorporated into candlestick signals, the more you become convinced that price movements are based upon investor sentiment. Even if you have a relatively successful trading strategy/system that you are currently using, when you add candlestick analysis charts to your analysis, you dramatically improve the visualization of successful price moves.

Do not get discouraged. If you are relatively new at candlestick analysis, the lack of any good trade set ups from the candlestick charts is very informative. There are not any good candlestick trade set ups occurring in this market. 98% of the time the candlestick charts will reveal a number of good bullish charts or berries charts no matter which way the market is moving. 2% of the time the markets will illustrate not to be in the market. We are in that 2% time frame. Be patient, the rubber band is stretching. There will be strong bullish trades very soon. Chat session tonight at 8 PM ET. Mark your calendars, April 4 and 5 will be a two day comprehensive training, the Triple T training. This is identifying and understanding the major candlestick signals and patterns with enhancing probabilities of the T line. Take advantage of this information, it will improve your investment perspectives for the rest of your life.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

March 23rd Daily Market Comments

Are any of the congressional bills to supply financial relief to the American economy going to work? Are the feds announcing that they would do anything that it takes to support the economy going to work? Who knows! What is more important is watching the candlestick charts to see when the investor sentiment perceives any of this support is going to work. Continue to stay predominately in cash.

Weekly Watchlist March 23rd-27th, 2020

You have probably been inundated with emails describing how the China virus has affected the markets. Does that do you any good? Wouldn’t you be more interested in knowing what the market is telling you now? Candlestick chart analysis provides a huge advantage. It provides information/signals that reveal when the buying has started.

Does that mean the whole market is starting to turn soon? Obviously not, but wouldn’t you like to visually recognize which stock/sectors are starting to be bought? Last week the signals revealed the grocery store stocks were getting bullish investments. This week another important sector is showing buying? When the markets are not showing any bullish resiliency and specific sectors are being bought, who do you think is buying? The smart money!

Simple candlestick chart analysis allows you to recognize and participate in price moves that are being formed by the smart money. This merely requires simple candlestick visual analysis. The most compelling factor I learned from candlestick analysis was that it was the actual decision-making process of investors, not projection, not conjecture, not sage advice, but actual decisions about buying or selling.

Oil and gas refineries and oil and gas pipelines are showing strong buy signals. Why would the smart money be buying those sectors? This is where you can apply reverse engineering. Why would the smart money be buying these sectors when crude oil has dropped to a multi-year low? Reverse engineering is stimulated by the buy signals, bringing attention to why those stocks are being bought.