June 16th Market Wrap up

High probability signals produce very accurate trend analysis. High probability signals such as the double Doji and the bearish kicker signal were demonstrated in the Dow and the NASDAQ, indicating the downtrend remains in progress. It is not unusual to see strong whipsaw action during Fed announcements. However, witnessing the gap down from yesterday’s trading the next day merely indicates the knee-jerk reaction of yesterday’s trading was then followed by the reality that raising interest rates didn’t magically change the overall scenario of economic conditions. Further bearish confirmation was the fact that all the market indexes around the world were selling off. The candlestick investor can trade with much more confidence knowing that bearish candlestick signals is confirming the obvious downtrend. There are numerous candlestick signals and patterns that produce very high probability trade results. Knowing these trade set ups allows for very profitable/high probability daytrade set ups. Join us Saturday, June 25 for a full day daytrading training that visually recognizes when a high probability trade is about to occur. You will get much more information than you anticipate.

 

June 15th Daily Market Comemnts

A bounce? Not unexpected with the indexes moving excessively below the T line. Obviously anticipation of the Fed announcement today. After the fed announcement, watch to see what the market action is from there, being when the announcement is out-of-the-way, all the remaining factors for analyzing/deciding whether to be buying or selling will be back to the existing factors, inflation, five dollars a gallon gas, etc. Note that the Dow bounced back up to the 3T line and is currently selling off from that level. Keep in mind, the downtrend remains in progress until there is a candlestick buy signal.

 

June 13th Market Direction

The strongest bearish trades are easily identified with candlestick analysis. The strongest bearish trades become highly profitable when able to accurately evaluate the overall market direction and then identify the strongest bearish candlestick signals in individual stock charts. Bearish Best Friend signals and bearish Kicker signals can produce very profitable short positions as well as put trades and put spreads. The simple candlestick scanning techniques allow investors to identify which stocks are being sold with the greatest bearish force. Simple visual analysis improves the prospects of a bearish trade when the signals occur at major resistance levels. Knowing the expectations of candlestick signals and patterns also produce a self-induced indicator. If you wake up in the morning and feel anxious about your portfolio/trade positions, it means you are probably positioned incorrectly based on what the candlestick market trend indicators represent. If you wake up in the morning and you feel very comfortable with your existing positions, you have utilized the information in the candlestick charts, dramatically reducing the emotional expectations of what you hope would be occurring. The Japanese rice traders have a very simple analysis. Let the market tell you what the market is doing! That will consistently put you in the correct trades with a high probability.

June 13th Daily Market Comments

A very compelling trade indicator! If you become convinced that candlestick signals and patterns work an extremely high percentage of the time and you are feeling anxiety with your positions, you are positioned incorrectly. Close positions and analyze the markets/prices with a clear mind.

June 10th Daily Market Comments

Inflation! Did the smart money anticipate today’s CPI report and yesterday’s trading? Who knows, but as a candlestick investor all we have to do is analyze the fact that investor sentiment broke down through the sideways trading range of the past two weeks. The close below the T line yesterday in the indexes revealed the probabilities of a new market trend. Any long positions require even more compelling reasons to stay long today. Be predominately short.

 

June 9th Stock Chat with Stephen Bigalow

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June 9th Market Wrap-Up

Candlestick power trades are easy to identify. Candlestick power trades merely put all the stars in alignment. The first assessment is the direction of the market. After two weeks of indecisive trading, the indexes showed what the decision was after the indecisive trading. Today the indexes traded lower, closing below the sideways channel and below the T line. This produces much stronger probabilities that wave three to the downside is in progress. However, the CPI report tomorrow is going to probably affect the market trend one way or the other. Currently, there are a number of bearish charts that are not merely showing a downtrend, but candlestick signals show which downtrends will have the most power. Knowing what each individual candlestick signal illustrates allows the candlestick investor to take advantage of the power trades that are correlating with the overall market. This allows for accurate and profitable stock trades as well as ultimate timing for option strategies.

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

Good Investing,

Stephen Bigalow.

June 9th Daily Market Comments

The Dow and the S&P 500 trading lower today have moved those indexes back below the T line. The NASDAQ is hovering at the T line. The indecisive flat trading of the indexes over the past two weeks produce the prospects of another wave to the downside based upon stochastics being in the overbought condition and indexes not trading with any great upward trajectory. Be careful of long positions unless they have compelling bullish charts. Start orienting more toward the short side.

 

June 7th Daily Market Comments

The indecisive trend of the market is illustrated by the indexes hovering at the T line area. The biggies continue to trade in a sideways mode, AAPL up right now, AMZN down. However, the strong patterns continue to perform well.

 

June 6th Market Direction

Profitable candlestick patterns have a dual benefit. Profitable candlestick patterns are easily visually recognized and they produce a high probability of expected results. This is to the fact that investor sentiment works the same way time after time. The strongest individual candlestick signal is the kicker signal, revealing a dramatic change of investor sentiment. Profitable candlestick patterns, such as the fry pan bottom, or more compelling, the classic pattern, a fry pan bottom followed by a J-hook pattern, produce high probabilities of the expected price move as well as a substantial profit result. Analyzing candlestick charts allow investors to assess a price move with a much higher degree of accuracy because of the reoccurring nature of investor sentiment. Currently, the lack of direction of the overall market provides a specific trading strategy for candlestick investors. Both long and short positions should be established in the portfolio until the market shows a definite trend movement. The direction of the trend is much more easily assessed when using the graphics of candlestick signals. Today, the Dow failed at a resistance level and pulled back into the sideways trading range. A close back below the T-line in the major indexes would indicate a wave three to the downside.