September 15th Daily Market Comments

Today’s positive trading in the market indexes is confirming the potential reversal signals of yesterday. The MorningStar signal that formed in the Dow and S&P yesterday is being confirmed by today’s positive trading and currently trading above the T-line. The NASDAQ was setting up for a bullish flutter kicker signal, Today’s gap up above the T-line is confirming bullish sentiment has come back into the markets.

September 14th Market Direction

Is the market trend reversing? Candlestick signals at relevant technical levels, that everybody else is watching, produces good evidence the bulls are starting to take control again. The Dow formed a MorningStar signal today, off the 34 EMA, and closed above the T-line. The NASDAQ gapped up, above the open of Friday, and formed a Doji. This sets up a strong probability that a positive open tomorrow is going to create a bullish flutter kicker signal, one of the strongest reversal signals, and the likelihood of closing above the T-line. This adds good evidence the uptrend may be back in progress. Utilizing the transportation index also allowed for assuming there was not going to be a major reversal in the markets with the simple logic that if one index is trading strong while other indexes are trading lower, it merely indicates funds moving from sector to sector, not leaving the market.

Fry pan bottom patterns continue to produce very strong profitable trade results. A number of fry pan bottom patterns are in effect, i.e. WKHS, DAR, PENN, DKNG. All boats will rise in a rising tide but the results of candlestick pattern breakouts are boats that are going to rise a heck of a lot faster. The information built into each candlestick signal allows the candlestick investor to have a much more clear analysis of a price move based upon the historical results of the candlestick signals and patterns. This also creates a trading program that dramatically reduces emotional trading. Expected results that have been proven for hundreds of years, based upon normal human nature reactions, allows the candlestick investor to be in high probability trades with a high degree of accuracy.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

September 14th Daily Market Comments

Today’s bullish strength they are forming a MorningStar signals in the Dow and S&P 500, currently bringing the Dow back up above the T line. The NASDAQ is formed a small kicker signal bouncing up off the 50 day moving average. The transportation index continues to show strength.

Weekly Watch list September 14th – September 18th, 2020

The markets may be showing some support near the 50-day moving average. But a compelling indication that there is not a drastic selloff in progress is the fact that the transportation index has been moving sideways and upwards when the rest of the indexes have been selling off. Candlestick logic merely tells us that there is no consensus selling in this market, merely profit-taking. If new strength shows up in the markets you want to consider buying the shipping stocks GLMG, TNK, STNG, as well as FDX which has maintained a 45° for the past two months and now producing a slow curve upside breakout potential. The housing stocks are starting to move back up TOL, PHM, TMHC, KBH, LEN.  Application software stocks can be shorted on market weakness SMAR, VEEV, BLKB, WORK RPD, INOV. It would be prudent to have both long and short positions in the portfolio as long as the market indexes are not showing any direction. The bullish trend needs to see the market indexes close back up above the T line. The T line rule tells us the downtrend remains in progress with a much greater degree of probability as long as the indexes continue to trade below the T-line.

September 11th Daily Market Comments

A solemn day in America! The markets are consolidating sideways as anticipated, the NASDAQ trying to show some support at the 50 day moving average and the Dow forming another bullish Harami so far today, possibly indicating the selling has stopped. This still puts the market trend in an indecisive mode. Long positions and short positions should be maintained abiding by the T line. Continue to have both long and short positions in the portfolio.

September 10th Market Wrap-Up

The T-line is a very accurate trend indicator when used in conjunction with candlestick analysis. A close below the T-line after a candlestick sell signal produces extremely strong probabilities the downtrend will remain in progress, until you see a candlestick buy signal and a close back up above the T-line. This rule kept candlestick investors from investing heavily to the long side yesterday when the buying came back into the market indexes, demonstrating good strength. The strength did not close the indexes above the T-line. The combination of candlestick signals and patterns in conjunction with the use of the T-line dramatically improves the probabilities of remaining in a trend, keeping investors from getting whipsawed out of a profitable position too early. The fact that candlestick signals and patterns are the graphic depiction of investor sentiment and the T-line acts as a natural support and resistance level of human nature, combining these two visual aspects produces extremely high probability trade results.

Our recommendations in TUP and ANF continue to act well because of the fry pan bottom expectations. Candlestick patterns will continue to produce good profits when the market in general turns the opposite direction because of the buildup of investor sentiment that was creating that pattern. The J-hook pattern has the same characteristics as illustrated in our recent recommendation of HIBB. These trades illustrate the fact that bullish profits can still be made when the markets are trading lower. However, going with the flow is enhanced with the visual ability to analyze the overall direction of the market. Identifying the strong sell signals when the market is heading lower dramatically improves the probabilities of making good profits in short positions. This is merely simple candlestick analysis logic.

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

Good investing,

The Candlestick Forum team

09/10/2020 Stock Chat with Stephen Bigalow

In order to download click on the link below, once on the video page you will right-click on the video then hit “Save video as” to save to your files.

Stock Chat – Thursday 09/10/20

At the end of the webinar, Steve announced his upcoming Proven Candlestick Option Strategies event, which he’ll present on Saturday, September 12th.

This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.

Click here for more information.

September 10th Daily Market Comments

The T-line continues to act as a relevant indicator. The major indexes bounced up to that level Today and are currently starting to selloff. This indicates a bounce has occurred in the market but not yet a full fledged reversal back to the upside. These market conditions warrant being very selective as far as the strength of the signals and patterns. Continue to have both long and short positions in the portfolio.

 

September 9th Daily Market Directions

The inverted hammer is the relevant signal Today. The NASDAQ formed an inverted hammer on the 50 day moving average yesterday. Today’s positive trading provides a good indication the 50 day moving average is going to act as a support level. This does not necessarily mean the markets are going to head straight up from here, the stochastics still need to start turning back up to confirm investor sentiment is not in the bearish mode. AAPL, AMZN, OSTK, NVDA are all trading positive after yesterday’s inverted hammer signals. There are still good long and short positions working. Be selective.

 

09/08/2020 Stock Chat with Stephen Bigalow

To Download recorded sessions;

To download click on the link below, once on the video page you will right-click on the video then hit “Save video as” to save to your files.

Stock Chat – Thursday 09/08/20


At the end of the webinar, Steve announced his upcoming Proven Candlestick Option Strategies event, which he’ll present on Saturday, September 12th.

This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.

Click here for more information.