Weekly Watch list July 6th – July 10th, 2020

The rhetorical question, why is the market moving up when the number of virus cases appears to be skyrocketing? The candlestick investor does not have to know the answer to that question. The candlestick investor is merely interested in what everybody else’s investment decision is doing. Apparently investors are looking past the virus crisis or the escalating virus reports is not the relevant number being evaluated, the number of deaths reducing may be the primary factor. Remember, investors are putting their money on the line based upon what they feel the prospects are for the future. That often means disregarding or taking into consideration what current situations are demonstrating.

A major underlying strength of this market trend is its lack of excessive/exuberant buying. The NASDAQ is trading at an all-time high but it was a long steady recovery from the March bottom. The Dow and S&P 500 have shown slow steady uptrends, not revealing any excessive buying. These market conditions have allowed for the identification of candlestick signals and patterns that produce high probability trades setups. The pattern breakouts also imply much stronger price moves than merely up trending stocks during a slow up-trending market. Watch the chemicals, Internet servers, and education and training stocks this week. They have produced observable candlestick breakout patterns.

07/09/2020 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 07/09/20


At the end of the webinar Steve announced his upcoming Top Patterns Working in Today’s Market Conditions” event, which he’ll present on Saturday, July 25th.

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.


July 2nd Market Wrap-Up

Good employment numbers, bad virus numbers, why is the market going up? We do not need to have that ability to figure out why the market is going up. Candlestick analysis merely evaluates what everybody decisions are for either buying or selling. Investing is a forward-looking process. The graphics of the candlestick charts merely reveal that investor sentiment is being influenced by what investors are anticipating for the future. Today’s events and/or facts have been built into the market. Investor decisions are based upon what the expectations are for economic future results. Currently, the market indexes are continuing to trade above the T line. Historic probability-factors indicate that as long prices/indexes trade above the T line, the probabilities are extremely strong the uptrend remains in progress.

Having the ability to analyze the overall market trend allows the candlestick investor to take advantage of potentially strong pattern breakout price moves. The magnitude of these moves are enhanced when knowing the overall market trend is moving in the same direction. Common sense dictates bullish charts are going to have greater bullish strength when the overall market is trading positive. Bearish candlestick price patterns are going to act with more force to the downside when the market, in general, is heading to the downside. This may seem like oversimplified logic, but a major benefit of candlestick analysis is the fact that the chart patterns are created by common sense aspects of what human nature normally does. Currently, J-hook patterns and fry pan bottom patterns continue to work exceptionally well in these market conditions. Our recommendations of APPS, VIVO, ZM and numerous Steady Eddie trending stocks continue to produce good profitability because of a simple trend indicator, they are remaining above the T line.


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

Good investing,

The Candlestick Forum team.

July 1st Daily Market Comments

The market indexes continue to trade above the T-line with the NASDAQ showing the most consistent strength. A number of the big stocks,AMZN, AAPL, NVDA formed MorningStar signals yesterday at the T-line area. This illustrates that bullish sentiment is still controlling the market. Stay predominately long.


June 30th Daily Market Comments

Although the indexes have opened positive after yesterday’s bullish Harami’s, the T-line is still in play. A new uptrend will not be confirmed until there is a conclusive close above the T-line. However, numerous stocks are trading positive with good strength i.e. NVDA, AAPL, TSLA. Seeing strength in the big traders helps confirm the bullish sentiment has not left the markets.

June 29th Market Direction

The major indexes formed bullish Harami’s Today, a very strong candlestick signal indicating the selling has stopped. However, all the indexes are still trading below the T-line. This allows for the candlestick investor to be prepared for the next trend movement. A failure of the bullish Harami, a lower open tomorrow, would continue to make the T line downtrend the viable analysis. A positive open tomorrow, confirming the bullish Harami, would add credence to the Dow supporting at the 50-day moving average and the NASDAQ supporting at the up-trending channel. Knowing what to expect, based upon how the markets open, allows for increasing or closing long and short positions in the portfolio.

Currently there are sectors that are producing good strong steady profits. Gold stocks, for example, are gaining strength because gold prices continue to slowly move positive. Having the ability to analyze the overall market trend, analyzing individual sectors, and then able to analyze which stocks are producing the strongest signals in that sector allows the candlestick investor to dramatically improve the probabilities of being in the correct trade at the correct time, putting all the stars in alignment. Knowing which candlestick signals and patterns produce the strongest results also increases the probabilities of being in profitable trades at the optimal entry points.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

June 29th Daily Market Comments

The market indexes are illustrating that although they are in a downtrend, trading below the T-line, the downtrend is not a full conviction selloff. The Dow may be illustrating a bullish Harami after it tested the 50-day moving average as a support level on Friday. This does not necessarily mean the downtrend is over, but the nature of the market, up one day, down the next day, is demonstrating the bearish sentiment is not very compelling. These market conditions still warrant having both long and short positions in the portfolio.

Weekly Watch list June 29th – July 3rd, 2020

There are two very effective candlestick rules that produce extremely high probability trades. The T-line rule simply states that a trend has an extremely high probability of producing an uptrend if prices close above the T-line. If prices close below the T-line, the probabilities are extremely strong a downtrend will be in progress. The Doji rule simply states that prices will usually move in the direction of how prices open after a Doji. This easily produces very profitable trades when combining the overall market trend analysis along with individual stock price analysis. Adding short positions to the portfolio had been recommended for the past couple of days based upon the sell signals that had formed in the indexes. The Doji rule helped identify which stock positions to short immediately on a lower open based upon the set up of bearish Doji sandwich signals. With the market indexes trading below the T-line, the prognosis remains strong for more downside.

07/02/2020 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 07/02/20

June 26th Daily Market Comments

Yesterday’s positive trading in the indexes provided the prospects of any downtrend being a slow moving downtrend. The NASDAQ actually closed above the T line. However, the Dow and S&P 500 did not close back up above the T-line. Today’s lower open in the indexes affirmed the market trend, the assumption being that as long as the indexes were trading below the T-line, the prospects of the downtrend was likely. With the NASDAQ closing above the T-line and the Dow and S&P 500 closing below the T-line, the market trend was going to be indicated by the premarket futures are showing which direction the markets were likely to trade.