November 7th Daily Market Comments

The double Doji set up that formed in the Dow yesterday provided good probabilities that if the markets opened positive today, the uptrend would continue, and likely with good strength. The indecisive trading in the NASDAQ and the S&P 500 over the past three days provided the same implication. The candlestick signals and patterns still do not reveal any change of investor sentiment. Assume that the next wave of the market uptrend is in progress but always have safety stop’s in place. Anticipate more upside.

November 6th Daily Market Comments

More consolidation but nothing that shows a change of investor sentiment yet. Anticipate a slow trading day/profit-taking. Analyze each individual stock chart, looking for potential reversal signals. The length of this market trend will allow for taking profits in specific stocks/sectors and rotating that money into new positions. Stay predominantly long as long as the indexes continue to trade above the T-line. Today, the 3T-line is acting as a support level.

November 5th Daily Market Comments

The market indexes are appearing to be in a consolidation stage today, allowing the T-line to catch up. Market consolidation is further implied with the transportation index trading very bullish today. The overall trend remains bullish without any evidence of a candlestick reversal signal as well as the indexes continuing to trade above the T-line. These market conditions warrant scanning for the strongest bullish chart setups, i.e. best friend signals, frypan bottom breakout’s.

November 4th Market Direction

The market indexes all hit new all-time highs, expected based upon the candlestick patterns setting up going into the all-time high breakout levels. The Dow formed a frypan bottom pattern as it moved up toward the breakout levels. The NASDAQ and the S&P 500 performed J-hook patterns which illustrated the wave three of a J-hook pattern would take those indexes out into new high territory. Having the ability to analyze the nature of investor sentiment at specific levels dramatically improves the probabilities of staying in positions through important technical levels. The bullish patterns also developed in the longer-term charts, implying a major new bullish wave was beginning.

When investor sentiment can be analyzed as being consistently bullish, this allows the candlestick investor to take advantage of high profit pattern breakouts. It also provides the opportunities to make big profits in lower-priced stocks that require an overall bullish atmosphere in the general markets. When investor sentiment starts getting bullish across-the-board, news items on individual stock positions produce much bigger profitability when there is little fear of bearish sentiment turning the markets around. The major advantage candlestick charts provide for the candlestick investor is the ability to have a vast majority of portfolio positions moving in the same direction all at one time. Many investors complain that there overall returns are not always great in a bullish market because of some of the positions in the portfolio trading lower even as the market trades higher. Candlestick analysis dramatically reduces having unprofitable positions in the portfolio during specific trends. This is what creates much greater profitability for the candlestick investor.

 

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

November 4th Daily Market Comments

The rhetoric of Washington politics does not seem to deter the bullish sentiment of economics. The bullish candlestick patterns demonstrated in the indexes imply more upside. The J-hook pattern of the NASDAQ and S&P 500 would indicate wave three is currently in progress. The Dow appears to be breaking out through resistance levels. Stay predominantly long using the T-line as the ultimate trend criteria. Any short positions should have very compelling reasons to stay short, i.e. SIX.

11/07/2019 Guest Presentation with Steven Primo

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

Stock Chat – Thursday 11/07/19


At the end of the webinar Steven offered his FREE Trading Online E-Course entitled “Catching Big Trends With Bollinger Bands®.”

 

November 1st Daily Market Comments

The strength in Today’s trading has broken the Dow out of a little resistance level as well as forming up a J-hook pattern. The same J-hook pattern confirmation is occurring in the NASDAQ and S&P 500 implying more upside. Stay predominantly long but continue to be aware of news items or tweets still having an effect on investor sentiment. But the overall prognosis is that bullish sentiment is still in control of this market especially with the J-hook pattern and the indexes trading above the T-line.

October 31st Market Wrap-Up

The Dow remains the most sensitive of the indexes, reacting with much more activity on bullish or bearish news. Today’s Chicago manufacturing numbers sent the markets lower with the Dow showing the most weakness. However, by the end of the day the NASDAQ and the S&P 500 closed toward the upper end of their trading range, utilizing the T-line as a support level. The uptrend remains in progress as long as the indexes continue to close above the T-line. The NASDAQ and the S&P 500 show more resiliency now that they have broken out through the upper resistance level of the sideways trend. The Dow and the transportation index are showing the most weakness based upon candlestick reversal signals. This could pull the NASDAQ and S&P 500 lower if the Dow shows more weakness from this level. The final criteria is still the T-line. The indexes need to remain above the T-line to confirm the bullish sentiment is still controlling the slow uptrend of this market.

The strength of individual chart patterns continue to produce good profitability, even when the overall market conditions do not show overall strength. Our recommendation on CVET was based upon a cradle pattern breakout. The 2+2 evaluation uses the expected results of a cradle pattern as well as a positive open confirming the cradle pattern by trading above the T line. The combination of candlestick patterns in conjunction with T-line expectations dramatically improves the probabilities of being in the correct trade at the correct time. This was also illustrated in Today’s positive trading in our recommendation of this past week in UCTT, forming a Doji/hammer signal supporting on the T-line followed by positive trading today clearly illustrates the bullish strength remains in this uptrend. Candlestick analysis is merely the identification of what investor sentiment does with a high degree of probability and utilizing confirming indicators that improve the probabilities.

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

Good Investing,

The Candlestick Forum Team

 

October 31st Daily Market Comments

Although the indexes have been in a steady uptrend, the strength of investor sentiment is still tentative based upon the sensitivity to the latest news items or tweets. The Dow has yet been able to break out of the sideways wedge formation although the NASDAQ and the S&P 500 have just climbed up through the upper resistance level. Currently, the Dow has formed a strong bearish engulfing signal here the top of the trend channel. If it closes below the T-line, this will be a strong indication the wedge formation is still in progress. Unfortunately, this will make a lousy trading environment, a lack of continuity in either bullish or bearish trends. A close near the lower end of the trading range would warrant moving heavier into cash.

October 30th Daily Market Comments

The markets are in a wait and see mode, waiting for the Fed announcements. However, the markets are not demonstrating any change of investor sentiment, continuing the uptrend. There are a small number of talking heads still warning of a market selloff the same as 2008. This is very bullish. Take advantage of the signals and patterns that are working. The frypan bottom pattern is producing great results, i.e. UIS, CVLT. ROKU is in the process of developing a Doji sandwich breakout.