A basic statistical observation of the Japanese rice traders anticipated the market reversal. A market reversal/price reversal is highly likely to occur after eight consecutive bullish trading days. Why does this work? Human nature! The selling became obvious late in the day when the Dow started trading back through the halfway point of yesterday’s candle and more compelling when it started trading below the previous day’s open. Seeing this occur allows the candlestick investor to start taking profits at the appropriate times. The NASDAQ opened positive but immediately started trading lower to the point where it closed below the T line, forming a bearish left/right combo, one year most vital candlestick reversal signals. This provides the opportunity to start shorting positions. Everything built into a candlestick chart has meaningful expected results. Once you learn candlestick signals and patterns, you become mentally prepared for taking profits and moving trades in the opposite direction. Join us tonight as we analyze which bearish trades provide the biggest opportunities.

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Stephen Bigalow

Strong short trades make much more sense in these market conditions. Strong short trades have already been identified, usually with bearish best friend signals or bearish kicker signals. The Dow has had 11 positive trading days in a row. The Japanese rice traders have observed that eight positive trading days will usually produce a high probability of a profit-taking reversal. The market conditions in the Dow may be buying the rumor/selling the news based upon the feds, likely to increase interest rates by another quarter percent. Although the Dow has been moving positive, the S&P 500 has traded relatively flat, and the NASDAQ is demonstrating bearish signals. When the probability of a reversal in the markets increases, adding more long positions becomes less enticing. However, short solid trades have the benefit of the signals themselves producing good probabilities of more downside, which would now be enhanced if selling starts forming in all the indexes. This is merely simple logic utilizing the expected results of what human nature is likely to do when trends get overextended

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Good Investing,

Stephen Bigalow

Although the Dow is trading higher, the graphics candlestick signals reveal that you’re starting to see shadows/wicks to the upside, meaning the bullish sentiment is weakening. This becomes more relevant when occurring in the overbought condition. Add the fact that the NASDAQ and the S&P 500 sold off hard today and closed below the T line There are approximately six candlestick graphic indicators that add to the analysis of when there is a change occurring in investor sentiment. A number of these indicators started showing bearish today. Although the banking sector continues to show strength, other sectors, like the semiconductors, are starting to show weakness after strong steady uptrends. The candlestick investor has a huge advantage of witnessing when changes of investor sentiment are occurring not only in the overall market but also in individual stock charts. Learn how to take advantage of these insights, knowing when to take profits even though there has not been a full-fledged individual candlestick reversal signal. Join us on Saturday, July 22 for the ultimate candlestick training, applying the information built into signals that indicate when a change is coming. You will gain valuable insights that will improve your trading for the rest of your life. Click here to register.

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

Good Investing,

Stephen Bigalow

Market trend analysis is the first step for applying successful trades. Market trend analysis, using candlestick signals, allows in investor to know which bullish or bearish force is going to influence profitable trades. Currently, the uptrend remains in progress because of a simple trading parameter, the indexes are trading above the T-line. This is allowing for the strong candlestick signals to continue to produce profits. Join us Saturday, July 22 for a full day training on the ultimate candlestick trading process. This involves correctly analyzing the market trend, identifying candlestick signals and patterns, identifying the strongest candlestick signals and patterns and then applying the trading techniques that take advantage of the price moves, i.e. buying stock positions, option positions, and/or options spreads. This current uptrend is climbing the wall of worry, indicating a very stable bull market. The prospect of inflation diminishing appears to be the catalyst.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow