and The Candlestick Forum
The indecisive trading today does not indicate any change of investor sentiment. Although the Dow and the S&P 500 looks like they’re running out of steam, the NASDAQ continues to trade sideways as if in a consolidation stage. At this area of the trend, individual stocks/sectors are moving on their own basis. Stay long in positions that are not showing sell signals and moving back below the T-line.
The Dow is trading near all-time highs, Thursday’s indecisive trading is less indicative of a potential reversal due to the fact the transportation index is still moving up with reasonable strength. Unless there is a dramatic change of investor sentiment, a strong bearish reversal signal, the uptrend remains in progress. This is wave five out of a spreading pattern in the Dow, indicating strong upside potential.
The markets are showing great reaction to the elections but the expectations of the elections may have already been built into this market. Currently, the sideways mode/consolidation stage of this market appears to be waiting for the T-line to catch up. The prognosis remains the same, stay long in the strong charts and patterns. Stay short in strong bearish charts. Currently there is no change of investor sentiment, the current uptrend remains in progress. Crude oil prices are making a strong move to the upside Wednesday but watch to see if this is not merely a technical bounce.
Profit-taking or a reversal? This question can be much easier answered when using candlestick analysis. The Dow and the NASDAQ are selling off, as expected with the potential reversal signals of Monday. However, the transportation index continues to trade higher. This would be a good indication that there has not been a change of investor sentiment, merely profit-taking. Stay long but there are still good short positions in the oil sector.
Stock Market for Dummies? I think not…
Most investors become proficient at investing after some painful experiences. When should we learn how to invest? Well, while we learn everything else when we are young probably. It should be part of our education. Most investors realize this when they discover that the investment professionals have no better clear understanding of how to invest than they do. If the markets go up, they help you make money. If the markets go down, they help you lose money. Are they actually better at anticipating the stock market? Who wrote the all too popular book stock market for dummies? Or is it stock investing for dummies? I don’t remember…but I do know this…
If you have taken the steps to educate yourself in stock market trading, you will find that the candlestick signal investment method is based upon common sense investment procedures. Most investors spend years accumulating assets only to find themselves without the knowledge of how to make those assets grow.
Through the use of technical analysis tools like candlestick chart formations the trader is able to anticipate market trends, market reversal, and successfully trade market volatility.
Through the use of candlestick patterns such as the doji candlestick (see image), traders are able to identify changes in market sentiment (such as the market indecision that the doji indicates.)
Additionally, if you combine candlestick signals with the fundamentals of stock analysis such as margin of safety, intrinsic stock value, and price to earnings ratio you will begin to see a new way of investing that just makes sense.
Combine your basic candlestick analysis education with the tools available to members of my forum and you will have a nice foundation in which to see your assets finally grow. Yes, of course beginning with a stock market for dummies book of some sort will get you the started, but if you are reading this you are probably already ahead of the game.
Learn more about the member benefits included in my Candlestick Forum Membership package.
Investor sentiment has not changed as evidenced by the fact that the Dow is trading lower and the NASDAQ is trading higher, merely indicating shifting of positions but not a change in the overall market trend. Continue to stay prominently long but crude oil is still trading weaker, making a few sectors viable short candidates.
November 11 Daiy Market Comments
The markets are continuing their slow up trending progress, indicated by the NASDAQ setting up a J-hook type pattern while the Dow and the S&P 500 continue to move up slowly but demonstrating the lack of selling pressure with the consistent trading above the 3T-line. Continue to stay long, but have your stop loss positions in place.