and The Candlestick Forum
The markets are still in a wait and see mode. The Dow is trading slightly lower, the NASDAQ is relatively flat, the S&P 500 relatively flat, but the transportation index is up strong today. This lack of direction in the market is continuing to allow candlestick patterns to work effectively, i.e.MBLY and KMT J-hook patterns. Continue to stay predominantly long but there are still good short positions available, PIR.
The NASDAQ trading positive, the Dow trading negative, neither with any great resiliency, indicating there is no major change of investor sentiment. This still implies that each stocks/sector is still the predominant analysis. Gold stocks continue their uptrends, still in a scoop pattern slingshot uptrend. The fact that there is no major movement in the market in general continues to make the T-line the predominant trend factor.
Although the markets are trading lower today, they are trading indecisively. The NASDAQ is still above the T-line, the S&P 500 right on the T-line, and the Dow trading just below the T-line. Without any major change of investor sentiment, strong chart patterns are still acting strong. The T-line remains a relevant factor when analyzing the current trend.
The NASDAQ continues to show good solid uptrending. The Dow and S&P 500 remain consistently at the T-line area. There is no signs of bearishness in this market, expect a stable/uptrending market to continue. This is allowing the strong candlestick patterns such as frypan bottoms to continue to produce profits, i.e. KLIC and PAH. The biotech sector remains strong. Stay predominantly strong with long positions being targeted to the strong sectors.
Chart for DXCM
Over the next 13 weeks, DexCom, Inc. has on average historically risen by 9.7% based on the past 12 years of stock performance.
DexCom, Inc. has risen higher by an average 9.7% in 8 of those 12 years over the subsequent 13 week period,corresponding to a historical probability of 66%
The holding period that leads to the greatest annualized return for DexCom, Inc., based on historical prices, is 1 week. Should DexCom, Inc. stock move in the future similarly to its average historical movement over this duration, an annualized return of 219% could result.
Chart for ILMN
Over the next 13 weeks, Illumina has on average historically risen by 6.3% based on the past 17 years of stock performance.
Illumina has risen higher by an average 6.3% in 8 of those 17 years over the subsequent 13 week period,corresponding to a historical probability of 47%
The holding period that leads to the greatest annualized return for Illumina, based on historical prices, is 3 weeks. Should Illumina stock move in the future similarly to its average historical movement over this duration, an annualized return of 236% could result.
Chart for PODD
Over the next 13 weeks, Insulet Corporation has on average historically fallen by 5% based on the past 10 years of stock performance.
Insulet Corporation has fallen lower by an average 5% in 5 of those 10 years over the subsequent 13 week period,corresponding to a historical probability of 50%
The holding period that leads to the greatest annualized return for Insulet Corporation, based on historical prices, is 1 week. Should Insulet Corporation stock move in the future similarly to its average historical movement over this duration, an annualized return of 46% could result.
Chart for RIO
Over the next 13 weeks, Rio Tinto PLC has on average historically risen by 6.6% based on the past 27 years of stock performance.
Rio Tinto PLC has risen higher by an average 6.6% in 20 of those 27 years over the subsequent 13 week period,corresponding to a historical probability of 74%
The holding period that leads to the greatest annualized return for Rio Tinto PLC, based on historical prices, is 17 weeks. Should Rio Tinto PLC stock move in the future similarly to its average historical movement over this duration, an annualized return of 32% could result.
Chart for W
Over the next 13 weeks, Wayfair Inc has on average historically risen by 20.3% based on the past 3 years of stock performance.
Wayfair Inc has risen higher by an average 20.3% in 1 of those 3 years over the subsequent 13 week period,corresponding to a historical probability of 33%
The holding period that leads to the greatest annualized return for Wayfair Inc, based on historical prices, is 10 weeks. Should Wayfair Inc stock move in the future similarly to its average historical movement over this duration, an annualized return of 133% could result.
It has been pointed out by a few new members that the big rally since election day, which had produced some very big profits because of the strong up move was not necessarily conclusive that there was any benefit to candlestick signals. But the revelation that strong profits are still being made even when the market has gone into a flat stage was more indicative of the information revealed in candlestick signals and patterns. This should be the underlying conclusion when understanding the benefits of candlestick signals.
The early selling in the Dow and S&P 500 continues to be offset by the slow consistent buying in the NASDAQ. Now with all the indexes trading positive, it clearly demonstrates there is not yet any dramatic change of investor sentiment, the slow bullish uptrend remains in progress. This allows the strong candlestick charts to continue to perform without the influence of any strong bearish sentiment participating in the overall market. Strong candlestick bullish patterns continue to produce good profitable trades.
Sectors are the main factors during this market trend. That is clearly illustrated by the fact that the Dow is down and the NASDAQ is trading positive. There is no change of investor sentiment in the overall market. But there are specific sectors that are showing strength. The easy candlestick scanning techniques allows investors to pinpoint which sectors are the strongest bullish sectors and which are the strongest bearish sectors.
We hope you were able to join us on Thursday for Steve Bigalow’s presentation where he showed us “How to Eliminate Fear when Entering a Trade.”
If you couldn’t join us Thursday night, please see below where you can watch the full presentation!
After the webinar Steve had a BIG announcement! He is currently offering a 40% discount to anyone who signs up on his “EARLY BIRD” list to be the first to gain access to his upcoming 6-part live online workshop entitled: Candlestick Profits: Eliminating Emotions With Candlestick Analysis.
The exact dates are still being decided, but Steve plans to offer this training within the next few months. There is no obligation to buy and no credit card is required. You will simply be signing up for early notifications about the event and you’ll get a 40% discount if you choose to access the training. You’ll also get the recordings of all live sessions.
Click here now to join the “EARLY BIRD” list!
Watch Video Here; How to Eliminate Fear When Entering a Trade
January 20th Daily Market Comments
The positive trading so far today is more illustrative of a sideways moving market leading up to the inauguration. More than likely the market activity will come to a standstill after lunch. Nothing new in the trading prognosis, stay long in the strong candlestick pattern charts that remain above the T-line, stay short in the bearish charts remaining below the T-line. Monday will likely be the day to show which direction the markets plan to move from here.