Archives for August 2017

The Bullish trading Yesterday confirmed the market indexes Left/Right Combo Signals. The downtrending channel of the past month was breached to the upside yesterday, confirming the Left Right combo. This produce high probabilities that prices were moving higher. Knowing the high profit signals, such as the Doji Sandwich that is forming in NVDA and JKS, or the slow curve pattern that developed in CLMT, puts the candlestick investor and not only the right direction at the right time but also in trade set ups that will produce excessive returns. Currently, it has to be assumed the uptrend should be in progress, the probabilities indicate a wave three.

The Dow and S&P 500 are trading relatively flat, the same nature of how they have traded over the past few weeks. This is still a function of the summer doldrums as well as the lack of activity in Washington DC. However, the NASDAQ is showing a possible breakout of the Downtrending Channel after Yesterday’s Left/Right Combo signal. The market conditions are still producing the trading format for analyzing each individual stock chart on its own merit, the markets are not going to be a major influence.

The nature of the market has been indecisive for the past few weeks. An event like the North Korean missile rocket launch has a more bearish reaction that if the nature of the market had been solidly positive. However, after the Dow opened down 125 points, it has climbed up to where it is often only 40 points. This indicates the initial selling was merely a knee-jerk reaction versus the start of a major selloff. The Dow has currently supported at the 50 Day Moving Average but still indicating a sideways mode of the trend. The NASDAQ and the S&P 500 are not showing any aggressive selling, the NASDAQ trading well above its open. The lack of overall market direction continues to make each individual stock chart the top analytical factor.

Although the hurricane damage in Texas is dominating the news, the markets are not doing anything more relevant than what their existing trend sentiment was exhibiting all last week, merely sideways, noncommittal direction. This lack of direction can be contributed to the last week of the summer doldrums, as well as the hurricane throwing a little bit of indecision into most people’s market evaluation. Continue to use each individual stock chart as the prime analysis.

Today’s positive trading in the markets are still under the influence of the downtrending channel. The upper resistance level of the trend channel has not yet been breached. This puts the market sentiment still in a indecisive and possibly a lower trend channel continuation until the upper resistance level can be broken. Each individual stock chart and/or sector remains the main criteria for establishing long or short positions. Strong candlestick buy signals are easily identified, i.e. PI and strong sell patterns continue to demonstrate good short positioning, i.e.POOL.

The Resistance Level at the Downtrending channel top continues to act as a resistance level. This is probably the result of the gridlock in our nations capital. The indecisive trend still makes each individual stock and/or sector the prominent analytical factor. The drifting market makes identifying the ultra strong signals more important. Otherwise prices do not appear to have any great Bullish or Bearish forces to help them move.

Although the indexes are trading lower, they are trading above where they opened. This is an indication there is any dramatic selling, merely some initial profit-taking from the big move Yesterday followed by some more buying. Also, the indexes are all hovering around the T-line, providing the possibility of the T-line acting as a support level. There is a Downtrending resistance level at the top of the trading ranges of the indexes that still need to be breached to show that wave three is starting. Yesterday’s strong trading after the Doji’s indicates Bullish Sentiment, diminishing the prospects of any further downtrend. Continue to use each individual stock chart as the top criteria for being either long or short.