Archives for September 2017

Is everything working as regards to your trading plan? This is the first question each investor should ask themselves before the market opens each day. This is where candlestick analysis greatly solidifies an investors discipline. The graphics of candlestick charts reveal what is occurring in investor sentiment, either confirming or negating what a trend expectations are doing. The basis of successful investing is knowing what should be occurring in existing trades. Currently the market indexes are still trading above the T-line after a few days a consolidation. The expectation should be the uptrend is still in progress. This same evaluation can be used on individual stock charts to keep from being whipsawed in and out of positions. Currently stay long, any short positions should still have convincing selling occurring.

Today’s positive trading is keeping the indexes above the T-line. The Dow and S&P 500 are setting up J-hook patterns with the Dow currently forming a left/right combo off the T-line. As long as the indexes remain above the T-line, with the prospects of forming a bullish J-hook patterns, the probabilities indicate the continuation of the uptrend. The bias should be toward the long side in the portfolio with any short positions being closely analyzed as to see whether they are starting to exhibit strength, causing a closing of these positions.

The nature of the market is still indecisive, the Dow now trading slightly lower but the NASDAQ trading up stronger. The consolidation is evident in each specific sector. This is providing more confirmation that these market conditions warrant having both long and short positions in the portfolio. This is why we recommend Trend Analysis.

Yesterday the Dow and S&P 500 formed Doji’s right on the T-line. Today’s positive trading is very relevant, providing the evidence the T-line will act as support if Today’s trading remains positive going into the close. The NASDAQ gapped up today after it close just above the 50 Day Moving Average yesterday, implying the slow uptrending channel is still in progress. It will be important to see how the markets close Today, staying above the T-line will be important.

The indexes are continuing to demonstrate consolidation during the uptrend, not any major change of investor sentiment. The Dow is used the 3T-line as support Today, the S&P 500 has use the T-line as support. The NASDAQ is showing the most weakness, after a series of Doji’s it is currently trading below the T-line. The transportation index is trading higher. The accumulative analysis of all the indexes merely indicate shifting of funds, no major exodus from the markets. Continue to use the signals and the T-line to stay predominantly long with some short positions in the portfolio.