Archives for September 2017

Market consolidation? The Dow, S&P 500, and the NASDAQ are trading slightly lower, but only slightly. Nothing yet has shown there is any candlestick reversal signal, indicating a change of the current uptrend. But another important factor is illustrated in the transportation index, it is trading up strong Today after showing support on the T-line yesterday. Simple market trend evaluation indicates when one index is continuing to trade strong while other indexes are soggy, this is merely consolidation. Continue to hold long positions as long as they are maintaining above the T-line and have a few short positions in the portfolio.

Nothing has changed in the trend of investor sentiment, a slow steady uptrend with the most obvious strength remaining in the Dow. The only caution is that the Dow has now had a trend move after it broke out through the wedge formation of the same magnitude of the last strong trend prior to the wedge formation. This would suggest profit-taking should start occurring relatively soon. Until there is evidence of profit-taking, continue to utilize the bullish candlestick charts until sell signals appear.

Today’s Bullish trading continues the uptrend in the Dow but more importantly moves the NASDAQ into new high territory after Friday’s Bullish Engulfing Signal right on the T-line. The uptrend remains in progress until there is a definite reversal signal. This is making many of the candlestick patterns performing extremely profitably. IE. NVDA, SGMO, BLCM. Frypan Bottom patterns and J-hook patterns are producing very strong profits over the past few days of trading. Stay predominantly long.

Where do the most powerful candlestick formations occur? At obvious breakout levels everybody else is watching. J-hook Patterns off of obvious support levels i.e. BLCM. Best friend breakouts through resistance i.e. ABEO. McMuffin pattern off of support, through resistance, i.e. BGNE. Knowing what individual signals and patterns demonstrate as far as investor sentiment, and seeing them occur at obvious breakout levels allows candlestick investors to get into high profit/high probability trades set ups before everybody else. Add the fact that candlestick charts provide much more clarity as far as analyzing the overall market trend, as the current uptrend is clearly visible based upon the Dow breaking out through a wedge pattern and the NASDAQ forming a Kicker Signal off the T-line this past week, dramatically improves the probabilities of being in the right direction at the right time. Stay predominantly long.

The market indexes opened lower today but now trading above where they opened, indicating after the initial selling on the open, the Bulls are still moving the current breakout trend in a positive direction. The candlestick patterns continue to work well, the Frypan Bottoms i.e. DVAX and the J-hook/Bobble Breakout Patterns i.e. CRC, AXTI. When the market trend acts with consistency, as seen after the Best Friend Breakout of the Dow, the High Profit Candlestick Signals and patterns produce high probability profitable trade set ups.

Although the indexes are trading relatively flat today, candlestick formations reveal that they are trading above where they opened. This graphically illustrates that there is still buying occurring. Continue to stay long as long as the indexes remain above the T-line, as well as the 3T-line. The breakout through the resistance levels on Monday still provide visual evidence that there is new Bullish sentiment in the market trend. Stay predominantly long.

Although the market indexes are trading positive, they appear to be slightly indecisive Today. The S&P 500 is currently forming a Doji, the NASDAQ opened higher but is trading lower than where it opened, indicating some problem getting through the upper resistance level. The Bullish sentiment is still in this market. Some consolidation after Yesterday’s strong trading day is to be expected. Continue to stay predominantly long with the market indexes breaking out through resistance levels. Any short positions should have compelling reasons to stay short. This is why we recommend Trend Analysis.