Archives for November 2017

Nothing has been changed, today’s relatively flat trading in the markets are demonstrating the uptrend remains in progress. This has made some candlestick breakouts very profitable. JUNO and BLUE have produced some big gains due to the bullish flutter kicker. Breakout patterns produce much stronger gains when it can be analyzed that the overall market is not showing any dramatic change of direction. The slow market movement still makes having both long and short positions in the portfolio of viable trading strategy.

The devil may be in the details! Everybody anticipates the tax cuts should boost the market, but the details of the tax cut may throw the politicians into a tizzy. The anticipation of how hard it will be to get the tax bill passed may have a deterrent on the market trend. This still requires attention to each individual stock chart, with long positions not demonstrating reversal signals and staying above the T-line while short positions should not be demonstrating buy signals and a close backup above the T-line. This needs to be watched more diligently based upon the potential of political rhetoric whipsawing the markets. Be ready to go more into cash if the markets start showing choppy reactions of political blubbering.

The tax plan delayed for a day, bad? Today’s bullish trading in the markets may be the acknowledgment that a tax plan is about ready to be presented. Whatever the reason, it doesn’t matter. The markets continue to demonstrate bullish sentiment. Is this exuberance at the top? Less likely, due to the fact that the S&P 500 and the Dow have been in a sideways consolidation for the past week and a half. If today’s bullish trading remains strong going into the close, that would indicate the next leg of the uptrend is likely in progress. The trading strategy remains the same. Stay predominantly long but have some short positions in the portfolio as a safety factor. There are numerous chart patterns providing good trades in both directions.