and The Candlestick Forum
The trading between Christmas and New Year’s is usually very light. However, the candlestick charts still provide valuable information on what is occurring in specific sectors of the market. The retailers are getting bullish attention indicating Christmas sales were very good i.e. BOOT, FL, DDS, ZUMZ.
Chart for DRI
Over the next 13 weeks, Darden has on average historically risen by 4.7% based on the past 22 years of stock performance.
Darden has risen higher by an average 4.7% in 11 of those 22 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 Darden, based on historical prices, is 1 week. Should Darden stock move in the future similarly to its average historical movement over this duration, an annualized return of 116% could result.
Chart for MDGL
Over the next 13 weeks, Madrigal Pharmaceuticals has on average historically fallen by 8.5% based on the past 10 years of stock performance.
Madrigal Pharmaceuticals has fallen lower by an average 8.5% in 7 of those 10 years over the subsequent 13 week period,corresponding to a historical probability of 70%
The holding period that leads to the greatest annualized return for Madrigal Pharmaceuticals, based on historical prices, is 1 week. Should Madrigal Pharmaceuticals stock move in the future similarly to its average historical movement over this duration, an annualized return of 184% could result.
Chart for ZBH
Over the next 13 weeks, Zimmer Biomet Holdings has on average historically risen by 8.5% based on the past 16 years of stock performance.
Zimmer Biomet Holdings has risen higher by an average 8.5% in 12 of those 16 years over the subsequent 13 week period,corresponding to a historical probability of 75%
The holding period that leads to the greatest annualized return for Zimmer Biomet Holdings, based on historical prices, is 10 weeks. Should Zimmer Biomet Holdings stock move in the future similarly to its average historical movement over this duration, an annualized return of 48% could result.
Although the indexes have consolidation days, even creating potential reversal signals, one significant factor remains constant. The indexes have not been able to close back below the T-line. As a matter of fact, the 3T-line continues to act as a support. The validity of this trend is much more easy to visually analyze for the candlestick investor. Until there is a strong candlestick reversal signal and a breach of the T-line, there has not been any change of investor sentiment, the uptrend remains in progress. Numerous steady Eddie charts continue to produce good gains in the portfolio, i.e. ALK, GDS, SKX,
Today’s lethargic trading in the markets indicates more profit-taking versus a reversal. While the Dow and S&P 500 are trading relatively flat, the NASDAQ is trading lower and the transportation index is trading higher. This merely indicates shifting of funds versus any major exodus in the markets. The nature of the market still remains very stock/sector specific. Continue to take profits in stocks that are start to show reversal signals. There are other sectors starting to rotate into strength. This is why we recommend Trend Analysis.
After the gap up in the indexes yesterday, in the overbought area, it was not unexpected to see some profit-taking today. Today’s selling appears to be more profit-taking than any major reversal of investor sentiment because the candlestick signals are not showing any compelling sell signals. The underlying analysis is still that the indexes are trading above the T-line. The lack of any decisive selling continues to allow candlestick chart patterns to produce good profits, i.e. RIOT and the message signal in SQM. Continue to maintain positions that are not showing reversals but do not hesitate to take some profits in charts that are illustrating overbought conditions that have moved too far away from the T-line. There will always be some more excellent buy signals elsewhere.
Chart for FOX
Over the next 13 weeks, Twenty-First Century Fox, Inc. has on average historically risen by 10.9% based on the past 23 years of stock performance.
Twenty-First Century Fox, Inc. has risen higher byan average 10.9% in 16 of those 23 years over the subsequent 13 week period,corresponding to a historical probability of 69%
The holding period that leads to the greatest annualized return for Twenty-First Century Fox, Inc., based on historical prices, is 8 weeks. Should Twenty-First Century Fox, Inc. stock move in the future similarly to its average historical movement over this duration, an annualized return of 48% could result.
Chart for FOXA
Over the next 13 weeks, Twenty-First Century Fox has on average historically risen by 6.4% based on the past 23 years of stock performance.
Twenty-First Century Fox has risen higher byan average 6.4% in 15 of those 23 years over the subsequent 13 week period,corresponding to a historical probability of 65%
The holding period that leads to the greatest annualized return for Twenty-First Century Fox, based on historical prices, is 5 weeks. Should Twenty-First Century Fox stock move in the future similarly to its average historical movement over this duration, an annualized return of 29% could result.
Chart for GWPH
Over the next 13 weeks, GW Pharmaceuticals Plc has on average historically risen by 21.8% based on the past 4 years of stock performance.
GW Pharmaceuticals Plc has risen higher byan average 21.8% in 3 of those 4 years over the subsequent 13 week period,corresponding to a historical probability of 75%
The holding period that leads to the greatest annualized return for GW Pharmaceuticals Plc, based on historical prices, is 15 weeks. Should GW Pharmaceuticals Plc stock move in the future similarly to its average historical movement over this duration, an annualized return of 145% could result.
Chart for NDSN
Over the next 13 weeks, Nordson Corporation has on average historically risen by 5.8% based on the past 37 years of stock performance.
Nordson Corporation has risen higher byan average 5.8% in 20 of those 37 years over the subsequent 13 week period,corresponding to a historical probability of 54%
The holding period that leads to the greatest annualized return for Nordson Corporation, based on historical prices, is 6 weeks. Should Nordson Corporation stock move in the future similarly to its average historical movement over this duration, an annualized return of 31% could result.
Why is the market continuing higher with such great strength? The tax bill? Corporate earnings? Worldwide economic expansion? It doesn’t matter. The analysis of the candlestick charts allows us to participate in the right market direction at the right time. In this case, the right direction has lasted for over 12 months. Big profits have been made over the past 12 months. Not because anybody was a clever stock picker, but because the candlestick signals and patterns demonstrated what the market was doing. Big profits are made not by trying to speculate on where the market will be in X number of months in the future, but analyzing what the markets are telling you now. The uptrend remains in progress, that is all that needs to be known. Staying with the strong chart patterns will obviously be where the high probability/high profit trades will occur.
Yesterday the market indexes created potential sell signals, bearish engulfing signals, but they did not close below the T-line. Confirmed selling would have been exhibited had the markets opened lower Today. The strength in Today’s trading, as long as it remains going into the close, reveals the T-line is still a major support factor. The uptrend remains in progress as long as there is not a severe selling day going into the close today. Continue to analyze each individual stock chart on its own merits with the portfolio still oriented toward the long side.
Nothing has changed the uptrend except for the overall strength of the market might be showing it is getting ready for a rest. Although there is the continuation of polar opposite analysis of the political agenda in Washington, obviously Fox News and CNN have dramatically opposite reporting, the underlying factor is demonstrated by the overall market trend. This is much more important for analyzing results because the buying and selling of the markets are the actual decisions being made versus the political commentary of the media. Investor confidence remains bullish. The expectation of the retail sales for Christmas is another sign of whether the economy is strong or weak. Observe the obvious, when the checkout lines are excessively long, people are spending money.
December 27th Daily Market Comments
Although Today’s market trading is not very dynamic, it is still consistent with the overall trend. The T-line continues to act as a support area. Any expected tax selling is more than likely going to be pushed into next year. This would make the current trend likely to persist up until Friday of this week. The slow uptrend continues to provide for the opportunity for strong candlestick charts to continue to move in a bullish direction. As demonstrated in this slow uptrend of the market, candlestick charts reveal which stocks/sectors are providing the strongest profitable trades. The visual analysis Incorporated into candlestick charts takes the guesswork out of which stocks/sectors the big-money is investing in.