Archives for December 2017

The J-hook pattern in the indexes is still in progress, implying more upside. Especially if the trading continues above the T-line as well as the 3T-line. The continued strength of the market is making the short positions less attractive, stopping out of short positions. The steady uptrend’s of the market are making the high probability/high profit candlestick patterns more viable, i.e. MIDD confirming a bobble breakout. USAT FP breakout. This makes for very easy entry strategies for both stocks and options.

The market indexes are trading above the 3T-line, let alone the T-line. The classic pattern in the Dow is in the process of confirming on today’s positive trading. The NASDAQ is trading flat while the S&P 500 and transportation index continue to trade higher. There is no evidence of any profit-taking/selling occurring in this market. Also, there are no signs of exuberant buying. The steady uptrend reveals a much more solid trend based upon profit-taking occurring along the way. The prognosis remains the same. Stay predominantly long but it is prudent to have a few short positions in the portfolio. Specific sectors/stocks are working extremely well. RIOT is currently producing very strong profits. GLYC has gapped up producing a breakout of a Frypan bottom. This market remains extremely profitable as long as you maintain the strong candlestick chart patterns.

The underlying nature of the market remains the same. Although Today’s trading is relatively lethargic so far, there is no evidence of the sellers taking control. With the indexes continuing to trade above the T-line, the uptrend remains in progress. A subway bombing in New York City does not create a ripple in investor sentiment. Continue to utilize the chart patterns that are demonstrating the strongest price moves. Numerous J-hook patterns are still in progress.

The J-hook pattern is the predominant analysis in both the indexes as well as numerous individual stocks. The positive trading in the indexes today are further confirming that the T-line is still acting as a viable trend support. The NASDAQ gapped up well above the T-line Today, indicating an extremely high probability the uptrend will continue and may continue with some excessive force. Stay predominantly long but be nimble. This market still requires trading specific stocks and sectors.

Today’s positive trading in the Dow and S&P 500 is making the T-line (T-Line Trading) and obvious relevant factor. The NASDAQ, after a left/right combo yesterday is trading backup right to the T-line. If the markets close near the high end of their trading range today, it has to be evaluated that bullish sentiment is now offsetting the profit-taking/consolidation of the past few trading days. This makes Today’s close very important, indicating whether the T-line is going to show a reversal of the consolidation.

The weakness in the markets are producing numerous sell signals in individual stock prices. These market conditions are making it clear that there is profit-taking/selling occurring. Analyze each stock chart position. If it is showing sell signals, close out the position. There will be plenty of good buy charts after the market finishes its consolidation. The short positions should be producing good profits during this pullback. Expect more downside as the indexes continue to head down toward support levels.

The market indexes are back in an indecisive mode, the Dow closed at the lower end of its trading range yesterday even though it ended up closing positive. This lack of buying is much more visually identifiable based upon the candlestick formations. The current market indecisiveness is illustrated with weakness following through in the Dow today while the NASDAQ is in a bullish bounce after some hard candlestick sell signals of the past few days. Expect some more sideways/lower consolidation for the next few trading days. Any long positions need to have compelling reasons to stay long. Short positions should be experiencing good profitability.

The results of the tax bill are being seen in the Dow and the transportation index. The S&P 500 opened higher but is currently trading below where it opened, not showing follow-through strength. The NASDAQ opened higher but is currently trading much lower, forming a potential bearish left/right combo. Although the hanging man signal on Friday, formed by bad news reporting, still is a graphic depiction of what was occurring in human nature. These market conditions warrant being prepared to take profits on charts that are showing signs of weakness/sell signals. Stay predominantly long but short positions have been working very well, NVDA, NFLX, AMZN. Analyze each stock chart on its own chart patterns. This is why we recommend Trend Analysis.