Archives for January 2018

A government shutdown affecting the market trend? Apparently not. Reality suggests a shutdown of the non-essential functions of our government will illustrate how nonessential a majority of the government really is. Or the less government can stick their fingers in the American economy, the better off the economy is. Whatever the analysis, the market is currently indicating no change of investor sentiment, the uptrend remains in progress. This is why we recommend Trend Analysis.

Will there be a government shutdown? The markets don’t seem to care one way or the other. The Dow trading slightly lower and the NASDAQ trading higher. There is no change of investor sentiment. The uptrend remains in progress with all the indexes trading above the T-line.

Today’s backing and filling in the markets is not unexpected after a strong move in yesterday’s trading. But this also indicates the lack of wild exuberance in the markets, profit-taking occurring along the way. Continue to utilize the candlestick patterns that are still in progress.TSLA trend channel, NVDA j-hook set up, BITA classic pattern. As long as there is no major change of investor sentiment, candlestick sell signal, in the indexes, the candlestick patterns will perform with much higher profitability. Stay predominantly long but the short positions are also working.

A recovery day! Candlestick analysis provides a very clear signals and patterns to show a bullish trend or a bearish trend. Candlestick analysis also graphically reveals when there is no definitive trend analysis applicable. A recovery day, a day that offsets or partially offsets the preceding trading day that may have revealed a change of investor sentiment.

Though this is creating exciting commentary from the financial talking heads, it also is an alert. Where do most people buy? Exuberantly at the top! Currently there are no signs of a bullish letup but Today’s gap up creates a high probability alert for the possibility of a profit-taking reversal. Utilize your 10 minute chart to watch for signs of selling. Especially if the market indexes start coming back down through today’s open. Remember, the Dow has moved up quickly from the 25,000 level to the 26,000 level. Be ready to take profits.

Though this is creating exciting commentary from the financial talking heads, it also is an alert. Where do most people buy? Exuberantly at the top! Currently there are no signs of a bullish letup but Today’s gap up creates a high probability alert for the possibility of a profit-taking reversal. Utilize your 10 minute chart to watch for signs of selling. Especially if the market indexes start coming back down through today’s open. Remember, the Dow has moved up quickly from the 25,000 level to the 26,000 level. Be ready to take profits.

Despite all the political rhetoric, the markets keep moving higher. However, evidence of exuberance is now showing up. Today the Dow and the S&P 500 gapped up in the overbought condition. This is usually a warning to start looking for profit-taking. Until then, stay long. Numerous J-hook patterns are working extremely well. With simple portfolio cultivation, there is really no reason why the vast majority of positions shouldn’t be showing profitability. The length and magnitude of this market trend warrants taking profits in sectors that have run their course and moving into other sectors.

What is the talking heads topic Today? That we are probably in the late stages of an economic cycle. Is this relevant? Could that not have been analyzed three months ago, six months ago, nine months ago? Do not listen to anybody’s opinion. This is why we recommend Trend Analysis.