Archives for February 2019

The lack of any bearish investor sentiment allows the uptrend to remain in progress. This makes individual stock charts that have been showing good bullish patterns to perform without the fear of a major market reversal, i.e.GTN. Crude oil prices continue a slow uptrend, making some oil stocks the target of good patterns. Stay predominantly long, the market uptrend continues until there is a definite sell signal.

Today’s pullback has pulled all the indexes back down to the T-line, actually creating bearish Doji sandwiches. It will be extremely important to see if the indexes can hold the T-line. The transportation index is selling off hard today, indicating the T-line did not act as a support level. As expected, the consolidation is still in progress after the gap up Doji witnessed in the Dow two days ago. Be prepared to close out positions if the market indexes do not show strength going into the close Today.LABU is acting well Today, indicating the biotech’s are picking up some strength.

The expected profit-taking, after yesterday’s gap up shooting star in the Dow, is in progress. Profit-taking is the likely scenario versus a full-scale reversal based upon the indecisive nature of today’s trading, a Doji type day. The uptrend is still considered to be in progress as long as the indexes remain above the T-line. However, the shooting star is showing stronger selling in the Dow than the other indexes. This would imply another day or two of consolidation back to the T-line. It will be important to see what type of candlestick signal the Dow produces Today, whether it is a strong selling day versus an indecisive profit-taking day. Be prepared to take profits on strong market weakness Today.

Bullish sentiment remains in the markets with the prospects of signing a trade agreement with sign. The uptrend continues but be careful, expect buying on the rumor, selling on the news. After signing the trade agreement ceremony, what next? Watch for profit-taking. That may still be a week or two in the future. Stay predominantly long as long there is no evidence of any change of investor sentiment, the market indexes continuing to trade above the T-line. Candlestick patterns are still working very profitably.

The final trend criteria? The indexes continue to trade above the T-line. Yesterday the NASDAQ use the T-line as a support level. Assumption? The uptrend remains in progress as long as there is not an identifiable candlestick sell signal and a close below the T-line. Continue to stay long in charts that have not shown a sell signal and a close below the T line. When the market remains in a steady slow uptrend, take advantage of the candlestick pattern breakouts. IE DLPH, LDOS.

The major indexes are trading lower so far Today but the transportation index is trading positive. This implies the lack of any overall consensus of the selling. Expect profit-taking in individual stocks/sectors, rotation is in a fact. The candlestick charts still pinpoint which stocks have very strong bullish chart patterns i.e. DLPH kicker signal/J-hook confirmation. Take profits in charts that are demonstrating weakness/sell signals. There are good shorts that can be added to the portfolio as seen in the DPZ chart last week. These market conditions warrant having both long and short positions in place.

Today’s positive trading, although not dramatic, continues to move the market index uptrend in a slow steady manner. This makes a trading environment that allows the candlestick charts/breakout patterns to work very well. Continue to stay long as long as there is no signs of exuberant buying coming into the markets.

The strong move in the Dow on Friday clearly indicated the T-line was going to be a relevant factor. It also brought the NASDAQ and the S&P 500 through the potential resistance level of the 200 day moving average. Today’s trading, although the Dow is trading slightly lower, the S&P 500 and the NASDAQ are trading slightly higher, still above the 200 day moving average. This merely indicates profit-taking occurring in the Dow after Friday’s strong day, but not any signs of weakness in the bullish uptrend overall. Continue to stay long, utilizing the strong candlestick signals/pattern breakouts for excessive profits.

Although the indexes are trading lower today, especially the Dow, they are forming indecisive trading formations as well as staying above the T line. Anticipate this being a profit-taking day as long as there is not any severe selling, taking the indexes back down below the T-line. Be ready to take profits on price moves that are starting to show selling, potential reversal signals in the overbought condition. Do not hesitate to take some profits, if the market continues higher after consolidation, there will be other bullish opportunities.

The markets continue to show good strength, the Dow confirming a J-hook pattern, the S&P 500 not resisting at the 200 day moving average. There is also intraday profit-taking occurring in many of the stocks that have had good strong price moves. Profit-taking is adding strength to the overall trend, diminishing exuberance. Continue to stay long but the emphasis still remains on individual stock charts. Be prepared for sector rotations. Crude oil prices are still in a steady uptrend, watch the oils.