and The Candlestick Forum
The markets continue to demonstrate consolidation/profit-taking in the early part of the day. The transportation index has sold off hard today but appears to be using the T-line as a support area, the NASDAQ likewise. Assume bullish sentiment is still in control as long as the indexes trade above the T line.
The graphics of candlestick’s reveal much more powerful information about investor sentiment than any other technical charting. Today, the indexes traded positive again. The uptrend started with a very strong buy signal in the Dow, the best friend signal. Although today’s trading continued positive, the shooting star signal after gapping up on today’s open reveals the potential of a reversal/profit-taking level. Additionally, it is not unusual to see price movement, after breaching a potential resistance level, come back and test it to see if it will act as support. A lower open in the markets tomorrow would provide a high probability pullback to the 50 day moving average in both the Dow and the S&P 500. This would not necessarily indicate any major change of the current market uptrend but would be a high probability set up for some profit-taking to occur.
As the market continues higher, individual candlestick signal and patterns produce consistent profitable results. Not only are the results profitable, but the magnitude of the profits identified in candlestick patterns produce much stronger profit results. This is greatly beneficial to candlestick investors that recognize the reoccurring pattern setups that occur in human nature. Because candlestick signals and patterns create high probability trades set ups, it is not unusual to have a vast majority of a portfolio positioning working in the correct direction. This is not based upon any great stock picking ability, it is merely identifying how prices move based upon human nature.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
In order to download click on the link below, once on the video page you will right click on the video then hit “download” to save to your files.
Stock Chat – Thursday 06/13/19
At the end of the webinar Tom offered a 3-month membership of his “TBUZ Made Easy” service at a special introductory price.
The membership includes:
Click here for more information.
The job numbers did not affect the bullish sentiment of the market. The S&P 500 has now reached the first target of the 50 day moving average, the Dow is fairly close behind. Prepare for some profit-taking but as long as there is not a severe sell signal/severe selling, anticipate the bearish sentiment that had been in the markets for the past month and a half is now healing.
In order to download click on the link below, once on the video page you will right click on the video then hit “download” to save to your files.
Stock Chat – Thursday 06/06/19
At the end of the webinar last night Steve offered a “deeper-dive” comprehensive training event he’s doing on Saturday, June 15th, called “Big Bang Breakouts: Powerful Profit Potential from Explosive Price Moves.”
During this 3-hour comprehensive online training event, Steve will demonstrate:
Click Here to Register for the Workshop
Although the markets are trading positive, the expected profit-taking of yesterday’s big positive moves is occurring in many stock prices. This usually occurs early in the day. It will be important to see the indexes remain above the T-line Today. The change of investor sentiment in these market conditions are based upon tariff negotiations, making the change of a market trend relatively volatile on a day to day basis.
After yesterday’s Doji in the oversold area of the Dow, Today’s gap up/best friend signal has brought the Dow right back up to the T-line. The S&P 500 is also forming a best friend signal and still has some more upside to get to the T-line. The NASDAQ is currently trading near yesterday’s open after gapping up. This could be the bottom reversal signal. However, “could” is the qualifying word, the T-line still needs to be breached to indicate the confirming change of investor sentiment. It will be important to see how the indexes close Today but the magnitude of the buying at least reveals bullish sentiment starting at these levels. Short positions need to be scrutinized today to see if they are creating bullish signals in the oversold area, ready to be closed out.
Being long or short during market trends is more of a natural evolution of portfolio management when utilizing candlestick analysis. When the markets are in an uptrend and in the overbought condition, the appearance of candlestick sell signals in the market indexes create the process of changing a portfolio from being predominantly long to being predominantly short. This is not an instant transaction. As the market indexes start to show weakness, individual stock charts will also start showing weakness but not necessarily all at the same time. This creates a natural process for candlestick investors to start taking profits in individual stock price moves that are now showing sell signals. This does not result in any given day a portfolio changes dramatically from long positions to short positions. As each individual stock chart start showing weakness or a sell signal, the natural process is to move money to a short position based upon the confirmation of the market in general. This usually occurs over a multiple day process as the indexes continue to show the direction of the markets.
Is this a bad market? Not if the portfolio was oriented now to the short side. With the markets in oversold conditions, adding new short positions would be a higher risk trade, even though there is no change of the market trend, but sitting in existing short positions is the comfortable strategy. The graphics of candlestick charts provide a powerful analytical tool. It produces the visual analysis of what is occurring in investor sentiment. This allows the candlestick investor to be positioned in the correct direction of the market trend with an extremely high probability.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
June 10th Daily Market Comments
The uptrend continues its strong movement, with the Dow leading the uptrend. It gapped up well above the 50 day moving average after closing at that level on Friday. Profit-taking is likely to occur, especially when a resistance level is breached, the trend will usually come back down to see if the resistance level is now going to act as support.