Archives for October 2019

October 31st Market Wrap-Up

The Dow remains the most sensitive of the indexes, reacting with much more activity on bullish or bearish news. Today’s Chicago manufacturing numbers sent the markets lower with the Dow showing the most weakness. However, by the end of the day the NASDAQ and the S&P 500 closed toward the upper end of their trading range, utilizing the T-line as a support level. The uptrend remains in progress as long as the indexes continue to close above the T-line. The NASDAQ and the S&P 500 show more resiliency now that they have broken out through the upper resistance level of the sideways trend. The Dow and the transportation index are showing the most weakness based upon candlestick reversal signals. This could pull the NASDAQ and S&P 500 lower if the Dow shows more weakness from this level. The final criteria is still the T-line. The indexes need to remain above the T-line to confirm the bullish sentiment is still controlling the slow uptrend of this market.

The strength of individual chart patterns continue to produce good profitability, even when the overall market conditions do not show overall strength. Our recommendation on CVET was based upon a cradle pattern breakout. The 2+2 evaluation uses the expected results of a cradle pattern as well as a positive open confirming the cradle pattern by trading above the T line. The combination of candlestick patterns in conjunction with T-line expectations dramatically improves the probabilities of being in the correct trade at the correct time. This was also illustrated in Today’s positive trading in our recommendation of this past week in UCTT, forming a Doji/hammer signal supporting on the T-line followed by positive trading today clearly illustrates the bullish strength remains in this uptrend. Candlestick analysis is merely the identification of what investor sentiment does with a high degree of probability and utilizing confirming indicators that improve the probabilities.

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

The Candlestick Forum Team

 

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October 31st Daily Market Comments

Although the indexes have been in a steady uptrend, the strength of investor sentiment is still tentative based upon the sensitivity to the latest news items or tweets. The Dow has yet been able to break out of the sideways wedge formation although the NASDAQ and the S&P 500 have just climbed up through the upper resistance level. Currently, the Dow has formed a strong bearish engulfing signal here the top of the trend channel. If it closes below the T-line, this will be a strong indication the wedge formation is still in progress. Unfortunately, this will make a lousy trading environment, a lack of continuity in either bullish or bearish trends. A close near the lower end of the trading range would warrant moving heavier into cash.

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October 30th Daily Market Comments

The markets are in a wait and see mode, waiting for the Fed announcements. However, the markets are not demonstrating any change of investor sentiment, continuing the uptrend. There are a small number of talking heads still warning of a market selloff the same as 2008. This is very bullish. Take advantage of the signals and patterns that are working. The frypan bottom pattern is producing great results, i.e. UIS, CVLT. ROKU is in the process of developing a Doji sandwich breakout.

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October 29th Daily Market Comments

Today’s early trading reveals consolidation. Why is this anticipated as consolidation versus a reversal? The Dow and S&P 500 are trading slightly positive while the NASDAQ is trading lower. Numerous individual stock charts, although trading slightly lower, are trading indecisively, Doji type formations. This illustrates that although there is some selling, it is not with any great urgency. Continue to stay predominantly long. Today may not be a riproaring day but it is still maintaining the upward trend of the markets, staying above the T-line.

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October 28th Market Direction

 

 

 

The patterns contribute tremendously when analyzing the overall market trend. The NASDAQ is doing a J-hook pattern up through the breakout level of the wedge. The S&P 500 has gapped up through the all-time high resistance level and continuing to trade higher. The Dow is forming a J-hook pattern implying it is heading to the upper resistance level. The 2+2 analysis clearly indicates continued bullish sentiment based upon candlestick patterns at obvious breakout levels. Until there is a definite candlestick reversal signal, stay predominantly long. Knowing what a candlestick pattern illustrates and witnessing that pattern occurring at levels that everybody else’s watching allows the candlestick investor to execute positions with much more aggressiveness. The NASDAQ demonstrated a J-hook pattern confirmation as it was going through an upper resistance level. The S&P 500 gapped up through the all-time high breakout level. The graphics of candlestick signals and patterns merely illustrate the logic built into investor sentiment. When prices/trends gap up through an obvious resistance level, it merely indicates that investor sentiment did not have any concern about those resistance levels, implying price movement moving much higher.

The information built into candlestick patterns and signals allow for an extremely high probability analysis of a price move as well as the identification of a high profit price move. Witnessing candlestick signals in the development of a candlestick pattern dramatically improves the probabilities of participating in a high profit move. Candlestick analysis has the benefit of anticipating the results of investor sentiment that has performed the same way time after time for the past 400 years. Profiting from candlestick patterns is merely identifying high profit results of human nature. For example, witnessing a belt hold signal as a frypan bottom pattern is developing as illustrated in our recommendation of GOSS, dramatically improves the probabilities of profiting from that pattern. This is merely applying the probabilities of being in the correct direction of profitable trades a high percentage of the time.

We will conduct a “Members Only” chat session tonight at 8:00 pm EST.

Good Investing,

The Candlestick Forum Team

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October 28th Daily Market Comments

The patterns contribute tremendously when analyzing the overall market trend. The NASDAQ is doing a J-hook pattern up through the breakout level of the wedge. The S&P 500 has gapped up through the all-time high resistance level and continuing to trade higher. The Dow is forming a J-hook pattern implying it is heading to the upper resistance level.

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October 25th Daily Market Comments

Today’s positive trading indicates the T-line is still acting as a bullish support level for the Dow. However more important, the NASDAQ is currently forming a bullish left/right combo right at the upper resistance level, producing the prospects of a bullish J-hook pattern breakout. This is a strong indication of the markets starting to move into new high territory. Stay predominantly long, any short positions require very compelling bearish charts to stay short. As long as the indexes continue to trade above the T-line, bullish sentiment is still the underlying factor in this market.

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10/31/2019 Stock Chat with Bennett McDowell

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 04/25/19

It’s no secret that traders need to have strong psychology to be consistently profitable. Download your Free Psychology “Chapter Reprint” from Master Trader Bennett McDowell, and get your trading psychology stronger than ever! 

Click here for FREE instant access!

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October 24th Market Wrap-Up

The wedge pattern in the indexes was being confirmed on a daily basis by the indecisive trading of the indexes. The Dow has demonstrated its lack of direction by trading relatively flat for the past four trading days, keeping the Dow well into the wedge formation. The NASDAQ and the S&P 500 have been trading in a slow upward direction revealing a very important factor. Those indexes are currently nudging the top resistance level of the wedge formation. This provides the prospects of the NASDAQ and S&P 500 breaking out through the sideways trading of the past few months, indicating a new wave to the upside. The upper resistance level will be an important factor to watch in tomorrow’s trading. A deterrent could be the strong sell off from the earnings report in AMZN. The implication of a wedge formation is that there is not any decisive bullish or bearish force to move the indexes out of a sideways trending formation. This also implies the sensitivity of investor sentiment, likely to react either bullish or bearish upon news or tweet related information. When a trend is in progress, negative news will not create a dramatic affect the change a strong bullish trend or positive news will have less the fact when occurring in a bearish trend.

When the markets do not have a definable trend, the advantage of utilizing candlestick charts is identifying the strong bullish or bearish signals, then applying the trend analysis with the T line. Currently, numerous bullish recommendations have been maintaining a steady Eddie trend as long as they continue to trade above the T line. This simple analysis, based upon human nature, allows for profitable trading in market conditions that would whipsaw most investors out of positions.

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

The Candlestick Forum Team

 

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October 24th Daily Market Comments

The characteristics of a market trend are much more easily anticipated when analyzing what each individual daily formation represents. The Dow has been trading indecisively and in a sideways direction for the past two weeks. This was further confirming the wedge formation of the overall markets. Until there is strong evidence, either bullish or bearish, it can be easily evaluated that there is no direction in this current market. This continues to make each individual stock/sector the top priority as far as analyzing where the bullish or bearish pressures appear. Candlestick signals, patterns, and the T-line make for the high probability price movement analysis. The steady Eddie positions continue to move in the correct direction as long as they stay above the T-line.

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