Archives for November 2019

November 15th Daily Market Comments

Washington politics do not seem to be an adverse affect on investor sentiment. Today’s positive trading is showing strength coming out of consolidation areas of the past few days. Nothing has changed investor sentiment, the uptrend continues above the T-line. Climbing the wall of worry provides more evidence the bullish market is in progress.

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November 14th Market Wrap-Up

Identifying the uptrend in a continuation process is relatively easy utilizing candlestick signals. Price movements that create patterns that are identified by most investors are confirmed more quickly when evaluating the signals that show strength at pattern breakout levels. This was illustrated in a breakout in the Dow, S&P 500, and the NASDAQ when the next wave was confirmed with candlestick bullish signals. Because candlestick signals are the graphic depiction of human nature and the T-line is a natural support and resistance level of investor sentiment, utilizing the combination provides very high probability trend analysis. The current uptrend remains in progress as it is continuing to trade above the T line. The first analysis of profitable trading is identifying the overall trend of the market indexes. This becomes much more accurate when using the information built into candlestick signals and patterns.

All boats rise in a rising tide! However, identifying the candlestick signals and patterns that produce the highest profit trade results allows candlestick investors to make much greater profits knowing that the overall market trend is continuing in a slow uptrend. The best friend signal, the J-hook pattern, and the frypan bottom are just a few of the candlestick patterns that allow for much greater profitability than merely holding stocks that are moving up slowly in a slow uptrend.GH is showing good strength because of a best friend gap up. DXC provides very strong upside profitability based upon a best friend gap up confirming a frypan bottom breakout. Because candlestick patterns produce to results, a high probability of being in a profitable price move and the results of the price moves are much greater when the patterns produce breakouts, the profitability of an overall positioning of the portfolio is dramatically improved. The percentage of correct trades are dramatically improved based upon the high probability results of candlestick signals. Where most investors have decent portfolio returns during an uptrend, due to a majority of stocks moving positive while a few positions are trading negative, the candlestick investor has the benefit of greatly reducing the number of trades in the portfolio trading lower.

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

Good Investing,

The Candlestick Forum Team

 

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November 14th Daily Market Comments

Today’s mild selling does not show any change of investor sentiment. The indexes continue to trade above the T-line. The lack of any substantial direction in the market indexes provide a trading atmosphere that allows each individual stock chart to be the primary analytical factor. Stay predominantly long but have safety stop’s in place. When the market indexes start moving lethargically sideways, it becomes susceptible any good news or bad news to move the indexes one way or the other.

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November 13th Daily Market Comments

The Dow and the S&P 500 are trading flat or slightly higher after bouncing off the T line. The NASDAQ opened lower but is trading above where it opened, indicating buying is still occurring in this market. The transportation index is trading below the T-line causing an alert for watching the rest of the market indexes to start more selling.

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November 12th Daily Market Comments

The slow steady buying indicates calculated buying versus exuberance during this uptrend. The T-line remains a relevant factor for the market uptrend as well as individual stock prices. Numerous stock prices have consolidated mildly back to the T-line and then started back up. This indicates profit-taking occurring along the way. Continue to stay long as long as prices stay above the T-line.

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November 11th Market Direction

When the market indexes broke out through a resistance level that everybody else could observe, the candlestick investor has the advantage of seeing the bullish signal that was indicating the resistance level was not going to continue to act as resistance. At that point, high probability trend indicators, such as the T-line, continue to confirm that the next wave to the upside was in progress. Although the indexes have had a few days of indecisive trading, profit-taking, the overall trend evaluation is simplified by knowing that as long as the indexes continue to trade above the T-line, the uptrend remains in progress. Having that information allows the candlestick investor to enter trades that have probabilities of creating high profit situations with the underlying factor being there is no major selling pressure in the markets.

The lack of any selling indications provide very profitable trade set ups. Uptrending stocks stimulated by belt hold signals, such as our position in GOSS, dramatically improves the probabilities of not only being in the right direction at the right time but in very strong price moves. Holding steady Eddie positions as illustrated in our recommendations on VSTO and CARB allows for participating in the high profit exuberance at the top of steady price trends. Human nature works the same way time after time. Learning what patterns are created by human nature/investor sentiment puts the candlestick investor in situations where the probabilities are not only extremely strong of being in the right direction at the right time but also establishing positions that will produce excessive profitability.

 

 

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

Good Investing,

The Candlestick Forum Team

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November 11th Daily Market Comments

Today’s selling was somewhat telegraphed last week with numerous indecisive/Doji trading days in the indexes. With the >Doji days occurring in the overbought condition after a good uptrend, it provided suspicion of some profit-taking about ready to occur. Anticipate more consolidation but not necessarily a reversal in the market indexes as long as they continue to trade above the T-line. This provides opportunities to analyze each individual position in the portfolio to evaluate whether it is time to take profits and look for other sectors that are about ready to start uptrends. The biotech sector is showing good strength.

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11/14/2019 Stock Chat with Stephen Bigalow

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 11/14/19

 

At the end of the webinar Steve announced his upcoming 2-day training event which happens on November 16th and 17th.

Join Steve for 2 days of in-depth training and discover how to quickly identify, understand and profit from the Major Candlestick Signals.
During this event you will learn:
  • The 12 key Candlestick signals
  • Which signals occur most often
  • Which signals produce the biggest profits
  • Which signals produce the best possible trades
  • How to identify each of these profit producing signals
  • The logic behind the formation of these signals
  • How and why prices move
PLUS, you will also learn:
  • Why the candlesticks are a simple picture of human fear and greed, and how to exploit that to the fullest
  • How to tell with a quick glance at a chart if a stock should be bought, sold, or simply left alone
  • How to get a 2 to 3-day head start on every other trader using traditional Technical Analysis… with profits already in hand
  • How to catch the exact bottoms and tops of markets (most traders say this can’t be done… hogwash! I’ll show you how…)
  • And much, much more!
The information is composed of common sense investment perspectives built into easy-to-see graphic formations.
 
You will soon own valuable information you can exploit in any investment market for the rest of your life.
 
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November 8th Daily Market Comments

Although Today’s slight selling is relatively indecisive, not showing any drastic change of investor sentiment, there is another visual consideration. Note that the indexes have been forming numerous Doji’s over the past few trading days. Although the uptrend remains in progress, the indecisive trading of the past few days should act as an alert that there may be a change of investor sentiment coming. Stay long but keep safety stop’s in place.

 

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November 7th Market Wrap-Up

The markets moving to new high territory was not unexpected. Why? Because simple expectations of candlestick signals and patterns provide a good format for anticipating the continuation of a trend. Over the past few weeks the Dow was forming a frypan bottom pattern. The breakout level of the pattern was corresponding with recent market highs. Knowing what to expect coming out of a frypan bottom made the expectation of more upside easy to evaluate. Once the frypan bottom breakout occurred, utilizing the T line as a trend indicator provided additional confirmation that the Bulls were remaining in control. Knowing what to expect from specific signals and patterns allows the candlestick investor to be much more prepared and ready to move aggressively at levels that other investors might have some hesitancy. Candlestick analysis is not based upon the anticipation of results from fundamental information. Candlestick analysis is merely the graphic depiction of what occurs in investor sentiment time after time based upon the interpretation of results from fundamental analysis. This is a much more accurate assessment of what prices will likely do.

Utilizing candlestick patterns in conjunction with the T line keeps investors in profitable trades, reducing the flaws of emotional investment decision-making. The recommendation of staying with VSTO was based upon the lack of any sell signals and a close below the T line. Witnessing pattern setups allows investors to enter stock or option trades at the appropriate time as illustrated by the J-hook pattern set up in Tesla. Strong candlestick buy signals, such as the best friend signal, produces a high probability trade results as well as much better than average profit results. This can be seen in buy signals that were developed in PAYS, implying a big upside potential. Investor sentiment is the most consistent indicator for evaluating price movements. You do not have to be a sophisticated technical analyst to quickly learn the results of candlestick signals and patterns.

 

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

Good Investing,

The Candlestick Forum Team

 

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