and The Candlestick Forum
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Stock Chat – Thursday 01/02/20
The indexers continue a slow uptrend. However, the transportation index has sold off hard Today, back to the 50 day moving average. This needs to be addressed because it reveals one area where selling may be starting to take place. It will be important to see if the transportation index trades back up well off its bottom of the trading range, indicating profit-taking in that area versus the first signs of selling. Currently the uptrend continues but note that the trading days are becoming more indecisive, Doji type days. Continue to stay predominately long but have safety stops in place.
Although the markets are creating relatively flat Today, they are indicating there is no major change of investor sentiment. The transportation index is showing good strength Today, implying the bulls are still the dominant force. Continue to stay predominantly long but keep safety stops at logical levels that would indicate the bears of taking control. It is always good to have stops in place in case of unexpected events/announcements. Numerous pattern breakouts are providing good profits. Utilize the candlestick patterns to enhance bullish price moves.
The Dow was attempting to form a bullish Doji sandwich breakout today. It closed at the lower end of its trading range but still up 100 points on the day, this might cause a little bit of consternation but the NASDAQ in the S&P 500 after opening much higher continued to trade toward the top and of there trading range. The true definition of a bullish market is one that continues to move higher no matter what the bad news might be i.e. impeachment. The strength of today’s trading provides the prospects of another wave to the upside after the recent consolidation in the markets. This is allowing for very strong price moves at breakout levels. Breakout patterns such as AAPL and NVDA not only reveal more upside potential in each individual stock chart, but confirms the overall investor sentiment in the markets remain strong. When the market analysis reveals an up trending bias, the candlestick investor has a huge advantage by being able to identify which chart patterns are going to produce strong breakout moves. Continuing to cultivate the strongest chart patterns into the portfolio dramatically improves the overall profitability of the whole portfolio. When most investors have both profitable positions and losing positions in a portfolio, hoping the losing positions will eventually start moving up, the candlestick investor has a huge advantage by being able to constantly position funds into high profit expectation positions.
We will conduct a “Members Only” chat session tonight at 8:00 pm EST.
Good Investing,
The Candlestick Forum Team
The positive trade in the DOW is forming a doji sandwich Breakout. Stay long, with prospects of wave 3 a good probability.
SYNA can be bought confirming a wave 3 of a J-hook pattern. EXAS can be bought , bobble breakout/fry pan confirmation. Chat session tonight at 8 pm ET.
Sell the news? Phase one of the China trade talks apparently has been finalized. After trading higher, the indexes are now trading flat. Trading Above the t-line indicates an uptrend in progress, but it may be a slow uptrend. Stay predominantly long and take profits when charts start showing weakness.
The evidence of bullish sentiment was reinforced by the positive trading today that did not let the indexes trade back below the T-line. If you do your own research, you will find the extremely accurate results of a trend upon seeing a candlestick buy signal and a close above the T-line producing excellent probabilities of an uptrend remaining in progress until you see a candlestick sell signal and a close back below the T-line. Last week, the indexes gapped up above the T-line. The Dow consolidated back to the T line over the next few days. Today’s positive trading revealed the Dow could not close below the T-line. Candlestick signals are the graphic depiction of investor sentiment. The T line is a natural/Fibonacci support and resistance level of human nature. When you combine the two, you have an extremely high probability trend indicator. A simple assessment can be made when the indexes are trading above the T line, the uptrend is still in progress.The strength of today’s trading is compounded by the fact that profit-taking occurred during the middle part of the day followed by buying coming back into the close. The uptrend remains in progress, the T line is verified that fact. Continue to stay predominantly long. Note that there are numerous highs of the day occurring in individual stocks going into the close. Investor sentiment is not hard to evaluate based upon the candlestick formations.
PACB can still be bought on positive trading tomorrow, Doji sandwich.
SFIX did not execute today but can still be bought on positive trading tomorrow, frypan bottom breakout confirmation.
DAN stay long, good frypan bottom breakout.
The frypan bottom patterns and the J-hook patterns, two of the most recognizable candlestick patterns, are producing extremely good profits.TSLA has been moving up steadily confirming a frypan bottom pattern, even though the overall market trend has been choppy during that timeframe. Numerous candlestick charts have been producing strong profits during this slow uptrending market coming back up above the T line. The major advantage of utilizing candlestick patterns is twofold. First it produces high probabilities of being in the correct direction and secondly, the magnitude of the move is usually extremely strong profit trades, much stronger than merely uptrending stocks during an uptrend. Will trade talks with China get confirmed? It doesn’t matter! The investor sentiment perceives the future looking better for investments based upon anticipated results as well as all the other factors investors make when making buying or selling decisions. Chat session tonight at 8 PM ET.
Chat session tonight at 8 PM ET. Click here to register.
Good Investing,
The Candlestick Forum Team
The confirmation that the T-line was going to act as a support required a strong bullish day, exactly what is occurring in Today’s trading. The further the indexes move above the T-line, the more evidence is shown that investor sentiment which is what drives a trend continues to remain bullish. The uptrend continues. Short positions need to indicate continued weakness to stay short. Otherwise witnessing buy signals in downtrends become good stopped out areas. The portfolio bias should obviously be toward the bullish side.
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Stock Chat – Thursday 12/19/19
At the end of the webinar Eric offered his comprehensive options training course at a huge discount.
Click here for more information.
December 19th Daily Market Comments
Politics! Blah! Investors are apparently not concerned about impeachment ramifications. The bullish trend continues but there is some rotation/profit-taking starting to become evident. The strategy remains the same, continue to stay predominately long but always have safety stops in place. The longer this uptrend persists, the more effective candlestick scans reveal which sectors are getting toppy and which sectors are starting to bottom out and move higher. Use this process for taking profits and re-allocating funds where the new bullish strength is indicated.