You have probably been inundated with emails describing how the China virus has affected the markets. Does that do you any good? Wouldn’t you be more interested in knowing what the market is telling you now? Candlestick chart analysis provides a huge advantage. It provides information/signals that reveal when the buying has started.
Does that mean the whole market is starting to turn soon? Obviously not, but wouldn’t you like to visually recognize which stock/sectors are starting to be bought? Last week the signals revealed the grocery store stocks were getting bullish investments. This week another important sector is showing buying? When the markets are not showing any bullish resiliency and specific sectors are being bought, who do you think is buying? The smart money!
Simple candlestick chart analysis allows you to recognize and participate in price moves that are being formed by the smart money. This merely requires simple candlestick visual analysis. The most compelling factor I learned from candlestick analysis was that it was the actual decision-making process of investors, not projection, not conjecture, not sage advice, but actual decisions about buying or selling.
Oil and gas refineries and oil and gas pipelines are showing strong buy signals. Why would the smart money be buying those sectors? This is where you can apply reverse engineering. Why would the smart money be buying these sectors when crude oil has dropped to a multi-year low? Reverse engineering is stimulated by the buy signals, bringing attention to why those stocks are being bought.
March 23rd Daily Market Comments
Are any of the congressional bills to supply financial relief to the American economy going to work? Are the feds announcing that they would do anything that it takes to support the economy going to work? Who knows! What is more important is watching the candlestick charts to see when the investor sentiment perceives any of this support is going to work. Continue to stay predominately in cash.