Archives for March 2020

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.

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Weekly Watchlist March 23rd-27th, 2020

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.

 

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March 20th Daily Market Comments

A change of investor sentiment? There are subtle differences occurring. The violent gapping on the open one way or the other has diminished over the past two trading days. Although the Dow is not exhibiting any radical movement today, the NASDAQ has been trading solidly positive. Additionally, the biggies such as AMZN, AAPL NVDA etc. are trading positive. This does not necessarily mean were ready for a big rally, but it does indicate that investor sentiment may be settling down.

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March 19th Daily Market Comments

Once again, there is evidence of buying in the market indexes in the oversold condition. Yesterday the indexes form Doji’s and hammer signals. The distance away from the T-line remains in alerting factor. The probabilities are now indicating picking up some long positions. But this should be done on the basis of being quick to close out long positions if the potential reversal signals negate, meaning the sellers come back in with strength.

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March 19th Market Wrap-Up

When is it time to buy? Wouldn’t you like to have a set of indicators that revealed when a trend reversal was about to occur? You have it! Candlestick analysis is extremely reliable. You are able to visually recognize when investor sentiment is about to occur. This is becoming evident based upon the appearance of reversal signals in the major indexes. Why was Today’s bullish trading any more relevant than other bullish trading days during this downtrend, bullish trading days that did not create a reversal? They were not reversal signals. The Dow has formed to Doji days in a row. These are actually potential reversal signals in the oversold condition well away from the T-line. That makes the viability of the past two trading days much more important. This is information you will be able to utilize to enhance your analysis of price movements. Does this mean a reversal is about to occur? This means the probabilities of a reversal about to occur extremely strong.

Putting the stars in alignment, being able to visually evaluate whether there is a reversal about to occur makes scanning for bullish chart patterns the current strategy. There are numerous stock price reversals in progress. Although a major reversal has not yet occurred in the general market, it is evident that there is buying in specific stocks and sectors. You do not have to be a sophisticated technical analyst when using the graphics of candlestick charts. Simply viewing the candlestick formations produces high probability evidence the bulls are starting to buy. The simple visual analysis of a candlestick chart allows you to have much greater control of your own investing future. Take advantage of our chat session tonight, which will be incorporating candlestick reversal signals in conjunction with the T-line. This is information that dramatically improves an investors profitable probabilities. Chat Session tonight with Stephen Bigal0w. Click here to register.

 

Good investing,

The Candlestick Forum team.

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March 18th Daily Market Comments

The Dow 20,000 level is the perceived ultimate support level. It continues to hover in that area. This makes watching the 10 minute chart of the Dow very important. Obviously, continuing to sit in cash is the prudent strategy. Today’s lower open/trading remains in the observable nature of the overall market trend, up one day down the next continuation. Stay in cash until it becomes observable the market trend is reversing. There is no evidence of any change of investor sentiment of the current trend. Although this is a boring prognosis, it is better to be boring and keeping the powder dry for the next opportunity. The opportunity will come, be patient.

 

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March 16th Daily Market Comments

The market is down 1700 points, what does that tell the candlestick investor? The market opens down 2200 points, the candlestick graphics illustrate there is buying at these levels. That can also be clearly illustrated using the 10 minute chart. The indexes have moved excessively away from the T-line in the oversold area. Numerous stocks have moved excessively away from the T-line in the oversold area.

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March 16th Market Direction

The bottom is near! Candlestick logic provides the evidence to back up that statement. Investor sentiment produces the same results time after time. When investor sentiment can be correlated with confirming indicators, the probabilities of a reversal get very strong. The graphic depiction of human nature can be easily identified on a candlestick chart. It allows you to take the guesswork out of investing, eliminating emotions.You do not have to be a sophisticated technical analyst! You merely need to learn what the signals are demonstrating, when a reversal in investor sentiment is getting prepared. Before candlestick analysis came along, I would be crying in my beer, waiting for the market to turn around and stop my losses. Now, there is no anxiety. Simple candlestick signals showed when it was time to close out long positions and go short. That was about a month ago. That was not based upon having any great insights as to a strong selling market, it was merely identifying what the candlestick charts were revealing.

But now there are indications of a bottom in the market. The first analytical factor is when candlestick reversal signals indicate it is time to buy. But then there is a another important factor! Buy what? Fortunately the simple candlestick scanning techniques reveal which stocks or sectors are going to produce the biggest upside potential. Today indicated gold stocks were getting bullish sentiment. Medical stocks started showing strength also. Candlestick analysis creates a ‘reverse engineering process’. This is simply the visual alert provided by candlestick charts indicating where the buying is coming in. The reverse engineering process is merely analyzing why that sector is gaining strength. Bottom line, this process puts you in the right positions at the right time with a high degree of probability. We will be doing a special session on Wednesday night March 18, illustrating how to identify breakout moves and the strong reversal signals indicating which sectors are going to produce the biggest profits.Why is it so hard to buy at the bottom? Because we all have the same fears. Candlestick analysis changes all that. Because the graphics of candlestick signals reveal what is going on in investor sentiment, witnessing buy signals provides valuable information. It was revealing that somebody was overcoming the fear factor. WHO? The smart money! And we want to be trading with the smart money.

 

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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March 13th Daily Market Comments

Be careful, although the market is trading positive it was very evident that after the market opened up dramatically, it continued to sell off. Being able to visually recognize the dark candlestick formation after the open immediately reveals the buyers have not continued. This obviously demonstrates the lack of any bullish pressure yet. Remain patient, until there is an obvious bullish candles/signal, the injury to the bullish sentiment still remains. This may be another waiting day. It may take multiple stimulus programs to gain investor confidence. It may take compelling news about the virus diminishing to diminish the overall fear factor.

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03/19/2020 Stock Chat with Stephen Bigalow

To Download recorded sessions;

In order to download click on the link below, once on the video page you will right click on the video then hit “Save video as” to save to your files.

Stock Chat – Thursday 03/19/20

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