Archives for April 2020

April 30th Market Wrap-Up

The graphics of the candlestick charts provide much more clarity for analyzing an overall trend but even more defining, the nature of a trend. The graphics illustrate that the current uptrend is still a very indecisive oscillating movement. One day trading up, the next day trading lower, but the overall trend can be identified as an uptrend as long as it continues to trade above the T line. Today the Dow traded lower while the NASDAQ trading just slightly lower but with an indecisive Doji type formation. This clearly reveals there has not been a major change of investor sentiment. These market conditions rely much more heavily on utilizing the T-line as the ultimate trend indicator. The major benefit of candlestick analysis is being able to identify candlestick patterns that are going to produce high probability/high-profit results. This analysis also allows an option trader’s to put on the best option strategy for specific candlestick patterns. Join us this Saturday, May 2, for a full day training on how to utilize the correct option strategy with specific candlestick patterns.www.stephenbigalow.com/options-strategies.

The Fry Pan bottom patterns are working very well in these market conditions. The Fry Pan Bottom pattern is very easy to identify. It allows an investor to enter a trade right at the optimal entry point. The Fry Pan bottom has very strong price move expectations. This creates two huge benefits for a candlestick investor. The direction of the next price move can be identified with a high degree of probability and the result of that price move is a very strong profit trade.

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April 30th Daily Market Comments

Selling in the morning, buying in the afternoon, the nature of an uptrend. Although the Dow has traded lower most of the morning, the NASDAQ has been trading slightly higher. This indicates no major change of the investor sentiment of the current trend. The nature of the market continues to indicate oscillating trading days, up one day, down the next, but still in a slow steady uptrend. The uptrend is revealed by the fact that the indexes are still trading above the T line. Concentrate on the sectors that are showing the strongest signals and patterns, i.e. oil and gas pipelines. The longer the indexes remain in an uptrend, above the T-line, the less whipsaw action will occur.

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April 29th Daily Market Comments

What is the final mental hurdle to get everything back toward normal? A vaccine! Gilead’s indication they are getting closer to a viable vaccine now allows investors to continue to project what will happen on the other side. Today’s bullish trading, if the markets close at the high end of their trading range, will produce trend kicker signals. This would imply investor sentiment is very strong, more upside. Stay long. Numerous fry pan bottom breakouts are occurring. The 50 day and 200 day moving averages are being breached to the upside, producing additional bullish confidence. Utilize the strong pattern breakouts during this uptrend.

 

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April 27th Market Direction

The overall market trend is relatively easy to evaluate using a simple combination, candlestick signals, and patterns in conjunction with the T-line. This allows for a very accurate assessment of the overall market trend. Additionally, this allows the candlestick investor to take advantage of price patterns that will produce the strongest returns during an uptrend. The J-Hook pattern has an easy price move calculation. Wave one will usually be the same magnitude as wave three. This creates the opportunity to be in strong price moves during a market uptrend instead of merely up trending prices during an uptrend. This also allows for easy to apply option strategies knowing what the magnitude of the next move of a stock price will be. Join us this Saturday, May 2 to learn how to apply the appropriate option strategy with the candlestick pattern. You will gain some valuable insights on how to maximize profitability with option strategies while at the same time dramatically reducing risk. Click here for more info.

The J-Hook pattern is producing some very strong profit potentials. Note how our recommendation on BLUE is a combination of a classic pattern with a bobble breakout/J Hook pattern right at the 50-day moving average. This produces the prospects of a very strong wave three that could take this price move from the $61 area up to the $85 area with a high degree of probability. The same pattern set-up can be seen in TSLA, producing a good option trade set up. Take advantage of the strength resulting from a J-hook pattern breakout as seen in our recommendations on NNA and INSG. These patterns have much better prospects of producing big price moves as long as there is not any major change of investor sentiment in the overall market trend. There are still numerous ‘experts’ predicting the market is going to selloff and test the recent lows. This is a very bullish sign. Let the market tell you what the market is doing!

 

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April 27th Daily Market Comments

Bullish investor sentiment is becoming more solidified with the Dow trying to get up through the50 day moving average, with a J hook type pattern. The NASDAQ remains above the 50 and the 200 day moving average, with the T line continuing to act as a bullish uptrend indicator. This uptrend is producing good profits especially in the biotech area. Sunshine, warm weather, and now a handle on how to slow down the virus statistics may be why bullish sentiment is evident. Stay predominately long.

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Weekly Watchlist April 27th – May 3rd, 2020

As long as the market indexes continue to trade above the T-line, the probabilities indicate the uptrend is still in progress. Look for the Dow to test the 50-day moving average. The NASDAQ is trading well above the potential resistance levels of the 50 day and the 200-day moving average as well as the T-line. The T-line being the primary factor, the bulls are still in control. We recommended staying with the biotech’s and computer-related stocks. Other sectors that are working well are the food and beverage, FIZZ, KHC, THS, all have good charts. The telecommunication area is picking up strength, GTT, ALLT, CALX. Specialty retail TSCO, W. The mining stocks, gold and silver, still are acting strong. The strength of specific sectors are providing some very strong option trades. Join us on May 2 for a full day training on applying the appropriate option strategies with the appropriate candlestick bullish patterns. The simplicity of identifying the strongest candlestick signals and patterns also incorporates simple option strategies. You do not have to be a sophisticated trader. We keep it very simple so that you do not have to be spending more than 20 minutes each evening identifying the best trades and setting up the best option trades. Come join us, you will get way more than your money’s worth. Click here for more info.

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April 23rd Market Warp-Up

When the markets traded positive Today, it produced the possibility of a bullish flutter kicker signal, one of the strongest bullish candlestick signals. However, although the market indexes did trade positive, they formed Doji days, illustrating indecision. The indexes are currently trading above the T line but the Doji day continues to produce the possibilities of the markets trading lower again. Remember the Doji rule! Prices/trends will usually move in the direction of how they open after a Doji. This makes trend analysis relatively simple. The markets will probably move in the direction of how the the indexes open tomorrow. A lower open, causing a selloff, would bring the indexes back down below the T line. The NASDAQ is still trading relatively strong, not only above the T line but also above the 50 day and 200 day moving averages. Fortunately for candlestick investors, a sideways moving market still allows for the identification of strong bullish charts or strong bearish charts. Currently the medical supply and medical healthcare stocks are acting well. The oil stocks are showing good bottoming action.

Being able to identify what type of signal/pattern is developing an individual stock price allows investors to put on appropriate option strategies. Most investors think buying calls in an uptrending stock is the best way to make a profit. That is not always true. Simple option spread strategies have much better profitability, as well as probability, when knowing what the next price move should be. Join us on May 2 for a full day training on the appropriate option strategies. They are not difficult. You gain a whole new perspective on how to put high profit option trades in place using easy to apply spreads and calls.

 

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

Good investing,

The Candlestick Forum team.

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April 22nd Daily Market Comments

Why was watching the premarket futures important Today? Although the indexes showed strong selling yesterday, implying a possible reversal, another factor was very important. The nature of the market! As witnessed over the past two months, the nature of the market has been dramatic whipsaw’s.

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April 20th Daily Market Direction

Whipsaw! But the bottom line remains that the indexes continue to trade above the T-line. Anticipate the 50 day moving average as the next target for the Dow. The NASDAQ continues to trade above the T-line, the 50 day moving average, and the 200 day moving average. The biotech’s were showing strong chart set ups and immediately traded higher even though the Dow opened down 500 points. Keep in mind, if one index is trading positive and another index is trading lower, investor sentiment has not changed. The existing trend remains in progress.

 

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April 20th Market Direction

The market indexes continue to trade above the T-line. This provides high probabilities the uptrend remains in progress. However, the nature of the market is difficult to trade. It is still maintaining the characteristics it has exhibited for the past two months, oscillating during the trend. Up one day and down the next day. The markets are still very sensitive to outside influences. Today crude oil prices continued to go to low’s not seeing for decades. Fortunately, as mentioned in our stocks to watch YouTube videos of Sunday night, simple scanning techniques pinpoint which sectors are going to act the strongest. Biotech stocks and retail stocks were mentioned. Retail stocks did not move but numerous chart pattern confirmation provided strong profits in the biotech stocks. Identifying candlestick signals at pattern breakout levels dramatically enhances being in the right direction at the right time. This basic candlestick analysis is what is called 2+2. This is identifying a signal that illustrates a candlestick pattern breakout confirmation.

Numerous biotech stocks showed fry pan bottom breakouts. In spite of the markets trading lower today, candlestick scanning techniques provide a supply of profitable trades setups. Pattern setups moving toward observable resistance levels provides the candlestick investor with very easy trade entry strategies. This creates a trading program that consistently puts investment funds into high probability/high-profit trades. Join us this week revealing how the kicker signal, the strongest individual candlestick reversal signal, can be utilized for identifying strong profit trades.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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