Archives for May 2020

May 28th Market Wrap-Up

The indexes produced some potential candlestick sell signals today. The Dow formed a Dark Cloud signal in the overbought condition. However, it is still trading an uptrend above the 3T line, let alone the T line. This implies there might be some profit-taking pullback but not necessarily a full-scale reversal. The NASDAQ, after forming a Hanging Man type signal yesterday, formed a Shooting Star Doji today. This makes the premarket futures a valuable insight into whether there’s going to be some profit-taking over the next few days. A lower open would imply profit-taking tomorrow. This allows the candlestick investor to make a much more accurate assessment as to whether to take profits in long positions and add a few short positions to the portfolio. Numerous bullish positions showed indecisive/bearish potential signals today. The position cultivation process becomes simple when witnessing potential sell signals in overbought conditions. This allows for candlestick investors to take some profits in the higher risk positions that already have produce good profits and move those funds, either to short positions or long positions that are just now showing bullish signals in the oversold condition. This improves the probabilities for producing better profit potential, with less risk.

Our positioning yesterday in TGI was based upon seeing a Fry Pan Bottom breakout going into earnings. Simple logic, candlestick analysis is the graphic depiction of everybody buying and selling during a specific time frame. If there is strong buying going into the close just before an earnings report, logic implies that people, that know what is going to occur in the company’s earnings, are buying. The probabilities will put you in the right position at the right time. The candlestick patterns continue to work well, Fry Pan bottom’s continue to show good profitability

 

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May 28th Daily Market Comments

Although the Dow opened much higher and immediately sold off, it was evident based upon the 10-minute chart that the buying was still in progress. The NASDAQ open slightly lower but immediately started trading higher. There still is not any evidence of very sentiment coming into this trend. Stay long. Numerous patterns are working extremely well. TGI frypan bottom breakout going into earnings provided good evidence that people in the know were expecting good earnings results.NBR fry pan bottom producing an uptrend with the expectation of filling the gap at $52. Utilizing the patterns during an uptrend produces much better profits than holding slow up-trending stock prices during a slow up-trending market.

 

 

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May 27th Daily Market Comments

Funds are shifting. The text are selling off but are recommendations in the regional airlines and the specialty retailers are producing good profits. The Dow is trading positive, although below where it opened and the NASDAQ is trading lower. The nature of the market remains the same, a slow uptrend overall but with day to day oscillation.

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May 26th Market Direction

Investor sentiment is looking for good news! That can be seen in the candlestick charts revealing a steady uptrend in the overall markets with good strength exhibited on good news days. Another announcement of a potential vaccine provides bullish sentiment, anticipating the virus debacle will soon be over. It can be assumed as long as the market indexes continue to trade above the T line and in the up trending channel’s, the uptrend will remain in progress. The longer the indexes continue to trade in a slow uptrend, the investor sentiment will change from expecting a retest of recent lows to anticipating if the markets can reach the high levels before the virus downtrend. Candlestick investors have the advantage of witnessing the strength of individual stocks based upon pattern breakouts. The breakouts become much more potent if the underlying market sentiment is not showing any bearish fears. Currently, the gap up in today’s trading produces better probabilities of the Dow heading for the 200 day moving average. This would imply a few more days of up-trending markets.

Crude oil prices continued to move higher. Having the ability to analyze a commodity provides additional evidence of a sector move. Oil stocks are continuing their up-trends. Simple visual analysis allows investors to participate in the strongest sectors, such as oil stocks as oil prices are recovering. The specialty retail sector has produced some very strong profits. Regional airlines showed good strength today with numerous best friend signal breakouts through resistance levels. Many stocks will move up during a slow up trending market. Knowing the strong bullish signals allows the candlestick investor to take advantage of the sectors/stocks that will show the most strength during an uptrend. Utilizing the T line in conjunction with candlestick signals provides a very high probability trend confirmation indicator. The strong profit combination is the identification of a strong candlestick bullish signal and then maintaining that position as long as it stays above the T line. This dramatically improves an investors profitability.

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The Candlestick Forum team.

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May 26th Daily Market Comments

Warm weather, sunny days, makes everybody more confident. Although the NASDAQ has been showing consistent uptrending, Today the S&P 500 is showing the greatest strength, gapping up through the 200 day moving average. The prognosis remains the same, as long as the indexes continue to trade above the T-line and well into the up-trending channel, investor sentiment will continue in a bullish trend. The Dow gapped up after Friday’s Doji, a best friend signal, implying the next target will be the 200-day moving average.

 

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Weekly Watch list May 26th – May 29th, 2020

The markets are currently trading in a trading channel, the Dow and S&P 500 are trading sideways while the NASDAQ is still in a slow upward trading channel. This makes for very profitable trading for the candlestick investor. It allows for simple candlestick scanning techniques that pinpoint the strongest sectors. Then he sector can be scanned to find the strongest individual stock chart patterns. This is basically putting all the stars in alignment. Obviously, investor sentiment keeps getting stronger with the expectations that the virus lockdown is eventually going to be released, letting the US economy get back to the conditions prior to the virus. Numerous sectors are producing some very good profits. Crude oil has produced a strong upward price move, making the oil stocks sector a strong profit area. Biotech stocks continue to produce good profits. Specialty retailers are still moving up strong. This coming week, anticipate application software companies to produce powerful moves. The advantage of candlestick analysis is that it allows investors to have funds in stock/sectors that are going to produce high probability, high-profit trade setups.

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May 22nd Daily Market Comments

The lack of overall movement in the markets still is creating some very strong pattern movements in individual stocks. Today DDOG is producing a J-hook pattern breakout. PS is producing a Doji sandwich slow curve breakout. And strength in Nvidia is continuing wave three. As long as there is no major selling in the indexes, assume the sideways/slow up trending market conditions will produce good strong candlestick signal/pattern breakouts. Stay predominately long, investor sentiment has not changed.

 

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May 21st Market Wrap-Up

The market trend remains with the same characteristics it has been exhibiting for the last two months, oscillating trading, up one day, down the next. Fortunately this is beneficial to the candlestick investor. The overall market trend remains in a slow upward direction, trading in a trading channel. As long as investor sentiment does not show any major reversal, the slow up trending nature, albeit oscillating from one day to the next, provides a much stronger trading environment. Without any evidence of severe selling, the bullish candlestick patterns, such as the fry pan bottom and the J Hook pattern, produce much stronger profitability without the fear of any strong selling in the overall market. Simple candlestick scanning techniques pinpoint which sectors are acting the strongest. Currently, the oil stocks have been moving up steadily with crude oil rebounding backup to the $34 area. Specialty retail stocks have been showing great strength. This week, the weeds stocks started showing strong bullish patterns. Having the visual candlestick evidence of where the most bullish strength is occurring allows investors to concentrate trading funds into the strong price moves.

Being able to identify which sectors are the strongest, the candlestick investor has the opportunity to scan those sectors to see which individual stock charts have the strongest bullish chart patterns. This is putting the stars in alignment. Identifying the bullish candlestick patterns produce two major benefits. First, it identifies with a high degree of probability the direction of a price move and secondly, those price moves will move with much greater strength than merely up-trending price moves in a slow up-trending market. Until there is a dramatic sell signal and a close back below the index T-line’s, it has to be assumed the uptrend remains in progress.

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Good investing,

The Candlestick Forum team.

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May 21st Daily Market Comments

The oscillating nature of the market trend remains in progress, up one day down the next day. The T-line remains the strongest overall indicator for the market/price trends. Continue to utilize the strong patterns, such as the J Hook pattern, as seen in HZO. Fry pan bottom patterns have been developing in the oil stocks. With the overall market trend still in a relatively indecisive stage, utilizing the patterns at least provide a visual expectation of individual stock prices even when the overall market trend is not compelling.

 

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May 20th Daily Market Comments

Note how the news is now directed toward the US economy opening back up versus the numbers about virus cases. Obviously investor sentiment is currently oriented towards the economy. The whipsaw action of the market was witnessed in yesterday’s selling at the end of the day, followed once again by bullish sentiment back in the markets today. Expect more whipsaw action but the NASDAQ is providing a good visual indication investor sentiment continues to move the markets in a slow upward direction. Stay predominately long, any short positions being held should have very compelling reasons.

 

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