Archives for June 2020

June 30th Daily Market Comments

Although the indexes have opened positive after yesterday’s bullish Harami’s, the T-line is still in play. A new uptrend will not be confirmed until there is a conclusive close above the T-line. However, numerous stocks are trading positive with good strength i.e. NVDA, AAPL, TSLA. Seeing strength in the big traders helps confirm the bullish sentiment has not left the markets.

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June 29th Market Direction

The major indexes formed bullish Harami’s Today, a very strong candlestick signal indicating the selling has stopped. However, all the indexes are still trading below the T-line. This allows for the candlestick investor to be prepared for the next trend movement. A failure of the bullish Harami, a lower open tomorrow, would continue to make the T line downtrend the viable analysis. A positive open tomorrow, confirming the bullish Harami, would add credence to the Dow supporting at the 50-day moving average and the NASDAQ supporting at the up-trending channel. Knowing what to expect, based upon how the markets open, allows for increasing or closing long and short positions in the portfolio.

Currently there are sectors that are producing good strong steady profits. Gold stocks, for example, are gaining strength because gold prices continue to slowly move positive. Having the ability to analyze the overall market trend, analyzing individual sectors, and then able to analyze which stocks are producing the strongest signals in that sector allows the candlestick investor to dramatically improve the probabilities of being in the correct trade at the correct time, putting all the stars in alignment. Knowing which candlestick signals and patterns produce the strongest results also increases the probabilities of being in profitable trades at the optimal entry points.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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June 29th Daily Market Comments

The market indexes are illustrating that although they are in a downtrend, trading below the T-line, the downtrend is not a full conviction selloff. The Dow may be illustrating a bullish Harami after it tested the 50-day moving average as a support level on Friday. This does not necessarily mean the downtrend is over, but the nature of the market, up one day, down the next day, is demonstrating the bearish sentiment is not very compelling. These market conditions still warrant having both long and short positions in the portfolio.

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Weekly Watch list June 29th – July 3rd, 2020

There are two very effective candlestick rules that produce extremely high probability trades. The T-line rule simply states that a trend has an extremely high probability of producing an uptrend if prices close above the T-line. If prices close below the T-line, the probabilities are extremely strong a downtrend will be in progress. The Doji rule simply states that prices will usually move in the direction of how prices open after a Doji. This easily produces very profitable trades when combining the overall market trend analysis along with individual stock price analysis. Adding short positions to the portfolio had been recommended for the past couple of days based upon the sell signals that had formed in the indexes. The Doji rule helped identify which stock positions to short immediately on a lower open based upon the set up of bearish Doji sandwich signals. With the market indexes trading below the T-line, the prognosis remains strong for more downside.

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07/02/2020 Stock Chat with Stephen Bigalow

To Download recorded sessions;

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 07/02/20

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June 26th Daily Market Comments

Yesterday’s positive trading in the indexes provided the prospects of any downtrend being a slow moving downtrend. The NASDAQ actually closed above the T line. However, the Dow and S&P 500 did not close back up above the T-line. Today’s lower open in the indexes affirmed the market trend, the assumption being that as long as the indexes were trading below the T-line, the prospects of the downtrend was likely. With the NASDAQ closing above the T-line and the Dow and S&P 500 closing below the T-line, the market trend was going to be indicated by the premarket futures are showing which direction the markets were likely to trade.

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June 25th Market Wrap-Up

Candlestick signals are created as a graphic depiction of what is occurring in investor sentiment. Candlestick patterns are the accumulation of investor sentiment illustrated in a recognized pattern that is reoccurring time after time. A major benefit of candlestick patterns is that it keeps an investor from getting whipsawed during oscillating markets. The frypan bottom patterns have produced inordinately strong and consistent profits. As witnessed, numerous fry pan bottom patterns continue to trade higher or flat even in a market that had sold off over 700 points. This is because investor sentiment was building up for other reasons in purchasing those positions, which was not concerned about the general market direction.

The Best Friend signal illustrates a new and powerful interest in a price move. This is illustrated from the Best Friend signal recommendation last week in ALT. Today it continued its uptrend based upon news that somebody had accumulated 20% of their stock. After a strong price move into the close today, the announcement has caused more buying in after-hours, up another 15 to 20%. This is not to illustrate great stock-picking ability, this is to demonstrate that the signals will illustrate when something very bullish is occurring in a price move. We may not know what is causing it, all we can analyze with candlestick analysis is that there is strong bullish activity. These are the positions we want to be participating in.

Chat session tonight at 8 PM ET with Andrew Keene. Click here to register.

Good investing,

The Candlestick Forum team.

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June 25th Daily Market Comments

The downtrend is still in progress after yesterday’s bearish gap down best friend signal in the Dow and S&P 500. The NASDAQ formed an evening star signal that close below the T-line.

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June 24th Daily Market Comments

Although the indexes are selling off, they are still in the sideways trading range. However, the patterns are still working, especially the wedge breakout patterns, i.e. MYOV,INO. The fry pan bottom’s are holding up well, NVAX up 14% today. The nondirectional trend of the markets are still providing numerous bullish candlestick chart pattern set ups.

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06/25/2020 Stock Chat with Andrew Keene

To Download recorded sessions;

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 06/25/20

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