Archives for July 2020

July 31st Daily Market Comments

Although the NASDAQ and S&P 500 closed above the T-line yesterday, the Dow still closed below the T line. This made the sideways prognosis of the market indexes the likely expectation. The Dow continues to trade lower, probably looking for support at the 50 day moving average again, continuing the sideways drifting mode of the markets. These market conditions make individual stock movements choppy, up one day down the next, making the T-line the ultimate trend confirmation indicator. Hold long positions that have not produced sell signals and are continuing to trade above the T line.

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July 30th Market Wrap-Up

The sideways mode of the market is very beneficial to the candlestick investor. It allows for scanning for either strong bullish or bearish individual stock chart patterns, knowing the price movement will not be affected by an overall market trend. Currently in this slow up trending market, there has been very strong pattern breakouts. Fry pan bottom patterns have produced some very big profits. This can be seen in the homebuilders stocks,TOL, PHM. Bullish flutter kicker signals have created strong profit trades. When the market is not moving with great aggressiveness in one direction or the other, the big profit trades are going to be the results of candlestick pattern breakouts. This is the result of identifying where human nature starts producing big price moves.

The strength of the earnings in the big traders, AMZN, AAPL, FB, GOOGL should produce more bullish confidence in the markets tomorrow. A positive open in the market indexes tomorrow would produce more evidence the NASDAQ and the S&P 500 are going to continue to trade above the T line. Positive trading in the Dow could bring it back up above the T line. Currently, with a couple of the indexes trading above the T line in the Dow trading below the T line, the market trend analysis is still evaluated as a sideways mode. However, there are still numerous profitable pattern breakouts in progress. Take advantage of the probability factors that result in strong candlestick patterns.

 

Chat session tonight at 8 PM ET, Option Spread Strategies. Click here to register.

Good investing,

The Candlestick Forum team

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July 30th Daily Market Comments

Is there any way to protect from negative tweets? No, unfortunately that is part of the risk of being in the market. The indexes continue to be influenced by the T-line. Yesterday the Dow closed at the T-line but not above it. The NASDAQ and the S&P 500 closed above the T-line but needed more confirmation today. What does today’s trading reveal about the market trend? Still sideways. And often asked question, ” do you hold during earnings?” If the smart money is buying going into earnings, that will tell you something. I.e. UPS. Although the indexes are trading much lower, there are still good strong bullish patterns, NET bullish flutter kicker.

 

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July 28th Daily Market Comments

The NASDAQ and the Dow did not close above the T-line yesterday. This would have provided some suspicion that the downtrend may not be over. Today’s lower trading appears to be causing the market to have a slow drifting downtrend/profit-taking versus any major change of investor sentiment

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July 27th Market Direction

The major indexes closed below the T-line on Friday. The NASDAQ had a strong sell signal, a bearish Doji sandwich, but the trading of Friday, although lower, was trading above where it opened. This gives the candlestick investor a much quicker insight as to whether the selling was very strong or not. Today’s positive trading brought both the Dow and the NASDAQ back up to the T line. The S&P 500 and the transportation index both closed above the T line. This would imply the lack of any major selling pressure in the markets. However, the Dow and the S&P 500 still need to close back up above the T line to confirm that bearish sentiment is not in control. It will be important to see how the markets trading tomorrow. A lower open, followed by lower trading, failing to get the Dow and NASDAQ up above the T line will continue to imply profit-taking/downtrend of this market.

Fortunately, candlestick patterns reveal which sectors are remaining strong. The housing market is showing strength with numerous housing stocks producing Fry Pan bottom breakouts. Kicker signals are producing good strong trades. The strength of some sectors and the strength of specific signals also reveal a lack of overall very sentiment participating in the current markets. The Best Friend signal, producing a good uptrend in our recommendation of DKS, produced a Best Friend breakout going into wave three. The strength of candlestick signals and patterns allow an investor to identify which sectors and stocks are producing the highest potential profit trades.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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July 27th Daily Market Comments

Be careful! Although the markets are trading positive Today, they are still below the T-line. Be careful of Today’s bounce. Take some profits in the gold stocks, after a long steady Eddie move,GFI and HMY have gapped up significantly. Consider taking off half the positions.SOGO, take profits, it has gapped up 48% today. Watch to see what happens in regards to the T-line Today in the indexes.

 

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Weekly Watch list July 27th – July 31st, 2020

The NASDAQ formed a bearish Doji sandwich and closed below the T-line, this past week. Although the Dow did not create a sell signal, it also close below the T-line. This produces high probabilities that the market could be selling off, possibly moving back down toward the 50 day moving average. There are strong sectors identified, the restaurants and the homebuilders are producing strong bullish signals, fry pan bottom breakouts. Gold stocks continue their uptrends with a very simple trading analysis, stay long as long as the prices do not close below the T-line. These are market conditions that warrant having both long and short positions in the portfolio.

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07/30/2020 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 07/30/20

At the end of the webinar Steve offered his Weekly Options Edge Quarterly Membership for a special discounted price.

Here’s everything included in the Weekly Options Edge advisory service:

  • 24 Training Webinars throughout the year – FREE to members – valued at $7000 Year
  • 50 Weekly Options Edge advisory selections – completely reviewed in video format
  • One monthly live webinar for WOE Members-only – Q & A with Steve to focus on your needs
  • Private Weekly Options Edge Live Trading Room – enjoy a live chat room with fellow WOE friends

Click here for more information. 

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July 24th Daily Market Comments

After closing below the T-line yesterday, it was anticipated there would be more selling Today, especially in the NASDAQ. However, note that although the markets are trading lower, they are currently trading above where they opened. This would imply the selling is more likely profit-taking than a full-scale change of investor sentiment. Take profits on charts that are trading below the T line but be ready to see which sectors may be the new strong bullish sectors when the markets come back up above the T line.

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July 23rd Market Wrap-Up

Investor sentiment indicated that it had changed with a strong sell signal in the NASDAQ, a bearish Doji sandwich, and a close back below the T line. This occurred when the other indexes also sold off. The Dow and the S&P 500 closed back down right on the T line. This will make it very important to see what the premarket futures are indicating tomorrow. Keep in mind, the probabilities become extremely strong that a downtrend will be in progress after witnessing a candlestick sell signal and a close below the T line. A weaker open, in the premarket futures tomorrow, would confirm the selling is continuing. Having the ability to accurately assess the direction of the market allows an investor to scan for the appropriate trade setups, either long or short.

A major advantage of candlestick signals and patterns in their development based upon the accumulation of human nature. As demonstrated in a number of our recent recommendations, observable patterns continue to provide relatively strong bullish moves in spite of the major weakness of the market. The advantage of participating in what we call the Top Ranked signals and patterns is threefold. First, it creates an extremely high probability of being in the right direction. Secondly, the magnitude of the move is going to be much greater than mere up trending stocks during an uptrend. And finally, because of the strength of the price move created by bullish sentiment, the price movement of an individual stock will likely continue its uptrend or at least remain flat when the overall market has turned in the other direction, giving more time to get out of a trade profitably. Join us this weekend, Saturday, July 25, for a full day training on recognizing and implementing the Top Ranked candlestick signals and patterns. If you are going to spend the time and energy to locate good trades setups, you should maximize your efforts by learning which of the top-ranked signals and patterns will work the best for your trading. You will not be disappointed! You will gain some very valuable insights as to which price moves are going to produce the strongest potential moves and learn when the exact optimal entry point presents itself. Click here for more info.

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

Good investing,

The Candlestick Forum team.

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