and The Candlestick Forum
A lackluster summer day in the markets, the Dow up slightly, the NASDAQ down slightly. This still makes identifying the strong sectors the top criteria. The housing stocks are acting well based upon good housing start numbers. TOL a good fry pan bottom breakout. Use the T-line as your final criteria. Take profits on iffy chart patterns, there are many good bullish patterns setting up.
The Dow gapped up after a Doji bouncing up off the T-line yesterday. This makes for a strong J-hook pattern which would imply more upside. The NASDAQ opened higher but trading slightly lower, nothing that would show any major change of investor sentiment. The overall market trend continues its slow uptrend, with profit-taking occurring along the way.
The candlestick powers signals produce big profits when the market condition is a slow up steady move. The strength of these signals is based upon the information built into candlestick signal formations that illustrate what is occurring in investor sentiment. The Japanese rice traders have illustrated the patterns and signals that reoccur in human nature. The combination of signals and patterns produce a category, the Top Ranked candlestick signals and patterns. This is merely the combination of candlestick signals in conjunction with price patterns that produce inordinately strong price moves. Additionally, the probabilities of those price moves occurring are extremely strong. This allows the candlestick investor to be in the best trades when the overall market is producing a trading environment that shows the lack of any selling sentiment. Join us this Saturday for a full day training on the candlestick Top Ranked signals and patterns. This will allow you to pinpoint the best trades to be in during a market trend.
The biotech’s and the gold stocks continue to work very well. Crude oil prices have maintained, allowing oil stocks to show good upside potential. There are numerous J-hook patterns in progress. Take advantage of the information built into the J-hook pattern, allowing you to calculate what wave three will produce as far as percentage return. ALT is at the beginning of a wave three of a J-hook pattern. The Biotech stocks will remain strong as long as the China virus remains in the headlines. These are market conditions that will allow for exceptional profits, 10%, 20%, 30% and greater are being produced with investor confidence remaining in the markets.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
The early Monday morning profit-taking saw the Dow use the T-line as a support level, The NASDAQ and the S&P 500 use the T-line as support and now trading positive. The nature of the market trend remains consistent with the past couple of weeks, specific stock/sectors continue to act well. The Biotech’s showed some early profit-taking today but now have seen the bulls step back in. The gold stocks remained positive. Continue to stay predominately long but be ready to roll out of sectors that are starting to show profit-taking and move funds to new sectors, sector rotation.
The slow market uptrend persists, as long as the indexes continue to trade above the T-line. Fortunately, candlestick analysis identifies what we call the “Top Ranked signals and patterns”. When you recognize and understand what each individual candlestick signal illustrates and can recognize when a pattern breakout is likely to occur, this puts the candlestick investor in high probability trades. However, there is even a more powerful candlestick trading process. The Top Ranked candlestick signals and patterns are a combination of the signals and patterns, . That produces more powerful profitable trades. They provide three major benefits. One, they produced an extremely high probability of the direction of a price move. Two, and more importantly, they illustrate when a very strong price move is about to occur. This combination produces optimal entry points for very strong trades. Finally, an additional benefit is that the price move, created by a top-ranked signal and pattern, will usually continue with good strength even if the market, in general, is trading flat or even negative.
The biotech’s as well as the gold stocks continue to produce good profits. The existing strong uptrends in these sectors are now in the process of producing classic patterns or J-hook patterns, indicating more upside. Uptrending markets will produce a lot of slow up-trending stock price moves. The advantage of candlestick analysis is the ability to recognize which uptrending price moves are going to be the strongest moves.
The indexes are trading flat Today, not showing any major change of investor sentiment. The transportation index continues to trade higher, indicating the lack of any overall very sentiment in this market. The Biotech stocks and medical supply stocks continue to move bullish with the virus statistics still in the limelight.INO wedge breakout,ALT J-hook pattern set up, TBIO fry pan bottom set up. When the markets are moving in a sideways/slow trending mode, simple candlestick scanning identifies which sectors/stocks are getting the most attention. Continue to hold the Biotech’s.
Although the indexes pulled back Today, they produced indecisive candlestick formations, a Doji type day. Each of the indexes has created the double Doji setup. This is consolidation but indecisive selling, usually implying profit-taking. The double Doji set up allows investors to enter trades immediately upon a positive open, showing that the consolidation is over. A positive open will usually produce a candle formation of the same magnitude as the candle prior to the double Doji’s. A positive open tomorrow, even though NFLX missed their earnings, would indicate the T-line is still acting as a strong support level.
Although the market indexes have been choppy in the slow uptrend, simple candlestick scanning techniques have revealed the strong sectors. The Biotech and medical supply companies have been acting extremely well based upon the virus situation. Crude oil prices have maintained at the $40 level. This is produced some good strong bullish charts, such as MTDR, HAL and APA. Gold stocks have acted well also. Having the ability to identify the very strong bullish candlestick reversal signals has two major benefits. It shows which stock/sectors are going to move positive and inordinate strength that will be exhibited in those sectors. The strength of a Top Ranked signal or pattern is likely to maintain strength even during bearish short-term moves in the indexes.
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Good investing,
The Candlestick Forum team.
Although the indexes are trading lower Today, they are trading indecisively lower, so far Doji type days. The transportation index is trading solidly positive.
Sector rotation! The NASDAQ continues to show profit-taking while the Dow is showing strength, trying to come up through the 200 day moving average on a potential bobble breakout pattern. The implication is there is not any change of investor sentiment as far as overall market direction, merely profit-taking from sector to sector. The Biotech’s and medical supply companies continue to act very well. Take profits in sectors that are turning over, there are new sectors starting to show strength.
July 23rd Daily Market Comments
Hard selling in the markets? The Doji type days indicate indecisive selling, profit-taking during the uptrend. The indexes continue to trade above the T line without any evidence of reversal signals. Additionally, there are sectors trading positive while other sectors are trading lower, an indication of a steady market. The home builder stocks are acting well, retail stocks are holding up well. Stay predominately long but in the strong sectors. The uptrend remains in progress.