Archives for August 2020

August 31st Market Direction

The Dow traded lower while the NASDAQ traded higher, indicating there was no major change of investor sentiment in the current market trend. This merely indicates rotation of sectors. Gold has started to trade higher again, making the gold stocks a viable sector. LABU is a good indicator to illustrate the biotech sector is starting to show strength. The major advantage of candlestick analysis is allowing an investor to identify where bullish funds are moving to. Having this information dramatically improves the probability of having trades applied to the stock/sectors that will have better bullish results. Adding the analytical factor of candlestick signals and patterns to individual stock charts increases profitability when trading the candlestick patterns that are starting to breakout. This is not a difficult process. The high probability signals and patterns are easily identified.

The frypan bottom pattern is working exceptionally well during this uptrend. New fry pan bottom setups are identified in MCRB and TUP. NIO is currently benefiting from the frypan bottom trajectory. There is a very simple trading rule when entering a frypan bottom pattern. You can stay long as long as the trend continues to trade above the T line. Last week, numerous J-hook patterns are performing very well. Our recommendation tomorrow on TRIL will be based upon wave three of a J-hook pattern confirmed today. Recognizing when a pattern breakout is about to occur provides the optimal entry point, whether buying stock or options. This produces a trading platform that minimizes having to sit in a trade waiting for it to perform. A pattern breakout is the exact point for entering a trade knowing that it is going to perform well right at that time.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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August 31st Daily Market Comments

The nature of the market remains the same, the NASDAQ is trading higher Today while the Dow is trading lower. This is providing a trading environment where each individual stock/sector is the primary analytical factor. The trend continues as long as there is not any major reversal signal in the indexes continue to trade above the T-line. Gold stocks are picking up strength Today. Fry pan bottom patterns are still producing good profitability.

 

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August 27th Market Wrap-Up

The candlestick investor has a comforting benefit when putting on a trade, using candlestick signals. The probability of a profitable trade is greatly in their favor. Probabilities! That is an important definition. Candlestick signals and patterns produce high probability results based on hundreds of years of historical results. Not only are the probabilities of being in a correct direction, but the magnitude of the strong signals and patterns produce much greater profitability than merely up trending stocks during an up-trending market. Common sense logic produces a profitable trading strategy for candlestick investors. The signals and patterns show when a high probability trades set up is in progress and the signals and patterns also can be visually analyzed to see when that signal or pattern is not producing. This allows for the proverbial cutting your losses short and letting your profits run.

Convergence analysis is the accumulation of multiple buy formations, adding credibility to a buying decision. This is illustrated in today’s trading of MDT. A gap up through the 200 day moving average produced a message signal. The gap up through the 200 day moving average also produced a bobble breakout. Yesterday’s trading illustrated the previous day’s message, profit-taking was over. Today’s positive trading illustrated the strength created by the message signal was continuing. Add the fact that MDT broke out through the 200 day moving average also confirmed a breakout of a large fry pan bottom pattern. A steady market trend, not producing any sell indications, produces the environment that allows investor sentiment to enhance the bullish pattern breakouts.

Chat session tonight at 8 PM ET with Guest Speaker Jeff Tompkins. Click here to register.

Good investing,

The Candlestick Forum team

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08/27/2020 Stock Chat with Jeff Tompkins

In order 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 08/27/20

At the end of Jeff’s training, he shared a special offer that was put
together just for you.

CLICK HERE to see more details & watch the video replay!

Take care and we look forward to seeing you at upcoming events.

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August 26th Daily Market Comments

The slow market uptrend is maintaining its indecisive nature, the NASDAQ trading higher, the Dow trading lower. However, this is still producing market conditions where individual stock/sectors are performing very well.

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August 25th Daily Market Comments

The Dow selling off, the NASDAQ holding steady, another waffling/consolidation day. Continue to take profits and roll into new sectors. The fry pan bottom pattern continues to work as well as the J-hook pattern. SHLL still performing out of the fry pan bottom after the extensive cradle pattern. BABA a good fry pan bottom breakout. The portfolio should be oriented toward the long side, but be aware of sector rotation.

 

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08/26/2020 Stock Chat with Stephen Bigalow & Cam White

In order 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 – Monday 08/26/20

Last night Cam offered his Nadex demo account, you may sign up on the link below.
 
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August 24th Daily Market Comments

Although the indexes are showing good strength, numerous stocks opened positive but immediately started selling lower. AAPL is trading higher but it is trading below where it opened. A number of stocks that had been in steady uptrends are showing hard selling Today. The strength of this market was based upon more tweets about a vaccine getting close to being developed.

 

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August 24th Market Direction

The up-trending market remains obvious. The indexes consistently trade above the T-line. The Dow has actually formed a J-hook pattern set up off the T-line. This implies wave three is about ready to start, more upside is expected. The advantage of being able to analyze the overall market trend with a high degree of accuracy allows the candlestick investor to pinpoint which stock charts are producing the strongest pattern setups. Currently, J-hook patterns are producing very strong upside potential. The cradle pattern that formed in SHLL produced an uptrend that incorporated a J-hook pattern. Today’s strong move in SHLL today has used those patterns to produce a big frypan bottom breakout pattern. The candlestick investor gains a huge advantage by being able to recognize the reoccurring price moves that are created over and over by human nature. The probabilities of being in the right place at the right time are dramatically improved utilizing candlestick patterns.

TWLO gapped up today, producing a frypan bottom breakout. Many stock prices will move up during an up-trending market. Many will not! But utilizing the information built into pattern setups allows investors not only to be in a bullish move, but participating in bullish moves that will be much stronger than mere up trending stocks in an up trending market. TWLO can be bought on positive trading tomorrow, indicating a frypan bottom breakout. Big profits can be made in both buying the stocks and/or having the optimal entry points for strong moves for option trades.

 

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.

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Weekly Watch list August 24th– August 28th, 2020

The persistent uptrend of the markets are providing numerous sectors showing good strength. Candlestick charts allow for identifying which of those sectors might be trading a little bit stronger than the rest. The homebuilder stocks can still be bought, TOL, PHM, BZN, TMHC. The Biotech’s remain strong CDXC, BEAM, CYCN, OSUR, ACIU, CRDF. And diversified electronics are showing good strength, BE, OESX, NEON. Identifying the strongest stocks in each sector is simplified by knowing the strength/results of individual candlestick signals and patterns.SHALL it is coming out of a very large cradle pattern. A cradle pattern illustrates indecision between the bulls and the bears. The footboard, or the breakout candle, demonstrates which direction investors finally made their decision. The results of a cradle pattern are usually very powerful, especially the longer the indecision/Doji’s was illustrated.

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