and The Candlestick Forum
Today the market indexes are consolidating, the Dow and S&P 500 stalling at the 50 day moving average. The NASDAQ and the transportation index, although selling off a little bit, are still well above the T-line. Expect some profit-taking/consolidation today and probably some waiting to see how tonight’s debate goes. Continue to stay long in bullish charts. Numerous fry pan bottom patterns have now evolved into J-hook patterns, creating the classic pattern.
How does the candlestick investor enter trades before the rest of the crowd? Simple! Candlestick reversal signals, appearing in the market indexes, immediately reveal there has been a change of investor sentiment. As illustrated in Friday’s trading, the indexes formed MorningStar signals in the oversold area. The NASDAQ formed a MorningStar type signal and close above the T line. The S&P 500 formed a MorningStar signal and close at the T-line. The Dow formed a MorningStar signal and close just below the T-line. This made entering bullish trades very easy. If the premarket futures revealed the markets were going to start trading positive on the open, the individual stock charts that revealed strong bullish signals are patterns could be entered immediately. This creates a huge advantage. It allows the candlestick investor to enter positions that are showing pattern setups that will produce the strongest price moves during an uptrend.
The J-hook pattern was evident in a number of individual stock charts. WKHS, SGMS, DKNG all had J-hook pattern setups.SRNE has good J-hook pattern potential based upon a positive open tomorrow, creating a Doji sandwich/J Hook pattern breakout. This type of analysis not only puts investors in high probability trades but also in trades that will produce much stronger profits based upon the pattern expectations. The positive trading in the market indexes today produces high probable results of more upside. The place to have investment funds is in individual stock chart patterns that are going to produce excessive profits. The T-line is a very informative trend indicator tool. Join us on October 16 42 days of training on how to use the T-line to produce high probability profitable results.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
The MorningStar signal that formed in the indexes on Friday are obviously confirming today, with positive trading and bringing the indexes up above the T line. The NASDAQ, which did close above the T-line on Friday, has gapped up today above the 50 day moving average. Provided the indexes maintaining their strength going into the close, today’s confirmation produces very strong probabilities that a new uptrend is in progress. Short positions should be closed if revealing reversal signals in the oversold area. Long positions can be added, especially in those sectors suggested in the weekends YouTube.
The market indexes showed some bullish reversal signals on Friday, the MorningStar signal. Although the NASDAQ did not form a pure MorningStar signal, it had a MorningStar characteristic and the NASDAQ closed above the T line. The Dow and the S&P 500. A positive open on Monday would indicate the confirmation of the MorningStar signal as well as showing the T line is not acting as a resistance level anymore. This would imply to start taking profits on short positions that are showing bullish signals and start adding long positions again.
The gaming stock sector is acting well SGMS, PENN, DKNG, GME, MGM, RCL. The biotech sector is also showing some good buy signals,SAVA, NVAX, INO, SRNE, TEST, MRNA.The oil and gas sector is showing a lot of weakness, be ready to short, COG, RRC, CNXM, APA, REGI.
The appearance of a MorningStar signal with stochastics in the oversold area at least indicates a possible bounce and/or upon strong confirmation the next wave starting in the up trending markets
Today’s positive trading does not indicate any major change of investor sentiment in the markets. The indexes may be starting to base but as long as the indexes continue to trade below the T-line, the downtrend has to be assumed to still be in progress. Maintain short positions but there are long positions that continue to trade above the T-line. This is still a market environment to have both long and short positions in place.
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Stock Chat – Thursday 09/24/20
At the end of the webinar, Steve announced his upcoming “Fight the Fear: Eliminating Emotions” event, which he’ll present on Saturday, September 26th.
This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.
Click here for more information.
One of the most powerful trend indicators is the T-line, a natural support and resistance level of human nature. Add that to the graphics of candlestick signals and patterns which are the graphic depiction of investor sentiment, you have created an extremely accurate trend indicator combination. The mental process is very simple. If you see the market indexes closing below the T-line, the mental strategy should now be oriented toward closing out long positions that are showing weakness and establishing short positions. This process allows you to consistently be in correlation with the overall trend of the market, putting the probabilities in your favor.
There will be stocks that go up in a down market but obviously there will be more bearish opportunities with more strength in a down trending market. The same is obviously true in an uptrend, the uptrending stocks are likely to have much more strength. Identifying positions to start shorting is a very simple visual process with candlestick analysis. Signals, followed by a gap down’s, are very high probability short trades. Add the additional confirmation of a gap down in price closing below the T line produces additional confirmation the bears are definitely in control. Having the ability to recognize the direction of a price trend with a high degree of accuracy allows investors to keep their emotions out of their trading decisions. Join us this Saturday, September 26 for a full day of applying candlestick logic and information into your analysis that eliminates emotional decision-making. The effectiveness of any trading strategy is the combination of applying the mechanics of the trade and having the correct mental status to trade successfully. You will dramatically improve your trading abilities and profitability with this combination. www.stephenbigalow.com/fight-the-fear
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
Good investing,
The Candlestick Forum team
The indecisive trading so far Today is reflective of the indexes still trading below the T-line. The downward pressure remains in progress with the indexes trading below the T-line, which diminishes the strength of bullish sentiment. This continues to make a market environment where analyzing specific stock/sectors remains the top analytical factor. Maintain positions that continue to remain above or below the T line, on both long and short positions.
The T-line rule is still in effect, the downtrend in the indexes will continue as long as the indexes are trading below the T-line. There are a good number of stocks still trading bullish but it is prudent to have a good number of positions short in the portfolio. The downtrend will continue until there is a strong reversal signal in the indexes. Stay oriented toward the short side. Any long positions should have compelling reasons to stay long.
September 30th Daily Market Comments
The presidential debate – a nothing burger! But the prospects of a stimulus package still viable is adding strength to the markets. Obviously, the long positions are working well Today, many trading well above the T-line. Short positions are starting to waiver, be ready to take profits on additional strength. The trend analysis is very easy, as long as the indexes are trading above the T-line, investor sentiment remains bullish. The next wave should be starting.