Archives for November 2020

November 30th Market Direction

Today’s trading provided more evidence of the choppy nature of the overall market trend. The Dow closed below the T-line. However, the NASDAQ, the S&P 500, and the transportation index all trading back up and closed above the T-line. This provides the candlestick investor with the evaluation that there are currently strong sectors in this market trend as well as weak sectors. The benefit of candlestick analysis is that simple scanning techniques allow for identifying which of those sectors are acting strong and which are acting week. This provides the opportunity to be profiting from both long and short positions in the portfolio.

Currently, biotech’s have been producing very good profitability over the past few weeks. The pot stocks are starting to show good bullish chart patterns. At the same time, clothing stocks are starting to show good bearish patterns. Evaluating the signals and patterns allow an investor to see which strong sectors are starting to take profits, i.e. the electric vehicle sector, and which sectors canal be rolled into because of strength. The graphics of candlesticks are merely the identification of where investor sentiment is moving to and moving from. Using the simple graphics from candlestick analysis allows investors to have an extremely high probability of being in long or short in the appropriate sectors. Additionally, when identifying the strong sectors, each sector can be broken down into individual stocks to identify which of those stocks are producing the best bullish signals and patterns. This is what puts the probabilities consistently in a candlestick investor’s favor.

Chat session tonight at 8 PM ET, identifying the best sectors.

Good investing,

The Candlestick Forum team

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November 30th Daily Market Comments

Today’s selling in the market indexes continue to reveal the lack of decisive sentiment in the overall market. Specific sectors are trading strong i.e. biotech’s, while at the same time other sectors are in profit-taking/selling mode i.e. the electric vehicle sector. Trading in this market condition warrants being very diligent as far as scanning to see which sectors are still in uptrends and which other sectors are in position to start taking profits. Trading time frames should be much shorter until a definite trend consistency appears. Take profits quickly.

 

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Weekly Watch List November 30th – December 4th

The markets remain in a uptrend, the NASDAQ showing the most strength while the Dow is slow uptrend/sideways. This implies that not every sector is moving in a bullish direction. Fortunately, simple candlestick scanning techniques reveal which sectors are acting the strongest. The electric vehicle industry continues to show good chart patterns, BLNK, GP, HYLN, FSR can be bought on continued strength. The Biotech’s continue to show good J-hook patterns, indicating more upside MRNA, TRIL, VXRT, INO, ABUS. The telecommunication sector is starting to show strength, IDT,HEAR, ADTN, TMUS, KT, MBT, AMX. The stars are put in alignment when buying the strong sectors/strong stocks in those sectors. The slow pace of the uptrend also indicates shorting stocks with good strong bearish patterns, i.e. GOOS with a bearish flutter kicker signal. The T-line continues to remain as a valuable trend indicator. As long as the market indexes stay above the T-line without any significant candlestick sell signal, assume the slow uptrend remains in progress.

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November 27th Daily Market Comments

The Friday after Thanksgiving usually is not a very robust trading day, most investors are not around. However, the existing trading you see illustrates which sectors are still going to act well. The electric vehicle stocks are starting to show J-hook pattern set ups. The vaccine related stocks such as MRNA are showing strong J-hook pattern confirmation. The markets continue to remain very sector specific. Government policies will make some sectors strong while making other sectors bearish. Enjoy the holiday.
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November 25th Daily Market Comments

The trend analysis remains the same, a slow choppy uptrending market. This is making each individual sector/stock the top criteria. When the market indexes are up one day, down the next, this reoccurring pattern indicates a lack of bullish or bearish consensus. Each existing position should be maintained with the T-line as your ultimate criteria. The portfolio strategy remains the same, predominately long but with a few short positions.

 

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November 24th Daily Market Comments

The indexes bouncing well up above the T-line with the Dow pushing once again towards an all-time high. Profit-taking in the electric vehicles today but strength coming back into oil stocks and some of the biotech’s. As the uptrend remains in progress, expect sector rotation. Utilize your candlestick scanning to show which sectors are picking up strength and others starting to selloff. This is a good trading market moving from sector to sector.

 

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November 23rd Market Direction

The accuracy of the analysis of the overall market trend is greatly enhanced with candlestick analysis. The signals and patterns make it very easy to see whether there is an uptrend, a downtrend, or the market is moving sideways. The market indexes are currently trading above the T-line but in a very indecisive/sideways mode. However, this is not a deterrent for making good profits using candlestick analysis. At any point in time, simple candlestick scanning techniques pinpoint which sectors are acting the strongest or the weakest. Frypan bottom pattern breakouts demonstrated the electric vehicle sector and sectors that supply electric vehicles were showing very strong prospects. The pattern breakouts have now produced excessively strong profits even though the overall market trend has been sideways for the past few weeks. BLNK has moved from the $8.00 area to the current $36 area over the past six days of trading. Numerous stocks in that sector have moved with the same profitability. There is a huge added benefit for identifying pattern breakout potential situations. It not only allows for being in a price move that is in the correct direction with a high degree of probability, but it also puts investors into situations where huge price move potential is greatly enhanced. This creates a very simple trading strategy premise. Putting funds into high probability expected trade setups dramatically improves being in the correct trades at the correct time as well as dramatically improving profitability for the portfolio.

You do not have to be a skilled technical analyst to benefit from the information built into candlestick charts. It is merely the graphic depiction of human nature that have been identified as high-profit trade setups through hundreds of years of visual analysis from the Japanese rice traders. All you need to learn is what usually occurs after specific candlestick signals and patterns. The results are high probability results. This is because human nature works the same way time after time. Currently, electric vehicles, lithium mining stocks, and oil related stocks are all showing good strong buy signals. Having more weight in the sectors improves the probabilities of being in profitable trades.

 

 

 

 

 

Chat session tonight at 8 PM ET, identifying the best sectors.

 

Good investing,

The Candlestick Forum team

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November 23rd Daily Market Comments

The T-line continues to act as a support level in this uptrend. The NASDAQ gapped up above Friday’s open and trading positive from there, a very bullish indication. The electric vehicle sector is still very strong. BLNK may now be too strong, gapping up in the overbought position and trading up another 40% today. This is where watching the 10 minute chart becomes important. Safety stops for profit-taking should be put in place. The strong sectors continue to act strong. Electric vehicles and lithium mining stocks are still working well.

 

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Weekly Watch List November 23rd – November 28th

Stocks to watch The Dow closed below the T-line on Friday after a bearish left/right combo earlier in the week. This would imply the possibility of a bearish pullback. These market conditions make long positions in the portfolio having very compelling bullish chart patterns. The electric vehicle sector is still showing excessive strength, FB, WKHS, BLNK, TSLA, FUV, HYLN. The lithium mining stocks are still acting well, WWR, TTHM. Numerous biotech stocks are showing strength with the virus problem still present. VCRT, SRNE, NVCR, BNTX, MESO, CRMD. Be ready to add some short positions to the portfolio on weakness, INO, AVRO, ESPR. Software applications stocks have some good prospects as well as home furniture companies are showing strength. These market conditions warrant having both long and short positions in the portfolio.

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November 20th Daily Market Comments

The market trend remains indecisive. The Dow and the S&P 500 are trading lower, but still appearing to use the T-line as support. The NASDAQ, after yesterday’s bullish and golfing signal off the T-line, is just now starting to trade positive today confirming yesterday’s bullish engulfing signal. The electric vehicle stocks are still showing great strength but starting to move a good distance away from the T line, look for potential profit-taking soon. Stay long in sectors that continue to show good strength, short positions are not showing great resiliency, be ready to close short positions if the market starts moving up off the T-line.

 

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