Archives for December 2020

December 28th Daily Market Comments

Today’s positive trading is making the Dow and S&P 500 nudging the top resistance level. The NASDAQ and the transportation index showing good bullish trading above the T line. The uptrend is in progress, provided the markets do not show a severe candlestick reversal signal. The electric vehicle sector remains very strong. Expect some more upside going into the end of the year, any profit-taking will likely be pushed in the next year.



December 28th Market Direction

Hopefully everybody had a good holiday. The market indexes traded positive Today, probably as a result of the signing of the latest stimulus bill. The Dow and the S&P 500 gapped up and are nudging the upper resistance level. If it breaks through that level, especially with a gap up showing good force, wave three could now be breaking out. This would imply some good strong market move for the final few days of 2020. As demonstrated during this slow/lethargic uptrend, especially in the Dow, the candlestick patterns have produced very good profitability. The fry pan bottom’s and the J-hook patterns have worked extremely well.

Currently, fry pan bottom’s are working well in GP, TCON and POLA. All these charts imply more upside upon positive trading tomorrow. The best friend signal is also illustrating good chart set ups i.e. LVS and YELP. The patterns have produced an exceptionally good trading year. Also, the simple scanning techniques of candlestick analysis identified when sectors were starting to pick up strength and when it was time to start rotating out of those sectors. The electronic vehicle sector still is getting good strength, as illustrated in GP. However, with any sector participation, the candlestick charts/signals reveal which positions remaining strong while other positions in that same sector may not be getting bullish attention. This can be currently witnessed in NIO and LI, NKLA. If you consistently utilize the information built into individual stock positions, an investor can constantly keep the probabilities going in their favor. Once you become confident that candlestick signals and patterns will produce profitable results a high percentage of the time, your investment discipline will start falling into place, keeping your emotions on your trading decision.


December 21st Market Direction

Knee-jerk reaction! Was the market ready to reverse because of new virus strains? The candlestick charts could reveal that very quickly in the day. The intraday charts were showing buying after the open. This allowed for candlestick investors to continue to hold long positions with evidence the market was not selling off after the open, but being bought. Also, numerous bullish positions did not selloff on the open but maintained their positive trading above the T line. With the market indexes closing above the T line by the end of the day, this revealed that investor sentiment had not changed as far as the overall market trend. This provided more upside potential in individual candlestick chart patterns when it was evident there was not any bearish sentiment taking over the markets.

The candlestick patterns continue to produce good profitable trades. Also, a candlestick pattern, a buildup of investor sentiment, is less likely to selloff immediately when there is a major change of the overall market direction. The J-hook patterns were clearly evident today. Our recommendation for MGNI and PERI were based upon J-hook pattern setups and could be bought on the first signs of additional buying even though the market had opened much lower. TTCF and MARA, existing J-hook patterns continue their uptrends. The electric vehicle sector gained strength near the end of the day because of the stimulus package. Trades such as BLNK, NIO, SOLO, GP are good electric vehicle sector plays not only for short-term trades but also for long-term holds. Combining daily chart and weekly charts provide a trading strategy that works effectively for the longer-term investor. The candlestick pattern still provides consistent profitability even though the overall market trend remains choppy. Currently, there are no indications of any major change in investor sentiment in the overall market direction, however, it is always prudent to have safety stops at spots that should not see uptrend trading.


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

Good investing,

The Candlestick Forum team


Weekly Watch List December 21st – December 25th

After trading lower most of the day on Friday, late afternoon buying brought the Dow back up above the T-line. The NASDAQ traded slightly higher. Although indecisive, the final criteria for analyzing the overall market trend is the T-line. As long as the indexes continue to close above the T-line, the assumption remains the uptrend is in progress. This is also creating an additional benefit for the candlestick investor. As long as there is not any worry in investor sentiment of any major selling, candlestick pattern breakouts are producing excessive profit potential, versus merely slow up-trending stock prices during a slow up trending market. The J-hook pattern, fry pan bottom pattern, and wedge breakouts are producing strong profit potentials.

Currently software applications stocks are acting very well, MGNI, PERI UPWK, KRMD, ANGI, OSPN, APPS. The utility sector is also producing good bullish pattern setups, CLNE, FCEL, ORA. The virus vaccine sector continues to maintain good strength, ATXI, SGMO. Electric vehicle sector is producing new bullish patterns, allowing for both short-term and long-term trade setups, NIO, SOLO. As long as the indexes continue to trade above the T-line, candlestick breakout patterns are going to produce much greater profitability.


December 18th Daily Market Comments

Although the indexes appear to be in profit-taking mode today, the J-hook pattern set ups are working i.e. COHU, WLL, UPWK, FSLY. The wedge breakout patterns are also performing well, BLNK, FCEL, MGEN. Continue to stay in long positions that are confirming pattern breakouts.


12/17/20 Stock Chat with Stephen Bigalow

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 12/10/20


December 17th Market Wrap-Up

The market uptrend continues to be confirmed by the fact that the indexes are staying above the T line. Today all the major indexes closed at all-time highs. This is producing confidence in the bullish sentiment that is allowing candlestick patterns to perform excessively well, without any fear of bearish sentiment. The J-hook patterns have produced some very good profits during the past few weeks. The fry pan bottom breakouts have also produced large profitability. The candlestick investor has the advantage of simple scanning techniques that allow for identifying which patterns are setting up and are at breakout levels.

BLNK and FCEL have broken out of wedge formation’s with strong candlestick buy signals. This implies they have the next wave to the upside. The fry pan bottom breakout as illustrated in SLDB indicates when there is new powerful investor sentiment coming into a price trend. Identifying patterns produces the visual opportunity to get into a strong trade at the optimal entry levels. Once entering the trade, the prospects of investor sentiment producing strong profits is greatly enhanced. The aspects of candlestick analysis produces a trading strategy that allows investors to consistently put the probabilities in their favor as far as being in a profitable trade at the correct time. As long as the market indexes continue to trade above the T line, the assumption is investor sentiment remains bullish. The longer bullish sentiment continues, the greater the prospects for candlestick pattern breakouts to produce big price moves.


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

Good investing,

The Candlestick Forum team.


December 17th Daily Market Comments

The uptrend remains in progress, the indexes staying above the T-line. This is making the J-hook/fry pan bottom breakouts good profitable trades set ups. The pattern set ups are allowing for excessive profitability versus merely holding up trending stocks during a slow uptrend. Look for the pattern breakouts i.e.NAIL, UPWK. There are still short positions acting well also ADS, CPA. Make sure you keep safety stops in place.


December 16th Daily Market Comments

The prospects of a stimulus package being passed continues to put the markets in a weight and see mode. The NASDAQ, however, continues to nudge all-time highs. Currently, there is no evidence of any severe selling pressure. The indexes continue to trade above the T line, but in an indecisive manner. Individual stocks are demonstrating the same trend movement, choppy. The trend analysis of any individual stock chart still relies on the T line. Continue to have safety stops in place.


December 15th Daily Market Comments

An often asked question, “what does that mean and what do you do if a price keeps waffling up and down at the T-line?” That illustrates there is no decisive bullish or bearish force in the price move, it reveals your in a flat market. The Dow is experiencing that, however the NASDAQ is providing a steady bullish uptrend chart. Continue to utilize the T line to stay long or short. Watch the oil stocks, crude oil is up another $0.60 today.