Archives for December 2020

December 14th Market Direction

The Dow produced a more compelling reversal signal today. After trading higher and resisting at the upper resistance level, the selling started and brought the Dow back down through the T line and created a bearish left/right combo. This would imply higher probabilities that more selling is about to occur. However, although the probabilities favor lower trading, the nature of the market, over the past month, has been indecisive, up one day, down the next. It will be important to see what the premarket futures illustrate as far as how the markets will open tomorrow. Although the NASDAQ was trading higher today, it closed at the lower end of its trading range, creating a Doji type signal. The transportation index traded much lower. This combination of signals produce more evidence of the bears taking control.

The J-hook pattern remains the predominant pattern in these market conditions. Last week the J-hook pattern produce good profits in the oil stocks. Currently, numerous J-hook patterns are forming in biotech stocks. The indecisive nature of the overall market trend continues to make price movements very sector specific. Some sectors are going to be trading stronger while other sectors will be trading lower. This can be easily identified with simple scanning techniques for candlestick patterns. The patterns can also point out which trading stocks have the best upside potential’s, such as TSLA in the process of a J-hook pattern set up. NFLX is in the process of forming a classic pattern, a fry pan bottom pattern followed by a J-hook pattern. Take advantage of the patterns. They illustrate not only a high probability of the direction of a price move but also have the advantage of producing very strong profit moves. This is what provides huge advantages for the candlestick investor.

 

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

Good investing,

The Candlestick Forum team

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December 14th Daily Market Comments

Today’s positive trading reveals that the T-line continues to act as support. The NASDAQ is doing a good J-hook pattern up off the T-line. This is making the J-hook pattern the predominant pattern during this current uptrend. Numerous stocks are continuing into wave three of J-hook patterns.SYRS, VXRT, BILI, OCUL. The market trend analysis remain simple, as long as the indexes continue to trade above the T line, the uptrend remains in progress. However, the profitable trades are coming from specific sectors. The big profits are being made by identifying the strong individual stock patterns in the strong sectors.

 

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December 11th Daily Market Comments

The consolidation continues. Although the markets are trading lower, they are trading down in an indecisive manner. The NASDAQ trading lower but trading above where it opened. The Dow and S&P 500 not trading lower with any decisiveness. Crude oil prices are maintaining, keeping oil stocks relatively stable today. Biotech’s that are still benefiting from vaccines are acting well. The market conditions remain the same, the strong sectors continue to hold up wel. Weak sectors continue to trade below the T line. Have both long and short positions in the portfolio.

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12/10/20 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

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December 10th Market Wrap-Up

The market direction is still indecisive. It has been that way in the Dow for the last three weeks. However, the candlestick investor has the advantage of being able to scan for the strongest sectors as well as the weakest sectors. This is beneficial for having both long and short positions established in the portfolio when there is no decisive market direction. Currently, good bullish chart patterns are identified in the oil stocks APA, OXY , AROC, SM, CPE, XOM, as well as the electric vehicle related stocks, LTHM, BLNK,. Weakness remains in the tech stock area, computer information, i.e.OSTK. Biotech’s that are being benefited by vaccine production still are good uptrending stocks, BNTX, KURA.

The simple scanning techniques applied to candlestick signals allows investors to pinpoint which stock/sectors are going to produce the highest potential profitability. Identifying the strong patterns, such as the J-hook pattern, puts investors in trade situations where the probabilities are extremely strong the next wave is going to produce good profitability. Numerous fry pan bottom patterns are also creating good breakout moves. Recognizing when a pattern is about to breakout produces exact entry point strategies to take advantage of big price moves at the exact appropriate time. The trading logic is very simple. Stay with the strong sectors which continue to trade above the T line. Stay short in the weak sectors as long as they continue to trade below the T line. This is not rocket science.

 

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

Good investing,

The Candlestick Forum team.

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December 10th Daily Market Comments

Be careful! It is too early in the day to anticipate any buying in the indexes is stopping the selling of yesterday. However, note that the trends that were bullish, acting strong, are still maintaining above the T-line. Today, oil stocks are stronger than bears breath, crude oil is currently up $1.65. The market conditions are still producing the same trading strategy, specific sectors are showing good strength. The electric vehicle sector is holding up well. Specific biotech’s that are benefiting from the vaccines are acting well. Continue to have both long and short positions in the portfolio.

 

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December 9th Daily Market Comments

Although the market indexes have been in a steady uptrend, staying above the T-line, they are still sensitive to political rhetoric. Comments about the next stimulus package not yet agreed-upon knock the markets down very quickly today. This warrants keeping safety stops in place. Oil inventories were up big, knocking oil prices down a little bit. The electric vehicle sector appears to be profit-taking so far today. The trading strategy remains the same, stay in sectors that are showing strength, staying above the T line.

 

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December 8th Daily Market Comments

Today’s selling in the market indexes indicate profit-taking so far, not any major change of investor sentiment. The indexes remain well above the T-line and there is not any evidence of a reversal signal. The nature of the market remains the same, some sectors acting strong while other sectors are selling off, sector rotation. The oil stocks are showing good strength. The electric vehicle stocks are starting to show new interest. Stay predominately long with safety stops in place. Take profits when individual stock prices starts showing sell signals. There will be other places to move funds.

 

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December 7th Market Direction

The nature of the market trend is much better analyzed with candlestick graphics. The current uptrend, albeit slow, is providing very strong pattern profit potential. Currently, the J-hook pattern is producing strong profits. These market conditions allow for taking advantage of strong candlestick patterns without the concern of bearish investor sentiment diminishing the upside potential. The oil sector is producing strong J-hook set ups. A candlestick pattern provides numerous benefits. First, the direction is highly probable, followed by a strong price move.

BLNK and VERI have formed J-hook patterns which further confirm a classic pattern. The classic pattern is a fry pan bottom breakout followed by a J-hook pattern. This combination produces extremely high probabilities of excessive more upside. Because investor sentiment works the same way time after time, utilizing the information built into candlestick signals allows for constantly putting investment funds in high profit/high probability trades.

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

Good investing,

The Candlestick Forum team

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December 7th Daily Market Comments

The nature of the market remains the same, the NASDAQ is up and the Dow is lower, making individual stocks and sectors the top criteria. Oil stocks after opening lower are starting to shows strength. Biotech’s that are being benefited by the virus continue to act well. The trading strategy remains the same, stay long in the strong sectors and have some short positions in the portfolio. This may not be a Santa Claus rally but it might be a Santa Claus up drift.

 

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