Archives for December 2020

Weekly Watch List December 7th – December 11th

An often asked question is which are the strongest candlestick signals and patterns. The answer is relatively simple. The signals and patterns we’ve already identified have been cultivated down to the best set ups. The nature of the market trend will indicate which signals are patterns are performing the best during that time frame. Currently, the J-hook pattern is the predominant pattern being created in these market conditions. There are extremely strong bullish J-hook pattern setting up in the oil stocks.COP, OXY, APA, CPE, NOG, OIL, HAL, DVN, MUR, MTDR, VLO.  The probabilities are dramatically improved when you can see a whole sector being bought. This allows the candlestick investor to scan for which stocks in that sector have the strongest charts. This is putting the stars in alignment. The shipping stocks are also showing good bullish patterns. FRO, DAC, TNK, DSSI. Information providers are also acting strong GRPNB, FSLY, BILI, VERI. As long as the market indexes continue to trade above the T line, anticipate the bullish candlestick chart patterns are going to continue to perform well.

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12/3/2020 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 12/03/20

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December 3rd Market Wrap-Up

The nature of a price trend or the market trend is much more precisely analyzed using candlestick charting. Although the indexes are trading above the T line, implying were still in an uptrend, the nature of the market reveals the uptrend is very indecisive. This is illustrated on a daily basis by the indecisive individual candlestick formations. Today, after trading higher most of the day, the indexes close back at approximately where they opened, creating Doji type days. This illustrates indecision. This produces an alert for the positioning of the portfolio. There should be both long and short positions. The indecisive nature of the markets put the overall market trend in a tentative mode, meaning that any good news or bad news can swing the markets one way or the other with the lack of any decisive sentiment in the markets currently.

The J-hook pattern can be utilized for offsetting any dramatic change of the indexes to the bearish side. A price pattern is a buildup of investor sentiment. This creates a trading platform when taking advantage of the patterns that allows for extra time to get out of profitable trades if the market all of a sudden turns bearish. Currently the oil stocks and the retail stocks are producing good J-hook patterns. Keep in mind, patterns have multiple benefits. First, they provide a high degree of probability of the price direction. Secondly, the magnitude of that price move is usually much greater than merely up trending stocks in an uptrending market. And finally, if there is a major change of market direction, because patterns are created by the buildup of investor sentiment, it provides extra time to get out of a profitable trade. Simple logic, by the strong sectors. This opportunity is provided by simple scanning techniques for identifying the strongest candlestick signals and patterns.

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

Good investing,

The Candlestick Forum team.

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December 3rd Daily Market Comments

Although the uptrend in the indexes is slow, the NASDAQ is keeps hitting new all-time highs. Numerous uptrending stocks are moving up in a very choppy manner but the final criteria for remaining in those positions is the T-line. As long as they stay above the T-line, you can stay long. The same is true with any existing short positions, stay short as long as trading stays below the T-line. When the markets are in a choppy mode, the T-line becomes a very important indicator for keeping from getting whipsawed in and out of positions. Stay predominately long.

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December 2nd Daily Market Comments

What is the most relevant indicator working today? The T-line! Note that numerous stock positions have either pulled back and use the T-line as a support or bearish trending stocks have come up and use the T line and tested it for resistance. MRNA is a prime example of the profit-taking stopping right on the T line. When markets area in sideways choppy conditions, the T line acts as a very good trend indicator to keep from getting whipsawed out of good positions. The market consolidation/sideways mode continues. Although the NASDAQ is trading lower, it is trading above where it opened, indicating the buyers are still around, the Dow is hovering at the T line area, moving sideways. Each individual stock chart remains the prominent analysis.

 

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December 1st Daily Market Comments

The T-line remains a very relevant factor in the choppy nature of the markets. The Dow needed to open positive today to show the T-line was still acting as an up trending support. The NASDAQ continues to show strength well above the T-line. Sector/stock moves show indecisive trending moves, up one day but down slightly the next day, then up again the next day. The market conditions still require taking fast profits due to the inconsistency of trends. Stay predominately long but also have short positions in the portfolio.

 

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