and The Candlestick Forum
Today’s selling is not real aggressive in the Dow and S&P 500. The NASDAQ continues its downward slope. But the transportation index continues to show a good bullish trend, implying this market is not selling off, merely profit-taking. The strategy remains the same, keep both long and short positions in your trading portfolio.
The market is producing a very good trading environment for having both long and short positions on at the same time. The Dow and the S&P 500 have been showing good strength, J-hook patterns, while the NASDAQ remains in a sideways wedge mode, making good short trade situations in the technology sector. This makes trading relatively simple for the candlestick investor. The strong bullish signals, such as the high probability expected results of an inverted hammer signal produces good profits. The sell signals have and are producing good profits in short trades. Buying puts in VIAC after a hanging man signal followed by a gap down produced excessive profitability. Currently there are still a good number of technology stocks that are in downtrends, in the process of producing bearish patterns such as bearish J-hook patterns. Until there is any dramatic change in the individual index charts, continue to maintain bullish trades that remain above the T-line and bearish trades that remain below the T-line.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
Simple candlestick charting techniques help maximize profit-taking. Using the T-line rule, when prices move too far away from the T-line, on a daily chart, simply move to the 10 minute chart to show when there is a change of investor sentiment. This process allows investors to maximize a profitable trade well before it starts heading back to test the T-line. This was demonstrated in a very strong profit VIAC short trade this week. When prices move too far away from the T-line, that becomes a simple alert for being prepared to start taking profits. This is the result of reoccurring human nature reactions. The Dow is in the process of forming another bullish J-hook pattern, the S&P 500 also following that pattern set up.
This implies more upside, especially with the strength being exhibited in the transportation index. The NASDAQ trading positive is still in a sideways wedge formation, at least indicating the lack of any major selling pressure yet in the market indexes. This demonstrates also that specific sectors are starting to show bullish signals. The steel company sector has very strong charts,X, SCHN STLD,ZEUS, AA,RYI. The metal mining companies are also acting strong, BBL,MT,SXC,NUE, CENX, TMST, CMC. J-hook patterns in the Dow and S&P 500 imply more upside in the markets.
Today’s positive trading is confirming the bullish left/right combo that formed yesterday in the Dow right at the T-line. The S&P 500 is also confirming. The NASDAQ trading positive today gives the implication of at least a bounce back up to the T line, making today likely a positive trading day. Numerous short positions have now been covered. But the big traders, AAPL, TSLA, AMZN, NVDA are not moving. Market conditions still make the analysis of each individual stock/sector the top priority.
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Stock Chat – Thursday 03/25/21
At the end of the webinar, Steve announced his upcoming “Comprehensive Candlestick Bootcamp” 2 day event, which he’ll present on Saturday & Sunday, March 27th & 28th.
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Although the NASDAQ is in a bearish trend, the Dow is showing indecisive trading. This provides the evaluation that the markets are not selling off with great fervor. Specific sectors continue to trade positive while others are trading lower, sector rotation is evident. The analysis of the market trend and specific sectors/stocks become much easier to analyze using the 12 major candlestick signals. The shooting star/Harami in the Dow last week indicated a reversal in investor sentiment. However, the downtrend of the Dow can be evaluated as being a very indecisive trading mode based upon witnessing bullish candlestick signals during the downtrend.
The strong trade set ups are still revealed by candlestick patterns. The J-hook pattern produces the probabilities of not only positive trades, but strong positive trades. RUBY and CYH both exhibited J-hook patterns that imply more upside. The advantage of recognizing candlestick signals allows for analyzing the price moves that have had strong historic results. The 12 major candlestick signals in conjunction with strong confirming indicators, such as the T line, produce an extremely high probability trading strategy. Join us this Saturday and Sunday for a two day comprehensive training identifying the 12 major candlestick signals and understanding the investment sentiment that created the signals. This combination allows an investor to analyze price movements with the same skills as a seasoned investor that may have been trading in the markets for 50 years. Members price $297 and you get to come back to this training for free every time it is presented. Click here to register.
Chat session tonight at 8 PM ET. Click here to register.
Good investing,
The Candlestick Forum team
The T-line rule remains in effect, the downtrend of the markets is in progress as long as the indexes continue to trade below the T-line. Numerous short recommendations opened lower but are currently trading higher than where they opened. This makes for an easy entry strategy. Be ready to short these positions when they come back down through the open. Obviously, any long positions still be in maintained require staying above the T line. Be predominately short or in cash.
The market has returned to its indecisive non-directional mode. The NASDAQ is down, the Dow is up, neither moving in a decisive direction. This continues to make the analysis of individual stock chart the top criteria but even that is producing a difficult trading environment with numerous stocks moving up one day down the next. The T-line remains the ultimate criteria for maintaining positions either long or short.
The market is back in a wait and see mode, waiting for the Fed comments today. All the indexes are currently pulling back but supporting right on the T line. The trading strategy remains the same, having both long and short positions in the portfolio. The overall direction of the market is still in a very indecisive/sideways mode.
March 31st Daily Market Comments
The double Doji set ups are performing in the NASDAQ and the S&P 500, the NASDAQ gapping up at the T-line and trading positive. An extremely large number of down trending stocks, short trades, have shown strong buy signals yesterday and Today, another indication there is no convincing selling occurring in this market. The kicker signals and the best friend signals are producing good trades Today.