and The Candlestick Forum
The Dow down, the NASDAQ up, sector rotation continues. The big tech stocks continue to pick up strength, numerous double bottom patterns/fry pans are demonstrating good trades i.e.OSTK. These market conditions warrant analyzing each stock/sector on its own merits.
The market indexes continuing to trade above the T line allow for identifying some very powerful candlestick patterns. The bobble breakout is producing excellent trade set ups. The bobble breakout is merely a J-hook pattern with a much more defined price move, a failure initially at a resistance level, such as the 50 day moving average or the 200 day moving average, followed by a pullback usually to the T line, then coming back up through the resistance level. If you took the resistance level off the chart, you would still have a J-hook pattern. Our recommendation last week on NUAN bobble breakout resulted in good profits today. Did we know they were going to be bought out by Microsoft? Definitely not, but the bobble breakout revealed investors were buying the stock. Always the rhetorical question! Do all candlestick patterns result in big price moves? No, but the probabilities of being in a big price move is dramatically improved by knowing what investor sentiment does as far as creating reoccurring patterns.
The current market trend is not demonstrating any major change of investor sentiment, implying the uptrend remains in progress. This market environment makes candlestick pattern breakouts much more prevalent. The T line is the ultimate trend indicator when used in conjunction with candlestick signals and patterns. This combination dramatically improves the probabilities of being in and maintaining profitable trades
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
The Dow is showing good strength in the sense that is consolidating in the uptrend, revealing the lack of exuberance coming into the markets. The NASDAQ has picked up good strength ever since the best friend signal, followed by additional gap ups, revealing excessive strength in investor sentiment. The portfolio strategy remains simple. Continue to trade the candlestick pattern breakouts, which are performing well with the lack of any bearish sentiment showing in the overall markets. This also makes for good strong profits in option trades, as revealed in our option training this weekend. The benefit of candlestick analysis is it provides clear graphics of when the bulls are taking control with excessive strength. The best place to look for strong trades is identifying the candlestick powers signals that have developed in the oversold area. This creates high probability/high profit trade set ups.
Watch the biotech’s and the medical equipment stocks. The Biotech’s are showing good strength,CARA. ATNF,MRNA, GRFS and OCGN can be bought on strength. It was pointed out by Cramer this week. Expect some follow-through with the additional exposure. The medical equipment stocks are also acting well,EYES, STKS, EKSO. Although the market indexes remain in a good uptrend, trading is still reliant on strong sectors. These are being pointed out by simple candlestick scans.
The nature of the market trend remains the same, consolidation but no indication of any market reversal. Continue to hold long positions as long as they are not forming bearish signals. The bobble breakout, as seen in NUAN, are working well. Continue to utilize the
The trend analysis remains the same, as long as the indexes continue to trade above the T line, it is assumed the uptrend remains in progress. Currently there is no signs of any change of investor sentiment. Stay predominately long, short positions should have compelling charts to stay short. Keep safety stops in place with the indexes trading in the overbought condition.
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Stock Chat – Thursday 04/08/21
At the end of the webinar, Steve announced his upcoming “Proven Candlestick Option Strategies” event, which he’ll present on Saturday, April 10th.
This 4-hour training workshop will provide you with visual perspectives that will improve your investing for the rest of your life.
Click here for more information.
The strength in the indexes is most emphasized in the NASDAQ. Last week it formed a best friend signal which indicated the potential of a strong uptrend. The uptrend has been confirming with gapping up every day in that index. The Dow and S&P 500 continue to trade above the T line. This makes for very simple analysis. As long as the indexes continue to trade above the T line, the uptrend remains in progress. The fact that the uptrend is not yet showing any signs of bearish sentiment allows candlestick patterns to perform with a high degree of profitability. These profits of these price moves can be greatly enhanced with simple option strategies. Maximizing a price move profit can be done with very simple option strategies applied to the appropriate candlestick pattern move. Join us this Saturday for a full day training, starting with the basics of option trading and then applying simple strategies with the corresponding candlestick pattern breakout move. The markets are still exhibiting sector rotation. A major advantage of candlestick analysis is allowing an investor to see which sectors are starting to fizzle out and which new sectors are starting to act strong. Click here for more info.
Chat session tonight at 7pm central with Stephen Bigalow. Click here to register
Good investing,
The Candlestick Forum team
The indexes do not reveal any change of investor sentiment, yet! The steel stocks and the electric vehicle sector continues to stay strong. BBL is forming a bobble breakout/trend kicker signal today, implying more upside in the steel mining sector. Have both long and short positions in the portfolio with the current bias to the long side.
A consolidation day, the indexes are not moving one way or the other with any conviction. The strong individual chart signals continue to work i.e.HZNP kicker signal still performing. The electric vehicle sector is showing strength again. The T line remains the ultimate trend indicator. Stay long in positions that continue to stay above the T-line without sell signals. Fry pan bottom patterns are working well without any bearish sentiment in the overall market. Use the patterns to your advantage while the market remains in a steady uptrend.
April 14th Daily Market Comments
The market indexes continue their uptrend allowing for good candlestick pattern breakouts. The bobble pattern is working effectively today, CDNA, BBL, OSTK. The electric vehicle sector is showing good basing action in numerous positions. Stay predominately long but with the indexes in the overbought condition, keep safety stops in place.