The NASDAQ, closing below the T line yesterday, was the strongest sell signal, continuing today. The Dow is still above the T line but the S&P 500 has gapped down below the T line.
Archives for May 2021
May 3rd Market Direction
May 3, 2021
These market conditions are making having both long and short positions in the portfolio very profitable. The Dow is trading higher today while the NASDAQ was doing a bearish Doji sandwich, closing below the T line. Simple candlestick scans allow investors to find both excellent bullish positions and excellent bearish positions. The oil refining sector showed great strength today. Numerous stocks in that sector formed double Doji set up confirmation. Knowing that a sector is being bought across-the-board, candlestick investors have the advantage of identifying which stocks in that sector are showing the strongest bullish signals. That same analysis can be applied to the gold and silver sector. Gold and silver prices gapped up today. This has produced many strong signals in that sector. Utilize the strongest of those signals to establish trades. Having a set of our flashcards next to your screen makes identifying and learning candlestick signals and patterns much more easy and quickly.
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May 3rd Daily Market Comments
May 3, 2021
The T-line continues to act as a relevant trend indicator. All the indexes are trading above the T-line. The transportation index is showing good consistent strength. This implies there is no major selling occurring yet in the markets.
Weekly Watch List May 3rd – May 7th
May 3, 2021
Although the market indexes are in a sideways mode, there are still some good strong bullish sectors. However, it will be very important to see how the market indexes open on Monday. The NASDAQ, on a lower open, would be creating a Dagwood signal, an evening star signal followed by a bearish Doji sandwich, an evening sandwich. The biotech sector continues to act strong, with co-vid related stocks showing good strengthVIRX, VXRT, OCGN, FREQ, TBIO, AMTI. The medical supply sector also continues to show good bullish chart patterns CTSO, LLIT, ORGO, HEXO, MRVL, TRHC. Restaurant stocks are showing strength in RRGB, BJRI, TXRH, CHUY, OSR. Keep in mind, entering trades in strong sectors still requires witnessing strength in the overall market trend. Obviously, if the premarket futures are showing the markets are going to open much lower, you do not want to be jumping into bullish trades. We have been getting many inquiries about the Candlestick Forum flashcard sets.
The candlestick signal set and the candlestick pattern set each consist of approximately 50 flashcards. This “high-tech” product has gotten a lot of positive feedback. It allows investors to learn the signals and patterns very quickly. Try it, it will be helpful.
May 5th Daily Market Comments
Although the market indexes opened positive Today, there has not been any bullish conviction since the open. The market remains sector specific, steel stock and steel mining stocks remain strong, oil refineries and oil drilling company stocks continue to be strong. High tech is being sold off. Have both long and short positions in the portfolio.