and The Candlestick Forum
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Stock Chat – Thursday 12/30/21
What sectors are going to act the strongest going into 2022? Candlestick analysis identifies which sectors are being aggressively bought coming out of the chute after the first of the year. Join us tonight in our weekly chat session demonstrating how to participate in the strong sectors that will perform well in the first quarter of the year.
Santa Claus rally? What did the market tell us Today? The indexes produced sell signals Today. But what about the Santa Claus rally? The Japanese rice traders profess a very important observation. Let the market tell you what the market is doing. Today’s sell signals created in the indexes produce a different scenario than a continued Santa Claus rally. The ability to analyze what the signals are revealing as far as investor sentiment provides a much more accurate trend assessment than any other technical indicators. This information in conjunction with analyzing the signals and patterns developing in specific sectors allows for much better probabilities of being in long or short in the appropriate stocks and sectors. What will the market do in 2022? Nobody knows! No matter what so-called talking head experts prognosticate, the true indication of what is going to occur in the markets in 2022 is illustrated in the market itself. This is where candlestick analysis produces a huge advantage for investors.
Chat Session tonight. Click here to register.
Good Investing,
Stephen Bigalow.
The analysis remain simple, as long as the indexes continue to trade up above the T line, the uptrend remains in progress. The NASDAQ is doing a little consolidation/profit-taking but not showing any major change of investor sentiment.
The strength in the Dow and the transportation index implies the modest selling in the NASDAQ is merely profit-taking. The semi conductors that were acting strong yesterday are demonstrating profit-taking today but not any major change of investor sentiment in those sectors. Assume the Santa Claus rally remains in effect without any evidence of reversal signals in the indexes.
Santa Claus rally? The benefit of candlestick analysis is having the ability to see what investor sentiment is actually doing. This current rally, the Santa Claus rally as everybody has anticipated, is visually confirmed with candlestick analysis. Although generally assumed price moves are given names, they don’t always perform as expected. The visuals of candlestick charts allow for identifying what investor sentiment is actually doing. The confirmation of a bullish uptrend after bullish signals appeared in the indexes and then have maintained the uptrend by staying above the T line provides much more confirmation for the candlestick investor. The probabilities of a trend are greatly enhanced when using candlestick signals and patterns in conjunction with confirming indicators. Currently, as long as the indexes remain above the T line without experiencing candlestick sell signals, the high probability assumption is that the uptrend remains in progress.
Japanese rice traders observations are incorporated into candlestick patterns. You do not have to be a sophisticated analyst. The premise of candlestick charts is that they reveal the decisions resulting from everybody else’s analysis. This works both in bullish sentiment as illustrated in the BVDA and AAPL charts as well as bearish sentiment illustrated in the NVAX chart. Recognizing candlestick signals and patterns is based upon what human nature is likely to create as a price trend based upon the reoccurring aspects of investor sentiment. Having the ability to analyze the overall market trend allows for common sense trading, establishing positions with strong signals and patterns that correlate with the overall market trend greatly improves the probabilities of being in profitable trades.
Good investing,
The Candlestick Forum Team
The Dow appears to have stalled at the 50 day moving average. The first major resistance level will usually act as resistance when a new trend starts with a non-reversal signal. Short positions are still working well. The bearish Doji sandwiches are working i.e. BNTX and NVAX. The indecisive nature of the market still makes having both long and short positions, that are using the T line as confirmation, in the portfolio.
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Beware the bounce! Why? The indexes, although trading positive, are still trading below the T line and the stochastics are in a downward trajectory. This would cause any suspicion that the bulls have taken control. The small biotech’s continue to show bullish trends but the big tech stocks have opened positive but immediately started selling lower. Use the T line as your ultimate trend indicator.
Is the downtrend being caused by Manchins “NO”? Or is it the new co-vid activity? The great thing about candlestick analysis is that you do not have to be the analyst. You do not have to project what might happen to the market if specific things happen. Candlestick analysis has a great advantage of being able to analyze what everybody else’s analysis is doing to the market. The combination of candlestick signals, candlestick patterns, and the T line produced a very accurate assessment combination.
Simple candlestick scanning techniques allows investors to identify which stock/sectors are going to benefit from situations in which stock/sectors are going to have bearish results from specific situations. A new lockdown would make the stay at home stocks gain bullish perspectives. Retailers may be negatively affected. Candlestick signals and patterns provide a huge advantage for identifying where you want to have your trading funds committed.
Good investing,
The Candlestick Forum Team
December 30th Daily Market Comments
The market obviously still in a Santa Claus rally. The NASDAQ after consolidating a couple days has continued its uptrend. Numerous stocks have consolidated back to the T line or other obvious support levels and starting to trade positive again today. Numerous short positions have started showing strength, many were closed based upon the Doji rule. Stay predominately long until the market indexes reveal confirmed sell signals.