and The Candlestick Forum
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Stock Chat – Thursday 12/16/21
40 years plus of investment background produces expectations after major announcements. The feds reported they were going to start raising interest rates. The knee-jerk reaction is that that is the right thing to do. But reality always indicates that when interest rates are rising, the stock market sells off. This provided the warning did not jump in excessively until there was confirmation of whether yesterday’s trading was a knee-jerk reaction or a full-fledged change of investor sentiment. As illustrated in today’s trading, the NASDAQ and the S&P 500 opened positive and then immediately started selling off. Although the Dow traded positive most of the day, the bearish sentiment became more evident when the bullish candle started turning bearish. The T line also remains a major factor. And obvious observation is witnessing numerous down trending stocks that showed a reversal bounce yesterday afternoon experienced resistance at the T-line today and started trading lower.The strength of the selling in the NASDAQ provides a good indication that the existing downtrend is continuing. Sectors such as the airline sector showed a bounce yesterday but individual stocks could not get up above the T-line, then started selling off again today. When the market goes into an indecisive whipsaw action, very short-term trading becomes the logical strategy.
Join us Saturday, December 18 for a full day daytrading and swing trading entry strategies that put you in the right trade direction at the ultimate entry point. This information is viable every single day for identifying quick daytrade profits as well as the appropriate swing trade directions. This training not only provides the visual alerts for good trades but also produces a strong mental perspective of what price movements are likely to occur when the signals and patterns set up in alignment. Join us, you will not be disappointed in the amount of visual analysis you will receive.
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Good investing,
The Candlestick Forum Team
Observation of note, notice that stocks that were in a bullish trend continue the trend. Stocks that were in a bearish trend may have shown buying into yesterday’s rally but have likely opened positive today and then continued selling off. Use the T-line as a trend reversal criteria. The gap up in the Dow today is creating a bullish J-hook pattern, with obvious support at the 50 day moving average/T-line.
Yesterday’s Doji’s that formed in the indexes are being followed up Today by lower opens and lower trading. The downtrend is obviously still in progress but the gorilla in the room is the result of Today’s Fed meeting. Until there is a dramatic change of investor sentiment, stay predominately short.
Beware the positive trading in the Dow Today. The NASDAQ gapped down below the T-line after a bearish Doji sandwich. Currently there is no candlestick evidence of any bullish sentiment in these market conditions. The bearish J-hook patterns are working very nicely. Any remaining long positions should have very compelling reasons to stay long, otherwise assume short positions should be the prevailing positioning.
The hard selling today revealed a new trend analysis. Although the Dow did not have an actual candlestick reversal signal, the hard selling in conjunction with the NASDAQ closing below the T line reveal the lack of any bullish pressure in the market trend. Another indicator that implies the bears are taking control is the simple quantitative results doing candlestick scans. When the bearish signals are revealing much better trades than bullish signals, candlestick logic indicates the bears are likely to be taking control. As observed on numerous charts, recent uptrends failed at the T line and started back down. This makes having the portfolio more oriented toward the short side a logical strategy.
Join us this Saturday to apply the logic built into candlestick signals to take advantage of optimal entries for day trades as well as swing trades. There are market conditions when buying trending positions is more logical. And there are times when having the ability to find strong day trades is more viable when the market is not providing consistent trending. Join us this Saturday for a full candlestick forum training on daytrade entries. You will gain valuable insights that will improve all your trade entry strategies. Click here for more info.
Good investing,
The Candlestick Forum Team
Santa Claus rally? This is why you always let the market tell you what the markets are doing. Obviously the co-vid influence overhangs the market. If today’s market trading closes near the lower end of today’s trading range, it will be very obvious there is no direction. Have both long and short positions in the portfolio but each position should have very compelling reasons to stay long or short, otherwise getting into a cash position is better until the markets demonstrate a direction.
The S&P 500 is showing the most compelling offset of yesterday’s selling with a gap up almost at yesterday’s open and then continuing to trade higher.. Currently the NASDAQ has illustrated its support at the T line, and the Dow is trading higher after two consolidating Doji days. Higher inflation numbers apparently is not creating any bearish sentiment in this current market trend. Use the T line for maintaining long and short positions.
To Download recorded sessions;
In order to download click on the link below, once on the video page you will click on the three-dotted vertical line located at the bottom right-hand side of the video player and click on “download” to save to your files.
At the end of the webinar, Steve announced his upcoming “Accurate Daytrade Result with Candlestick Analysis” event, which he’ll present on Saturday, December 18th.
This webinar will provide you with visual perspectives that will improve your investing for the rest of your life.
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December 20th Daily Market Commets
Why did the market selloff after potentially good news following the Fed announcement? Was it because investor sentiment was being influenced by other factors? Who knows! And we do not need to know! The markets illustrated that very sentiment was still prevalent in the investment thinking. This is why you let the market tell you what the market is doing. Stay short.