Archives for January 2022

Weekly Watch List January 24th-28th 2022

If you are feeling anxiety about the current market, that means you are probably positioned incorrectly in your trading. This is from the voice of experience! Knowing that candlestick signals and patterns produce high probability results, feeling anxiety means you are not doing what the candlestick charts are telling you to do. This reality check is what has solidified the acknowledgment of what the candlestick signals are telling us at the T-line. Witnessing candlestick sell signals, in the overbought conditions, in the indexes, and witnessing closes below the T-line cuts through the emotional hopefulness that long positions are going to continue to move in an upward direction. As the Japanese rice traders profess, let the markets tell you what the markets are doing. Visual confirmation that the bears are starting to take control allows the candlestick investor to move from long positions to short positions, eliminating the emotional decisions. The T line is one of your most effective trend analytical tools. The T-line truisms are extremely high probability confirmations of bullish trends or bearish trends. Mark your calendars! February 5, a Saturday, will be a full-day training on power signals and patterns that produce extremely high probabilities you’re going to be in a correct trade. They work as effectively on the short side as they do on the long side. Using that information allows for identifying which positions are the best/strongest to move in a specific direction. Currently, the metals are starting to be sold off. NMG, HBM, AA, CENX, SYNL. The shipping stocks are starting to turn over, SBLK, ZIM, GNK, GSL. If the downtrend of the markets is continuing, the higher the probability trade setups are downtrends that are just starting from the oversold condition versus attempting to short positions that have already had excessive downward moves.


January 21st Daily Market Comments

What is really fun? Being in the right direction of a market trend at the right time. And it does not take a tremendous amount of analysis to be in the correct direction, the T line rule working in conjunction with candlestick signals produces high probability results. A good example,NFLX, ROKU. Stay predominately short until you see buy signals.



January 20th, 2022 Stock Chat with Guest Speaker Peter Schultz

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.

Stock Chat – Thursday 01/20/22


January 20th Daily Market Comments

Currently today’s positive trading in the indexes are creating a bullish Harami’s, stochastics in the oversold area. It will be important to see how the indexes close. A close at the high end of there trading range will create a bullish Harami’s. A close near the lower end of there trading range would imply the downtrend is not yet over. Be ready to cover short positions that are showing buying signals in the oversold area.



January 20th Market Wrap-Up

Today’s positive trading did not indicate a reversal. This was the warning put out during our morning comments. Why? First, there needed to be a candlestick reversal signal. This meant waiting until the end of the day to see what type of investor sentiment was occurring. Second, the T line rule! As long as the indexes were still trading below the T line, it has to be assumed the downtrend remains in progress. This caution, created by the lack of any reversal signals, keeps candlestick investors from entering bullish trades too soon. Numerous stock charts indicated the potential of reversal signals and trading above the T line early in the day. But the Japanese rice traders always profess that a candlestick signal is not created until the close. Many stocks traded up above the T line with buy signals early in the day but eventually close back below the T line indicating the lack of any reversals of their downtrends.

Putting the stars in alignment is simple with candlestick analysis. Visual analysis is very effective for analyzing the trend of the overall market. Analyzing the downtrend of a market makes it very logical to be scanning for the strongest candlestick sell signals in individual stock prices. Strong sell signals and patterns dramatically improve the probabilities of trading in the correct direction. This allows investors to trade based upon probabilities, visually recognize with candlestick signals and patterns, versus the normal emotional trading of most investors. Join us each day in our chat room. You will be exposed to many experienced traders that can dramatically improve your candlestick trading ability.

Chat session tonight at 8 PM ET. Click here to register.

Good Investing,

Stephen Bigalow



January 19th Daily Market Comments

Be suspect when seeing positive trading in a downtrend when stochastics are still heading in a downward trajectory and not in the oversold area. Stay predominately short. Currently there is no candlestick reversal signals appearing in the market indexes in the indexes trading below the T line. The downtrend remains in progress.



January 18th Market Direction

Market analysis is greatly simplified when using candlestick signals and the T-line. The T-line rule provides a very powerful assessment of what is occurring in human nature. Individual candlestick signals tell you when a price move is about to reverse. A candlestick signal followed by a close above or below the T line is a high probability confirmation a new trend is starting. Witnessing candlestick sell signals and the market indexes closing below the T-line has allowed for a couple of weeks of very profitable short at the correct time.

However, the extremely powerful aspects of candlestick signals and patterns are revealed with witnessing bullish fry pan bottom signals producing good bullish profits even though the overall market trend has been heading lower. Candlestick patterns are the accumulation of investor sentiment. They illustrate what is occurring in specific stock moves in spite of general market conditions. Learning the candlestick signals and applying them to candlestick patterns greatly improves the probabilities of being in the correct trades at the correct time. These market conditions have allowed for good profits both in long positions and short positions.

Members Chat Session tonight at 8pm central. Not a member? Click here to join.

Good investing,

Stephen Bigalow


January 18th Daily Market Comments

The Dow, bearish Doji sandwich, the S&P 500 bearish trend kicker signal, NASDAQ opened below Friday’s open. The downtrend obviously remains in progress. The short positions are working well. Oil stocks continue to trade positive. Stay predominately short.



Weekly Watchlist January 18th – 22nd, 2022

The downtrend in the market indexes were illustrated by the fact that they could not close above the T line. Currently, there has been buying at support levels, the NASDAQ opened at the 200 day moving average on Friday and traded positive. The Dow closed as a hammer type signal above the 50 day moving average. This implies there might be some basing in this area but stochastics are still in a downtrend. In these market conditions, simple candlestick scans identify that there are both good long positions and good short positions.

The home improvement sector is still trading lower, HD, LOW, LOVE, LL, FND. Retail apparel stocks are selling off, SCVL,BKE, CHS, ROST, GPS, LULU. Oil stocks continue to maintain strength with crude oil trading back up over $84 a barrel.OIL,RES, LBRT,NBR, PTEN, LPI, MTDR. Although the general market indexes are having a downward trajectory, there is the probability of bounces in the downtrend. The T line works extremely well in conjunction with candlestick signals for maintaining good long or short position trends.


January 14th Daily Market Comments

The indexes are below the T-line. That makes any positive trading early in the day suspect. Assume the downtrend remains in progress. Trading should be oriented toward the short side. Take advantage of the strong sell signals.