and The Candlestick Forum
The diversions in the markets remain apparent, the Dow continues to trade higher while the NASDAQ continues to trade lower. However this is making the strong and weak sectors very apparent. The metals are trading very bullish today, steel stocks. The big techs continue to trade lower. Continue to have both long and short positions in the portfolio.
The first few trading days of a new year using indicate what money managers have decided would be the good strong or weak sectors going into the new year of trading. This often produces big movements in specific sectors as well as the market indexes themselves. However, today’s trading showed bullish sentiment, with the indexes using the T line as support and continuing to trade higher, but it did so in a gradual fashion. Quite often, big price moves occur coming out of the chute during the first few trading days. Today’s positive trading occurred on a very calculated basis. The Dow traded up approximately 60 points for a good part of the day but then started slowly trading positive with the other indexes going into the latter part of the day. It was a gradual progression of buying, indicating more of a continued uptrend of the previous market trends before the year-end.
Today’s positive trading also showed strength resuming in the electric vehicle sector and a reversal in the downtrending oil stocks. These price moves were not rampant, indicating a more calculated buying process. The nature of today’s bullish sentiment is revealing a continuation of the current market trend, making the analysis of each individual stock/sector the top criteria. Let the market tell you what the market is doing. Candlestick investors gain a huge advantage by easily identifying which signals and patterns are occurring in specific stocks, constantly putting the probabilities of being in the right place at the right time in their favor. Happy new year, look for a very profitable 2022.
Good investing,
The Candlestick Forum Team
Although the indexes are trading higher, they are indecisively higher. Revealing that there has not been any major change of investor sentiment based upon a new year. The electric vehicle sector appears to have decent bullish activity but most other sectors remain relatively indecisive. Although the indexes are not showing any decisive move, the T-line indicates the uptrend remains in progress. The analysis of each individual stock/sector remains the top criteria.
January 6th Daily Market Comments
Beware the bounce! Although the indexes are trading positive after the open in the S&P 500 and NASDAQ, they are not showing anything more than possible short covering. The Dow is trading below the T line indecisively. Currently there is no indication of any change of the current downtrend. Be patient with short positions.