Archives for May 2022

May 31st Market Direction

Candlestick trade setups become much more effective when knowing what the overall market trend is doing. Candlestick trade setups are based upon what occurs in human nature time after time. Learning the strong candlestick signals and patterns allows an investor to participate in the high probability trades. The uptrend in the market indexes remains in progress but with the expectation of potential profit-taking back to the T line. This knowledge allows an investor to enter trades or hold off from entering trades based on how the indexes open tomorrow. It’s this evaluation that allows for entering high-profit trades at the appropriate times. Identifying the strong pattern breakouts allows for entering trades that will likely have strong price movements. You do not have to be a sophisticated technical analyst to utilize candlestick patterns successfully.

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Stephen Bigalow

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May 31st Daily Market Comments

Today’s initial selling in the market indexes do not indicate any major change of investor sentiment. The indexes continue to trade above the T line and the 3T line is demonstrating some relevance. Be aware of individual stock/sectors performing well.

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May 26th, 2022 Stock Chat with Stephen Bigalow

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Market trend Analysis May 26th Market Wrap-Up

Market trend analysis becomes much more accurate using candlestick indicators. Market trend analysis is based upon what is occurring in investor sentiment. Candlestick analysis is the graphic depiction of investor sentiment. The market indexes have been in a downtrend with bullish signal bounces along the way. However, simple candlestick indicators allow an investor to see whether that reversal is being confirmed or if the downtrend remains in progress. This week, the Dow has produced candlestick reversal signals and confirmed indications the bulls have taken control. This is a combination of candlestick signals with price confirming above the T line and witnessing the 3T-line now trading up above the T line. Knowing the little nuances that make for accurate market trend analysis allows an investor to participate in individual stock trades that have high profit/high probability results. The lithium mining companies are producing good consistent uptrends, even though the market is just recently reversed. Also, there are high probability breakout/daytrade set ups that are greatly enhanced when knowing the direction of the overall market. Join us tonight for our Thursday night session identifying the high probability day trades.

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Good Investing,

Stephen Bigalow

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May 26th Daily Market Comments

The Dow is showing strong confirmation of a reversal, indicating the T line is now not acting as resistance and it has broken the downtrending channel. All the other indexes are also trading back up above the T line. Anticipate more upside until there is a sell signal. However, remain nimble waiting to see whether the market indexes are producing a bullish bounce in a downtrend or starting a new uptrend.

 

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May 25th Daily Market Comments

The Dow is producing the strongest bullish reversal prospects PROVIDED the Dow closes near the high end of the trading range. The other indexes are trading positive but below the T line. Be prepared for a reversal but give it to the end of the day.

 

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May 24th Daily Market Comments

The T line rule remains in effect! Until you see a candlestick reversal signal and a close above the T line, assume the downtrend remains in progress. That is why it was important to see what the premarket futures are indicating today. Stay predominately short. Any long positions require convincing bullish evidence to stay long.

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May 23rd Market Direction

The market trend is in a transition stage. Today’s positive trading in the indexes provided the possibility of a market trend reversal. However, the full confirmation of a change of investor sentiment requires witnessing candlestick reversal signals in the indexes and a close above the T line. As illustrated, potential reversals have occurred over the past few weeks with candlestick buy signals and closes above the T line, but they did not confirm the signal the next day, closing the indexes back below the T line. This is very important for analyzing what is occurring in investor sentiment. These market conditions allow for analyzing individual chart patterns to recognize which down trending stocks remain in progress and which stocks have produced bullish confirmation. This is what puts the probabilities greatly in the candlestick investors favor.

Members Chat session tonight at 7pm central. Free to Members. Not a member? Click here to join

Good Investing,

Stephen Bigalow

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May 23rd Daily Market Comments

Although the Dow is trading much higher, the other indexes do not appear to have the same follow-through strength. The reminder remains that as long as the indexes continue to trade below the T line, bearish sentiment is still in control. Any entry into long positions require confirmation of the bulls maintaining the position going into the close. Retail stocks continue their downtrend.

 

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May 20th Daily Market Comments

If the markets open positive in a downtrend, does that mean a reversal is occurring? Watch the 10 minute chart. That will indicate whether there is continued buying after the open. The fact that the indexes continue to trade below the T line should be the first mental input as far as evaluating whether a positive open is merely a bounce or if the bulls are actually returning.

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