Archives for February 2023

February 16th Market Wrap-Up

Daytrade entries are greatly enhanced using candlestick chart signals. Daytrade entries alleviate the “what if” hesitancy on a trade. There are approximately nine candlestick signal trade setups that produce extremely high probabilities a trade is going to move in the correct direction. This makes for excellent day trade entries as well as swing trade entries. A strong example is the SHOP chart. The gap down Doji makes for a powerful bearish day trade setup. If it opens lower tomorrow, probably in conjunction with the market indexes opening lower, it can probably move with good force down to the 50-day moving average. This simple analysis allows options traders to put on high-potential trades. Our suggestion in our options trading room today was to buy the February 42.50 puts for $0.11. They expire tomorrow. But if the bearish flutter kicker signal performance, the $0.11 has the potential of going to the $1.20 sent level. Knowing the expected results of candlestick pattern setups produces a robust trading platform for the day trader and swing trader. Join us Saturday, February 18, for a full-day training recognizing the high probability day trade setups and how to utilize the intraday charts to maximize profits. Click here to register.

 

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Good Investing,

Stephen Bigalow

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February 16th Daily Market Comments

Although the market indexes sold off because of the higher-than-expected PPI number, note that numerous stock prices are trading above where they opened. The trading strategy should remain the same, stay long on charts that continue to trade above the T line, stay short on charts that are not showing buy signals and remaining below the T line. The artificial intelligence stocks are showing strength.

 

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February 14th Daily Market Comments

The CPI numbers did not show any decisive movement in the markets. The Dow is still trying to get through the resistance level, the NASDAQ and the S&P 500, although trading positive, are still in a down trending channel until they break up through the channel. Continue to have both long and short positions in the portfolio.

 

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February 13th Market Direction

Profitable day trades become much more consistent when using candlestick charts. When market conditions indicate a lack of decisive movement, Day trades become a viable trading strategy. Currently, the sideways mode of the Dow may be coming to an end if bullish sentiment pushes the Dow up through the down-trending resistance level of the wedge formation. However, daytrade mentality may be the prudent strategy when a significant announcement, such as the CPI report, May whipsaw markets. It will be essential to see what the reaction will be at these market index levels, the resistance level for the Dow, and the T line for the NASDAQ. There are approximately seven very strong day trade candlestick pattern setups. This allows for simple market trend analysis to work in conjunction with how the price of an individual stock/chart will produce high probabilities of a day trade confirmation. Join us this Saturday, February 18, for a full-day training on utilizing the candlestick signals for profitable day trade and swing trade entry points. This is information you will use for the rest of your trading career. Click here for more information

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Good Investing,

Stephen Bigalow

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February 13th Daily Market Comments

Although the markets are trading positive today, they still remain in an indecisive trend channel. The NASDAQ and the transportation index are still below the T line, while the Dow and the S&P 500 are trading above the T line. The Dow needs to break through the upper resistance level to show any major change of investor sentiment. The T line remains the ultimate trend indicator.

 

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February 9th Market Wrap-Up

Daytrade setups are much more clearly defined using candlestick charts. The typical reactions of human nature create daytrade setups. These can be identified no matter which direction the overall market is moving. Currently, the Dow failed to get up through the resistance level of a wedge formation. The NASDAQ and the S&P 500 formed two dark crows, a bearish reversal signal, and they closed below the T line. This combination produces high probability there will be more downsides. Day traders and swing traders can take advantage of charts that are showing strong sell signals, which will likely continue to the downside if the markets continue lower. Note in the AMZN chart that the gap down after failing at the 200 has continued to demonstrate a bearish sentiment. EA also illustrates the bearish continuation after a big gap down. Watch BAX, the gap down in price reveals a strong change of investor sentiment. Once you have learned the candlestick signals and patterns, you gain a much stronger insight into price movement. The three books published by the Candlestick Forum provide an intense learning process. They are easy to understand.

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Good Investing,

Stephen Bigalow

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February 8th Daily Market Comments

The market indexes remain indecisive. The Dow is having a hard time getting up through the upper resistance level. The NASDAQ and the S&P 500, although still above the T line, appear to be in a sideways mode. Trades should now be oriented directly to individual stock charts.

 

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February 6th, 2023 Market Direction

Swing trading becomes much more exact when using candlestick signals and patterns. The T line, as well as the other moving averages, greatly enhance swing trade setups. The current market conditions illustrate an indecisive nature. The Dow has been trading in the Wedge formation, revealing no great conviction one way or the other. The gap up in the NASDAQ and S&P 500 last week produced the alert to be prepared for a downtrend/profit-taking. Now the analysis is to watch to see what the T-line will reveal. This allows for both long and short-trade prospects. The T line produces high probability expectations when prices move sideways and eventually intersect with the T line. As illustrated in the CVNA chart, the price consolidated until it did a bullish left/right combo at the 50-day moving average support and the T line. This created a much more substantial probability the bulls were taking control. The Doji produces high probability swing trade prospects. The Doji rule, especially when witnessed at the T line, will produce a high probability trade based upon the open after the Doji. Swing trade setups are greatly enhanced when knowing what should occur after a candlestick signal or pattern. Join us for a two-week free trial. This involves participating in chat rooms during the day with traders that are experienced at identifying profitable trade setups. It also allows investors that are just learning candlestick signals and patterns to expedite their learning curve significantly, being able to ask questions in the chat room about why a trade setup is being recommended. Additionally, you can participate in the Monday night and Thursday night training sessions and special sessions on Tuesday nights. The special sessions concentrate on specific aspects for improving trade profitability, how to scan for the best trades, where the set logical stop losses, high probability entry and exit strategies, and identifying the most vital candlestick signals and patterns. Join us; you will gain many insights into the logic of candlestick analysis.

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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February 6th Daily Market Comments

The gap down below the previous day’s open on Friday in the NASDAQ and the S&P 500 produces very strong evidence a change of investor sentiment has occurred. Today’s weakness is confirming. The Dow is forming a bearish Doji sandwich so far today. Any long positions remaining require the lack of any sell signals.

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Weekly Watchlist February 6th – February 10th, 2023

Stock market analysis becomes much easier when knowing the nature of each candlestick signal and the common sense perspectives of the Japanese rice traders. Stock market analysis can utilize the typical reactions of human nature. Where do most people buy? They buy exuberantly at the top. This becomes much more visible when using candlestick charts. The gap up in the NASDAQ and the S&P 500 on Thursday, in the overbought conditions, becomes a high probability alert. Start looking for profit-taking/selling. At some point, the weight of higher interest rates will start showing their effect on the overall market trend. The candlestick investor becomes much more prepared when witnessing sell signal indications in the market indexes. The candlestick forum chat rooms provide a constant educational perspective, teaching investors when reversal signals and patterns are showing a change in investor sentiment. Candlestick signals and patterns illustrate the strength of a price trend or price movement continuation. As illustrated in AI and ZIM charts, fry pan bottoms produce continued price trend movement despite a change in investor sentiment in the overall markets.

Understanding what usually occurs during a candlestick pattern allows an investor to improve profitability, maintaining positions that are not reversing when the overall market is reversing. Join us in our chat rooms using our two-week free trial. You will gain some insights that do not occur utilizing other charting techniques. Click here to register.

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