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Stock Chat – Thursday 03/09/23
The best trade entries are produced by candlestick signals and patterns. The best trade entries utilize pattern setups followed by individual candlestick signal confirmation. Currently, the market downtrend was easily recognized by the evening star failure of the indexes at the resistance levels, the Dow failed at the 50-day moving average, and the NASDAQ failed at a down-trending resistance level. The visual graphics of candlesticks allow an investor to identify when the market is merely bouncing versus having a full-scale reversal signal. The bearish J-hook pattern formed in the indexes could also be witnessed in individual stock charts. This allows for optimal entries for short positions. The graphics of candlestick signals and patterns dramatically improve an investor’s trend analysis. Join us tonight for the candlestick forum free training session. Discover which short positions should have the most substantial downside potential. Quick survey – we have been approached by a hedge fund manager to set up a candlestick trading hedge fund, going both long and short. These usually require qualified investors with $250,000 to invest in the fund and will accept $100,000 investments. If there is any interest, please email steve@candlestickforum.com for more details.
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The effects of a blue ice failure are still in progress in the Dow. The other indexes are trading relatively flat but assume bearish sentiment is still in control as long as the indexes are now trading back below the T line. Any trading should have very compelling chart signals for both long and short positions today.
Today’s consolidation is not unexpected after the indexes hit their first target levels yesterday and backed off. Currently, the selling today is based upon Powells reiteration of aggressive interest rate hikes. However, note the indexes consolidated right back to the T line and have bounced up from there. Stay predominately long with a few short positions in the portfolio.
Swing trades setups are straightforward to identify using candlestick signals and patterns. The market reversal of the past few days has provided some very logical and high-probability swing trade setups. As illustrated in the Dow, a reversal occurred utilizing a MorningStar signal and a close above the T-line. The NASDAQ formed a bullish engulfing signal followed by confirmation with a close above the T line. Today’s trading took the indexes to resistance levels that everybody else was probably watching. The Dow sold off once it hit the 50-day moving average. The NASDAQ sold off once it hit the down-trending resistance level. This does not necessarily mean the uptrend is over. Stochastics are still heading up in the indexes are trading above the T-line. But this would imply there might be some profit-taking. Utilizing the unique candlestick formations allows the candlestick investor to get a much more concise analysis of what the current market trend and individual stock prices will be doing. Simple candlestick scanning techniques identify the moving sectors with the most bullish emphasis. Taking scanning one step further allows for determining which stocks in those sectors are producing the strongest signals and patterns. The artificial intelligence sector continues to act very bullish. Solar stocks are acting bullish. You gain valuable insights into which trades produce the most substantial results based on the information built into candlestick signals.
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Stephen Bigalow
The Dow is currently nudging the first resistance level, the 50 day moving average. The NASDAQ is testing the downtrending resistance level. The uptrend is in progress but don’t be surprised about some profit-taking over the next day or two at these resistance levels.
A candlestick market reversal was illustrated in Thursday and Friday’s trading. The candlestick market reversal consisted of a MorningStar signal in the Dow that closed at the T-line on Thursday. The reversal confirmation was a positive open on Friday and trading positive. This both confirmed the MorningStar signal and demonstrated the T-line would not act as a resistance level. Additional confirmation came from a bullish engulfing signal confirming in the NASDAQ and a left/right combo confirming in the S&P 500 and witnessing the reversal signals confirming allowed candlestick investors to start moving into sectors such as artificial intelligence immediately. It also provides the mental alert that short positions should be covered and long positions being added to the trading portfolio. The visual graphics of candlestick charts cut through the hopes/expectations of existing position moves by showing precisely what investor sentiment reveals. Prices do not move based on fundamentals! Prices move based on the perception of fundamentals. The graphics of candlestick signals allows investors to make the correct investment decisions immediately. Expect the market to remain in an uptrend as long as the indexes remain above the T-line.
The market indexes are confirming the bullish reversal signals of yesterday by trading up through the T line. This should have induced some profit-taking on short positions. But today’s analysis is that the indexes need to close above the T line to show a definite change of investor sentiment. Long positions are working as well as short positions but anticipate the bias to the long side if the market indexes close above the T line today.
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 03/02/23
March 9th Daily Market Comments
Be careful of the bounce, the Dow is still trading below the T line after a strong evening star signal failure at the 50 day moving average. Assume the downtrend is still in progress. Unfortunately, a positive trading day today would indicate more sideways motion of the markets. Be very selective, any positioning in these market conditions should have very strong chart indications.