Archives for August 2023

Although the Dow was up strong today, it did not change the sideways trajectory of the Dow. Add the factor’s that the NASDAQ, S&P 500, and the transportation index continue to trade sideways as well as below the T-line, and there is not any major trend movement in this market. However, the advantage of analyzing candlestick charts is having the ability to scan for the individual stocks that are having the strongest bullish or bearish signals/patterns. This allows for continuing to make good profits even though the overall market trend is sideways. J-hook patterns and kicker signals are still producing good bullish profitability as well as strong bearish best friend signals producing good strong short trade profits. Simple candlestick scanning techniques pinpoint good trades when utilizing the universe of 9500 trading entities.

Chat session tonight at 8 PM ET.

Good Investing,

Stephen Bigalow

Power trades can be enhanced by knowing the direction of the overall market. The downgrade of the US treasury bonds created strong selling in the market indexes on Wednesday, closing the indexes below the T line. Today the indexes tried to come back up above the T-line, but the T-line acted as a resistance level. This implies the sellers are in control. However, stronger-than-expected earning reports have produced numerous bullish kicker signals. This makes the direction of the market tomorrow important. If the market, especially the Dow, opens lower, it will create a Dagwood signal. The Dagwood signal is an evening star signal followed by a bearish Doji, an evening sandwich. However, if the markets open positive and trade positive into the end of the day, that would illustrate a sideways market, making long and short positions viable trades. In investors, analysis becomes greatly improved by knowing the price movements in specific stocks/sectors based upon the combination of the overall market trend analysis and the strong buy or sell signals in each individual stock. Join us tonight in the candlestick forum chat room to analyze which stocks appear to have the best high-profit power moves.

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

Good Investing,

Stephen Bigalow