When the markets traded positive Today, it produced the possibility of a bullish flutter kicker signal, one of the strongest bullish candlestick signals. However, although the market indexes did trade positive, they formed Doji days, illustrating indecision. The indexes are currently trading above the T line but the Doji day continues to produce the possibilities of the markets trading lower again. Remember the Doji rule! Prices/trends will usually move in the direction of how they open after a Doji. This makes trend analysis relatively simple. The markets will probably move in the direction of how the the indexes open tomorrow. A lower open, causing a selloff, would bring the indexes back down below the T line. The NASDAQ is still trading relatively strong, not only above the T line but also above the 50 day and 200 day moving averages. Fortunately for candlestick investors, a sideways moving market still allows for the identification of strong bullish charts or strong bearish charts. Currently the medical supply and medical healthcare stocks are acting well. The oil stocks are showing good bottoming action.
Being able to identify what type of signal/pattern is developing an individual stock price allows investors to put on appropriate option strategies. Most investors think buying calls in an uptrending stock is the best way to make a profit. That is not always true. Simple option spread strategies have much better profitability, as well as probability, when knowing what the next price move should be. Join us on May 2 for a full day training on the appropriate option strategies. They are not difficult. You gain a whole new perspective on how to put high profit option trades in place using easy to apply spreads and calls.
Chat session tonight at 8 PM ET with Stephen Bigalow. Click here to register.
Good investing,
The Candlestick Forum team.
