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
