August 23rd Daily Market Comments

What are the candlestick charts revealing about investor sentiment/market direction? Simple, the market does not know which way it wants to go, indecisive trading. In these conditions, reliance on the T-line is important. Utilizing patterns becomes a much more stable trading platform because of the inherent investor sentiment that builds up to create a pattern. Did we know there was going to be a buyout in CBLK? No, but the scoop pattern was a good indication bullish sentiment was coming into the price move for some reason.

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August 22nd Daily Market Comments

Today’s lower trading, after opening positive and trading positive, continues to keep the market indexes in the sideways trend of the market. This congestion area that started four weeks ago continues to reveal the lack of decisive trading sentiment.

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August 21st Daily Market Comments

Today’s positive trading not only confirms the market indexes are staying above the T-line but the fact that Today’s open in the indexes was above the open of yesterday’s trading is a very strong bullish signal based upon the formation of a bullish trend kicker. This implies the strength of the uptrend is continuing with the expectation of more upside.

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August 20th Daily Market Comments

Today’s consolidation has pulled back and use the T-line as a support level in the Dow, the 3T-line in the NASDAQ and S&P 500. It will be important to see the indexes remain above the T-line. Today’s recommendations are showing maintaining strength, not necessarily to be bought yet, but indicating that when the consolidation in the markets are over, these positions should act very well. As long as the indexes currently stay above the T-line, anticipate the uptrend remaining in progress.

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August 19th Daily Market Comments

Why should you not listen to the news and making investment decisions? Last week Main Street media could not talk about going into a recession enough. One tweet has obviously dramatically changed any bearish sentiment on Wall Street. Friday’s bullish trading revealed a Doji gap up at the 200 day moving average in the Dow.

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August 16th Daily Market Comments

Today’s positive trading appears to be confirming the Doji in the Dow right at the 200 day moving average area. Bullish trades can be slowly established but today’s final criteria requires the market indexes to close near the high end of their trading range. The hesitancy to buy long positions just yet is based upon the stochastics not yet showing oversold conditions. Any long positions added today require strength going into the close, trading near their higher end of the trading range.

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August 15th Daily Market Comments

Yesterday’s strong selling created a bearish J-hook pattern set up in the market indexes, indicating the T-line was a resistance area. The Dow tried to rally but failed at the 200 day moving average today before moving back down. The 200 day moving average may still be a support area. Watch to see whether the bearish J-hook pattern is the prominent pattern or whether the 200 day moving average area will be acting as a potential support. The bias of the portfolio should be to the short side but be on alert for support in this area or a bullish tweet.

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August 14th Daily Market Comments

Let the market tell you what the market is doing! This is one of the most basic professing of the candlestick Rice traders. Today’s trading is a perfect illustration of the simple rule that a bullish reversal signal requires confirmation of closing backup above the T-line. What was the market revealing over the past seven days of trading?

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August 13th Daily Market Comments

The markets are hoping for good news! As seen in the strong bullish trading Today merely based upon tariffs with China have been delayed till December 1. Unfortunately, this makes the market trend predicated upon whatever the next news tweak is representing. When the markets are trading indecisively, the T-line becomes a much more relevant trend indicator.

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August 12th Daily Market Comments

Being able to identify whether last week’s positive trading was merely a bounce or a full-scale reversal was made easy to analyze based upon the signal created on Friday. The major indexes all produced bearish Harami’s. Even though they did not occur in the overbought condition, they did occur at an important technical level, the T-line and/or the 50 day moving average.

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