January 21st Daily Market Comments

The uptrend continues to experience profit-taking which keeps exuberance from being exhibited. Today’s lower trading in the markets, although not very aggressive, has the transportation index showing strongest selling. The trend still produces the analytical process of identifying individual stocks/sectors as the top criteria. As always, safety stops be kept in place as the trend continues will in the overbought condition.

Share

January 17th Daily Market Comments

The trend sentiment has not changed. The slow uptrend of today indicates the lack of exuberance. The slow calculated buying creates a much more solid parameter for the uptrend. Continue to stay long, utilizing each individual chart analysis as the top criteria. Numerous J-hook patterns are working very profitably. The uptrend continues until there is the appearance of a reversal signal.

Share

January 16th Daily Market Comments

Bullish investor sentiment is still obvious. Trading above the T-line makes that more apparent. The trading strategy remains the same, stay predominately long as long as each individual stock position does not show sell signals and a close below the T-line. More than likely, most bullish positions moving in a steady uptrend are showing to be in the over bought condition, so have safety stops in place. Investment decisions are demonstrating bullishness based upon economic factors versus impeachment factors.

Share

January 14th Daily Market Comments

The indexes are trading mixed, the Dow is up, the NASDAQ is down, the transportation index showing good strength. This merely indicates funds shifting around versus any major change of investor sentiment. The uptrend remains in progress. Continue to stay long in positions that are not showing any sell signals in closing below the T-line, a very simple trend strategy.

Share

January 13th Daily Market Comments

The indexes form potential sell signals on Friday at the upper resistance level. Although the current trading is showing positive Today for the indexes, be on alert. The indexes need to maintain bullish trading going into the close today to illustrate the uptrend is likely to keep nudging the upper resistance level. Because the market indexes are at levels where there is the possibility of profit-taking, continue to analyze each individual stock chart on its own merits. Be prepared to take some profits in positions that have had strong price moves. Look for rotating into other sectors.

Share

January 9th Market Wrap-Up

The uptrend remains in progress! Some of the talking heads are suggesting this market has now gotten into the exuberance stage. The candlestick charts do not demonstrate any exuberance. Utilizing the T-line as a trend indicator provides a couple of important illustrations. First, it acts as a natural support resistance level with candlestick signals. As long as the indexes continue to trade above the T-line the uptrend is assumed to be in progress. But another aspect of the T-line also reveals when exuberance has started to come into the markets. This is illustrated when the market indexes start moving excessively above the T-line. However, that has not yet occurred. Although the market uptrend has been extensive, it can be visually evaluated that profit-taking has occurred along the way, sometimes intraday as well as occurring in a few days of pullback before the uptrend continues. A steady uptrend in the markets will usually consist of some stock/sectors moving positive while other sectors start backing off. The simple scanning techniques for finding the strongest candlestick trades allows investors to continually take profits in the sectors that have already moved and reallocate funds to the sectors that are showing new strong buy signals.

An additional benefit of candlestick analysis is identifying the signals and patterns that are going to produce the most strongest profitable trades during an uptrend when many stocks are slowly rising in a rising tide. LK is an example of a fry pan bottom/classic pattern that is producing excellent profits based upon our recommendation identifying the fry pan bottom pattern. Profitable option trades can be made with much more confidence in price trends as exhibited in AAPL, maintaining positions as long as it continues to trade above the T line. Simple common sense rules allow investors to dramatically improve their profitability when understanding that investor sentiment works the same way time after time. All boats rise in a rising tide. Simple candlestick scanning techniques allow investors to find the boats that are going to rise a lot faster.

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

Good Investing,

The Candlestick Forum Team

 

Share

January 9th Daily Market Comments

The trend analysis remains simple knowing that the Dow is currently in a wave three and continuing to trade above the T-line. The only suspicion of possible profit-taking is the NASDAQ gapping up Today to the top of the trend channel. AAPL has gapped up in the overbought area. Everything is starting to look rosy, investor confidence is very bullish, be careful of profit-taking soon. Stay long but attentive.

Share

January 8th Daily Market Comments

Today’s trading is a good example of why evaluating the premarket futures any time before 10 minutes within the opening is not worthwhile. The Iranian missile attack last night had the Dow futures down 355 points at one time. The Dow opened down approximately 20 points. Currently the markets are trading relatively flat, waiting for president Trumps announcements at 11 AM.

Share

January 7th Daily Market Comments

Today’s profit-taking in the markets is not unexpected after yesterday’s big reversal move. The indexes continue to trade above the T-line. The selling in the Dow is not dramatic. The NASDAQ continues to trade positive, indicating there is no major change of investor sentiment in the overall market trend. The strategy remains simple, stay long in positions that are continuing to trade above the T-line.

Share

January 6th Daily Market Comments

The markets again opened lower but are currently trading back up above where they opened. This has created numerous belt hold type signals, especially relevant in charts that open lower, on the T-line, and are now trading positive, ie AAPL. The belt hold type signals illustrate bullish pressure in the markets after the lower open. The T-line continues to be a relevant indicator. Do not let knee-jerk reactions whipsaw you out of positions.

Share