Be careful, the effects of yesterday’s selling, taking the indexes back down through the T-line, is still in effect. Although there is currently some positive trading, in the markets, the T-line is still a relevant factor. The indexes need to get back up above the T-line to show the uptrend is still in progress and diminishing a little of the indecisive nature of the markets. Breakouts are still working, today’s recommendation on NCTY after yesterday’s breakout is up 42%. The lithium battery mining and manufacturers are continuing to shows strength. The nature of the market remains the same, very sector specific.

Although the indexes appear to be in profit-taking mode today, the J-hook pattern set ups are working i.e. COHU, WLL, UPWK, FSLY. The wedge breakout patterns are also performing well, BLNK, FCEL, MGEN. Continue to stay in long positions that are confirming pattern breakouts.

The uptrend remains in progress, the indexes staying above the T-line. This is making the J-hook/fry pan bottom breakouts good profitable trades set ups. The pattern set ups are allowing for excessive profitability versus merely holding up trending stocks during a slow uptrend. Look for the pattern breakouts i.e.NAIL, UPWK. There are still short positions acting well also ADS, CPA. Make sure you keep safety stops in place.

The prospects of a stimulus package being passed continues to put the markets in a weight and see mode. The NASDAQ, however, continues to nudge all-time highs. Currently, there is no evidence of any severe selling pressure. The indexes continue to trade above the T line, but in an indecisive manner. Individual stocks are demonstrating the same trend movement, choppy. The trend analysis of any individual stock chart still relies on the T line. Continue to have safety stops in place.

An often asked question, “what does that mean and what do you do if a price keeps waffling up and down at the T-line?” That illustrates there is no decisive bullish or bearish force in the price move, it reveals your in a flat market. The Dow is experiencing that, however the NASDAQ is providing a steady bullish uptrend chart. Continue to utilize the T line to stay long or short. Watch the oil stocks, crude oil is up another $0.60 today.

Today’s positive trading reveals that the T-line continues to act as support. The NASDAQ is doing a good J-hook pattern up off the T-line. This is making the J-hook pattern the predominant pattern during this current uptrend. Numerous stocks are continuing into wave three of J-hook patterns.SYRS, VXRT, BILI, OCUL. The market trend analysis remain simple, as long as the indexes continue to trade above the T line, the uptrend remains in progress. However, the profitable trades are coming from specific sectors. The big profits are being made by identifying the strong individual stock patterns in the strong sectors.

The consolidation continues. Although the markets are trading lower, they are trading down in an indecisive manner. The NASDAQ trading lower but trading above where it opened. The Dow and S&P 500 not trading lower with any decisiveness. Crude oil prices are maintaining, keeping oil stocks relatively stable today. Biotech’s that are still benefiting from vaccines are acting well. The market conditions remain the same, the strong sectors continue to hold up wel. Weak sectors continue to trade below the T line. Have both long and short positions in the portfolio.

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Be careful! It is too early in the day to anticipate any buying in the indexes is stopping the selling of yesterday. However, note that the trends that were bullish, acting strong, are still maintaining above the T-line. Today, oil stocks are stronger than bears breath, crude oil is currently up $1.65. The market conditions are still producing the same trading strategy, specific sectors are showing good strength. The electric vehicle sector is holding up well. Specific biotech’s that are benefiting from the vaccines are acting well. Continue to have both long and short positions in the portfolio.

Although the market indexes have been in a steady uptrend, staying above the T-line, they are still sensitive to political rhetoric. Comments about the next stimulus package not yet agreed-upon knock the markets down very quickly today. This warrants keeping safety stops in place. Oil inventories were up big, knocking oil prices down a little bit. The electric vehicle sector appears to be profit-taking so far today. The trading strategy remains the same, stay in sectors that are showing strength, staying above the T line.