The Dow 20,000 level is the perceived ultimate support level. It continues to hover in that area. This makes watching the 10 minute chart of the Dow very important. Obviously, continuing to sit in cash is the prudent strategy. Today’s lower open/trading remains in the observable nature of the overall market trend, up one day down the next continuation. Stay in cash until it becomes observable the market trend is reversing. There is no evidence of any change of investor sentiment of the current trend. Although this is a boring prognosis, it is better to be boring and keeping the powder dry for the next opportunity. The opportunity will come, be patient.

The market is down 1700 points, what does that tell the candlestick investor? The market opens down 2200 points, the candlestick graphics illustrate there is buying at these levels. That can also be clearly illustrated using the 10 minute chart. The indexes have moved excessively away from the T-line in the oversold area. Numerous stocks have moved excessively away from the T-line in the oversold area.

Be careful, although the market is trading positive it was very evident that after the market opened up dramatically, it continued to sell off. Being able to visually recognize the dark candlestick formation after the open immediately reveals the buyers have not continued. This obviously demonstrates the lack of any bullish pressure yet. Remain patient, until there is an obvious bullish candles/signal, the injury to the bullish sentiment still remains. This may be another waiting day. It may take multiple stimulus programs to gain investor confidence. It may take compelling news about the virus diminishing to diminish the overall fear factor.

The best way to trade this market is to be sitting in cash. No matter what trading strategy you would be using Today, there is no rhyme or reason in panic selling. The best thing to do is watch to see when the panic selling is over. Watch your 10 minute chart. Currently the market indexes, after opening much lower, have not sold off from those levels. Be patient, the herd mentality will be graphically illustrated in the candlestick charts. Be ready to buy. Note that the NASDAQ is currently trading above where it opened.

The markets are still not in good trading conditions. Although the indexes are trading higher, most stocks have gapped up but currently trading at the same levels where they opened, not making for good trading conditions. Fortunately, simple candlestick scanning techniques continue to provide good trades set ups although the number of good set ups are much lower than normal. FRO and TNK, today’s recommendations, have moved after the positive open Today. Until the markets show some continuity as far as a consistent trend, sit with cash. There will be opportunities.

Panic! Blood in the streets! That is what the markets appeared to be indicating. Our Friday night YouTube video illustrated what the market conditions usually are after a big selloff in the markets. It takes time for investor sentiment to heal. However, the common sense elements of investing based upon the Japanese rice traders provide the alert for getting ready to buy at the bottom. Currently the market indexes are trading off the bottoms of their trading range today.

The China fear is being expressed on all the news stations. People in New York City are not leaving their homes, not even going to the grocery stores. Not to use an old cliché, but the best time to be buying is when everybody is panic selling. Keep your powder dry. Today’s gap down in the indexes are starting to show some buying after the open. Watch for a double bottom set up. Adding any positions in these market conditions should have very compelling signals. Otherwise, be patient, opportunities will make themselves apparent in the next few trading days.

Whipsaw trading days in the markets reveal indecision. A Doji reveals indecision. The result of indecision is usually a change of investor sentiment. Although the market indexes are down substantially again today, it should be noted that numerous are continuing to trade positive. There are good bullish signals forming. The cruise stocks are still showing good shorts. Utilize the candlestick strong patterns, giving you better probabilities of working or at least maintaining in spite of market oscillations.

Which direction is the market moving? If you can’t figure that out by looking at the candlestick signals and patterns, common sense says that the market doesn’t have an observable direction. The whipsaw action of the indexes over the past few days of trading reveal indecision, implying that a reversal may be developing.

It was anticipated there would be some profit-taking after the largest one day price move in the markets. Fortunately, the talking head experts on financial news stations are projecting possible more downside. This is a very bullish sign. Currently today’s markets are forming Doji type days, not necessarily how the going to finish up. The bias of the portfolio should be toward the long side but expect the market to oscillate until it can figure out what it wants to do.