The market indexes are showing a potential reversal. The important word is potential! The Dow showed a bullish reversal signal after supporting at the same level it supported a few months ago. However, although the NASDAQ and S&P 500 traded positive on Friday, they didn’t form reversal signals. And they did not close above the T line. This makes it important to see what the premarket futures are indicating for the open on Monday. The Ukrainian situation still acts as a cloud over any bullish trading. When markets are in transition mode, learn to be patient for confirming candlestick signals and patterns. The confirmation dramatically improves your probabilities of being in correct trades.This does not deter establishing trades in the strong candlestick signals and patterns.
IMGO is demonstrating a bullish breakout after a series of Doji’s. This is a very strong reversal pattern because of the magnitude of the indecision.CTRN it is providing a strong sell pattern trade. This is adding numerous candlestick trade indications that dramatically improve the probability of not only being in the correct direction but in a strong price move direction. The oil sector remains a strong sector due to oil prices continuing their uptrend, a consequence of a Ukrainian conflict. Oil stocks can be bought on strength on Monday. COP, APA, OXY, EOG. Airlines have been showing bearish patterns. They can be shorted on weakness MondayUAL, DAL, LUV ALK.

If you are feeling anxiety about the current market, that means you are probably positioned incorrectly in your trading. This is from the voice of experience! Knowing that candlestick signals and patterns produce high probability results, feeling anxiety means you are not doing what the candlestick charts are telling you to do. This reality check is what has solidified the acknowledgment of what the candlestick signals are telling us at the T-line. Witnessing candlestick sell signals, in the overbought conditions, in the indexes, and witnessing closes below the T-line cuts through the emotional hopefulness that long positions are going to continue to move in an upward direction. As the Japanese rice traders profess, let the markets tell you what the markets are doing. Visual confirmation that the bears are starting to take control allows the candlestick investor to move from long positions to short positions, eliminating the emotional decisions. The T line is one of your most effective trend analytical tools. The T-line truisms are extremely high probability confirmations of bullish trends or bearish trends. Mark your calendars! February 5, a Saturday, will be a full-day training on power signals and patterns that produce extremely high probabilities you’re going to be in a correct trade. They work as effectively on the short side as they do on the long side. Using that information allows for identifying which positions are the best/strongest to move in a specific direction. Currently, the metals are starting to be sold off. NMG, HBM, AA, CENX, SYNL. The shipping stocks are starting to turn over, SBLK, ZIM, GNK, GSL. If the downtrend of the markets is continuing, the higher the probability trade setups are downtrends that are just starting from the oversold condition versus attempting to short positions that have already had excessive downward moves.

The downtrend in the market indexes were illustrated by the fact that they could not close above the T line. Currently, there has been buying at support levels, the NASDAQ opened at the 200 day moving average on Friday and traded positive. The Dow closed as a hammer type signal above the 50 day moving average. This implies there might be some basing in this area but stochastics are still in a downtrend. In these market conditions, simple candlestick scans identify that there are both good long positions and good short positions.

The home improvement sector is still trading lower, HD, LOW, LOVE, LL, FND. Retail apparel stocks are selling off, SCVL,BKE, CHS, ROST, GPS, LULU. Oil stocks continue to maintain strength with crude oil trading back up over $84 a barrel.OIL,RES, LBRT,NBR, PTEN, LPI, MTDR. Although the general market indexes are having a downward trajectory, there is the probability of bounces in the downtrend. The T line works extremely well in conjunction with candlestick signals for maintaining good long or short position trends.

Candlestick analysis indicated obvious reversals of the indexes this week. The Dow broke down through the bottom of a wedge formation and closed below the T line. Witnessing the selling in the Dow, at the same time the NASDAQ and the S&P 500 were demonstrating indecisive trading signals in the overbought condition, produced a high probability scenario of a change of investor sentiment occurring in the markets. This provided the opportunity to start closing out profitable long positions and adding short positions to the portfolio. Join us Saturday, September 18 for a full day training on the indicators produced in candlestick charts that allow for taking profits or going short at the appropriate times. This is valuable information that can be utilized for the rest of your trading career, whether a swing trader, long-term investor, or a day trader. This information works on all time frames.

Look for the casino stocks to trade lower after strong sell signals at resistance levels,WYNN, LVS, MLCO. Retail stocks are also trending lower. DLTR, M, BBBY. The Biotech’s are showing good bullish J-hook patterns.DCPH, RCKT, ATRA, VIR, LHDX. The portfolio bias should be oriented toward the short side.

Big profit breakouts are more likely to occur when you can analyze that the market trend is remaining in a consistent uptrend. This is the result of investor confidence continuing to build up as long as there is no selling fear. This makes breakout set ups more likely to produce high profit/high probability gains. Candlestick patterns, such as the fry pan bottom/J Hook set up in SPCE was a much greater probability with the market continuing higher. Do all candlestick patterns produce big gains? Definitely not, but the probabilities of a pattern breakout is much greater when the overall market conditions do not demonstrate any investor concerns. Our training this weekend revealed a number of pattern set ups that are likely to produce big breakout moves. Watch for the Candlestick Forum Breakout Alerts

NASDAQ stocks, while also producing weak sectors, related to the Dow index. The simple scanning techniques provided by candlestick analysis allows for identifying which stocks/sectors are going to continue their uptrends while other sectors will continue the downtrends. Currently, Biotech stocks still are producing very strong patterns, such as J-hook patterns and fry pan bottom’s. This allows the candlestick investor to have trading funds concentrated in the sectors that are obviously producing strength and short positions in sectors that are obviously week.

The lack of any major bearish sentiment in the market is allowing strong breakout set ups to perform as expected. This weekend was a mini spotlight training on identifying breakouts. This was just a prelude to our full day training on how to expect a breakout to occur and then what to do with that breakout based upon the trading results afterwards. Simple candlestick analysis allows investors to dramatically improve the probabilities of participating in big price moves. Join us June 26 for an in-depth analysis for being prepared for big breakout moves

The Dow traded positive on Friday while the NASDAQ back off. This makes the assessment that the uptrend remains in progress as long as the indexes continue to trade above the T line, but it still may be a choppy/sector specific market atmosphere. The Biotech’s continue to act well,HGEN, AUTL,SMMT, ATNF, KYMR, WVE. The shipping stocks are also showing strength, they can be bought on positive trading Monday,GNK, NNA, ASC, SB, DSSI. These market conditions allow for having long positions in place as well as short positions i.e. PRPL.
The uptrend should continue in the markets as long as there is not any severe reversal signals.

The strength in the Dow and the S&P 500 continues to make candlestick pattern breakouts producing very good profits. The transportation index also is producing sectors creating good profits. Although the NASDAQ traded positive on Friday, it still closed below the T line as a Doji-type day. This would allow for the prospects of the high-tech stocks still maintaining good short profitability. There are a good number of fry pan bottom patterns in the breakout mode.JBL is producing a scoop pattern set up, this would imply a positive open on Monday producing a strong bullish move.

The mining stocks, gold, and silver, copper, steel, and iron, are all producing strong bullish patterns.TRQ, TGB, KL, CLF, SA, KGC. Copper stocks, FCX, SCCO, COPX.
Regional airlines are producing good bullish patterns, AZUL, GOL, FWRD, CPA. The steady market uptrend allows for simple scanning to find the strong stocks and sectors. A great learning high-tech product is our mousepad with 12 major signals. Keep the graphics of candlestick signals at your fingertips. Click here to view our mousepad product.

Although the market indexes are in a sideways mode, there are still some good strong bullish sectors. However, it will be very important to see how the market indexes open on Monday. The NASDAQ, on a lower open, would be creating a Dagwood signal, an evening star signal followed by a bearish Doji sandwich, an evening sandwich. The biotech sector continues to act strong, with co-vid related stocks showing good strengthVIRX, VXRT, OCGN, FREQ, TBIO, AMTI. The medical supply sector also continues to show good bullish chart patterns CTSO, LLIT, ORGO, HEXO, MRVL, TRHC. Restaurant stocks are showing strength in RRGB, BJRI, TXRH, CHUY, OSR. Keep in mind, entering trades in strong sectors still requires witnessing strength in the overall market trend. Obviously, if the premarket futures are showing the markets are going to open much lower, you do not want to be jumping into bullish trades. We have been getting many inquiries about the Candlestick Forum flashcard sets.

The candlestick signal set and the candlestick pattern set each consist of approximately 50 flashcards. This “high-tech” product has gotten a lot of positive feedback. It allows investors to learn the signals and patterns very quickly. Try it, it will be helpful.