FREE SAMPLE Candlestick signals and patterns illustrate which stocks and sectors are showing the greatest strength or the greatest weakness. These advantages are being applied also to a very specific industry, The electric vehicle industry.

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An assumption, the electric vehicle industry is not only here to stay but likely has a huge market potential over the next few years. This makes simple candlestick scanning techniques valuable to the short-term trader as well as a long term investor. The electric vehicle industry is growing rapidly. Why? Two important elements! First, the general public favors electric vehicles that do not create pollution. This is the most powerful aspect of the popularity of electric vehicles. Secondly, technology! The technology advances in the power generation/batteries of electric vehicles are advancing exponentially. This is making electric vehicles very rapidly affordable.

But here is the major problem of investing in the electric vehicle sector. Which company’s technology is going to make another company’s technology rapidly obsolete? This is where candlestick analysis provides a huge advantage for investors. Wouldn’t you like to be able to immediately identify which companies are creating a technological advantage? There are currently over 50 companies in the process of producing both electric automobiles and trucks.

After trading lower most of the day on Friday, late afternoon buying brought the Dow back up above the T-line. The NASDAQ traded slightly higher. Although indecisive, the final criteria for analyzing the overall market trend is the T-line. As long as the indexes continue to close above the T-line, the assumption remains the uptrend is in progress. This is also creating an additional benefit for the candlestick investor. As long as there is not any worry in investor sentiment of any major selling, candlestick pattern breakouts are producing excessive profit potential, versus merely slow up-trending stock prices during a slow up trending market. The J-hook pattern, fry pan bottom pattern, and wedge breakouts are producing strong profit potentials.

Currently software applications stocks are acting very well, MGNI, PERI UPWK, KRMD, ANGI, OSPN, APPS. The utility sector is also producing good bullish pattern setups, CLNE, FCEL, ORA. The virus vaccine sector continues to maintain good strength, ATXI, SGMO. Electric vehicle sector is producing new bullish patterns, allowing for both short-term and long-term trade setups, NIO, SOLO. As long as the indexes continue to trade above the T-line, candlestick breakout patterns are going to produce much greater profitability.

An often asked question is which are the strongest candlestick signals and patterns. The answer is relatively simple. The signals and patterns we’ve already identified have been cultivated down to the best set ups. The nature of the market trend will indicate which signals are patterns are performing the best during that time frame. Currently, the J-hook pattern is the predominant pattern being created in these market conditions. There are extremely strong bullish J-hook pattern setting up in the oil stocks.COP, OXY, APA, CPE, NOG, OIL, HAL, DVN, MUR, MTDR, VLO.  The probabilities are dramatically improved when you can see a whole sector being bought. This allows the candlestick investor to scan for which stocks in that sector have the strongest charts. This is putting the stars in alignment. The shipping stocks are also showing good bullish patterns. FRO, DAC, TNK, DSSI. Information providers are also acting strong GRPNB, FSLY, BILI, VERI. As long as the market indexes continue to trade above the T line, anticipate the bullish candlestick chart patterns are going to continue to perform well.

Stocks to watch The Dow closed below the T-line on Friday after a bearish left/right combo earlier in the week. This would imply the possibility of a bearish pullback. These market conditions make long positions in the portfolio having very compelling bullish chart patterns. The electric vehicle sector is still showing excessive strength, FB, WKHS, BLNK, TSLA, FUV, HYLN. The lithium mining stocks are still acting well, WWR, TTHM. Numerous biotech stocks are showing strength with the virus problem still present. VCRT, SRNE, NVCR, BNTX, MESO, CRMD. Be ready to add some short positions to the portfolio on weakness, INO, AVRO, ESPR. Software applications stocks have some good prospects as well as home furniture companies are showing strength. These market conditions warrant having both long and short positions in the portfolio.

The market pullback hard this week with all the indecision occurring in the political markets. The virus, the lack of economic stimulus packages, the indecisiveness of the polling. Although there are some potential bullish sectors and bearish sectors to consider, the necessity to do any heavy investing/trading this week is probably ill-advised until the election results are tabulated, which may or may not be by the end of the week. The construction sector has shown strong bullish signals, EVA, SUM, CX, ORN, TPC. The automotive sector is showing weakness, providing some short opportunities. NIU, TSLA, AGNT, WGO, F. Do not expect any strong directional movement of the markets until after Tuesday’s elections. This will put more emphasis on analyzing what each individual stock chart is conveying, whether in a strong or weak sector or not. The trading strategy for the week is to keep your powder dry.

The indecisive market trend is obvious. First, the direction of the trading has been sideways for the last week of trading. Secondly, the nature of each trading day, forming indecisive hammer type signals in the Dow, also illustrates a lack of decisiveness. The lack of any market direction can probably be attributed to waiting to see what the election outcome will be. Fortunately, the candlestick investor has the benefit of being able to do simple scans to find which sectors/stocks are performing the strongest. This week, there are strong signals in the biotech/healthcare sector. RVP, NXTC, NXGN, NK, CRDF, ADNT. The business software sector has shown some good J-hook pattern setups.VERI, ECOM, MDLA, VIPS. The apparel store retail stocks are showing good strength. DLTH, PLCE, ANF, DDS. The sideways mode of the market is likely to stay in effect until there is a dramatic change of the polls for the election. The results of the polls apparently are not producing any insights due to the closeness of the races as well as the lack of confidence in the accuracy of polling. These market conditions make the results of simple candlestick scanning techniques much more relevant for identifying profitable trades.

The market continues its uptrend with the indexes trading above the T line. The Dow appears like it will be forming a J-hook pattern, which implies the next leg up should take the indexes well past the recent highs. There are numerous uptrending positions that are maintaining by the fact that they remain above the T line, indicating strong uptrends. The Internet information providers are showing good charts, ZM,ZIPS, MDLA, TZOO, JD, The retail sector has a number of good bullish chart patterns, DDS,BGFV, CHWY, DLTH. And the utility sector are showing good J-hook pattern set ups. AEP, ORA. As long as the market indexes continue to trade above the T line, there are a good number of candlestick pattern breakouts that are producing excessive profitability. Stay predominately long in this market but always have your safety stops in place.

The market indexes continue their uptrend this past week with the easy visual analysis that the indexes were continuing to trade above the T-line. Gold stocks and silver stocks have shown good buy signals with gold and silver prices starting to move positively again SBSW, AGO., DRD, EGO, MTA, HMY, WPM. Restaurant stocks are starting to show good strength also. DIN, RRGB. Retail stocks are picking up strength WSM, LITB, .KIRK, PRPL, DLTR, LOW. Anticipate some profit-taking this week with the indexes moving a little bit away from the T-line. Join us this weekend for a full comprehensive training on how to utilize the T-line in the candlestick patterns to dramatically enhance your trend analysis and your profitability. 

Although the indexes continue to trade above the T-line, giving strong probabilities a slow uptrend remains in progress, the nature of the uptrend appears to be very choppy. This was implied with the Dow opening much higher but trading below where it opened on Thursday, while the NASDAQ traded higher. This demonstrated in continuity, demonstrating some sectors are going to trade stronger while other sectors are trading lower. The insurance sector showed good strength.EHTH, NMTH, MTG, UNM, FNF. Auto dealers started showing strength, LAD, AN, SAH.
In some of the retailers were showing good strength, HIBB, BBBY, KSS. The important factor will be how the markets open on Monday morning. The indexes need to see good premarket for the continuation of the uptrend. A close below the T line in the Dow and the S&P 500 and NASDAQ would imply a down-trending channel is the stronger trend indicator. How the markets close on Monday in regards to the T-line will be very important. Join us on October 17 and 18th for a two-day training on how the T-line is one of your strongest profit-producing indicators used in conjunction with candlestick signals. Click here for more information.