The first few trading days of a new year using indicate what money managers have decided would be the good strong or weak sectors going into the new year of trading. This often produces big movements in specific sectors as well as the market indexes themselves. However, today’s trading showed bullish sentiment, with the indexes using the T line as support and continuing to trade higher, but it did so in a gradual fashion. Quite often, big price moves occur coming out of the chute during the first few trading days. Today’s positive trading occurred on a very calculated basis. The Dow traded up approximately 60 points for a good part of the day but then started slowly trading positive with the other indexes going into the latter part of the day. It was a gradual progression of buying, indicating more of a continued uptrend of the previous market trends before the year-end.
Today’s positive trading also showed strength resuming in the electric vehicle sector and a reversal in the downtrending oil stocks. These price moves were not rampant, indicating a more calculated buying process. The nature of today’s bullish sentiment is revealing a continuation of the current market trend, making the analysis of each individual stock/sector the top criteria. Let the market tell you what the market is doing. Candlestick investors gain a huge advantage by easily identifying which signals and patterns are occurring in specific stocks, constantly putting the probabilities of being in the right place at the right time in their favor. Happy new year, look for a very profitable 2022.
Good investing,
The Candlestick Forum Team
