Candlestick charts produce very relevant profitable trade information. The first day of a trading year usually illustrates what the major money managers around the world have assessed as being the strong sectors going into the next year. This becomes graphically evident with candlestick charts coming out of the chute the first week of a trading year. Today, the markets revealed they are still in a very tentative state, probably being affected by the Georgia election, investors not sure what the government policies will be if there is a change of power in the Senate. If that was the reason for the market selloff today, it doesn’t matter! The candlestick investor can clearly evaluate that there was selling occurring in the market trend. The Dow formed a bearish engulfing signal while once again failing to breakthrough the upside resistance level. More compelling, the NASDAQ did a bearish left/right combo, a strong reversal signal in itself. Add the fact that it also closed below the T line, which it hasn’t done for many months, clearly indicated there has been a change of investor sentiment. This allows the candlestick investor to make an immediate position decisions for their portfolio. Long positions that are starting to show a change of investor sentiment should be closed out, with the idea that there will be better places to put trading funds. Likely, the addition of short positions is logical if the markets show more weakness tomorrow.
The bullish sectors were evident. Strength was seen in the electric vehicle stocks as well as gold stocks. Numerous gold stocks and silver stocks produced strong bullish kicker signals today. This would indicate much more upside in that sector. The electric vehicle stocks are demonstrating strength after supporting at observable support levels and continuing to trade positive in week market conditions. Our recent recommendations in GP and XPEV allow investors portfolios to continue to show bullish profits even when the overall market conditions are tentative. Adding gold stocks to the portfolio is also logical based upon the new strength in gold and silver. Other sectors are starting to show weakness. Join us this Saturday, January 9, for a full day training on the indicators that produce high probability results for when it’s time to start taking profits. Approximately six major indications allow candlestick investors to evaluate when the probabilities of the bullish price move is starting to diminish. Being able to identify these indicators allows an investor to make decisions without emotions effecting there trading.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team
