June 29th Market Direction

The major indexes formed bullish Harami’s Today, a very strong candlestick signal indicating the selling has stopped. However, all the indexes are still trading below the T-line. This allows for the candlestick investor to be prepared for the next trend movement. A failure of the bullish Harami, a lower open tomorrow, would continue to make the T line downtrend the viable analysis. A positive open tomorrow, confirming the bullish Harami, would add credence to the Dow supporting at the 50-day moving average and the NASDAQ supporting at the up-trending channel. Knowing what to expect, based upon how the markets open, allows for increasing or closing long and short positions in the portfolio.

Currently there are sectors that are producing good strong steady profits. Gold stocks, for example, are gaining strength because gold prices continue to slowly move positive. Having the ability to analyze the overall market trend, analyzing individual sectors, and then able to analyze which stocks are producing the strongest signals in that sector allows the candlestick investor to dramatically improve the probabilities of being in the correct trade at the correct time, putting all the stars in alignment. Knowing which candlestick signals and patterns produce the strongest results also increases the probabilities of being in profitable trades at the optimal entry points.

Chat session tonight at 8 PM ET.

Good investing,

The Candlestick Forum team.