The market is producing a very good trading environment for having both long and short positions on at the same time. The Dow and the S&P 500 have been showing good strength, J-hook patterns, while the NASDAQ remains in a sideways wedge mode, making good short trade situations in the technology sector. This makes trading relatively simple for the candlestick investor. The strong bullish signals, such as the high probability expected results of an inverted hammer signal produces good profits. The sell signals have and are producing good profits in short trades. Buying puts in VIAC after a hanging man signal followed by a gap down produced excessive profitability. Currently there are still a good number of technology stocks that are in downtrends, in the process of producing bearish patterns such as bearish J-hook patterns. Until there is any dramatic change in the individual index charts, continue to maintain bullish trades that remain above the T-line and bearish trades that remain below the T-line.
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Good investing,
The Candlestick Forum team
