May 22nd Market Direction

Accurate market analysis is greatly enhanced by knowing the signals and patterns that recur in human nature. Accurate market analysis is the first step for putting all the stars alignment. If you can analyze the overall direction of the market or specific indexes, you have a much stronger indication of which sectors/stocks are going to perform the best. Obviously the correct market analysis instigates scanning for the strongest stocks in the sectors that are performing the best. Currently, J-hook patterns are producing very high profit/high probability trades. The slow curve has expectations of strong bullish breakout moves. Being able to identify these pattern setups visually produces better profit opportunities than merely participating in uptrending stocks during an uptrending market. Candlestick patterns work just as effectively on the bearish side. As illustrated in the CROX, the dumpling top shows great prospect of the next wave starting to the downside. Candlestick charts also reveal what investor sentiment, especially those that follow a company’s history fairly closely, anticipate going into an earnings report. Simple logic dictates that if the smart money is selling before going into an earnings report, they probably know the earnings are not going to be favorable. Also, if the charts show buying going into an earnings report, the probabilities are pretty strong that somebody knows those earnings are going to be favorable. Everything built into candlestick analysis is merely common sense put into a graphic depiction. Take advantage of our Memorial day sale were all downloadable trainings are on sale for 50% off. This is a great opportunity to build up a library of chart knowledge that you can keep on your computers. Click here to view our store online.

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Good Investing,

Stephen Bigalow