Investor sentiment is looking for good news! That can be seen in the candlestick charts revealing a steady uptrend in the overall markets with good strength exhibited on good news days. Another announcement of a potential vaccine provides bullish sentiment, anticipating the virus debacle will soon be over. It can be assumed as long as the market indexes continue to trade above the T line and in the up trending channel’s, the uptrend will remain in progress. The longer the indexes continue to trade in a slow uptrend, the investor sentiment will change from expecting a retest of recent lows to anticipating if the markets can reach the high levels before the virus downtrend. Candlestick investors have the advantage of witnessing the strength of individual stocks based upon pattern breakouts. The breakouts become much more potent if the underlying market sentiment is not showing any bearish fears. Currently, the gap up in today’s trading produces better probabilities of the Dow heading for the 200 day moving average. This would imply a few more days of up-trending markets.
Crude oil prices continued to move higher. Having the ability to analyze a commodity provides additional evidence of a sector move. Oil stocks are continuing their up-trends. Simple visual analysis allows investors to participate in the strongest sectors, such as oil stocks as oil prices are recovering. The specialty retail sector has produced some very strong profits. Regional airlines showed good strength today with numerous best friend signal breakouts through resistance levels. Many stocks will move up during a slow up trending market. Knowing the strong bullish signals allows the candlestick investor to take advantage of the sectors/stocks that will show the most strength during an uptrend. Utilizing the T line in conjunction with candlestick signals provides a very high probability trend confirmation indicator. The strong profit combination is the identification of a strong candlestick bullish signal and then maintaining that position as long as it stays above the T line. This dramatically improves an investors profitability.
Chat session tonight at 8 PM ET.
Good investing,
The Candlestick Forum team.
