October 20th Daily Market Comments

What is the direction of the market trend? What are the candlestick charts revealing? The graphics of candlestick analysis makes analyzing market trends/stock price trends relatively easy. When you cannot identify the direction of a price move, because of the lack of candlestick signals and/or the waffling of a trend near the T-line, the trend analysis is easy. There is no identifiable trend. Currently the transportation index is trading back up above the T-line. The NASDAQ is trading below the T line. The Dow and S&P 500 are trading back up right to the T line level. This does not provide any conclusive trend analysis. What do you do with this trading scenario? Simple, stay long in long positions that have not shown any sell signals and are still trading above the T line. Stay short in short positions that have not shown any buy signals and continue to trade below the T line.

 

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