The Dow is showing good strength in the sense that is consolidating in the uptrend, revealing the lack of exuberance coming into the markets. The NASDAQ has picked up good strength ever since the best friend signal, followed by additional gap ups, revealing excessive strength in investor sentiment. The portfolio strategy remains simple. Continue to trade the candlestick pattern breakouts, which are performing well with the lack of any bearish sentiment showing in the overall markets. This also makes for good strong profits in option trades, as revealed in our option training this weekend. The benefit of candlestick analysis is it provides clear graphics of when the bulls are taking control with excessive strength. The best place to look for strong trades is identifying the candlestick powers signals that have developed in the oversold area. This creates high probability/high profit trade set ups.
Watch the biotech’s and the medical equipment stocks. The Biotech’s are showing good strength,CARA. ATNF,MRNA, GRFS and OCGN can be bought on strength. It was pointed out by Cramer this week. Expect some follow-through with the additional exposure. The medical equipment stocks are also acting well,EYES, STKS, EKSO. Although the market indexes remain in a good uptrend, trading is still reliant on strong sectors. These are being pointed out by simple candlestick scans.
