Weekly Watch List December 21st – December 25th

After trading lower most of the day on Friday, late afternoon buying brought the Dow back up above the T-line. The NASDAQ traded slightly higher. Although indecisive, the final criteria for analyzing the overall market trend is the T-line. As long as the indexes continue to close above the T-line, the assumption remains the uptrend is in progress. This is also creating an additional benefit for the candlestick investor. As long as there is not any worry in investor sentiment of any major selling, candlestick pattern breakouts are producing excessive profit potential, versus merely slow up-trending stock prices during a slow up trending market. The J-hook pattern, fry pan bottom pattern, and wedge breakouts are producing strong profit potentials.

Currently software applications stocks are acting very well, MGNI, PERI UPWK, KRMD, ANGI, OSPN, APPS. The utility sector is also producing good bullish pattern setups, CLNE, FCEL, ORA. The virus vaccine sector continues to maintain good strength, ATXI, SGMO. Electric vehicle sector is producing new bullish patterns, allowing for both short-term and long-term trade setups, NIO, SOLO. As long as the indexes continue to trade above the T-line, candlestick breakout patterns are going to produce much greater profitability.