Weekly Watch list May 26th – May 29th, 2020

The markets are currently trading in a trading channel, the Dow and S&P 500 are trading sideways while the NASDAQ is still in a slow upward trading channel. This makes for very profitable trading for the candlestick investor. It allows for simple candlestick scanning techniques that pinpoint the strongest sectors. Then he sector can be scanned to find the strongest individual stock chart patterns. This is basically putting all the stars in alignment. Obviously, investor sentiment keeps getting stronger with the expectations that the virus lockdown is eventually going to be released, letting the US economy get back to the conditions prior to the virus. Numerous sectors are producing some very good profits. Crude oil has produced a strong upward price move, making the oil stocks sector a strong profit area. Biotech stocks continue to produce good profits. Specialty retailers are still moving up strong. This coming week, anticipate application software companies to produce powerful moves. The advantage of candlestick analysis is that it allows investors to have funds in stock/sectors that are going to produce high probability, high-profit trade setups.