The indecisive market trend is obvious. First, the direction of the trading has been sideways for the last week of trading. Secondly, the nature of each trading day, forming indecisive hammer type signals in the Dow, also illustrates a lack of decisiveness. The lack of any market direction can probably be attributed to waiting to see what the election outcome will be. Fortunately, the candlestick investor has the benefit of being able to do simple scans to find which sectors/stocks are performing the strongest. This week, there are strong signals in the biotech/healthcare sector. RVP, NXTC, NXGN, NK, CRDF, ADNT. The business software sector has shown some good J-hook pattern setups.VERI, ECOM, MDLA, VIPS. The apparel store retail stocks are showing good strength. DLTH, PLCE, ANF, DDS. The sideways mode of the market is likely to stay in effect until there is a dramatic change of the polls for the election. The results of the polls apparently are not producing any insights due to the closeness of the races as well as the lack of confidence in the accuracy of polling. These market conditions make the results of simple candlestick scanning techniques much more relevant for identifying profitable trades.
