The current market downtrend is producing very strong profits in weak sectors. Check Steve Bigalow’s Stocks to Watch YouTube for identifying the best short position sectors.
Candlestick analysis makes trend analysis very simple. As long as the indexes are trading below the T line, the probabilities are extremely high the downtrend is in progress. Candlestick analysis is merely common sense interpretation of the graphics that the Japanese rice traders have provided over the past 400 years. Candlestick sell signals, in the overbought condition, resulting in indexes closing below the T line and stochastics heading lower is the visual probability factors that show the bears are in control. When utilizing simple candlestick scanning techniques to identify bullish or bearish trades, having a much greater number of good bearish trades is the additional logical confirmation the bears are in control. Without assumption, candlestick sell signals reveal good bearish trades. However, candlestick power sell signals allow for identifying which price moves are going to produce the biggest potential profits in a down trending market. Join us Saturday, January 15 for a candlestick mini spotlight training on identifying the strong power signals. This allows you to make hay while the sun shines.The strong bearish sectors currently are in the high tech area. Semi conductors are showing numerous strong sell signals and patterns,MXL, XLNX, WOLF, SLAB, INIT, ON,AVGO. The homebuilders are also providing good bearish charts, TOL, BZH, HD, LOW, LL. Strength is being witnessed in the metals sector, producing good bullish chart evidence. AA, CENX, KALU, VALE, LGO. Logical money management would utilize the bearish sentiment of the market to have the portfolio trades biased to the short side but always having a small number of bullish trades in place. This is where the simple scanning techniques of candlesticks allows for knowing which sectors to be predominately short and which sectors to be predominately long.
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