Weekly Watchlist June 15th – June 19th

The expected profit-taking was indicated with a bearish Harami forming in the Dow this past week. The expectation was at least a pullback to the T-line, prompting taking profits in some of the long positions that were starting to show weakness. Was the magnitude of Thursday selling expected? Definitely not, but the prior candlestick signals indicated closing out some long positions prior to that big downdraft. Friday, the Dow formed a Doji/Harami signal. This will make how the market opens on Monday very important. Remember the Doji rule. The trend will usually move in the direction of how prices open after a Doji. The oil stocks, airlines, and specialty retailers showed strong reversals on Friday after their pullbacks. They can be bought if the market appears to be opening bullish on Monday, provided the stocks are opening with bullish confirmation. If the premarket futures indicate any weaker open, be ready to execute the short recommendations posted in the member’s area. Mark your calendars, June 20 will be an expanded training on identifying strong breakout price moves with candlestick analysis, with the application of the trading methods that will maximize your profitability on those breakout moves.

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