January 26th Market Wrap-Up
Dow 20,000? Merely a round figure target! What is more important is the analysis of the candlestick charts at these levels. Because investor sentiment reacts the same way time after time, it is much more important to see what type of investor sentiment is occurring at targets everybody else is watching. A bullish engulfing signal, after a Doji, followed by a gap up through the resistance level provides a much more clear indication of what is occurring in investor sentiment. Combine that analysis with the NASDAQ, S&P 500, and the transportation index, which can be done in the matter of a total of 20 seconds, provides a very clear assessment of what investor sentiment is doing during the market trend. The ability to analyze the overall general market trend is merely the first facet of placing individual stock positions into the portfolio. Logic dictates that if you can analyze the market trend, analyze which sectors are acting the strongest during the current market trend and analyze which stocks have the best chart patterns in that strong sector, you basically put all the stars in alignment. This provides the candlestick investor with the tools to be in the highest probable/highest profitable trade set ups.
Chat session tonight at 8 PM ET, using candlestick signals as early alerts. Click here to register.
The Candlestick Forum Team
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