November 6th Market Direction
Utilizing candlestick charts, it becomes much easier to analyze what the overall market trend is doing. The uptrend of the major indexes remain in progress as long as they continue to trade above the T line. But this has a much more relevant factor. When the overall market trend can be seen as to not be changing direction, the candlestick investor can take advantage of the high profit pattern breakouts that develop as investor sentiment continues to remain bullish. Frypan bottom breakout's as seen in our recommendation on JUNO produce huge profits in a very short period of time. Having the ability to exploit these moves at the exact appropriate time is also a major feature built into candlestick charts. The bullish flutter kicker was evidence of a high probability breakout situation.
All boats rise in a rising tide, but candlestick charts allow for the identification of which stocks/sectors are going to rise much faster. The oil stocks have been a heavier allocation to our portfolios. This is due to having the ability to analyze crude oil futures that would be affecting crude oil stocks. Knowing which sectors are having the most bullish investor sentiment or the most bearish investor sentiment allows investors to have investment funds allocated heavier in those areas. This month it may be crude oil prices moving up dramatically. Next month it may be gold prices moving up. The candlestick charts produce the visual evidence of where investment funds are moving to and moving from. It is not uncommon to have 20%, 30%, 40% profits in specific sectors when entering those areas at the appropriate times based upon candlestick signals.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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