November 30th Market Wrap-Up
Do all stocks go up in a rising market? Definitely not. Unfortunately many investors make only moderate gains during an uptrending market because they have some of their stocks going up while other stocks are either trading flat or trading lower. The overall return becomes very lethargic. The candlestick investor does not have that problem. The probabilities created by candlestick signals, i.e. investor sentiment, are greatly enhanced by the graphic signals illustrating what is occurring in each individual stock price movement. This allows for a very simple cultivation process. The candlestick signals demonstrate when the bullish sentiment is coming into a price move. They also illustrate when that bullish sentiment starts turning bearish. This allows the candlestick investor to quickly close out positions that are not demonstrating good bullish moves and move to better opportunities. This cultivation process creates portfolio positioning to be constantly oriented toward the strongest bullish movements. The advantage a candlestick investor has is the visual recognition of which price movements are going to create the strongest bullish profitability. What is the overall effect? In strong market moves, such as the current market conditions, the candlestick investor creates very strong profits, making hay when the sun shines.
Candlestick charts reveal which price movements are going to maintain the strongest uptrends as well as indicating when it is time to take profits. This was clearly evident this week in the tech stocks. Witnessing strong reversal signals in a specific sector allows for the immediate profit-taking and moving funds to other sectors that are starting to show bullish reversal signals. This constant rotation allows for taking advantage of the biggest price moves with the ultimate timing, not sitting through a pullback with the hopes that the pullback is going to reverse and start another bullish move. The graphics of candlestick signals reveal exactly what is going on in investor sentiment.
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The Candlestick Forum Team
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