Stock Market Holidays
Stock trading in the USA takes place throughout the year, Monday through Friday, except for stock market holidays. The New York Stock Exchange (NYSE), NYSE Amex, NYSE Amex Options, NYSE Arca, NYSE Arca Options, NYSE Bonds, NYSE Liffe U.S., and NASDAQ are open for regular hours trading Monday through Friday from 9:30 am to 4 pm Eastern Time. Following this newsletter is a listing of stock market holidays for 2011 to 2013. Knowing when the stock market holidays are is useful in that even day traders need some time off from time to time. From the standpoint of the business of long term investing as well as day trading, however, knowing when stock market holidays are going be can be profitable. Trading volume will often dip in advance of stock market holidays as traders leave town for extended weekends and to find time with loved ones. After stock market holidays trading stocks and trading options as well as trading commodities and futures may pick up substantially as the market reacts to the collective stock market news that occurs when everyone has been out of town. The wise trader will be ready with fundamental and technical analysis as the holiday ends, ready to analyze market trends with Candlestick charting techniques.
Trading bad news gaps can be profitable when the bad news occurs over stock market holidays. A breakout gap can also occur as trading resumes after stock market holidays. The market will open either substantially lower or substantially higher than its pre-holiday close in these two situations. Traders following gaps will use Candlestick analysis to predict evolving market sentiment and profit with Candlestick trading tactics. The market inefficiency that comes with gap trading can be very profitable for those who objectively follow market reversal as well as new trends. Using Candlestick signals as a guide, traders can avoid the pitfalls of trading psychology. The twin demons of fear and greed are powerful adversaries. Using the clear and easy to read signals of Candlestick chart analysis can give the trader a not only objective but also profitable view of the market.
Stock market holidays each year occur on the following days:
New Year’s Day
Martin Luther King’s Birthday
Those trading in foreign markets will need to be aware of holidays such as Boxing Day throughout the British Commonwealth and the Queen’s Diamond Jubilee. Stock market holidays will vary from country to country but the principles of trading stock market holidays will always be the same, stay up to date on the fundamentals and track stock prices with Candlestick patterns.
Candlestick signals and patterns create obvious results. Those results are highly predictable because of the reoccurring investment sentiment that has been observed for hundreds of years. As illustrated in the Dow chart, two Doji's in the over bought area, away from the T-line, was an indication that some profit-taking should be expected. A pullback became a high probability. The same scenario could be applied to the NASDAQ chart. A Doji followed by a bearish engulfing signal, a left/right combo, was a strong indication the sellers were taking control. A lower open the next day was confirmation that the bears were now in control.
Unfortunately, that visual analysis is not always comprehended. This is due to the emotional expectations built into an investors psyche. After an extended uptrend, most investors fall into the mental comfort zone that prices should continue to go higher. Each one of their stock positions seem to be moving higher. That becomes the subconscious mental expectation. Upon seeing a candlestick sell signal in the markets, the mind is usually slow to comprehend the ramifications. Bullish moving stocks are usually moving in an upward direction in correlation with a bullish market. Bringing one's thought process into the correct mode of analysis requires a step back and a simple question. "If the market indexes are starting to show sell signals, what should I be doing with long positions?" This simple exercise diminishes the emotions and brings back the reality of what prices usually do when the market turns down.
Keep in mind, the strength of the individual candlestick signal represents the cumulative knowledge of all those investors that were buying and selling during a particular time frame. This can be witnessed in specific chart patterns and signals. The Domino's pizza chart clearly illustrates the Fry pan bottom experiencing a breakout is going to create the expected result of a Fry pan bottom in spite of what the general market conditions were for the day.
Yesterday the SGI chart was recommended as a short on a weaker open. It opened positive, above the open of the previous day and started trading positive. Should a chart like this should have been bought, especially with the general market indexes showing weakness? For the candlestick investor, that answer is simple. If a Kicker Signal is in the making, it's going to create a very strong price move. The signal is illustrating significant buying strength despite the fact the rest of the market was selling off.
Candlestick analysis is not a difficult investment method to learn. The signals are created by easy-to-understand reasons. If you are comfortable with a trading method, overlaying candlestick signals on top of that method will dramatically improve the results. Take time to learn the 12 major signals and you will have a professional understanding of why prices move when they do. Members - this Saturday, May 7 will be a free three-hour training session on the 12 major signals. This is the building blocks for understanding and identifying high probability/high profit trades situations. Do not miss this opportunity to learn the unique characteristics of each of the 12 major signals. This becomes a valuable training session for those learning the candlestick signals as well as a refresher training for those already experienced in candlestick trading.Chat session tonight at 8 PM ET. Identify the strong potential short trades. May 19 - Tina Logan will be the guest speaker. Sometime before the end of May, Larry McMillan will be guest speaking, providing a unique option trading strategy. June 9, John Bollinger will be demonstrating some interesting techniques around the Bollinger bands. Mark your calendars.
Chat session tonight at 8 PM ET, Everyone is welcome!
Website Special reflects curent newsletter. If you are reading an archived newsletter you will bedirected to CurrentWebsite Special