February 6th Market Direction
Market trends can be better evaluated when utilizing candlestick formations. Although the indexes are trading lower today, candlestick charts revealed that trading closed above where the markets opened. This indicated there was buying occurring after the open. When added to the overall chart movements of the indexes, the candlestick investor has a much more clear assessment of the direction of investor sentiment. The overall market trend remains slightly bullish albeit relatively flat. This makes it easier to take advantage of the profitable sectors. Analyzing the ETF's of specific sectors can be done with the same accuracy as the overall market indexes and/or individual stock charts.
The gold sector continues to act strong. The biotech's, as seen in LABU is in a breakout area. Although the markets are trading relatively flat, the candlestick investor has the advantage of pinpointing which sectors are acting the most bullish or the most bearish. The visual information provided by candlestick charts allows for profitable trades no matter what time frame an investor is trading.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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