February 27th Market Direction
Nothing has changed, the uptrend remains in progress. The biotech's have come back strong today, LABU is up almost 14%. This market remains a market of individual sectors producing huge gains. There may be a logical reason why the market continues in a steady process. It may be due to the fact that the media, because of political reasons, is not publicizing the fact that the market is hitting new highs, considered the Trump rally. Usually when markets reach new all-time highs, that information is splashed all over the media. The important factor with candlestick charts is that it allows the candlestick investor to not only identify the trend but when there is a reversal in the trend. Currently, there is no indication of any candlestick sell signals and/or investor weakness. Knowing the direction of the trend and candlestick charts revealing which sectors are the strongest in this uptrend adds a compounding confirmation of being in the correct trades at the correct time. This was evident in the biotech sector, LABU had a strong day today, confirming the buy signals and trends in specific biotech stocks.
There is a very simple logic for being in the right trades at the right time. If the market trend can be easily identified with candlestick signals and patterns, the strongest sectors in that trend can be identified, and the strongest stocks in that sector can be identified. Candlestick analysis eliminates having to calculate and identify what is occurring at specific support and resistance levels. The signals tell you exactly what is happening at those levels. Simple confirming indicators dramatically improves the probabilities for confirming when a candlestick reversal signal is in progress. Knowing what each candlestick signal illustrates as far as the nature of investor sentiment during a specific period of the trend allows an investor to continue to hold or take profits at the appropriate times. This is what is allowing for inordinate profits to be obtained by identifying which stocks are going to move the strongest and maintain that move during an uptrend.
We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.
The Candlestick Forum Team
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