March 23rd Market Wrap-Up
There are times when outside events influence the trend of the markets. The advantage of using candlestick analysis is the instant evaluation of what investor sentiment thinks of those events. Currently the markets are moving based upon the expectations of passing, not passing, or delaying the healthcare bill. Analyzing the candlestick charts confirm investor sentiment reactions to the ebbs and flows of Media News. As witness today, after trading higher during the day, when it was announced the healthcare vote would be postponed the market ended absolutely flat. Observing the candlestick charts is nothing more than confirming the attitude of investors. However, specific sectors can be observed to either be adding strength or declining. This allows for much more accurate assessment of what the results of an outside influence may have on specific sectors.
The delay of the healthcare vote did not seem to deter the strength that has been developing in the biotech stocks and medical equipment stocks. As an investor, the candlestick charts clearly defined which sectors to be buying or which sectors to be shorting based upon an expected event, such as passing or not passing a legislative bill that everybody is watching. You may not be sophisticated enough to project bullish or bearish ramifications on specific stocks or sectors. But you do not have to. The graphics of candlestick charts reveal what investors are anticipating. They have done the analysis for you.
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The Candlestick Forum Team
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