June 15th Market Wrap-Up
Although the markets traded lower today, the candlestick charts showed there was still good strength of the market based upon the candlestick formations. The bullish candles were formed with trading of the indexes closing above where they opened. The Dow has been maintaining a steady trend above the T-line while the transportation index and the S&P 500 are also trading right at or above the T-line. Add the factor that these indexes opened lower and then traded positive from where they opened on the day indicates there is no dramatic selling occurring in the markets. The NASDAQ is trading well below the T-line after it's hard selling of last week. It traded above where it opened today but still well below the T-line, indicating there is no dramatic bullish or bearish pressure occurring in the NASDAQ. Overall, this has been putting the market indexes in a wait and see mode, reducing the number of strong viable charts to either go long or go short. The current trading strategy remains staying long in long positions that continue to trade above the T-line and staying in short positions that continue to trade below the T-line.
A major benefit of candlestick analysis is that it can work on any trading entity/market. When the stock market gets into a lethargic mode, the candlestick investor can easily move to other trading entities such as currencies or commodity futures and still be trading profitably. There will always be a market or a sector that will be producing good profitable trading. Simple candlestick scans and visual analysis allows an investor to always have more trading opportunities that may have resources to trade. This makes for implementing a cultivation process that maximizes one's use of funds and time during the trading day.
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The Candlestick Forum Team
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