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July 24th Market Direction

Summer doldrums or consolidation? It doesn't matter to the candlestick investor. Simple scanning techniques pinpoint which stocks/sectors are acting the most bullish or bearish in any market conditions. There will always be stocks that are acting well in any market conditions. It is relatively easy to identify which sectors are showing the best strength based upon ETF's and then simple scanning of the stocks in that sector allows for identifying which stocks are the strongest. This basically puts all the stars in alignment. If the market is still in a slow steady uptrend and you can identify which sector/sectors is acting the strongest and then identify which stocks in that sector are showing the strongest bullish signals, you basically put all the probabilities in your favor.

LABU is showing a nice frypan bottom pattern. This would make scanning for the best stocks in that sector the best place to have some positions. Because the visual characteristics of human nature are so clearly defined using candlestick charts, logic dictates that if the market is strongly bullish, you want to have your trading portfolio oriented toward mostly bullish charts. If the market is showing a bearish trend, obviously most of your portfolio positioning should be to the short side. A sideways moving markets should have both long and short positions in the portfolio. Candlestick investors gain additional advantages by identifying the strong candlestick patterns. This allows for not only being positioned in the correct direction of a price move but also participating in a price pattern expected moves which are usually dramatically stronger than mere uptrending stock prices. You do not have to be a sophisticated technical analyst to utilize the information built into candlestick signals. It is merely common sense put into a graphic depiction.


We will conduct a "Members Only" chat session tonight at 8:00 p.m EST.

Good Investing,

The Candlestick Forum Team

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