Market Direction - First of all, we apologize for the delay in getting this edition of the Candlestick Commentary out to you. We have been upgrading our computer systems, which put us behind schedule. So we offer our deepest apologies.

In hindsight, you should have seen in our morning market comments the recommendation to take profits on the shorts and accumulate the longs a few weeks ago. The strong Bullish Engulfing Pattern on October 10 had been anticipated due to the candlestick signals illustrating a slowdown in the selling.

Having this foresight allowed us to be fully long when the bullish rally took hold. The signals themselves allowed us to be in numerous positions that outperformed the rally dramatically (see "Designated Hype" area). While most of the investment community was still debating on whether this rally was a bottom or a temporary bounce, our candlestick-based positions were picking up 15%, 20% and 30% plus profits.

After a couple of very strong weeks in the market, we are starting to see signs of consolidation. We expect this period of consolidation to last a week or so. Although the mid-term trend should still be in an uptrend, nimble traders will still be able to make some money on the short side in very short-term trades. This will especially be true on certain stocks which have run up too far, too fast.

For example, one of our recent favorite plays on the long side is now a short due to its sharp short-term upward movement and the candlestick signal indicating it's time to take our profits on the long side and go the other way. In this volatile market, it is imperative to pay attention to our Daily Market Comments page and our Stock Recommendations page every day, as things can change very quickly.

You will hear and read many debates among the "experts" as to whether this bear market has ended or not. "Not enough pessimism", "threat of war", "stock P/E's still too high", "we are in a Depression", etc., etc. And the Bulls have just as many arguments on the positive side, like "this just can't be another negative year, it would be three in a row", "this is historically the best time to be in the market", "earnings are looking much better than a year ago", and so on. It's no wonder the average investor is at a loss about what to do with his or her money.

I know we have harped on this before, but these are exactly the reasons why we advise these investors to learn Mr. Bigalow's Candlestick Method. You see, the Candlestick Investor does not have to worry about where the market is heading, or whether we are in a bull or bear market. Using Mr. Bigalow's clearly explained techniques in his book "Profitable Candlestick Trading", anyone can determine within minutes the overall market condition and whether to put in longs, shorts, or a mixture for the day.

Candlestick Trading – AKA the Designated “Hype” Section

As demonstrated in past ezines, the visual depiction of where the money is flowing is captured in candlestick signals. We reported in our last ezine about the candlestick signals providing "monster" profits of 15%, 20%, 30% and up to 45% in short sales within a matter of days. We saw signs of the market bottoming. As the recent downtrend waned, money could be seen going into specific stocks. So we decided to play the long side, which produced "monster" profits there. Among our recent recommendations, RFMD had a 20.53% jump one day after the buy signal was observed. SAP was up over 75% in two weeks. ELX moved up 20% plus during that time. BRCD up 38%. If you review the previous and closed-out picks, you will notice an inordinate percentage of stocks that have huge gains, much greater than the average move or average number of stocks in a portfolio.

Mr. Value has produced some very excellent long-term stock picks. Some have had huge one-day gains. Witness a 45% two-day move in VIRL, still one of his favorite long-term picks. Most of his other picks have had multiple double-digit percentage one-day moves. Again, this is an example of how candlestick timing and fundamental research have common ground.

Mr. Value has spent an enormous amount of time lately in researching where the next huge moves will be made in the market. He has asked himself the question, "Where will the next Cisco Systems, the next Microsoft, the next Wal-Mart, the next Intel, the next Amgen, the next Dell, etc. turn up?"

After these many hours of research, he has narrowed the universe down to a handful of the most promising areas where the next legacy-creating stock investments will be made. Even within these areas, he has discovered certain factors which will make some stocks go up possibly 60 to 80 times, while other promising companies will simply languish.

Mr. Value will be doing many more hours of research in these areas: Biotechnology, Nanotechnology, Alternative Energy, Specialized Retail and Specialized Technology. While we don't have room in this ezine to go into much detail about these extremely promising areas, rest assured that our Members will be kept up to date on all of his findings.

During the course of this analysis, Mr. Value discovered a body of research in the Biotechnology area which, upon first glance, seemed absolutely too good to be true. But after digging deeper, he began to realize that the quality of the research was some of the best he had ever seen! We are talking about unknown companies on the verge of creating a vaccine for AIDS, and even a vaccine for cancer! Mr. Value is extremely excited about the investment potential of the Biotechnology area in general, and especially about these small companies on the verfe of huge potential profits. Once again, our Members will be participating in these possible millionaire-making companies. So please stay tuned!

Sector Stock Picks

The bombed out Telecoms are showing some good bottoming signals recently. Some have had extremely good moves already, and we would be waiting for a pullback to get in. For example, NXTL has quietly moved from $2.50 to over $10.00 this year. It is correcting after a short-term burst from the $7.50 area to an intra-day high of $10.37. Also, check out AWE's action lately. While we did not catch it, AWE had a beautiful Bullish Engulfing pattern with stochastics curling up in oversold areas a couple of weeks ago in the $3.50 area. It closed Friday at $6.79.

Commodities / Futures Corner

Keep watching this section of the Member's Area. One of the immediate benefits to our Members from our computer system upgrade will be a much more "beefed-up" section here. Mr. Bigalow will now be able to produce more picks and commentary on the use of Japanese Candlesticks and Commodities. Keep in mind, candlestick trading signals work better on commodities, due to the reduced number of outside influences that will move the price around. Remember, they were originally developed for rice traders.

Thank You TCNet!

We would like to personally thank TCNet, the Worden Brothers, and especially Michael Thompson, Marketing Director, for allowing The Candlestick Trading Forum to be "Distributor Of The Month" for the month of October.

We are proud to be associated with such a quality company as TC2000/TCNet. We truly feel they offer the best products in the world to enable individual investors to become successful traders in the markets. We have been using their products for over 10 years now and would not even consider any other product to find market-beating stocks on a daily basis.

New Products in the Works

Due to our computer system upgrade and other priorities, PCF E-book number three, the Personal Criteria Formulas for the Hanging Man, Inverted Hammer, Dark Cloud and Piercing Line candlestick signals, has been delayed, but should be available within the next week or two. This book will be free to Members, $15.95 for non-members.

New e-books in the planning stages - "High-Profit Candlestick Patterns", "How To Make 10% A Month Using Japanese Candlesticks", and more in the PCF series. We will start cranking these out as the weather gets less hospitable, which is starting to happen.

Once again due to our system upgrade, Mr. Bigalow will be "cranking out content" for the website. We will be adding many new articles on the use of Japanese Candlesticks in day trading, swing trading, long-term investing, commodites and futures, the ETF's, the indexes, etc.

Special Note on the Forum and Chat Room

OK, we admit it. We were premature in adding the Forum and Chat Room to the site. We should have waited until we had our computer system upgraded. With our old computer system, Mr. Bigalow simply did not have enough time during the day to attend to everything he needed to do, which included actively participating on the Forum and in the Chat Room.

With our system upgrade, this will all change. Mr. Bigalow will have a state-of-the-art computer, hooked up to DSL Internet access, with a three-screen monitor series. This will allow him to email the daily morning market comments out to all Members, watch the action and answer questions in the Candlestick Forum and TCNet forums and chat rooms, while simultaneously attending to emailed questions, watching the stock market on TCNet and making appropriate comments during the day, and cranking out more articles for the site.

With the computer system upgrade, we estimate the value of our services to our Members will at least double or even triple. We will get closer to our goal of being able to answer any questions "real time" on market developments during the day. Members will gain solid confidence in their trades when able to ask one of the world's experts on Candlestick Trading what he thinks about the trade. How many Internet trading services do you know of that offers real-time access to their resident expert?

The Value of The Candlestick Trading Forum Membership

We are constantly working to improve every aspect of our service. Here are just a few ideas we have to increase benefits to Members:

-New “Candlestick Counsel” section of the Member's Area, with “Lessons of the Week”, based on the most successful stock picks made that week or most instructive situation.
-Daily Email Alerts - Email follow-ups to stock picks right after the markets open - find out Mr. Bigalow's thoughts early in the day rather than after the market closes! Also special emails when Mr. Bigalow notices anything unusual going on during the day that our Members can profit from. These have already started, and will be improved even more in the future.
-Many more educational articles, including new articles written by Mr. Value. Yes, Mr. Value has agreed to share his vast knowledge of the investment markets and how he makes his stock picks in a series of articles and reports written for Members only. A few of the special reports will have titles like "Five Stocks Which Have Almost Totally Ignored The Bear Market", "The Human Genome Project - How It Will Make Hundreds Of New Millionaires in the Near Future", "Internet Attack! Companies That Will Protect The Internet And Make Their Investors Rich In The Process", "Ring Up Profits! How To Play The Coming Rebound In Telecom Stocks", "Rx For Profits - Which One Of These Small Medical Software Stocks Will Be The "Cure" for Your Portfolio Ills?" and many more. So stay tuned!
-…and much, much more!

We already feel that Members are getting more value with us than any other investment website on the Internet. We have compared our service with other sites in the past. (Click here to read the ezine where we did the comparison).

Just this week we received an email from a Member wanting to get more information on the value of being a Member of The Candlestick Trading Forum vs. other services he has tried in the past. After we emailed back with a response, he replied back to us with what might be an answer to his own original question:

"Education is certainly important but the daily picks are the most important. I am in the process of making that assessment. So far, it looks good. I did a quick review of the picks since 10/8 and find that as of today, there were 14 winners and 5 losers, with an annual percentage of +409.36%. I can learn to live with that".

But once these additional benefits are put into place and are operational, we truly feel we will offer the best investment website value on the Internet!

Our Highest Recommendation

We are still in the final stages of negotiating a major joint venture to provide a vacation/seminar package in one of the most desirable, luxurious vacation spots in the Western Hemisphere! You will find out how to have the vacation of a lifetime and learn how to pay for it with one or two good stock picks. So watch your email for notification of the next Candlestick Commentary!

Join Us Now

Our core group special of $97.00 per month can be made back many times over from just participating in a few of the Forum’s “Stock Picks of the Day”. However, joining The Candlestick Trading Forum should not be based on receiving high-probability profitable stock picks alone. The Candlestick Trading Forum was established to educate investors on how to maximize your investment potential by LEARNING the most researched and refined investment method in the world.

Is your portfolio up every week, month, or year? It should be. Are your current stock picks the best stock picks you could have made? They should have been. If they weren’t, why weren’t they? You can learn how to place your funds correctly in an easy-to-learn investment program. Mr. Bigalow not only shows you the best available stock picks in the market each day, he teaches you why those are the best stock picks. His simple investment strategy shows you how to constantly maintain a consistent profit in your trading portfolio. Take control of your investment future.

This is not “magic formula” investing. Japanese Candlestick analysis is common sense, well-refined investing. Join us! You will improve your investment results. You will make better stock picks.

Good Investing,

The Candlestick Forum Staff

www.candlestickforum.com