October 1st Market Direction
Although the Dow is up 200 points today, the accumulative analysis of the major indexes continue to reveal there is no exuberance yet coming into this uptrend. The NASDAQ opened higher but closed lower. The S&P 500 closed higher but with an indecisive Doji day. The combined analysis of the indexes indicate the uptrend remains in progress but with specific stocks/sectors acting bullish while others are bearish. Identifying the strongest bullish charts or the strongest bearish charts is a very simple process when using candlestick scanning techniques.
The oil stocks continue to produce good profits on the bullish side. That can be easily assessed by a merely analyzing what crude oil prices are doing. Candlestick analysis provides the benefit of putting all the stars in alignment. With an uptrending market, candlestick scans can show which sectors are acting the strongest. Then each sector can be analyzed to see which stocks in that sector are acting the best, creating strong bullish candlestick signals or patterns. Analyzing each sector allows the candlestick investor to allocate trading funds to the appropriate positions.LABU, the biotech ETF will illustrate whether any strength or weakness is coming into that sector. NUGT, the gold ETF will illustrate whether there is strength or weakness in that sector. Candlestick scanning techniques are very common sense visual analysis techniques that illustrate where the high probability trades will be occurring.
We will conduct a "Members Only" chat session tonight at 8:00 pm EST.
The Candlestick Forum Team
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