Candlestick Chart Analysis

Candlestick chart analysis is one of the oldest stock market timing systems in the world today. It is surprisingly accurate.

Market Direction Outlook For Nov 30 2012 – Rally Is Tiring But Still Up

Categories: Stock Market Outlook

Market Direction Outlook For Nov 30 2012 – Rally Is Tiring But Still Up

While not as wild a day as yesterday, the markets continue to show the concern investors have over the fiscal cliff issue. Today the market direction opened up and by 11:30 started to sell off as House Speaker Boehner who yesterday was update on talks, said there was no substantive progress.  A short while later the market direction recovered, when Senator Schumer said there had been progress and White House Spokesman Jay Carney said the Obama administrative was optimistic. Three things are weighing on market…

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Market Direction Outlook For Nov 20 2012 – More Upside Yet

, Categories: Stock Market Outlook

Market Direction Outlook For Nov 20 2012 – More Upside Yet

Market Direction today was all up. There is more than one reason for it but between being deeply oversold with markets down below the 200 day moving average and hope that Congress and the President get the message about the fiscal cliff, investors were back buying again. A number of the stocks I follow did very well today and others not as well as I had expected. Intel Stock is deeply oversold but it cannot get a serious move back to even the $21.00 valuation.…

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Market Direction For Third Week Of November – Bounce Still On

Categories: Stock Market Outlook

Market Direction For Third Week Of November – Bounce Still On

Market Direction this week was all down hill. One of the worst weeks for falling stocks since May but just as in any market there is always some place to make a profit. This week it was with the Spy Puts Trade, IWM ETF Trading For Pennies Strategy, rolling covered calls down and into the money and moving some of my put ladders further down and out in time. All of these made additional profits and my portfolio is nearing 30% for the year. This…

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Market Direction Outlook For 4th Week of Oct 2012 – Caution

Categories: Stock Market Outlook

Market Direction Outlook For 4th Week of Oct 2012 – Caution

Market Direction is always the most important aspect of investing. Even for those of us who enjoy Put Selling market direction is important. For investors who do not want to own stocks, caution at this stage is warranted. Even for investors who want to own the underlying shares, Friday’s market direction plunge may mean a wait and see approach could be the best choice. If there is a bounce back in market direction on Monday it could be short-lived and then a move back to…

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Market Direction For Tuesday Oct 9 2012 Shows Selling Ahead

Categories: Stock Market Outlook

Market Direction For Tuesday Oct 9 2012 Shows Selling Ahead

Monday was fairly quiet as the bond market was closed for Columbus day and market direction basically spent the day with shallow losses. The IMF downgrade of Asia hit the market before the open and the stock markets wandered in the red for Monday. The NASDAQ is being pulled down by the decline in Apple Stock. This is why it is important for Indexes to be weighted better. With Apple Stock such a large component of the NASDAQ it has moved it both up and…

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Market Direction To Start The Second Week of October 2012

Categories: Stock Market Outlook

Market Direction To Start The Second Week of October 2012

Friday was a bit disappointing for market direction higher. The employment numbers pushed the market at the open and the S&P and Dow set new highs once again. But within an hour optimism disappeared from the market and a pullback commenced. I have included the 5 minute market direction chart for Oct 5 below. I have also included momentum which is often a great technical indicator to use for daily study of the indexes. In the chart below, the momentum technical indicator is set for…

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Market Direction Outlook For First Week Of October 2012

Categories: Stock Market Outlook

Market Direction Outlook For First Week Of October 2012

Market direction for September surprised analysts and many investors alike. October could bring some surprises in market direction as well, but let’s hope not to the downside. By and large October has a terrible record. There were market crashes in October in the years 1929, 1987, 1997 when the market fell an astounding 554 points and the list goes on. 1978, 1979, 1989 and of course the collapse in October 2008. Yet if Septembers have been bad, Octobers were invariably good, however during Presidential election…

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Market Direction Heading Into Second Week Of September 2012

Categories: Stock Market Outlook

Market Direction Heading Into Second Week Of September 2012

Market Direction heading into the second week of September may continue to see volatility although you would not guess it looking at the VIX Index index. On Friday the VIX Index index fell back to 14.38 near the lows of the year. As a measuring stick the VIX Index at this level would seem to indicate very little concern on the part of investors. Does this mean that most investors feel that more liquidity on the part of the ECB and the Federal Reserve is…

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Market Direction Outlook For Last Week of August

Categories: Stock Market Outlook

Market Direction Outlook For Last Week of August

My Market Direction Outlook for the final week of August has some warning signs. Not a lot mind you, but certainly there are enough warning signs outside of my market timing technical indicators that should be watched. This week Bernanke speaks on the last day of the month. That day is a Friday so watch for a lot of volatility this week and on Friday especially. If there is no hint of QE3 there could be some selling on Friday as traders will not want…

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Market Direction – Breakout Or A Fakeout

Categories: Stock Market Outlook

Market Direction – Breakout Or A Fakeout

Market Direction continues to confound analysts and proves why put selling is a very practical method of investing. With so many stocks setting new highs and analysts worried about the overbought market conditions, Put Selling against large cap stocks continues to bring in profits while affording a low-level of protection against possible whipsaws in the market. With the VIX Index at $13.50 there are not a lot of whipsaws to be found particularly on large cap stocks which makes Put Selling attractive going forward. This…

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Market Direction Shows Stress Of Overbought Condition

Categories: Stock Market Outlook

Market Direction Shows Stress Of Overbought Condition

Market Direction today shows the headwinds facing the stock market at present. The S&P 500 is starting to flatten out here as it has reached stiff resistance when the market direction pushes it toward 1407. While there is no sign of much selling today, the weakness later in the afternoon may have some investors concerned. Today for the first time there was no dip buying until just at the close. This marks the first time in 7 sessions that the dip buying has not stepped…

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Market Direction Rises But On Low Volume and Poor Breadth

Categories: Stock Market Outlook

Market Direction Rises But On Low Volume and Poor Breadth

Market Direction continues to rise despite the lack of volume and poor breadth in the stock market. One of the interesting aspects of this latest market rally is that the candlestick chart analysis of the NASDAQ, S&P 500 and Russell 2000 (IWM) has failed to give any buy signal despite the three days of rally. Today the Dow Jones Composite finally got a buy signal at the close from the candlestick chart analysis confirming market direction up trend. It took three days for the candlestick…

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Market Direction Turns Back Up But Can It Rally Higher

Categories: Stock Market Outlook

Market Direction Turns Back Up But Can It Rally Higher

Market Direction yesterday still remained bearish despite the action. The Rate of Change market timing indicator moved into positive territory yesterday and the fast and slow stochastic indicators both predicted a bounce could be at hand but I saw nothing yesterday to pinpoint a rally of 1.65% today. Overall investors were buoyed by the news out of Europe that ECB President Mario Draghi indicated he would do whatever it takes to defend the Euro and the Union. This is like the boy who cried wolf…

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Market Direction Remains Intact But Overbought Condition Could See Weakness

, , Categories: Stock Market Outlook

Market Direction Remains Intact But Overbought Condition Could See Weakness

All this week I have written about how market direction has exhibited higher highs and higher lows for the past several weeks, which is a clear bullish sign. Today the S&P continued that market direction move higher and reached an intraday high of 1380 before pulling back to 1376.51. 1380 marks the first significant higher high since this latest rally began and bypasses the previous high of 1374.81 made July 3. The market is now very overbought but market direction could continue to climb higher…

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Market Direction Is Solidly Up As Confirmed By Market Timing Indicators

, Categories: Stock Market Outlook

Market Direction Is Solidly Up As Confirmed By Market Timing Indicators

Two days into the week and the market direction remains unchanged with the overall consensus among market timing indicators for the market to move higher over the next couple of sessions. The Analysis of the Stock Market is pretty simple today. The testimony of Ben Bernanke  upset investors as he did not mention anything about powering up the printing presses. Investors pushed the DOW down 80 points before it came back and closed up for the day. On one hand investors are complaining about the…

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