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TEN Exclusive: Portfolio Update – 6/16/10

 If you are a candlestick chart enthusiast, today was an interesting day. Take a look at the following chart.

Stocks 6.16

The formation today is known as a Doji. This marks a period of indecision. Their was no clear winner between the bulls and bears. It can often times mark a reversal of a trend, but that will need to be confirmed with tomorrows trading. If you look to the the April 26 high, the day ended with this same pattern. This pattern was confirmed the following day with a steep decline. Over the next two weeks we experienced an 800 point drop in the markets which included the “flash crash” on May 6th.

 

On June 5th this same pattern appeared and lent itself to another 400 point drop over the three sessions. We have now had a nice run up since but have formed the patten again with today’s trading. Are these signals always a prognostication of upcoming sell-offs? Not always, but it is always something of which we need to be aware.

To continue reading click here: http://topequitynews.com/portfolio-update-61610/



Disclosure: No positions