
Posted in
Big Picture
By: Tom Gentile
on May 15th, 2023
One Thing the Stock Market Doesn’t Like is Uncertainty.
Financial news networks and websites have shown commentary from Treasury Secretary Janet Yellen stating she believes things can get catastrophic for the economy if congress does not raise the debt ceiling.
She is also said to have pointed out that the US government could run out of money by June 1.
There are news articles on the web from a year back to 2021 where she has had to say the same thing about the catastrophic hit the US economy could take if congress doesn’t extend the deadline for paying back some or all of it debt or in the case this year, raise the debt ceiling.
In either case back then or right now it takes both sides of the aisle, Democrats and Republicans to agree.
In all of these instances no matter what year, it wasn’t or isn’t now, an easy thing to accomplish.
You got both sides saying the other is being unreasonable, the things each side is asking for is far apart from an agreement as one side says the other is asking for spending cuts as part of the deal.

The reason we are showing a 90-day versus times where we show 100- or 120- day charts is we are just trying to zoom in to the chart a bit to make the area on the chart we feel needs to be emphasized show up a bit clearer.
Too Many Doji Days Make the Doji Signal Obsolete
The annotation word square in Figure 1 references narrow range days. When these narrow range days open and close at basically the same price that is what is often time referred to as a Doji, or Doji day.
The Japanese Candlestick called a Doji is looked at often as a reversal signal for the current trend the security is in.
The way we see it is if the Doji is part of a two- or three-day pattern it becomes more relevant as it is part of that longer period pattern (and will often have a different name attached to the multiple day pattern like a Harami or Engulfing Pattern).
The key thing we want to point out here is when you get multiple Doji’s in succession or in this case 4 of the past 6 trading days, the Doji becomes less impactful, and we wouldn’t expect a reversal off the multiple Doji’s.
You can see we have support and resistance lines drawn in on the chart for Figure 1. A break above or below those are more significant and when that happens we will see what Japanese Candle Pattern, if any, has formed to give us more conviction for the price action break.
The Markets Seem to be Waiting on Congress
Technicals aside, it seems no one wants to put their money to work in either direction to any large amount or degree until congress can come to an agreement on what to do regarding the debt ceiling and if congress can pay their bills.
App: Toms Option Tools
Market Insight articles may show images of lists of stocks meeting a variety of options parameters like Unusual Call and or Put activity or Expensive IV found on my app Toms Option Tools.
Other times I will have other charts may work to amplify my educational points.
Those options data lists, however, can be found on my app Tom’s Option Tools. Use your device to search up and download this app and get free access to the Morning Reports section of the app.
Other parts of the app are available at a premium subscription rate, but the Morning Reports Lists are yours free.
Disclaimers
Stock and options trading has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.
This is neither an offer to buy/sell/ or recommend a particular stock or option.
Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.
Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.
This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.
You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.
Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.
Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.
A full disclaimer can be found here: http://www.tomgentile.com/legal_disclaimers.html.