Today’s Featured Trade Idea is SDOW.

To read more about this trade, see Rick’s blog post here.  However, members can listen to his detailed analysis in the trading room at 9:10am Eastern.

For now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

SDOW has been in a serious downtrend for some time as the Bulls have been in charge.  However, on overnight TRade fears (the President’s threat to add another $200billion to the tariffs imposed on China) the Dow futures are diving lower overnight.  This is a very unsettled market picture, as it would be easy for calmer heads to “walk back” the threats, but equally possible the Chinese could retaliate in their own “message through the media.”  So, I will be looking to force the SDOW Bulls (market Bears) to demonstrate follow-through above the 50sma before looking to Enter.  Even then, I’ll only look for a short-term move and hope to catch a pop up to the 200sma. Below is my markup of the chart and the trade plan as laid out by Trader Vision 20/20.  As a bonus, if you click the green button below, you’ll be able to watch a video of the chart markup and trade planning process.

No Trade Executed  –  Order Cancelled (Don’t let it ride)

The SDOW Trade Setup – As of 6-18-18

The SDOW Trade Plan

Note how Trader Vision 20/20 does so much of the work for you.  As we see above, Trader Vision shows you that the stock only needs to move 8.8% to make the Goal for the trade, while the anticipated first Target price would generate a 10.44% gain.  We also see that the Risk is low and the potential Reward decent.  Knowing the Risk, Reward and how far a stock must move to reach our goal…before a trade…really takes the pressure off.  No guesswork.  No surprises.  No emotional roller coaster.

To see a short video of this trade’s chart markup and trade planning, click the button below.

If you’re interested in putting the power to Trader Vision 20/20 to work for you, click below.

Testimonial

Trader Vision immediately simplified the process…immediately it provided that information and guidance to me. I knew what I would risk for how much reward, I began taking trades off at the 1st target, 2nd target, I was no longer holding all my trades for the homerun. I also began implementing the stop losses if and when they were reached, not just hoping the stock would recover.  It then became easier to see what patterns were working for me and which were not.  It provided a much more relaxed and stress-free environment. –Joan G

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Investing and Trading involve significant financial risk and are not suitable for everyone. Ed Carter is not a licensed financial adviser nor does he offer trade recommendations or investment advice to anyone. No communication from Hit and Run Candlesticks Inc. is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

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