Steve’s Fav Patterns – Day Tr.
Draft Brexit Deal
As solid beat by NFLX and early morning news of a draft Brexit deal is making the bulls very happy this morning. The QQQ now looks ready to lead the way and challenge all-time highs in the index. Still ahead is our biggest day of earnings reports this week with a busy morning of Economic reports for the market to digest before the open. Though I’m rooting for the bulls, we have to remember that the bears are unlikely to give up easily. Traders should be careful not to chase morning gaps into resistance highs with the fear of missing out and remember pop and drop pattern can occur in this area.
During the night, Asian markets closed mostly lower as China issued threats of no deal if December tariffs are not removed. However, European markets are green across the board this morning after news of a draft Brexit raises hopes. US Futures also quickly responded higher this morning on the Brexit news pointing to a bullish open ahead of a big day of possible market-moving events.
On the Calendar
On the Thursday Earnings Calendar, we have our biggest day of reports this week, with over 75 companies reporting results. Notable reports include ETFC, BBT, DHR, DOV, EXPO, GPC, HON, ISRG, IVZ, KEY, MTB, MS, PM, SKX, SNA, STI, TSM, & UNP.
Action Plan
After what the UK is calling a last-ditch effort, a new Brexit deal has emerged lifting hopes as October 31 deadline approaches. Now the question to be answered will Parlement ratify the deal? European markets surged higher on news of the draft agreement as did the US Futures. Yesterday the market languished in a sideways chop after a disappointing Retail Sales number that showed even online sales had declined. On the bright side, builder stocks sharply rallied along with building material providers.
Last night solid earnings beat my NFLX may clear the path for the QQQ to reach out and test record highs in the index even though IBM disappointed investors. With the NASDAQ surging and a possible Brexit deal, the US Futures are suggesting a gap up open ahead of the biggest day of earnings reports this week and a busy Economic Calendar with several possible market-moving reports occurring before the opening bell. That means anything is possible this morning, but as of now the bulls are in control and seem determined to test all-time market highs.
Trade Wisley,
Doug
Brexit and Earnings
On Brexit, overnight the UK and EU reached a new deal. However, it was reached using a political move, removing the ability of the DUP party (Northern Ireland) to have consent. So, regardless of the headline (assuming the 27 EU leaders agree), there is extreme doubt over whether this deal has any chance of passing the UK Parliament Saturday. This leaves another extension request still the highest probability.
In other International news, China tensions may be on the rise again. China has said it will need tariff relief in order to do the additional Ag purchases President Trump claimed as progress last week. Congress passed a bill condemning the Chinese for the Hong Kong situation. Of course, China immediately condemned Congress’ condemnation. In the HK Parliament, rebels shouted down the PM’s annual speech. And overnight China arrested two Americans.
Wednesday was another blah day with a gap down open met by a trading range that filled the gap and came back a few times the rest of the day. In the end, we printed a Doji Harami in the SPY, DIA and QQQ. Mixed earnings, an unexpected Retail Sales miss and a Fed speaker (Evans) saying “we don’t need any more rate cuts this year” may have left markets confused and waiting for the next headline.
Overnight, Asian markets were mixed. European markets are all green, with the FTSE jumping a massive 11% at this point on Brexit hopes. As of 7:30 am, U.S. futures were all pointing to open higher (about 0.30% in the SPY and DIA and 0.65% in the QQQ).
Thursday’s economic calendar includes Sept. Building Permits (8:30 am), Philly Fed Mfg. Index (8:30 am) and a couple of Fed speakers in the afternoon. However, once again Earnings will likely have more impact with BBT, DOV, GPC, HON, KEY, MTB, MS, PPG, PM, SNA, STI, and UNP before the open. (MS already reported a major beat this morning.)
While the short-term uptrend remains in place and there was some good news overnight, this has not been a deliberately-trading market. Gaps and whiplash do not make for a good swing trading environment. So, be careful chasing and as always trade your plan.
Ed
For Your Consideration: Trade ideas for your swing trading watchlist. Long – GME, PPL, GLNG, BF.B, LW, EQR, DLTR, DG, DOCU, NKE, INFO, WU – Short – PPC, SBAC, FSLR, TSN, SHAK, BHGE, HAL. Trade smart, take profits along the way and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.
✅ SMS text alerts and reminders?👈
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🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 Dick Carp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Trading Preferred Stocks
Pop-Out-of-the Box Pattern
Solid Kickoff
With a solid kickoff to earnings season, JPM and UNH inspired the bulls to test price resistance levels in the indexes. Hopeful reports of a Brexit deal yesterday has now stalled according to reports as the deadline quickly approaches. We have a busy morning of earnings reports and a very important Retail Sales number at 8:30 AM Eastern for the market to digest before the open today. BAC got the ball rolling this morning with an earnings beat, but the futures seem a bit cautious this morning with all the political uncertainty.
Asian market closed trading mixed but mostly higher as hope news of a draft Brexit deal lifted spirits. European markets bounce between negative and positive this morning as they weigh the possible outcomes of Brexit. US Futures traded in the red most of the night, and this morning continues to suggest a modestly lower open ahead of early morning earnings and retail sales reports.
On the Calendar
We have more than 50 companies reporting earnings on the second day of earnings season. Notable reports include IBM, ABT, AA, ALLY, BAC, BK, CCI, CSX, KMI, NFLX, PYPL, PNC, STLD, & USB.
Action Plan
Good earnings reports in JPM, UNH, hopeful Brexit deal news, and tech analysts upgrades lead to a broad-based rally to challenge price resistance in the indexes. After climbing sharply throughout the morning session, upward progress stopped about as suddenly as is began spending the remainder of the day in a narrow range chop zone. This morning we’ve learned that the Brexit negotiations have stalled, BAC had better than expected earnings, and Moody’s declared a high risk of global recession in the next 12 to 18 months.
Ahead of a busy morning of earnings reports and a Retail Sales report, futures point to a modestly lower open at the time of writing this report. I think the big question remains can companies produce earnings to support these high prices during an extended trade war as economies slow around the world? The Big Banks are getting it done, so let’s hope we see that trend continue with big tech reports beginning this afternoon when NFLX and IBM reports. Technically speaking, the bulls are in control with all four major indexes above their 50-averages. However, they remain challenged by downtrend and price resistance levels that have proved tough to breach with so much political uncertainty weighing heavily on the market.
Trade Wisely,
Doug
Earnings Rev Up the Bulls
Tuesday was a strong day from the start on the back of good earnings reports from major banks. However, after a solid gap and run at the Open, the Bulls seemed to hit a wall about 11 am. The rest of the day was a grind sideways with the close at the low end of the 11 am 15min candle. This action left us with a Bullish Trader’s Best Friend signal (albeit less than optimal with an upper wick). It certainly appears that the Bulls want to at least retest the all-time highs again.
In International news, there was European fear on news of stalled Brexit negotiations. This comes less than 24hr after optimism for a new deal. However, nothing will be sure until Thursday night (EU Leader dinner where a new Brexit deal will be debated). Even then, it is unsure if any new deal could be passed by the UK Parliament in its emergency Saturday session.
Overnight, Asian markets were mixed, but mostly higher. European markets are also mixed. As of 7:30 am, U.S. futures were all pointing to mostly flat open, looking for a gap down of only 0.10%.
Today’s economic calendar includes Retail Sales (8:30 am) and Oil Inventories (10:30 am). However, once again earnings are likely to drive action with ABT, BAC, PNC and USB reporting before the open. (BAC already reported, posting higher the expected results.) CSX, CCI, IBM, KMI, NFLX and URO report after the Wed. Close.
Remember to be careful chasing gaps. The downtrend has been broken, but this market remains very volatile and looking for the next news items on which to over-react.
Ed
For Your Consideration: Trade ideas for your swing trading watchlist. Short – EL, SHAK, LDOS, SBUX, YUM – Long – JBL, AMAT, MPC, DLTR, KBH, INFO, DE, LEN, SYY, KLAC Trade smart, take profits along the way and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.
✅ SMS text alerts and reminders?👈
✅ Check out our newest YouTube videos👈
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 Dick Carp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
PBO and PUO Patterns
Earnings Season Begins
Although there seems to be swirling political uncertainty everywhere the market will not turn its primary focus to the beginning of the 4th quarter earnings season results. JPM has already let the way this morning with a solid beat gaping the stock higher and emboldening the bulls in the futures market. Let’s hope the other big banks can do as well this week as earnings ramp-up in the weeks ahead.
Overnight Asian markets closed mixed as traders remain cautious on the proposed Phase 1 deal that many are now calling a temporary cease-fire. European markets are mixed but mostly higher as EU negotiator gives hope of Brexit deal this week. US Futures are currently green across the board as big bank earnings roll in this morning. As of now, futures point to gap up of more than 100 Dow points, but that could easily improve or sharply diminish so expect volatility and stay focused on price action for clues forward.
On the Calendar
Today begins 4th Quarter earnings with 42 companies on the Earnings Calendar expected to report. Among the notable reports are C, JPM, KEY, BLK, SCHW, TACO, GS, JBHT, JNJ, PGR, PLD, SNBR, UAL, UNH, WFC & WIT.
Action Plan
How we deal with today depends very much on how the market responds to the early morning earnings reports. Futures seem to have considerable confidence that the results from the big banks this morning pointing to more than a 100 point gap up open. According to reports very early this morning, one of the Brexit negotiators says a deal is still possible this week, creating a rally in the sterling. We, of course, will have to watch closely for developments in the Phase 1 deal is being renamed by some as merely a temporary cease-fire in the trade war. Tariffs on China will increase to 30% in December if the deal fails. Attempting to punish Turkey for its Syrian invasion the President has raised steel tariffs on the country to 50% and cleared the administration to pursue all available economic sanctions.
Though all this political uncertainty has made for very challenging price action focus will likely turn to earnings results as 4th quarter reports ramp up this week. With the DIA, SPY, and QQQ holding above their 50-day averages with significant gaps below, we will need some sold results to prevent prices from sliding into the gap. As I write this, JPM has reported positive earnings results and is gaping higher. Let’s hope the other big banks can do the same settling frayed trader’s nerves and put some structure back into the chart technical’s without all daily reversals and whip.
Trade Wisely,
Doug
Earnings Season Kicks Off
Monday was a blah day in markets as traders seemed to wait on the next news. Regardless of the cause, all four major indices put in indecisive Doji candles just South of Friday’s close. This was done on VERY light volume. Perhaps traders are waiting on the earnings season that kicks off today.
Overnight, the US applied sanctions on Turkey in a belated attempt to avoid looking like we abandoned the Kurds. However, Turkey is such a small trading partner that I doubt this impacts markets. Today’s economic calendar only the Empire State Manufacturing Index and a handful of Fed speakers. Neither is likely to drive markets unless there is a major surprise. What very well may drive markets are earnings as we hear from C, GS, JPM, WFC, BLK, JNJ, UNH (among others) all before the Open and UAL and JBHT after the close.
Asian and European markets were both mixed overnight. However, as of 7:30 am, US futures are pointing toward a gap up of 0.40%.
Remember to be careful picking bottoms or chasing gaps. As Rick says, a profit trader’s job is to take their bites out of the middle of the sandwich. Leave the crusts for knife-catchers and Top-pickers who won’t be around long. So, be careful until the recent tendency toward “gaps and whiplash” has worked itself out.
Ed
For Your Consideration: Trade ideas for your swing trading watchlist. Short: SHAK, SBAC, SBUX, LDOS, SMPL, PG, YUM – Long: DOCU, HCP, SYY, MPC, AIV, LEN, BF.B, NWL Trade smart, take profits along the way and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.
✅ SMS text alerts and reminders?👈
✅ Check out our newest YouTube videos👈
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 Dick Carp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
