Whistle-blower

by
Whistle-blower

Yesterday’s whistle-blower hearing brought the buyers to a screeching halt producing another pop and drop pattern.  After the hearing, the bulls made a lackluster attempt to rally that was frustratingly choppy as the partisan rhetoric rose to a deafening roar of uncertainty.  Traders will have to weigh the risk of the weekend carefully considering that anything is possible by Monday’s open.

During the night Asia markets closed mixed but mostly lower with trade talks set to resume on Oct. 10th.  The markets in Europe are green across the board as trade hopes outweigh the US political turmoil.  US Futures point to a modestly bullish open ahead of the Durable Good & Personal Income economic reports.  Expect more indecisiveness as we head into the weekend.

On the Calendar

We have just 14 companies expected to report earnings on the Friday calendar.  Among those reporting, I’m not seeing any particularly notable reports today.

Action Plan

The frustratingly choppy price action continued yesterday after once again gaping up then finding more sellers than buyers during the whistleblower hearing in Congress.  The nonstop barrage of partisan spin is hard to ignore, but it’s imperative that we stay focused on price action to navigate this very difficult market. 

After the close yesterday, we learned that US/China trade negotiations would resume on Oct. 10th, only 5-day before the tariffs are scheduled to increase.  Let’s hope the talk fast and that the President is correct when he said a deal is closer than most think.  We have a light day on the earnings calendar but keep an eye on the Durable Good Orders as well as Personal Income reports at 8:30 AM Eastern.  With so much uncertainty as we head into the weekend plan your risk carefully.  Literally, anything is possible come Monday’s open!

Trade Wisley,

Doug

Indecision, Follow-Through Needed

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The market (SPY), Wednesday’s, lower low Harami (indecision), then Tuesday’s little Hammer with a higher low indicates buyers looking, but no real commitment. On a 2-day chart, you can see the Spinning Top Doji (indecision) shows the bulls require a little help to keep price action above the support line but without a higher high the lower high.

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If the SPY can get above $298.75, it’s possible; we see buyers step in and challenge the recent highs. But let’s not get to carried away just yet, so far this week the sellers have been able to push the buyers back, and there is still not a confirmed bottom from the recent 5 bars that the sellers have control.

https://hitandruncandlesticks.com/hit-and-run-candlesticks/

The bottom line, This is Friday, and the futures are up premarket this morning, below $298.75 sellers have control of the SPY. Our dark chart has not given the bullish bottoming signal that we are looking for, above $298.75 would be a great start, remember that number must hold today.

Rick

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Ya baby it’s Friday! For Hit and Run Candlesticks, Friday’s are more about profit-taking and getting ready for the weekend. There are no watch-list updates on Fridays. We wish you a fantastic weekend.

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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.

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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

China deal closer?

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The mere mention by the President that a deal with China may be closer than everyone thinks and the market rallied shaking of the impeachment drama.  More importantly, the SPY bounced off its 50-day average, and the QQQ recovered this key technical support with ease.  As bullish as yesterday’s move appears, we must remember that one day does not make a trend and that we still have significant price resistance above for the bulls to overcome.

Overnight Asian markets closed mixed but mostly higher on renewed trade hopes, and European see green across the board in response the Presidents comments on a trade deal.  US Futures are pushing for a critical follow-through of yesterday’s rally pointing to a modestly bullish as I write this post.  With several notable earnings reports ahead as well as a busy morning on the economic calendar anything is possible.  Plan carefully and stay focused on the price action for clues as we approach price resistance levels.

On the Calendar

On the Thursday Earnings Calendar we have 21 companies reporting results.  Notable reports include CAN, CCL, CAG, FDS, MU, and MTN.

Action Plan

The market shook off the impeachment inquiry yesterday after the President mentioned a deal with China might come sooner than everyone expects.  Technically speaking yesterday’s rally was a substantial win for the bulls with the SPY bouncing off its 50-day average and the QQQ easily recovery this key psychological level.  Now it’s important that we see some followthrough bullishness or yesterday’s move looks more like a dead cat bounce within an existing downtrend. 

A one day rally does not make a trend, but I must admit it does raise hopefulness of better days ahead assuming it can hold.  Another thing the market could be betting on is that the impeachment process will bring Congress to a halt.  A gridlocked government is often seen as bullish by the market.  The impeachment of President Clinton kept the Congress busy for about 18 months, and during that time the market experienced a substantial rally.  Will history repeat?  Only time will tell so turn off the distracting political drama news and stay focused on the price action of the charts.

Trade Wisely,

Doug

Nice Day in Down Trend

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US Markets held support and bounced nicely on Wednesday, but did give up a little of their gains late. However, we must recognize that no reversal candle signals were printed by the indices and at best we had Harami (indecision) in the SPY and DIA.

This leaves us with nothing more than a nice white candle in a downtrend, but at support at this point. Not a very clear picture by any measure.

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Today’s economic news includes Q2 GDP at 8:30 am and Aug. Pending Home Sales at 10 am. We will also hear from the lone FOMC dissenter who wanted more of a rate cut (Bullard) as well as a few other Fed members speaking.

As of 7:30 am, US futures are pointing to small gains, falling in line with Asian and European markets (which were all green overnight).  The big boys (Dow and S&P) are pointing to a 0.25% and the NASDAQ a 0.15% gap higher. This will put us close to retesting the downtrend.

https://hitandruncandlesticks.com/hit-and-run-candlesticks/

The bottom line is we might expect a higher-high off follow-through from Wed. action and global gains. However, that downtrend has not been broken yet. Caution and avoiding the whip are the smart plays.

Ed

Favorite Charting Software

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. Long: PRGO, EXC, GT, NUS, DOW, OLN, ETR, CRCM, GPRE, HOME, CM. Short: IPG, YUM, QSR, BLL. Trade smart, and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.

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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

Pop and Drop

by
Pop and Drop

As it turns out my caution of getting caught up and chasing yesterday gap open proved to be correct, producing a pop and drop pattern at price resistance levels.   The President’s tough talk on China trade practices at the UN only emboldened the bears pushing indexes lower with the QQQ suffering the worst of the technical damage unable to hold it’s 50-day average.  Adding insult to injury Congress began yet another political drama that’s likely to affect the market well into the future opening an impeachment inquiry of the President.

During the night trade tensions and political uncertainty had Asian markets seeing red across the board at the close of trading.  Currently, European markets are of a like mind and decidedly bearish across the board this morning.  Not surprisingly US Futures are indicating a lower open for the market but let’s keep an eye on the SPY & DIA key moving average supports for a possible area of defense by the bulls.  If they fail to hold as did the QQQ the technical damage could greatly inspire the bears to continue lower.  Stay focused and flexible as this news-driven market continues to challenge traders.

On the Calendar

On the Hump Day Earnings Calendar we just 15 companies reporting quarterly results.  Notable reports include KBH and FUL. 

Action Plan

Tough talk at the United Nations from President Trump shook the markets yesterday inspired the bulls to move the indexes quickly toward a test of their 50-day morning averages.  The pop and drop price action left behind some pretty nasty looking bearish engulfing candles with the QQQ experiencing the worst of the technical damage.  Adding insult to injury later in the day it was announced that Congress opened an inquiry of impeachment against the President alleging abuse of power.

As the political drama continues to grow it only adds another layer of what the market hates the most, uncertainty!  Unfortunately, that big festering and stinking pile of uncertainty is likely to continue making this market very challenging for traders navigate.  The best we can do is stay focused on price, support, resistance, trend, and be willing to take profits quickly when you have them to avoid the potential whip of the news story. 

Trade Wisley,

Doug

Can Support Hold?

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The UK Parliament is back in session, with their attention not focused on Brexit, but at least at the moment on beating up Government Ministers over why they advised what they advised that led PM Johnson to think he could get away with suspending Parliament for 5 weeks.  The other major news overnight was the US Congress beginning a formal Impeachment Inquiry against President Trump (although that was expected). 

Overnight Asian and European markets followed the lead from yesterday’s US markets with bright red numbers across all major indices.

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Today’s economic news is limited, with Aug. New Home Sales at 10am and US Oil Inventories at 10:30am.  I’m not so sure either of those will make any splash against the backdrop of political news and the bears taking control of charts the last several days.

As of 7am, US futures are pointing to a small continuation of the Bearish move.  The big boys (Dow and S&P) are pointing to a 0.10% and the NASDAQ a 0.25% gap lower.

https://hitandruncandlesticks.com/hit-and-run-candlesticks/

The charts tell us the short-term trend is clearly bearish, with the all 3 major indices showing failing spectacularly after a strong bullish gap up at the open.  They ended up printing bearish continuation signals across the board Tuesday. In the process, the QQQ also gave up the 50sma as potential support.  However, if there is a ray of hope, it is that the SPY and IWM both tested and held their 50sma yesterday…and if you might say we tested the area of the 50sma and held it in the DIA. Can that support hold is the key question?

The bottom line is that it is very hard to swing trade these markets until we get less whiplash and range chop and more of that good old consistent trend action.

Ed

Favorite Charting Software

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. Long: AIZ, ARMK, CCJ, DE, ES, EXC, JACK, UNM. Short: EGHT, QSR, SBUX, CDNS, YUM, CTAS, TWLO, VRNT, MA, ACN. Trade smart, 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

Attack of All-Time Highs?

by
Attack of All-Time Highs

The bulls did a good job defending yesterday’s modest gap down open setting the stage for another possible attack of all-time highs.  With several notable earnings reports today and a reading on Consumer Confidence the bulls may find the inspiration needed breakthrough the 3000 SPY resistance that has proven so difficult to hold. 

Asian markets closed modestly green across the board as trade uncertainty, and global growth concerns grow.  A day after disappointing German economic numbers European markets are flat to slightly bullish this morning.  US Futures appear confidently bullish this morning suggesting a nearly 100 point gap up to challenge resistance levels once again.  Consider your risk carefully and avoid chasing gap up entries at or near price resistance levels.

On the Calendar

On the Tuesday Earnings Calendar we have 28 companies fessing up to quarterly results.  Notable earnings include NKE, NIO, AZO, BB, KMX, CTAS, INFO, JBL and MANU.

Action Plan

Yesterday’s light and chopping price action saw the bulls working to defend the lows of the morning gap down.  Index futures held positive throughout the night, suggesting a bullish open and perhaps another attempt by the bulls to attack the all-time market highs.  The DIA will first have to deal with the price resistance around 271, and the SPY will have to breach the resistance at 300.  The QQQ’s have a considerable amount of work to do before breaking out, but it is bullish that thus far the bulls have successfully defended its 50-day average as support.

A little concerning is that we had safe-haven plays such as Gold, Silver, defensive sector stocks and even utilities were going up yesterday with the overall market.   Oil stocks continue to recover after the Saudi oil field attack and yesterday saw a strong push in retail with stocks like DLTR, TGT, and WMT rising.  Currently, futures point to a bullish open ahead of the Case-Shiller, and Consumer Confidence reports as well as several notable earnings.  With trade talks scheduled to resume in a couple of weeks and new tariffs increases scheduled for the 15th of October, markets will continue to be news sensitive in the days and weeks ahead.

Trade Wisely,

Doug

More Uncertainty

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Overnight, the big news was that the UK Supreme Court has ruled that the suspension of the UK Parliament was unlawful and void (11-0 unanimous decision).  In fact, it ruled the suspension did not happen and Parliament is still in session. 

The Speaker of Parliament has said the House of Commons will sit again Wed. morning. It’s unclear exactly what that means in practical terms (who controls the agenda once they meet, what members of the PM’s team get the axe and how this impacts Brexit).  There was even talk about the PM himself needing to step down.  Needless to say, this does give the “No – No Deal Brexit” and “New Referendum” camps a stronger hand…and if you believe PM Johnson, hurts the UK negotiation position with the EU. 

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On the US news front, apparently President Trump was completely unaware (and shocked to hear live in front of the press) that it was the US Negotiators who canceled meetings and asked the Chinese to leave without touring the US farm belt.  (Speculation is that Treasury Sec. Mnuchin did not want the US public to wrongly assume from such a tour that a deal was near.)  Also, two Fed speakers implied that even the most Dovish FOMC member foresees only 1 more cut this year and the majority say none.

For markets, this is all just more of what traders love…uncertainty.  (That’s sarcasm.)

https://hitandruncandlesticks.com/hit-and-run-candlesticks/

Markets ended Monday flat after a gap down as the short-term trend continues to be Bearish.  However, there is clear potential support just below.  Futures are pointing higher at the moment about half a percent.  Overall, I read this as more chop until we can break out to new highs.

Ed

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. Long: CCJ, VZ, PG, FRAC, GT, CPRI, HOME, TUP, LEN, APA, DLTR, WFC, OLN. Short: QSR, TWLO, HEI, HCA, VRNT, BLL, ROL, FIS. Trade smart, and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.

Favorite Charting Software

✅ 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

Technical Contradictions

by
Technical Contradictions

As we approach the end of the 3rd quarter, the index charts are displaying technical contradictions that reflect the uncertainty faced by the market.  While holding above their respective 50-day averages the DIA and QQQ have left behind low high failure patterns, and the SPY is displaying a possible double top failure pattern.  The technical contradiction makes for some very difficult trading decisions in this very news-driven and emotional market.

US Futures open trading Sunday evening quite bullish but faded as Asian markets struggled with US/China trade developments closing mostly lower on the day.  Weak German economic data has the European indexes seeing red across the board this morning.  US Futures point to a flat to open, and with little on both the economic or earnings calendars to provide inspiration, expect political news sensitivity and possible choppy price action.

On the Calendar

To begin the week on the Economic Calendar we have just 16 companies reporting results but among those stepping up, I can no particularly notable reports.

Action Plan

Although Iran continues to deny the Saudi oil field attack the President has decided to send troops into the Persian Gulf to bolster the Saudi Arabian forces as tension continue to grow.   Friday the Chinese negotiations team abruptly cut their visit short, and then during the night the US Justice Department warned companies that Chinese corporate theft is rising.  Attorney General Adam Hickey reported that more cases are being open that implicate China for trade secret theft and that 80% of the economic espionage cases since 2012 involve China.

US Futures opened last night very bullish but have sold-off and currently indicate a flat to slightly bearish open.  With little more than Fed speakers on today’s economic calendar and no market-moving earnings report, the market will have to find inspiration elsewhere.  Technically the DIA and QQQ are now showing lower high concerns and the SPY chart displaying an uncomfortable double top failure forming.  On the bullish side, however, all the indexes remain above their 50-day moving averages and continue to cling to a current uptrend.  As of now the charts seem to reflect the political uncertainties and difficult trading decisions.

Trade wisely,

Doug