Blog - Page 247 of 651 - Hit & Run Candlesticks

A sharp end of day rally greatly improved yesterday’s developing candle patterns that had spent most of the day choppy and leaning bearish. However, at the close, the DIA and IWM remain in a bullish consolidation with the SPY leading the pack with a bullish piercing pattern and the QQQ not far behind. It has been an odd earnings season, to say the least, but, thus far the results have provided just enough inspiration to keep in the bears at bay. With a huge day of earnings and economic reports anything is possible, but as of now the bulls have a slight momentum advantage.

Asian markets closed mixed but mostly higher, even as economic growth in South Korea continues to slow. European markets see nothing but green this morning responding to earnings as Brexit uncertainty continues to swirl. US Futures currently indicate a modestly bullish open this morning ahead of a slew of earnings results and several key economic reports.

On the Calendar

Today on the Earnings Calendar, we have the biggest day of reports since the 4^th quarter reports began. Notable reports include MMM, AB, AMZN, AAL, AEP, AZN, COF, CERN, CINF, CTXS, CMCSA, CUBE, DECK, DOW, FE, FSLR, GILD, GNC, HSY, HBAN, ILMN, INTC, JNPR, KIM, LH, NOK, NOC, ONDK, RTN, RCL, LUV, SWK, TMUS, TROW, TWTR, VLO, VRSN, V, and AUY.

Action Plan

Today this very odd earnings season hits a full stride with more than 250 companies reporting. We can expect significant volatility throughout the day and with big reports after the bell the possibility of a substantial gap Friday morning. Although most of yesterday’s price action was not showing much bullishness an end of day rally as dark pool volume consolidated to the market, it created a late-day rally improving the technical look of the index charts.

The SPY left behind a bullish piercing pattern finishing the day as the strongest chart with the QQQ not far behind. The DIA managed to rally back enough in the last few minutes of the day to remain in a bullish consolidation pattern holding above important supports. If the bulls happen to find inspiration in today’s earnings and economic reports, an attack on all-time highs is possible. Should earnings disappoint, the DIA seems most likely to display the stress and could test it’s 50-day moving average. However, earnings reports have provided just enough positive results that the bulls remain in control so the current momentum although light favors the bulls.

Trade Wisely,

Doug

Leveraging Fibonacci

October 23, 2019 by Ed Carter

Concerning Technical Patterns

October 23, 2019 by Doug Campbell

Yesterday push toward upward ended the day leaving behind some concerning technical patterns. The Dow is beginning to show a possible lower high failure with disappointing reports from MCD, TRV, and CAT early this morning. The SPY and QQQ left behind bearish engulfing candle patterns by the end of the day as it reacted to the uncertainty of Brexit and a big wave of reports today. Although the price resistance above is proving to be quite challenging to breach, at least the indexes are still holding above their 50-day averages.

During the night, Asian markets closed mixed but mostly lower as Brexit seeks another extension from the EU. Currently, European markets are mixed but slightly lower overall with the more Brexit political roadblocks to clear. US Futures are also currently mixed with the Dow and SP-500 suggesting a lower open but the NASDAQ trying hard to hold on to modest gains even as Mortgage Applications drop by 12%.

On the Calendar

On the Hump Day Earnings Calendar we have a big day with more than 200 companies reporting results. Notable reports include ABB, AEM, AMP, SNTM, ARI, AVY, BX, BA, BCOV, CP, CAT, CLF, EBAY, EW, LLY, EFX, FFIV, F, LLY, FXC, GD, GWW, HLT, IVZ, LRCX, MSFT, MHP, NDAQ, NSC, ORLY, OC, PYPL, RCI, ROL, SEIC, NOW, SAVE, TSLA, TMO, WM, WGO, and XLNX.

Action Plan

After failing to pass an expedited schedule to complete the Brexit agreement and extension of the October 31^st, deadline extending the uncertainty fo the outcome. It’s anyone’s guess what happens next and how their decisions could affect the overall market. Earnings have taken over the headlines, and progress on the Phase One trade agreement seems to have faded entirely from the news cycle and the mind of the market. Disappointing earnings our of MCD and TRV yesterday and the early morning miss from CAT is becoming concerning considering the lower high the index has begun to display. We are still waiting for the embattled BA to report this morning.

Technically speaking, we have some worrisome patterns developing on the index charts. The Dow is showing a possible lower high, the SPY, and the QQQ printed bearish engulfing patterns very near price resistance levels, and the IWM continues to struggle with downtrend resistance. On the positive side, all the indexes remain above their respective 50-day averages, and perhaps this is merely a rest. I think traders must remain flexible and be careful not to overcommit directionally.

Trade Wisely,

Doug

Earnings Driving the Bus

October 23, 2019 by Rick Saddler

The market seemed hesitant Wednesday with a gap down in the SPY and QQQ met by a rally back to flat and ending a bit bullish on the day. Meanwhile, the DIA and IWM formed DOJI just on the green side of flat. This leaves us with indecision on the day. The hope is that the DIA is forming a bottom of a pullback in a bull trend. However, the IWM looks very toppy with 3 Doji at resistance and neither the SPY or QQQ look very strong.

As expected, earnings continue to be the leading story, with misses by CAT, BA, LLY, and TXN leading the narrative Wednesday. However, as a whole, earnings continue to be good. The earnings flood will continue Thursday with perhaps the heaviest day of the season among S&P members.

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On the Trade War front, China said they will buy $20bil in US grain within a year AFTER the Phase 1 trade deal is signed. This would raise the Chinese US grain purchases in 2020 back near the level they were in 2017 before the President’s Trade War. However, that number has been declining since they bought $25bil in 2014.

Related to Brexit, it appears the EU has agreed they will give the UK an extension. Most of the 27 other countries agree it should be an extension until the end of January. However, France is holding out for an extension of just a few days. Sources tell the European press that the EU will now stall as long as they can to avoid an internal fight and to see what PM Johnson can get passed on his side of the English Channel. So, no firm decisions in sight yet.

Thursday’s major economic news includes September Durable Goods (8:30 am) and New Home Sales (10 am). Also, in Germany the economic downturn continues with their Exports down, slower manufacturing output and Industrial Employment dropping the most in almost 10 years. (Germany is the biggest economy in Europe by far.) However, as I said, US earnings are likely to drive markets again today. Among that flood were a massive beat by TSLA after the close yesterday and a pre-market miss by TWTR.

Overnight, Asian markets were generally positive, but European markets are strongly green at this point. As of 7:30 am, U.S. futures were all pointing to gaps higher varying across the major indices. The QQQ is looking at a 0.7% gap, the DIA 0.3% and the SPY only 0.2%.

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Remember to be careful chasing. If earnings remain strong, this should be a bullish market. However, in recent months trading has been very news-driven. So, be sure to use caution, take profits along the way and trade your plans.

For Your Consideration: These trade ideas for your swing-trading consideration. Long – JBHT, LEN, BF.B, HOME, PNC, IFF, WHR, PKG, GLNG. Short – DRI, HEI, WEC, ZBH, UHS, GD. Trade smart, take profits along the way and trade your trade. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

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Volume at Price Indicator

October 22, 2019 by Ed Carter

Trading Earnings E-Learning

October 22, 2019 by Doug Campbell

In this E-learning session we covered the Trading Earnings and answering questions.

Trading Earnings E-Learning Q & A Replay

Pushed or Pulled?

October 22, 2019 by Doug Campbell

Good morning everyone everyone. Due to a short term internet outage I didn’t have the time to write the full blog today. However we must stay focused on price action and expect the market will either be pushed or pulled by the big round of earnings today.

Notable earnings include CMG, ARCH, BIIB, BYD, CNC, DFS, FITB, HAS, IRBT, JBLU, KMB, LMT, MCD, NAVI, NEE, NVS, NUE, PG, PHM, RRC, RF, SHW, SIX, SKX, TXN, TRU, TRV, UTX, UPS & WHR.

We also have the potential market-moving Existing Home Sales numbers at 10:00 AM Eastern today. Consensus is expecting a slight decline.

You can watch the Morning Market Prep with the link below and I wish you all a great day everyone!

Attack on All-Time Highs?

October 22, 2019 by Rick Saddler

Monday saw a strong gap up in the SPY, QQQ and especially IWM. (DIA did not get the memo.) After that gap, the SPY and QQQ had a nice day, but the DIA just treaded water and the IWM may have printed a Shooting Star candle (subject to confirmation). In supporting roles, the Transports (IYT) and Semiconductors (SMH) also both put in very strong candles. As a result, the uptrend remains intact. It looks as if the Bulls want to at least test those all-time highs again.

Earnings season will really be the focus for the remainder of the week. In fact, there are too many major reporters to list individually today. However, suffice it to say we’ll see more industrials and Consumer names this week. The only economic news on the day will be a Fed speaker (Bowman).

Overnight, Asian markets were up, but European markets are mixed at this point. As of 7:30 am, U.S. futures were flat to slightly green across the major indices. It looks like PG is going to gap up and HAS to gap down on earnings this morning.

If earnings remain strong, this should stay a bullish market. (Assuming no unexpected bad news, of course.) However, in recent months trading has been very volatile and “whippy.” So, be sure to use caution, take profits along the way and trade your plans.