Earnings Season Kicks Off

by

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.

$50.00 discount with code: Privilege

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%.

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

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

Favorite Charting Software

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

Vague Phase 1

by
Friday’s huge short squeeze rally seems the market seems to be struggling this morning with the very vague so-called Phase 1 deal as China now says they need more discussion before signing anything. Over the weekend, we’ve also learned that the Brexit deal is once again proving elusive with the Sterling reversing Friday’s hopeful gains. We also know the conflict between Turkey and Syria has escalated and that Hong Kong protesters are talking about scaling back on their activities. What a difference a weekend can make! Asian markets closed green across the board overnight, but that sentiment has not translated into bullish notions in Europe, which are currently seeing red across the board this morning. US Futures have recovered from overnight lows as the vague Phase 1 deal may be harder to close than the hopeful market initially thought. With today being a banking holiday and 4th quarter earnings beginning Tuesday a light and choppy day would not be out of the question after a what could be a volatile open. On the Calendar Because it’s the national holiday Columbus Day banks and bond markets will be closed today. As a result, we have no Economic Calendar reports today. We have just nine companies reporting earnings today, but none are particularly notable and unlikely to be market-moving. However, keep in mind, the official beginning of the 4th quarter earnings begins Tuesday morning with several big banks reporting. Action Plan What a difference a weekend can make. After a huge short squeeze rally that closed the Dow over 300 points higher on news of a partial trade deal. This morning the news seems to have reversed, suggesting that China needs more discussion before a possible deal can be signed. Details of the so-called Phase 1 deal have been few and far between; in fact one could argue extremely vague. By the way, how many Phases are there? In other news, the conflict between Turkey and Syria has escalated over the weekend with Turkey preparing to invade a northern Syrian city. The positive news of Brexit progress seems to have also shifted as many not suggest Britain will need to ask for another extension which the Prime Minister is not in favor of doing. On a technical basis the DIA, SPY, and QQQ are now well above their respective 50-day averages but have left significant gaps behind as well as not so confident shooting start candle patterns behind. As I write this report, futures are pointing to lower open but rallied to cut the overnight lows almost in half. I would not be at all surprised to see the overnight lows tested after the open. With today being a banking holiday with the bond markets closed, I’m expecting a light and choppy price action after the morning rush as we wait for the official kick-off the 4th quarter earnings on Tuesday. Trade Wisely, Doug

Friday’s huge short squeeze rally seems the market seems to be struggling this morning with the very vague so-called Phase 1 deal as China now says they need more discussion before signing anything.  Over the weekend, we’ve also learned that the Brexit deal is once again proving elusive with the Sterling reversing Friday’s hopeful gains.  We also know the conflict between Turkey and Syria has escalated and that Hong Kong protesters are talking about scaling back on their activities.  What a difference a weekend can make!

Asian markets closed green across the board overnight, but that sentiment has not translated into bullish notions in Europe, which are currently seeing red across the board this morning.  US Futures have recovered from overnight lows as the vague Phase 1 deal may be harder to close than the hopeful market initially thought.  With today being a banking holiday and 4th quarter earnings beginning Tuesday a light and choppy day would not be out of the question after a what could be a volatile open.

On the Calendar

Because it’s the national holiday Columbus Day banks and bond markets will be closed today.  As a result, we have no Economic Calendar reports today.

We have just nine companies reporting earnings today, but none are particularly notable and unlikely to be market-moving.  However, keep in mind, the official beginning of the 4th quarter earnings begins Tuesday morning with several big banks reporting.

Action Plan

What a difference a weekend can make.  After a huge short squeeze rally that closed the Dow over 300 points higher on news of a partial trade deal.  This morning the news seems to have reversed, suggesting that China needs more discussion before a possible deal can be signed.  Details of the so-called Phase 1 deal have been few and far between; in fact one could argue extremely vague.  By the way, how many Phases are there?  In other news, the conflict between Turkey and Syria has escalated over the weekend with Turkey preparing to invade a northern Syrian city. 

The positive news of Brexit progress seems to have also shifted as many not suggest Britain will need to ask for another extension which the Prime Minister is not in favor of doing.  On a technical basis the DIA, SPY, and QQQ are now well above their respective 50-day averages but have left significant gaps behind as well as not so confident shooting start candle patterns behind.  As I write this report, futures are pointing to lower open but rallied to cut the overnight lows almost in half.  I would not be at all surprised to see the overnight lows tested after the open.  With today being a banking holiday with the bond markets closed, I’m expecting a light and choppy price action after the morning rush as we wait for the official kick-off the 4th quarter earnings on Tuesday.

Trade Wisely,

Doug

No Deal But No Escalation

by

Markets gapped strongly and the bulls ran hard most of the day Friday on the hope of a US-China Trade Deal.  However, at day end, markets crashed back down to Open levels when it became clear there was no deal (not even a partial deal), just handshake and political spin.  (Nothing was put on paper and none of the major points were even discussed.)

So, what we really got Friday was an agreement to talk more and not escalate the trade war until we do talk again.  While President Trump is claiming success (and that China is starting to buy US Ag products, which was true before the meeting began), the Chinese statements say nothing of any deal, just that some progress was begun).

$50.00 discount with code: Privilege

The post-announcement market crash left US indices looking a lot like Shooting Star candles at the top of the recent pull-up.  However, the good news is that the indices did break the recent downtrends.  Monday’s economic calendar is empty and Earnings Season does not kick off until Tuesday.

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

Overnight, Japan was closed, China was green and European markets are all in the red two-thirds of a percent.  As of 7:30 am, U.S. futures were all pointing to 3/10th of a percent gap down (apparently either following Europe lower or continuing the “No Deal Crash” late Friday).

Favorite Charting Software

The bottom line remains that it is very hard to swing trade in the recent markets successfully.  Until we start getting fewer “gaps and whiplash” and more “trend and follow-through” be very cautious.  Day or Position trading look much more attractive in this sort of volatile and choppy market.  So lock in profit whenever you can. Do not confuse one candle as trading wisdom…or a new trend.

Ed

For Your Consideration: Trade ideas for your swing trading watchlist. Short – CME, MO, RDUS, LDOS, SBUX, SMPL, SHAK, HEI Long – HCP, ES, EQR, AMH, MPC, SYY, AIV, LEN, GRMN 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

Abounding Optimism

by

Abounding optimism of a trade deal has the market surging higher this morning even though we have not seen any details as to what negotiations have produced.  Will there be a deal, a partial deal or could this morning gap be irrational exuberance?  Could this trigger a huge short squeeze that drives short traders of the market, or might this create a big pop and drop pattern if we learn there is no deal and tariffs increase next week?  The bigger question is, how will you manage your risk as we head into the weekend if we have no answers to these questions by the close of today?

Overnight Asian markets closed the week green across the board on trade optimism.  European markets are also decidedly bullish this morning amid rising hopes of a Brexit deal coming together.  US Futures point to a wildly bullish gap up open of more than 250 Dow points as the President, and the Vice-Premier conclude the 2-day meeting today.  With such an emotionally charged market, remain flexible and prepare for volatile price action in reaction to trade developments.

On the Calendar

We have 14 companies expected to report on the Friday Economic Calendar.  Notable reports include FAST and INFY before the open today.

Action Plan

Looking at the US Futures this morning, I’m honestly speechless at the huge bullishness this morning after positive comments on negotiations with early today.  It seems we’ve been down this road before that ended with no deal, but the market is wildly this morning even though there have been no details released.  Perhaps we’ll know more later today but be prepared for potential violent volatility as the news rolls out.  There is also hopeful news from across the pond that the British Prime Minister and the EU have found some common ground after reporting a path to a Brexit deal is improving.

Today’s huge gap up could trigger a big short squeeze forcing the market even higher.  T2122 could easily swing from short-term oversold to short-term overbought all at once, making a mess of the chart technical.  We should also not rule out the possibility of a pop and drop pattern that could quickly develop if the trade news happens to spin the opposite direction.  The big question for me is, what happens if we hear no details on trade negotiations until after the market closes?  How much risk are you willing to hold into the weekend?  Plan carefully and remain focused on price as the emotionally charged market could provide a very wild ride today.

Trade Wisely,

Doug

Hoping for a Trade Deal

by

Markets had a strong day Thursday, almost exclusively on “hope” of a partial trade deal between the US and China.  The indices closed up two-thirds of a percent, right at the 50sma in the SPY and DIA.  Still, both the SPY and IWM both failed the downtrend line and that trend remains intact in all (arguably) indices except the QQQ (which broke through on Thursday).

$50.00 discount with code: Privilege

Friday’s economic calendar includes the Michigan Consumer Sentiment survey at 10 am.  However, given all the focus for months on the Trade War, the big market mover will be the rumors, announcements, and spin placed on the meeting between President Trump and the Chinese Vice Premier.  Also keep an eye on Oil markets as Iran claims one of their tankers in the Red Sea was struck by 2 missles last night. The only earnings of note is for FAST before the bell. 

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

Overnight, Asian and European markets were up strongly (apparently also on Trump’s tweet that trade negotiations were going “very, very well”).  And as of 7:30 am, U.S. futures are all pointing to a large gap higher (about 1.25% across the board) on that optimism for a Friday trade deal.

Favorite Charting Software

The bottom line remains that it is very hard to swing trade in the recent markets successfully.  Day or Position trading look much better in this sort of volatile and choppy market.  Until we start getting less “gaps and whiplash” and more “trend and follow-through” be very cautious.  Do not confuse one candle as trading wisdom…or a new trend. That all said, downtrend remains in control for now.  

Ed

For Your Consideration: No trade ideas for Friday. Remember to lock-in profits while you can, and hedge your risks for the weekend when you can’t react to news and rumors. 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