Now What?

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The market (SPY), Mr. Powel and the Fed have spoken; now what? Simple we do what we do every day examine high probability chart setups for a money-making swing trade. For a bit yesterday the SPY was under the seller’s spell, but the buyers snapped out of it. Yesterday’s long wicked candle found it’s low on the Volatility Stop indicator we use and then popped closing at $300.10. Overall the SPY and SPX are working to break the spell of the July High. “If” the buyers can get through the July high, they could walk the walk to about $308.00. While the T2122 chart is reading overbought price remains bullish at yesterdays close with 2 of the 3 Bands trending up and price action above the T-Line.

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

SWING TRADING THE T-LINE: Swing trading the T-Line is easier than you might think. If you are in a long trade, stay long until the price action closes below the T-Line. If you are in a short trade, stay short until the price action closes above the T-Line. It’s as simple as that, but of course, there are many other factors to take into consideration if you want to be successful. Swing trading the T-Line isn’t black and white. The proper way to trade the T-Line is to combine everything you know about trends, support/resistance, candlestick signals, chart patterns, moving averages, and any other indicators. Elements to Consider When Swing Trading the T-Line – Read More

Favorite Charting Software

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The I path Series S&P 500 VXX Short Term Futures ETN. The VXX closed at another new low, and the past 2-weeks has shown zip for fear. A close above the T-Line, we would consider a T-Line strategy trade. Always trade with caution.

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Trade-Ideas

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. DOCU, TER, GWRE, SNAP, BURL, CPB, SPWR, STNE, ESTC. Trade smart, and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.

😊 Have a great trading day – Rick

✅ 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

Focused on the Fed.

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Jerome Powell is in the unenviable position of being criticized no matter what he does today as the entire world is focused on the Fed rate decision at 2:00 PM Eastern today.  Choose to cut the rates a little and market could be disappointed, and Whitehouse tweet barrage will begin.  There will likely be criticism within the committee as at least 2-dissenting votes expected to occur suggesting he has bowed to the market.  As traders, no matter what the FOMC does, our job is to set aside the bias and trade the chart following our trading plan rules. 

Overnight Asian markets closed mixed overall pretty flat on the day as they wait for the FOMC decision.  European indexes are however seeing green across the board but only holding very modest gains as they wait.  US Futures ahead Housing and Oil Supply numbers point to a flat to slightly bearish open.  After the morning rush, I expect very slow and choppy price action until the Fed decision.  After that anything is possible, so plan your risk very carefully.

On the Calendar

On the hump day earnings calendar, we have just 11 companies reporting results.  GIS is the notable report on the day.

Action Plan

Oil prices moderated yesterday when Saudi Arabia said they have largely restored oil production and should be back to full capacity by the end of the month.  Benjamin Netanyahu’s attempt at a 5th term as Prime Minister is struggling this morning as the election is said to be to close to call.  It would seem political uncertainty is a worldwide theme these days.  Today is all about the FOMC and whether they will or won’t or how much they choose to adjust the interest rates.  No matter what Powell will have to face criticism.  Cut the rates, and it’s likely there will be at least 2-dissenting votes cast on the committee.  Don’t cut the rates enough and expect a barrage of disapproval tweets from the Whitehouse. 

No matter what you think or want to happen; as traders, the best we can do is stick to our rules, set aside our bias and trade the chart.  We will all know the answer at 2:00 PM Eastern and all the media spin before that is speculation and distracting noise.  Currently, US Futures point to flat to slightly bearish open where we can expect choppy price action until the rate decision is released.  After that, all bets are off, and anything is possible.  If the market embraces the decision new, record market highs look possible.  Disappoint the market, and the index charts could easily begin to show topping patterns.  Hang on it could be a wild day!

Trade Wisely,

Doug

T-Line Run Still Active

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The market (SPY), The T-Line Run is still active,14-days now. Powell will let us know if there will be ¼ point cut, his thoughts, and possible future cuts. It has been pretty obvious the market realized that Powell would be speaking about 4-days ago. Above $301.80 the market like what Powell is up too and below $ 298.20 not so much.

✅ At hit and Run Candlesticks, we focus on Stocks / Simple Directional Options

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The I path Series S&P 500 VXX Short Term Futures ETN. The VXX chart remains in a downtrend with price below the T-Bands and price below the T-Line. Price closing above the T-Line creates the possibility of a relief rally to the Bands.

$50.00 discount with code: Privilege

Trade-Ideas

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. WWE, ESTC, TU, ACGL, FL, UTHR. Trade smart, and trade your trade. Stocks we mention and talk about are not a recommendation to buy or sell.

😊 Have a great trading day – Rick

✅ 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

Big one-day increase.

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One of the biggest one-day increase in oil prices in 30 years but the overall market seemed to take the blow in stride only losing about half of one percent on the day.  Rising domestic production decreasing our dependence on foreign crude likely played a significant role in the muted market reaction.  Another might be the no-rush response to retaliation of those responsible for the attack.  Last but not least is the hopefulness that the FOMC will lower interest rates on Wednesday afternoon.  The question rattling around in my head is what happens if the FOMC disappoints due to the rather strong US economic data? 

The rising geopolitical concerns and rising energy prices led to Asian markets closed mixed with the Hong Kong exchange suffering the biggest decline.  Across the pond European are also cautious this morning trading mixed but modestly lower overall.  With the FOMC kicking of their 2-day meeting today and ahead of Industrial Production number the US Futures points to a modestly lower open and what could be another very choppy price action day as we wait for the Fed decision.

On the Calendar

We have 22 companies stepping up to report today according to the Earnings Calendar.  Notable reports include FDX, CHWY, ADBE, & CBRL.

Action Plan

Although the oil made it’s biggest one day spike in nearly 30 years, the overall market barely flinched only falling about half a percent overall.  While evidence mounts that the oil field attacks came from Iran, the President is exercising patience on retaliation as investigations continue.  With US energy production so high nowadays we have decreased dependence on Saudi oil, but the other factor for a muted market reaction is the pending FOMC announcement on Wednesday afternoon.  Although fed fund futures have recently decreased the odds of a rate cut slightly but as of yesterday, the probability remains at 26% of an FOMC accommodation. 

Ahead of the open US Futures are pointing to a modest decline as the FOMC begins its 2-day meeting.  We have Industrial Production numbers at 9:15 and Housing Market Index reports on the economic calendar and after the bell earings from FDX and ADBE that could move the market.  Although there could be a news-driven event that creates some price volatility, I’m largely expected a light and choppy day as the market waits on the Fed decision. 

Trade Wisely,

Doug

Uneventful Monday: Tuesday?

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✅ At hit and Run Candlesticks, we focus on Stocks / Simple Directional Options

The market (SPY), For the most part, a very uneventful day yesterday, the market didn’t seem to care about 5% of the world oil being blown up. Perhaps the market will be more interested in the possible .25 point cut. The close yesterday like previous 12 days were all above the T-Line, we call that a T-Line Run. A close below the T-Line, the sellers, could take us to about $297.00, a bit more and the 50-SMA become vulnerable. Currently, the Bulls still outnumber the Bears; you can see this because of the trend and price action is still above the trends and moving averages. The T2122 chart is running high in the overbought area and has failed to make a higher high compared to the last three runs. (Looking at a 3-day chart)

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J-Hook Continuation Pattern While there are several continuation patterns in trading, the J-Hook Continuation Pattern is one that is a very decisive and can be easily identified since it forms the letter J.  If the chart pattern is followed, entered at the right time and unfolds as expected, it can be very profitable.  J-Hooks may also be called by other names like Thunderbolts and 123 formations.

There are three necessary parts to the pattern 1) a strong upward move in price 2) a pullback and 3) an up move which should continue into a breakout above the previous pivot high in price to complete the pattern and continue the uptrend.  Figure 1 presents the three price movements that take place as a J-Hook develops. 

TheThe I path Series S&P 500 VXX Short Term Futures ETN. The VXX closed below the T-Line (bearish), closed with a Doji on the 2-day chart. The VXX is also near support. Always trade with caution.

Trade-Ideas

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. XON, FTCH, CIEN, WWE, ALKS, LMT, CLDR, GWRE, BKI, MASI, V, TRI, BURLTrade smart, and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell.

😊 Have a great trading day – Rick

✅ Check out our newest YouTube videos👈

$50.00 discount with code: Privilege

🎯 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

Crude Prices Rise

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Crude Prices Rise

Crude prices rise sharply after Iranian attacks on Saudi oil fields forced the shut down of nearly 50% of their daily production.  The President has authorized the opening of the US Strategic supplies in response.  The UAW has officially placed 48,000 General Motors on strike, but negotiations are set to resume this week.  What a difference a weekend can make!  With the market hopeful of FOMC rate decision and forecasts on Wednesday afternoon and the weekend disruptions, we should prepare a bit more price volatility in the days ahead.

Overnight Asian markets closed mostly lower as higher oil prices could pressure and the already challenged Chinese economy.  European markets are seeing red across the board in reaction to oil prices and the obvious geopolitical tensions it’s likely to occur.  US Futures had bounced slightly off of overnight lows pointing to a gap down open.  One has to wonder what comes next as a response to the attack on world energy supplies?

On the Calendar

Although were nearing the end of the quarter we still have stragglers yet to report.  Today we have 21 companies expected to report but is see none that are particularly notable.

Action Plan

Iranian attacks on Saudi Arabian oil fields wiped out 5% of the global supply and forced the shutdown of nearly 50% of their daily production.  Not surprisingly crude price rose sharply as futures markets reopened.  What’s more, unsettling is what comes next?  Disrupt the supply of energy, and a significant military response is not likely far behind.  Aerospace and Defense sector stocks may join in the rally with oil prices.  Tuesday begins the 2-day FOMO meeting with their announcement on rates and forecasts at 2:00 PM Eastern Wednesday. 

Typically the market tends to chop with lighter than normal volume ahead of an FOMC announcement but, normal may be difficult to achieve today with the new uncertainty of energy.  US Futures have improved from overnight lows but continue to point lower this morning with the Dow expected to gap down about 100 points.  Keep in mind the 8-day rally has put the indexes in a short-term overbought condition with 50-moving average support significantly lower so we should not rule out the possibility of a test.  However the hopefulness of lowered interest rates could inspire the bull to hold firm.

Trade Wisely,

Doug

Oil Event Causes Ripple

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✅ At hit and Run Candlesticks, we focus on Stocks / Simple Directional Options

The market (SPY), Yesterday was a tremendous money-making day in the market, all thanks to the LTA Scanner and a few critical indicators on our charts. The SPY is on a beautiful T-Line Run, and it will last until it doesn’t, watch price action. Price action over the past ten days has gone from below the T-Bands to above the T-Bands, a bullish move for the buyers. Let’s keep our eyes on the $302.23 high and the price staying above the T-Line. Any changes we will post an update.

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Bullish Cup and Handle Pattern: The “cup and handle formation” is a bullish signal pointing to a continuation of the current trend. It may extend over several weeks or even months and contains specific attributes.
As with any continuation pattern, you rely on confirmation in one form or another. This may occur as a second technical price signal, a candlestick continuation, volume spike, or change in momentum.
There are several parts to the cup and handle. First is the cup, which is a rounded bottom extending over time. As the shape of the cup is completed, expect the handle to emerge. This is a swing trade in the opposite direction, characterized by a specific channel between resistance and support, forming as a pennant or similar channel movement and, quite often, separated from the “cup” with an upside gap. As the handle declines and concludes, price reverses, moving again to the upside and setting up as a breakout from previous resistance. Read More

The I path Series S&P 500 VXX Short Term Futures ETN. The VXX is looking at a bounce today with the oil situation. The VXX is already in a 13-Min premarket (RBB) Pattern. Above @23.60 the VXX could get to the 34-EMA and the 5-SMA on the daily chart.

Trade-Ideas

For Your Consideration: Here are a few tickers we will be adding to our swing trade watch-list. PGC, NVAX, XEC, AXSM, WB, MCD, SBUX, SHOP Trade smart, and trade your trade. Stocks we mention and talk about are not recommendations to buy or sell

😊 Have a great trading day – Rick

✅ Check out our newest YouTube videos👈

$50.00 discount with code: Privilege

🎯 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

Interim deal, Maybe?

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Interim deal

The ECB delivered as expected, and the President said he is willing to consider an interim trade deal adding rocket fuel an already extended rally lifting the SPY temporarily to a new record high print.  After 8-days up it hard to be a buyer but the bulls are working hard this morning suggesting more than a 100 point Dow gap and possibly secure more records before the weekend.  With the FOMC expected to deliver even more stimulus next Wednesday the momentum remains firmly with the bulls.

Overnight Asian markets closed with green across the board with growing optimism of a trade deal.  European markets are mostly bullish this morning after the aggressive ECB move even as worry of a German recession grows.  The US Futures point to another triple point gap up in the Dow on its 8th day of rally that has recovered nearly 1400 points.  Consider the risk carefully you carry into the weekend as this rally become very extended.

On the Calendar

On the Friday Earnings Calendar, we have just 11 companies reporting results.  Looking through the list I can find none that are particularly notable.

Action Plan

Although there was some light selling as we moved into yesterdays close the bull, remain solidly in control with relentless upside pressure.  Having said that with the indexes up 8-days in a row and looking to extend that streak this morning, I don’t see this as a buying opportunity.  Heading into the weekend with a gap up open on Friday seems more a profit-taking rather than a day to add risk. 

Our T2122 indicator is flashing an extreme over-bought short-term condition, but I wouldn’t bet on a selloff until we see something in the price action that suggests the bears are willing to fight back.  That could begin today, but with the bullish momentum and an FOMC expected to provide more stimulus I wouldn’t be surprised if the bears have already taken the rest of week off.  Have a wonderful weekend everyone!

Trade Wisely,

Doug

Melt-up

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Melt-up

The huge Institutional rotation into value plays created an amazing melt-up in index prices yesterday.  Traders can witness this massive shift with a quick study of value ETF’s that have moved up so quickly they are nearly parabolic.  Adding fuel to the fire is the expected ECB stimulus package and the likely accommodative FOMC decision next Wednesday.  Toss in the Trump tariff delay from Oct. 1 to the 15 in what he called a goodwill gesture, and we have the recipe for new record highs in the indexes.  I would be careful chasing this rally at this point considering the Dow has already rallied more than 1100 points in just 7-days of trading.

Asian markets mostly rallied on the Trump tariff delay news but continue trouble in Hong Kong kept the HSI in the red at the close of trading.  European indexes have reversed earlier gains on fears of a German recession even as the ECB is expected to make an accommodative decision today.  Undeterred by European concerns the US Futures point to yet another gap up open to challenge the all-time high resistance levels in the DIA, SPY, and QQQ.

On the Calendar

The Thursday Earnings Calendar indicates that 25 companies are confessing their quarterly results.  Notable reports include KR, AVGO & DLTH.

Action Plan

An amazing rally yesterday as the indexes relentlessly marched higher.  To put this extraordinary rally into perspective, the Dow has gained more than 1100 points in just 7-days or trading.  A big portion of the rally seems have occurred in a huge institutional rotation into value plays that happen to be heavier weighted in the indexes.  Also, there appears to be a substantial rotation out of safety plays, such as precious metals and bonds into stock value plays. 

One reason for this is the expectation that ECB and the FOMC will both provide a monetary backstop to fears of slowing world economies.  The president in what he called a goodwill gesture in delayed the tariffs that were scheduled to increase on October 1 to the 15th of the month.  As a result this short-term over-extended market is pointing to further extension this morning.  The tariff extension, continued institutional rotation, and the likely ECB stimulus package expected today could easily inspire the bulls to set new record highs in the market.  I would, however, caution traders to be careful not to chase this rally after so many days up.  Profit-taking could begin at any time so keep a watchful eye on price signals.

Trade Wisely,

Doug