Blog - Page 256 of 641 - Hit & Run Candlesticks

A Glass Half Full

June 26, 2019 by Doug Campbell

The tenacious bulls pushed the market to new record highs with a glass half full attitude that the FOMC would give them a bigger rate cut than it now seems the Fed is not quite ready to give. Then they grabbed on to a late night headline from Secretary Munchin that the US/China trade deal is 90% complete reversing afternoons yesterday bearishness. Finish reading the story and what Munchin said he hoped for a completed deal by years end.

If he’s right could mean another six months of negotiations and market uncertainty. It would seem the bulls once again see the glass half full. A trade deal with China would be a game changer but six more months of news cycle spin and possible tweet storms means the road ahead could be full of potholes and very challenging to navigate. The news-driven gap this morning could create a short squeeze but it also has the potential of a pop and drop pattern. Stay focused and disciplined to your rules.

On the Calendar

On the hump day Earnings Calendar we have 18 companies reporting quarterly results today. Notable reports today include KBH, BB, GIS & PAYX.

Action Plan

After learning that the FOMC plan to move much more cautiously than the somewhat exuberant market has expected the short-term price action turned decidedly bearish yesterday afternoon. No doubt many likely entered short positions yesterday expecting at a modest pullback at a minimum. However, during the night we get a statement from Treasury Secretary Mnuchin that the trade deal is 90% complete and markets around the world reacted bullishly.

Had they gone beyond the headline they would have also seen the statement that he hoped a completed deal by the end of the year. If it’s going to take another 6-months to work out the final 10%, I think it’s safe to say the devil is in the details and we may still have a long bumpy road ahead. US Futures are pointing to a gap up of around 100 Dow points. Truly a glass half full kind of market. Those caught short will be squeezed hard this morning and could propel the indexes higher. On the other hand the morning pop could set up a pop and drop pattern so be patient to see if buyers will support the gap.

Trade wisely,

Doug

US-China deal is 90% complete.

June 26, 2019 by Rick Saddler

💲 Stock futures surge after Secretary Munchin says US-China deal is 90% complete. We closed our IWM Puts yesterday 44.19% to satisfy our profit taking craving. We will close our SPY puts today with profits if the chart agrees. We added to DIS yesterday on the Piercing candle following the Hammer. The NVDA trade we are in has been in a bullish pullback to trend, pre-market suggest the buyers are buying a little. Yesterday we also bought X and we love to wake up to positive trading, the pre-market suggest buys are up early today.

Have good trading day – Rick

Pre-Market Thoughts

This morning on the market is up pre-market on the US-China deal, as traders, we need to watch the charts making sure it’s not lip service and the investment world also believes this. We had a support line at the SPY $290.95 (tagged and bouncing). For this bounce to make good, we need to see the SPY close above $293.70. The SPY has been in a Bullish pullback IMHO; the daily chart still sees a Low/ High– Higher/ Low – Higher/ High and so far a Higher/ Low The VXX is down below our $26.70 line pre-market, back above $26.70 and the VXX is back in the building.

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.

Trade Ideas

🥧 For your consideration: The downtrend is in place, and the relief rally has started, price has tested and closed over the 50-SMA. You don’t need to be a hurry. One condition I would like to see the 34-EMA over the 50-SMA.

Disclosure: We did buy a little X yesterday Remember to wait for the (QEP) Quality Entry Pattern for best results. 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.

👀 The LTA Alert Scanner and TC2000 are my tools of choice because they work!. Rick and the HRC Members kick off the trading room starting at 9:10 Eastern We review the market, and today’s trade ideas. TEVA, NVAX, MYL, X, MOS, BMA, WBA, CPB, DIS, LYFT, TLRY

✅ A Traders Edge In All Markets

The LTA Scanner can filter out charts that are trending, up or down and alert on charts that have Candlestick signals and patterns, western patterns and when indicators, such as MACD, Stochastics, RSI or Bollinger Bands have crossed or reaches the desired level. 😎 One of my favorites is the T-Line Band Scan. The right tools for the job.

We use The Worlds Best Trading Tools, TC2000 for charting, LTA-Live Trading Alerts for real-time price action, candle and candle patterns, and western patterns. The right tools for the right job.👍

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

More Fed Speak

June 25, 2019 by Doug Campbell

Taking a break ahead of more Fed speak as Jerome Powell speaks with the New York Times at 1:00 PM Eastern today. Some are speculating that he may try to reduce the current market exuberance of expected rate cuts. Certainly this adds some uncertainty to the day as if we didn’t already have enough of that with growing Iranian tensions and a pending G20 with US/China trade hanging in the balance.

Asian markets closed lower across the board during the night and European markets are modestly lower in reaction to the new US sanctions on Iran. US Futures are also modestly lower ahead of a busy economic calendar day and a few noteworthy earnings reports. There is a lot to consider as we plan today amid the uncertainties but as for now the bulls are firmly in control and I would not expect them to give up easily.

On the Calendar

On the Tuesday Earnings Calendar we have 21 companies stepping up to report. Among the notable reports are MU, FDX, FDS & LEN.

Action Plan

With more Fed speak today and the pending G20 meeting it would seem the market is taking a wait and see approach. Some are concerned that Jerome Powell may temper the market’s exuberance over possible rate reductions in his interview with the New York Times at 1:00 PM Eastern today. Of course what he will say and how the market will react only time will tell but should be a consideration as trader plan how to approach the market today.

Technically speaking a little resting consolidation after such a big move this month seems logical even without pending uncertainty. The bulls are in control and unless the Fed changes the market’s perception I don’t see that changing. While a pullback may be in the card for the near future, a hold above the 50-day averages builds a bullish case.

Trade Wisely,

Doug

Haning Man -Bought SPY Puts

June 25, 2019 by Rick Saddler

💲 Overall a pretty quiet day yesterday, with the G20 Summit around the corner the market seems to be walking in place, at least until the rumors start. Our IWM Puts are working well, and yesterday we picked up a few SPY Puts. We also bought a little NVDA near the support line (very tight stop on this one). PFE has printed a couple of Doji’s and holding above support.

Have good trading day – Rick