SNAP closed ½ 31%

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💲 From our June 11th blog post: SNAP popped, and we closed ½ for 31% yesterday. CMCS we closed for a small profit because of the long upper wick, we will buy it back on a qualified buy pattern. Roku doing ok and GE hade a good day but really needs to break out of $10.50. LULU broke out yesterday and looking great, up 3-days need a little rest before buy now. Note the charts I look at have nothing to do with what the Fed may or may not do they are all based on the charts themselves. All buys and closes announced in HRC Live Trading Room, be sure to tune in starting at 9:10 Eastern when I’ll review the markets, trade ideas.

Have good trading day – Rick

Pre-Market Thoughts

Big day with the Feds (announcement @ 2:00 pm Eastern) and I suspect we will see a little volatility as well. I personally don’t think chasing the market or charts today is the wise thing to do, let the dust settle wait for the quality chart patterns, wait for your favorite charts to come back to you, so you have more control. $291.10 was cleared by the spy which such a bullish tone and produced a J-J hook continuation pattern. I still think any consolidation above $287.70 remains bullish if price action (the candlesticks) play their part right. The VIX is still not showing any fear and still trading below a down trending T line.

  1. ✅ Be patient. Know what you want and be patient
  2. ✅ Always plan your trade out
  3. Use our base hit strategy, sell into strength
  4. Buy close to your stop and support
  5. USE the LTA Trade Alert Scanner to find the winners and use Promo Code: Privilege for a $50.00 discount

Trade Ideas

🎯 X setting up; X US Steel has put together an Inverted H&S bottom starting with the Morning Star candle pattern, and very close to becoming an RBB strategy. Remember to wait for the (QEP) Quality Entry Pattern for best results.

🍰 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. KL, MGM, X, BA, CTL, HON, AUY, MRO, EGO, AMD

✅ 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

FOMC decision & forecast

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FOMC decision & forecast

All eyes are on the FOMC decision & forecast.  Will they, won’t they, how much or how little will they do to stimulate the economy?  Certainly the market has rallied significantly with the hope of rate cuts.  Will the Fed do enough to support such strong anticipation or will they disappoint the market?  It’s a tough call as US economic data continues to show strength and the market is nearing a test of all-time highs.  What they do will not be nearly as important to traders than how the market reacts to the news.  Pop some popcorn the show is about to begin.

Asian markets closed higher overnight as they reacted to the positive US/China trade developments.  Negotiations will resume and leaders will meet at the G20 attempting to find a compromise to the current trade war.  European markets as well as the US Futures are rather subdued this morning as the world waits for the FOMC decision on interest rates and their future forecast.  It would be normal to expect light and choppy price action as the market waits but at 2 PM Eastern anything is possible as the market reacts.  Plan your risk carefully.

On the Calendar

calendar

On the hump day Earnings Calendar we have only 11 companies reporting quarterly earnings.  Notable reports include ORCL, SCS & WGO.

Action Plan

After yesterday’s 350 point Dow rally and facing the FOMC rate decision one wonders if there will be anything to do until after 2 PM Eastern today.  Of course the wording in the FOMC statement will be very important but I believe the market will be most interested in the forecast and the possibility of not just one rate cut this year.  Expect choppy price action as the market waits for the decision and then anything is possible as the market digests the statement, forecast and press conference.

An apparent successful phone conversation with the President and Chinese Leader raised hopes a forthcoming trade deal after confirmation they will meet at the G20 to discuss trade.  Although many are saying the offs of a deal at the G20 is very slim the market seems to be very hopeful a compromise is possible.  Never say never but I wonder if a US/China deal occurs will the FOMC see a need to lower rates?  Only time will tell.

Trade Wisely,

Doug

Possible ECB rate cuts.

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Rate Cuts

Asian markets closed mixed overnight without the benefit of the ECB news clearing the deck for rate cuts and further asset purchases.  European markets are bullish across the board this morning on the news and the US Futures have rallied sharply on the news as well.  There is nothing quite like the smell of freshly minted money to inspire the bulls.

Ahead of the Existing Home Sales report at 8:30 AM Eastern Dow futures are pointing to more than a 100 point gap up with the Nasdaq leaping substantially higher as well.  Remember not to chase the morning gap.  Wait for proof that buyers will support the gap just in case the bear’s step in to defend resistance levels.  Also keep in mind there could be a significant risk of loading up on positions ahead of the FOMC announcement at 2:00 PM Eastern, Wednesday.  Plan your risk accordingly.

On the Calendar

calendar

On Tuesday’s Earnings Calendar we have 30 companies reporting today.  Among the notable are ADBE, AMED, KHC & LZB.

Action Plan

Yesterday’s expected choppy price action is giving way to bullishness this morning on the news that the ECB has cleared the way for potential rate cuts and further asset purchases if inflation doesn’t’ reach its target.  Markets love the smell of freshly printed money and US Futures are no different rallying on the news.  Today begins the 2-day FOMC meeting and the market is expecting an action similar to the ECB.

Technically speaking yesterday consolidation price action was productive.  The DIA and SPY held above their respective 50-day moving averages and the QQQ crossed back above its 50-day and managed to hold just 16 cents above by the close.  Futures are currently pointing to a Dow gap up open of more than 100 points but we still have to clear the Existing Home Sales hurdle at 8:30 AM Eastern. 

Trade Wisely,

Doug

SMAR up 11%

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💲 On June 11th we posted SMAR here in the blog, at the close yesterday it was up 11%. Friday held ROKU back followed by a Harami yesterday, time will tell. AIG has yet to find buyers to break it out, keep stops on. GE has broken out of a wedge, and the last few days has pulled back and tested. Yesterday we picked up a little CMCSA, nice breakout of the T-Line Bands. All buys and closes announced in HRC Live Trading Room, be sure to tune in starting at 9:10 Eastern when I’ll review the markets, trade ideas.

Pre-Market Thoughts

Geezs yesterday was boring, and I don’t expect much more from today, it seems traders and investors are waiting on the FED decision Wednesday. On the SPY between $291.10 and $287.70 is just noise, above the $291.10 the bulls have a chance to challenge the May high. Below $287.70 we could see a test of $282.20, which is the 50% retracement. The VXX chart still suggests no fear and has traded below the T-Line for the past 10-days. Above $28.30 would produce a little fear and volatility in the market.

  1. ✅ Be patient. Know what you want and be patient
  2. ✅ Always plane your trade out
  3. Use our base hit strategy, sell into strength
  4. Buy close to your stop and support
  5. USE the LTA Trade Alert Scanner to find the winners

Trade Idea With Chart

🎯 LULU breaking out; LULU found support in late May and took about 13 days to work itself back to challenge the top. Yesterday LULU broke out and held well at the close. Above $178.00, we are bullish and will wait for a qualified entry pattern and price action.

🍰 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 when we review the markets, trade ideas, and PFE.

✅✅ Other charts we plan to cover in the trading room, 9:10 am Central: ACHN, LULU, SBGI, ARWR, BABA, CMCSA

✅ 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

Will they or won’t they?

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Will they or won’t they?

World markets are watching and wondering, will they or won’t they cut interest rates in June or will the FOMC wait until July.  Recent strong economic numbers seemed to have lowered the odds of a June rate cut but the odds of a July cut seem to be rising.  One thing for sure is we all have to wait for there decision and forecast on Wednesday at 2:00 PM Eastern time. 

As we wait it would not be surprising to light and choppy consolidating price action.  With the DIA and SPY hold above their 50-day averages and the QQQ and IWM remain below the directional uncertainty of market is palpable.  Futures are pointing to a modestly bullish open ahead of today’s economic reports so be careful not to chase.  Baring some surprise news or a  presidential Tweet Storm I would expect anemic and pensive price action until the FOMC Announcement.

On the Calendar

On the Monday Earnings Calendar we have only 11 companies reporting quarterly results but none are notable very unlikely to move the market today.

Action Plan

The FOMC will be the predominant focus of the market until their rate announcement and committee forecasts on Wednesday at 2:00 PM Eastern.  Strong economic numbers last week seems to have lower the odds of a June rate cut but most are expecting the Fed will make its move in July.  I think the bigger question is will the FOMC forecast suggest one, two or even more possible rate cuts this year?  Other questions to ponder, What if there is a US/China trade deal at the G20 meeting?  If so, will there be any need for the FOMC to cut rates? 

With so many big questions it would not be out of the question to see pensive price action as the world waits for the FOMC decision.  US futures currently point to a modestly bullish open ahead of the 8:30 AM Eastern Empire State Mfg. Survey and Housing Market Index report later this morning.  Unless we have some big breaking news or a Tweet Storm expect a relatively quiet market until Wednesday afternoon.

Trade Wisely,

Doug

Fed Focus the Next Two Days

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💲 Traders focus will likely be on the Fed meeting starting Tuesday. AIG, A trade we have been holding setting up nicely with a pullback in the T-Line bands. With the Thursday Bullish Engulf and the Doji on Friday, we are ready. Trading requires a level of trading education that most people just wanting a stock pick and to follow, likely does not have that level of education in trading. Having the right education, tools, and an understanding of Candlesticks signals make all the difference in the world. The LTA Live Trading Alert Scanner and the Hit and Run family is the best of the best. All buys and closes announced in HRC Live Trading Room, be sure to tune in starting at 9:10 Eastern when I’ll review the markets, trade ideas.

I would suspect the next day and a half will be much like the last week, choppy and boring. I think a large number of traders are on the sidelines waiting to hear the Fed attitude on a rate cut/hike in June, July, or later.  The SPY still has a Shooting Star and a Bearish Engulf staring at us, but the bulls have done a great job in containing any sell-off. The sideways move the last three days has allowed the T-Line to catch up to the price; this could be very helpful for the bullish scenario. The bearish scenario is easy; we close below the T-Line we will look for lower support. The VXX is still trading under the T-Line (No Fear) and still under the lowest T-Line band, (still no Fear). If the VXX can get over $28.30, we could see the (Fear).

👉 Friday, June 14, we didn’t do much of anything with trading, we flew to Florida and enjoyed some beach time for Fathers, stay tuned. A relaxing traders life.

🎯 SFIX is one for the watchlist;  The lower high followed by the gap and with the bulls keeping the sellers at bay is putting SFIX in a bullish position to reach higher. Simple rules and strategies are what we use, and it works.

🍰 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 when we review the markets, trade ideas, and PFE. ✅✅ Other charts we plan to cover is: SFIX, URBN, SKK, FB, VAG, SHOP, AAPL, TTD, YY

✅ 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. Hey, check out the NEW BULL PERFECT TREND ALERT. The right tools for the job.

Acton Plan

  1. ✅ Be patient. Know what you want and be patient
  2. ✅ Always plane your trade out
  3. Use our base hit strategy, sell into strength
  4. Buy close to your stop and support
  5. USE the LTA Trade Alert Scanner to find the winners

We use 2 of 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

Another overnight Gap.

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Another overnight Gap

Another day another overnight gap as the market reacts to a chemical tanker fire in the Gulf of Oman creating a surge in oil prices.  The cause of the fire is still unknown but has sparked fears of an attack after apparent sabotage of another tanker just a few weeks ago.  US futures are pointing to a gap up open reversing the modest selling yesterday and holding the key psychological 50-day moving averages of both the DIA and SPY.

The QQQ is also getting a lift this morning an looks as if it will once again challenge its 50-day average resistance.  Short traders expecting more of a pullback after the sharp rise could find themselves in a short squeeze.  Expect price volatility to remain high challenging even the most experienced traders with the hypersensitivity to US/China trade rhetoric.

On the Calendar

calendar

On the Earnings Calendar we have the biggest day of the week with 28 companies reporting.  However, the only notable report is DLTH.

Action Plan

Oil prices are surging this morning after a tanker incident in the Gulf of Oman.  The cause of the fire remains unclear, but is raising fears of an attack just weeks after an apparent sabotage of another tanker.   Futures traded modestly lower as Asian market closed mostly lower overnight but rallied significantly with the surge in oil prices. 

As I write this Dow futures point to a gap up open of more than 75 points reversing yesterday’s modest selling and holding the DIA and SPY above their 50-day averages.  The QQQ looks to challenge its 50-day average as resistance at the open.  Could this create another pop and drop day?  Yes, but it could also create just enough catalyst to squeeze short traders out pushing the indexes higher. 

Trade Wisely,

Doug

Bearish Engulfing Candle Patterns

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Bearish Engulfing Candle Patterns

The bearish engulfing candle patterns left behind on the DIA, SPY and IWM yesterday suggest the wild bullish rally may have run out energy but I would not expect the bulls to give easily.  Logic alone would suggest after such an energetic rally that little rest or pullback is likely.  However, if the bulls can defend the reclaimed 50-day morning averages as support a case for attacking all-time market highs is possible.

Unfortunately tough talk between US/China is not suggesting that a trade deal between the countries is unlikely at the G20 meeting seems to have given the bulls a little pause this morning.  Asian markets closed lower as their consumer prices hit a 15 month high and food prices spiked 7.7% in the May report.  European markets are also seeing some bearishness this morning with all indexes pointing modestly lower.  As the bulls and bears battle for control expect higher price volatility and sensitivity to trade news.

On the Calendar

calendar

On the Wednesday Earnings Calendar we have just 15 companies stepping up to the plate.  Notable reports include LULU & TLRD.

Action Plan

Tough talk suggesting that a US/China trade deal is very unlikely at the G20 seems to have dampened the bullishness we have seen in the last week of price action.  During the night China released consumer inflation numbers showing a 15 month high and food prices spiking 7.7% in May.  Asian markets closed lower across the board overnight as a result.  European markets are also seeing red this morning across their major indexes. 

As I write this US futures are modestly lower bouncing off the overnight lows but the CPI number at 8:30 AM Eastern has the potential to move the market before the open today.  The DIA, SPY and IWM all left behind bearish engulfing patterns yesterday suggesting a lower print but I would not expect the bulls to give up control easily.  Expect high price volatility and the possibility of quick intraday reversals as they duke it out.  We should be just fine if the bulls defend the reclaimed 50-day moving averages as support but if these key psychological levels fail the bears could be emboldened.

Trade Wisely,

Doug

How About Those St Louis Blues

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💲 Congratulations – St. Louis Blues “Stanley Cup Winners!” No trades were closed yesterday 6/12/19.  We did PFE Sept. $41.00 Calls and explained in the trading room in detail why we did. Having the right tools and an understanding of Candlesticks signals make all the difference in the world. The LTA Live Trading Alert Scanner and the Hit and Run family is the best of the best. All buys and closes announced in HRC Live Trading Room, be sure to tune in starting at 9:10 Eastern when I’ll review the markets, trade ideas.

It looks as if the futures are a little bullish this morning and may try to challenge the @289.25 line or the top of the Doji yesterday. A positive close over $289.25 could put a spark in one of the bull’s eyes; the other eye will be on that Bearish Engulf that will want to defend the current top.  Bullish Follow-though at the close will be important to be overly long. Fed talk coming up will be an important factor in price action, trading until then could be a little erratic and sloppy. The VXX is still under the T-Line (No Fear) and still under the lowest T-Line Channel we use (still no Fear). If the VXX can get over $28.30, we could see the (Fear).

👉 Yesterday Tuesday, June 12/19, we did not close any trades, but we did buy PFE, PFE Sept. $41.00 Calls and explained in the trading room in detail why we did.

🎯 PFE is one for the watchlist; We did buy it yesterday as it was posting a T-Line Band Alert and a Piercing Candle on the LTA Alert Scanner. (see chart below) An Inside day today and a qualified chart pattern above $43.25. 🍰 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 when we review the markets, trade ideas, and PFE. Other charts we plan to cover is: TNDN, SNAP, SHOP, PFE, MNST and BABA

✅ 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. Hey, check out the NEW BULL PERFECT TREND ALERT. The right tools for the job.

Acton Plan

  1. ✅ Be patient. Know what you want and be patient
  2. ✅ Always plane your trade out
  3. Use our base hit strategy, sell into strength
  4. Buy close to your stop and support
  5. USE the LTA Trade Alert Scanner to find the winners

We use 2 of 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

Who would have guessed?

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Who would have guessed

Is the move irrational behavior?  Goldman Sachs has warned that it is and the conspiracy theorists come out of the woodwork proclaiming a rigged market.  The fact is the market wants to go up for the time being.  Fight it and you’re likely to lose because a market can remain irrational much longer than we as retail traders can stay liquid!  Follow the price action and avoid predicting.  Could today bring in the sellers?  Yes, but it could also inspire the bulls to keep pushing higher.  Relax, focus on price and it will lead the way.

Who would have guessed the hope of a federal funds rate cut from 2.5 percent to 2.25 percent would have the power to reverse market sentiment lifting the Dow more than 1250 points in just 5-days of trading.  This morning with fresh presidential tariff threats making headlines the US futures point to yet another gap triple point gap up.  

On the Calendar

calendar

We have just 19 companies fessing up to their quarterly results today.  Notable reports include Play & HRB.

Action Plan

The power of the assumed future interest rate cut continues to propel the bulls higher even as signs of a weakening economy emerge in the US and continued threats of tariff increases from the Whitehouse.  The biggest part of yesterdays move occurred in the overnight gap and according to the futures we can expect yet another gap up of more than 100 Dow points. 

In the past I would try to figure out such price movements that seem to be completely irrational.  I would attempt to countertrend trade these relentless moves only get run over by market momentum.  Here are the simple facts.  The bulls are currently in control and they currently believe the market should be valued higher!  Personally I don’t believe that is right but what I think or feel has no bearing on what is occurring.  Trade the chart as it is not as you think it should be because the market doesn’t care what you think.  Could this turn out to be an irrational rally?  Yes, it could but it could also just keep going up.  Focus on price action and it will lead the way.

Trade Wisely,

Doug