Anticipation

by
Anticipation

If I had to pick one word to describe this week of trading, it would be anticipation.  With the FOMC expected to cut rates on Wednesday.   The question is, will it be enough after a 10% market rally in anticipation of an aggressive FOMC move?  The market will also have to focus on over 1200 earnings reports this week and the resumption of US/China trade negotiations.  If that’s not enough for the market to digest, let’s toss in a very busy week of market-moving economic reports such as the Friday Employment Situation number to continue to stir the volatility.

During the night, Asian markets closed modestly lower across the board ahead of the pending trade talks.  This morning European markets are also pensive currently trading mixed but mostly lower.  US Futures are also starting the day timidly, pointing to flat open.  Although the index trends are bullish and new record highs were made on Friday this morning’s uncertainty is palpable.  I’m expecting price action this week to challenge even the most experienced traders.  Plan your risk carefully.

On the Calendar

We have a huge number of earnings this week with more than 120 companies reporting today.  Notable reports include AKS, BAH, BTND, CTB, TACO, RE, ILMN, LEG, NBR, SNY, TXRH, RIG, and VNO.

Action Plan

This week has the potential of being a very challenging trading week full of uncertainty and price volatility.  We have more than 1200 companies expected to report this week, a busy economic calendar that includes the FOMC rate decision Wednesday afternoon as well as the Employment Situation Report Friday, and for good measure, let’s toss in the resumption of China Trade talks.  With the SP-500 at new record highs and up more than 10% in just the last 2-months, there is a lot at stake.

The NASDAQ also closing at new record highs on Friday index trends are bullish, and there is very little fear with the VIX hovering just above 12.  As I write this report, US Futures are flat ahead of today’s earnings reports, and its possible trading could remain choppy and indecisive until the FOMC decision where is largely expected a rate cut is forthcoming.  The question is, will it be enough to please the market after running up so hard in anticipation?  I expect this to be a very challenging week, even for every experienced trader’s.  

Trade Wisely,

Doug

Durable Goods results, rock the boat.

by
Durable Goods

A better than expected Durable Goods number yesterday elevated concerns that the FOMC might be less aggressive or even skip cutting rates at their meeting next week.  Adding to the concern, the ECB signaled a future rate cut, but the market largely expected the cut to occur yesterday.  The better than expected company earnings results this quarter would seem to confirm the overall strength of the US economy.  Keep an eye on the results the GDP number at 8:30 AM, as it’s results could be a critical factor to sway the FOMC for or against a rate cut next week.

Asian markets struggled overnight,  closing mostly lower due to worries of a less aggressive Fed.  However, European markets don’t seem to share the same concern seeing green across the board this morning.  US Futures point to a bullish open as better than expected earnings continue to inspire the bulls ahead of the GDP number.  With a huge number of earnings, next week plan your risk carefully heading into the weekend and plan for the challenging price volatility to continue.

On the Calendar

On the Friday earnings calendar, we get a little break with just over 80 companies reporting.  However, next week earnings ramp up again with more than 1000 companies expected to report.  Notable earnings today include but are not limited to ABBV, COG, CHTR, CL, GT, MCD, PSX, TWTR, WY, WETF, and YNDX.

Action Plan

Another good round of earnings after the bell looks to energize the bulls even as the strong, durable goods numbers raises concerns about Fed cuts.  The ECB signaled a coming rate cut but also seemed to surprise markets that were largely expecting a cut yesterday.  The GDP number at 8:30 AM Eastern could help to restore rate cut hopes if it comes in lower than expected.  However, if the number were to come in, strong markets could become worried that the FOMC will also skip cutting rates this month.  Certainly, current economic indicators have been strong, and the better than expected earnings results would seem to confirm that strength.

Use Promo Code SAVE50

Although yesterday’s price action snapped a 3-day rally, index trends remain bullish.  US Futures have remained bullish all night and have only strengthened this morning ahead of earnings and the very important GDP number.  With both Iran and North Korea raising the stakes for military confrontation, there is some uncertainty as we head into the weekend so plan your risk carefully.  Challenging price volatility is likely to continue today and stick with us all next week, so remember to consider taking some profits to the bank.

Trade Wisely,

Doug

Boring Summertime Grind

by

The SPY closed below Thursdays high with an inside day candle; the range continues to get tighter and tighter, suggesting a breakup or down is coming very soon. With yesterdays close still in the T-Band channel and the channels are still rising we remain cautiously bullish. Below $297.10 (last weeks lows) would turn us bearish. Below $297.10 would also be below the T-Band Channels.

The VIX-X is seriously trying to construct a bottom around $12.25. If the VIX-X chart pushed the price over $14.50 we could be talking about a ton of fear, below the $12.25 area we have the same old thing, market grinding higher. The 4wk New High/Low Ratio chart (T2122) is coming off the overbought area trying to get to the oversold area. (T2108) % of stocks above 40 Day Pma is sitting at 60 and under the 20-SMA on the 130 min chart.  Conclusion: The SPY remains in a slow bullish grind with intraday boredom and chop.

What We’re Trading

✅ On Thursday (yesterday) we closed OXY for a small loss and closed 💲BABA for an 11.4% gain. AMD still hanging in the T-Band channel and really needs to get above $34.55. CPB closed with a Doji yesterday still above our support line. WBA has tested support now we need buyers, above $55.20 would suggest the buyers are back. X is having a tough time getting above the $15.00 area into the $16.00 area but seems to behold in place. XLF is in the T-Band trend, above $28.10 we are still bullish. 👉For more detail and the full list join us in the HRC trading room #1 Click Here and choose Trading Room #1 Password 8020👈

😊 Have a great trading day – Rick

Trade-Ideas

✅ On Fridays we do not post trade ideas. Think about profits and getting rid of the dead wood. 🌞 Hope you all have a great weekend!

$50.00 discount with code: Privilege

🎯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

Bulls continue to march higher.

by
Bulls continue to march higher.

Inspired by better than expected earnings results, the bulls continue to march higher with record-breaking results in the SPY and QQQ.  Even the beleaguered IWM got into the game yesterday breaking through a downtrend that began in October of last year.  The huge loss from BA and disappointing results out of CAT has moved the overall Dow earnings results into the negative column this quarter, but surprisingly, the index trend remains bullish.

We have a very big day of earnings and economic reports so expect price action volatility to continue.  With the VIX close to dipping to an 11 handle, the market appears to have no fear, but that always raises the question of complacency.  Remain bullish but keep an eye on the VIX watching for clues if the trend begins to shift.  Asian markets closed with modest gains overnight, and European markets trade mixed ahead of the ECB rate decision.  US Futures once again point to a bullish as earnings roll out and ahead of economic reports.

On the Calendar

On the Thursday Earnings Calendar, we will have the biggest day of reports this week with more than 325 companies reporting.  Among the notable reports are, AMZN, BUD, MMM, ABB, AFL, ALK, GOOGL, AAL, AZN, BMY, CELG, CX, CMCSA, FSLR, HSY, HBAN, INTC, IP, IVZ, TREE, MAT, MGM, NOK, PBR, RCL, LUV, SBUX, TMUS, UN, VLO, WM, WWE, WH, XRX & AUY.

Action Plan

Today we face the biggest day of news events this week to follow yesterdays record-breaking SPY and QQQ bull run.  Even IWM which has stubbornly languished in a downtrend suddenly found inspiration to rally yesterday among the better than expected earnings.  After accepting a 5 Billion dollar fine for privacy violations, FB beat analysts earnings estimates lifting the stock in aftermarket trading.  The Dow, on the other hand, suffered damage after the huge loss reported by BA that moved the entire index into the negative overall earnings growth column for this quarter.

We should expect some volatility in price action with over 325 companies reporting today as well as Durable Goods Order, International Trade in Goods and the weekly Jobless Claims numbers at 8:30 AM Eastern.  Trends remain bullish in the DIA, SPY, and QQQ and the VIX is showing so little fear it may reach an 11 handle today raising the question of complacency.  However, with the bulls firmly in control and strong upward trends, I will happily continue to follow the price up and banking gains along the way.  Go bulls.

Trade Wisely,

Doug

2 New Positions Added

by

Yesterday was the 3rd day for the SPY to post a higher low breaking out of our $300.00 resistance line. The Doji PBO (Pull-Back Opportunity) was between the mid and the lower band trap. The SPY looks to be drawing a bullish J-Hook continuation pattern; follow-through is still required. Yesterday the SPY also challenged and beat the July 15, high. Above $300.00 would suggest the bullishness continues to $302.75 and possible 304.20, weakness below $300.00 would suggest $298.25 and possibly the recent lows. (July 18, 19 22). IWM was the big newsmaker yesterday with a $2.65 move closing up over the wedge creating a sweet breakout. Unless we see a big sell-off a challenge of $159-$160 looks pretty good. IYT Transports are still trying to get through the downtrend line, and the VIX just seems to go lower and lower showing there is no fear in this market yet, I think there will be sooner or later. Conclusion: with minor pullbacks and profit-taking from bullish runs, the SPY remains bullish. As always trade with caution and be looking for profits.

What We’re Trading

✅ We have closed our 💲INTC ahead of earning for a 49.9% profit. New positions add yesterday were XLF long call and CIEN long call. AMD closed well within the T-Bands up 7.2%, 💲BABA had sweet price action yesterday now up 24%, 💲CIEN (new buy yesterday) closed up 11.8%, CPB we are watching for possible closure. LYFT is in a bullish profit tasking pull back. OXY is building a Pop Out of The Box patterns, 💲WBA is back in the Bands up 3.4%, X showed good price action yesterday working to breakout, and finally 💲XLF broke out yesterday with a J-Hook continuation pattern and the T-Bands closing up for us 2.10%. 👉For more detail and the full list join us in the HRC trading room #1 Click Here and choose Trading Room #1 Password 8020👈

😊 Have a great trading day – Rick

Trade-Ideas

✅ For your consideration: Here are a few charts I thought should go on the watch-List, remember to trade your trade. Trade smart and wait for the QEP → (QEP) Quality Entry Patterns). GPS, MYL, SRPY, CIEN, SQ, WSM, NWSA, X, BX, HAL     ✅ Check Earnings!

🎯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.

$50.00 discount with code: Privilege

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

Coming up Roses?

by
Coming up Roses?

At the close yesterday, it seemed that everything was coming up roses.  Strong earnings reports, resumption of face to face US/China trade talks, debit ceiling, lifted without incident and the market moving up into yesterday close.  So what gives with the downbeat futures this morning?  My guess is some of today earings reports my be the first to shine a light on trade war impacts as CAT fesses up to results.  There is also a concern about the coming reports from FB, AAPL, and GOOG as the Federal government begins a wide tech anti-trust investigation.

The chart technicals of the DIA, SPY, and QQQ remain bullish with only the all-time high resistance levels above to challenge a breakout.  Asian markets closed with solid gains overnight with the resumption of the trade talks lifting spirits.  European markets are missed but mostly lower this morning as they wait for a possible ECB rate cut.  Ahead of a big round of earnings reports and New Home Sales numbers US Futures currently point to a slightly bearish open but could improve or worsen as the numbers roll out.  Prepare for volatility and be careful not to get caught up in the morning drama.  Stick to your rules!

On the Calendar

The Wednesday Earning Calendar could ramp up the market volatility with 224 companies expected to report.  Among the notable are, FB, AEM, ALGN, ANTM, T, BA, BSX, CAT, EFX, F, FCX, HLT, LVS, NSC, PYPY, NOW, SIX, SAVE, TSLA, TROW, UPS, VFC, GWW and WIX.

Action Plan

After a day where Congress lifted the debt ceiling, a strong round of earnings reports, learning that face to face US/China negations will resume next week and a solid afternoon rally closing the market near its highs seeing futures in the red this morning is a bit of a surprise.  Such is the nature of earnings season, which I have mentioned that large gaps and overnight reversal possible as the market sorts out all the data.  So what’s the problem?  Today is a very big day of earnings where we some of the effects of the trade war could come to light with the earnings report form CAT.  Also, with the Federal Government casting a wide anti-trust investigation net on Tech, FB, AAPL, and GOOG have yet to report raising some concerns.

Technically speaking the trends remain bullish however continue to be challenged by all-time resistance levels in the DIA, SPY, and QQQ.  Who knows, maybe today will provide the results necessary for the market to breath a sigh of relief and inspire the bulls to break through the ceiling.  On the other hand, one has to wonder what this means for possible rate cuts later this month if the economic slowdown never arrives.  It could be a wild and woolly day so buckle up and prepare for a bumpy road ahead.

Trade Wisely,

Doug

Market Thoughts 7/24/19

by

Yesterday July 23 the SPY moved higher but not enough to make a respectable close over our 300.05 resistance line. It still stands that the SPY must show bullish power over $300.05 to remain in the bullish game. The 3-bar candle chart shows a nice higher low off the 34-ema and the 50-SMA moving averages. Follow-through above the 300.05 line would create a bullish “w” pattern. You can see how important follow-through is. Weakness below $298.05 would suggest the price is still looking for support and help, the 50-SMA work for the last to such pullbacks. While still on the 3-bar chart, the VXX showed three lower lows while close to a brand new low. The IYT transports closed with a good candle pattern (Doji Continuation) but pegged against the upper wedge line. SMH remains bullish near a consolidation area. Conclusion: with minor pullbacks and profit-taking from bullish runs, the SPY remains bullish. As always trade with caution and be looking for profits.

What We’re Trading

✅ Yesterday we had a few new buys and closes. Bought long calls on AMD, and WBA and closed the SPY Puts. AMD closed about even while 💲BABA closed positive 21.2%. CPB closed positive 3.6% and premarket looks as is a bull gap is in order. CSCO down 5% while 💲INTC is up 26%. WBA is even money and OXY -1.5%. 👉For more detail and the full list join us in the HRC trading room #1 Click Here and choose Trading Room #1 Password 8020

😊 Have a great trading day – Rick

Trade-Ideas

✅ For your consideration: Here are a few charts I thought should go on the watch-List, remember to trade your trade. Trade smart and wait for the QEP → (QEP) Quality Entry Patterns). GE, FCX, SNAP, RF, OSTK, MRVL,UAA, CAG, ALLY, MOMO, WBA, LULU    ✅ Check Earnings!

🎯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.

$50.00 discount with code: Privilege

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

Debt Ceiling

by

Modestly better than expected earnings results and a 2-year debt ceiling agreement between the Whitehouse and Congress have the US indicating a bullish open ahead of a big day of reports.  After a mostly choppy price action day, the bull finally overwhelmed the bears as they defended trends and key supports.  Of course with nearly 140 companies on deck to report and the Existing Home Sales number a 10:00 AM Eastern a lot could change by the open but so far it would appear the bulls have the upper hand.

Asian markets responded bullishly overnight on the better than expected earnings results closing in the green across the board.  European markets are also bullish this morning as they welcome a new Prime Minister ( Boris Johnson ) and a government reorganization that may or may not lead to Brexit deal.  As a result, all four major indexes indicate a bullish open.  Expect price action volatility to expand as the number of earnings reports ramp-up this week.

On the Calendar

On the Tuesday Earnings Calendar, we have about 140 companies fessing up to quarterly results.  Notable reports include AN, AVY, BIIB, CNI, CNC, CMG, CB, KO, DFS, FITB, FE, HAS, IRBT, JBLU, KEY, KMB, LMT, PNR, PHM, DGX, SHW, SNAP, SWK, TXN, TRV, UBS, UTX & V.

Action Plan

After a mostly choppy price action day, the bulls finally got it together and appeared to gain the upper hand by the close.  The QQQ demonstrated the tenacity of the bulls recovering and defending a key support and ultimately maintaining the bullish trend in the DIA, SPY as well.  Earnings after the bell appeared to come in slightly better than expected and the announcement of a Whitehouse and Congressional 2-year debt ceiling deal also lifted spirits.

Consequently, US Futures are pointing to a higher open this morning ahead of nearly 140 earnings reports that obviously could improve or dampen the actual open depending on the reaction of the results.  At 10:00 AM Eastern we will get the latest reading on Existing Home Sales which can move the market and the only such report on the economic calendar with the power to do so today.  I’m expecting volatility to expand the rest of the week as the number of earnings reports expands.  Challenging price is likely with the possibility of substantial morning opening gaps that could include overnight reversals.

Trade Wisely,

Doug

Indecision Close

by

🌞 Good Morning Traders welcome to our Tuesday blog. Yesterday we closed F with a loss and bought,💲 CSCO calls, 💲 SPY puts and added to 💲 BABA on the Hammer. F closed below the 50-SMA. Bought CSCO calls with price near our green band line holding with the recent Bullish Engulf. Bought SPY puts with Fridays Bearish Engulf and yesterday’s Doji at the lower end of the T-Bands. We are still long INTC with 17.7%, INTC, news of AAPL buying one of there divisions. And OXY with 18.8%. 💲 We are also holding CPB, LYFT, and a few VXX calls

Pre-Market Thoughts

✅ Yesterday the SPY closed with a Doji following a Bearish Engulf; it will be important for the bulls to see buying above yesterday Doji $299.00. If the buyers can hold price above $299.00, then we may see a challenge of the recent top. If the buyers can not hold price up, then the sellers will look for the 50-SMA or lower. There are a couple of places the buyers might try to mount a charge like the 34-EMA area and between the 34 and 50 moving averages. The SPY premarket is trying to challenge the 15-Min 200-SMA, we would have to see a breakout and a test of the 200-SMA before the bulls can go too far. The VXX chart is still not showing any real fear while it tries to construct a bottom, I question is will it ever get off the ground. Transports (IYT) is in a wedge and needs to break one way, or another above $194.25 would suggest bullishly. Earnings, Earnings, Earnings, be cautious.

😊 Have a great trading day – Rick

Trade-Ideas

✅ For your consideration: Here are a few charts I thought should go on the watch-List, remember to trade your trade. Trade smart and wait for the QEP → (QEP) Quality Entry Patterns). EPD, OXY, ATUS, KHC, BAC, KKR, BX, PG, MA    ✅ Check Earnings!

🎯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.

$50.00 discount with code: Privilege

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