Earlier this week price had closed below the 50-SMA and yesterday (Thursday) the Bulls found a path to close over the 50-SMA. This by no means suggests the bulls are back. A test of the or near the 50-SMA is required and bullish follow-through from there. Below $279.95 the seller will throw a party, and above %289.23 the buyers will dance in the streets. IWM is having a little trouble at the 50-SMA, a bear flag and a Blue Ice Failure at the moment, for this reason, we shorted IWM yesterday looking for a few hundred $$$ in profits. The VXX chart is another reason we took advantage of IWM. On the 15- minute chart the VXX was forming a bottom (“W”) looking like it want to attack its 50-SMA. Pre-market this plan is working, we will see if the open is the same. Yesterday we closed out PEP and PG for nice double-digit profits, could have not done it without our trading tools.
Trade Ideas
Sorry, we do not post trade ideas on Fridays. Friday is the day we clean up our positions. And enjoy being a Trader of the market. We follow the trend, buy near support, profit into strength for solid base hits.
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.
👍 A good tool improves the way you work. A great tool 👉 improves the way you think. – Jejj Duntemann
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
Having reaped the benefits of a nice relief rally traders
will have to consider the weekend risk of the trade war news and the rising tensions
with Iran. Futures are currently
pointing to a bearish open with the Dow currently expected to open about 100 points
lower.
With a light day on both the earnings and economic calendars
traders will have plenty of ponder the technical damage in index charts as this
volatile week comes to the close. Yesterday
afternoon I began to lighten up by taking profits to reduce risk and hedging
positions that I plan to hold. Consider carefully
how best to protect your capital in light of the tensions, possible volatility that
can emerge over the weekend.
On the Calendar
As usual we get a little break on the Earnings Calendar Friday
with only 13 companies today. Notable earnings
include DE & RDY.
Action Plan
After a big rally to test key resistance levels futures are
pointing to some profit-taking at the open this morning. With a light day on the earnings calendar and
the economic calendar the market will have to ponder the technical damage in
the charts as we move toward the weekend.
Tensions with Iran have grown to such an extent that the Whitehouse has
deemed it time to inform Congress.
Hopefully cooler heads prevail but traders should consider the
weekend risk if a military confrontation were to occur let alone the slings and
arrows tossed back and forth in the trade war.
Currently futures point to more than a 100-point gap down. If that holds the open watch closely to see
if sellers support the gap before considering short positions. However, if the sellers do being to pile on
reducing risk into the weekend fear could quickly grow and selling could
quickly accelerate.
Yesterday’s candle rolled about 1.56% or about $4.40, that’s what happens when you’re afraid to fall, unfortunately, sometimes it can’t be helped. As we had said yesterday if the SPY can not turn $285.65 into support price will be forced to sleep with the 200-SMA for a day or two. Yesterday’s candle was impressive, but now we need follow-through and a test of the $285.65 area for support. For the 50-SMA followers price closed yesterday below the 50-SMA and the fast moving average has not closed back over the T-Line, meaning the buyers need more time or there are not enough buyers willing to push. Pre-Market is suggesting the buyers are in town. Hopefully, they will stay. Support above $265.85 would also suggest the recent May highs could get challenged. Keep your eye on the VXX; price is still in a bullish formation, and support is near.
In my opinion, the LTA- Live Scanner and TC2000 offer the best of the best. TC2000 charts are clear, easy to use, and read. The LTA- Live Alert Scanner pops up trade ideas that fit my style based on how I have set the program up right on my desktop. Day Traders and Swing Trader needs an edge to succeed.
🍰 Today we are adding 10 stocks to our watch list for a possible trade in the next few days. ZNGA, RCII, SE, AMD, BX, MDLZ, AIG, ZS, PG, MSFT, PEP, NOW, The alert software we at Hit and Run Candlesticks and Right Way Options is available to you. Try it for a month
🎯 The Worlds Best Trading Tools ✅ TC2000 for charting, ✅ LTA-Live Trading Alerts for real-time price action, candle and candle patterns, and western patterns. ✅ TradeHawk for placing the trades. Crazy enough, not one of them are expensive.
👍 A good tool improves the way you work. A great tool 👉 improves the way you think. – Jejj Duntemann
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
Do we dare hope for a bullish follow-through this morning? Although
a presidential executive order seems to have raised trade war tensions markets are
putting on a brave face this morning. Following
a rather volatile session Asian market closed mixed but modestly higher overnight. European are currently green across the board
and US Futures point to a bullish open in the pre-market.
The world largest retailer, WMT, has already reported better
than expected to give the futures a nice bump but we have three potential market-moving
economic reports at 8:30 AM Eastern for the market to digest before the
open. Keep a close eye on price action
and remember we have important resistance levels just above that the bears
could defend. As for me I do dare to
hope for follow-through bullishness but I will patiently wait until I see proof
the bulls have the energy to deal with resistance before considering new risk.
On the Calendar
We have a lighter day on the Earnings Calendar but we have
some heavy hitters that could move the market.
Notable reports include, WMT, NVDA, AINV, AMAT, BIDU, BOOT, FRO, IQ,
LTM, MANU, NGG & WIX.
Action Plan
We had a nice steady rally yesterday following a gap down
open as the market reacted to trade tensions and declining retail sales figures. After the bell yesterday the president signed
an executive order that allows the federal government to block transactions
that involve information or communications technology citing National Security
concerns. China sees this as a direct assault
on the mobile device seller Huawei adding additional pressure to trade negotiations.
Despite that, futures are currently pointing bullish open. Dare we hope for a day of follow-through? Keep in mind we have some big earnings reports
today that could move the market as well as three potential market-moving economic
reports at 8:30 AM Eastern. If the pre-market
bullishness holds into the open remember to watch closely key resistance levels
where the bears could reassert themselves.
A gap into resistance raises the risk of a pop and drop so keep a close
eye on the price action and avoid chasing the open.
Something as simple as a trend can be a traders edge. Based on or 3-Line Dark chart the sellers are winning the game, at least as of yesterdays close. If the buyers can close above $285.65 and establish support, they have a chance to climb higher. Ultimately the trend needs to make a big turn, 👉Fast-EMA needs to be above the T-Line, and the T-Line need to be above the slow-EMA. If the sellers maintain control, we are looking at both our 200 moving average lines for a price test. Looking at the weekly chart, the SPY is at a little support but is also looking at three lower lows, and the monthly chart is supporting a Bearish Engulf. The VXX has challenged the 200-SMA in the (RBB) Rounded Bottom Breakout pattern, currently bullishly consolidating. May is turning out to be a fight between the buyers and sellers; this is where traders need the very best tools 👉for trading and have their wits about them.
In my opinion, the LTA- Live Scanner and TC2000 offer the best of the best. TC2000 charts are clear, easy to use, and read. The LTA- Live Alert Scanner pops up trade ideas that fit my style based on how I have set the program up right on my desktop. Day Traders and Swing Trader needs an edge to succeed.
🍰 Today we are adding 10 stocks to our watch list for a possible trade in the next few days. SPXS, QID, FAZ, VXX, TZA, SYY, COTY, GIS, CL, NEE. The alert software we at Hit and Run Candlesticks and Right Way Options is available to you. Try it for a month
🎯 The Worlds Best Trading Tools ✅ TC2000 for charting, ✅ LTA-Live Trading Alerts for real-time price action, candle and candle patterns, and western patterns. ✅ TradeHawk for placing the trades. Crazy enough, not one of them are expensive.
👍 A good tool improves the way you work. A great tool 👉 improves the way you think. – Jejj Duntemann
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
Yesterday broad-based rally left me hopeful that we might
see at least a little follow-through bullishness this morning. Futures during the night showed some promise
of that as Asian markets rallied closing up across the board. Unfortunately that bullishness has faded this
morning ahead of a big day of earnings reports and economic reports.
Although there was some sweet relief yesterday from the
selling pressure so much technical damage was created on Monday prices now face
some pretty tough resistance levels if the rally is to continue. Perhaps this mornings data deluge and provide
the energy need to inspire the bulls higher. As you plan your risk forward however it would
be wise to remember that it’s not uncommon for prices to retest market lows at
some point. Remember the current trend
is still down and how the market deals with resistance levels will be very
important as we move forward.
On the Calendar
A busy day on the Earnings Calendar with nearly 190
companies reporting. Notable reports
BABA, CSCO, ERJ, FLO, JACK, M, NTES & TCEHY.
Action Plan
Yesterday’s relief rally appears to have been very broad-based
with many sectors involved in the recovery.
Unfortunitually Monday’s selling created so much technical damage in
charts they now face some pretty strong price resistance levels. We also have a very big day of earnings and an
economic calendar full of potential market move reports for the market to chew
on this morning.
Futures reopened last night bearish but then turned bullish
as Asian markets found the energy to recover but that warn and fuzzy feeling has
now slipped away. As I write this note futures
are pointing to a gap down of more than 50 points but that could quickly change
as earnings and economic data rolls out.
Keep a close eye on overhead resistance levels and remember that market
bottoms often require a retest of previous supports so plan your risk
carefully.
US futures are pointing to a triple point gap up but is this
a relief rally or the setup for a pop and drop pattern? Only time will tell but be careful not to get
caught in fear of missing out rushing into danger. There was wise spread technical damage
created in most sectors of the market yesterday so keep an eye on those price
resistance levels if the bulls do choose to test them.
Though the market may have created a short-term oversold
condition with yesterdays aggressive sell-off the trade war is likely to have
lasting impacts so don’t expect the bears to give up easily. The market is likely to remain volatile, sensitive
to tweets and news reports so plan your risk carefully. The current market condition is likely to be
challenging to even the most experienced traders so there is no need to rush into
harm’s way, remain disciplined to your rules and wait for your edge to return even
if this is a relief rally.
On the Calendar
We have nearly 170 companies on the Earnings Calendar
expected to report results. Among the
notable reports, BABA, PLCE, CSCO, ERJ, FLO, JACK, M, NTES & TCEHY
Action Plan
After taking considerable time to look over 1000’s of charts
last night, yesterday’s rout created significant technical damage across most
sectors. Consumer defensive stocks, utilities,
precious metals fared the best as traders and investors looked to find some
safe havens. Futures are pointing to a
triple-digit gap up but it would not be wise to rush in the morning gap. The bears are unlikely to give up easily and
we will have to watch the possibility of a pop and drop pattern.
Price action is likely to remain fast, volatile and very challenging
even to the most experienced traders. For
the time being this is a very emotional and news-driven market subject to intra-day
and overnight reversals so plan your risk carefully. Due to the heightened volatility, if I do
trade, I will take smaller than normal positions and expect to take profits without
hesitation to reduce the risk of reversal.
Stay disciplined to your rules and patiently wait for technical correct
patterns that provide you with a higher probability edge.
Yesterday’s gap hurt…Ouch! But we should not have been surprised, the current trend has been a sleuth of bears, and they were hangry. The bears have run the lows lower until they broke the 50-SMA and then gaped smack dab on the Fibonacci 23.6 retracement line closing at 280.86. The futures are up a bit this morning, and we are oversold so a relief rally may be in the cards, but a true run for bullishness will need a pattern such as a low/high higher low/ higher high or a bullish 123 step pattern.
Our bar
chart is still strong into a downtrend. The closing price yesterday is about
halfway between the 50-SMA and the 200-SMA, the battle is on, the sellers will
fight for the 200-SMA and buyers will fight for the 50-SMA.
🍰 Today we are adding 10 stocks to our watch list for a possible trade in the next few days. AXSM, GIS, PG, COTY, ZNGA, MELI, SPWR, ROKU, WW, ZAYO. The alert software we at Hit and Run Candlesticks and Right Way Options is available to you. Try it for a month
🎯 The Worlds Best Trading Tools ✅ TC2000 for charting, ✅ LTA-Live Trading Alerts for real-time price action, candle and candle patterns, and western patterns. ✅ TradeHawk for placing the trades. Crazy enough, not one of them are expensive.
👍 A good tool improves the way you work. A great tool 👉 improves the way you think. – Jejj Duntemann
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
In Friday’s blog post I posted my Candlestick Dark Chart using just three moving averages. The moving averages (3-EMA, 8-EMA and the 17-EMA) shows how the bulls had control and now clearly shows the bears in control. Bullish candlesticks (price action) with these line in bearish formation is thought to be a bottom but requires confirmation. One more time please “Requires Confirmation.” 👉 Friday has not confirmed it was simply the buyers and sellers creating a candle; confirmation would be above about $289.00 based on Friday’s candle. Notice on the above chart the red dot above Friday’s candle, when the dot turns green you most likely will have confirmation. This indicator or strategy can be used on any chart if you are wondering. ✅ The Red/Greem T-Line Dots on TC2000 and the Alerts from The LTA Scanner are a top tool for trading. Just like a fork is the #1 for eating pie.
🎯 I use 3 of the best tools in the world for trading stocks and options. 👉TC2000 for charting, LTA-Live Trading Alerts 👉 for real-time price action, candle and candle patterns, and western patterns. 👉TradeHawk for placing the trades. Crazy enough, not one of them are expensive.
👍 A good tool improves the way you work. A great tool improves the way you think. – Jejj Duntemann
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
How many remember setting in your room in anticipation of punishment
after acting up as a youngster? The
waiting was awful as it gave you time to ponder even the worst-case scenarios of
your future fate. This morning the
futures are pointing to 300 point gap down after a weekend of wild speculation
of the punishment yet to come.
We will also get a reminder of the dangers of market reversals
over the weekend. Traders hoping to have
picked the bottom and those rushing into Friday’s rally with the fear of
missing out will get a painful lesson in patience at the open today. Markets around the world are also reacting
lower in anticipation. As we wait,
expect very challenging price action the could reverse on a dime on a tweet or
news report. Consider your risk
carefully.
On the Calendar
We have 175 companies expected to report on the Earnings
Calendar today. Notable reports include,
DAVE, GAIN, TTWO & TME.
Action Plan
Traders are going to get a nasty reminder this morning just
how dangerous a volatile market can be over the weekend. Friday’s big rally has likely trapped a lot
of hopeful traders with the fear of missing out and trying to pick the bottom. As I write the morning note, futures are pointing
to more than a 300 point gap down as we wait for the Chinese response to
increased US tariffs. Do you remember
being sent your room after acting up as a kid to await punishment?
The anticipation of what could happen was often worse than
the punishment. Thinking about what could happen over the entire weekend has
given time for the market to ponder the even the worst case scenarios. The longer we wait the worse the anticipation
becomes and we see that in the futures this morning as speculation of the unknown
runs wild. We should expect fast and
very volatile price action during the morning rush that has the potential of big
intra-day or overnight reversals driven by news. Consider your risk careful if you decide to
gamble on the outcome.
