Oversold Relief Rally?

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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.

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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

Sellers Have Contol

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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

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

Anticipation

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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

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.

Trade Wisely,

Doug

Pre-Configured Alerts

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We have made it so easy Just like the Easy Button LTA – Live Trading Alerts has a few new features like “Pre-Configured Alerts.” Live Trading Alerts has solved the problem of finding great chart patterns and setups.

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

US raises tariffs.

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tariffs

The US tariffs increased by 25% and we are still waiting the Chinese promised response as trade negotiations continue in Washington D. C.  Asian markets closed mixed but mostly higher overnight and European markets are also in rally mode this morning and green across the board.  US futures fluctuated substantially overnight but as we move toward the open hope of a deal continues to well up.

This week has created significant technical damage in the charts and its very difficult to know what to do as we wait for negotiations to conclude and the Chinese response to the tariff increase.  While the trade talks are front and center we also have to consider the rising tensions with North Korea and Iran as we consider the weekend risk. 

On the Calendar

calendar

We have a little rest on the Earnings Calendar with just short of 120 companies reporting today.  Notable reports include DS, ENB, JD, MAR & VIAB.

Acton Plan

As US/China negotiations continue in Washington D.C. the president did as he said and raised tariffs by 25%.  At this time China has yet to respond but promises that it will do so with equal tariffs on US products.  During the night futures were all over the map swing from up more than 100 points to down nearly 100 points as we neared the midnight deadline. 

This morning the futures are suggesting a mixed and modest open but that could easily change as earnings reports roll in and we get the latest reading on the CPI at 8:30 AM Eastern.  With the current technical damage and waiting for China’s response it’s very difficult to access the risk of holding or adding new position ahead of the weekend.  The trade war may be the least of our worries as issues in North Korea and Iran continue to escalate.  Plan your risk carefully and have a wonderful weekend everyone!.

Trade Wisely,

Doug

Rick’s Dark Chart

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✅ Today let’s look at my dark chart. The dark chart has three trend lines the 3-EMA (Magenta) and the T-Line (8-EMA with Green/Red Dots). As you can see 👀 four candles ago the dots went from green to red and the Magenta line (3-EMA) crossed below the T-Line (Red/Green Dots). Both the 3-EMA and the T-Line have also crossed below the 17-EMA (Yellow), all this with price action leading the way. The last meaningful time this happened was around October 5, 2018, and the SPY corrected about 20%. 👼 The trend is your friend, and this little 3-moving average trick might help you find a good friend. When all three moving averages are in the bear position, we might look for a weak or failing relief rally to short. And when all three moving averages are in the bull position, we might look for minor profit taking PBO’s to go long. Always looking at price action and support.

🎯 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

Recommended by Rick Saddler, Founder of Hit and Run Candlesticks

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Who Poked the Bear?

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✅ As expected price broke through the lower T-Band, now headed from the 50-SMA. The Bearish Engulf on 5/1/2019 poked the bear, and now for the past five days, the bear has, well, being a bear. After the Bearish Engulf, we saw follow-through then a failed high, followed by a lower low and yesterday has now made a lower low. Lower lows and lower highs suggest there are more sellers than buyers. The LTA Scanner 👉 has been alerting of the bear poking with the following alerts. (Bearish Engulf), (Bear High Yesterday or Today in T-Bands Now Below) (Bear T-Line Band Breakdown). And the (Bear 3×8 Trap). The VXX has been full of fear the past 3-days, no an RBB setup. The VXX has also alert on the LTA scanner as it broke through the T-Line and T-Line Bands. Todays Challenge will be to monitor today’s candle (price action) using the current trend and yesterdays candle as a backstop.

💲 The LTA Scanner has been alerting of the bear poking with the following alerts. (Bearish Engulf), (Bear High Yesterday or Today in T-Bands Now Below) (Bear T-Line Band Breakdown). And the (Bear 3×8 Trap). The VXX has been full of fear the past 3-days, no an RBB setup. The VXX has also alert on the LTA scanner as it broke through the T-Line and T-Line Bands. Todays Challenge will be to monitor today’s candle (price action) using the current trend and yesterdays candle as a backstop. 👉1-Will the 50-SMA act as support? If not $282.40 a probable test. 👉2-Will the buyers push price back over the T-Line and into the lower band. Or 👉3- Will price start to dry up and walk sideways? These are a few of the clues in the chart we will be watching.

✅ 💰 Here are a few long and short tickers I am adding to a watchlist for consideration only. Trades may or may not be taken. CVS, I, CNC, F, FSLR, RCII, NWL, KEYS, SEE, XLNX, PANW, W, MAS

Thanks To Our Moms

Free Giveaways – 😊Trading Room Password 😊LTA Scanner Alerts 😊Clinic/Workshops 😊60-Day Trials Registration required.👀

You are invited the Hit and Run Candlesticks and Right Way Options Trading Rooms!
Click this link: Registration for more details. Register and we will email you the login information. You will be able to come and go as you want for two days.
✅ Hit and Run Candlesticks Room Times; 8:10 am to market close
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Recommended by Rick Saddler, Founder of Hit and Run Candlesticks
You know your the best when other educations use your work.

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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

When it rains it pours!

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When it rains it pours

Trade war uncertainty, growing tensions with Iran and more than 400 companies reporting earnings; When it rains it pours!  Markets hate uncertainty and we sure have a pot full of it this week giving the indexes as well as traders and investors a case of indigestion trying to digest it all.  Asian market closed in the red across the board last night in reaction to the tariff fears and surprises in Chinese trade data.  European indexes are currently modestly lower across the board as well this morning.

The sharp selloff yesterday broke US index supports creating some significant technical damage in the charts.  Currently the US futures are suggesting a lower open of more than 100 Dow points but that has been fluctuating substantially and could be very different by market open as earnings reports roll in at a furious pace this morning.  Expect very high volatility with fast price action to challenge all traders.  Buckle up the bumpy ride continues down a very uncertain path.

On the Calendar

calendar

We have a huge day on the earnings calendar with more than 400 company’s reporting.  Some of the notable today include, DIS, ETSY, ACM, ALB, APLE, GOLD, CVNA, FUN, CTL, CHK, CXW, COTY, BREW, FOSL, FOXA, GDOT, HMC, TWNK, IAC, MCK, NYT, ODP, PAAS, PRGO, ROKU, SBRA, SRPT, STMP, SWCH, TM, VER, VIS & WEN.

Action Plan

Futures that were positive most of the night turned sharply lower at about 4 AM Eastern time this morning.  According to CNBC a diplomatic cable for Beijing arrived in the oval office late last Friday evening with edits that removed most the China concessions and destroyed months of negotiations.  The president’s Sunday decision raise tariffs on Friday was the result of this action.  Here is the link to the full story https://cnb.cx/304DBGc.

Iran has issued new threats suggesting they no longer want to live by the nuclear agreement they signed just a couple years ago raising tensions with the US.  As the old saying goes, When it rains it pours!  Toss in more than 400 earnings reports today and the market has more than enough fodder to continue with volatile price action.  Yesterday’s steep selloff may have put us in a short-term oversold condition but having broken through important supports more lows are certainly possible.  However, we should also be on the lookout for the possibility of a short covering relief rally so be careful not to chase the morning gap.

Trade Wisely,

Doug

Who Poked the Bear?

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✅ As expected price broke through the lower T-Band, now headed from the 50-SMA. The Bearish Engulf on 5/1/2019 poked the bear, and now for the past five days, the bear has, well, being a bear. After the Bearish Engulf, we saw follow-through then a failed high, followed by a lower low and yesterday has now made a lower low. Lower lows and lower highs suggest there are more sellers than buyers. The LTA Scanner 👉 has been alerting of the bear poking with the following alerts. (Bearish Engulf), (Bear High Yesterday or Today in T-Bands Now Below) (Bear T-Line Band Breakdown). And the (Bear 3×8 Trap). The VXX has been full of fear the past 3-days, no an RBB setup. The VXX has also alert on the LTA scanner as it broke through the T-Line and T-Line Bands. Todays Challenge will be to monitor today’s candle (price action) using the current trend and yesterdays candle as a backstop.

💲 The LTA Scanner has been alerting of the bear poking with the following alerts. (Bearish Engulf), (Bear High Yesterday or Today in T-Bands Now Below) (Bear T-Line Band Breakdown). And the (Bear 3×8 Trap). The VXX has been full of fear the past 3-days, no an RBB setup. The VXX has also alert on the LTA scanner as it broke through the T-Line and T-Line Bands. Todays Challenge will be to monitor today’s candle (price action) using the current trend and yesterdays candle as a backstop. 👉1-Will the 50-SMA act as support? If not $282.40 a probable test. 👉2-Will the buyers push price back over the T-Line and into the lower band. Or 👉3- Will price start to dry up and walk sideways? These are a few of the clues in the chart we will be watching.

✅ 💰 Here are a few long and short tickers I am adding to a watchlist for consideration only. Trades may or may not be taken. CVS, I, CNC, F, FSLR, RCII, NWL, KEYS, SEE, XLNX, PANW, W, MAS

Thanks To Our Moms

Free Giveaways – 😊Trading Room Password 😊LTA Scanner Trading 😊Clinic/Workshops 60-Day Trials Registration required.👀

You are invited the Hit and Run Candlesticks and Right Way Options Trading Rooms!
Click this link: Registration for more details. Register and we will email you the login information. You will be able to come and go as you want for two days.
✅ Hit and Run Candlesticks Room Times; 8:10 am to market close
✅ Right Way Options Room Times; 11: am Eastern to 1: oo pm Eastern
11:00 am Eastern to 1:00 pm Eastern

Recommended by Rick Saddler, Founder of Hit and Run Candlesticks
You know your the best when other educations use your work.

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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

Did The SPY Recover?

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What a nice recovery in the SPY yesterday opened at $289.24 and closed at $292.82, also closed back in the T-Line Bands. Yesterday’s price action tested and bounced off the March 8, trendline. Here are a few of my concerns, May 1 was a Bearish Engulf with follow-through, then a challenge that failed and then there’s yesterday’s new low. So have a high/ low – lower high/ and a lower low. A close below the May 3, trendline and below yesterday’s low could trigger a bit more selling. No doubt yesterday’s candle (price action) was impressive but, it’s the following days that need follow-through that makes us money. THE VXX chart did close over the T-Line Bands and is in trend position to create a bullish pattern. Let’s all exert a little caution!

💰Yesterday we added to our SBUX trade on the pullback and bought ORCL. Both of these trades came from the LTA Alert Scanner Alerts

✅ 💰 Here are eleven tickers I am adding to a watchlist for consideration only. Trades may or may not be taken. VXX, SQQQ, XBI, SPXS, OLLI, ABT, SPXS, MJ, OECL, SBUX, AIG, GS.

Register • Winners Monday and Tuesday

Thanks To Our Moms

You are invited the Hit and Run Candlesticks and Right Way Options Trading Rooms!
Click this link: Registration for more details. Register and we will email you the login information. You will be able to come and go as you want for two days.
✅ Hit and Run Candlesticks Room Times; 8:10 am to market close
✅ Right Way Options Room Times; 11: am Eastern to 1: oo pm Eastern
11:00 am Eastern to 1:00 pm Eastern

Recommended by Rick Saddler, Founder of Hit and Run Candlesticks
You know your the best when other educations use your work.

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