Thursday last week the SPY printed a Bearish Engulf and Friday we did see minor follow-through with Friday’s close below the halfway point of the Bearish engulf and a lower low. Price has closed below our blue tightening wedge lines both Thursday and Friday. On the bright side, the SPY chart trend still has a bullish attitude with price closing Friday above the T-Line Bands. If the sellers can print a lowe close today below the green T-Band $286-285, could see a test. A bullish close over $290.35 would suggest the bulls are not finished with there challenge of the $293.95 high. This is a pretty heavy week of earnings, chose wisely when taking on a position or holding a position. With price action still in the bullish side of the T-Bands, we will remain cautiously bullish and continue to trade with clarity and rules.
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On this last trading day of the week the market has a full
plate of data to chew through this morning.
Not only will this be the biggest day of the 2nd quarter earnings
season so far but we also have several potential market-moving reports on the economic
calendar before the open. Then, shortly
after the open, Attorney General Bar releases the Mueller Report that’s likely
to trigger a firestorm of political spin and media speculation.
As the market digests all the morning reports it will also need
to consider the risk of the 3-day weekend ahead. I will not be at all surprised if the volume
becomes very light and choppy as we head into the afternoon as traders head out
to take full advantage of this 3-day spring getaway. Our full plate will continue next week as
earnings season ramps up with more than 700 companies expected to report. Carefully pan your risk and have a great
weekend everyone!
On the Calendar
We have 75 companies reporting earnings on this last trading
day of the week due to the Good Friday Holiday.
Notable reports, ALLY, AXP, BBT, BX, CHKP, CFG, DHR, DOV, GPC, HON,
ISRG, KEY, MAN, PM, RF, RCI, SLB, SKX, SNA, STI, SYF, TSM, TRV, UN & UNP.
Action Plan
Futures appear a bit sluggish as we head into a big of data
before and a 3-day weekend. First we the
biggest day of earnings reports so far this season and a busy economic calendar
with Jobless Claims, Philly Fed Bus. Outlook and Retail Sale all coming out at
8:30 AM Eastern. If that were not enough,
Attorney General Bar will release the Mueller Report this morning that is likely
to trigger a firestorm of political spin.
Asian markets closed in the red across the board last night and European
are currently showing mixed results after a disappointing manufacturing report.
Although US Futures have rallied from overnight lows they
are still pointing to slightly bearish open as I write the morning note. Don’t be too surprised to price action become
light and choppy after the morning hubbub as traders and investors head out
early to take full advantage of the 3-day weekend. With the market continuing to struggle against
the all-time resistance levels consider the risk carefully you carry into the
long weekend. I wish you all a great day
of trading and a wonderful Good Friday holiday weekend!
The SPY closed yesterday with a Bearish Engulf and closed below our narrowing pattern (I talked about the narrowing pattern in yesterdays morning blog) When we see a candle signal or pattern has printed it is important to wait for confirmation before making a huge commitment. A close below $289.40 would suggest about $287.30 may be the next pit stop. Of course, if the Bulls find a spark to run with a close over yesterdays high would surely see a challenge of the $293.95 area. Remember tomorrow is Good Friday and the market is closed, we will be treating today as our Friday and pulling a few trades off the table. Having the right tools to do the job is important, we all know that! What would you think if you changed tires for a living and didn’t have a jack, having the right tools is important for success.
Posted 4/17/2019 You can see from the SPY chart (above) the trend channel is narrowing as price moves closer to the SPY all-time high. As price narrows, I will be watching for a decisive break one way or another (Bullish or Bearish). Usually, when price narrows and builds pressure, a move is in the works.
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Drive it for 30-days, your quality of charts will increase. I never leave home without it.You know your the best when other educations use your work.Rick’s Favorite Charting Software
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I think cautiously optimistic best describes the current
market condition and investor sentiment even though yesterday’s pop and drop price
action may have been bit disappointing. The
bullish trends in the DIA, SPY and QQQ show the overall optimism of an all-time
market high resistance test. However,
the price action is showing considerable caution as we approach high resistance
levels as investors wonder what comes next?
Can earnings continue to support current price evaluations or not?
On this 4th day of 2nd quarter earnings
results thus far are somewhat mixed so investors are is hoping clues will emerge
today that support current trends. So
with the overall market cautiously optimistic we must stay with the trend but keep
a close eye on price action as we approach resistance highs. Clearly the bulls want new market highs but the
big question is earnings continue to support these lofty levels?
On the Calendar
On the Earnings Calendar we have more than 70 companies reporting
on this the 4th day of 2nd quarter earnings. Notable reports today include, PIR, ABT, AA,
BK, BHP, CCI, ETFC, KSU, LVS, MS, PEP & USB.
Action Plan
As I write this, US Futures are modestly bullish anticipating
a fresh round of earnings and last nights report showing China’s economic growth
was better than expected. After the bell
yesterday NFLX disappointed investors but even after projecting weak forward
guidance the price bounced back substantial for early low’s. IBM is also lower this morning in reaction to
earnings that disappointed. Asian
markets closed mixed but modestly higher overall and currently European markets
show modest gains but also showing slightly mixed results.
While yesterday’s pop and drop pattern was disappointing there
was no technical damage to the index charts that continue to remain bullish. With a large group of notable earnings this
morning anything is possible by the time the market opens today. Although holding trends in the DIA, SPY and
QQQ and investors appear very cautious as we approach all-time high resistance
levels. If we do ultimately gap higher
at the open, we must once again exercise discipline waiting to see if buyers step
in to support the gap. I’m confident the
markets will reach out to test all-time highs but the big question is can they
hold them once there?
Another higher low for the SPY, the high had trouble, but the low was higher. Yesterday (Tuesday) was the 12th day above the T-Line Band. The SPY chart does look like it’s determined to challenge the $293.934 September high. Seriously the wall of worry is starting to get to traders, let’s keep it simple: Stay with the charts that are trending and the trend makes sense. Use trend lines and price action (Candlesticks) to determine if the trade is still in your favor. Become a base hitter by pulling off profits as price moves in your direction.
You can see from the SPY chart (above) the trend channel is narrowing as price moves closer to the SPY all-time high. As price narrows, I will be watching for a decisive break one way or another (Bullish or Bearish). Usually, when price narrows and builds pressure, a move is in the works.
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Drive it for 30-days, your quality of charts will increase. I never leave home without it.You know your the best when other educations use your work.Rick’s Favorite Charting Software
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
A fresh round of earnings reports that include some big tech
has inspired the futures markets sharply higher this morning and has the QQQ
reaching out of an all-time high test. If
this bullishness holds throughout the morning the Dow futures suggest a gap up
of more than 100 points after barely having the energy to move yesterday. Asian market closed bullish overnight and
European markets are mixed but mostly higher.
Bullish trends are intact for the DIA, SPY and QQQ but the IWM is questionable as it struggles with a lower resistance level. Remember to respect the resistance above a be careful to not chase into the morning gap. Wait for proof that buyers will support the gap as the indexes reach out toward all-time high resistance levels. Personally it would be very disappointing after such an impressive 3-month rally if we don’t at least test the all-time highs. The bulls want that headline but let’s not forget there could be bears up there ready to defend so plan your risk accordingly. It’s great to be reaching out but the next step is the ability to hold on to the new elevation and that is still in question.
On the Calendar
We have over 60 companies reporting today with the first big
tech earnings beginning. Some of the
more notable reports today are, BAC, BLK, CMA, CSX, JNJ, UNC, UNH, WIT, NFLX
& IBM.
Action Plan
After a disappointing price action day where both bull and
bears lacked inspiration futures are bullish ahead of a fresh crop of earnings that
include some big tech reports. During
the night Asian stocks advanced closing higher across the board. European markets are currently mixed but mostly
higher as cautious traders wait for US earnings data. So far this morning JNJ has reported an
earnings beat and is indicated higher and although BAC reported better than
expected the stock is currently indicating a flat to lower open. After the bell today we will hear from IBM
and NFLX.
Technically speaking the bullish trends continue in the DIA,
SPY and QQQ. We are so close to testing
the all-time highs in the QQQ and the SPY it would be a surprise to me if the
bulls don’t find a way to reach out very shortly. Who knows today might be the day! Currently the Dow futures suggest a gap up
open of more than 100 points and if the current bullishness continues through
the open the QQQ will be very close to breaking out. As bullish as it now appears make sure you
respect resistance an avoid chasing the open gap. Let’s make sure buyers are willing to step up
in support.
More companies are set to report today, be sure to check your holdings to be sure your comfortable holding a position through earnings. No real decisive move on the SPY other than the buyers did not give up control. Yesterday was another bullish day above the Green T-Line Band, and I don’t see anything in the pre-market that will change the bullish attitude of price action today. The wall of worry continues to worry some; simply follow the chart. A friend asked me yesterday, “is the market going to crash again?” my answer is the same I say to our readers. “Yes I am sure it will someday, but you can’t predict when or live in fear.” Being a short term swing trader and having a trading plan that includes base hits is a solid plan for most traders. A base hit can be anything from $50.00 to $5000.00 or more. It depends on your portfolio size and the amount of stock you hold. As an example, I currently have five contracts of TGT with a $325.00 profit, would that be a base hit or a home run? Different answer for different traders.
✅ Trade-Ideas for consideration: TGT, COST, < BBY, MELI, ZAYO, PCG, SYMC, DLTR. Let the LTA Scanner do you work for you Tryit for 30-days
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
It’s tax day 2019 but that fact has not dulled the bullish
market sentiment with the QQQ and SPY within striking distance of all-time
highs. Asian markets closed mixed and subdued
overnight but European markets are modestly upbeat this morning. As I write this US futures are pointing to a
modestly bullish open while waiting for the fireworks of big bank earnings
reports.
Although within striking distance of all-time highs remember
that means there is price resistance above that must be dealt with and defeated. The DIA still has more than a 400 point hill
to climb to test the all-time highs and that could be challenging to do with challenges
that BA continues to face. Let’s also
not forget the small caps that are lagging way behind at the moment. The bulls are without a doubt currently
control but they do face challenges to consider as you plan your risk for the
week ahead.
On the Calendar
We have more than 60 companies reporting earnings today. Notable reports include C, GS & SCHW.
Action Plan
After Friday’s strong market performance on the back of big
bank earnings the QQQ and SPY are within striking distance of all-time highs. With another round of big bank earnings
reports this morning can the bullishness continue. At this hour futures are pointing to a modest
open but that will likely change for better or worse as soon as earnings begin
to roll out. Asian markets closed mixed
but mostly lower overnight but European markets are currently modestly higher
citing optimism over US-China trade talks.
This weekend the President once again public chastised the
FOMC stating the market would be a lot higher if the Fed would stop worrying about
nonexistent inflation. I suspect that
kind of pressure will do little to dissuade Mr. Powell and the other voting committee
members. Remember earnings season and
very volatile with large gap up or gap down market opens. Don’t get caught up in the hype and drama and
make the mistake of chasing the gap. Allow
the market to open, watch the price action, making sure buyers or sellers
support the gap before making entry decisions.
Is the SPY determined to hit $293.94 or what? The buyers seem to be on a mission as you can clearly see in the SPY chart to challenge the SPY all-time high and the sellers seem ok with this as well. Friday ended the day with the 10th day in a row above the T-Line and the T-Line High Line. Friday’s candle does open the door for a possible Hangman but let’s not predict, let’s wait for the candle to form and confirm. The trend is still bullish, and price action still suggests the bulls are in control. The T-Line Bands (on the chart they are the GREEN, BLUE and RED lines) have proved to be a fantastic tool for trend, great trading patterns, and profits. The LTA Live Trading Alert Scanner has this scan built into it, and I love it! If you would like to test drive the LTA Scanner for a month and have me (Rick Saddler) personally work with you to set it up click this link and let’s plan a date. Test LTA Drive Here
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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
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
