Most of the time I approach the market with a directional assumption, but right now I feel much more comfortable sitting on the fence. After a run that produced the best January market
performance n 32 years, I simply feels right to be a little cautious. Having produced substantial profits in the
bull run, I went into the weekend holding only a few long positions and a
couple of conservative hedge trades to
reduce my long risk.
Let me be very clear that I am not at all bearish. There is nothing in the price action that
suggests bearishness, and as a matter of fact, earnings could easily
continue to inspire the bulls higher. I
do believe the bull run is a little stretched however
so it would be wise to be on the lookout for clues of a pullback or at a minimum
a consolidation. My current watchlist chalked
full of very good looking charts, but as of this morning I plan to take slow with
more of a wait and see approach before adding new risk.
On the Calendar
On the Earnings Calendar,
we have 80 companies reporting results today.
Notable earnings today: AVB, CLX, GILD, GOOGL, LM, LEG, ON, STX &
SYY.
Action Plan
A rather quiet market news weekend as the nation focused mostly on the Super Bowl and the resulting parties. Although we are about at the mid-point of earnings season, we have a very big week ahead of us with GOOGL reporting after the bell today. As I write this Futures are currently flat but keep in mind that CLX reports before the open among other potential market move reports, so anything is possible.
I went into the weekend light in my account wanting to
protect capital and thinking a rest or even a market
pullback could begin at any time. As of this morning,
I’m still comfortable with that decision. However,
I want to be clear that I’m not at all bearish just cautious after the best January
market performance in 32 years. Earnings could easily continue to inspire the bulls propelling price even higher, but I think just a single stumble could also trigger
some profit-taking. While I still have
several long positions, I also have also
added some positions to hedge to reduce my long risk. Although I’m choosing caution, there are a lot of very good looking charts on my watchlist
ready to become active trades depending upon overall price action.
The battle between Bullish and Bearish is up front and center lately. On Friday the SPY daily chart closed with a Doji in the thick of resistance, the trend remains bullish with price leading the T-Line and the T-Line leading the 34-EMA. The 20-SMA and 34-EMA have risen above the 50-SMA. Friday’s price action felt the pressure of the bearish downtrend line and the 200-SMA is trying to intimidate price. The area surrounding the 200-SMA ($270.30 and $277.65) will likely be a challenge for price action. Price is currently at our Dotted Duece line, success over the Dotted Duece should result in a challenge of the 200-SMA. Both areas will take the full power of the Bull, keep a watchful eye out for that sneaky little Bear. We are concerned about the T2122 levels in TC2000 pegged above 80 for so long. These high levels are concerning and a warning clue. BUT price and trend is king, and as long as price action remains bullish over the RED/GREEN Trendicator, we will remain cautiously bullish. The CBOE Market Volatility Index (VIX) The CBOE Market Volatility Index (VIX) price action is showing no signs of fear with price below the T-Line and the T-Line below the Re/Green line.
From out trade-idea list: NBR, KKR, WDC, MU, NTAP, NYL, LVS, HAL will be talked about in our pre-market workshop. Past performance does not guarantee future results.
DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
There can be no doubt that the bulls did an extraordinary job in January. As a matter of
fact, the news sited it’s the best
January since 1987. And the bull
continue this amazing effort pushing us even
higher? Yes, however, the odds of pullback
beginning soon continue to mount even though there is no evidence of such in the price action.
Continued good earnings and a trade deal between the US and China would most certainly continue to provide energy for the bulls to continue running. However, I prefer to be more of a profit taker today than a buyer of new risk as we head into the weekend. Outstanding profits have been made over the last three weeks an I prefer to tuck them safely away in my account before the weekend rather than risk them to the unknown. What will you do?
On the Calendar
On the Earnings Calendar,
we get a little break today with only 66 companies reporting earnings. Notable earnings include CVX, CI, DB, D, XOM, MRK & WY.
Action Plan
Yesterday we had a bit of split decision with the Dow finishing down 15 points and the SP-500 closing
up 23 points. The NASDAQ had the best
results reacting to earnings results pushing 98 points higher. As I write this,
the Futures currently point to a mixed open, but
a lot could change as earnings roll out and the big Unemployment Situation number reveal at 8:30 AM Eastern.
According to the news,
this has been the strongest January rally
since 1987. The bulls continue to climb the wall of worry charging forward with seemingly
boundless energy. No, complaints here because
the profits have been great! However, what goes up must certainly come down eventually so stay focused
on the price action clues. As we roll
into the weekend, I plan to be more of a profit-taker rather than a buyer. Could the market go higher? The answer is a definite, YES, but it’s my opinion that the odds are growing for a pullback. Thus I prefer to have the majority
of my capital tucked safely in my account before the weekend.
What fantastic day yesterday, heck what a fantastic month January has been, check the Thursday, January 31, end of day blog post. You can see what a few our members did. If your We are kicking February off with a 30% discount on our membership. I will also be offering 1-hour free coaching for the first ten that takes advantage of the 30% discount!
The SPY closed higher yesterday at $269.93 on the HRC Dotted Deuce Line. The follow-through yesterday extended the bullish J-Hook continuation as well. As of yesterdays close the bulls have ignored and resistance the bears have tried to put up. In our recent blogs and the trading room, I have stated we are cautiously bullish. Yesterday we practiced Base Hits and closed all the good profitable positions and now getting more interested in adding a PUT or two. The TC2000 T2122 chart is pegged at 98.56, I for one have never seen the T2122 this high for this long. On the Bull side, price continues to ride the T-Line, and the T-Line is riding the Red/Green Trendicator Line. For the Bears, the resistance is in please, now it’s up to the bulls to what they are going to do with that information.
The CBOE Market Volatility Index (VIX) Closed at another low yesterday on the 200-SMA. It seems there is no fear in this market, at least for now.
DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
Check out what a few members posted in the trading room today! It’s so fun pulling profits from the market. You gotta love the base hits.
(09:47 am) Malcolm M: I held my AMD, 16% today so far. (09:47 am) Aaron the red baron: 76% on AMD, can I get 100% today… (09:48 am) kirk p: HRC team, Just wanted to say thank you for all you do. My education has skyrocketed since I joined last May. You are appreciated! (09:49 am) Malcolm M: Ditto Kirk.. both my Mental Equity has appreciated and my Financial Equity has grown. (09:50 am) Ian Smith: Kirk I second that. Only been here for a few weeks. Not trading yet, but feeling like this is the best investment I’ve made for a long time (09:50 am) Malcolm M: TWLO, 44min, up 20.25%, no sell signal yet… current trade is only 3 spot but up $1,121 (09:52 am) Lowell W: various JD and VLO calls GTC sold at options mkt open for +20% and +25%. Making one week’s target is a nice start to the day. (09:53 am) Malcolm M: TWLO: took 1/3 off, less than half an hour, $4.58, 24.83%, continue to hold 2 contracts. Stop moved to BE. (09:57 am) Aaron the red baron: Sold my two positions in AMD one for 83%, the other for 50%…..I’m outta here, that will do for the week (09:57 am) Claude Langley: out remainder AMD + 50% (09:58 am) Doug Campbell: Closing JD for 55% (10:02 am) Lowell W: Just closed a FB $140 call… made a 100%’er, may have been my first one. Today is over 3x my week’s goal. (10:06 am) Aaron the red baron: took 25% out of JD
(10:07 am) Malcolm M: 10% today in VIPS, 16% SQ, 6.7% ROKU, 23.5% AMD, 16% NVDA, 27% in TWLO… its a Very good day but I haven’t had my second cuppa yet! Not seeing any sell signals in /ES or /NQ (10:23 am) jerry g: took 58% on GLD calls (10:23 am) Elizabeth Lamond: sold Roku 23% done for the week too scary up there 😉 (10:23 am) Bill M.: Sold my GE for 87% (10:25 am) Linda J: Out of GE at 86%. (10:26 am) Rick Saddler: Closed GE 69% (10:41 am) Flash .: Sold some SQ @ 6% (10:47 am) Craig Kleinbart: just took some profits on FNGU
(10:48 am) Malcolm M: SQ, taking profits. $2.69, 31.64%, one contract, still holding majority. (10:51 am) Flash .: Malcolm, just call me chicken (10:53 am) Flash .: JNJ 14% (11:24 am) Rick Saddler: Closed AMD 50.68%
DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
Good earnings and a wait and see FOMC inspired a bullish surge
propelling the DOW upward, testing 25,000, a key psychological level for the
index. The question now is will it hold
as resistance or can the bull continue to defy gravity,
fueled by earnings results and momentum.
Today we have over 140 companies reporting
and big economic reports for the market to decipher.
Asian markets closed higher across the board last night reacting
to the rate decision by the FOMC. European
markets are also bullish this morning, but US futures
seem to be taking more of a wait and see approach showing the possibility of a
flat to a mixed open as I write this. Currently,
price action in the charts shows no sign of profit-taking, but after such a steep
rally it should be no surprise if a pullback begins at any time. This has been a fantastic market run so
remember to take some profits and have a plan if the market happens to shift south.
On the Calendar
Today on the Earnings Calendar we have 142 companies
reporting earnings. Some are the notable
are AMZN, MO, COP, DECK, DWDP, GE, HSY, MCK, SHW, TSCO & VLO.
Action Plan
An outstanding day yesterday as earnings and the FOMC
inspire the bull to rally the Dow 434.90 points higher at the close. Both AAPL and MSFT, tech bellwethers, beat on
the top line by a penny this week with
one moving higher and the other lower.
Today after the bell we have the retail giant AMZN reporting with a slew
of other reports to keep traders guessing and on their toes as to what happens
next.
The question now in my mind after such a huge run up the
last few weeks how much longer can this continue? The T2122 indicator seems stretched to its limit suggesting we should be cautious that
a pullback could begin at any time. However, earnings and shear bullish momentum can
continue to carry the market higher as long a nothing stumbles. The Dow is once again testing 25,000 which
has served as a key psychological level for the market. The question now is will it serve as
resistance or can it break-through and once again serve as support. The current price action shows no clues of
profit-taking just yet so stay long, but,
I think it would be wise to prepare for the possibility.
The continuation pattern held together in the SPY with the help of a few good earnings and Mr. Powell (Fed Report). The TC200O Red/Green Trendicator has done a great job keeping us on the bullish side of the SPY. The SPY has been trending up, and on January 22, price pulled back, for the following six days price walked along the Green Dot trendline forming a continuation pattern. Yesterday the buyers/bulls broke out and closed above the recent highs. The next big warning area will be the start of $271.00. Above $271.00 also gets price action into the HRC Dotted Duece line and the 200-SMA moving averages. I am starting to see a few signs that the market is a bit stretched, moving higher into resistant levels and the T2122 chart in TC2000 flashing warning. As long as price action remains bullish, we will remain cautiously bullish. The chart below illustrates the Yellow downtrend line the bulls have beat, the yellow horizontal line pointing out more resistance and the Red/Green Trendicator bull trend. The short magenta line is pointing out the continuation pattern breakout. The most important information the next day or 2 is whether or not we get bullish follow through. Another piece of useful information to help navigate the market is that the DJ-30 is testing the $25,000 area and the 200-SMA, watch price action for clues to direction.
The CBOE Market Volatility Index (VIX) closed back below the T-Line yesterday, below the Red/Green Trendicator showing lack of fear. Note price is testing the 200-SMA area which can always spark buying.
The following tickers are being added to our trade list: PANW, AAPL TWLO, PG, NKE, SWKS, WLL, DVN, NBR. Past performance does not guarantee future results. Learn how to trade before you trade.
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DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
In this 1-hour video,“The Power of Base Hits” Rick talks about how profiting into strength and taking base hits can make a huge difference in your bottom line and monthly income. Rick also shares what some of his trading edges are. Such as • Profiting into strength • Same basic strategies • Real-Time Alerts • Weakness/Strength • Keep it simple • Embrace losses. He will also share how he looks at charts with entries, swing targets, and stops. Don’t forget Subsribe to our YouTube channel https://bit.ly/2q2N3ZQ
The charts in this video are for educational purposes only. No communication from Hit and Run Candlestick Inc should be considered as financial or trading advice. Past performance does not guarantee future results.
Private 2-hour coaching with Rick Saddler only $354.00 for non-members and $300.00 for members. Learn More
The “Road to Wealth Coaching” – Work with Rick Saddler daily and learn how he plans to double his trading account this year 2019. Learn More
DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
The big Apple (APPL) has reported, not as bad as thought; pre-market is up. Now we take a seat and patiently wait for the 2:00 pm bus. The FOMC decision Hawk or Dove will be out at 2:00 pm today, rate hikes, up or up more and when. Knowing this information could help the market get off its fanny and make a move one way or the other. Yesterday the SPY closed with another indecision Doji, the 5hth one in the past five days. “Think the market is waiting for something”? The chart patterns and price action remains bullish as price holds over the 50-SMA and slides sideways. The price action is trapped between a bearish downtrend line and the 200-SMA and a bullish uptrend line and the 50-SMA. Unfortunately, neither the buyers or sellers have had enough juice to move price up or down. So we patiently wait sitting along side the road for the bull or bear bus to show up. The CBOE Market Volatility Index (VIX) closed above the T-Line yesterday, but the Red/Green Trendicator is still red on the daily chart. The VIX- would have to break out over the Trendicator to consider fear. There is plenty of reasons to remain concerned or even be sitting out of this market right now. I do remain cautiously bullish.
The following tickers are being added to our trade list: WHR, NNBR, APA, DVN, SCHW, GS, HD, NKE, JD. Past performance does not guarantee future results. Learn how to trade before you trade.
Private 2-hour coaching with Rick Saddler only $354.00 for non-members and $300.00 for members. Learn More
The “Road to Wealth Coaching” – Work with Rick Saddler daily and learn how he plans to double his trading account this year 2019. Learn More
DISCLAIMER: Investing/ Trading involves significant financial risk and is not suitable for everyone. No communication from us should be considered as financial or trading advice. All information provided by it and Run Candlesticks Inc, its affiliates or representatives is intended for educational purposes only. You are advised to test any new approach before implementing it. Past performance does not guarantee future results. Terms of Service
Earnings reports, FOMC rate decision and the US/Trade negotiation tensions
as talks resume today offer the market a volatility trifecta to navigate. Both Asian and European markets show mixed results
ahead of US/China trade talks, but the US
Futures are bullish across the board on the heels
of AAPL earnings. After the bell today MSFT
will weigh its earnings results along with several other notable reports to keep
traders on their toes.
Fast price action and volatility can be expected at the open
today as the market responds to earnings and economic news but don’t be
surprised if it slows down and becomes choppy as we wait for the Fed decision
at 2 PM. As
price tests, resistance levels keep an eye out for whipsaws and the possibility
of reversal patterns. There is so much
on the markets plate today anything is possible so set aside bias and focus on
the price action. Buckle up; it could be
a bumpy ride!
On the Calendar
On the Earnings Calendar, we have 137 companies reporting with
notable reports from MCD, BABA, T, FB, MSFT, PYPL, QCOM, TSLA, WYNN and many
more.
Action Plan
AAPL squeaked past its
earnings report betting lowered estimates by a single penny. The good news is that was enough to please investors lifting the stock
more than $8 per share in after-hours
trading. We have another big day of
earnings with the tech bellwether, MSFT reporting after the bell today. Also this afternoon at 2 PM Eastern
we have the FOMC rate decision weighing
the mind of the market. If that’s not
enough to complicate the price action toss in the tensions of the US/China
Trade negotiations that resume today.
Currently, US Futures
are bullish across the board which is interesting due to Asian stocks closing mixed but mostly lower and
European markets also currently mixed. I would expect some fast price action this
morning as the market reacts to earnings and early economic reports such as the
ADP and GDP. However, don’t be surprised
if the market quiets down and price
action becomes choppy as we wait for the Fed decision and the chairman’s press conference. The current market condition is more suited
to day traders rather than swing & and position traders with so much market-moving news.
