Trading Rules – Planning For Success
In this E-Learning session we cover the basic rules that I use to trade stock and several options strategies.
SPY forming a Bullish J-Hook
The SPY is forming a Bullish J-Hook pattern off what could be a reversal bottom. With bullish follow-through from the close on Friday. Price action will start to feel resistance in the $258.00 area or the 34-EMA. Any close above $248.40 we will consider Bullish, and a challenge of $258.00 – $259.00 is probable.
VIX–X Chart – Closed last week with a Shooting Star candle signal giving the bullish in the broader market a chance to recoup bullish profits. With selling follow through the 50-SMA could be in for a test.
VIX–X Chart – Closed last week with a Shooting Star candle signal giving the bullish in the broader market a chance to recoup bullish profits. With selling follow through the 50-SMA could be in for a test.
Right Way Options Trading Room
Right Way Options Room Update – The RWO trading room is now open all day to share ideas and watchlist suggestions. Watch Doug as he prepares and explains his trades. Learn More about Right Way Options – Click Here
Top Gun Day Trading Room
Day Trading Room – B
- 1 x TSLA Put trade for +$125
- 2 x QLD trades for +65
- 2 x SPXS trades for $114
- Learn More about Top Gun Day Trading – Click Here
Hit and Run Candlesticks Trading Room
The Road to Wealth • Inner Circle – January of 2018, Rick decided to open a small $5,000.00 trading account to show small and large account traders can make a difference in the financial future.
For 2019 Rick plans on taking the now $23,567.00 account to $50,000.00 before December 31, 2019. Remember he already has increased the account $5,000.00 to $23,567.00 or 362% in 2018.
From HRC Trading Desk
Dear trader, trading on stock pics alone, even with entries, targets and stops will likely not work out so good for you. You must have the proper discipline and trading education. Stocks we add to our trade watch-list does not mean they are a trade today.
You might not be ready to trade if:
- All you want is a stock pic
- You think every trade should work out
- If you have to ask; is this a long or a short
- If you think you have to stare at a computer all day
The following tickers are setting up on our trade list: NFLX, JD, LVS, PYPL, MRK, MO, EBAY, GE, PG. Past performance does not guarantee future results. Learn how to trade before you trade.
For 2019 Rick plans on taking the now $23,567.00account to $50,000.00 before December 31, 2019. Remember he already has increased the account $5,000.00 to $23,567.00 or 362% in 2018. Would you like to learn from someone that truly makes money, not just one hit wonders and backs it up with his account statement!
Trading Services We Offer
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 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
Shutdown Continues
Uncertainty continues as the government shutdown begins a new week with little to no progress. As a matter of fact, the President seemed only to reinforce his position with a flurry of border security tweets this weekend. On the positive side, there seems to be a renewed energy between the US and China to resolve the trade war. Let’s hope for a positive outcome soon!
Futures are currently pointing to a flat open which is something we’ve not seen for a long time. A nice change in my humble opinion. A quiet consolidation would be nice, but I suspect the market will remain very sensitive to political news and volatility remains high. After a 750 point rally on Friday, don’t rule out the possibility of some profit-taking. I would also not be that surprised to see a test of the overnight high in the futures. Stay flexible and prepared for quick reversals on political news and as always stay focused on price.
On the Calendar
On the Earnings Calendar, there are 12 companies reporting earnings today, but there are none particularly notable.
Action Plan
US futures opened trading very positive and at one point suggested a bullish move of more than 150 points. However, having sold off during the evening, we could experience some we’ve not seen for a long time, a flat open to the market. I must say a nice change if that does occur! US / China trade negotiations seem on track this morning, and both sides appear to more inclined to complete the process. Unfortunately, there is still on progress on the government shutdown and the President seemed to dig in his heels with a flurry of tweets on border security this weekend.
Although there is still significant political uncertainty, the market on Friday seemed to issue a vote of confidence rallying more than 750 points. I would expect the market to stay very sensitive to political news with fast moves that could easily reverse direction intraday. Don’t rule out the possibility of some profit taking today nor the possibility of testing the overnight futures highs. The current market condition continues to favor day trading but a flat open today could finally signal that the market is trying to settle its nerves. As always stay focused on price action and remain flexible.
Trade wisely,
Doug
VIX Closed With A Doji
The COBE Market Volatility Index “VIX” closed with a Doji on the 34-EMA yesterday and with the previous day’s candle, we have a Bearish Doji Continuation Pattern. With a close below the 34-SMA and follow-through price action may want to test the $20.40 area or the 34-EMA on the 3-day chart.
On the daily SPY chart, you can see the relief rally from the Bullish Morning Start in late December, a nice rally until a little resistance. As of yesterdays close the last four candles have been a bullish pullback working on a “Lower Low.”
A close today or the very near future over $252.75 would set up a “Low/High-Higher Low/ Higher High chart pattern, also called a continuation pattern. Of Course, a close below $245.25 would suggest the sellers are stronger than the buyers.
Right Way Options Trading Room
Right Way Options Room Update – The RWO trading room is now open all day to share ideas and watchlist suggestions. Watch Doug as he prepares and explains his trades. Learn More about Right Way Options – Click Here
Testimonial From Rick Saddler Fonder of Hit and Run Candlesticks – After 30-years of stock swing trading I now swing trade Simple Directional Options, and my 2018 trading account is up over 360%. Thank
Top Gun Day Trading Room
Day Trading Room Update – The Top Gun Trading room began the new year with some decent trades up over $300 while risking only $100 per trade. Our latest trades include:
- 1 x TSLA Put trade for +$125
- 2 x QLD trades for +65
- 2 x SPXS trades for $114
- Learn More about Top Gun Day Trading – Click Here
Hit and Run Candlesticks Trading Room
The Road to Wealth • Inner Circle – January of 2018, Rick decided to open a small $5,000.00 trading account to show small and large account traders can make a difference in the financial future.
For 2019 Rick plans on taking the now $23,567.00 account to $50,000.00 before December 31, 2019. Remember he already has increased the account $5,000.00 to $23,567.00 or 362% in 2018.
If you are interested in working with Rick Saddler and the Inner Circle click the button below and ask for more information. – Learn More Here
For 2019 Rick plans on taking the now $23,567.00account to $50,000.00 before December 31, 2019. Remember he already has increased the account $5,000.00 to $23,567.00 or 362% in 2018. Would you like to learn from someone that truly makes money, not just one hit wonders and backs it up with his account statement!
Trading Services We Offer
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 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
Another 300-point reversal.
Another day and another 300-point reversal gap overnight, challenging even the most experienced traders. I wish I could say the turmoil will be over soon, but there is no way to know how long it will take for the political drama to subside. With the Employment Situation report and the Jerome Powell comments later this morning I would not rule out the possibility of more intraday whipsaws.
With such extreme intraday moves quick day traders continue to have the upper hand with swing and position traders have little to no edge. Holding positions overnight is risky business let alone holding over a weekend. Consider that risk as you plan how to handle the weekend ahead.
On the Calendar
We have just nine companies reporting earnings today.
Action Plan
The market currently seems to love 300 point gaps this week. Wednesday more than a 300 point gap down a whipsaw back up. Yesterday day more than a 300 point gap done and three whipsaws during the day covering more than 300 points. Now, this morning US Futures are pointing to a 300 point gap up though we are still waiting for the government funding to reopen. The rebound this morning is focused on US-China trade talks improving. With the big Employment Situation report coming out an hour before the market open and the Jerome Powell speaking at 10:15 we could certainly see more whipsaws today.
As always after the morning gap wait to see if buyer’s support the gap and plan for fast price action as extreme price volatility to continue. Once again the current market condition favors quick day trading due to the big intraday swings. The market remains very sensitive to political news as well so plan your risk going into the weekend very carefully.
Trade Wisely,
Doug
Market Opens Lower on AAPL News
Market Opens Lower on AAPL news, The news from AAPL suggesting a world slow down which is causing the futures to find lower ground. At the moment 6:25 am Central the SPY is holding above yesterdays low, by the end of the day $242.20 could get tested. And a Bullish close over $252.55 could lead us to the 34-EMA. With the gov shut down and the trade war, the market will remain a complete mess. We have found short-term swing trading from the hour chart brings better-looking charts and cleaner profits.
Pre-market the VXX chart is not showing as much bullishness as I would have thought with price hanging below the 15-min 200-SMA. While the VXX has shown profit-taking over the past few days, it does remain a bullish chart pattern. The profit taking has not caught the 20-SMA, and it may take a day or two for this to happen.
Right Way Options Trading Room
Right Way Options Room Update – The RWO trading room is now open all day to share ideas and watchlist suggestions. Watch Doug as he prepares and explains his trades. Learn More about Right Way Options – Click Here
Testimonial From Rick Saddler Fonder of Hit and Run Candlesticks – After 30-years of stock swing trading I now swing trade Simple Directional Options, and my 2018 trading account is up over 360%. Thank
Top Gun Day Trading Room
Day Trading Room Update – The Top Gun Trading room began the new year with some decent trades up over $300 while risking only $100 per trade. Our latest trades include:
- 1 x TSLA Put trade for +$125
- 2 x QLD trades for +65
- 2 x SPXS trades for $114
- Learn More about Top Gun Day Trading – Click Here
Hit and Run Candlesticks Trading Room
The Road to Wealth • Inner Circle – For 2019 Rick plans on taking the now $23,567.00 account to $50,000.00 before December 31, 2019. Remember he already has increased the account from $5,000.00 to $23,567.00 or 362% in 2018. If you would like to learn from someone that truly makes money not just one hit wonders and backs it up with his account statement. – Learn More Here
SWN, CLVS, LVS, EBAY, MRO, DLTR, VLO, SBUX, PG, LLY, MRK are on our watchlist for a possible trade today or within the next few days. Past performance does not guarantee future results. Learn how to trade before you trade.
For 2019 Rick plans on taking the now $23,567.00account to $50,000.00 before December 31, 2019. Remember he already has increased the account $5,000.00 to $23,567.00 or 362% in 2018. Would you like to learn from someone that truly makes money, not just one hit wonders and backs it up with his account statement!
Trading Services We Offer
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 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
AAPL projections disappoint.
Mostly blaming the trade war and slowing sales in China, Tim Cook lowers the revenue projections for AAPL for the first time since the introduction of the iPhone in 2007. Because of the companies heavy weighting in the DIA, SPY, and QQQ we will see sharp declines at the open as investors reprice the tech giant’s value.
Asian markets closed down across the board last night, and European indexes are also lower this morning. Selling pressure in the US Futures is pointing to a gap down of more than 300 Dow points at the open. I think the big question for the day is will the AAPL disappointment spill over into other companies triggering more selling and fear. Expect very fast price action at the open that will challenge even the most experienced day traders. Buckle up it could be a very rough day.
On the Calendar
On the Earnings Calendar, we have 14 companies reporting today.
Action Plan
After gaping down more than 300 points yesterday, positive comments from the President on trade negotiations embolden the bulls recovering to an 18 point Dow gain. This morning the market faces a gap down that will be much harder to recover from and may spawn additional selling in the tech sector. Yesterday after the close AAPL reported disappointing revenue guidance sending the stock sharply lower. With slowing iPhone sales this is the first time AAPL has lowered revenue projections since the popular device came to market in 2007.
Currently, the Dow Futures indicate a gap down open of more than 300 points. With AAPL so heavily weighted in the DIA, SPY, and QQQ it could be a rough day for the market. According to a report, Warren Buffett will lose 2.8 Billion on his AAPL position today. As the power switches isles in the House today the first order of business is electing a new speaker. Once that is complete, they hope to pass several bandaid bills as a temporary patch to reopen parts of the Federal Government while negotiations continue on the border wall. With so much uncertainty expect volatility to be back on the rise this morning fast price action more suitable for day traders than swing and position trading.
Trade Wisely,
Doug
