Government Uncertainty

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Uncertainty

As I write this, the Dow is expected to open more than 300 points lower and continues to face the uncertainty of the government shutdown.   Asian markets sold off sharply during the night with December manufacturing numbers came in worse than expected.  European markets are bearish across the board as well this morning, and the US Futures are pointing to a nasty overnight reversal gap down. 

Today the President is meeting with Congressional leadership so we will have to say on our toes because the market is likely to react quickly to any news, positive or negative that results from the negotiation.  The volatile price action continues to favor the quick day traders as the risk of holding positions overnight in this emotional market remains very high.  Price action will likely be very sensitive to any political news so remain focused, flexible and ready for intraday reversals.

On the Calendar

calendar

On today’s Earnings Calendar we have only seven companies reporting, and unless you happen to hold them, they are not particularly notable. 

Action Plan

The bullish gap on Monday looks fully reverse as the market sentiment continues to flip-flop from moment to moment.  The current price action continues to favor quick day trading because the risk of holding over trades over a single night is unsuitable for most swing traders.  The President has called a meeting with Congressional leadership to discuss ending the government shutdown.  The news spin out of this meeting could move the market sharply so we will have to stay flexible and focused on price action.

Currently, the Dow futures are pointing to a 350 point gap down which of course means we have to watch carefully for the possibility of a reversal whipsaw much like we experienced last Thursday.  However, there is no reversal, and the sellers remain in control after the open it would be wise to remember that support could be hundreds of points lower.  That’s one of the challenges of whip like this because the price action didn’t take the time to build support levels.  Volatility is likely to be very high today and price action very sensitive to political news.  Stay flexible, focused on price action, avoid trying to predict and watch out for possible whipsaws.

Trade Wisely,

Doug

Morning Market Prep Video

Bearish Drag First Trading Day

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Welcome to 2019! So we wake up to a nice Bearish drag the first trading day of the year. In my last blog post, I wrote: “The SPY is set up for more consolidation with pending political news.” And this is exactly what is happening, after the bullish price action on the 26th and 27th we see consolidation, construction consolidation as long as the bulls can defend $242.65.

The fear in the VXX chart is working on a Bearish Shooting Star, BUT if the sellers can not close below $45.55 soon, the Bearish Shooting Star will be the candle that produced a small amount of profit taking. The VXX chart has been in a bullish trend ever since the October low; the T-Line has remained above the 34-EMA as the 34-EMA has been rising. The current daily price action is still above the T-Line, a bullish indicator.

Right Way Options Trading Room

Right Way Options Room Update – The RWO trading room is nowopen 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

Top Gun Day Trading – The Top Gun Day Trading room is up over $3,000 in December while risking only $100 to $200 per trade. Our latest trades include: 400 shares of SPXS for +$163.00

  • 400 shares of UPRO for +$130.00
  • 2 SPY Puts for $103.00 in less than 15 min
  • Member Doug K. made $250.00 on SPX Puts Friday
  • Learn More about Top Gun Day Trading – Click Here

Hit and Run Candlesticks Trading Room

Hit and Run Candlesticks • The Road to Wealth – 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

Sorry no trades ideas posted on the blog, we will be posting and talking about trades in the trading room.

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!

More Information

Trading Services We Offer

  1. Hit and RunCandlesticks 
  2. Right Way Options
  3. Top Gun Day Trading
  4. 30-Day Trial

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

SPY Set for Consoladation

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The SPY is set up for bullish consolidation with pending political news and tomorrow being a holiday. Friday was the first day in about 17 days that price has helped its nose above the T-Line for any length of time before closing back below the T-Line. Friday was also another higher low and high, haven’t seen one of those in a couple of weeks. On the daily chart, Friday did close below the T-Line but with a resting Doji while the weekly chart closed up the week with a Bullish Harami. Let’s not get too excited the sellers still have the upper hand while the T-Line is below the 34-EMA. It does look like the futures are on the buyer’s side this morning, but the close is what matters now.A

Right Way Options

Right Way Options Room Update – The RWO trading room is nowopen 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

Top Gun Day Trading – The Top Gun Day Trading room is up over $3,000 in December while risking only $100 to $200 per trade. Our latest trades include: 400 shares of SPXS for +$163.00

  • 400 shares of UPRO for +$130.00
  • 2 SPY Puts for $103.00 in less than 15 min
  • Member Doug K. made $250.00 on SPX Puts Friday
  • Learn More about Top Gun Day Trading – Click Here

Hit and Run Candlesticks

Hit and Run Candlesticks • The Road to Wealth – 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

HRC Trade Ideas

TNDM, CZZ, CIEN, GLUU, AVGO, WDAY, FNSR, ARRS, GNW are on our watchlist for a possible trade today or within the next few days. TNDM is our featured long trade-idea today with a Bullish Doji Continuation Pattern that broke out over the downtrend line Friday. The weekly chart is also showing a Bullish Engulf Candle and price action support on the 34-EMA.  A price challenge of the September high would be about a 30% stock trade and over a 90% option trade. Members log in for more details. Past performance does not guarantee future results. Learn how to trade before you trade.

TNDM- Buy box between $39.25 and $36.45 • Target $52.00 with a few profits taking targets in-between • Stop below $35.30 • 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!

More Information

Trading Services We Offer

  1. Hit and RunCandlesticks 
  2. Right Way Options
  3. Top Gun Day Trading
  4. 30-Day Trial

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

Farewell to 2018

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Farewell to 2018

As we bid farewell to 2018, reflecting on the last 12 months of trading, it was overall a great year albeit quite challenging to navigate.  As we enter 2019, the market is showing its first clues of bottoming but still faces significant uncertainty this will likely continue to challenge traders for the next several weeks to months.

But for those disciplined to price action, I have no doubt 2019 will provide us with great opportunities to profit.  Be careful with this mornings gap up and watch for the possibility of a pop and drop.  We need to see buyers coming in to support this gap and willing to challenge resistance levels.  That may be a lot to ask with volumes likely to decline quickly today as traders set their sights on 2019 celebrations.  I wish you all a Happy New Year and a prosperous 2019!

On the Calendar

calendar

On the Earnings Calendar, we have 18 companies reporting this New Year’s Eve, but none of them are particularly notable. 

Action Plan

The Futures are pointing to a big gap up this morning after the President stated he had a good conversation with the Chinese President Xi about trade.  As I write this the Dow Futures are suggesting a gap up of more than 200 points.  As great as it is to see bullishness in this market I must say it seems highly suspect and would suggest caution on this last day of trading for 2018.  Shortly after the Presidents comments, a report suggested that the two sides are still very far apart on key elements of the agreement.  Another clue is that Asain markets closed mixed with the Nikkei lower 62 points on the same news.  European markets are also not impressed and currently mixed but mostly falt on the day.

After the morning rush, expect the volumes to drop off quickly as traders turn there focus toward celebrating the new New Year.  Keep in mind the Federal Government is still shut down, and the new Congress will begin to whip up market emotions later this week.  If buyers support the gap after the open keep an eye on price resistance levels and watch for the possibility of a pop and drop.  I wish you all a Very Happy New Year!

Trade Wisely,

Doug

Morning Market Prep Video

VXX Puts Another Base Hit

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Yesterdays Bearish Shooting Star in the VXX is suggesting we’re going to celebrate the New Year in style with another good base hit. Congratulations to the members in the VXX Put!

A Day Traders Market

25% discount coupons – check with us

The Top Gun Trading room is up just under $2,800 in December while risking only $100 to $200 per trade. Our latest trades can be seen below, The Top Gun Day Trading Room operated by Steve Risner and Steve and many in the room have paid for there membership in one single day of trading. Top Gun Day Trading is a Division of Hit and Run Candlesticks Inc. So let’s take a look at what’s going on in the day trading room.
Top Gun Day Trading – Despite the weakest market in over a decade, the room is up over $2,800 in December while risking only $100 to $200 per trade. Our latest trades include:

  • 400 shares of SPXS for +$163.00
  • 2 AAPL Puts for +$185 in less than 10-min
  • Day Trading Room Open House: Today and Tomorrow • Password B-52 • Login Here
  • Get started for the new year Click Here please ask us if there are any 25% discount coupons left.

SPY ETF – After the sellers had their way with the SPY, the buyers came in and pulled the candle out of the mud and closed us above the Bullish Morning Star. That’s what you call follow-through. On the SPY weekly chart price action is getting close to drawing a Bullish Piercing Candle, a good close today could do it. For the (RBB) Rounded Bottom Breakout traders the SPY is set up on the 60-Min chart.

The SPY is starting to run into a little resistance, so let’s be a little careful. We should see a pullback soon to test the rally we have had. Another thing I want to mention is this market is still under a ton of pressure, and the Bears still control the trend. We could easily see price action walk to trend at this point.

Good trading and Happy New Year

TC2000 T2122 Chart – The four weeks New High/Low Ratio is still in the oversold area and Stochastics is deep within the oversold area as well. FYI: A chart oversold is only a condition, not a reason to buy. Oversold can last a long time while you keep trying to pick a bottom and losing money. TC20000 is my favorite charting package of all time.

Yes, The Little Account Can!

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.

More Information

Trading Services We Offer

  1. Hit and RunCandlesticks 
  2. Right Way Options
  3. Top Gun Day Trading
  4. 30-Day Trial

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

Massive Short Squeeze

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Short Squeeze

Yesterday’s huge reversal triggered a massive short squeeze forcing those caught short forcing them to buy to cover positions.  Those that held their short positions through the night hoping for another reversal will certainly experience more pain this morning with Futures pointing to a trip point gap up at the open.  If you are holding long positions, a big Congratulations is in order but remember to take profits because this massive volatility is likely not over. 

The Dow gained more than 1400 points in just 2-days!  A gap up this morning could easily bring in profit-takers as they avoid the weekend risk.  Congress has now adjourned leaving the Federal Government shut down for the rest of the year.  With many traders likely planning to extend their New Year’s holiday volume could be lacking on Monday and remember the markets will close on Tuesday.  There is a lot to consider when planning your risk heading into this weekend.

On the Calendar

calendar

A light day on the Earnings Calendar with only Eight companies reporting with none that are particularly notable unless you happen to be holding them.

Action Plan

With the Congress now adjourned until next year, it looks as if the Federal Government will remain shut down until sometime next year.  We should continue to expect the massive volatility to continue which makes holding positions into he the weekend carry significant risk.  US Futures this morning are pointing to a significant gap up follow-through on yesterday’s huge reversal whipsaw that triggered a massive short squeeze.  Those that held short positions through the night will be in pain this morning keeping the pressure on the short squeeze, but if you’re holding long positions I would like to remind you that gaps are gifts!

The potential of another reversal whipsaw heading into the weekend is certainly not out of the question so be careful not to allow greed, prevent you from taking profits.  Personally, I would like to see a bullish close today but with the extreme volatility and the Dow having gained more than 1400 points in just two days some profit taking to avoid the weekend risk would not be a big surprise.  Also, keep in mind that volume on Monday (New Year’s Eve) is likely to drop and price action becomes erratic as traders head out for the holiday.  Plan your risk accordingly.

Trade Wisely,

Doug

Morning Market Prep Video