SPY, to challenge the 50-SMA on SPY? The slow grind wall of worry is working slowly but surely. Price action seems determined to challenge the 50-SMA after the December low followed by a High/Low – Higher/high and a successful challenge of the 34-EMA. Yesterday markered the 5th green bullish bar based on our 17-EMA red-green tracking line. Yesterdays Bullish Morning star is suggesting the buyers want to challenge the 50-SMA. At $258.00 the SPY entered a resistance minefield for the bulls to navigate.
VIX–X Chart – The price
action trend is still down and no fear as of yet. Stay on your toes.
HRC Watch list additions – CHK, WLL, FTNT, ROKU, BDX, EBAY, SQ, MS. We cover the trade details each morning starting at 9:10 am Eastern in the HRC trading room and throughout the day. The key to trading is understanding how to trade. A trade alert means nothing without the education. Past performance does not guarantee future.
Real-Time Market Scanner
Built-In (Included) Scan Definitions. Bullish and bearish, Continuation, moving average crossovers and bounces. (RBB) Rounded Bottom Breakout alerts, intra-day, daily and weekly, Candlesticks stick signals and more. Scan Definitions- Download FREE
The LTA – Live Trading Alert Program is software that runs independently of any charting programs, an in real time finds chart setups. Hi, this is Rick Saddler founder of Hit and Run Candlesticks, as you know I have been using a live scan most of my trading career. It wasn’t until after I started to use the scanner that I became successful. Some people even say I am one of the best directional swing traders they have ever seen, that just not true; it’s because of the Live Scanner and what it does for me. It would be very hard for me to give up the scanner and believe every trader that wants to succeed needs to consider this tool.
You can get then scanner for a 30-day trial, but please keep it for at least 6-months to give it and you a chance. Below are a few scans it currently can run and we can customize scans for you! 30-Day Trial
Hit and Run Candlesticks – Join Rick Daily in trading room #1 membership required. Join in, ask questions and learn how Rick picks his trades and trades them. 2018 account + 307% starting with only $5,100. Become a member of Hit and Run Candlesticks and let’s bring on 2019 Read More
Right Way Options Room Update – The RWO trading room is now open all day to share ideas and watchlist suggestions. Watch and learn from Doug as he prepares and explains his trades. Learn More about Right Way Options – Read More
Top Gun Day Trading Room is for the active day/scalp trader looking to profit daily with no overnight risk. Daily trade alerts and trading education. Read 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, the government
shutdown in its 25th day and a Brexit vote could make for a
challenging day. So far the bulls have done a very good job of
defending price supports, but the bears
have also been working hard keeping the index
range bound in a rather tight consolidation. That consolidation could easily become the
launching platform to attack the 50-averages, which
for Dow is nearly 400 points higher. Or,
it could also become the “border wall” that
the bears defend.
Today we could see a rise in
volatility this afternoon depending on the result of the Brexit vote because of
the currency ramifications. We will have
to remain flexible, stay focused on price action and avoid over-committing to a
directional bias as the events of the day roll out. Fast price action and whipsaws are possible
after the Brexit vote so stay on your toes, as it may prove to be a challenging
day.
On the Calendar
On the Earnings Calendar,
we have 18 companies reporting. Notable
reports JPM, UNH, WFC, INFO & DAL before the market open. After the bell UAL reports.
Action Plan
Earnings results and political uncertainty will keep traders on their toes today. First,
we have several notable earnings before the bell that could provide a little volatility
before the open. Then this afternoon we
could see some substantial volatility as a result of the Brexit vote this afternoon. At this time the vote is expected to fail, and some say it could be an epic failure that
could wildly move currency markets. As
we begin the 25th day of the shutdown
TSA workers all across the country are calling in sick in protest. Air travel could become very difficult and create
unintended economic impacts as the shutdown drags on.
The good news is that the bulls thus far seem largely
unaffected by the turmoil rejecting yesterday’s gap
down and defending price supports. Currently,
the futures are suggesting a gap up to an upper range of the current
consolidation, but that could easily improve or worsen as earnings results roll
out. T2122 pulled back yesterday but remains
stretched suggesting more pullback or consolidation is possible. I would not rule out a bullish push to test
the daily 50 averages nor can we rule out the possible pullback so stay flexible
and focused on price action for clues. With
the Brexit vote possibly kicking in an extra dose of volatility it could be
challenging day to navigate.
A record China trade surplus with the US and the longest
Federal Government shutdown in history brings out the bears this morning with
US Futures pointing to a gap down around 200 points in the Dow. Asian indexes closed mostly lower overnight, and European
markets are currently lower across the board.
The media would like us all to believe the selling is due to the
shutdown, but in reality, we all knew that the market was in short-term overextended and a pullback should not have
been a major surprise.
Technically speaking a
rest or pullback will be a healthy thing as long as price supports hold. For the Dow, a hold above 233 area, SPY 250
area, QQQ 155 area, are important levels for the bulls to defend. If they do, we should see many long entry
setups. However, if they don’t, it would
open the door for a possible retest of the market lows but with the new wait
and see FOMC I personally think that is unlikely. If your thinking short, remember not to chase
the morning gap, wait to see if sellers step in supporting the selloff. Be prepared for fast price action and watch out
for possible intraday whipsaws.
On the Calendar
On the Earnings Calendar,
we have 24 companies reporting with the most notable C, SJR & LLL reporting
before the bell this morning.
Action Plan
The Bulls that remained very positive onto the close on Friday
seem to have a little different attitude this morning. Currently,
the US Futures are pointing to a significant gap down after Chinese economic data
showed a record high trade surplus with the US and the 24th and
longest shutdown in history spooks investors. Some Republicans are calling for the President
to declare a National Emergency to fund the border wall while others like Lindsley
Graham are asking for short-term re-open
so employees can be paid. One this is for sure is that opposition has
no intention of budging on the issue.
Although a gap down of
200 points is certainly painful, technically speaking this pull back from an
overbought condition was needed and should not have been a surprise despite the
political issues. As long as the Dow can
hold above 233 and the SPY above 250 prices
supports we should be in good shape. However, if the indexes fail those price levels in the
days or weeks to come it opens the door for a possible retest of the market
lows. Shudder the thought! Remember not to chase the gap, wait to see if
there is follow-through selling supporting the gap before thinking about entering
short positions. Expect volatility to
rise this morning, so fast price action, and swift reversals are often the results.
Yesterday I mentioned that the market needs a rest, but he tenacious
bulls had other plans yesterday printing the 5th straight day up since
September. The Dow has now recovered 2254 points in 11
days, and yet nothing has changed with the
political uncertainty. There has been progress in the trade negotiations but still, no agreement and the government shut down at 21
days is now tied for the longest in history with no apparent resolution in
sight.
Please understand I’m not suggesting bearishness I’m only
pointing out the curious nature of the market and how important it is to follow the price action and trade the chart without trying to predict. I still believe the market needs a little
rest or pullback, but big opportunity
may be just around the corner. As we
head into an uncertain weekend, I suggest
being careful chasing this rally which appears
stretched in the short-term. However, I
would be preparing a watchlist of candidates
that could soon setup great swing and positon trades.
On the Calendar
On the Earnings Calendar,
we have a light day with only eight companies reporting with INFY the most
notable reporting before the bell.
Action Plan
The Bulls proved to very tenacious
yesterday defending price levels every time
there was even a hint of profit-taking. One would think that kind of pressure would continue
through the end of the week, but
interestingly enough the futures appear to be lackluster
this morning. As I write this, the US Futures are suggesting a flat open
as we enter the 21st day of the government shutdown. That ties for
the longest shutdown in history, but as
we head into the weekend, there seems to
be no resolution
in sight.
Trade negotiations this week proved to be productive, but there are not stories coming out that there is a lot of work to be done before finalizing an agreement. Now the question is will bulls remain strong as we head into the weekend amid all the uncertainty? T2122 continues to signal caution and suggesting a short-term overbought condition but as you know price action is currently not confirming that conclusion. We will have to tread carefully this morning to see if the bulls have the energy to push higher or if the profit-takers take control ahead of the weekend. I would suggest being very careful about over-committing to long positions this late in the rally.
Follow-through below yesterdays low could lead price back to test the $254.55 / $252.85 area. The past four days the buyers have been able to string together four new highs and four new lows, however, the $258.00 area is proving to be more of a task then the buyers anticipated with the narrowing of the range. Follow-through below yesterdays low could lead price back to test the $254.55 / $252.85 area. The $258.00 resistance line is what we have talked about the last few days is also where the 60-min. 200-SMA has camped out.
The LTA – Live Trading Alert Program is software that runs independently of any charting programs, an in real time finds chart setups. Hi, this is Rick Saddler founder of Hit and Run Candlesticks, as you know I have been using a live scan most of my trading career. It wasn’t until after I started to use the scanner that I became successful. Some people even say I am one of the best directional swing traders they have ever seen, that just not true; it’s because of the Live Scanner and what it does for me. It would be very hard for me to give up the scanner and believe every trader that wants to succeed needs to consider this tool.
You can get then scanner for a 30-day trial, but please keep it for at least 6-months to give it and you a chance. Below are a few scans it currently can run and we can customize scans for you! 30-Day Trial
VIX–X Chart – The VIX chart shows not bullish sign as of yesterday’s close but very oversold, Side note: The T2122 4wk New High/Low Ratio chart is pegged in the overbought area.
HRC Watch list additions – It’s Friday, no trade ideas today. We cover the details of these trade ideas and others in the trading room throughout the day. We hope you join us to learn the trade details and how we plan to trade our trades. Past performance does not guarantee future.
Hit and Run Candlesticks – Join Rick Daily in trading room #1 membership required. Join in, ask questions and learn how Rick picks his trades and trades them. 2018 account + 307% starting with only $5,100. Become a member of Hit and Run Candlesticks and let’s bring on 2019 Read More
Right Way Options Room Update – The RWO trading room is now open all day to share ideas and watchlist suggestions. Watch and learn from Doug as he prepares and explains his trades. Learn More about Right Way Options – Read More
Top Gun Day Trading Room is for the active day/scalp trader looking to profit daily with no overnight risk. Daily trade alerts and trading education. Read 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
Climbing more than 2200
points in just 10-days, the US futures this morning are suggesting a
little rest might be in order. As we
enter the 20th day of the government shutdown and as of now no
indication of when an agreement with China might occur there is still significant
uncertainty for the market to ponder.
With the VIX closing below a 20 handle perhaps we could see a simple consolidation rather than
the punishing selloff we have experienced lately. With hundreds of charts indicating possible
bottoming patterns, a little rest or pullback could set up some great entries
for swing and position traders. Remember
that the market is likely to remain very sensitive to political news and still subject
to quick price action and reversals so remain flexible and focused on price
action. Great opportunity for swing
traders and good stock pickers may be just around the corner so dust off that
wishlist and be prepared.
On the Calendar
On the Earnings Calendar,
we have 17 companies reporting earnings
today with none that are notable unless you happen
to own one of them. Remember earnings
season is coming,
it would be a good time to get into the habit of checking reporting dates.
Action Plan
With a failed meeting between the President and Democratic congressional leaders our government shut down now enters day
20. The news on US / China trade remains
positive, but there has been no
indication as to when a decision might be forthcoming. After notching a 4th bullish day,
the futures are suggesting the market needs a little rest this morning. As I write this the Dow indicating a gap down
just short of 100 points but I do expect that improve during the pre-market
pump.
Climbing more than 2200 Dow points in just ten days a little rest is definitely warranted, but that does not necessarily mean we are due a significant selloff. The best scenario would be a consolidation as we wait for some resolution of all this government uncertainty. Let’s keep a close eye on price support levels in the indexes. The good news is with so many charts showing signs of bottoming a pullback, or some consolidation could be just what the doctor ordered to set up trade entries. Polish up your watchlist because major opportunity may be just around the corner.
After three days of negotiations,
the US team is packing up and heading home, and
the market has high hopes that a deal is forthcoming. Asian markets rallied
strongly when the negotiation extended into the unscheduled 3rd day
closing up sharply. European markets are currently bullish across
the board as well. As a result,
US Futures are suggesting a gap up open extending hopes for a fourth day up, largely
ignoring the border wall wrangling and
government shutdown entering the 19th
day.
The current rally appears a bit stretched in the short-term and
bearish hanging man patterns were left
behind near resistance levels is a concern so be careful not to chase. A little profit taking is not out of the
question, but this bull rally could easily
extend if a US/China trade deal happens. Don’t fight the bull but don’t over commit long
and watch price action for possible reversals.
I guess the moral of the story is to be prepared and remain flexalbe.
On the Calendar
On the Earnings Calendar,
we have 22 companies reporting earnings.
Most notable are LEN and STZ before the bell and BBBY after the closing
bell today.
Action Plan
Hopes are high that the US / China negotiations have borne fruit after
extending for an unscheduled 3rd day. As the negotiations team packs up to head home, everyone is wondering if there is a deal
or if more decessions are necessary. As
of now, it would seem the markets are unconcerned
about the government entering its 19th
day and oval office speech that elevated tension between the warring parties.
Yesterdays gap, pullback and then afternoon rally left behind
possible hanging man candle pattern near resistance levels in the indexes. However,
on the trade deal hopes futures are currently
suggesting a gap up open of more than 50 points. While
a hanging man pattern at resistance is a reason for concern, if the bulls can
follow through for the 4th day
up the pattern loses strength. We will
have to see how the day turns out, but it would
be wise to pay close attention to the price action after the open and not to over-commit
long until the bulls prove they can stretch this rally further.
