Extreme price volatility displayed emotions from gloom and doom to bullish euphoria which produced a whipsaw on steroids. The good news is with the futures pointing to a possible follow-through this morning a nice bottoming chart pattern is possible. The bad news is that very little has changed and the political uncertainty is likely to keep volatility high with challenging price action.
This morning’s open will be about 800 Dow points off of yesterday slow. If that, not the very definition of extreme volatility I don’t know what is! Don’t chase the morning with the fear of missing out. Wait to see if buyers step in to support the gap and remember a pop and drop is now out of the question. Plan your trades carefully and realize this wild price action will require a higher tolerance to risk.
On the Calendar
On the Earnings Calendar,we have 34 companies on reporting, but we drop off into the lower twenty ’s and teens as the 4th quarter winds down.
Action Plan
No doubt about it the wild ride continues with a massive whipsaw covering about 1000 Dow points from top to bottom and then bottom to top. Asian markets also had a very volatile night but closing mixed but mostly higher. In Europe, the Sterling continues to fall after delaying the Brexit vote, but currently, their markets are shaking that off and are bullish across the board this morning. US Futures went into the evening down also made a nice recovery overnight and are currently pointing to a gap up around 200 points.
That’s around 800 Dow points off of yesterday’s low so be care not to chase fearing you will miss out. Remember we want to make sure buyers will actually step in to support the gap after the open rather than profit-takers selling into strength an producing a pop and drop pattern. With the wild volatility it will be very difficult to find low risk entry positions so if you do trade keep in mind your tolerance to risk should must be carefully considered.
So the question todayis: Are we starting another relief rally? The answer is yes it would appear so.Yesterday the sellers pushed hard to, but the buyers pushed back a littleharder to draw a Hammer. The futures are feeling bullish this morning, and itlooks like the SPY will open higher. This week will be no time for the buyersto give up, the following key levels are what the buyers need to own: $269.95,$275.60, $281.05. Price reaching anyone of these numbers will be a relief rallywithin a downtrend, the sellers will be out like trick or treaters on Hollowee nnight looking for candy.
(FB)Bullish Piercing Candle
We bought FB yesterday as did a few subscribers in the trading room. We feel FB is bullish over $143.30. Facebook has drawn a Bullish (PBO) Pricing candle and proved to follow through yesterday. Price disclosed over the daily downtrend line and challenged the 60-min 200-SMA. Cautions we approach the 50-SMA. Trade-Ideas For The Watchlist: TC2000, TNDM, EXEL, FB, DATA, TWLO, CME, AMBA, SYMC, MRK, NWL, UAA
Real-Time Stock Scanner
Rick uses three main trading tools and has dialed them in for max performance. Rick also freely shares his insights on what makes the tools the best and how to use them. Rick is also one of the only traders in the industry that shares his trading account.Traspaerancey and Trading 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
So the question todayis: Are we starting another relief rally? The answer is yes it would appear so.Yesterday the sellers pushed hard to, but the buyers pushed back a littleharder to draw a Hammer. The futures are feeling bullish this morning, and itlooks like the SPY will open higher. This week will be no time for the buyersto give up, the following key levels are what the buyers need to own: $269.95,$275.60, $281.05. Price reaching anyone of these numbers will be a relief rallywithin a downtrend, the sellers will be out like trick or treaters on Hollowee nnight looking for candy.
(FB)Bullish Piercing Candle
Webought FB yesterday as did a few subscribers in the trading room. We feel FB isbullish over $143.30. Facebook has drawn a Bullish (PBO) Pricing candle and proved to follow through yesterday. Price didclose over the daily downtrend line and challenged the 60-min 200-SMA. Cautionas we approach the 50-SMA.
Real-Time Stock Scanner
Rick uses three main trading tools and has dialed them in for max performance. Rick also freely shares his insights on what makes the tools the best and how to use them. Rick is also one of the only traders in the industry that shares his trading account.Traspaerancey and Trading 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
The futures pointing to another gap down open the big question is will the bulls defend October/November price supports or will the bear’s seek a lower level. Asian and European markets fell overnight on disappointing trade data and global growth concerns. With so much political uncertainty weighing on the mind of the market we should expect volatility and challenging price action to continue for the near future.
As much as I would love to see the Bulls defend current supports, there is nothing in the current price action as of now suggesting that is the case. In fact, an unbiased look at the index charts shows us the possibility of more downside if the current support fails. If the Bulls do defend support, remember there is a lot of price resistance and technical damage above. With volatility so high anything is possible so if you do decide to trade be willing to take profits and cut losses quickly. Always remember that cash is a position and you do not have to trade every day to be a successful trader.
On the Calendar
On the Earnings Calendar,we have 36 companies reporting earnings today to keep traders on their toes. Continue the good practice of bouncing the earnings calendar against current holdings.
Action Plan
Futures opened yesterday afternoon and quickly fell 200 points but have slowly improved overnight. Asian markets closed sharply lower overnight on worse than expected trade data and European markets are lower this morning due to global growth worries. Consequently, the current US Futures markets are currently pointing to a modest gap down testing the strength of the November price supports but that could easily change as we near the open. If the November supports do fail then watch for DIA 240, SPY 260, QQQ 157, support levels to be tested.
With the VIX closing on Friday above a 25 handle fear could easily transition into to panic if sellers remain in control and November supports fail. As a result, we should expect volatile price action and higher option prices for the near future as political uncertainty continues to weigh on the market. If you’re currently short, watch price action carefully for potential bounces off of support as reasons to take profits. Also be careful not to chase short positions at or near price support levels. If you want to be a buyer, don’t try to predict or anticipate the bottom. That’s the job of the big institutions and keep in mind the bottom may still be lower. Wait for good price action signals before entering and prepare for volatility.
The price action on Friday struggled then held Thursdays low, and we now have a triple test bottom with the past four candles suggesting the sellers have control. With price action below the daily 50-SMA and weekly 200-SMA on top of the three failed highs, I would have to say the market is not looking so good. Short term relief rallies are normal just not likely to produce large bullish moves until price crosses levels. Three important key levels are $270.64, $277.25. 281.25.
Friday I went to all-cash taking a pro-active stance on protecting the 362% we are up this year on the “Road To WealthAccount.” Going forward into the end of the year I will be trading like I am walking on thin lake ice. The game is to create wealth not pick lotterytickets. The “Road To Wealth” Brokerage Statement can be found by Clicking Here
Today’s Trade-Idea Thoughts
We have not increased our “Road To Wealth Account” simple by trading willy-nilly and don’t intend to start today. Today we will talk about trades in the trading room when we see the attitude of the market and not before.
362% November Statement
Rick uses three main trading tools and has dialed them in for max performance. Rick also freely shares his insights on what makes the tools the best and how to use them. Rick is also one of the only traders in the industry that shares his trading account.Traspaerancey and Trading 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
In this E-Learning call we dive into the Long Put Option Directional Strategy details. We also cover the trade setup and the chart patterns that produce high probability directional put positions.
After hearing the FOMC would take more of a wait and see approach to interest rate increases the indexes found support and producing a massive whipsaw rally. The QQQ managed to fill the gap while the DIA, SPY, and IWM fell just short of accomplishing that task. Unfortunately, the current Dow futures are pointing to another triple point gap down at the open as program trading continues to wreak havoc with massive volatility.
Congress did manage to avoid a government shutdown tonight but only kicked the can down the road for couple weeks leaving a big cloud of uncertainty as to what happens next. Additionally, trade negotiations between the US and Canada and the threat of a yield curve inversion add density to the uncertain clouds as we head into the weekend. Consider the massive volatility and the daily gaps as you plan your risk into the weekend.
On the Calendar
For the last trading day of the week, we have just 17 companies reporting earnings. Although the 4th quarter earnings events continue to wind down, we must remain vigilant checking report against current holdings.
Action Plan
After an ugly gap down yesterday markets managed to hold at key support levels after hearing that the FOMC will adopt a wait and see approach in regards to new rate increases. Yesterday’s slow grinding rally came close to filling the gap in the DIA, SPY, and IWM while the QQQ filled the gap and demonstrating the volatility remains very high. Unfortunately,the current futures market is pointing to another gap down around 100 points.
With so much wild volatility retail traders have much take a moment to think about the risk they carry into the weekend. Clearly, anything is possible as index and quant fund automatic trading algorithms continue to thrash market confidence. As for me except for the possible quick intraday trade I’m content to wait for the market to gain some stability. Weigh your risk carefully as the weekend nears and remember cash is a position often underutilized in times of such market turmoil. Have a great weekend everyone!
The SPY found support
and worked itself back up above the T-Line Bands but still controlled by the
bears. Price remains below the 200-SMA, and the 50-SMA is kissing the 200-SMA.
I have found when the market is in rough waters, and the sellers are the captain
of the boat. Longs are only good for very short term relief rallies. The short
trades seem to be better, but they are a bit shaky at the moment. The good news
it’s Friday, and we get to count our money! Remember cash is a position.
Rick uses three main trading tools and has dialed them in for max performance. Rick also freely shares his insights on what makes the tools the best and how to use them. Rick is also one of the only traders in the industry that shares his trading account.Traspaerancey and Trading 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
Hit 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
Tuesday we saw the SPY sell off confirming the Hanging Man Candle and another failed attempt for the bulls to control price action above both the 50 and 200-SMA’s. The futures this morning will be punishing most long positions held. Taking a look at the weekly SPY chart, I can see a tight nasty Blue Ice Failure set up, (keep in mind follow-through is required). 2016 was the last time price action of the SPY was near the 200-SMA on the weekly chart, and it’s starting to look like a future test is in the game.
(BAC) Weekly Blue Ice Bearish Engulf
The weekly chart is showing a Bearish Engulf and a Blue Ice short set up which could be pointing price to the 200-SMA or about $21.70. We are adding BAC to the LTA-Live Trading Alerts Real Time Market Scanner watchlist for management and buying alert. I will consider BAC Jan 18, 2019, $28.00 PUT.
Rick uses three main trading tools and has dialed them in for max performance. Rick also freely shares his insights on what makes the tools the best and how to use them. Rick is also one of the only traders in the industry that shares his trading account. Traspaerancey and Trading Results.
****VXX– Bullish Morning Star closed over both the 50 and 200-SMA
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 Hit 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
