Choppy Holiday Price Action
Thanksgiving vacations, Black Friday and Cyber Monday typically set the stage for choppy holiday price action. There are a lot of good-looking charts showing up after the rally relief last Thursday and Friday, but as the holiday nears they may find it difficult to find the energy follow-through. Of course, news such as a China trade deal would be a game changer but short of something like that this could be a challenging week.
You may have to very flexible and nimble willing to taking profits and cutting losers quickly. After the morning rush on Wednesday expect volume to drop like a rock unless driven by a surprise new event. Expect choppy price action on the half day of Black Friday trading and the Cyber Monday holiday sales events. If you’re heading out early for your holiday plans, I want to wish you safe travel and a very Happy Thanksgiving!
On the Calendar
There are 66 companies reporting earnings today. Notables today are AABA and JD which both report before the bell this morning.
Action Plan
Major holidays weeks typically see a significant decline in volume adding an additional challenge to our trading. We may find plenty of good long and short entry signals, but they may lack the energy to follow-through and profit. Thursday the market is closed, and Friday it’s only open half a day. In the past, both Black Friday and Cyber Monday are also light volume days with everyone focuses on the holiday shopping deals and travel.
Futures are suggesting a slightly bearish open with the Dow currently indicated to gap down about 75 points. Asian and European markets were bullish overnight. Because of the risks of holding over a holiday weekend, if I do trade, I will plan to take profits quickly and cut losers without mercy. I intend to be light in my portfolio on swing trades by Wednesday and will most likely stay that way until next week. If the holiday sales events go well then perhaps Santa can begin working his magic by next week. If sales disappoint, then watch the emergence of the Grinch.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/FvpgiSvf5gk”]Morning Market Prep Video[/button_2]
Nice bounce, but?
I don’t know about you, but I certainly wanted to see a little bullish follow-through after yesterdays nice bounce. Unfortunately, the current futures market is proving once again that what I want has nothing to do with what the market does! Sadly a lesson that took me a long time to learn.
With volatility so high anything is possible. If the market provides us with a quick profit, we should consider taking some or all of it off the table during turbulent market conditions. It may not be what you were planning for hoping for but it far better to take small gains consistently than letting those gains diminish or disappear overnight. As we head into the weekend, consider your risk carefully and remember that Thanksgiving is just around the corner which means volume will likely decline sharply heading into the holiday.
On the Calendar
On the Earnings Calendar, there are only 16 companies reporting as the 4th quarter season winds down.
Action Plan
After the nice bounce yesterday, I’m guessing that everyone was hoping for a follow-through push higher this morning. I know that’s what I wanted to see! However, what we want has nothing to do with what the market gives us. The unfortunate truth is that currently, the Dow Futures look to take back some of the reality with a gap down of more than 100 points. Disappointing yes, but not all that surprising given the recent market volatility.
As we head into the weekend, consider your risk carefully with high market volatility in mind. If you have current profits, it may be wise to take some if not all the gains and tuck that safely away in your account over the weekend. As 4th quarter earnings wind down, expect the market to become even more sensitive to any reports China trade and the likelihood of an agreement. Also, as Thanksgiving approaches, keep mind that volume can quickly dry up as traders take time off for the holiday, adding to the already challenging price action. Have a great weekend everyone!
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/D1NmsubofDc”]Morning Market Prep Video[/button_2]
How BABA Acts Today
Depending on how BABA acts today we may or may not capture profits, at the close yesterday we were up 42%. With a few other nice trades, we are working with such as (SYMC-closed yesterday) and PZZA the “Road To Wealth” Account will be positive a staggering 380% for 2018. The new LTA-Live Trading Alerts Real Time Market Scanner is working out great alerting me on trades that need my attention. We are very very excited about the built-in alerts, and they will only get better from here. Here are 14 charts I am adding to my LTA-Live Trading Alerts Real Time Market Scanner PBI, LLY, MRK, EXTRA, LCI, LOGM, XENT, CASA, COLL, FND, AGEN, CDNA, VXX. Trade-Ideas and picks are worthless unless you know how to read a chart for profitable trading.
****VXX – Be careful the VXX chart is still in a bullish position which means the fear in this market is real.
Trading Services We Offer
- Hit and Run Candlesticks
- Right Way Options
- Top Gun Day Trading
- 30-Day Trial
321% This Year
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.
- LTA – Live Trading Alerts Get your 30-Day Trail
- TC2000 Charting Get $25.00 Off
- TradeHawk Trading Platform
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
YouTube Videos
Trading at the Beach • How to set up the T-Line Regression Lines • MetaStock Automated • Trading the T-Line Trap • Shorting the Blue Ice Pattern
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
Profits From Our VXX Calls
Yesterday we captured profits from our VXX Calls to the bank based on our target plan. Another new low for the SPY yesterday and nearly closing the gap we talked about in the trading room. Closing the VXX calls was based on the probability of a bounce headed our way. The SPY weekly chart is still on the fence with a Blue Ice Failure, but I an not ready to discount the Daily Inverted Head and Shoulders Pattern on the daily chart. It will be important the buyers circle the wagons for a good run before years end. Please note there is still a possibility of a near test of the October lows.
SYMC J-Hook Setting Up
SYMC is setting up a J-Hook continuation trade now that it has seen profit taking the last few days. The price action of the last couple of days shows the buyers are attracted too or rather above the $21.60 line. A bullish breakout of the 200-SMA could potentially push price 14% or higher. We did add to our SYMC position yesterday. I will be adding SYMC to the LTA-Live Trading Alerts Real Time Market Scanner watchlist for a buying alert. SYMC bullish above $22.85, stop below $21.60
****VXX – The VXX came into our swing target area, and we took our profits based on us on the plan.
Trading Services We Offer
- Hit and Run Candlesticks
- Right Way Options
- Top Gun Day Trading
- 30-Day Trial
321% This Year
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.
- LTA – Live Trading Alerts Get your 30-Day Trail
- TC2000 Charting Get $25.00 Off
- TradeHawk Trading Platform
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
YouTube Videos
Trading at the Beach • How to set up the T-Line Regression Lines • MetaStock Automated • Trading the T-Line Trap • Shorting the Blue Ice Pattern
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
Tradeable Tops and Bottoms
In this video, Rick Saddler talks about what exactly makes a tradeable top or tradeable bottom (as opposed to absolute bottoms and tops). This is one of the tools he has used to achieve 321% account growth between January 1, 2018 and October 31, 2018
1 hour 19 minutes
[video_player type=”embed” style=”1″ dimensions=”custom” width=”640″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]
[/video_player]
Candlesticks • Price Action • T-Line • T-Line Bands • Support • Resistance • Trend • Trendlines • Chart Patterns • Buy Box • Volatility Stops • Profit Zones • Entry Zones • Protective Stops • RBB Rounded Bottom Breakout Strategy • Pop Out of The Box Strategy • Pinball Strategy • Trade Planning, Fibonacci, Stoch/RSI
Investing and Trading involve significant financial risk and are not suitable for everyone. No communication from Hit and Run Candlesticks or it’s associates should be considered as financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service
Is the Sky Falling?
Listening to the market reports it would be easy to conclude that the sky is falling! However, if you study price action, there is nothing that out of ordinary concerning the current pullback. After more than a 2000 point Dow rally in just 9-days, the oddity is not expecting one to occur! For all traders, this selloff is unnerving and very uncomfortable, but as long as price remains above October low, the sky is not falling.
In fact, the vast majority of market bottoms are formed this way. They take time, and they are always volatile and trying to fight it is a good way to go broke. As always it will be the institutions with their trillions of dollars that will decide when it’s over not the retail traders! If your being chopped to pieces in this volatility, stop trading. Study price, watch and wait for your edge to return. Better days are coming and when it does there well great stock at discounted prices.
On the Calendar
On the Earnings Calendar, we have nearly 250 companies reporting results today. The bad news is this could add to market volatility with the good news is we are beginning to wind down earnings this quarter.
Action Plan
Some pretty wild price action yesterday with Dow swing more than 325 points from high to low in a very volatile session. The possible silver lining I mentioned yesterday didn’t show itself but looking at the major index charts is still possible as long as prices hold above October’s low. Having said that Bears are still in control and we must remember that anything is possible. Sadly IWM has now officially printed the so-called death cross with the 50-day crossing below the 200-day average.
Currently, futures have recovered from overnight lows and currently suggesting a flat to every so slightly bullish open. When the market downturn began in early October, I said the technical damage could take weeks if not months to repair. I have also mentioned several times that the V-bottom that had been forming after a 2000 point rally in the Dow was very rare an that has also proved to be true. That was not a prediction; it was merely a study of typical price action after a selloff. If I can do it, believe me, anyone can read price action as long as you set aside bias and remain disciplined.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/oBoKPXSObeY”]Morning Market Prep Video[/button_2]
