Uncertainty FED Elections Trade China

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Uncertainty FED Elections Trade China

Uncertainty in the air right now with the FED, Elections, Trade, and China slowing down. For most traders this has been a hard week to trade and make money, price action has mostly been choppy and hasn’t gone anywhere. Price action has gravitated to the 200-SMA and seems to be sticking around the area. Earnings have been for the most part positive, but there is a tremendous amount of uncertainty in the air right now with the FED, Elections, Trade, China slowing down and such. This is the kind of stuff the market does not like.

We know that charts can change pretty fast based on good or bad news, take a look at the weekly chart of the SPY. The chart pattern is a Bearish Doji Continuation pattern, the price is below all three T-Regression Lines, and the Vol-Stop is still negative. The 80/20 rule has been a valuable rule for me over the years, 80% of stock follow the SPY/SP-500, something to think about.

Past performance is not indicative of future returns

Happy Friday!

Good Trading, Rick, and Trading Team

Membership Services • Private 2-Hour Coaching

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, Right Way Option, Trader Vision 2020 or Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone.

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ERY Setup and Trade Plan

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Today’s Featured Trade Idea is ERY .

Members can join us in Trading Room #1 as Rick reviews this setup and other Trade-Ideas at 9:10am Eastern.  For now, here are my own analysis and a potential trade plan made using our Trader Vision 20/20 software.

Note: Beware the overall market indecision. Mixed trends (short and long-term) and very volatile action (many “gap and fade” as well as intra-day reversals) make this a treacherous market.  Bear Market bounces are not when we should be getting very long in our account unless we are very quick and agile in our trading style.  This chart also lays out far less than optimal.  Great caution should be used!

ERY has been putting in a bottom since Spring. In the last week it formed a Bullish Pennant-type and is consolidating right at S/R. No earnings to worry about for this ETF itself, but the underlying companies will report over the next few weeks. Also keep in mind that anything in the news related to Saudi Arabia (or Iran) can greatly impact Energy markets.

Also note that the 200sma must be breached prior to the 1st target and there may even be a S/R level about $37.50 that needs to also be breached. Much caution is advised.

That said, you see the b/o Entry, protected Stop and Targets off Weekly charts that I laid out.

Trader Vision shows us that ERY has no earnings of its own to worry about. However, as an ETF, the underlying industry companies will report and that may well impact ERY. It also shows us that this is a dicey market to trade. Only 3 bullish conditions and 2 bearish conditions are in place for this trade.

TV20/20 then tells us this trade plan is questionable. At the first target, we do achieve better than 2:1 Reward/Risk. However, the dollar gain is minimal (if we sold the entire position there we would only make $234.50). Still, if we can sell half there and then achieve the 2nd target, we can net a 4.18:1 Reward/Risk overall and a $409.50 profit.

While this demonstrates the process of trade planning, this is an example of a trade I would personally pass on due to market and industry volatility as well as a weak layout.

Again, both common sense and Trader Vision are urging caution in this market. While this is a nice chart setup, not every day is one to be trading and a Bear Market Trend bounce it’s certainly not a great time to be taking on as many Long trades.

Having this knowledge before a trade is even entered makes it much easier to control emotions and maintain discipline.

Below is my markup of the chart and the trade plan as laid out by Trader Vision 20/20.  As a bonus, if you click the green button below, you’ll be able to watch a video of the chart markup and trade planning process.

The ERY Trade Setup – As of 10-17-18

ERY Chart Setup for 10-17-18

The Trade Plan

ERY Trade Plan for 10-18-18

Note how Trader Vision 20/20 does so much of the work for you.  Knowing the ratio of Bullish Conditions to Bearish ones as well as the overall risk of the position size, the risk to Stop out and the Reward possible at each Target price can help a great deal with controlling our emotions.  Knowing the dollar impact of every scenario ahead of time, allows us to make calm decisions during the trade.  It really takes the pressure off.  No guesswork.  No surprises.  No emotional roller coaster.

To see a short video of this trade’s chart markup and trade planning, click the button below.

 

[button_2 color=”light-green” align=”center” href=”https://youtu.be/XEdrDk7xfiA” new_window=”Y”]Trade Plan Video[/button_2]

Put the power to Trader Vision 20/20 to work for you…

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Testimonial

Trader Vision immediately simplified the process…immediately it provided that information and guidance to me. I knew what I would risk for how much reward, I began taking trades off at the 1st target, 2nd target, I was no longer holding all my trades for the homerun. I also began implementing the stop losses if and when they were reached, not just hoping the stock would recover.  It then became easier to see what patterns were working for me and which were not.  It provided a much more relaxed and stress-free environment. –Joan G

 

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Investing and Trading involve significant financial risk and are not suitable for everyone. Ed Carter is not a licensed financial adviser nor does he offer trade recommendations or investment advice to anyone. No communication from Hit and Run Candlesticks Inc. is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

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Price is King

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Price is King

Price is KingAlthough we have access to a plethora of fancy indicators on your charting platform simply technical analysis of price action support, resistance, and trend still rule supreme.  Price is King!  Tuesday’s, big rally pushed the major right into price resistance levels.  Yesterday, resistance did its job preventing a follow move higher, and the clues to that possibility were evident to those that study price.

If your struggling, try cleaning up your charts and work on the fundamentals of technical analysis.  All those colorful charts sure look impressive but if it’s not making you money,  what’s the point of cluttering a chart with them?  We only make money when the price moves so put more effort into reading price, and your trading will likely improve.  After all, if your account is proving to you that what your doing now isn’t working then its time to make a change don’t you think?

On the Calendar

The Thursday Economic Calendar begins with the Weekly Jobless claims at 8:30 AM Eastern.  According to consensus estimates are expected to come in at 215,000 vs. 214,000 last week.  Also at 8:30 AM is the Philly Fed Business Outlook Survey which expects a slight pullback to 20.0 in October vs. the 22.9 reading in September.  After that, Leading Indicators @ 10:00 AM, EIA Natural Gas report @ 10:30 AM, 6-bond events @ 11:00 AM, 30-yr TIPS Auction at 1:00 PM, with the Fed Balance Sheet and Money Supply coming in @ 4:30 PM.  We have Fed Speakers at 9:00 AM and 12:15 PM today as well.

On the Earnings Calendar, we have the biggest day this week with 82 companies reporting.  Make sure you’re checking reporting dates before entering positions, with about 900 companies reporting next week traders will need to stay focused.

Action Plan

I don’t know if your like me but when the market is tossing about and I have little to no edge to trade, I tend to get a bit frustrated and bored.  That’s a dangerous combination of emotion for a trader!  Taking bad risks simply to have something to do can cause a lot of damage to a traders account.  So what’s a trader to do?  Here are few suggestions that always help me.

Clean up watch lists, work on your charting and trading platform to gain efficiency and learn new skills.  Study, new chart and candlestick patterns digging into the price action of the charts to improve your recognition skills.  Do a detailed review of past losing trades looking for mistakes that you can avoid in the future.  Learn that new a new trading strategy you’ve been putting off or do a deep dive into the details of the indicators you use.  Turn on your paper trade system and practice your price action skills or perhaps develop a new skill such as placing OCO & and conditional orders.  That’s just a few ideas off the top of my head that make times like this more productive, and in the long run make you a better more well-rounded trader.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/G8NR9yivJ-g”]Morning Market Prep Video[/button_2]

RBB Breakout Above $36.50

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RBB Breakout Above $36.50

ERY is on our watchlist, and we are looking for an RBB breakout above $36.50. The 2-Day chart shows impressive price action the past three days above the 50-SMA and the T-Line Regression lines. A pop on ERY could send the price to the Dotted Deuce for a nice little relief rally trade. The 200-SMA would be the stretch target. G

The Road to Wealth Update

As of the close 10/17/18, the account is on track with a 363% YTD. We are long WMT, and PZZA both are green and working (not very fast mind you). We only added one new trade yesterday. We are kicking of Road to Wealth Live today – more info to come.

 

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

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SPY • SP-500 What a Mess!

The SPY has lifted off the 200-SMA but remains in the sketchy territory. The Weekly is still looking at a red V-Stop and price on the weekly chart is still under all the T-line regression Lines sketchy, sketchy, sketchy. Above $280.45 the SPY could see $283.15, and that puts price closer to a resistance problem.

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****VXX – Over $32.50 the VXX could wake up.

Focus Trading Education

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

Testimonial

This is not your usual service that sends out a ton of stock recommendations, and then cherry picks the winners to show you how great they are. Hit and Run Candlesticks and Right Way Options are truly educational services. They taught me how to trade not what to trade. The entire team: Rick, Doug, Steve, and Ed are there to help and answer your questions. They are awesome. They cut years off my learning curve. And it’s a team effort. Everyone in the room (all the members) are there to help with invaluable insights and advice. The only service you will ever need. Thanks to all the team for how you have helped me and for all you do. –Jonathan Bolnick

Rare to have a service teach you how they find their choices but, HRC/RWO teach you how to fish instead of fishing for you. And, your ideas are not panned but shared, implemented, or improved. Sharing is caring. –Thomas Bradly

 

 

Past performance is not indicative of future returns

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, Right Way Option, Trader Vision 2020, Top Gun Futures or Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is not a licensed financial adviser nor do they offer trade recommendations or advice to anyone.

 

 

10-16-18 eLearning

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Open Question/Answer Session

In this video, Doug Campell fills in for Rick and covers markets as well as a wide range of trading topics.  Many tools, techniques and tickers are covered.

1 hour 23 minutes

[video_player type=”embed” style=”1″ dimensions=”custom” width=”640″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]PGlmcmFtZSBzcmM9Imh0dHBzOi8vcGxheWVyLnZpbWVvLmNvbS92aWRlby8yOTU2NjU4ODAiIHdpZHRoPSI2NDAiIGhlaWdodD0iNDgwIiBmcmFtZWJvcmRlcj0iMCIgd2Via2l0YWxsb3dmdWxsc2NyZWVuPSIiIG1vemFsbG93ZnVsbHNjcmVlbj0iIiBhbGxvd2Z1bGxzY3JlZW49IiI+PC9pZnJhbWU+[/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

COLL Setup and Trade Plan

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Today’s Featured Trade Idea is COLL .

Members can join us in Trading Room #1 as Rick reviews this setup and other Trade-Ideas at 9:10am Eastern.  For now, here are my own analysis and a potential trade plan made using our Trader Vision 20/20 software.

Note: Beware the overall market indecision. Mixed trends (short and long-term) and very volatile action (many “gap and fade” as well as intra-day reversals) make this a treacherous market.  Bear Market bounces are not when we should be getting very long in our account unless we are very quick and agile in our trading style.

COLL has been in a long-term downtrend but has been forming a bottom over the last couple of months. We can see a double bottom in September and an Inverted Head & Shoulders pattern of sorts forming since August. In early October it also broke into an RBB pattern and then consolidated at resistance (neckline of the Inv. H&S). Tuesday it completed a Morning Star type signal to break through that resistance.

I will look for an inside day Entry, perhaps on a retest of the b/o to prove Support) using a Stop below Tuesday’s candle and Targets defined by S/R levels from Weekly charts.

Trader Vision warns us to think before taking this trade. We have about 3 weeks until the next earnings report. However, the biggest concern is the very volatile overall market that has been Bearish both long and short-term until yesterday. Caution is advised.

TV20/20 also tells us this trade plan offers over 11% in potential reward. However, within my position-sizing rules, it does not have the potential to reach this account’s Trade Goal. It offers relatively small risk to Stop Out($90), but does not quite achieve a 2:1 Reward/Risk at the 1st Target. However, at the 2nd Target, the overall trade can achieve a 3.25:1 Reward/Risk.

Again, both common sense and Trader Vision are urging caution in this market. While this is a nice chart setup, not every day is one to be trading and a Bear Market Trend bounce it’s certainly not a great time to be taking on as many Long trades.

Having this knowledge before a trade is even entered makes it much easier to control emotions and maintain discipline.

Below is my markup of the chart and the trade plan as laid out by Trader Vision 20/20.  As a bonus, if you click the green button below, you’ll be able to watch a video of the chart markup and trade planning process.

The COLL Trade Setup – As of 10-16-18

COLL Chart Setup as of 10-16-18

The Trade Plan

COLL Trade Plan for 10-17-18

Note how Trader Vision 20/20 does so much of the work for you.  Knowing the ratio of Bullish Conditions to Bearish ones as well as the overall risk of the position size, the risk to Stop out and the Reward possible at each Target price can help a great deal with controlling our emotions.  Knowing the dollar impact of every scenario ahead of time, allows us to make calm decisions during the trade.  It really takes the pressure off.  No guesswork.  No surprises.  No emotional roller coaster.

To see a short video of this trade’s chart markup and trade planning, click the button below.

 

[button_2 color=”light-green” align=”center” href=”https://youtu.be/XBlG8v9RHoM” new_window=”Y”]Trade Plan Video[/button_2]

Put the power to Trader Vision 20/20 to work for you…

[button_2 color=”orange” align=”center” href=”https://hitandruncandlesticks.com/product/trader-vision-20-20-monthly-subscription2/” new_window=”Y”]TV20/20 Software[/button_2]

 

Testimonial

Trader Vision immediately simplified the process…immediately it provided that information and guidance to me. I knew what I would risk for how much reward, I began taking trades off at the 1st target, 2nd target, I was no longer holding all my trades for the homerun. I also began implementing the stop losses if and when they were reached, not just hoping the stock would recover.  It then became easier to see what patterns were working for me and which were not.  It provided a much more relaxed and stress-free environment. –Joan G

 

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Investing and Trading involve significant financial risk and are not suitable for everyone. Ed Carter is not a licensed financial adviser nor does he offer trade recommendations or investment advice to anyone. No communication from Hit and Run Candlesticks Inc. is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

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Maintain an Edge

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Maintain an Edge

Maintain an EdgeTrading during the volatility of a major selloff is always challenging but double up on the volatility adding in an earnings season, and traders will likely find it very difficult to maintain an edge.  Trading without an edge is gambling with the house odds stacked heavily against you.  Gambling can certainly be exciting at the beginning but keep in mind at the end of the day there are no medals for bravery in the market.

Trading is a marathon, not a sprint and if you expect to win you have to stay disciplined to a plan.  If the market is open, many traders feel the pressure that they have to trade, but trading just for the sake of trading is a business model for losses.  If you have an edge, then by all means trade!  If you don’t have an edge and stand aside, you protect your capital.  Losing can certainly be character building, but the winner will be the one that traded wisely growing the account trading only when they had an edge.  Who would you prefer to be?

On the Calendar

The Wednesday Economic Calendar starts early with the MBA Mortgage Applications report at 7:00 AM Eastern.  The market-moving Housing Starts at 8:30 AM expects a slight decline in starts to 1.216 million while at the same time permits are rising to 1.272 million according to consensus estimates.  !0:30 AM brings the EIA Petroleum Status Report with a Fed Speaker to follow at 12:10 PM.  Then we will get a little insight into what the FOMC thinks when they release the last meeting minutes at 2:00 PM.

On the Earnings Calendar, we have 63 companies.  As earnings season continues to ramp up, make sure you are planning all your trades having checked them against the earnings calendar.

Action Plan

After such a blowout report by NFLX yesterday afternoon, Asian markets closing bullish across the board and European markets mostly positive, US Futures are pointing to a modest decline at the open.  After rising 547 points in the Dow yesterday, I view only a slight pullback as a substantial win this morning.  However, as the indexes rush back up into major resistance levels, we need to watch for potential pullback and failures.

Earnings season and how companies report will add a significant challenge for swing traders.  Volatility will remain high and we significant overnight index reversals are certainly possible greatly diminishing the swing traders edge.  However, this could be a very good environment for day traders capable of handling very fast price action.  Standing aside and waiting for your edge to return is a very viable solution to this problem.  You have nothing to prove by fighting the market and will gain no honor in doing so.  That is, of course, easier said than done so if you do decide to trade, consider smaller positions and a willingness to remain flexible and take profits faster in this volatile environment.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/ioeOjrBQ0wY”]Morning Market Prep Video[/button_2]

 

Bullish Constructed Double Bottom RBB Setup

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Bullish Constructed Double Bottom RBB Setup

What do you get when you have a bullish constructed double bottom, a price action breakout of the 50-SMA on better than average volume followed by supported consolidation and a Bullish Morning Star? When the 200-SMA is the target direction, you have an (RBB) Rounded Bottom Breakout. COLL is set up as an (RBB) trade with the max target being 23%. The (RBB) set up is one of my favorite strategies and is a great risk/reward trade.

The Road to Wealth Update

As of the close 10/16/18, the account is on track with a 360% YTD. One of the strategies I use is the (RBB) Rounded Bottom Breakout. Tonight 10/17/18 I will be presenting a workshop on the (RBB) Rounded Bottom Breakout. To read more about it and Super Bonus Click Here. What would 360% do for you?

[button_2 color=”red” align=”center” href=”https://ob124-cb6085.pages.infusionsoft.net/” new_window=”Y”]Did You Read About the Workshop?[/button_2]

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

____________________________________________________________

SPY • SP-500

The SPY is trying to build a bounce trade off the daily 200-SMA and the weekly 50-SMA. Yesterday the buyers came to town looking for a fight, they got it and won. Price closing over the Dotted Deuce yeast was impressive and positive but did not fixe the chart to be crazy bullish. I do see a Low and a high; now we need a test for a higher low and breakout of the high then we would have a tradable bottom in the SPY.

Subscription Plans • Private 2-Hour Coaching

****VXX – The VXX chart is currently being rejected by the 200-SMA, this very normal in this type of chart pattern.

Focus Trading Education

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

Testimonial

This is not your usual service that sends out a ton of stock recommendations, and then cherry picks the winners to show you how great they are. Hit and Run Candlesticks and Right Way Options are truly educational services. They taught me how to trade not what to trade. The entire team: Rick, Doug, Steve, and Ed are there to help and answer your questions. They are awesome. They cut years off my learning curve. And it’s a team effort. Everyone in the room (all the members) are there to help with invaluable insights and advice. The only service you will ever need. Thanks to all the team for how you have helped me and for all you do. –Jonathan Bolnick

Rare to have a service teach you how they find their choices but, HRC/RWO teach you how to fish instead of fishing for you. And, your ideas are not panned but shared, implemented, or improved. Sharing is caring. –Thomas Bradly

 

 

Past performance is not indicative of future returns

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, Right Way Option, Trader Vision 2020, Top Gun Futures or Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

Rick Saddler, Doug Campbell, Ed Carter, Steve Risner is not a licensed financial adviser nor do they offer trade recommendations or advice to anyone.