Dow near record highs

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Dow near record highs

near record highsHistorically September is a down month according to the Traders Almanac, but it would appear the bulls didn’t receive that memo with the Dow near record highs.  In fact, the bulls only need to gain 1% to breakout to new highs in the Dow and with the futures suggesting a gap up open the SP-500 is poised to set a new record at the open today.  The QQQ and the IWM are lagging behind that’s not likely to deter the bulls from getting that bullish headline accomplished.

Keep in mind that the Dow has rallied just over 320 points in just 2-days.  Chasing this move now so close to highs would we unwise because profit-taking could begin at any time as we move toward the weekend.  Also, keep in mind that the FOMC meeting begins next week and the odds of an interest increase are very high so plan accordingly.  Fast price action, head fakes, whipsaws, and reversals tend to be prevalent at new market highs so stay on your toes and focused on price.

On the Calendar

A busy day on Thursday’s Economic Calendar begins with two market-moving at 8:30 AM Eastern.  First, the Weekly Jobless Claims expect the initial claims to come in at 210,000 bouncing 2K after 2-weeks at 50-year lows.  Second, the Philly Fed Business Outlook Survey has consensus looking for a  reading of 19.6 for September up sharply from 11.9 in August.   !0:00 AM brings the Existing Home Sales report which expects a modest increase to 5.360 million annualized vs. July’s 5.340 million.  Also at 10:00 AM we get the Leading Indicators report followed by the 10:30 EIA Natural Gas Report.  We have 7-Bond events between 11:00 AM and 1:00 PM today and wrap up the calendar day with Fed Balance Sheet and Money Supply at 4:30 PM.

On the Earnings Calendar, we have just 11 companies reporting today with DRI and THO among those reporting before the bell.  After the bell, MU and SCS are the most notable of the afternoon reports.

Action Plan

So far the market has certainly bucked the trend of weak September results with the Dow now just 1% away from new record highs and the SP-500 only 8.3 points away from all-time highs.  Although the number of stocks helping to lift the market has been in steady decline, it seems unlikely that the bulls will stop just short of a new Dow breakout.  Asian markets closed mixed but mostly modestly higher while European markets are currently decidedly bullish across the board.  Consequently, US Futures are pointing to a gap up open.

Remember to be careful chasing a gap especially at or near new record highs.  The Dow has rallied more than 320 points in just 2-days.  A push to new record highs seems very likely but keep in mind profit taking at the highs is also not out of the question.  As we head toward the weekend riding this big bullish wave make sure to take some profits along the way.

Trade Wisely,

Doug

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SYMC Setup and Trade Plan

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Today’s Featured Trade Idea is SYMC.

Members can join us in Trading Room #1 as Rick reviews the SYMC 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.

SYMC has been forming a Rounded Bottom for some time. On Tuesday it broke into an RBB pattern and is nearing a S/R level (seen on daily and weekly charts).

I will look for a b/o Entry with a Stop not far above the 50sma. The 2 Targets come from S/R levels seen on the Weekly chart and the 2nd will likely be near the 200sma when SYMC reaches that level.

Trader Vision tells us we have a month and a half until the next earnings. It also shows us that this chart setup offers 4 bullish conditions and 2 bearish conditions.

TV20/20 tells us that this plan will give us a 2.9:1 Reward/Risk at the 1st Target and a 4.6:1 Reward/Risk overall if we reach the 2nd target ($100/$460). It also shows us that the trade needs to reach just 30 cents above our 1st target in order to achieve our trade goal.

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 SYMC Trade Setup – As of 9-18-18

SYMC Chart Setup as of 9-18-18

The Trade Plan

SYMC Trade Plan for 9-19-18

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, 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.

 

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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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Breakout Upper T-Line Band RBB Strategy Bullish above $20.85, stop near $20.35

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Breakout Upper T-Line Band RBB Strategy

Breakout of the Upper T-Line Band and an RBB strategy, SYMC is one of ten that I am adding to our hot list of trade ideas. After the gap down in May SYMC has been constructing a bottom. Price action the past few weeks has found what seems to support and has created a nice channel to trade on a bullish breakout. Yesterday price broke out of the channel on good volume and put SYMC in an (RBB) Rounded Bottom breakout pattern/strategy with the 200-SMA about 20% away. Bullish above $20.85, stop near $20.35

Increase your wealth by selling into strength, (Base Hits) watch your account grow.

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

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SPY • Harami

The Spy closed yesterday with a Harami in the t-Line Band Trap area above the recent low and below the recent high. The trend is still bullish as price action moves into a narrowing pattern. Yesterday candle attempted but failed to break out of the August 29 high. The battle between the buyers and sellers will be about the possible $291.60 breakout or the pullback as the sellers would like to have it. So how do we separate noise from real chart action, breakout or breakdown? I have found that using a defined trend and a trend area can be very helpful.

 

****VXX – The VXX is working on a Bullish Engulf followed by an inside day. The inside day (yesterday) is a little Hammer; the hammer is illustrating the fight between the buyers and sellers. Who won if the candle body closed in the upper end of the range? Just my humble opinion but I think we have some hedging going on.

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

Subscription Plans • Private 2-Hour Coaching

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.

 

 

Responsibility

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Responsibility

ResponsibilityLet’s talk a little about a traders responsibility.  The last few weeks has without question been challenging for swing traders with all choppy price action and intraday reversals.  I’ve been hearing from a lot of traders lately siting consistent losses and blaming all there woes on the news, market makers and White-house and various other villains.  At the risk of sounding harsh, if a trader is consistently losing money, the fault lies directly on the trader’s shoulders.  The responsibility for success or failure is ours and ours alone.

If your constantly losing money continuing to do the same things over and over and expecting a different result is insanity.  Stop trading and get some help immediately!  Your account is proving to you that there is a problem and its time to fess up and take responsibility.  If you don’t, plan to be one of those poor soles providing liquidity to the market until your money is gone!  Being responsible is never easy, but it’s also the only path to lasting success as a trader.

On the Calendar

An early start on the Wednesday Economic Calendar with the MBA Mortgage Applications report at 7:00 AM.  The potential market-moving Housing Starts report at 8:30 AM which expects an increase to a 1.240 million annualized rate for starts in August and permits rising to 1.3.15 million.  Also at 8:30 AM is the Current Account report.  Closing out the calendar day at 10:30 is the potential market-moving EIA Petroleum Status Report that is not forecast by consensus estimate.

On the Earnings Calendar, we have 12 companies reporting results today.  Most notable before the bell is CPRT and after the close RHT steps up to the plate.

Action Plan

Yesterday was a great day with the Bulls firmly in control and the Dow closing 184 points higher.  The QQQ had a very nice rally but by the end of the day failed to hold above a key resistance level so follow-through bullish price action is extremely important for the index.  The last thing we need is a failure resistance!

Asian markets closed higher overnight, and European markets are flat to modestly higher this morning.  As a result, US futures are currently pointing to a flat to slightly bullish market open.  After such a strong move yesterday a little rest or even some profit-taking is not out of the question.  The DIA and SPY are in a good position for a little rest or even a minor pullback, but keep a close eye on the QQQ and IWM because if they give up very much ground, the bears might sense weakness and attack.  So let’s go bulls!

Trade Wisely,

Doug

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Price Action Setting Up Above The T-Line Bullish buy above $5.26 and a stop below $4.90

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Price Action Setting Up Above The T-Line

Price action is set up above the T-Line.  As you can see in the past 12 days price action has swung from above the High T-Line Band down to the Low T-Line Band and now broken out above the green V-Stop dot. The past three bars are resting for the next profitable leg. GOGO is a beautiful (RBB) Rounded Bottom Breakout with almost 50% profit potential to the 200-SMA. Bullish buy above $5.26 and a stop below $4.90

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

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SPY Evening Star

Yesterday the SPY ran into a roadblock and threw us an Evening Star that suggests a few days of a sellers party. Let’s keep in mind the trend is still pretty much intact, and I see the morning futures are trying to regain lost ground from yesterday. The day before yesterday price finished above the T-LineH and yesterday started below the T-Linh and finished below the T-Line Low. On the positive side, the recent candle lows can act as support, and we have gree V-stops below to help with support. On the dark side, we are looking at an Evening Star, the Star in a lower high. We seem to have a few pieces to the puzzle, but a few more are needed. My goal today is to protect my positions with stops, go to the back on some and maybe close losers. Could be a pretty cold wet day out there today, may just pass on hunting today.

****VXX – Yesterday printed a Bull Engulf, the morning futures today is trying to take it back, could be a fun battle today.

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

Subscription Plans • Private 2-Hour Coaching

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.

 

 

GOGO Setup and Trade Plan

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Today’s Featured Trade Idea is GOGO.

Members can join us in Trading Room #1 as Rick reviews the GOGO 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.

GOGO has been in a bullish trend for the last 1.5 months. In the last few days, it has been consolidating between 2 Support/Resistance levels. On a breakout, it will get into a large “waterfall” candle that will act like a gap. However sometime during the time it takes to fill that waterfall, it will run into potential resistance at the 200sma.

For planning/analysis purposes, for my Target price, I chose a level along the recent trend that should be near the 200sma when GOGO reaches that point. I will look for a b/o Entry and an initial Stop below the most recent Support.

Trader Vision shows us that earnings are out of the way and we have 2+ months until they come around again. It also lets us know this trade has 3 Bullish Conditions, but 2 Bearish Conditions, making it less of a “slam-dunk” setup. Specifically, there is no buy signal, the ticker has not reversed its downtrend yet and the short-term market trend is not Bullish. However, since we can address those issues to our satisfaction we can ahead with planning (especially since this is a small trade relative to the account size).

TV20/20 tells us this trade plan offers a great Reward/Risk (4.42:1) and that we can achieve our trade goal by the time we are halfway to the single target price. While this is great, it should also be a reason for some caution that we are being optimistic. There are likely to be some down days and/or consolidations along the way to filling that 30% run.

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 GOGO Trade Setup – As of 9-17-18

GOGO Chat Setup as of 9-17-18

The Trade Plan

GOGO Trade Plan for 9-18-18

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, 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/C3GPQbCajTw” 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

 

***************************************************************************************************

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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Markets hate Uncertainty

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Markets hate Uncertainty

Markets hate UncertaintyMarkets hate uncertainty.  The swirling threat of tariffs has weighed heavily on the mind of the market for the last couple weeks.  Now that unknown is finally behind us the market can deal with the reality and get back to business.  Asian and European markets all responded higher, and the US Futures are pointing to bullish open as well recovering about half of yesterday’s losses in the SPY and the DIA.

Having lost a key level of support, the QQQ is showing a slight bounce back this morning, but it’s currently much more muted than that of the DIA and SPY.  We will have to watch it closely over the next few days to see if it can recover.  Even though futures are suggesting, bullishness be very careful not to get caught up and chase into the gap up open.  Give it time and wait for follow-through buyers to prove they support the opening prices.  Remember the lower risk entry occurs at or near price support.

On the Calendar

The Tuesday Economic begins at 8:55 AM Eastern with the Redbook.  At 10:00 AM Housing Market Index forecasters expect a 67 reading in September which is unchanged from August and the lowest reading in a year.  We have just one Bill Auction at 11:30 AM today.  Then the Treasury International Capital at 4:00 PM which is not forecast by consensus.

On the Earnings Calendar, we have 11 companies reporting with the most notable being AZO and GIS before the bell.

Action Plan

I must admit to being surprised to see the US futures pointing to a higher open this morning the 10% tariffs against 200 billion in Chinese products beginning next Monday.  Of course, China has already stated they will retaliate.  Putting on a brave face Asian markets closed higher across the board overnight, and European markets are also currently showing nothing but gains.

As of right now, the Dow is pointing to a gap up recovering more than half of yesterdays losses shrugging off tariff worries.   The SPY, QQQ, and IWM also indicate a higher open this morning, but the QQQ is in the most precarious position having closed sharply below a key price support.  Be careful not to rush into the gap waiting for follow-through buyers to prove their support of the gap.  Fast price action and quick reversals are certainly possible as the market reacts to the news.

Trade Wisley,

Doug

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