VXX Remains a Bullish Chart

October 26, 2018 by Rick Saddler

VXX Remains a Bullish Chart

The VXX chart remains a bullish chart pattern, yesterday in the trading room I mentioned that as long as the VIX is a bullish chart pattern, the market will remain bearish.

Holly cow, another 300 point drop this morning in the DOW, and a test of yesterdays low. And we are flirting with January 1, 2018 numbers. The SPY and the DIA charts are bearish patterns even with the Harami that printed yesterday.

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.

YouTube Education

Today’s Featured YouTube Video is How To Setup The T-Line Bands; Please don’t forget to subscribe to my FREE YouTube Channel.

New Live Day Trading Room Open House

Top Gun Day Trading is a new division of Hit, and Run Candlesticks with its very own trading room. Come check it out until October 31, for free. Login Here

[button_2 color=”blue” align=”center” href=”http://hitandruncandlesticks.webinato.com/room3″ new_window=”Y”]Day Trading Open House – Free Entry Until October 31[/button_2]

Past performance is not indicative of future returns

Happy Friday!

Good Trading, Rick, and Trading Team

Membership Services • Private 2-Hour Coaching

—————————————————————————————-

Past Performance Is No Guarantee of Future Results

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.

FANG has a Cavity

October 26, 2018 by Doug Campbell

FANG has a Cavity

It would appear that after the very disappointing earnings results from AMZN and GOOG that the so-called FANG has a cavity. Indeed a very big cavity that spread its pain all around the world. Both, Asian and European market are both lower this morning. US Futures indicate that yesterday’s 400 point Dow rally will be completely wiped out this morning with an ugly gap down open.

As painful as this might be for you this morning I want to leave you with a positive thought as we head into the weekend. Good stocks are falling to fire-sale prices which mean there will be some amazing bargains when this is over. For most traders, the best course of action in such high volatile times is to stand aside and protect your capital. If you try to fight it, your money will disappear. Better days are on the way, just be patient and wait for your edge to return.

On the Calendar

We have a light day on the Friday Economic Calendar, but it begins with the heavyweight market-moving GDP 8:30 AM report. The consensus estimate expects a 3.3 percent annualized vs. 4.3 percent in the second quarter. The GDP price index is seen declining to 2.0 percent vs. the 3.0 last reading. Consumer Sentiment is expected to show confidence to remains very strong with a reading of 99.0 in October. We wrap up the calendar week with the Baker-Hughes Rig Count at 1:00 PM.

On the Earnings Calendar, there are 67 companies expected to report results.

Action Plan

With the hugely disappointing results in the big tech earnings after the bell futures are pointing to a very nasty gap down this morning. AMZN is currently indicated to lose more than $170 a share from yesterdays close with GOOG close behind dropping nearly $70 a share. It would seem FANG has a huge and painful cavity!

Yesterday’s 400 point Dow rally looks to be completely wiped out at the open today. The big question now on the mind of the market; Will Thursday’s low hold as support? If not the next strong level of support is about 600 points lower in the Dow and 75 points lower in the SP-500. The pain has spread around the world with Asian markets closing sharply lower and European markets all in the red this morning. With a 400 point overnight reversal, expect very fast price action and the possibility of panic selling if the supports fail. Better days are coming, and with stocks dropping to fire sale prices there will be a great opportunity when this is over. Have a great weekend everyone.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/_3QUwjFRzik”]Morning Market Prep Video[/button_2]

VRS Blue Ice Short Setup Short on price action below $28.57

October 25, 2018 by Rick Saddler

VRS Blue Ice Short Setup

VRS is presenting us with a Blue Ice Failure Pattern the Dredded Bearish “h” pattern and the V-Stop. VRS has been trending up and started to show signs of fatigue early October. The early October weekly Evening Star pushed price below the V-Stop and to the 50-SMA where price tested and even tried to become bullish again; the sellers did not see that way. Price has closed below the 50-SMA. Short on price action below $28.57.

YouTube Education

Today’s Featured YouTube Video is Shorting The Blue Ice Pattern; Please don’t forget to subscribe to me FREE YouTube Channel

Our New Live Day Trading Room

Top Gun Day Trading is a new division of Hit, and Run Candlesticks with its very own trading room. Today is an open house and a special free webinar starting at 2:00 pm today. Login Here

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

____________________________________________________________

SPY • Squeezed Like a Lemon

2018 gains have been squeezed out of the market like you would squeeze a lemon! Yesterday the SPY (S&P-500) printed another new low squeezing all the gains out of the market but I am very happy to report Hit and Run Candlesticks is up over 350% and members have reported positive numbers as well! I truly believe the key has been strong education and the power of respecting the trend and price action. I ended yesterday closer to cash because of is a way to volatile. The trend is down but we are very oversold, and a relief rally is near. When I see a clear dominate trade, I will take it another wise I will stay cautious.

Yesterdays low $264.70 is the new mark for the bulls to defend and $274.95 is a number the bulls need to capture, followed by $278.25.

Free YouTube Education

Subscription Plans • Private 2-Hour Coaching

****VXX – The VXX will pop over the 200-SMA today, for those of us in this trade remember you profiting rules.

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

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.

VRS Setup and Trade Plan

October 25, 2018 by Ed Carter

Today’s Featured Trade Idea is VRS short.

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.

VRS has formed a Head & Shoulders pattern, coupled with a Blue Ice Failure pattern and a Dreaded-h pattern. It has broken (or is testing) the last Support level before a large void down to the $22.45 area.

I will look for a short entry on follow-through with a substantial Stop and a single target (off daily and weekly charts).

Please consider the volatile market with big candles and also earnings. Trading at all at such times is a very risky proposition.

With at least 3 weeks until earnings and one bullish to 5 bearish conditions, VRS a nice chart setup. However, keep in mind the very volatile market and the risk that earnings throws the market the other direction.

TV20/20 tells us this plan offers a nice 3.27:1 Reward/Risk ($605/$185). That would equate to a 21.23% gain. However, it requires a bit more risk to stop-out than I’d prefer…and the market has been very volatile. Pre-markets are also indicating we’ll gap higher and there are many earnings out before, during and after the session. Caution is the word of the day.

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 VRS Trade Setup – As of 10-24-18

The Trade Plan

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/K6ue6zLSZIo” 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

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

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.

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

Capitulation

October 25, 2018 by Doug Campbell

Capitulation

The news-driven selloff seems to have finally reached a capitulation point yesterday. Sadly those that sold yesterday afternoon had also to suffer the indignity of seeing the futures bounce strongly almost immediately after the closing bell. Although we should expect volatility to remain very high with very fast and challenging price action, I think we have reached the point where institutions and value buyers will begin to support current prices.

Of course, earnings are the big unknown and if we see some of the big techs disappoint the market, the bears could easily maintain control. With the VIX closing above a 25 handle, any major disappointment in earnings could evolve from fear into outright panic. Consequently, the price action will most likely be very challenging and not a place for those faint of heart. Extreme intraday whips are possible so plan your risk very carefully.

On the Calendar

We begin Wednesday with three potential market-moving reports at 8:30 AM Eastern. First, Durable Goods Orders expects September to decline by 1.5 percent after surging 4.4 percent in August. International Trade in Goods sees the deficit narrowing to 74.7 billion vs. 75.5 billion in August. The Weekly Jobless Claims are expected to remain near historic lows but rising slightly to 212,000 this week. After that Retail Inventories and Wholesale Inventories @ 8:30 AM, Pending Home Sales Index @ 10:00 AM, Natural Gas Report @ 10:30 AM, Kansas City Fed Manufacturing Index, and 2-Bond Announcements @ 11:00 AM, a Fed Speaker @ 12:15 PM, a Bond Auction at 1:00 PM, the Fed Balance Sheet and Money Supply at 4:30 PM, and a Fed Speaker to finally close the calendar day at 7:00 PM.

There are far too many notable companies to list this morning. We have 339 companies reporting today on the Economic Calendar including several big techs that typically move the market. Make double sure your checking current holdings for earnings.

Action Plan

Yesterday I mentioned with T2122 indicating an oversold condition that I was favoring a bounce for Wednesday. However, as the news rolled out about explosive devices sent through the mail, the market has other plans. It’s unfortunate that many traders were likely squeezed out and then saw the futures almost immediately rebound after the bell.

Looking over the internal damage, I believe we have finally reached that critical capitulation point where we will see institutional and value buyers begin to support current prices. Volatility will likely remain very high and with more than 300 companies reporting today very fast price action will make it very challenging. Keep in mind that if this is the market low at some time in the future, it is very likely to be retested. Of course, if some of the big tech names reporting disappoint today, the bears could easily push on lower. Plan your risk very carefully and the weekend approaches.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/a9bAk5j8djA”]Morning Market Prep Video [/button_2]

10-23-18 eLearning

October 24, 2018 by Ed Carter

Can You Really Make

Consistent Profit in Stocks?

In this video, Doug Campbell talks about the Volatility Stop as a tool for high-probability trading and consistent profits trading with the trend. This webinar is a must see!

1 hour 17 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

Whiplash

October 24, 2018 by Doug Campbell

Whiplash

Yesterday’s wild price fluctuations may have left many traders with a nasty case of whiplash. Unfortunately, it looks like the volatility is here to stay and with more than 200 companies reporting earnings today and more than 300 tomorrow, anything is possible.

Looking at the market internally I believe, and short-term oversold condition currently exists. However, with the likelihood of big morning gaps and nasty intraday whipsaws, profiting from this condition will be a very challenging and high-risk endeavor. Just because the market is open is not a good reason to put capital at risk. Only trade when you believe you have an edge and feel you can handle the emotional effects of high volatility. Remember cash is a position and there is no shame in protecting your capital in times like this.

On the Calendar

The Economic starts early today with the MBA Mortgage Applications at 7:00 AM Eastern. The Housing Price Index comes out @ 9:00 AM and then the PMI Composite Flash at 9:45 AM. The New Home Sales report expects to hold steady with an annualized rate of 625,000 in September vs. 629,000 in August and is the most likely report to move the market today. At 10:30 AM is the Petroleum Status Report which is also potentially market-moving however not forecast by consensus. After that, we have a Fed Speaker @ 11:30 AM, a bond auction @ 11:30 AM, a Fed Speaker @ 12:30 PM, a bond auction @ 1:00 PM, another Fed Speaker, and the Beige Book @ 2:00 PM, finally closing the calendar day at 7:00 PM with you guessed it; another Fed Speaker.

On the Earnings Calendar, we have a very busy day with 227 companies stepping up to report. Some of the notables are: ALXN, AMP, APH, BKU, BPOP, BSX, BXMT, CB, CHKP, CNI, COF, CSL, DTE, EQR, EW, FCX, GD, GRA, HA, HIW, HLT, IR, IRBT, ITW, JNPR, LH, MANH, NAVI, NDAQ, NSC, NYCB, OC, PB, QSR, RES, RHI, ROIC, ROL, RRC, SEIC, SIX, SMPL, STL, STM, T, TER, TMO, TPH, TRVG, TSS, TUP, TXN, UPS, VAR, WRB

Action Plan

After sinking more than the 500 points from Monday’s low, the Dow bulls managed to recover a good deal of its losses closing down just 125 points on the day. All four of the major indexes made substantial recoveries, but unfortunately, some of those gains will be swept aside with the futures currently suggesting a gap down of more than 100 Dow points at the open. As I mentioned in yesterdays note, expect lots of volatility, and so far the had delivered exactly that!

With more than 200 companies reporting earnings today and VIX holding above a 20 handle we can expect the wild price action to continue. With daily triple-digit market gaps and large intraday whipsaws maintaining an edge for the swing trader is near to impossible. If you do trade, I highly suggest smaller than normal positions to help reduce risk. I also think it’s wise to take profits quickly because a market gap and instantly turn winners into losers. Internally the market appears to be in a short-term oversold condition, but as we experienced yesterday, earnings can easily keep the bears engaged.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/N7jqR2i0-s8″]Morning Market Prep Video[/button_2]

Caution

October 23, 2018 by Doug Campbell

Caution

Caution Lately, I repeatedly mentioned the necessity of caution with the current market condition. It’s a message that traders never like to hear, but that doesn’t make it any less true. Currently, the futures are pointing to a gap down on nearly 400 points. A brutal reminder that the market will punish those trading a bias rather than heeding the warnings in the price action of the chart.

Obviously, volatility will be extremely high this morning. Expect very fast price action this morning with huge intraday whipsaws. Early panic could easily lead to additional selling this morning. Don’t chase this gap down short and don’t assume that buying this dip will be a profitable gamble. Let’s hope cooler heads prevail, but this kind of massive technical damage will likely take a long time to repair.

On the Calendar

There are no expected market-moving events on the Tuesday economic calendar. We have the Redbook@ 8:55 AM, Fed Speaker at 9:30 AM, Richmond Fed Mfg. Index at 10:00 AM, three Bond events between 11:30 AM and 1:00 PM, with four more Fed Speakers @ 1:30 PM, 2:15 PM, 615 PM and at 8:00 PM to close the calendar day.

On the Earnings Calendar, there are 139 companies reporting earnings today. I highly recommend that you check all current and proposed positions against the earnings calendar. With the current high volatility of the market failing to do so could prove to be an expensive lesson.

Action Plan

Last Friday I warned of a possible pop and drop. Yesterday I suggested the same possibility and to watch for very high volatility. I have intentionally used the phrase “be careful” several times in the morning videos when going over the index charts pointing out the potential stumbling blocks. Yesterday I received criticism for doing so and was accused of trying to politically correct. I’m not sure how my expression of caution is considered politically correct, but my read of the price action seems to have been correct.

I’m writing this not because my feeling were hurt or that I’m angry about the criticism. I bring it up because it’s a lesson on bias, and how that effect a trader. We may not like what the price action is telling us, but that doesn’t make it any less accurate. Every trader has the choice to move with the market or fight it. It’s been my experience that only one of those choices allows you to say in the game and grow your account over the long-term. With the futures suggesting nearly a 400 point gap down today, I suspect those that choose to fight the market will once again have to suffer the consequences of defiance.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/zn-4NObYEZk”]Morning Market Prep Video[/button_2]