Unique Technical Picture

by

Unique Technical Picture

Unique Technical PictureTraders face a rather unique technical picture this morning.  The QQQ, & IWM have obviously suffered some significant technical damage that could take weeks to repair.  At the same, time with the SPY holding onto its 50-day average and the DIA holding onto the support of its current uptrend a quick recovery would appear very doable.  Such an imbalance among the indexes could make for some very challenging price action and contradictory signals.

Both Asian and European saw more selling overnight, and the US Futures are pointing to a gap down open this morning.  However, with having tested important support levels on Friday, I would keep my eyes glued to price action looking for clues of at least a small bounce after the open.  Please, keep in mind that volatility could create significant whipsaws and fast price action not suitable for inexperienced traders.  Bottom picking is a very dangerous business and to be honest a very nasty habit.  Wait for good price action clues and always have a quick exit plan if you’re wrong.  If you try to fight the market as a retail trader, plan to watch your money disappear.

On the Calendar

A very light day to begin the 2nd week of October on the Economic Calendar.  There is only one report the entire day, and the TD Ameritrade IMX number is not a market-moving number.

On the Earnings Calendar, we have only six companies reporting quarterly results.  Unless you happen to be holding one of these companies, there is nothing particularly notable about those reporting today.

Action Plan

Markets appear to have had a pretty rough night with Asian markets closing down across the board.  European are also currently under pressure this morning with the FTSE, DAX, and CAC continue to sell off.  Consequently, US Futures are also under pressure selling pressure this morning with the Dow currently suggesting a gap down of more than 75 points.  On Friday the SPY closed very near its 50-day average while the QQQ sliced through the 50 finally finding some price support around 178.  Although the DIA experienced selling it’s the only index that found the support of its uptrend holding above the 20-day average.  The poor IWM is the complete opposite having plunged all the way down to it’s 200-day average a creating significant technical damage.

The sharp spike in the VIX suggests a higher level of volatility could be with us for a while with also means higher prices for options contracts.  However, with T2122 in the bullish reversal zone, I would watch for the possibility of a bounce after the opening gap down.  Remember the clues will always be in the price action.  Don’t anticipate a bounce, wait for proof that sellers are out of energy and buyers are stepping up to take over.  We could simply consolidate near the lows before resuming the sell-off so be patient an watch for clues.  Also, the possibility of quick intraday whipsaws, head fakes, and fast price action would make the day very challenging.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/y4FJEkacy7Y”]Morning Market Prep Video[/button_2]

Bearish Doji Continuation Candle Pattern Past performance is not indicative of future returns

by

Bearish Doji Continuation Candle Pattern

The bearish Doji Continuation candle pattern (price action) on MNK is a trade I’m looking at for about a 15% stock trade or a possible 40% plus directional option trade. Around $21.00 offers support and a target with price following the current trend down. Price closing above the 50-SMA would negate the short trade, while a rally and fail closer to the 50-SMA would be a good set up. I am adding MNK to our watchlist; this is not a recommendation to buy or sell MNK or any other instrument we mention.

 “Are you a day trader or a swing trader?”

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

____________________________________________________________

SPY • SP-500

Rough week for the SP-500 (SPY) last week, the SPY closed with a weekly Bearish Engulf. The SPY daily chart shows Friday’s candle (price action) found a little support on the 50-SMA. The current 3-Day trend has been controlled by the bear engine therefor I would have to be a bit more bearish than bullish at the moment. Friday did not give up a reversal bullish buy signal. A little rule I use is the 80/20 rule, 80% of stocks follow the SP-500 (SPY), so I ask you what is the SPY telling you the last three days?

****VXX – The VXX challenged the 50-SMA Friday and may try to close above the 50-SMA over the next couple of days. A close over the 50-SMA would suggest a challenge of the 200-SMA may be next.

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.

 

 

ZNGA Setup and Trade Plan

by

Today’s Featured Trade Idea is ZNGA.  (Make sure you consider the Bearish overall market in the short-term and the fact that this is Friday, meaning we have weekend headline risk to handle.  However, if you can accept those things, perhaps leaning on the longer-term indices stall all being bullish, the a ZNGA long will be today’s featured trade idea.)

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.

Consider the overall market AND the fact this is Friday and we have weekend headline risk ahead of us. That said, our featured trade idea will be ZNGA.

ZNGA has been in a downtrend since the beginning of summer. However, the bulls are starting to move, printing a Morning Star type signal (off the 50sma) on Wednesday and following-through to break through the downtrend as well as a resistance level on Thursday.

I will look for even more confirmation with an Entry above Thursday’s high. The initial Stop will be down at the bottom of the candle bodies from this week (which is also where a 10/1.5 Volatility Stop would place the Stop). Targets are set off longer-term chart Support/Resistance levels.

Trader Vision tells us we have about a month until the next earnings report. It also says that this chart setup offers 3 bullish conditions and 2 bearish conditions as well as plenty of liquidity.

TV20/20 tells us the trade plan offers a good Reward/Risk at the 1st Target (2.62:1) and if we need to sell the entire position at Target #1 we will achieve our Trade Goal. However, if we can sell half there (to lock in profit) and hold the rest up to the 2nd Target, we can make a 3.88:1 Reward/Risk ($558/$144).

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 ZNGA Trade Setup – As of 10-4-18

ZNGA Chart Setup as of 10-4-18

The Trade Plan

ZNGA Trade Plan for 10-5-18

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/MbOWrLB2cd0″ 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.

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

HZNP Setup and Trade Plan

by

Today’s Featured Trade Idea is HZNP (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.

HZNP had been in a long-term uptrend as seen by the 50sma and 200sma. About a month ago, it started forming a topping formation. Then in mid-Sept. the bears stepped in and crashed it back down through the 50sma. It tried to climb back above, but failed. This is the classic “Blue Ice Failure” pattern named by the lat Dave Elliott. It also shows a “Dreaded h” pattern and in fact printed a Bearish Engulfing of a Doji at the retest failure of the 50sma. All very bearish signs.

I will look for a Short Entry on negative trading, using an initial Stop as defined by the “10/1.5” V-Stop. Targets were chosen off of longer-term charts. (The 200sma is usually the target on a Blue Ice Failure.)

Trader Vision shows us that we should have over a month until the next earnings report. It also shows us that this chart setup is exhibiting 3 bullish and 3 bearish conditions…and that there is plenty of liquidity for a short.

TV20/20 also tells us that this trade plan will require HZNP to fall down between the 1st and 2nd Targets in order to make our overall Trade Goal. However, this plan does achieve 2:1 Reward/Risk at the 1st Target and 2.62:1 ($374/$143) at the 2nd Target.

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 HZNP Trade Setup – As of 10-3-18

HZNP Chart Setup as of 10-3-18

The Trade Plan

HZNP Trade Plan for 10-4-18

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/_ocSt34sdk4″ 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.

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

COTY Setup and Trade Plan

by

Today’s Featured Trade Idea is COTY.

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

COTY was in a long-term downtrend most of the year. Then in August, the Bulls stepped in to begin a rally. After a failed attempt in late August, COTY broke through the 50sma into a RBB pattern last week.

Following a short profit-taking pullback the bulls stepped back in. On Tuesday the chart printed a Bullish Engulfing of a Dragonfly Doji-type candle in a Pullback Opportunity Pattern.

I will look for follow-through to break out of what will then be a J-hook. My initial Stop will be below a recent Support line with Target defined by longer-term charts.

Trader Vision tells us we have about 2 months until the next earnings on COTY. It also shows us that we have 3 bullish (should be 4 with a signal) and 3 bearish conditions on this chart setup.

TV20/20 also tells us that this trade plan can offer a 5.02 : 1 overall Reward/Risk if all 3 Targets are reached. At the 2nd Target, the R/R would be 3.5 : 1 and at the 1st Target he R/R would be 2.28 : 1. TV20/20 also tells us we need to reach $14.22 in order to chieve 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 COTY Trade Setup – As of 10-2-18

COTY Chart Setup as of 10-2-18

The Trade Plan

COTY Trade Plan for 10-3-18

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/bLHLZuT-qMs” 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.

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

Adding To My Watch-List

by

Adding To My Watch-List

(RBB) Rounded Bottom Breakout Setups

XENT / daily chart

WIN / daily chart

HAL / daily chart

FTR / 2-day chart

UGAZ / 2,3 and weekly charts

GPRO / 3-day and weekly charts… Disclosure I am long GPRO

(RBB) workshop detail Click Here • Discount Ends Today

[images style=”0″ image=”http%3A%2F%2Fhitandruncandlesticks.com%2Fwp-content%2Fuploads%2F2018%2F10%2FRBB-10-2-1.png” width=”706″ link_url=”%20https%3A%2F%2Fob124-10cd91.pages.infusionsoft.net%2F” new_window=”Y” align=”center” top_margin=”0″ full_width=”Y”]

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

____________________________________________________________

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.

 

Bull and Bear Battle

by

Bull and Bear Battle

Bull and Bear BattleToday could be a very interesting Bull and Bear battle.  At this time the Bulls continue to hold the high ground with the DIA, SPY, and QQQ holding onto current trends.  However, with the US Futures currently pointing to a gap down open this morning, the bears have a chance to produce a bearish Island Reversal pattern.

As of late morning, rallies have met with afternoon profit-taking raising the questions about the strength of the bulls as we test market highs.  Perhaps the Bulls are simply playing possum to get enough trades short to pull off a short squeeze rally.  Unfortunately, with the overall breadth down-trending we should prepare for the possibility of a market pullback.  Let me be clear; there is no reason for panic, but there is reason for caution and preparedness.  Stay focused on price action for early clues to direction.

On the Calendar

We have a light day on the Economic Calendar this Tuesday.  Early this morning the Motor Vehicle Sales report expect an improvement for total unit sales in September with a reading of 16.9 million annualized rate vs. 16.6 million in August.  The Redbook comes out @ 8:55 AM Eastern, a Fed Speaker @ 10:00 AM, a Bond Auction @ 11:30 AM, the Fed Chairmen himself closes out the calendar day speaking at 12:00 PM.

On the Earnings Calendar, we have 12 companies reporting today with PAYX and PEP as the most notable and both before the bell.  PEP reported well very early this morning.

Action Plan

As we would expect, the market was relieved, and reacted very bullishly, to the completion of the North American Trade agreement.  Unfortunately, the big rally struggled with the price resistance near all-time highs as profit-taking began to take hold.  The QQQ printed a new record high by a single point before sellers started to take over.  Asian markets closed mixed but mostly higher, but European Markets are currently seeing red across the board.

US Futures are currently under pressure this morning currently suggesting a gap down open.  As of this moment, the market looks to open below yesterdays open in the DIA, SPY, and QQQ which has the potential to produce a bearish island reversal pattern.  Overall up-trends continue to favor the bulls except for the IWM that yesterday produced a nasty bearish engulfing candle the broke below the long-term uptrend.  The bears could easily gain the upper hand unless the bulls mount a solid defense.  I suggest approaching the market this morning with a little caution this morning until we get a clearer picture.  As always stay focused on price action for clues.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/Zqcs5DE8oeQ”]Morning Market Prep Video[/button_2]

HAL Setup and Trade Plan

by

Today’s Featured Trade Idea is HAL.

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

HAL was in a downtrend all summer. However, the bulls stepped in during early September to start a strong month-long rally. After breaking above the 50sma (into a Rounded Bottom Breakout pattern), it ran into a S/R level and has formed a nice Bull Flag pattern as traders took profits from the rally. This also puts HAL in a nice Inverted Head and Shoulder pattern, with the S/R level as the neckline. Then on Monday, it printed a Hammer signal off the 50sma.

I will be looking for follow-through to give me a B/O Entry above the Resistance / Neckline level. The initial Stop will be down at the 50sma and I have chosen 2 Targets from longer-term charts.

Trader Vision 20/20 tells us that we should have about 3-4 weeks before earnings come around again. It also tells us this chart setup offers 4 bullish conditions and the only 2 bearish conditions are to be expected from a RBB pattern (long-term downtrend has not flipped bullish yet) during a short-term overall market pullback.

TV20/20 also tells us that this plan offers a good Reward/Risk (2.71:1) at the 1st Target, with the potential to book close to our Trade Goal ($325/$350) if we need to sell at that level. However, if we can sell half at Target #1 and hold the remainder until we reach Target #2, we can book a 3.33:1 Reward/Risk and clear $400 in profit.

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 HAL Trade Setup – As of 10-1-18

HAL Chart Setup as of 10-1-18

The Trade Plan

HAL Trade Plan for 10-2-18

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/9QE_6hdH7RI” 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.

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