Tenacious Bulls

August 30, 2018 by Doug Campbell

Tenacious Bulls

Tenacious Bulls gathered energy at the rest stop on Wednesday to once again set new records in the SPY, QQQ, IWM yesterday. What goes up must eventually come down, but with the possibility of a trade agreement between the US and Canada by Friday, I think it would be unwise to anticipate short positions.

However, with a 3-day weekend just around the corner and the likelihood that many traders will extend the holiday by taking off Friday and/or Tuesday don’t be surprised to see some choppy light price action. Also with the risk of market-moving news over a 3-day weekend don’t be surprised to see some profit-taking before the end of the week.

On the Calendar

Weekly Jobless claims kick off the Economic Calendar at 8:30 AM Eastern. Consensus expects claims to come in at 214,000 showing continued strong demand for labor. Also at 8:30 AM Personal Income and Outlays which expect incomes to rise 3.0 percent with consumer spending up 0.4 percent. The overall PCE is looking at a year-on-year rate of 2.3 percent which is an increase of 2 percent. At 10:30 we get the latest reading on US Natural Gas supplies, however, there is no consensus forecast. Then at 4:30 PM the Fed Balance Sheet. We also have three Bill Announcements at 11:00 AM and the Money Supply report at 4:40 PM.

On the earnings calendar, there are over 50 companies reporting today. Among those reporting before the bell, DG, DTLR, SHLD, and SIG. After the close AMBA, LULU, ULTA, and COO are among those reporting results.

Action Plan

More record closing highs in the SPY, QQQ, and IWM as the took advantage of Wednesday’s rest stop to gather energy. Unfortunately, Asian markets closed mostly lower overnight, and European are currently slightly lower across the board. US Futures are pointing to a lower open with the Dow currently suggesting a gap down of more than 50 points.

With the Labor Day 3-day weekend just around the corner, a little profit-taking after this strong bullish run would not be all that surprising. However, the Bulls have shown remarkable tenacity this week, and with the possibility of a Canadian/US trade deal by Friday, I wouldn’t want to anticipate a selloff by picking up some short positions just yet. I have been scaling out of trades and taking profits since Tuesday of this week and will likely continue to so lowering my risk as we head into the long weekend.

Trade Wisely,

Doug

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8-28-18 e-Learning

August 29, 2018 by Ed Carter

Trading the Market (Up or Down)

In this video, Doug Campbell discusses the current market conditions and reviews many charts, talking about how to analyze and trade the market…whether it is up or down.

1 hour 28 minutes

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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

WMGI Setup and Trade Plan

August 29, 2018 by Ed Carter

Today’s Featured Trade Idea is WMGI.

Here are my analysis and a potential trade plan made using our Trader Vision 20/20 software.

WMGI has been in a Bullish trend since early May. After the most recent profit-taking, the Bulls stepped back in. However, Monday was a bad day (on the announcement of pricing for an upcoming stock offering). Still, the Bulls bounced it up off of the 50sma on the day. Then Tuesday the Bears tried to push it back down only to be met by very strong Bull buying (causing a strong Bullish Engulfing signal). On positive trading, I will look to Enter with a stop in the $27.50 area. Targets are set by S/R levels and Fib. Ext. shown for corroboration.

Trader Vision shows us that earnings are out of the way and we have 2.5mo. before they will be a concern again. It also tells us we have 7 strong Bullish conditions and no Bearish conditions in this setup. This could make for a nice trade.

However, TV20/20 also shows us that we had to play with the trade plan in order to set up a trade that can meet our trade goals. We have to accept a slightly larger position size than we’d like. In addition, even though we will get 2:1 Reward/Risk, we have to sell only 60 shares at the 1st Target and the remaining 90 at the 2nd Target (giving us a 3:1 Reward/Risk overall) in order to achieve our Trade Goal on this trade. Obviously, neither of these adjustments are ideal.

While your account size and goals will differ from this example, the important thing to note is that TV20/20 shows us that a trade which looks good on the chart, in fact, may not meet our standards. Knowing this, instead of just taking the trade and finding out afterward is a powerful tool in our Trader’s Toolbox.

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 WMGI Trade Setup – As of 8-28-18

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, 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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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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Bullish Engulf Eats 12-1/2 Candles Bullish above $28.00 • risk protective stop near $27.50

August 29, 2018 by Rick Saddler

Bullish Engulf Eats 12-1/2 Candles

When a Bullish Engulf Eats 12-1/2 Candles, we call that a hungry candle. Yesterday the buyers created a very hungry candle in WMGI that seemed to get recharged with the 50-SMA. After reaching the $28.00 area, WMGI slipped to the 34-EMA and 50-SMA which acted support along with the weekly $26.40 line. The WMGI is a bullish chart, and after the bullish engulf clue we are looking for entry over $28.30 and a risk protective stop near $27.50

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

This link takes you to a project account that Rick started so members and students could see how it works Monthly Trading Results updated the first week of each month.

What’s on Rick’s watchlist today? A 246% plus increase in 7 months can’t be all wrong.

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SPY • Two Old Friends

Another close higher for the SPY and a nine-day T-Line Run. Yesterday’s candle closed below it’s open as if it realized price needs to slow down a little because it has moved too far from the T-Line. We have found that price action does not like to get to separate. Price could come to the T-Line or price could hang while the T-Line catches up. Either way, I see the two old friends getting together by Friday this week. Price closing above the T-Line makes the sky the limit r how high we can go, price slipping below the T-Line and price will step down on major moving average at a time.

T-Line • Traders Best Friend

With a 9-day T-Line Run, the bulls are feeling pretty good. The T-Line supports price action and when price flys high it will come back to the T-Line for a test.

****VXX – The VXX price action is trying to sneak above the T-Line, the price action seems to be slowly improving. A close above the T-Line will get us the 34-EMA.

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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

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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.

Rest Stop?

August 29, 2018 by Doug Campbell

Rest Stop?

After another day of record-breaking highs, the Bulls largely decided to relax at a rest stop yesterday afternoon. The question is will the Bull finish the remaining days so August strong or will they give the Bears a chance to feed. It’s common after a major break out to see a consolidation or pullback to test support. Unfortunately, there is no rule as to when that might occur.

Consequently, we have to stay with the current trend but prepare for the possibility of a pullback without bias. I have been taking advantage of the current rally by taking profits and lower my overall risk to a pullback. It’s very important to guard yourself against over-trading at or near market highs. I hope that this is just a rest stop, and we will close August strong, but hope never pays the bills. Stay focused on price action and always be prepared to protect your capital if the market decides to turn south and test support.

On the Calendar

Today’s Economic Calendar has three potential market reports. First, GDP at 8:30 AM is expected to come in 4.0 percent with consumer spending coming in at 3.9 percent and GDP price index is seen holding at 3.0 percent. At 10:00 AM, Pending Home Sales Index expect the July reading to come in unchanged at 0.9 percent. Then at 10:30 AM is the EIA Petroleum Status report which is not forecasted forward but has recently shown an build in US supplies. Other than that we have Corporate Profits @ 8:30 AM, the State Street Investor Confidence Index @ 10:00 AM, Bond Auctions @ 11:30 AM & 1:00 PM, with Farm Prices @ 3:00 PM to wrap up the day.

The Earnings Calendar today shows over 40 companies fessing up to results. Among them, before the bell is AEO, DKS, and MOV. After the close CRM, GES, and PVH are among those reporting.

Action Plan

Another day another record high close for the SPY, QQQ, and IWM indexes. However, yesterday the Bulls seemed to run out of energy, but interestingly enough the Bears seemed to remain in hiding. Asian markets closed mixed while the European markets all appear to be drifting lower. Currently, US Futures appear mixed and at the moment point to a relatively flat open.

Hopefully, you have taken advantage of the rally and taken some profits because the market seems a bit unsure at the moment what comes next. Commonly after a big break out prices will pull back to test support. However, this could also be just a rest stop along the way to higher prices to finish out the month strong. Only time will tell, and we will have to stay focused on price action to find the clues. Historically, September and October are challenging months with higher volatility, but with the market currently very strong, there is no clue to that so far. Stay with the trend but be careful not to overtrade around market highs. The Bears are not showing themselves at the moment, but we know there always lurking around waiting to feed on unprepared trader accounts.

Trade Wisely,

Doug

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Morning Star Alert (RBB) Test PBO Bullish above $5.80 with a stop around $5.55

August 28, 2018 by Rick Saddler

Morning Star Alert (RBB) Test PBO

FTR formed a weekly Morning Star alert signal that has pulled in enough buyers to hold over the 50-SMA. The daily chart shows us a bullish breakout over the 50-SMA followed by 5 bars testing the 50-SMA fo form a little bullish flag pattern. FTR is now set up in an (RBB) Rounded Bottom Breakout pattern/strategy where we look for a bullish reach of the 200-SMA. Looking for a bullish buy over $5.80 and target zones up to about 25%. A protective stop of about $5.55 will help protect against big losses.

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

This link takes you to a real account that Rick started so members and students could see how it works Monthly Trading Results updated the first week of each month.

FTR $654.00 Trade Plan Click Here

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SPY • Up Up And Away

The Bulls are out of the pen with the freedom of no past resistance to run free. The breakout was a beautiful orchestration of bullishness, the follow through has been strong, and the trend has been super. Let the bulls run…. Easy traders, let’s remember that price action will have minor to painfull pullbacks, price action likes to test recent bullish price moves. Are morning prayer “We swing traders will NOT chase on fear of missing out” We will wait until a good bullish chart (Like The SPY) see’s profit taking and bulls back into trend support and then show signs of buying.

T-Line • Price Leaves T-Line

Price has gapped away from the T-Line, their future is always the same. They will meet up again.

****VXX – Showed no sign of real fear yesterday, The VXX is trying to slow it’s decent down and trying to work on a higher low.

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Past performance is not indicative of future returns

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

FTR Setup and Trade Plan

August 28, 2018 by Ed Carter

Today’s Featured Trade Idea is FTR.

Here are my analysis and a potential trade plan made using our Trader Vision 20/20 software.

FTR has been a bullish trend the last month. After breaking into an RBB pattern (and through a resistance level), it has consolidated…holding that level as Support. It printed a Morning Star on Friday and followed-up with an indecisive Doji/Spinning Top on Monday.

I will look for a b/o buy with my Stop below the most recent candles. Targets are defined off the Weekly Chart S/R levels.

Trader Vision tells us that earnings are out of the way and that we have at least 4 Bullish conditions (Pattern should also be bullish) versus only 1 Bearish condition (short-term bias has been a consolidation/pullback. It also tells us we can get a plan a trade with good profit potential while keeping both our “Risk to Stop-out” and position size very reasonable.

TV20/20 then tells us this plan offers great potential. We could sell the entire position at about three-fourths the way to the 1st Target and still achieve our Trade Goal. At that 1st Target we would be getting about 2.85:1 Reward/Risk, but if we can sell half there and hold the other half to the 2nd Target, we can get 4.19:1 ($654 / $156) Reward / Risk Ratio.

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

The FTR Trade Setup – As of 8-27-18

The Trade Plan

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

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Their horns are still very sharp!

August 28, 2018 by Doug Campbell

Their horns are still very sharp!

The Bulls proved their horns are still very sharp as they pushed the Bears back on the news of a US-Mexico trade agreement. All four major indexes printed new record highs, and the only hint of profit-taking came in the IWM as it pulled back before the close. Today the Bulls certainly have the advantage of momentum, and current Futures suggest another modestly bullish open. However, after such a big surge in price, it would not be out of the question to see some profit-taking begin soon.

As a full-time trader with a family that depends on me, I make a habit of taking some profits when the market is showing strength. Consequently, I went to the bank yesterday and plan to do the same today. I’m always very grateful with the market give up profits so easily on a big surge. As traders, we all want more, but the last thing we want to do is allow greed to prevent us from taking profits.

On the Calendar

International Trade in Goods tops the Tuesday Economic Calendar at 8:30 AM eastern and is a potential market-moving report. According to forecasters, the good deficit will widen to $69.4 in July vs. $67.9 billion in June. At 9:00 AM is the S&P CoreLogic Case-Shiller expects home prices to gain 0.2 percent in June holding the year-on-year at 6.5 percent. Consumer Confidence is at 10:00 AM continues to strength expecting at the reading of 126.8 in August. Other than that we have Retail Inventories & Wholesale Inventories @ 8:30 AM, Redbook @ 8:55 AM, Richmond Fed Manufacturing Index @ 10:00 AM, State Street Investor Confidence Index @ 10:00 AM, and Bond Auctions @ 11:30 AM & 1”00 PM to close the calendar day.

We have 40 companies reporting with BBY and TIF among those coming before the market open. Among the reports after the bell, today is HPE and HRB.

Action Plan

A very nice bullish surge as the US and Mexico come to an agreement on trade yesterday. The DIA, SPY, and QQQ left behind open gaps as well as closed at new record highs. The IWM also saw a strong bullish surge but was unable to hold on to those gains throughout the day leaving behind a shooting star candle pattern. European markets are modestly bullish across the board this morning while the Asian markets closed the day relatively flat. Currently, the Dow futures are pointing to a modestly bullish open but with earnings and economic news before the bell that could certainly change.

Momentum up favors the bulls but keep in mind profit-taking could begin at any time considering yesterdays big move. As the market rallies, remember to take some profits along the way. Never want to allow greed to get in the way of taking profits.

Trade Wisely,

Doug

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