Whipsaw rally

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Whipsaw rally

Whipsaw rallyA big morning gap down followed by a sharp whipsaw rally closed the day with the indexes testing resistance levels.  It was nice to see the Bulls defend, but the question remains if they have the energy to reclaim this week’s highs.  With trade war rhetoric flying around ahead of the weekend we will have to stay focused on price action and remain flexible.

With so much uncertainty and choppy price action, it’s very easy to get caught up in the drama and find yourself over-trading.  This is the kind of market that can chop a traders account to pieces if you’re not careful and very disciplined to a set of rules.  If you see your accounts grow, then congratulations and keep up the good work.  However, if you see your accounts in decline, then it’s time to stop, and regroup.  Remember doing the same thing over and over and expecting a  different result is the definition of insanity.

On the Calendar

The Friday Economic Calendar gets going with two market-moving reports before the bell at 8:30 AM Eastern.  First, the Employment Situation report which is expected to remain very strong with an increase of 190,000 new jobs.  Consensus says the unemployment rate is 3.9 percent in July with a 0.3 percent gain in hourly earnings with average hours worked at 34.4.  Second, the International Trade report expects the trade deficit in goods to widen slightly to 45.6 billion vs. the May reading of 43.1 billion.  Then at 10:00 AM the ISM Non-Mfg. Index according to consensus will decline to 58.8 but continues to show exceptional strength.  We a PMI Services Index report @ 9:45 and the Baker-Hughes Rig Count @ 1:00 PM to close out a very busy calendar week.

On the Earnings Calendar, the earnings reports slow down with just under 100 companies fessing up to their results.  We have more than 1300 companies reporting next week so keep us on our toes.

Action Plan

After a substantial morning gap down the Bulls charged attempting to shake off trade war jitters and keeping traders off balance with the ship price action.  As good as it was to see the Bulls defend, please keep in mind yesterdays rally let the indexes ver near resistance levels.  Asian markets were mixed last night with European markets all slightly higher.  Currently, the Dow Futures suggest a flat to slightly bullish open but keep in mind that could quickly change with a couple big market-moving Economic reports before the bell.

The choppy price action has been challenging, and that could continue with another big round of earnings next week.  A,s you know, I like to reduce my weekend risk by taking some profits and avoiding adding new trades on Friday.  However, you never say never and with so many reports now in the rearview mirror there are good opportunities as long as we can stay out of a trade war with China.

Trade Wisely,

Doug

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A Bullish Morning Star On Support A Bullish Morning Star on support should catch a few eyes

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A Bullish Morning Star On Support

A Bullish Morning Star on support should catch a few eyes. FBP was in a nice bullish trend from January to about June, June to now FBP has consolidated with a slight price dip and a rise creating cup like J-Hook pattern. You can see it on a 3-day chart. About nine days ago price challenged the June high and seemed to be winning; the last three bars have drawn a Bullish Morning Star pattern on a support, the T-Line, and the V-Stop.

For more details on the FBP trade, please click the following link. Get the complete details including Fibonacci details TV2020 trade plan right here

Past performance is not indicative of future returns

Good Trading, Rick, and Trading Team

HRC Monthly Trading Results Right Here  Each, and every day we not only share trade ideas we also share how we plan to trade them.

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What is Rick is adding to his trade watchlist today? A 200% plus increase in 7 months can’t be all wrong.  Right Here

SPY • Support Line Being Tested

It looks like the price will test one of our support lines we had drawn today $278.90. Our next horizontal support line is about $275.75, between the lines we have an ascending support line for the lows. If you take a look at the last five daily candles on the SPY, you can see the sellers have a better plan than the buyers do. Another chart I look at is; VT, and we were doing so well above $75.15, below $7515 is not too good for the bulls. Be careful the trade war issue will cause a choppy and perhaps a bloody market which causes blood in your account. Know when to step back!

****VXX – Keep an eye on the VIX it will help you the amount of fear that’s growing or leaking.

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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

To learn more about our trading tools join us in the trading room or consider Private Coaching.

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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

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 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.

 

 

FBP Setup and Trade Plan

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Today’s Featured Trade Idea is FBP.

You can read more about this trade in Rick’s blog post here.  Members can also see his detailed review in the trading room at 9:10am Eastern.  For now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

FBP printed a Morning Star that found Support (bounced off of) the recent b/o level after a 2 month consolidation. On higher trading, I’ll look for an Entry just above the Wed. Close. The Stop will be tight below the Support of the b/o level and Targets will come from Fib Extensions of the pre-consolidation run up.

Trader Vision tells us we have 3mo. until the next earnings report, as well as 6 Bullish and 1 Bearish (short-term trend) condition on this setup. It also tells us that the Trade Plan offers low Risk ($135) to the Stop, with 2:1 Reward/Risk at the 1st Target and almost 3:1 if both Targets are reached. Finally, TV20/20 tells us that FBP needs to reach $9.14 for us to make the Trade Goal on this trade.

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 FBP Trade Setup – As of 8-1-18

FBP as of 8-1-18

The Trade Plan

FBP Trade Plan for 8-2-18

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.

 

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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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Trade War Jitters

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Trade War Jitters

Trade War JittersThe insipid price action of yesterday made for a day about as exciting as watching paint dry.  Then after the bell, the White House stated that the President is considering raising tariffs by 25% on Chinese goods.  Markets hate uncertainty and re-ignition of trade war jitters moved Asian and European markets sharply lower overnight.  US Futures are currently pointing to a significant gap down which will beak important price support levels and current trends in the index charts.

If you have money at risk, there will likely be losses today.  Try to avoid emotional decision such as chasing short trades or revenge trading.  Often that will only serve compound the losses.  Follow your trade plan and stick to your rules.  Taking a loss is never fun, but it’s part of being in business.  When is it good to take a $500 loss; When you have to take a $1000 loss later!  Stay calm, focused and disciplined.

On the Calendar

There are two potential market-moving reports on today’s Economic Calendar.  At 8:30 AM Eastern consensus expects a reading of 218,000 in Weekly Jobless Claims vs. 117,000 last week.  Then at 10:00 AM Factory Orders forecasters expect a solid increase of 0.9 percent.  We have the Natural Gas report @ 10:00 AM, two bond announcements @ 11:00 AM,  the Fed Balance Sheet & Money Supply closing the calendar day at 4:30 PM.

On the Earnings Calendar, we have nearly 500 companies reporting earnings today to keep us on our toes.  Make sure your checking date on stocks you own or are thinking of buying.

Action Plan

Yesterday’s price action was choppy and with a slightly bearish feel even after the FOMC decision not to raise rates this month.  Asian Markets tumbled during the night after in response to the President’s consideration of raising Chinese tariffs by 25%.  European markets are also sharply lower, and the US Futures are pointing to a gap down of more than 150 points as I write this.

I would suggest caution today as the market reacts to trade jitters and creates technical damage in the indexes by dropping through current support levels and trends.  Obviously, a morning gap down like this can create a lot of emotion and traders see once profitable positions turn into losses.  It stinks but its part of the business, and we have to roll with the punches and avoid making emotional decisions.  This is not the market to rush in and buy the dip.  Remain calm, focused and disciplined to your rules and trading plan.

Trade Wisely,

Doug

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7-31-18 Public eLearning

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Trading Today’s Market

In this video, Rick Saddler discusses how to analyze and trade today’s market effectively.  He reviews 33 charts you can add to a watchlist and how to use those tickers, not just to find trades, but also for education.  He then discusses most of these charts, discussing the layouts.

1 hour 15 minutes

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

[video_player type=”embed” style=”1″ dimensions=”custom” width=”640″ height=”480″ align=”center” margin_top=”0″ margin_bottom=”20″ ipad_color=”black”]PGlmcmFtZSBzcmM9Imh0dHBzOi8vcGxheWVyLnZpbWVvLmNvbS92aWRlby8yODI2NzI4ODYiIHdpZHRoPSI2NDAiIGhlaWdodD0iNDgwIiBmcmFtZWJvcmRlcj0iMCIgd2Via2l0YWxsb3dmdWxsc2NyZWVuPSIiIG1vemFsbG93ZnVsbHNjcmVlbj0iIiBhbGxvd2Z1bGxzY3JlZW49IiI+PC9pZnJhbWU+[/video_player]

 

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

[testimonials style=”8″ margin_top=”” margin_bottom=””][testimonial name=”Alan%20Helmstetter” company=”” href=””]%3Cp%3EI’ve%20been%20managing%20my%20own%20money%20for%20many%20years%20and%20have%20been%20interested%20and%20dabbled%20in%20trading%20stocks.%20I%20joined%20some%20services%20over%20the%20years%2C%20but%20none%20worked%20for%20me.%20I%20am%20getting%20closer%20to%20retirement%20and%20wanted%20to%20learn%20more%20about%20trading%20stocks%20as%20something%20to%20do%20in%20retirement%20and%20to%20supplement%20income.%20I%20learned%20all%20about%20candlesticks.%20Did%20much%20paper%20trading%20of%20stocks.%20Results%20were%20good%2Fbad%20and%20never%20got%20ahead.%20Came%20across%20a%20free%20HRC%20webinar%20and%20really%20liked%20the%20approach.%20Joined%20a%20month%20trial%20and%20also%20attended%20an%20RWO%20webinar.%20Decided%20to%20join%20RWO%20because%20of%20the%20options%20approach%20and%20have%20been%20a%20member%20for%20four%20months.%20Rick%20and%20Doug%20are%20the%20real%20deal.%20Both%20are%20amazing%20at%20reading%20charts%2Fprice%20as%20well%20as%20teaching%20their%20expertise.%20In%20the%20daily%20chatroom%20you%20will%20get%20potential%20trades%2C%20but%20more%20importantly%2C%20you%20will%20become%20part%20of%20a%20team%2C%20learn%20how%20to%20identify%20trades%20and%20even%20more%20importantly%20how%20to%20properly%20plan%20and%20manage%20trades.%20You%20know%20the%20adage%20–%20%22You%20give%20a%20man%20a%20fish%2C%20and%20you%20feed%20him%20for%20a%20day.%20You%20teach%20him%20to%20fish%2C%20and%20you%20give%20him%20an%20occupation%20that%20will%20feed%20him%20for%20a%20lifetime.%22%20%3Cstrong%3EGive%20them%20a%20try%20you%20will%20not%20regret%20it!%3C%2Fstrong%3E%3C%2Fp%3E%0A

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NSU Setup and Trade Plan

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Please join me for the free Trader Vision 20/20 Weekly Workshop.

TODAY at 4:15 pm Eastern in Room #3 (no password needed)

http://hitandruncandlesticks.webinato.com/room3

 (This week, I will be providing a first look at our new Scanning tool, as well as planning trades.)

 

Today’s Featured Trade Idea is NSU.

You can read more about this trade in Rick’s blog post here.  Members can also see his detailed review in the trading room at 9:10am Eastern.  For now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

Rick sees NSU as a Cup & Handle on the weekly chart. I’ll just call it a large rounded pullback that is now retesting the b/o level. In either case, on a b/o, this offers a nice setup.  Just beware the potential Resistance at $3.86-ish off the Weekly chart. However, I will look for an Entry on b/o above $3.75 (call it $3.77) with a Stop below the lows of the last 4 days. The Targets come off the Weekly chart at S/R levels in the $4.28 and $4.75 areas.

Trader Vision tells us we have earnings out of the way and a number of Bullish conditions in favor of this trade. It also tells us this plan works nicely, as we do not even need to reach Target #1 before we could sell the position and clear all the profit of our Trade Goal.  TV20/20 also tells us that if we had to sell the position at Target #1, we’d clear $500 and if we “traded the plan” we would get 5.59:1 Reward/Risk, clearing $740 in profit. That makes for an attractive plan.

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 NSU Trade Setup – As of 7-31-18

NSU as of 7-31-18

 

The Trade Plan

NSU Trade Plan for 8-1-18

 

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/YCcs_x76mVU” new_window=”Y”]Trade Plan Video[/button_2]

 

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

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

 

 

Testimonial

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

 

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

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A traders Edge

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A traders Edge

A traders edgeWith the market facing a big day of economic reports, nearly 350 earnings reports and an FOMC interest rate decision, it will be difficult if not impossible to maintain a traders edge.  Anything is possible and today might be better spent protecting your capital rather than pushing to take on new risk.  Fat price action, reversals and intraday whipsaws are possible and could make for a very challenging day.

Remember the fear of missing out is a very strong emotion that can cause some for some very costly trading mistakes.  Remember the quality of trades is more important than quantity and every day does not have to be traded to be successful.  If you don’t fee you have a traders edge, then stand aside and protect your capital.  There is no badge for the honor for charging forward blinding and watching your capital disappear.  Do you have an edge today?

On the Calendar

Another busy Economic Calendar this Wednesday that gets going early with Motor Vehicle Sales expecting 17.1 million annualized rate in July.  The ADP report at 8:15 AM expects a decline to 173,000 vs. the 177,000 in June, however, the actual government number came in 202,000.  At 9:45 AM the PMI Mfg. Index expects to show 55.5 in July which is unchanged from last reading.  Then at 10:00 AM ISM Mfg. Index expect to decline a slightly to 59.9 vs. 60.2 in June.  Also at 10:00 AM is Construction Spending expecting a slight gain of 0.3 percent in June vs. the 0.4 gain in May.  10:30 AM brings the unforecast EIA Petroleum Status Report, but certainly has the power to move the market at times.  Last but not least we will get the FOMC decision on interest rates at 2:00 PM.

On the Earnings Calendar, we have nearly 350 companies reporting results today.

Action Plan

I must admit I was hoping to see markets higher this morning in response to the positive earnings report from AAPL.  However, with Asian and European market mostly lower the early Futures are pointing to slight gap down at the open currently.  Keep in mind with a huge data dump of economic reports, pending FOMC decision on interest rates and nearly 350 earnings reports for the market to digest today anything is possible.

With most of the indexes hovering just above support levels we will have to watch price action closely for clues of change.  After the morning rush, we could see the market become quiet and choppy as it waits for the FOMC decision.  After the statement anything is possible, and there will linky be some fast price action as the market reacts.  It will be very difficult to maintain a trading edge today, and it may be wise to restrict your trading activity or simply stand aside to protect capital.  Remember you don’t have trade every day to be successful.

Trade Wisely,

Doug

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