Defensive Stocks

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Defensive Stocks

Defensive StocksConsumer defensive stocks have quietly risen out of bottom patterns over the last few weeks, and many of them showed a burst of bullish energy yesterday.  I’m beginning to wonder if we’re starting to see a quiet institutional rotation toward safety with so many of tech stocks priced at or near perfection levels.  Please understand I’m not making a prediction I’m only pointing out what I see in charts.

The current trends are still up, and the Bulls continue to hold onto control as the majority of earnings thus far have been positive.  Like I always do I will be ringing the register and taking some profits to lower my weekend and risk.  Next week is another huge week of earnings so rest up this weekend because we could be in for another wild ride next week.  Remember to take a look at those defensive stocks.

On the Calendar

We start the Friday Economic Calendar at 8:30 AM Eastern with the GDP report.  If consensus is correct, the President is going to get the reading on GDP that he wants with a four in front.  GDP expects a very strong 4.2 as the first estimate of the 2nd quarter with Consumer spending rising 2.9 percent.  Forecasters see Consumer Sentiment at 10:00 AM to come in unchanged with a solid reading of 97.1 in July.  The Baker-Huges Rig Count will close out this light calendar day at 1:00 PM.

On the Earnings Calendar, we have nearly 80 companies reporting with the vast majority of them coming in before the bell.  Some of the noteworthy are, XOM, PSX, CVX, WY, TWTR, CL & GT.

Action Plan

Overnight Asian markets finished the day mixed while Europian markets are rising across the board with the trade tensions now in the rearview mirror.  AMZN reported well last night but INTC another tech bellwether disappointed the market and is indicated sharply lower this morning.  Consequently, US Futures indicate a mixed open with Dow pointing higher and the Nasdaq flat to slightly lower.  Of course, that could easily change as we move toward the open due to a large number earnings reports before the bell.

Friday’s are more of a take profits focus rather than adding new risk ahead of the weekend.  Although it’s likely, I will stick to that pattern but never say never as there are always possible trades setting up.  So far the vast majority of earnings reports have been positive even with the disappointments from some of the so-called FANG stocks.  However, there still seems to be a bit of tentativeness in the overall market with so many stocks priced for perfection.  There was a noted improvement in consumer defensive stocks yesterday which may be a clue to an underlying rotation to safety.  I wish you all a fantastic weekend.

Trade Wisely,

Doug

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OI Setup and Trade Plan

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Today’s Featured Trade Idea is OI.

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.

OI popped into a Rounded Bottom Breakout pattern on 7/24 (off earnings) and has consolidated with a little profit taking since. It has a Resistance level just overhead and the 50sma not too far below. I will be looking for a breakout Entry using the Thursday Candle Body Low as a Stop and next Resistance (off Weekly) as 1st Target. The Second Target price is another Resistance level as well as the 200sma.

Trader Vision shows us we have 3 months until earnings and 5 Bullish versus 1 Bearish condition. It also tells us that this plan would give us $145 Risk to Stop from the Entry and $383 (2.64:1 Reward/Risk) if we sold the entire position at the First Target. If we sold half there and held the rest until the Second Target we could make $465 (3.2:1) overall.

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 OI Trade Setup – As of 7-26-18

OI chart as of 7-26-18

 

The Trade Plan

OI Trade Plan for 7-27-18

 

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/ncWavUzy2Tk” new_window=”Y”]Trade Plan Video[/button_2]

 

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

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Testimonial

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

 

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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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Friday, July 27, 2018 Weekly Update Thank you for reading our blog

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Friday, July 27, 2018 Weekly Update

For the past 15 trading days, the SPY been trending above the T-Line and the T-Line has been rising (higher highs), and the 34-ema is doing the same. This past week has been nearly a perfect storm for perfect trading. Overall there are more positive earnings results than negative, and the market seems to like that (go figure). As of the close yesterday, our Red, White and Blue chart is bullish; we will continue to follow the chart and update our members each day.

The VT chart I have been following has turned up and is acting better for the bulls. VXX continues to trade below the T-Line, below the T-Line we have very little concern.

Trading Results

About the 6th of August, we will be able to update the “Road To Wealth” Account with the July numbers so you can follow along. I can give numbers as of yesterday’s close. 2018 YTD (Through July 26) +223% and for July +13%

To view the Hit and Run Candlesticks 2018 project account “Trading for Wealth.” Click Right Here

How would you like to see every trade I make when I make it? Do you think it would help you with your education if you follow along? If so, Click Here and email me a note.

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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.

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Information overload

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Information overload

Information overloadInformation overload!  A barrage of earnings data, economic and political data will sweep over the market today.  Futures suggest a modestly bullish open on the Dow while the Nasdaq braces for a substantial gap lower as 150 billion in FB value evaporated after the bell yesterday.  At the same time, the market is breathing a sigh of relief with the agreement reached between the US and Europe averting a battle of tariffs.

How will the market respond?  Your guess is as good as mine, but I plan to approach the morning cautiously and prepared for an extra dose of volatility.  Expect fast price action and be prepared for quick reversal and whipsaws.  Stay focused, flexible and disciplined.

On the Calendar

We kick off the Thursday Economic Calendar with three 8:30 AM report with the potential to move the market.  Durable Good orders are looking for a gain of 3.2 percent bouncing back on May’s 0.6% decline due to a surge in aircraft sales.  Remove transportation and core goods, and consensus expects a solid increase of 0.5 percent.  International Trade in Goods according to forecasters will see the deficit widen from 64.8 billing in May to 67.2 in June.  The Weekly Jobless Claims expects to show strong labor demand but with claims increasing this week to 219,000.  Non-market- moving events include Retail & Wholesale Inventories @ 8:30 AM, The Natural Gas Report @10:30 AM, Kansas City Fed. @ 11:00, 3 Bond Events between 11:00 AM and 1:00 PM, Fed Balance Sheet & Money Supply wrapping up the day at 4:30 PM.

Today is the biggest day of the week on the Earnings Calendar with more than 320 companies scheduled to report.  Stay on your toes.

Action Plan

The market has a lot to react to today that could create significant price volatility.  First, we have more than 320 reporting earnings this morning.  Secondly, the Tech sector will have have to face the huge disappointment from FB earnings and the stock erasing 150 billion in value overnight.  Last but not least a major agreement between the US and the EU effectively ending the trade war with one of our strongest allies.  As I write this, the Dow Future are pointing to a slightly bullish open, but the Nasdaq is bracing for a rough open after the sharp decline in FB.

I think its fair to say anything is possible so stay flexible and focused on price action.  Plan to see some very fast price action during the morning rush and remember fast intraday reversals are possible with so much data to chew through.  Prepare for what could be a wild and challenging day.

Trade Wisely,

Doug

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BIG Flag Print In A Rounded Bottom Breakout

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BIG Flag Print In A Rounded Bottom Breakout

BIG has presented a flag pattern in a Rounded Bottom Breakout pattern/strategy. For the past 4-months BIG has constructed a bottom with highs and lows. This past ten days or so BIG has challenged the highs and is winning. With followthrough from the flag pattern, I see a swing of about 13.5 to 21.5%. An Option trade could also be a consideration.

On Thursday, July 26, at 8:00 PM Doug Campbell with be hosting a Workshop “Trends With Benefits.” If you would like to learn more about the workshop Click Right Here.

For more details on the BIG 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

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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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SPY • Price and The T-Line

The SPY pop $2.40 yesterday closing only $2.57 from the 2018 highs. With a 17 day, T-Line run the Bulls have done a fantastic job of running the Bears off. Using the V-Stop, price action and a daily chart I see support on the SPY near $281.05. Using the V-Stop, price action and a 2-day chart I see support near $278.60. The SPY seems to be holding up pretty well as I write this 5:00 AM EST. Considering FB. Keep your eyes on the QQQ’s today/

****VXX – As long as the price stays below the T-Line we have no worries, above the T-Line, we worry.

Members Login for what Rick is adding to his trade watch list Right Here

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

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

 

 

BIG Setup and Trade Plan

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Today’s Featured Trade Idea is BIG.

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.

BIG is working on a Rounded Bottom Breakout and has consolidated for a week right above the b/o level (proving it is Support). I will be looking for a Consolidation b/o buy area with the first Target defined by Weekly Resistance about $46.90. The second Target set off Weekly chart is $50.19-ish, but we’d have to break the 200sma to reach that. So I’ll bank on this trade making its gains between the 2 Targets.

TV20/20 tells us that BIG has at least a month until earnings and has a number of Bullish conditions in its favor. Be aware that it also tells us we need to reach above Target #1 to make this Trade Goal ($350 profit), but can make 2.5:1 Reward/Risk at Target #1 and if we follow this plan $485 if both Targets are reached.

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 BIG Trade Setup – As of 7-25-18

BIG as of 7-25-18

 

The Trade Plan

BIG Trade Plan for 7-26-18

 

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/tVE_yvf4OCs” new_window=”Y”]Trade Plan Video[/button_2]

 

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

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Testimonial

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

 

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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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7-24-18 Public e-Learning Effectively Using Brokerage Orders

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Effectively Using Brokerage Orders

In this video, Doug Campbell discusses how to use different types of Brokerage order effectively, in order to make your life easier as a Trader.  Numerous charts and trades are reviewed and used as current examples.

1 hour 28 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

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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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Fear-Of-Missing-Out

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Fear-Of-Missing-Out

fear-of-missing-outDuring earnings season all traders experience the Fear-Of-Missing-Out emotion.  We see the big price moves and the potential of making the big bucks, and we race blindly to get our piece of the pie.  As emotion grows, discipline gets pushed aside, and the trader begins to break every trading rule in the book.  If you owned a trading firm and your traders acted in such a way you would fire them on the spot. Right?

Remember trading is a business.  You are competing with the best and brightest and believe me; they want your money as much as you want theirs.  As a retail trader, you must hold yourself accountable and maintain your discipline at all times.  If you let emotions such as the Fear-Of-Missing-Out drive your decision making then get ready to watch your money disappear.

On the Calendar

New Home Sales and the Petroleum Status Report are the potential market-moving events on today’s Economic Calendar.  According to consensus the June new home sales at 10:00 AM eastern will decline to 668,000 vs. 689,000 May reading.  Then at 10:30 AM we will get the latest reading on unforecast US Petroleum Supplies.  We have at 7:00 AM report of Mortgage Applications and bond auctions at 11:00 AM as well as 1:00 PM to wrap up the calendar day.

On the Earnings Calendar, the reports continue to ramp up with more than 230 companies scheduled.  Among the pre-market reports are BA, KO, UPS & GM with post-market reports including FB, F, LVS, & MAT.

Action Plan

A very nice move higher yesterday with the market reacting the to positive earnings reports.  However, the overall price action of the day was anything but smooth experiencing two nasty whipsaws.  Overnight Asian and European mixed seeming to follow the lead of the bullish but choppy US indexes.  Futures are taking a wait and approach this morning with more than 100 earnings reports to react to before the bell.  With more than 600 reports between now and the close on Friday, we and expect a surge in price volatility as the market reacts.

If you’re inexperienced, it may be best to stand aside and watch the drama unfold from the safety of the sidelines.  Those who do trade will have to stay very focused on price action clues and willing to hold through potentially violent intra-day swings and large morning gaps.  Although the earnings drama fuels the Fear-Of-Missing-Out and the desire to rush, we need to stick to our rules maintaining a business focused discipline.  If you trade your emotions, you’ve already lost the battle.

Trade Wisely,

Doug

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