Pressure to Trade.

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Pressure to Trade.

pressureSitting in front of your computer running scans and flipping through charts it’s easy to feel under pressure to trade.  As we sift through charts in a mad dash to find a trade we often fail to remember the condition of the overall market.  Currently, the market is under pressure and is in a short-term downtrend.  None of the major indexes produce a buy signal yesterday, and in fact, they all remained within their downtrends, and nothing changed the cloud of uncertainty that’s weighing on the market.

Patience and discipline are key qualities that all traders must possess.  As your looking for trade-able charts, make sure you are assessing the overall market condition.  Do you have an edge or are you a giving up your edge by forcing trades when the market is not favorable for your positions?  Remember trading is a marathon, not a sprint.

On the Calendar

The Wednesday Economic Calendar gets going with market-moving reports at 8:30 AM Eastern with Durable Goods Orders.  Consensus expects growth in with core capital goods orders increasing a modest 0.2 percent gain with ex-transportation numbers coming in up 0.5% in May.  Also at 8:30 AM is International Trade in Goods where forecasters expect the deficit to widen to 68. Billion in May vs. the 67.3 billion reading in March.  Pending Home Sales at 10:00 AM expect an increase of 0.6 percent in May but remaining overall flat for the year.  Then at 10:30 AM the last market-morning report of the day comes from the un-forecast EIA Petroleum Status Index.  Other than that we have Retail inventories & Wholesale Inventories @ 8:30 AM, two Fed Speakers at 11:00 AM & 12:15 PM and two Bond Auctions.

We have 20 companies on the Earnings Calendar today expected to report results.  Among those reporting PAYX, MON, GIS report before the bell while RAD, PIR, and BBBY report after the close.

Action Plan

With the modest bounce in the indexes, it was tempting to forget about trade war tensions and want to buy into the dip.  I continued to repeat the need for caution and as for myself added no new positions.  Sadly that appears to have been the right decision with the Dow Futures pointing to another gap down of more than 100 points at the open.  With a busy Economic Calendar and a few Earnings reports before the bell that could certainly improve or get worse before the open.

I will need to see more conviction from the Bulls to enter new long trades, and I will matain stick to my rules and resist chasing into short trades that have already made significant moves lower.  Trading is a marathon, not a sprint and you don’t have to trade every day to be successful as a trader.  Avoid anticipating or predicting bottoms and wait until price action confirms good entries.  Remember cash is a position and in times of market uncertainty, it may be the best position especially if you’re an inexperienced trader.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/VODy5pIMT_w”]Morning Market Prep Video[/button_2]

6-26-18 e-Learning Trading with Discipline

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Trading with Discipline

PatienceIn this video, Doug Campbell discusses trading with discipline.  The video covers topics ranging from Trend, Support and Resistance, being Patient and various tools you can use to help your trading.  Numerous charts are reviewed as current examples.

1 hour 29 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

 

DO (Short) Setup & Trade Plan

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Today’s Featured Trade Idea is DO.

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.

DO printed a large Bearish Engulfing signal to enter a Blue Ice Failure pattern on Monday.  With overall markets also Bearish, I will look for a retest of the 50sma to get a better entry and use the failure at that level to protect my Stop above the 50sma.  While the pattern target is usually the 200sma, I will use a potential Support level between the two as Target #1.  Target #2 is also a potential Support area near the 200sma.  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 DO Trade Setup – As of 6-25-18

DO Setup as of 6-25-18

 

The DO (Short) Trade Plan

DO Trade Plan for 6-26-18

 

Note how Trader Vision 20/20 does so much of the work for you.  The anticipated second Target price would generate a 7.67% gain and the second target an overall gain of 9.52%.  We also see that the Risk is low and the potential Reward good.  Knowing the Risk, Reward and how far a stock must move to reach our goal…before a trade…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/olsx0iLk_1A” 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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A Bearish Engulf At Resistance

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A Bearish Engulf At Resistance

It’s never good when you get a Bearish Engulf at resistance. Yesterday’s price action in DO was controlled by the sellers when they realized the buyers didn’t have the chops to step out into the battlefield. So the sellers took control and closed price below the 50-SMA. Weakness below $18.95 may need to test the $17.40 – $16.70 areas. Be very cautious the next few days as the buyers and sellers battle for the blue ribbon, don’t be a casualty.

DO Trade Plan Right Here

HRC Monthly Trading Results Right Here

Monthly • Quarterly • Semi-Annual • Annual • Private 2-Hour Coaching

SPY Is Unhappy

Looking at my Red White and Blue chart the SPY has turned bearish in the hourly, 2-hour and 4-hour charts. The daily is very close, whether or not you like the tariff battle going on it is causing the market to be unhappy. An unhappy market leads to chop and the sellers taking the lead. The 200-SMA area may offer support and a relief rally for the bulls, but we must see the right conditions before that can happen.

VXX – VXX got pretty darn hot yesterday! The VXX chart is suggesting they buyers are not happy when buyers are not happy the sellers like to party.

Rick’s Trade-Ideas Reserved for Members

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

 

 

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. or Rick Saddler is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

Rick Saddler is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone.

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An Ugly Day

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An Ugly Day

UglyYesterday was clearly an ugly day for the market with many stocks suffering there biggest selloff this year.  At the end of the day, even the strongest of the indexes suffered technical damage that will likely take weeks if not months to repair.  With trade tensions still growing we can’t rule out additional shock waves occurring so trade with caution and discipline.

Although an ugly day there was a silver lining in a few sectors as traders rotate toward safety.  Consumer defensive, consumer staples, utilities and high dividend paying stocks are showing some positive signs, but you will have to choose carefully.  Domestic companies with less exposure to tariffs vs. international companies that could experience more shock waves as trade tensions continue to grow.

On the Calendar

There are two potential market-moving reports on Tuesday’s Economic Calendar.  The first is the Case-Shiller at 9:00 AM Eastern which consensus expects a gain of 0.5 percent with the year-on-year number holding 6.8 percent.  Secondly, the 10:00 AM Consumer Confidence expects a steady strength of 128.1 in May according to consensus.  Events not expected to move the market included Redbook @ 8:55 AM, Richmond Fed Mfg. Index & State Street Investor Confidence @ 10:00 AM, two Bond Auctions & two Fed Speakers.

The Earnings Calendar shows 13 companies reporting results today with FDS and LEN before the bell.  After the bell, we will hear from JMBA and SONC.

Action Plan

After a rough day selling with all four major indexes suffering technical damage, caution an restraint should be considered.  You might be thinking now is the time to jump in and pick up some deals and you might be right.  However, don’t anticipate a wait for good signals of buyers stepping in before rushing into trades.  Yesterday could have been an overreaction by the market, but keep in mind the uncertainty surrounding trade is far from over and the next shock wave may only be a news report away.  Having broken uptrends any rally back up should be watched closely for the possibility of failure at or near price resistance levels.

There seems to be a rotation to the defensive sector, consumer staples sector, and high dividend paying stocks such as utilities as investors look for a little safety.  Also, keep an eye on domestic companies as they may be less impacted by tariffs.  Currently, the Dow futures are pointing to a flat to slightly bearish open.  A resting day with choppy price action would not be out of the question.  Better days will eventually return, but there could be a lot of very challenging days yet to come.  Third quarter earnings are just 2 or 3 weeks away, but until then its likely trade war jitters will continue to be the driving force of the market.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/jJqfNtdYR74″]Morning Market Prep Video[/button_2]

AVEO Setup & Trade Plan

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Today’s Featured Trade Idea is AVEO.

You can read more about this trade in Rick’s blog post here.  For now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

AVEO has formed a Rounded Bottom Breakout pattern and printed a Bullish Engulfing signal on Friday.  I will look for an Entry on the breakout with a Stop set below the two Support Levels shown.  The Targets used were defined as Support/Resistance levels using the Weekly Chart.  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 AVEO Trade Setup – As of 6-22-18

AVEO Setup as of 6-22-18

 

The AVEO Trade Plan

AVEO Trade Plan for 6-15-18

 

Note how Trader Vision 20/20 does so much of the work for you.  As we see above, Trader Vision shows you that the stock only needs to move 9.39% to make the Goal for the trade (not even to the first Target), while the anticipated second Target price would generate a 14.69% overall gain.  We also see that the Risk is low and the potential Reward good.  Knowing the Risk, Reward and how far a stock must move to reach our goal…before a trade…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/qzTch8J0XPA” 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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Trade Policy Uncertainty

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Trade Policy Uncertainty

Facing another significant overnight gap down due to trade policy uncertainty its time to ask yourself a question.  Do you feel like your trading the market or fighting the market?  Daily triple-digit Dow gaps have significantly increased trading risks for most swing and position traders.  When good entry signals continue to reverse back and forth overnight depending on the threat, tweet or news report the swing trader has little to no edge.

Sure you can pridefully continue to fight but at what cost?  How much are your willing to risk trying to be right?  As the trade policy uncertainty continues big gaps, reversals and whipsaws will also likely continue.  If you feel like, you’re going into battle blindfolded without a weapon day after day; who’s fault is it when your capital disappears?  There will be better days ahead if you have the patience and discipline to wait for them.

On the Calendar

A busy week on the Economic Calendar gets going with the first market-moving report at 10:00 AM Eastern with New Home Sales.  New Home Sales according to consensus will continue its strong uptrend in sales with a slight increase to a 665,000 annualized rate.  We have Chicago Fed Activity Index @ 8:30 AM, the Dallas Fed Mfg. Survey and three bond events on the calendar today but they are unlikely to move the overall market.

We have only 12 companies reporting earnings today with CCL as one of the most noteworthy coming before the bell.

Action Plan

It was nice to see a little relief from the selling with the gap up open on Friday, but sadly the Bulls had no energy to follow-through after the gap.  With the threat of new trade war measures, the Futures are once again pointing to another triple point Dow gap down.  Currently, that gap could be as much as of 200 giving up all of Friday’s gains in one fell swoop.   The SPY and the QQQ look as if they could also give up important support levels at the open today.

The fact remains that while the US and China continue to battle trade policy publicly, the market will continue to react erratically.  Every trader has a decision to make.  Do I continue to put capital at risk knowing that significant overnight gaps are likely to continue or do I stand aside waiting for the uncertainty to pass?  Standing aside is a hard thing to do for most traders but if you find that losses are mounting trying to fight the market will only make the situation worse.  I started cutting back on my trading last week and will continue to do so until price action improves.

Trade Wisely,

Doug

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Price Action Above $2.40

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Price Action Above $2.40

Price action above $2.40 moves AVEO from a bullish constructed bottom to a possible 15%-20% relief rally. AVEO has entered the (RBB) Rounded Bottom Breakout area and the price action and volume Friday suggest the buyers are taking a look. If the market and conditions are right, we may take a trade with price action over $2.40 with the target direction toward the Dotted Deuce and the 200-SMA. Do you have more questions? Want to know how we have grown 240% in 6 months? Join us in the trading room, ask and we will share.

AVEO Trade Plan Right Here

HRC Monthly Trading Results Right Here

HRC Current Trading Results January 1, 2018, to June 19, 2018, • Plus 240% or $12,085 profit.

Monthly • Quarterly • Semi-Annual • Annual

SPY Test The 50-SMA?

The SPY is starting to look as if it wants to test the 50-SMA. The past eight trading candles have influenced by the sellers more than the buyers, and with the futures being down nearly 200 points this morning I suspect today will be day nine. Friday close at $274.74 and this morning’s pre-market futures are still within the May support level. Looking at the SPY weekly chart, you can see the four-bar support area. If the buyers don’t take advantage of the 50-SMA (Daily Chart), the sellers may have an opportunity to put a game together.

VXX – Overall I do not see the panic fear in the VXX chart, but I am starting to see the interest. Over $38.25 the VXX chart would be pretty darn hot

Rick’s Trade-Ideas Reserved for Members

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

 

 

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. or Rick Saddler is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

Rick Saddler is not a licensed financial adviser nor does he offer trade recommendations or advice to anyone.

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