SDOW Setup and Trade Plan Trade Jitters Edition

June 19, 2018 by Ed Carter

Today’s Featured Trade Idea is SDOW.

To read more about this trade, see Rick’s blog post here. However, members can listen to his detailed analysis 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.

SDOW has been in a serious downtrend for some time as the Bulls have been in charge. However, on overnight TRade fears (the President’s threat to add another $200billion to the tariffs imposed on China) the Dow futures are diving lower overnight. This is a very unsettled market picture, as it would be easy for calmer heads to “walk back” the threats, but equally possible the Chinese could retaliate in their own “message through the media.” So, I will be looking to force the SDOW Bulls (market Bears) to demonstrate follow-through above the 50sma before looking to Enter. Even then, I’ll only look for a short-term move and hope to catch a pop up to 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.

No Trade Executed – Order Cancelled (Don’t let it ride)

The SDOW Trade Setup – As of 6-18-18

The SDOW Trade Plan

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 8.8% to make the Goal for the trade, while the anticipated first Target price would generate a 10.44% gain. We also see that the Risk is low and the potential Reward decent. 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/7Pi88rFxxyE” new_window=”Y”]Trade Plan Video[/button_2]

If you’re interested in putting the power to Trader Vision 20/20 to work for you, click 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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SDOW ETF and 4-Day Chart

June 19, 2018 by Rick Saddler

SDOW ETF and 4-Day Chart

SDOW ETF and the 4-day chart may be opening the door for a swing set up. The pre-market price action has pushed price action above the double bottom and bullish morning star candle signal. We might consider a bullish trade above $17.55 while the safer play would be above $18.45. Above $18.45 would put the trade above the 20-SMA and the downtrend line on the 4-day chart.

SDOW Trade Plan Right Here

HRC Trading Results Right Here

Monthly • Quarterly • Semi-Annual • Annual Discounted

SPY • Well Crap

Well crap, another tweet fest has sent the market lower. The 34-EMA or about the $273.50 area has support, but the big question is whether or not the buyers can find ground, if not 50-SMA is sitting at $270.50ish. Below $273.50 puts price under the T-Line on the weekly chart which usually leads to lower lows and chops on the daily chart. My #1 goal today is to manage the trades I already have in place. #2 goal is to protect current profits. #3 goal don’t lose sight of goal #1 and #2.

VXX – Gapping above the T-Line and test the 20-SMA today seems to be in the bag. The end of the day will be the important clue. Who will be controlling the ball in the $33.60 area?

Rick’s Trade-Ideas Reserved for Members

Focus Trading Education

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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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Trade Alert

June 18, 2018 by Doug Campbell

Good Afternoon team.

Today in the live session we made a trade adjustment and added a new position.

First our trade in INTC dropped on an analysts downgrade. If you closed the entire position there is no problem with that at all. However, to modify the trade we turned out 60 strike short call into a Bear Call Spread buy buying the 65 strike AUG Call. Then we sold the JAN19 long call position to capture a gain. $494.85 overall gain.

HD is consolidating and holding up very well. To take advantage of that consider the SEP 190 Calls to begin a directional position. We will wait for the stock to move and then consider selling calls against the trade. Initial stop was set at $196.90. Keep in mind this may a early on the entry so you can choose to wait for follow-through price action.

Remember all trade ideas are for your evaluation and consideration.

General Session E-Learning

June 18, 2018 by Doug Campbell

[img_text_aside style=”1″ image=”http://hitandruncandlesticks.com/wp-content/uploads/2018/06/General-session-thumbnail.jpg” image_alignment=”right” headline=”” alignment=”center”]A General Session where we covered the current market condition, charts of interest and answering member questions.

[/img_text_aside] [button_2 color=”green” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-s0e4f5f4b1f74d69a”]General Session E-Learning replay[/button_2]

My Apologies

June 18, 2018 by Rick Saddler

My Apologies

There will not be market comments today Monday, June 18, 2018

Please remember to check out the Trader Vision trade idea and trade plan

Focus Trading Education

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

Testimonial

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

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OMI Setup and Trade Plan

June 18, 2018 by Ed Carter

Today’s Featured Trade Idea is OMI.

Rick had a family emergency today and cannot do a morning blog post. However, members can listen to his detailed analysis in the trading room at 9:10am Eastern.

Nonetheless, for now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

OMI has formed a bottom over the last few months. It has broken into an RBB pattern and is right at the next potential Resistance level. On a breakout, we can have a defined, small risk looking for a run up into the next potential resistance level (defined on 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 OMI Trade Setup – As of 6-15-18

The OMI Trade Plan

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 7.61% to make the Goal for the trade, while the anticipated first Target price is 10.37%. We also see that the Risk is very low and the potential Reward quite nice. 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/IOGWsmZfFXg” new_window=”Y”]Trade Plan Video[/button_2]

If you’re interested in putting the power to Trader Vision 20/20 to work for you, click below.

[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

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Patience is a virtue.

June 18, 2018 by Doug Campbell

Patience is a virtue.

We have all heard the axiom that patience is a virtue. With 13 years experience as a full-time trader, I can confidently confirm that patience is a key quality for all traders to develop. Currently, we see the DIA and SPY pulling back with the futures pointing to significant gap down open this morning. There will be bullish traders that will try and anticipate or predict the turning point. There will also be traders that only see bearishness in the market and will chase short positions on the gap down. Both actions demonstrate a lack of patience.

Good traders with high win/loss ratios share some similarities to a good sniper. They will wait patiently, quietly and unemotionally focused on the right time to act. If you’re bullish, wait for the bullish signal when buyers step back in at or near price support. If you’re bearish, wait for the signal of failure at or near price resistance. Be patient, focus on price and wait for that good signal to pull the trigger. If to rush or anticipate your shot you’re very likely to miss your target and have an undesirable effect on your account.

On the Calendar

The Monday Economic Calendar gets going at 10:00 AM Eastern with the Housing Market Index. Consensus expects the housing index to remain steady and strong with an unchanged reading at 70 in June. We then have three bond events and two Fed Speakers at 1:00 PM and 4:00 PM to close the calendar day.

On the Earnings Calendar, there are only nine companies expected to report results today, none of which are market moving.

Action Plan

After gaping down Friday morning, the Bulls stepped back in lifting the Dow and the SPY off the morning low and finishing the day with hammer patterns. The QQQ traded sideways and the IWM finished the day at a new record high close. Unfortunately, it currently looks unlikely the hammer patterns will get the follow-through higher to confirm this morning with the Dow futures pointing to more than a 150 point gap down. Of course, it could be a very different picture at the end of the day if the Bulls dig in and fight back but political uncertainty seem to have given the Bears the upper hand at least for the short-term.

The good news is that the overall market uptrend is still valid, but there is reason to exercise a little caution. If the Bulls step up defending the trend, this pullback could produce nice low-risk entry points, but I would caution you not to anticipate entries. I would also be cautious about chasing short positions with uptrends still intact especially after a gap down open. There is no rush. Stay focused on price action and wait for a signal before jumping in.

Trade Wisely.

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/rFEFYLg5QPE”]Morning Market Prep Video[/button_2]

New Tariffs

June 15, 2018 by Doug Campbell

New Tariffs

With new tariffs likely to be levied by the US, China, and Europe it seems that the Bear’s are ready to go back to work this morning. Currently, the Dow futures are pointing to more than a 100 point gap down at the open. With the QQQ and the IWM closing at new record highs yesterday its easy for the trader to feel a bit cheated with an overnight change in attitude like this. We all hate the feeling of helplessness and being out of control.

The best way to deal with that is always to be taking profits. It’s normal to want the maximum profit possible out of every trade, but that is allowing greed to get in the way of good decision making. If you’re walking down the street and a hundred dollar bill blows across the sidewalk in front of you, most will stop and pick it up. Right? Why don’t we do that in trading? Taking partial profits along the way puts you in control and makes overnight reversals much easier to handle.

On the Calendar

The Economic Calendar kicks off at 8:30 AM Eastern with the Empire State Mfg. Survey. Consensus suggests a reading of 19.1 in June vs. Mays’s 20.1 reading with new orders remaining strong. The 9:15 AM Industrial Production expects an increase of 0.1 percent and capacity utilization should hold steady at 79.0 percent according to forecasters. At 10:00 AM Consumer Sentiment expects an increase to 98.5 in June vs. the already strong May reading of 98.0. Wrapping up the potential market-moving reports for the week is reading on Treasury International Capital 4:00 PM which tracks financial instruments in and out of the US. There is the Baker-Hughes Rig Count at 1:00 PM and a Fed Speaker at 1:30 PM but are not expected to move the market.

On the Earnings Calendar, we have a very light day with only nine companies reporting.

Action Plan

Yesterday was a day of missed signals with the QQQ’s and IWM closing at new record highs while the DIA found more sellers than buyers and the SPY chopped in consolidation. Overall with up trends holding there was the reason for caution, but the Bulls maintained their dominance. Ths morning however with the news that the President is likely to levy tariffs against China today futures are pointing to a sharply lower open with the Dow gapping down triple digits. Of course, China has promised immediate retaliation with its own set of tariffs as the so-called trade war heats up.

As always I will be more focused on protecting profits than adding new risk ahead of the weekend. I wish you all a fantastic weekend.

Trade Wisely,

Doug

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