KRG Trade Setup and Plan

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Normally, Hit and Run Candlesticks does not post featured trades on Fridays.  However, I’ll offer a bonus trade idea for today anyway.  Just remember that Friday is payday!  We should be primarily focused on existing postions, taking profits and deciding if weekend headline risk changes whether a potions should be adjusted or closed.

Today’s Featured Trade Idea is KRG.  This stock has printed an Inverted Head and Shoulders pattern, which is also a Rounded Bottom Breakout pattern.  It has broken through the neckline and Resistance on Wednesday.  It then retested that level Thursday, holding it as Support.  On positive trading, we can use a stop fairly tight below Support and Target prices from Support/Resistance levels off the Weekly chart.

While this stock is a REIT (be aware for tax purposes), it will offer a very low Risk for a reasonable position size.  This offers a good Reward/Risk Ratio, while allowing us to remove all risk (by raising the Stop above Break-even) if Target #1 is reached.  If the stock reaches the second Target, the Trade Goal will be achieved.

Hope to see you in the trading room at 9:10am Eastern.

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

The KRG Trade Setup – As of 5-31-18

 

 

The KRG Trade Plan

 

Notice how Trader Vision 20/20 does the work for you, by allowing you to define your risk in terms of “Position Size” (Dollars invested in a trade), “Risk to Stop” (Dollars lost if stopped out) and in terms or Reward/Risk Ratio.  It’s easy to look at all the various scenarios using Trader Vision.  So you know…

  • How much money is at risk if Stopped Out?
  • How much will be gained if we sell the entire position at Target #1?
  • What does that mean in terms of Reward/Risk Ratio?
  • How much will be gained if we sell half the position at Target #1 and the remainder at Target #2?
  • What does that mean in terms of Reward/Risk Ratio?

Knowing all these scenarios really takes the pressure off a trader, making it much easier to control your emotions during a trade.  It also logs all this information so that down the road you can see exactly what you were thinking.  These are some of the benefits of TV20/20

 

 

 

Time is running out…Act fast if you want to register for the Upcoming Workshop:

Trading With Fibonacci Retracements/Extensions

6/7/18 at 8pm Eastern

  • Why do Fib Ratios Work?
  • Why Should You Use Extensions instead of Projections?
  • Answers to Common Problems Using Fibs.
  • Where do you begin and end your drawing?
  • Do we use Bodies or Wicks?
  • Which Ratios should be your focus?
  • How to Identify the major support/resistance Levels with Fibs?
  • How to Find Entries with Fib Retracements?
  • How to Set Targets Using Fib Extensions?

 

[button_2 color=”red” align=”center” href=”https://ob124-cea4cb.pages.infusionsoft.net/” new_window=”Y”]Fibonacci Retracement An Extensions Workshop • Click To Learn More[/button_2]

 

 

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

 

***************************************************************************************************

Investing and Trading involve significant financial risk and is not suitable for everyone. 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.

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

***************************************************************************************************

Bulls stepped up.

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Bulls stepped up.

Bulls stepped upWith Euro jitters fading (at least for now) the bulls stepped up to the plate yesterday in a show of strength.   Holding the DIA and SPY 50-day average is vital if we hope to see additional price improvements in the market.  The IWM moved with great confidence yesterday once again posting record high as it reacted bullishly to support.

These bullish moves in price still face key resistance levels as political uncertainty continues to swirl.  Today the White House is expected to decide on steel and aluminum tariffs affecting some important trading partners.  Obviously, the market is sensitive to this issue and react swiftly to the decision so keep a close eye on price action and prepared to react.

On the Calendar

The Thursday Economic Calendar starts with the Weekly Jobless Claims and Personal income and Outlays at 8:30 AM Eastern.  Consensus suggests the weekly claims will come in at 224,000 a full 10K decline from last week.  Personal income expects a moderate 0.3 percent in April with consumer spending is expected to increase 0,4 percent.  Exclude both food and energy, and the core index expects only a 0.1 percent increase to 1.8 percent annual reading.  At 9:45 AM the Chicago PMI is expected to rise to 58.4.  Then at 10:00 AM forecasters expect Pending Home Sales to increase 0.4 in April as more homes come to market helping to boost sales.  The EIA Petroleum Status reports is the last of the market-moving reports this morning and in not forwardly forecast.  We have two Fed Speakes today at 12:30 PM & 8:30 PM along with two bond events and several non-market-moving reports to close the day.

The Earnings Calendar shows 63 companies reporting today with AEO, DG, and DLTR before the open.  After the bell, we will hear from COST, LULU, and GME.

Action Plan

After the sharp morning gap up the bulls found stored reserves of energy pushing the markets sharply higher as Euro Jitters dissipated for the time being.   Trade will be on the mind of the market today as the White House may decide to move forward on steel and aluminum tariffs.  Currently, Futures are pointing to a flat to slightly lower open but with a big day of economic reports and several earnings events that could quickly change.

As our current positions continue to extend gains, make sure you are adjusting stops to protect profits.  Don’t let greed get in the way of taking profits as political uncertainty continues to swirl on trade negotiations, North Korea and the Euro.  The DIA, SPY, and QQQ continue in consolidation between key support and resistance levels.  Breakouts or failures of these key levels could create some fast price action so watch closely.

Trade Wisely,

Doug

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CDNA T-Line Bullish Morning Star

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CDNA  T-Line Bullish Morning Star

CDNA has been trending for the past two months, on May 11, consolidation started which put CDNA on our radar. Yesterday price action broke out of the consolidation with a Morning Star signal (type) after a 3 bar Pull Back Opportunity (PBO). Using Fib lines and depending on the entry a 20-30% swing is possible. We are adding CDNA to our watchlist only at this time. We may or may not take the trade depending on price action and market conditions. Do you have the trading education to be a successful trader?

Trader Vision CDNA Trade Plan Click Here

Fibs An Important Tool For The Tool Box

  • Why do Fib Ratios Work?
  • Why Should You Use Extensions instead of Projections?
  • Answers to Common Problems Using Fibs.
  • Where do you begin and end your drawing?
  • Do we use Bodies or Wicks?
  • Which Ratios should be your focus?
  • How to Identify the major support/resistance Levels with Fibs?
  • How to Find Entries with Fib Retracements?
  • How to Set Targets Using Fib Extensions?
[button_2 color=”red” align=”center” href=”https://ob124-cea4cb.pages.infusionsoft.net/” new_window=”Y”]Master Fibs With Hit and Run Candlesticks – Learn More[/button_2]

Testimonial

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

SPY Bullish Morning Star

Yesterday the SPY closed with a Bullish Morning Star above the T-Line, the T-Line is above the 34-EMA trending, and the 34-EMA and 20-SMA are trending as well. The V-Stop has flipped from a one day red back to green. The April 18 candle is important for support and resistance, note that price action and the T-Line are above the April 18 candle. The next challenge for the SPY is $274.00. Overall we are bullish on the SPY, please read the VXX comments.

VXX – Price action closed the last 2 days above the T-Line and held fairly well yesterday. Still, below the trend line, a break above the trend line would be a clue of trouble in the market.

Rick’s Trade-Ideas Reserved for Members

Monthly • Quarterly • Semi-Annual • Annual

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

 

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.

*************************************************************************************

 

 

CDNA Trade Setup and Plan

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Today’s Featured Trade Idea is CDNA.  There is a lot to like about this stock which has been solidly Bullish, even in the face of an overall Market that has chopped back-and-forth in a range for weeks.

For a more detailed analysis of the ticker, refer to Rick’s Public Stock Trade Idea for today…or, of course, members can listen to his detailed analysis in the trading room at 9:10am Eastern.

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

The CDNA Trade Setup – As of 5-30-18

 

 

The CDNA Trade Plan

In this trade, note how Trader Vision 20/20 does the work for you analyzing the chart versus good trading rules.  In this case, it tells us we have the Short-Term and Long-Term trends in favor of a Long trade as well as multiple Bullish Patterns in place.  Add to this the fact that the Candles Signal is close to (but not exactly) a Bullish Signal and the relation to Support and potential Resistance and it all comes down to a nice Setup.

Also, note that the trade can reach the Trade Goal by selling only half the position at the first Target.  If that comes to pass, you’d have the chance to keep raising your Stop while letting the Longer-Term Trend work for the second half of your position.  Overall, that leads to a Reward/Risk over 8:1.  That means risking $123 for a chance to make between $742 (if 100% is sold at Target #1) or even $1000 (If half is eventually sold at Target #2).

 

 

Upcoming Workshop:

Trading With Fibonacci Retracements/Extensions

6/7/18 at 8pm Eastern

  • Why do Fib Ratios Work?
  • Why Should You Use Extensions instead of Projections?
  • Answers to Common Problems Using Fibs.
  • Where do you begin and end your drawing?
  • Do we use Bodies or Wicks?
  • Which Ratios should be your focus?
  • How to Identify the major support/resistance Levels with Fibs?
  • How to Find Entries with Fib Retracements?
  • How to Set Targets Using Fib Extensions?

 

[button_2 color=”red” align=”center” href=”https://ob124-cea4cb.pages.infusionsoft.net/” new_window=”Y”]Fibonacci Retracement An Extensions Workshop • Click To Learn More[/button_2]

 

 

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

 

***************************************************************************************************

Investing and Trading involve significant financial risk and is not suitable for everyone. 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.

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

***************************************************************************************************

Political Uncertainty

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Political Uncertainty

Political UncertaintyThe summer market not only has to deal with the political uncertainty of US trade negotiations but now also has to worry about the future of the Euro as Italian uncertainty shakes the market.  With the newly elected officials struggling to form a government Italy may face another election that threatens the stability of the Euro.

All this political uncertainty could make for a challenging summer with prices whipping around in a politically generated storm where the outcome has far-reaching market effects.  Yesterday the faced a triple point gap down and selloff and this morning the futures suggest a triple point gap up at the open.  Plan your risk carefully and prepare for the possibility of more turbulence in the weeks to come.

On the Calendar

The Wednesday Economic Calendar gets going at 8:15 AM with the ADP Employment Report consensus at 187,000 new jobs created in May.  The ADP has been running stronger than actual payrolls.  AT 8:30 AM we have tow potential market-moving reports, GDP & International Trade in Goods.  Forecasters expect the GDP to come in at 2.2 percent with consumer spending up slightly and the GDP index unchanged at 2.0 percent.  International Trade in Goods deficit is expected to widen to a consensus $71.0 billion in April vs. $68.3 in March reading.  The Beige Book at 2:00 PM which comes out 2-week before the FOMC will wrap up the potential market-movers for today.  Other reports today include Mortgage Applications, Corporate Profits, Retail inventories, Redbook, and Farm Prices.  Keep in mind that the Fed will issue a proposal to modify the Volcker Rule which curtailed proprietary trading banks after the financial crisis.

We have 56 companies reporting earnings today to keep traders on their toes.

Action Plan

Political uncertainty in Italy shock the markets on Tuesday sending banking stocks sharply lower with the stability of the Euro in question.  It would wise to expect further shock waves to the market similar to those we experienced just a couple years ago with Greece.  Unless they sort this out quickly, we could face a turbulent summer.

This morning the Dow Futures are pointing to a gap up open of more than 120 points as the market whips around in political winds generated in the US and now across the pond.  The VIX rose sharply yesterday facing uncertainty on multiple fronts.  Plan your risk carefully!

Trade Wisely,

Doug

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EXAS With An Ascending Triangle

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EXAS With An Ascending Triangle

We are adding a few trade ideas to our watch list. One is EXAS with an ascending triangle pattern. The Inverted Head and Shoulder and the trend have landed EXAS in an Ascending Triangle pattern. Finding support above the 20-SMA and the bullish piercing candle yesterday may be a clue that EXAS may be getting close to a breakout.  Note we are adding this stock to our watchlist only at this time. Without the proper education, there is a high probability you will lose your money.

Jump to the EXAS Trade PLan CLick Here

All Traders Should Have Fibonacci Education

  • Why do Fib Ratios Work?
  • Why Should You Use Extensions instead of Projections?
  • Answers to Common Problems Using Fibs.
  • Where do you begin and end your drawing?
  • Do we use Bodies or Wicks?
  • Which Ratios should be your focus?
  • How to Identify the major support/resistance Levels with Fibs?
  • How to Find Entries with Fib Retracements?
  • How to Set Targets Using Fib Extensions?
[button_2 color=”green” align=”center” href=”https://ob124-cea4cb.pages.infusionsoft.net/” new_window=”Y”]Fib. Workshop June 7th. Are You Ready?[/button_2]

Testimonial

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

SPY

Today is all about the $271.00 (area) resistance and whether or not the buyers can turn it into support. Working with support and resistance lines are very easy, the bull or the bear with can or can not. Yesterday the SPY was pushed down because of news which may or may not be important to the US stock market. Yesterday’s price action closed below the 20-SMA and above the 50-SMA. At the moment the bull is still bigger than the bear, price action today could make the difference.

VXX – The VXX yesterday had a nice bullish day filled with fear but the chart really didn’t get too far. Over $39.90 the market bear will get bigger and the bull will get sheepish.

Rick’s Trade-Ideas Reserved for Members

Monthly • Quarterly • Semi-Annual • Annual

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

 

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.

*************************************************************************************

 

 

Bears say, Howdy.

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Bears say, Howdy.

Bears say, HowdyWith everyone was enjoying a long weekend it would appear this morning the bears want to say howdy and mount an offensive.  The normal culprit, US political uncertainty, does not seem to be the cause of the bearish move it seems to stem this morning from our friends across the pond.  European indexes are lower with another extension request on the Brexit as a possible culprit.

Nonetheless, the Futures are pointing to a substantial gap down of more than 150 Dow points breaking below the consolidations support and adding another possible resistance level.  With the DIA and SPY now so close to their 50-day averages a test of this key level now appears more likely.  There is no need to panic, but there is a reason to raise your caution level.  As always stay focused on price action and remain disciplined to your rules rather than letting emotion dictate business decisions.

On the Calendar

Although it’s only a four day work week, the Economic Calendar will be a busy one with a bunch of potential market-moving reports.  Today we get things kicked off at 9:00 AM CoreLogic Case-Shiller as forecasters expect a slight decline to 6.4% vs. the February reading of 6.8%.  At 10:00 AM the Consumer Confidence will remain strong according to forecasters that expect May to come in at 128.1 holding on to this year’s gains.  After that, we have State Street Investor Confidence at 10:00 AM, Dallas Fed Mfg Survey, and 3-bond auctions to round out the calendar day.

On the Earnings Calendar among the 51 companies, a room favorite of late MOMO will report before the bell today.  After the market close, we will hear form HPQ & CRM.

Action Plan

It was not a surprise to see Friday’s price action so anemic and choppy.  Unfortunately, it also gave us no clues the big gap down open we currently see this morning.  Currently, the Dow Futures suggest a gap down of more than 150 points following declines in European markets during the night.  If the bearishness holds through-out the morning the DIA, SPY will gap below last Thursdays low and the consolidations price support.  The IWM is currently indicated to open below the support of the breakout to new highs created on the 16th.

If there is a silver lining this morning, it’s the fact that all the major indexes currently remain above their respective 50-day averages and are at this time still holding onto the up-trend.  With such a violent move at the open, it’s easy to make poor emotionally based snap decisions.  As always watch the price action closely and follow your trading plans.  At this point, a test of the 50-day seems likely; the big question is will this key level hold?

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/9NNIpsZnnVw”]Morning Market Prep Video[/button_2]