More Uncertainty

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More Uncertainty

UncertaintyWe wake this morning to more uncertainty with new threats and a possible escalation in the so-called trade war.  Markets around the world declined in response, and the US Futures are responding in kind indicating a gap down of 300 Dow points or more.  Politics aside all this uncertainty is greatly elevating the level of risk for traders.  I have said it before and will say it again, periods of political uncertainty creates challenging times for traders.

As long as the threatening rhetoric and tariff increases continue, we can expect unreliable action signals, fast overnight reversals, and intraday whipsaws that could challenge even the most experienced trader.  I believe cooler heads will eventually prevail because elected officials always want to be reelected and the destruction of the market would not bode well for them.  Until then we should plan for some nasty turbulence.

On the Calendar

The Tuesday Economic Calendar begins the day the potential market-moving Housing Starts Report at 8:30 AM Eastern.  Forecasters expect a surge in housing starts to 1.320 million annualized-up from 1.287 million in April’s reading.  Permits are also remaining strong with a 1.350 million expectation vs. Aprils 1.352 million.  Year-on-year starts are up 10.5 percent with permits up 7.7 percent.  After that, we have the Redbook at 8:55 AM and two bond auctions at 11:30 which are not expected to move the market.

On the Earnings Calendar, we have only 14 companies reporting today the most notable coming after the bell with reports from FDX and ORCL.

Action Plan

Yesterday saw a nasty gap down in the market in reaction to the trade war threats being launched back and forth between the US and China.  However, the Bulls managed to find the energy to rally closing most of the gap by the close of the day with Dow down only 0.40%.  The IWM reached out to new record highs for the index with both the QQQ and SPY closing only marginally lower.  Seeing the Bulls fighting back with such vigor had me hopefull they have a chance to follow-through higher today, but once again political uncertainty raised it’s ugly head overnight.

New threats from the White House of sent the Asian markets sharply lower and the US futures have followed suit.  Currently, Dow Futures are pointing to a gap down of 300 points as trade war jitters escalate.  The economy is strong, but unfortunately, traders face a very uncertain market with our leaders unable to play nice with each other.  Let’s hope cooler heads will prevail soon.  Until then trade with caution because each day could bring another big overnight reversal.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/AUWjr2sHAhI”]Morning Market Prep Video[/button_2]

SDOW Setup and Trade Plan Trade Jitters Edition

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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

SDOW as of 6-18-19 SDOW 6-18-19 4-day

The SDOW Trade Plan

SDOW Trade Plan 6-19-18

 

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 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.

[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.

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

SDOW ETF and 4-Day Chart

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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

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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Trade Alert

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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

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[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

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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

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.

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

 

 

OMI Setup and Trade Plan

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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

OMI Setup as of 6-15-18

 

The OMI Trade Plan

OMI Trade Plan as of 6-15-18 Close

 

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

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

 

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

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.

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

Patience is a virtue.

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Patience is a virtue.

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]