Psychological Boost

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Psychological Boost

Psychological BoostYesterday was a big psychological boost for the market and a great day for the Bulls with all four fo the major indexes finally above their 50-day averages.  Now comes the important task for the Bulls to hold on to this key support level.  The inflation data in the CPI report this morning could easily serve as the catalyst to inspire the Bulls higher or bring out the bears if the number comes in hotter than expected.

It may be wise to keep an eye on the 10-Treasury for directional clues this morning.  Should the 10-year break above the prior high of 3.033 the markets are likely to view that negatively.  Currently, the market expects the Fed will raise rates by 25 basis points in June with the possibility of two more this year.  A hotter than expected number could easily raise speculation that the Fed will become more aggressive and add a 3rd increase.  Of course, I’m rooting for the bulls to win the day but I will have a plan to protect profits and capital should the CPI bring out the bears.

On the Calendar

Today at 8:30 AM Eastern we get two potential market-moving reports, but the CPI may well prove to be the most important report of the week.  Consensus expects an April headline monthly gain of 0.3 percent with the core rate gain of only 0.2 percent.  The year-on-year rates are both expected to rise by just one-tenth to 2.5 percent overall and 2.2 percent for the core reading.  Also at 8:30 AM is the weekly Jobless Claims which consensus expects to come in at 220,000 up 9,000 and just above a 49-year low.  Then at 2:00 PM the Treasury Budget according to forecasters will see a surplus of 88.0 billion due to the tax big tax season.

Today marks the last very big day on the Earnings Calendar for this season with 391 companies stepping up to the plate.  However, that does not release us from checking reporting dates on the companies we own or are thinking about buying.  Next weeks calendar show about 500 companies will report.

Action Plan

Today I think it would be wise to keep an eye on the CPI number that comes out an hour before the market opens at 8:30 AM eastern and has the power to determine the short-term market direction.  If the number comes in hotter than expected the 10-year treasury bond could easily rally above 3% which would likely move the market lower.  A pop above 3.033 would technically be a new high and could trigger speculation of an additional rate increase this year.  If the CPI were to come in cooler than expected, then the market may gain some energy to push higher.

Yesterday was a great day for the market with all four of the major indicators above their 50-day averages.  Now the question is, do the bulls have the energy to hold this important level of support?  The answer to that question could be in the CPI report.  As I write this Futures are suggesting a flat open, but that could easily change based on the large number of earnings this morning and how the inflation data is received.   Plan your day accordingly.

Trade Wisely,

Doug

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Considering VRX Over $20.25

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Considering VRX Over $20.25

A trade I am considering is VRX, over $20.25 VRX should run to the January highs. The weekly chart is in an (RBB) Rounded Bottom Breakout chart pattern with target zones near $31.00 and $41.50. Price action on the weekly chart has crossed up through the T-Line with a constructive bullish pattern. We have VRX and a few others on our watchlist for consideration to buy.

We will cover more details about stops and entries in the HRC trading room. Live Members Morning Prep with Steve Risner at 8:45 AM Est. And Rick Saddler at 9:10 am this morning.

Testimonial

In the past eight months, I have been a fortunate member of Hit and Run Candlesticks Right Way Options. The education on a day-to-day basis is both informative and fun. The E-learning further cements the learning experience along with the educational archives and methodology. If you enjoy working with other members to solve mutual options strategies engagingly with a sense of purpose, then this membership can be yours.

Jerry Hefner

SPY Closes Over The 50-SMA

The SPY closed over the 50-SMA yesterday adding new life to the bull market. Now price needs to hold the 50-SMA, and we need to see follow through. The next challenge will be $271.30. The Volatility vs. price has gone positive on the 1 and two-day charts, but the 3,4 and five-day charts are still negative. Go Bulls!

VXX – no fear

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

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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 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 except for the trading desk of Hit and Run Candlesticks Inc.

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Trade Alert

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Good Afternoon team.

During the live session today we added an new trade in GE.  As I told everyone in room we might be just a little early into this position but with the market showing bullishness it seemed like a good time.  This is a rounded bottom breakout pattern that I want to build into a longer term Fig Leaf position.

If your interested consider the GE Jan 2019 13 strike calls.  They have huge open interest and a very tight bid/ask spread.  Consider placing the initial stop at or below $13.67.  We will look to sell calls against this position if the GE can move higher.

I don’t expect this trade to be fast moving.

Remember all trade ideas are for your evaluation and consideration.

25% Trade On WFT?

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25% Trade On WFT?

I’m looking for a 25% trade on WFT with a breakout of the 200-SMA. WFT has been in a Rounded Bottom Breakout Pattern and looked like it wants to challenge the 200-SMA. Bullishness from yesterdays close could run WFT to about the $3.45 area or about 30%. The WFT chart has recently come out of an Inverted Head and Shoulder pattern, Flagged and gapped. The past ten bars have enjoyed a T-Line Run. The trick with WFT will be getting through the 200-SMA on the daily chart and the 50-SMA on the weekly chart.

We will cover more details about stops and entries in the HRC trading room. Live Members Morning Prep starting at 8:45 AM Est. With Steve Risner and Rick Saddler at 9:10 am this morning.

Join Rick Saddler and a “small” group of traders,  Rick will share what he has done to double a small trading account. Rick will share and coach you through his next 3-5 trades. Rick’s personal goal will be to help you recoup your cost and more.

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SPY • Bullish Team?

The past four bars in the SPY chart have put together a bullish team, now all we need is the follow through the team to get into the game. As I look at a few different charts I have you can see the SPY is so close to the breakout edge but yet it seems the bulls lack the confidence to push the fence down. Over $268.85 the bulls will have the freedom to run and frolic in the field, the question is will they do it?

The QQQ’s and IWM are leading the market and doing a pretty good job, they both still need to test there breakout.

The VXX has shown no sign of fear in the last few days.

Rick’s Trade-Ideas Reserved for Members

30-Day Trial • 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

I have been a member of HRC for five years, RWO for three years. I applaud the efforts of all coaches Rick, Doug, Ed and Steve (also fellow members) in helping me become a better trader than I was starting out and I am still learning. Doug reinforces the “Price is King” mantra every day since we traders tend to forget it in the midst of finding the next ‘sure thing’ indicator. Rick, will make us sometimes answer our questions to foster the thinking and quicken the learning process. Over the years, I have been in many trading rooms. I am here to stay. This room and its members are the best. Period!

Fred Narielvala

 

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is 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 except for the trading desk of Hit and Run Candlesticks Inc.

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Futures pointing higher.

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Futures pointing higher.

futures pointing higherNow that the US has officially left the Iran nuclear agreement markets around the world are responding higher.  Perhaps not the catastrophic event the media spin was alluding to, at least for now.  With Futures pointing higher the Dow and SP-500 poised to break the above their 50-day averages at the open.  A very welcome site if you happen to be bullish.  Getting above this important level is one thing,  now it’s up to the bulls to prove they can hold it as support.  Something they have been unable to do since early February.

Although inflationary pressures continue to creep up economic data continues to show remarkable strength in the economy.  With the majority of earnings reports continuing to come in strong perhaps the bulls will find the energy to hold on this time.  As we head into summer, I would not expect the market to reclaim the glory of the 2017 rally, but it would be nice to see it stabilize and settle in above this key support.  There is still a lot of resistance above that will have to be dealt with but holding above the 50-day average would be a good start.

On the Calendar

The Economic Calendar on this hump day has two potential market-moving reports.  At 8:30 AM Eastern the PPI report expects a 0.3 percent in April for the headline number.  Excluding food and energy forecasters see a 0.2 percent increase and 0.3 percent increase if you also exclude trade services.  The EIA Petroleum status report has seen a short-term trend of declining supplies which in turn has helped support rising oil prices.  There is no forward forecast of oil supplies, so it’s always a true market surprise.  The remaining events on the calendar include 7:00 AM Mortgage Applications, 10:00 AM Wholesale Trade, and two 1:00 PM Bond auctions, none of which is expected to move the market.

On the Earnings Calendar, I show 371 companies stepping up to report quarterly results.

Action Plan

Yesterday the market traded in a tight range as it seemingly waited for the Presidents decision on the Iran Nuclear deal.  Oddly enough after we learned the US would be pulling out of the deal, there was still a very little reaction as the market seemed content to rest another day.  The DIA and SPY both closed the day just below their 50-day averages while the QQQ’s and the IWM found the energy to hold above as the market seemed to be struggling to make a directional decision.

This morning the Dow Futures are suggesting a substantial gap up of more than 100 points with both Asian and European markets trading bullishly.  It would seem the US leaving Iran agreement is of little concern to the markets at this point with the bulls pushing for higher prints.  If the futures remain strong through the rest of the morning, the DIA and SPY look to break the resistance of their 50-day averages.  The question now is can the bulls hold this important support which they have not been able to do since early February.  Here to hoping they can!  Remember with so many earnings reports still to come that fast price and volatility are still possible.

Trade Wisely,

Doug

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AAOI Up 31%

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AAOI Up 31%

The AAOI trade has worked well, currently, up 31%, I will close it later today because of earnings tonight, and it’s hitting one of our major sell indicators in a Rounded Bottom Breakout chart pattern. Our GE trade is looking better, The bottom construction as paid off for the chart so far. Still, a few bumps to get over before it pays the big bucks. We bought some GPRO this morning with a 15.5% profit so far. GPRO may have its eye on the 200-SMA

The SPY still challenged by the 50-SMA on the daily chart. Price continues to trade in a narrowing range (looking at a daily chart for the past three-plus months).

Remember to check our morning blog post-

Monday through Friday

Public eLearning tonight 8:00 pm EST. Room 1

 

Testimonial

I have been a member of HRC for five years, RWO for three years. I applaud the efforts of all coaches Rick, Doug, Ed and Steve (also fellow members) in helping me become a better trader than I was starting out and I am still learning. Doug reinforces the “Price is King” mantra every day since we traders tend to forget it in the midst of finding the next ‘sure thing’ indicator. Rick, will make us sometimes answer our questions to foster the thinking and quicken the learning process. Over the years, I have been in many trading rooms. I am here to stay. This room and its members are the best. Period!

Fred Narielvala

 

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is 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 except for the trading desk of Hit and Run Candlesticks Inc.

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Considerable uncertainty.

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Considerable uncertainty.

uncertaintyOverall yesterday was a win for the bulls following though from the big rally last Friday.  However, with the DIA and SPY leaving behind doji patterns just below the 50-day average, they left us considerable uncertainty as well.  Although the Tech’s and small caps closed strong the question on everyone’s mind, will that be enough to fend off a bear attack?

Currently, the futures are pointing to a lower open, but with political news pending and a huge number of earnings reports, anything is possible.  I think traders should exercise a little caution this morning until some better price action clues appear.

On the Calendar

There is only one market-moving report on today’s Economic Calendar.  There was a Fed Speaker at 3:15 AM, the NFIB Small Business Optimism at 6:00 AM, Redbook at 8:55 AM and two bond events at 11:30 AM & 1:00 PM.  The potential market-moving JOLTS (job openings) expects to see a slight increase in March to 6.100 million vs. February’s 6.052.

We have another big day on the Earnings Calendar with 420 companies stepping up to report today.  Make sure you’re checking your holdings against expected earnings reports.

Action Plan

We begin Tuesday with a  little uncertainty, after printing doji patterns below the 50-day average on the DIA and SPY.  To make it a bit more confusing the QQQ and IWM managed close bullish and above their respective 50-day averages.  Struggling at this important resistance is not that big of a surprise, but we certainly but it now becomes imperative for the bulls to step up and fend off a possible bear attack.  A day of rest would be perfectly acceptable, but we don’t want to see failure patterns on the DIA and SPY at the end of the day.

Currently, the futures are pointing to a lower open of more than 50 Dow points however with so many earnings reports this morning anything is possible.  I would suggest a little caution this morning as the bulls and bears battle for control.  If holding some unrealized gains make sure you have a plans to protect them because failure here could easily embolden the bears to seek new market lows.  Let’s go bulls it’s time to step up!

Trade wisely,

Doug

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