Candle Pattern and Bullish Construction
The candle pattern and bullish construction are suggesting the buyers are interested at these prices. BW has been in a long-term downtrend and is now 78% away from the 20—SMA and 17% from the 34-EMA making BW a PINBALL set up. FYI, it was the Pinball set up and the T-Line that made the difference for me. Hobbyist trader to trading for a living.
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
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 Showing Bullishness
The SPY is working hard to hold the bullish “W” pattern and keep the momentum after breaking out of the downtrend line. The T-Line is bullish to the 34-EMA, and the 34-EMA is still below the 50-SMA. If the bullishness continues, even with a test of the recent breakout the 34-EMA could be bullish with the 50-SMA. Price has entered the resistance area so I would be too surprised to see a test of the recent breakout.
VXX – Is now sliding back now that the market has shown bullish colors. At this point in the VXX, the trend is now bearish.
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. 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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Don’t make the mistake of Chasing.
After a six-day winning streak, the futures are currently suggesting a moderate gap up at the open today. The market has given us a great week of profits, but we don’t make the mistake of chasing this late into the rally and just ahead of the weekend. As the indexes approach important resistance levels, I’m much more inclined to capture gains rather than add new risk as we enter the weekend.
As a matter of fact, members watch as I took profits yesterday afternoon as the market continued to power higher capturing gains that many would have to work a month to earn in a regular job. The point is don’t allow greed to prevent you from taking a profit and doing your job as a trader. Remember quality trades are much more important than quantity.
On the Calendar
The Friday Economic Calendar gets going at 8:30 AM Eastern with a Fed Speaker and the Import-Export Prices report. Forecasters expect imports to rise 0.5 percent in April while Export prices will grow by 0.3 percent. AT 10:00 AM consensus expects Consumer Sentiment to tick higher in April with a strong reading of 99.0. Last but not least is the Baker-Hughes Rig Count at 1:00 AM which is not expected to move the market.
On the Earnings Calendar, there is a big drop in the number of reports with only 43 companies ready to fess up today. Next Monday and Tuesday are pretty big days with around 400 points between them but after that 2nd earnings season begins to wind down.
Action Plan
Yesterday the Dow and SPY showed considerable strength pushing higher after breaking above the 50-day average just the day before. The QQQ’s powered higher as the IWM nears the all-time highs for the average. As I write this, the futures are suggesting a gap up open which will make the seven straight days of gain is the DIA, SPY, and QQQ. If you’re not already long, I would now caution you not to chase as we are nearing significant levels in the indexes.
It’s been a great week of gains I will be more focused mostly on taking profit as we head into the weekend. The big challenge for the market now is to prove the bulls are strong enough to hold these key levels of support. The bulls are in control and could most certainly push hard enough to close the week with 7-straight days of gains, but it would also not be that surprising to see profit taking ahead of the weekend. Keep in mind gap up opens can easily be seen as an opportunity to sell into strength to capture gains. I wish you all a great day and a fantastic weekend.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/zB-i1IknWgE”]Morning Market Prep Video[/button_2]
Hit and Run Candlesticks
Today there is no morning blog post today May 11, 2018
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
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 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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Psychological Boost
Yesterday 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
[button_2 color=”green” align=”center” href=”https://youtu.be/GX59VVNaqUE”]Morning Market Prep Video[/button_2]
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
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
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.
*************************************************************************************
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.
