RBB, Hammer, Bull Engulf, Rising Price

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RBB, Hammer, Bull Engulf, Rising Price

RBB, Hammer, Bull Engulf, rising price. TNDM has been working on constructing Frypan/Rounded bottom for the past few months. This past week price has printed bullish candles that suggest buyers are poking around. Yesterday price broke out of a Pop Out of The Box pattern. FYI I am looking at a 3-day chart

We will any discuss our trades in detail during our Members Morning Prep starting at 8:45 AM Est. With Steve Risner and Rick Saddler at 9:10 am this morning. members morning briefing

Recently closed

VXX 6% • CAT 39% • TWTR 50% • FEYE 28% • OCN 39% • TWTR 54% • QQQ 28% • QQQ 179% • TWTR 180% • VXX 375% VIPS 118% • WTW 21.9% •

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Event Calendar

SPY • Who’s Winning the Battle?

The buyers and sellers are having a knockdown battle, and as long as the price stays below moving averages (50-SMA and below), the sellers will own this market. Also holds true to trading charts. Yesterday’s close engulfed Monday’s positive day for the price. Note that Monday did not have to follow through and neither Monday or Tuesday closed over the T-Line. Over $269.23 the buyers have a chance, below $257.80 the sellers gained more control.

The VXX short-term futures

Yesterday I wrote the VXX “Should not be dismissed just yet.” The reason is very simple, price and the chart pattern and the recent trend is still bullish. This action suggests that fear and concern are still in this market.

Rick’s Swing Trade Ideas Reserved for Subscribing 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.

 

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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Compare and Contrast Option Strategies

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[img_text_aside style=”1″ image=”https://hitandruncandlesticks.com/wp-content/uploads/2018/03/Compare-and-Contrast-Option-Strategies-thumbnail.jpg” image_alignment=”right” headline=”” alignment=”center”]In this E-Learning session we analyzed several option strategies to see how they can be very much the same or how they differ depending on the setup and tolerance to risk a trader might have.  We also covered how understanding the rights and obligations of options contracts has help you easily build any option position.

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Compare and Contrast Option Strategies

Short Squeeze Rally

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Short Squeeze Rally

Short Squeeze RallyAn impressive short squeeze rally was triggered yesterday as panic over a potential trade suddenly seemed not so likely.  To protect themselves from additional losses traders that were holding short positions were forced to cover accelerating the rally and squeezing even more out as the day progressed.  A whipsaw of this magnitude clearly demonstrates just how quickly very emotional markets can shift direction.  With the Dow rallying 669 points and this morning futures pointing to a more than a 100 point gap up guard yourself from getting caught up in this quickly shifting drama.

The fear of missing out (FOMO) is a powerful emotion that often efficiently robs traders of their hard-earned capital so quickly it will leave your head spinning.  Focus on the price action of the and remember to hold onto your edge realizing that in just one day markets are now very close to overhead resistance in a bearish overall pattern.  Keep in mind huge intraday point swings are possible so if you trade make sure you have handle the risk.

On the Calendar

The Tuesday Economic Calendar kicks off at 8:55 AM with the Redbook report which is unlikely to move the markets.  At 9:00 AM the Case-Shiller is calling for continued strength in home prices with an adjusted monthly consensus of 0.7% gain and a year-on-year rate seen at 6.2%.   Consumer Confidence is out at 10:00 AM and consensus remains very strong expecting a 131.0 reading in March vs. February’s 130.8 print.  Also at 10:00 AM are two non-market moving reports the Richmond Fed Mfg. Index and the State Street Investor Confidence Index.  Other than that we have a Fed Speaker at 11: 00 AM as well as three bond auctions.

On the Earnings Calendar, I show 69 companies that are expected to report today.

Action Plan

With trade war fears suddenly diminishing yesterday’s market experienced a strong short squeeze forcing many traders to cover short positions to stop growing losses as the market rallied.  This morning Dow Futures are pointing to more than a 100 point gap up at the open as the bulls try to follow through with some buying pressure.  As good as it was to see such a nice relief bounce lets keep in mind that the indexes have significant overhead resistance and technical damage that it has yet to recover.  At the close yesterday, the Dow is more than 950 points below its 50-day average with the SP-500 over 80 points below.  Long story short, there is a lot of work to do even though both the Dow and SP-500 are displaying a possible double bottom pattern.

Be careful chasing morning gaps after such a big one-day-rally keeping in mind that short-term profit taking could occur at any time.  The VIX remains above its 50-day average so continue to expect large intraday price swings, head fakes, and nasty whipsaw price action where the swing trader edge is small, and the potential for risk is high.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/AyGhr1KWyD4″]Morning Market Prep Video[/button_2]

APTI Bullish Pop Out Of The Box

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APTI Bullish Pop Out Of The Box

APTI has broken out of a Bullish Pop Out of The Box and now testing support. APTI has been trending then started to consolidate on March 8. The Bullish engulf on March 14 saw a little pop but no follow through. The following days drifted down to the $29.00 area (support) Yesterday’s candle opened near support and closed above the March 14 Bullish Engulf. The chart appears to have enough buyers to create follow through.

We will any discuss our trades in detail during our Members Morning Prep starting at 8:45 AM Est. With Steve Risner and Rick Saddler at 9:10 am this morning. members morning briefing

Recently closed

VXX 6% • CAT 39% • TWTR 50% • FEYE 28% • OCN 39% • TWTR 54% • QQQ 28% • QQQ 179% • TWTR 180% • VXX 375% VIPS 118% • WTW 21.9% •

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Event Calendar

SPY Update

The Strong Bull move yesterday will likely bring more buyers in today reaching for the next goal. The next goal would be about $269.00. A close over $269.00 today or tomorrow would put price above the 50% line of 3/13 high and the 3/23 low. From there the daily 50-SMA could be challenged.

The VXX short-term futures

VXX close yesterday above the downtrend line and should not be dismissed just yet.

Rick’s Swing Trade Ideas Reserved for Subscribing 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.

 

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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Volatility

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Volatility

VolatilityPolitically induced market volatility can be remarkably violent because of all the emotion whipped up in the press.  It reminds of the Chicken Little nursery rhyme where one minute the press seems to infer the sky is falling and the next minute reporting well, maybe not!  Such seems the case this morning as the trade war spin seems to have reversed over the weekend and cooler heads will likely prevail.  Who would have guessed? LOL.

Sadly it’s the poor retail swing traders that get damaged the most in these violent swings of market emotion.  As I have said several times over the last three months, retail swing traders have little to no edge in such a violently emotional market.  Trading accounts get chopped to pieces, and the traders have their confidence crushed in the turbulence.  Always remember that cash is a position and that you don’t have to trade every day to be successful.  Be patient your edge will return in due time.

On the Calendar

We begin this week on the Economic Calendar with only non-market-moving reports today.  The Chicago Fed Activity Index is at 8:30 AM Eastern with the Dallas Fed Mfg. Survey at 10:30 AM.  We have two Fed Speakers at 12:30 PM and 4:30 PM as well as four bound related events to complete the calendar day.

The Earnings Calendar shows 73 companies report results today.  It’s hard to believe, but Friday marks the end of 2018’s first quarter.  That means second quarter Earnings season is only about three weeks away.

Action Plan

Last week was a rough week for the market as trade war fears brought the bears out in droves.  The DIA and SPY closed at its lowest at its lowest level of the year so far this year.  The SPY closed Friday just below the 200-day average with the DIA missing that mark by only 1.5 points.  The QQQ’s fell more than 2.5% while the IWM dropped just over 2% on the day.

It would seem this morning that the tough talk with China was a move designed to bring them to the table to cut a fair trade deal.  Over the weekend pressure was added to China as a former Obama official said that President Trump’s concerns were valid.  China has already made moves to relieve some of the trade deficit imbalances, and both sides have expressed a willingness to negotiate over the weekend.  As a result, Dow Futures are currently pointing to a 275 to 300 point gap up this morning.  That kind of huge gap will put some serious pressure on short traders that held over the weekend forcing them to cover.  That means the conditions for a short squeeze exist this morning.  Volatility is very high so expect very fast price action with intraday reversals that could easily swing the Dow more than 100 points in just a few minutes.  It may be wild, but at least we will get some sweet relief from last weeks heavy selling.

Trade Wisely,

Doug

[button_2 color=”green” align=”center” href=”https://youtu.be/qr3bxh34TLc”]Morning Prep Video[/button_2]

Uncomfortable About Chasing A Trade

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Uncomfortable About Chasing A Trade

Honestly, folks, I feel so uncomfortable about chasing a trade today that I am not posting any.  The market is in an angry phase that shreds accounts. If we see a trade during the day, we will post it in the trading room and on our Smart Phone App. Trading because of an addiction or desperation is not smart trading.

We will any discuss charts you may have in the trade in detail during our Members Morning Prep starting at 8:45 AM Est. With Steve Risner and Rick Saddler at 9:10 am this morning. members morning briefing

Recently closed

VXX 6% • CAT 39% • TWTR 50% • FEYE 28% • OCN 39% • TWTR 54% • QQQ 28% • QQQ 179% • TWTR 180% • VXX 375% VIPS 118% • WTW 21.9% •

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Event Calendar

SPY • Relief Rally

Friday the SPY fell again and landed on the daily 200-SMA, also very near price support. Pre-market numbers suggest a relief rally bounce just as we talked about Friday. A common relief rally to about $263.35 would be normal, maybe even between $263.35 and $265.90. The SPY felt pain and damage last week, and if today’s bounce is the start of a bottom, we will need to see a constructed reversal pattern. If the Bulls are not ready for a repair job, we could slide into the February low area.

The VXX short-term futures

THE VXX chart demonstrated it’s fear last week by breaking out and holding into Friday’s close. The pullback I see premarket is still above the downtrend line. Fear and volatility are in the house.

Rick’s Swing Trade Ideas Reserved for Subscribing 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.

 

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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