Riding the T-Line
VECO has broken north of the downtrend line riding the T-Line, rested and yesterdays closed testing the recent high. VECO’s recent bullishness suggest higher highs are yet to come with a confirmed J-Hook Pattern. A profit zone may be around the $22.25 area.
We will discuss the trade details with Trader Vision 20/20 in our Members Morning Prep starting at 9:10 EST this morning.
Hope to see everyone at the members morning briefing 9:10 EST today.
►SPY Up Date
The Bullish follow-through yesterday was top shelf pinning our trend line with perfection. Yesterday the SPY closed strong over the 50% line December January run; it looks ready to challenge the 38.3 Fib line within a day or two. Mild consolidation is expected, always what for sell signals and patterns that threaten the trend.
►Learn Our Tools and Trading Techniques
On February 15, Rick shared MOYK as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 14% or $725.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.
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
►The VXX short-term futures
The VXX is likely to see the 34-EMA with the sellers in control.
►Rick’s Swing Trade Ideas Reserved for Subscribing Members
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
To learn more about our trading tools join us in the trading room or consider Private Coaching. Rick will help coach you to trading success.
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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Be careful not to chase.
Another day and yet another triple point gap indicated by to the Dow Futures. Be careful not to chase! One of the many issues I struggled with as an inexperienced trader was getting caught up in the drama of the market. I would watch all the financial news with the exaggerated headline graphics and talking heads touting their market greatness and lose all sense of discipline. Que the dramatic bumper music. I would see the futures pointing to a big gap up and jump headlong into the shark-infested waters.
After getting my fair share of shark bites and losing more capital than I care to remember if finally learned a few very painful lessons. Trading plan and trading rules are there to protect you from you. However, they only work if you learn to ignore the drama and develop the discipline to follow them. After 13 years of supporting my family as a full-time trader, I can confidently say it’s my discipline to follow my plan that has made me successful. Are you following your plan or are you allowing the drama of the market control your destiny?
On The Calendar
The last week of February begins with a busy week on the Economic Calendar. The very important New Home Sales number come out at 10:00 AM Eastern as is expected to weaken but matain its strong rising trend with at print of 600K. At 8:30 AM is the Chicago Fed National Activity Index and at 10:30 comes the Dallas Fed Mfg. Survey, but neither is expected to move the market. We round out the today’s calendar with three bond related events.
We also have another busy week on the earnings calendar as this earnings season continues to drag forever. Today there are over 12o companies expected to report earnings today. Always be prepared.
Action Plan
On Friday afternoon last week, the price action started to indicate improvement and give the appearance of holding support. The Dow managed to close above the psychological 25k level as well as hold above the 50-day average. The SPY also showed bullish strength above the 50-day average, and even the beleaguered IWM managed to close a few ticks above this important average. The QQQ continued to matain market leadership and closed Friday within striking distance of all-time resistance highs.
Unfortunately, it looks as if this gap-happy market will continue this morning as with the Dow Futures suggestion it will open about 150 points above Friday’s close. With VIX pulling back to test price support and the 50-day average be careful not to get caught of in morning drama and chasing into the gap. Keep in mind that price volatility remains high and the big intraday reversals we experienced last week are still possible. Stick to your plan and stay disciplined to your rules.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/oL4cv8hhgBE”]Morning Market Prep Video[/button_2]
Price Action Broke Resistance
Our moving trend lines have met the trend test with flying colors. Price action has broken out of resistance now support. Currently, a Pop Out of The Box Pattern is forming. I will be setting up a trading plan for about 25% with 3.24 to 1 risk ratio for VIPS in our Members Morning Prep starting at 9:10 EST this morning.
[button_2 color=”blue” align=”center” href=”https://hitandruncandlesticks.com/hit-and-run-candlesticks/” new_window=”Y”]Monthly Membership • Trades and Education you get to Keep[/button_2]
Hope to see everyone at the members morning briefing 9:10 EST today.
►SPY Up Date
Friday was a good day for the buyers! The buyers added another important piece to the Bull Flag with a Bullish Morning Star Candle Pattern. Today we are looking for follow-through and a close over $275.45. A close over $275.45 would put the buyers in a good position to challenge the January highs in the future. A failure back below the 50-SMA would indicate the sellers are stronger and have a different agenda for the direction of price.
►Learn Our Tools and Trading Techniques
On February 13, Rick shared VIPS as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 16% or $250.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.
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
►The VXX short-term futures
Currently, VXX is trading below the T-Line Bands, Seller control
►Rick’s Swing Trade Ideas Reserved for Subscribing Members
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
To learn more about our trading tools join us in the trading room or consider Private Coaching. Rick will help coach you to trading success.
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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Patience
We have all heard the phrase; Patience is a Virtue. For the swing trader patience is a difficult but very import skill that each of us must learn to master. To be successful in this business, we wait for the proper combination of patterns, price action, volume and volatility that provides us with an Edge. That sweet spot where risk is acceptable and probabilities move in our favor. Patience is also a test of endurance because the longer we wait, the harder it is to maintain the discipline of being patient.
The fact is traders just want to trade, but if we trade, without an edge, our capital is ripped from our accounts and given back to Mr. Market. I won’t speak for you, but I think I deserve my capital much more than that Mr. Market. Consequently, it’s essential that I master the skill of patience and develop endurance to wait for my Edge! Are you willing to endure the wait or will you turn your capital over to Mr. Market?
On the Calendar
It would seem this Friday on the Economic Calendar is an FOMC speaker day. At 10:15 AM Rosengren and Dudley speak with Mester at 1:30 PM and Williams ending the day at 3:40 PM. The Baker-Hughes Rig Count at 1:00 PM is the only economic report today, and it is not expected to move the market.
We also get a break on the Earnings Calendar today with only 56 companies reporting. The vast majority of the earnings reports occur before-the-bell.
Action Plan
We started the day with some bullish energy, but once again the bears mounted a counter-offensive that left all but one index seeing red. At one point during the day, the Dow was up more than 300 points but gave nearly half of it back and once again closing below that big round number 25,000. The SPY ended the day in the red, closing below the 50-day average as did the IWM. Yesterday was the 3rd attempt in as many days for the SPY and the DIA to break through the 50 but thus far been rejected. The IWM has experienced the rejection of the 50 SMA, 4-days in a row. Even the QQQ, the strongest of the four indexes could on hold on to a positive print at the close.
While all that seems pretty bearish, there is a glimmer of bullishness because all four of the indexes are at least for now holding above significant price support levels. The choppiness of the price action has made trading extremely challenging if on impossible except for the very fast intra-day traders. By in large earnings reports continue to come in positive as does most of the Economic Reports. As I write this, the Dow Futures are pointing to a gap up of more than 100 points, adding to the choppy confusion. What all this means to me as a swing trader is that I have to continue to patiently wait until the intra-day volatility subsides and a discernable edge can be defined. Long or short doesn’t matter just show me a direction. Have a great weekend.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/tuM-WitH9JA”]Morning Market Prep Video[/button_2]
Preparing To Challenge The Gatekeeper
6:50 am 2/23/18 the SPY futures look as if they are preparing to challenge the gatekeeper (50-SMA and the Bearish downtrend line) yet another time this week. I must admit this has been a challenging week for trading. One of the side effects of a nondirectional market is chop. Chop is very hard for most traders because it requires patience while the position (s) you’re in is slow, stagnant and seem to be barely hanging on. The way I see it is if the SPY can hold above $275.45 the Bulls will have a real chance of climbing back to the January high. On the other side of the coin, if the Bears can push through $268.15, they will likely test the February low. Cash is a position for a few days, just until the market finds it’s directional compass.
► Saturday, February 24, 2018
Tomorrow Saturday, February 24, Five Profesional traders come together to share with you a day of trading insight. These traders will share what works for them, and it just might be the key that unlocks the trading monster within you.
Candlesticks • Price Action • T-Line • T-Line Bands • Support • Resistance • Trends • 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 • Continuation Patterns • Trade Planning.
Rick’s Swing Trade ideas
Member Login – Full Daily List
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
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 is High
The bulls and bears are locked in a vicious battle for control. Volatility is high, price moves are fast, and complete reversals happen in the blink of an eye. I have suggested several times that the selloff would take weeks if not months to resolve and to guard yourself against being chopped up during such times. I have continued to suggest caution and be patient. I suggested if you do trade, then trade smaller than normal positions and be prepared for fast and whippy price action. As a result, I have received some negative and very critical comments.
I am an unapologetic picky trader because I have learned the hard way that a market such as this can chop an account to pieces. I’ve been there, done that and allowed the market to take back some or all of my hard earned profits. I want to remind everyone once again that you don’t have to trade every day to be a successful trader. Protect your capital. Trust me on this that good trading will one day return. The question is will you still have the capital and the confidence to take advantage of it when it does.
On the Calendar
Thursday’s Economic Calendar gets going at 8:30 AM with the Jobless Claims report. Consensus expects claims to come in unchanged this week at 230,000. At 11:00 AM is the EIA Petroleum Status report and has no forward-looking forecast but is trending toward rising supplies. There are three Fed Speakers at 10 AM, 12:10 PM and 3:30 PM to discuss the market sensitive issue of rising interest rates. We also have several reposts that are very unlikely to move the market such as Consumer Comfort, Leading Indicators, Kansas City Fed Mfg. Index, Fed Balance Sheet and Money Supply.
On the Earnings Calendar, we have more than 250 companies reporting today.
Acton Plan
The bulls seemed to be back in charge yesterday with the Dow rising more than 300 Points after the Fed Minutes were released. However, the bears suddenly returned and in the market fell more than 450 points from its high. When the Dow has a point travel of more than 750 points over the course of the day, swing traders struggle. What seems like a good entry signal can quickly reverse and deliver a painful loss to even the best swing traders.
The SPY, DIA and the IWM are displaying the possibility of a Blue Ice Failure pattern. Adding confusion is the Futures that continue to flip back and forth delivering daily gaps and often reversing the closing direction. As I write this, the Dow Futures are pointing to small gap up, but that amounts to more than a 175 point reversal of yesterdays close. Trading during times like this will rob you of not only capital but also take your confidence. As a result, I will continue to repeat, that cash is a position and that you don’t have to trade every day to be successful.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/fGRvj29NTuc”]Morning Market Prep Video[/button_2]
Price Leading T-Line Band
Price in leading the T-Line Bands. On a weekly chart, BYD has had bearish follow through from a little Shooting Star. On the daily chart, you can see the sellers activity with lower highs on the T-Line. Yesterdays Doji ended up closing below the T-Line Band Low. At the morning briefing this morning I will show how price has broken through and tested the trend line. Price has also slipped under the volatility Stop. Currently, VXX is building support in a pullback, the chart has turned bullish. This chart is giving the clue of caution.
Hope to see everyone at the members morning briefing 9:10 EST today.
►Important Events
►SPY Up Date
The SPY closed below the 50-SMA keeping the Blue Ice Failure alive. The price action of yesterday favored the sellers by closing below the previous days low, and price closed back below the upper T-Line Band. I see two chart patterns forming, on the Bull and One for the Bear. If you are a bull you are seeing the Low High, Higher Low being created, if you are a bear you see a Lower low and a failed high and a Blue Ice Failure being created. On both, we need to see follow through for direction. Weakness suggest we test below the Lower T-Line Band strength suggest we test the recent high @275.32
►Learn Our Tools and Trading Techniques
On December 11, Rick shared GLYC as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 62% or $941.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.
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
►Rick’s Swing Trade Ideas Reserved for Subscribing Members
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
To learn more about our trading tools join us in the trading room or consider Private Coaching. Rick will help coach you to trading success.
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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