Bullish Piercing Candle (RBB)
CYTK has printed a Bullish Piercing Candle in an (RBB) chart pattern catches my eye. Ater a closer look I can see a recent 9 bar run followed by a PBO and a Doji Continuation pattern setting up. A double bottom is being put in, and a Bullish “W” pattern is possible in a few days. A Bullish trade over $9.00 with (RBB) rules. The big game changer FOMC starts today. Let’s trade wise and profitable while preserving our capital.
We will discuss the trade in detail in our Members Morning Prep starting at 9:10 EST 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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SPY and Price Action
Yesterday the SPY dropped to our lower support line, now that the SPY chart has created two higher highs and two higher lows and the wedge is getting smaller I suspect resolution is near. Would resolution do we hold this line and rally to breakout or do we lose the line and head for the 200-SMA? FOMC will likely be a price mover this time, trade wise.
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 printed a bullish candle yesterday that created a Bull kicker Morning Star pattern. Over $43.90 would indicate fear of the bear.
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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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Weekly Bull Kicker On Volume
Looking at the chart on AQMS I see a weekly Bull Kicker on volume that has seen a little profit taking and now forming a continuation pattern. Let’s look at the daily chart now; price has chopped around above a rising 50 day-SMA in an (RBB) Rounded Bottom Breakout pattern. Friday left up with a Bullish Morning Star with both of the deuce magnets above. A three-day chart offers a nice Morning Star that will use as support. The big game changer this week will be the FOMC meeting report. Let’s trade wise and profitable while preserving our capital.
We will discuss the trade in detail in our Members Morning Prep starting at 9:10 EST 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% • Education and practicing what you learn is one of the keys to success. Take a Road Trip and Learn
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Event Calendar
SPY Update
The SPY produced four lower loss last week closing under the T-Line and the 50-SMA. Price did close above the lower bullish trend line keeping price contained in the wedge it has been building. Not that there is any guarantee but the price has been following the path of the tops and bottoms wedge. (February to now) Chop Chop Chop until we see a breakout or a breakdown. I will remain cautiously bullish until the chart turn bearish below the current chart pattern.5
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 could be a big clue; there was no real fear last week. However, price does seem to have found a little support. Premarket today is showing a little activity. The hourly chart is looking at $43.50
Rick’s Swing Trade Ideas Reserved for Subscribing Members
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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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All eyes on the FOMC.
With very little on the Economic Calendar and earnings season finally starting to wind down all eyes will be focused on the FOMC. In fact, all the attention over the next 3-days will likely focus on just one man. Jerome Powell, our new Fed Chairman. The market has obviously expressed considerable anxiety about the prospect of additional interest rate increases. The big unknown is will the new chairman’s feathers be dovish or hawkish? The market hates uncertainty and consequently may react emotionally both before and just after the FOMC policy statement. We could expect some additional wild price action during his first Press Conference as well. Remember the market and stay irrational much longer than you and I can remain liquid. Anything is possible so remain flexible and plan carefully for what could turn out to be very bumpy ride.
On the Calendar
To kick off this FOMC week we begin with a Fed Speaker at 9:00 AM from the Atlanta Federal Reserve Bank. After that, all we have is three bond events to wrap of the day.
On the Earnings Calendar, we have quieted down as well with just 55 companies reporting results today. However, just because earnings season is winding down, it doesn’t relieve from the responsibility of checking earnings dates against current holdings and stocks we are planning to purchase.
Action Plan
Friday turned out to be a choppy day of price action. The Dow tried a couple of times to get over the big round number at 25,000 but ultimately failed to hold above it by the close of the day. The QQQ and the SPY seemed content to chop in a small range but while the IWM bounced slightly to close the day positive. Sadly, the SPY closed below the 50-day average raising concerns that the Bears could gain the upper hand.
As I write the morning note, the Dow Futures are decidedly bearish and currently pointing to a 130-point gap down at the open. If the selling pressure persists, we could easily start breakings some key support levels which would encourage even more bears to plie on raising the fears about the overall market. If there ever was a time that we need the Bull to step up it’s now. Keep in mind that the FOMC begins its 2-day interest rate policy meeting on Tuesday with their decision released Wednesday afternoon. The market continues to be hypersensitive about rates, and with a new Fed Chairman at the helm, tensions are high. I’m expecting some wider ranging chop that could contain some fast price action as we wait for their decision.
Trade Wisely,
Doug
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Boring, choppy price action.
Choppy price action days like we saw yesterday can be frustrating and downright boring at times as we watch price grind up and down. Inexperienced traders just wanting some action often let choppy, boring markets affect their decision making. When I was a new trader just like most new traders, I just wanted to trade. Consequently, I made a lot of very bad decisions trying to force trades just because I was bored. Long story short if the choppy price action persisted very long I would have a huge string of losing trades. Individually the trades were not big losers but added up the damage to my account was substantial. If boredom is affecting your decision making, take a break. It’s amazing how a short break from your screens can help a trader maintain focus and promote good decision making.
On the Calendar
No rest this Friday on the Economic Calendar with four important reports. Kicking off at 8:30 AM Eastern with the Housing Starts report which is calling for a decline from the 1.326 million annualized in January to 1.285 for February. Permits according to consensus will decline in February to 1.322 million vs. 1.377 million annualized. At 9:15 is Industrial Production forecasters expect a 0.4% increase overall with the manufacturing growth increasing 0.4% as well. The Consumer Sentiment report at 10:00 AM is expected to decline slightly to 98.8 vs. the 99.7 February reading. Also at 10:00 AM is the JOLTS report is expecting job openings to decline slightly to 5.800 million vs. 5.811 in December. AT 1:00 PM is the Old Rig count but it very unlikely it will move the market.
On the Earnings Calendar, we have 67 companies expected to report results.
Action Plan
At the open yesterday, futures pointed to a possible bounce, but the bulls lacked the energy to hold onto early gains as trade war fears continue to swirl. The good news is the DIA held onto supports by the close while the other indexes all help up pretty well. There is, however, the reason to keep a close eye on the DIA and the SPY because it wouldn’t take much to tip the scales to favor the bears. So come on bulls sharpen those horns and push.
As I write this, futures markets are flat to every so slightly bullish but remember we have some big reports the market will have to digest before the open. Also, keep in mind as we head into the weekend that the FOMC meets next week on interest rate policy so don’t be surprised to see some directionless chop in the day ahead. Have a great weekend.
Trade Wisely,
Doug
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Stay Off The Thin Ice
Trading this market right now reminds me something my grandfather used to tell me…”Stay Off The Thin Ice”. The SPY closed on the 50-day SMA with the T-Line above itself the past 20+ days, it is very important for the bulls to maintain support above the 50day SMA. If not the next landing could be hard. The DIA’s closed yesterday with a Doji on a little support. The DIA’s are in bad shape below the 50-day SMA, the weight of the bear could be too much at this point, and a retest of the February lows may be required. If the bulls can pop the DIA’s over the 50-day SMA, it would allow the room to challenge the January highs. The market is between a rock and a hard spot, trade very carefully. Capital preservation should be at the top of your list right now.
We will discuss the trade in detail with a trading plan in our Members Morning Prep starting at 9:10 EST 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%
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 showed no real fear yesterday and closed below the T-Line if the VXX gets above $48.40 we are likely to see a bloodbath. Stay off the thin ice.
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.
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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