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.
*************************************************************************************
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.
*************************************************************************************
SRNE Printed A Bullish Morning Star
On a weekly chart, SRNE has pulled back and printed a Bullish Morning Star Candle pattern. On a daily chart, SRNE has trended away from the 200-SMA for about 3-months. I see a couple of ways and reasons to trade SRNE, and a couple of pitfalls. I will explain to the members morning briefing and the monster profit potential.
Why will some make a darn good profit on a trade and others will struggle or even lose money on the same trade?
►Up Coming Events
►SPY Up Date
The SPY futures are down this morning, not surprising with chart formation Friday. When you take into consideration price action dancing around a Blue Ice Failure pattern, you’re likely to get a little washout. Plus we have not made a Low High Higher Low – Higher High yet. It is possible the Bule Ice Failure will be helpful in the process. If the sellers can get through the 200-SMA, this correction could get nasty, and we will love the short and Inverse trades.
►Learn Our Tools and Trading Techniques
On November 13, Rick shared BW as a trade for members to consider and how to use the trading tools listed below. Currently, the profits could have been about 59% or $273.00 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
VXX is showed signs of support Friday. A buy signal and chart pattern would be helpful clues for a buy.
►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.
*************************************************************************************
Healthy Price Action
The morning the bears seem to have returned with a vengeance on their mind. The Dow Futures are pointing to a substantial gap down it will likely punish those that chased into a 6-day rally at resistance. While many might see this move as a negative, I view it as a sign of healthy price action. In fact, a pullback after such a strong relief rally could be just what the doctor ordered if the bulls can defend a higher low.
I have said several times that this selloff would likely take several weeks to resolve itself. If the bull can hold a higher low or develop a level of consolidation our swing trading Edge is likely to return. However it the bears gain the upper hand watch for a retest of the February lows. I know this is a biased statement, but I think the economic data and the strong earnings results will support the bulls. However, as always I will not try and predict I will patiently watch and wait for proof in the price action that buyers have regained control.
On the Calendar
We begin this four-day trading week with a very light Economic Calendar this Tuesday. Between 11:30 AM and 1:00 PM there are 4-bond auctions which both begins and ends the economic calendar today.
On the Earnings Calendar, we have more than 160 companies reporting results. The first quarter earnings season seems to spread out forever. This year we will well into March before it draws to a close. Checking earnings against current holdings or companies, you plan to buy is a daily habit a trader should build into each day as part of your preparation.
Action Plan
Thursday and Friday left behind cautionary candle patterns in the DIA, SPY and the QQQ. The hanging man pattern and the shooting star pattern near the 50-day average on the DIA and SPY are the most concerning. A failure at or near the 50-day average would raise concerns of a possible retest of February lows. However, if the bulls can manage a hold a higher low or build a level of consolidation, it could finally calm the market volatility and bring back a swing traders edge.
Today the Dow Futures are pointing to about a 200 point gap down which will create a significant fear and once again elevate intra-day volatility. Expect some very fast price action today with the possibility of nasty whipsaw price action. The 25,000 level of the Dow is a very importing psychological level for the market. I suspect that will be an important battleground between the bulls and the bears. Be very careful not to get caught in the crossfire.
Trade Wisley,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/TDwX6yPQBH4″]Morning Market Prep Video[/button_2]
