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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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.
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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
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3-day weekend.
Thus far earnings and economic data have continued to fuel the relief rally that is now six days old. Both the DIA and SPY are at key levels, and the question is will the bulls hold strong as we face a 3-day weekend. Currently, futures are pointing to a modestly positive open. A very nice change from the daily triple-digit gaps of the last couple weeks. Personally, I would like to see the market rest and consolidate, but not surprisingly the market does not care about what I want. Consequently, I need to prepare for anything and sadly that must include the possibility that the bears could re-emerge ahead of the long weekend. Plan carefully and remain focused on price action.
On the Calendar
Friday’s Economic Calendar gets started at 8:30 AM Eastern with Housing Starts and Import/Export Prices. Consensus expects January Housing starts to come in at a strong 1.232 million annualized rate with permits declining slightly to 1.300 million vs. 1.302. The consensus for Import/Export Prices expects a gain of 0.6% in import prices and 0.3% for export price gains. At 10 AM we get a reading on Consumer Sentiment which is expected to decline only slightly to 95.5 vs. the January number of 95.7 suggesting no panic in the recent market selloff. After that, we have reports on E-Commerce Retail Sales at 10:00 AM and the Baker-Hughes Rig Count at 1:00 PM but both are very unlikely to move the market.
On the Earnings Calendar, we get a break in the pace of earnings reports with less than 60 expecting to fess up today. Stay on your toes because we have about 700 companies on the calendar next week.
Action Plan
Yesterday the market produced a very big whipsaw to test the nerves of traders. The Dow gapped up more than 200 points but slipped negative within 1.5 hours then rallying 300 points into the close. That means that over the course of the day the Dow traveled more than 700 points. Just what the doctor ordered for quick day traders but challenging for swing traders. For the first time in 2-weeks of trading, the futures are not suggesting a triple-digit gap. In fact, as I write the futures are close to flat but of course, as earnings and economic reports roll out a lot can change.
The relief rally is now six days old bring the DIA and SPY back above the 50 SMA. The QQQ’s have established clear leadership, and the poor IWM continues to lag behind still below key resistance levels. As you plan your day, keep in mind, that we have a 3-day weekend ahead. After six days of rally and facing a long weekend it would not be surprising to see a little profit-taking begin. However, with volatility remaining so high, anything is possible. Guard against complacency and remain focused on price action clues.
Trade Wisely,
Doug
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