An amazing time to be a trader!
The bulls seem inspired to reach out to 25,000, and the VIX may be poised to make a new historic low. Indeed, An amazing time to be a trader! There is no fear in the market and money following to the market currently seems to be unending. When times are this good, it’s very easy for traders to become complacent. Take advantage of everything this bullish exuberance has to offer but maintain your focus and discipline. It could happen today or years from now, but eventually, the tide will go out. Be prepared, not surprised by always having a contingency plan. Let the good times roll but always have your go bag packed an ready.
On the Calendar
The Thursday Economic Calendar gets going at 8:15 AM Eastern with the ADP Employment Report. The ADP has lost much of its credibility this year having been glaringly wrong so much of the time. ADP is expecting 188k in jobs growth in December. At 8:30 AM we shift to Jobless Claims, which are expected to decline slightly to 240K this week. The EIA Petroleum Status Report is at 11:00 AM today and will likely be the most potential market-moving report of the day. They don’t forecast this number, but with the current rally in oil trader would the trend of supply reductions to continue. There are several other lesser reports today as well as Bill Announcements and a Fed Speaker at 1:30 PM.
On the Earnings Calendar, there are 16 companies reporting today. Notable is LK, MON, and PKE before the bell with PSMT and SONC after the bell. I would not expect any of the earnings reports today to be particularly market-moving.
Action Plan
New all-time highs in the DIA, SPY, QQQ with IWM continued to lag behind in consolidation. The Dow closed only 78 points below the huge round number of 25,000. Futures are currently pointing to a Dow gap up of about 70 points this morning suggesting 25K will most likely give way to the bulls today. I think the question is what happens when this major milestone occurs. As always stay focused on price action for clues and try not to predict or trade your bias.
Clearly, the bulls are large and in charge, but there is also the potential stumbling blocks to be aware of today. First, is how price will react to the big round number of 25K. Will we blast right through with price holding it as support or will it become a significant level of resistance for the Dow? Secondly, with the strong current rally underway in oil a surprise EIA Status showing a build in supplies could trip up this bull rally. The VIX is very near all-time-lows suggesting no fear but don’t make the mistake of being complacent. It is entirely possible with the gap up this morning that the VIX could set a new historic low. Truly, an amazing time to be a trader!
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/FbEq_Gv1skw”]Morning Market Prep Video[/button_2]
Bullish Engulf | POOTB
Hit and Run Candlesticks Members ► Log into the Members Blog for complete blog post with trade ideas | Log In
NTNX – The buyers of NTNX created a Bullish Engulf on December 26 after a bullish run and a pullback. The Bullish Engulf followed by a (POOTB) Pop Out of The Box Pattern. The T-Line family has continued to trend higher proving the strength of the price action and commitment by the buyers. Several profit zones are available with a continued bullish trend.
At 9:10 AM ET. We will talk about the technical properties of NTNX with target zones, a couple of logical entries and a protective stop. We will also be showing our trade plan with risk/reward and expected profits.
► Must Read Trade Update (INSY)
On December 14, we shared, in detail, the technical chart properties of INSY in the Trading Room why we thought this chart was ready for a run. Yesterday the profits were about 113% or $710.00. Using simple rules and techniques to achieve swing trade profits. A traders lifestyle is worth the work.
Learn how and what we trade: The T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Patterns • Buy Box • Volatility Stops • Price Action • Candlesticks • Profit Zones • Entry Zones • Protective Stops • RBB Pattern • Pop Out of The Box Pattern
[button_2 color=”light-green” align=”center” href=”https://hitandruncandlesticks.com/hrc-rwo-30-day-offer/” new_window=”Y”]30-Day Trial • Cancel Anytime • No Auto Billing[/button_2]
► Eyes On The Market
Thr Bulls have worked that charts very well the first two trading days of 2018, and I suspect today will be the same. We may all get to ware our 25K tee-shirt for the DOW reaching a milestone after today. So let’s all think positive. The SPY (ETF for the S&P-500) has been lightly bouncing off the T-Line Low reaching and holding on to higher highs. The Lower T-Line is a moving average that we use for a moving trend line of the Candlesticks (price action lows).
The VXX short-term futures hit a new low yesterday after trying to climb over the Lower T-Line only to fail.
Rick’s Swing Trade ideas – MEMBERS ONLY
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Learn how and what we trade: The T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Patterns • Buy Box • Volatility Stops • Price Action • Candlesticks • Profit Zones • Entry Zones • Protective Stops • RBB Pattern • Pop Out of The Box Pattern
Investing and Trading involves 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.
*************************************************************************************
Day-1, SPY New Record High
If you ever had a question if the bulls still controlled the market that should have dissipated yesterday. Day-1, SPY New Record High and the QQQ’s are not far behind. A good reminder to never short a trending market. Over the next three days, there is a lot of important economic data coming out, and I would be surprised if any of it is not supportive of current prices. Also, keep in mind that Earnings Season is just around the corner and many stocks could rally in anticipation. Only yesterday in the QQQ we saw how just how much analysis upgrades on key stocks can dramatically reverse an indexes direction. By the way, analysts are bullish on earnings growth this year.
[button_2 color=”blue” align=”center” href=”vimeo.com/246037400″]New Member Video[/button_2]
On the Calendar
The hump day Economic Calendar really gets going at 10:00 AM Eastern with the ISM Mfg. Index and Construction Spending. Consensus for the December ISM is down just slightly to 58.0 vs. 58.2 last report but continues to be very strong. Construction spending is expected to make a solid gain of 0.6% with residential spending leading the gains. Then at 2:00 PM we have the release of the FOMC minutes.
There are 12 companies expected to report earnings today. UNF & CNC report before the bell with RAD and RECN after the bell. Make sure you are checking as part of your daily preparation.
Action Plan
The DIA, SPY, and IWM continue to remain in a chop zone however at the end of the trading day seemed to have found some bullish inspiration. The QQQ, on the other hand, had an incredible day completely reversing a rather bearish appearance to a full on bullish stance. I would expect the QQQ’s to make its first record high of 2018 very soon an accomplishment the SPY managed to pull off at the close yesterday.
Futures are currently pointing to more than a 40 point Dow gap up at the open. Keep in mind a Dow 25,000 print is not that far away and after resting the last couple weeks may soon find the energy to make a push higher. The VIX made a sharp decline yesterday afternoon and now looks like it could once again test historical lows. There is no fear in this market. Keep in mind that the market could easily slip into choppy price action after the morning rush as it waits for the release FOMC minutes. Expect higher volatility right after the release as the market digests the new information.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/HbV1XEet69k”]Morning Market Prep Video[/button_2]
FRTA – Ascending Triangle Breakout
FRTA has been trending and now has broken out of a Bullish Ascending Triangle. After the November 8 Bullish breakout FRTA has produced a rising trend. The past 15 days or so the price action has drawn an Ascending Triangle pattern. FRTA has a great deal of profit potential if you look at the $20.00 profit zone and the profit zones along the way
At 9:10 AM ET. We will talk about the technical properties of FRTA with target zones, a couple of logical entries and a protective stop. We will also be showing our trade plan with risk/reward and expected profits.
► Must Read Trade Update (SGRY)
On December 12, we shared in detail, the chart setup of SGRY in the Trading Room, Yesterday the profits were about 36.92% or $360.00 with 100 shares. Using simple rules and techniques to achieve swing trade profits. A traders lifestyle is worth the work.
Learn how and what we trade: The T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Patterns • Buy Box • Volatility Stops • Price Action • Candlesticks • Profit Zones • Entry Zones • Protective Stops • RBB Pattern • Pop Out of The Box Pattern
► Eyes On The Market
Welcome to 2018, what a great day yesterday was. Seems like the market it is playing with a full team! The SPY is still under the control of the T-Line trend (above all 3). Yesterday the SPY closed up $1.01 with a small breakout poised to follow through with a J-Hook continuation pattern.
The DJ-30 closed yesterday with a Doji, bullish chart pattern above the T-Line, come 25K you can do it!
The VXX short-term futures lost all interest yesterday in playing the game!
Rick’s Swing Trade ideas – MEMBERS ONLY
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Investing and Trading involves 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.
*************************************************************************************
