Thanks To The Members
I want to take a moment and say THANKS to all the members from Hit and Run Candlesticks and Right Way Options for sharing your trades, strategies. You are what makes us the best! Thank you to Ed Carter for the long hard work you have done on Trader Vision. The Trader Vision program could be the most important in a traders tools box.
Ya, it’s Friday, and you know what that means! I’ll see you all today at 9:10 AM ET in the trading room.
► Learn the Power Of Simple Trading Techniques
On January 10, we shared SRNE and how to use the trading tools listed below to profit from SRNE. Yesterday the swing profits would have been about 23% or $350.00 with 300 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.
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Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
► Eyes On The Market
The SPY closed with a Doji inside day yesterday still fighting Tuesdays Bearish Dark Cloud Cover. Not yet able to breakout out but holding the bullish trend. Yester marked the twelfth day of a Bullish T-Line Run and unless the Bears can find a way in today will be the 13th day. The last three days have proven to be a battle between the buys and sellers, note the higher lows, but the price action can’t break out. (The battle is on)
The VXX short-term futures closed for the 3rd day above the T-Line and the 3-ema is holding above the T-Line. As long as the price stays above the T-Line, the suggestion is that there is a bit of pressure applied to the buyers. The question is who crakes first.
Rick’s Swing Trade ideas – MEMBERS remember to log into the members’ blog for the trade ideas – Member Login
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Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
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.
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Bullish T-Line Run
MRO has been in a bullish T-Line Run and has slowed to move sideways for the 3rd time. Each time the buyers picked it up and push higher. Yesterdays Bullish Harami is a clue that the buyers are still around and active. The last four bars have supported above the recent bullish construction. Bullish above $18.90, to learn more about entries join us in the member’s area or consider a trading coach.
Today At 9:10 AM ET. We will demonstrate live how MRO could be traded using our Simple Proven Swing Trade Tools
► Learn The Power Of Our Simple Trading Techniques
On October 12, we shared, in detail, the technical chart properties of PNK in our members Trading Room and why we thought this chart was ready for a profitable run. Yesterday the swing profits would have been about 37% or $900.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits. (See Above) PNK is now setting up again with a Pop Out of The Box Pattern.
Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
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► Eyes On The Market
The buyers managed to put together a Bullish Harami yesterday against the Bear Dark Cloud Cover (The Battle IS On). The buyers and seller will fight it out, and the chart will move higher or lower depending on the winner. The fight between the Dark Cloud Cover and the Bullish Harami will take place in bullish territory with price above the T-Line, and the T-Line is trending in the bullish direction.
The VXX short-term futures closed with an inside day Doji yesterday against an Island reversal breakout candle. Yesterday’s price action and close created the second bullish V-Stop support and closed above the Lower T-Line Band. Bottom line the VXX short-term futures are trying to construct a reversal bottom.
Rick’s Swing Trade ideas – MEMBERS remember to log into the members’ blog for the trade ideas – Member Login
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
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.
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More buyers than sellers!
Why? More buyers than sellers! Yesterday was nothing short of amazing as the bulls squeezed out any and all would be bears that dared to get short Wednesday. Does the market appear very stretched? Yes. Does that mean it must necessarily selloff? Obviously not! Everything seems to be coming up roses for the market. Employment is very strong; businesses are growing, wages are increasing, manufacturing is on the rise, consumer confidence is near all-time highs, housing is strong and although rising rates are still historically low. Now the question is can earnings growth justify current prices? Early reports seem to suggest that the answer is, Yes. Will it continue? Only time will tell.
On the Calendar
The Thursday Economic Calendar has three important reports at 8:30 AM Eastern time. First, we have Housing Starts which consensus is expecting a slight pullback to 1.280 million vs. 1.297 million annualized. November permits are expected to come in at 1.300 million vs. 1.303. Second, is Weekly Jobless Claims are expected at 250k a slight decline from last week. The third is the Philly Fed Business Outlook continues to show enormous strength with backlogs building as new orders pour in faster than shipments can move out the door. At 11:00 AM is the EIA Petroleum Status Report which has shown supplies trending lower with the cold winter demand increasing. After that, we have a one Fed speaker at 6:05 PM, some non-market-moving reports and bunch of bond actions to round out the calendar day.
On the Earnings Calendar, we have more than 45 companies expected to report today. Banking continues to be in focus such as KEY, PACW, and MS before the bell. JBHT is also notable before the bell today with IBM and AXP in focus after the close today.
Action Plan
Talk about a big daily price action whipsaw! The Dow gained more than 300 points completely reversing the big selloff just the day before. The Dow closed for the first time above 26,000 as early short traders were squeezed out by this raging bull. The SPY and QQQ also posted new closing records while IWM lagged slightly behind but recovering significantly from Tuesday. Although the market appears to very stretched, the simple fact is there are still more buyers than there are sellers. Fear of a market correction seems non-existent as the bulls relentlessly charge higher.
As always I will stay with the trend, but I must admit to being very cautious about the wild enthusiasm the market is displaying. Bullish complacency such as we see right now can quickly backfire so stay very focused on price action for clues. With the futures pointing to a bullish open try not to get caught up an chasing stocks already well within a run.
Trade Wisely,
Doug
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Gift of the Huge Gap
A market top or just a hesitation? Clearly, traders opened the gift of the huge gap up open yesterday ringing the resister to protect profits. Amid all the speculation that this was a market top lets remember that one day does not make a trend! While it’s true, the market appears stretched and could benefit from a rest or pullback don’t expect the bulls to give up that easy. There are several very big earnings reports today that could move the market, and I think most are expecting positive results. Will it be enough to support this lofty market level is the question? Higher volatility is likely as battle lines develop between the bulls and the bears. Market sensitive is also likely as we move closer to a federal government closure unless Congress can get its act together. The road ahead could have big potholes so make sure you have a well thought out plan.
On the Calendar
The Wednesday Economic Calender gets going at 9:15 AM with the latest reading on Industrial Production numbers. Forecasters see industrial production rising 4.0 in December with total capacity utilization moving up to 2 tenths to 77.3%. At 10:00 is the Housing Market Index which consensus is calling for a very slight for January to 73 vs. Decembers 74 reading. Then at 2:00 PM, the Beige Book, comes out which is a report on economic conditions used at FOMC meetings. We have three Fed Speakers today at 3:00 PM and 3:15 PM and finally 4:30 PM. The report on Treasury International Capital which tracks the flow of financial instruments in an out of the U.S is released at 4:00 PM.
On the Earnings Calendar, we have 30 companies expected to report today, and several of them could be market moving. Before the bell, we have GS, BAC, SCHW, FAST and USB. After the bell, we will hear from, AA, FNLC, HBHC, and KMI.
Action Plan
Yesterday traders remembered the sell button location on their brokerage platforms taking advantage of the huge morning gap. All four of the major indexes managed to set new record highs before selling began with the DIA breaking above 26K briefly. As spooky as it might have seemed let’s keep in mind that a one-day pullback does not a trend make. In fact, at the close of the day, all the major indexes are still above their rising trends. What will be very important is if a follow-through day so selling occurs. However, as I write this, the Dow futures are pointing to gap up of more than 120 points suggesting the bulls are prepared to fight.
Keep in mind; we have a bunch of big earnings report this morning that could move the market substantially before the market open. Yesterday turned out to be one huge whipsaw, and I would not be at all surprised increased volatility continue for the next several trading days. Price action around market highs can experience very fast reversals in either direction. Also, remember the market could react sharply on the washing spin as we approach a federal government closure if a budget bill deal passes.
Trade Wisely,
Doug
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J-Hook Continuation Pattern
KL has recently run about 24% and has pulled back managing to find support above the Lower T-Line Band and the V-Stop. The chart pattern is a J-Hook Continuation pattern. The overall chart trend remains bullish while Gold is bullish in general. Using Fib Lines we have profit zones between 6 and 28 percent. Price closed below the Low T-Line then printed a Bullish Engulf back in November.
Today At 9:10 AM ET. We will demonstrate live how you could be traded using our Simple Proven Swing Trade Tools
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Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
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► Learn the Power (SGRY)
On December 12, we shared, in detail, the technical chart properties of SGRY in our members Trading Room and why we thought this chart was ready for a profitable run. Yesterday the profits would have been about 60.5% or $590.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits. (See Above)
► Eyes On The Market
As long as price closes above the Lower T-Line Band and the V-Stop we will remain bullish. A price candle requires confirmation of 2 to 3 candles. The last ten days in the SPY we have seen a steeper than normal drive higher causing a bit of exhaustion and sellers to wake up. A close below $274.40 would show the sellers outnumber the buyers, a close below $272.55 would suggest the sellers plan to test the December Highs.
The VXX short-term futures have presented us with a weekly Bullish Borning Star and a daily close over the Upper bullish T-Line Band and has turned the V-Stop from red to green.
Rick’s Swing Trade ideas – MEMBERS remember to log into the members’ blog for the trade ideas – Member Login
30-Day Trial • Monthly • Quarterly • Semi-Annual • Annual
Candlesticks • Price Action T-Line • T-Line Bands • Support • Resistance • 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
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.
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Good morning team.
This morning Dow futures are pointing to a 200 point gap up this morning as this amazing bull run continues. In this kind of market a reversals can occur very fast. Much faster than I can get notifications out to take profits. So please everyone have a plan to not only protect profits but also capital if/when the bears show up to eat. I’m not suggesting that will be today but we all need to be prepared.
BAC, if you are still holding this position keep in mind it reports earnings on the 17th. A gap up open may be the perfect time to exit the trade an put those profits of more than 25% in the bank.
MSFT made a really nice move on Friday and closing with more than a 25% gain. Again a gap up this morning may be a good time to consider profits.
The current VLO position is up 151%. The position still looks very good but never let greed prevent you from taking a profit. The same is true of the XLE position that is currently up 127%.
The trade in WMT is up 24%. You make the call.
Those still holding CSCO are up huge. Don;t let that go away.
Please understand I am not suggesting you need to sell any positions. They all continue to look very good. I’m only wanting to remind everyone not to let greed prevent you from taking profits.
Doug
Remember all trade ideas are for your evaluation and consideration.
