Ascending Triangle Breakout – BAS
BAS – Broke out of an ascending triangle yesterday after a gap five days ago. With a series of higher lows and capped tops, BAS gapped on 12/20 above the Upper T-Line. The following three days held support, and yesterday more buyers stepped in. There are three important areas, and I will be talking about them in the Pre-market education series. Why do some traders make money and some loose money on the same trade? Something to ponder, ask for the answer if you like.
At 9:10 AM ET. We will talk about the technical properties of TAHO 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.
►Subscribing Members login: for the Trader Vision Trade Plan
► Eyes On The Market
Boring, boring, boring is all I can say about this market. The bulls still hold the chips as of yesterdays close
Rick’s Swing Trade ideas – MEMBERS ONLY
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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
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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Morning Star Flag Breakout – TAHO
TAHO – Is working on a Morning Star Flag Breakout Has flagged above the 50d-SMA after a new low and a Bullish Morning Star kicked off a 10% plus run. We will be using our (RBB) Rounded Bottom Breakout Strategy to trade TAHO. Trade wise and trade with rules.
At 9:10 AM ET. We will talk about the technical properties of TAHO 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.
►Subscribing Members login: for the Trader Vision Trade Plan
► Eyes On The Market
Giving last week was Holiday slow and this week is likely to be the same we should expect the overall market to see weakness and a short burst of energy. Looking at the SPY, the bulls are still in charge and should remain in charge as long as they can hold above the $264.00 line. I expect the current week to be slow and weak.
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
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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Getaway Day
Combine Friday and the last trading day before Christmas, and you might hear volume sucked out the market. Today is the perfect storm for a Getaway Day for the long weekend. As always there will likely be a flurry of opening activity, but after that, expect very light volume chop. Monday the market is closed, and I would not be at surprised to light volume next Tuesday as traders extend their vacation. If your not planning to take the day off then work on your trading plan for next year. Review your past trades and look for ways to improve. Clean your watchlists and prepare shopping lists for next year. It’s also a very good time to study new techniques or strategies to improve as a trader. I wish you all a Very Merry Christmas!
On the Calendar
The last day of trading before Christmas see an Economic Calendar with several important reports. At 8:30 AM Eastern is the Durable Good Orders which consensus sees increasing by 2%. Even after excluding transportation orders are expected to increase by a solid gain of 0.5% with the core number growing by 0.4%. Also at 8:30 AM is Personal Income and Outlays which income is seen rising 0.4% and consumer spending up 0.5% with the holiday boost. At 10:00 AM is New Home Sales is expecting a decline from October’s 685K vs. Novembers 650K. At 10:00 AM is Consumer Sentiment that is expected to remain very strong with a consensus estimate of 97.0.
On the Earnings Calendar, there are only six companies expected to report today now of which are particularly notable.
Action Plan
The Bulls found a little inspiration yesterday gaping up and pushing higher during the day. Unfortunately, the last hour of the day saw some significant profit taking once again confirming a reason for caution. Currently, the uptrend is still intact, and the VIX showed no rising fear. Futures are currently positive removing the possibility of a government shutdown by passing a CR that’s good through January 19, 2018.
After the morning rush, I expect today’s volume to drop faster than the Times Square New Years Eve ball. Although I will be at my desk, I will not be doing any trading other than maybe taking some profits.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/gAx3piDsmQE”]Morning Market Prep Video[/button_2]
A mistake often made.
As we head into Christmas and the New Year, I feel compelled to remind you that not every day is a good day to trade. A mistake often made by short-term traders is thinking they have traded just because they happen to be sitting in front of their computers. It’s a painful lesson I learned the hard way. There are times to trade aggressively, and there are times that it’s much wiser just to stand aside. Quality of trades is far more important than quantity of trades. I know it seems sounds cliché’, but less is quite often more. Market volume is likely to remain sub-par between now and the first of the year. If you do decide to trade, make sure you have a well thought out plan and are willing to endure a lot of choppy price action.
On the Calendar
Today the Economic calendar is overflowing with reports but only three that have the power to move the market. First at 8:30 AM, is the very important GDP number. Consensus says the overall number will stay unchanged at 2.1 % with consumer spending remaining unchanged as well. Weekly Jobless claims which are also at 8:30 AM are expected to come in at 234K a slight decline of 1000 from last week. Then we get the Philly Fed Business Outlook, also at 8:30. Consensus for December has the outlook coming in with a slight decline at 21.8 backing way from a 48-year high.
On the Earnings Calendar, we have just over 20 companies reporting today some that could have a market impact. Noteables before the bell are CAG, KMX, RAD, and PAYX. After the bell, we will hear from CTAS, NKE, and CAMP.
Action Plan
Sellers were quick to respond the yesterdays 100-point-gap with profit taking. After reaching price support level in just a few minutes after the open volume died on the vine and we slipped into choppy action. As of now, there is no technical damage to the overall trends, but there is certainly reason to elevate caution. Dow futures are currently pointing to a slight gap up open but keep in mind that could quickly change. We have 3-important economic reports and some earnings that could easily make the open better or worse in the blink of an eye.
As for me, heading into a long holiday weekend, I plan to avoid adding any additional risk. Anything can happen over long weekends, so I’m more likely to seek the security of being in cash. Of course, I’m only talking about short-term holdings; with long-term trades, I will stay the course. After the morning rush, I expect volumes to diminish quickly. Choppy directionless price action could easily dominate the majority of the day. With the new year only a few days away it just seems foolish to risk giving back the any of the fantastic profits in a low volume market.
Trade Wisely,
Doug
