Watching The 3-Day Chart
HK – I am watching the 3-day chart starting with the candle on July 12. The chart pattern from July 12 has floated sideways with support around $5.80. Then on November 2, a little upward trend started. Now support has kicked up a little to about $5.60. Notice how the 34-EMA has risen above the 200-SMA
At 9:10 AM ET. We will talk about the technical properties of HK 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.
To the member’s area for the Trader Vision Trade Plan that we have created for ourselves.
► Must Read Trade Update (TRLD)
On August 31, we shared and covered in detail the technical properties of TLRD in the Trading Room, Friday the profits were about 64.20% or $764.00, with 100 shares. TLRD broke out of out (RBB Pattern) and continued the trend with minor pullback opportunities (PBO). Moving the stop up to about $18.85 would make sense.
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► Eyes On The Market
The SPY was able to rise off the T-Line last week and close Bullish. On the daily chart, a Bullish J-Hook Continuation pattern is forming, A close above $266.38 would confirm the Bullish J-Hook Pattern. Sometimes it’s hard to make sense of a grouping of candles on a daily chart, so you might want to look at a higher time frame. Take a look at the 4-day chart; you can see a bullish Doji Continuation Patter formed. The bulls simply need to follow through and stacking.
Rick’s trade ideas for the day – 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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A Quick Short
Yesterday’s Free Trade, UAL, Moved up nicely yesterday and gaped for a one day return of nearly 30%. Congrats to those who took advantage of the idea. Now let’s look to the future for a quick short idea.
MU has made a nice recovery but seems to have run headlong into price resistance. Take a look at the MU 15 DEC 46 strike Put weekly contacts. This trade will gives us a nice negative delta position with plenty of open interest. Theta is the enemy here so if MU does not make a move lower by Wednesday 13th consider closing the position. If MU closes above resistance you may also want to close the position.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
During the evening the Congress passed a continuing resolution that prevents a government shut down. However, their action only extended the battle for 2-weeks. Now the question is will the hoped-for Santa Claus Rally be held, hostage by Congress? Santa held hostage, shame on you Congress! My feeble attempt at humor is simply point out that the market will likely remain sensitive to the spin out of Washington D.C. Of course, the bulls could find their inspiration in the Employment situation number to move higher, but the governmental pressure will be ever-present. Also, weighing on the mind of the market is the upcoming FOMC meeting. As for me, I will continue to focus on price action and continue to trade with the trend. However, I may trade smaller than normal positions due to the uncertainty of the new cycle.
Become a Member Today!
30 Day Trial Monthly 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.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Mostly Winning Trades
This past week I have seen mostly winning trades come out of the trading room with only a few losses, but one thing is for sure the trading has slowed because of the market. For the most part, the SPY has been unsure of its self but held the -Line, the QQQ’s didn’t like being above the T-Line so had to test what it was like below (now back above), IWM and the DIA’s liked being above the T-Line and stayed. IYT felt like the king of the hill held proud above the T-Line the entire week and last week too. Leading sectors above the T-Line this week has been, (SX100 Industrials) (SX60 Healthcare) (SX20 Consumer Cyclical) (SX50 Consumer Defensive)Tax bill, Employment numbers, Fed Rate Increase are just to name a few issues that could change the course of the charts.
►Sample • Members Recent Big Winners
BEND 25.55% • DEPO 46.14% • EYES 19.12% • TLRD 63.96% • X 27.96% • 21.5 • VIAB 13.35%
►News From Our Team
Trader Vision 20/20 – I have downloaded the newest version this morning, and the word is to give it a spin. We are very excited that Trader Vision 20/20 is just days from being launched. What is one thing the top traders do? They plan their trades and trade their plan. Trader Vision 20/20 is perfect for planning your trade.
Before Christmas is announcing a way that most (not all) will be able to cut their membership cost by 50-100% – I am currently using this product and love it. By the way, there is NO COST TO YOU
► Eyes On The Market
On the daily chart, the buyers have kept the closing price above the T-Line, this suggests the bulls still control the trend, and the bears are just grazing a little. After all, the bear needs to eat too. A close below $262.15 will put a strain on the trend that the buyer may not like. The VIX settled down a bit yesterday closing back below the Lower T-Line Band; this is good for the bulls.
Rick’s trade ideas for the day – 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.
Santa held Hostage?
During the evening the Congress passed a continuing resolution that prevents a government shut down. However, their action only extended the battle for 2-weeks. Now the question is will the hoped-for Santa Claus Rally be held, hostage by Congress? Santa held hostage, shame on you Congress! My feeble attempt at humor is simply point out that the market will likely remain sensitive to the spin out of Washington D.C. Of course, the bulls could find their inspiration in the Employment situation number to move higher, but the governmental pressure will be ever-present. Also, weighing on the mind of the market is the upcoming FOMC meeting. As for me, I will continue to focus on price action and continue to trade with the trend. However, I may trade smaller than normal positions due to the uncertainty of the new cycle.
On the Calendar
We begin the Friday Economic Calendar with the very important Employment Situation report at 8:30 AM Eastern. Consensus for November expects a strong showing between 184,000 and 190,000. The overall rate is seen holding at 4.1% with hourly earnings increasing 0.3%. At 10:00 AM we get a reading on Consumer Sentiment which is expected to tick higher to 98.8 vs. 98.5 last month. Wholesale Trade numbers are also at 10:00 AM with the oil rig count at 1:00 PM. Neither of which are likely to move the market.
On the Earnings Calendar, we only have 8-companies reporting. Looking through the list, I would not expect any of today’s reports to affect the overall market.
Action Plan
Yesterday’s modest bounce held some key support levels and provided some much need relief. There are a lot of charts showing bullish patterns. Now, all we need is a little more volume to build some momentum, to continue the trend. Currently, the Dow Futures are suggesting a positive option on the news from capitol hill. During the evening Congress passed a continuing resolution that avoids a Saturday shutdown of the government. Unfortunately, they only kick the can down the road two weeks. That means the budget battle will continue and the market will remain sensitive to the news. Perhaps the market will get a shot in the arm after the Employment Situation report to reinforce and inspire the bulls higher.
Trade Wisely,
Doug
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RBB Pattern
With the news that oil supplies are the price of oil has started moving lower. One very big beneficiary of declining oil price is the airlines. UAL looks to have completed a bottom pattern and breaking above resistance.
The light volume pullback has now set up one of my favorite trading patterns, the RBB Pattern. (Rounded Bottom Breakout) We may be a little early with this idea but the pattern is now providing a very low risk entry. To take advantage of this idea consider the JAN 57.5 Calls for a quick directional trade. A move up to just $65 could produce more than a 45% return. A close below support would be a reason to stop out of the position.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the last 3-days of selling, traders are starting to wonder, Where is Santa? Gloom and doomers have been predicting the demise of the 2017 bull run all year. Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened. Could they be right? Of course, even a broken watch is right twice a day. Before diving headlong into a pit of despair take a minute to examine the charts. The DIA and the SPY are still trending up! The QQQ’s are suggesting caution, and the IWM is holding a significant support. Also, take notice that there has been no panic selling and the VIX is not registering fear. Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December. Stay focused on price it will provide us the answers.
Become a Member Today!
30 Day Trial Monthly 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.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
Bullish Morning Star Close Yesterday
NTNX – Presented us with a Bullish Morning Star at the close yesterday and a Bullish T-Line Run. NTNX has broken out of resistance and has tested support. The 34-EMA is trending higher and is close to making an all-time new high; the T-Line has already made an all-time new high.
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.
►Subscribing Members log in to the member’s area for theTrader Vision Trade Plan
► Must Read Trade Update (TWNK)
On November 27, we shared and covered in detail the technical properties of TWNK in the Trading Room, Yesterday the profits were about 11.75% or $151.00, with 100 shares. TWNK has been in a Rounded Bottom Breakout pattern, with the Bullish Engulf close yesterday TWNK may be ready to challenge the 200-SMA
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► Eyes On The Market
The pullback in the SPY has reached the T-Line as expected. Now, what will the BULLS do with it? Yesterday made a new low to the T-Line then closed above the T-Line with a little Doji/Spinning To candle. The Volatility Stops helped price with support along with declining volume. With positive price action and a little candle stacking the Bulls can continue the bullish course. Selling below the T-Line would suggest a test of the December low $260.76.
Rick’s trade ideas for the day – 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.
*************************************************************************************
Boredom
During my years as a struggling trader, boring market periods in the market were very costly. If I was sitting in front of my computer, I felt I should be trading. I would run every scan I had ever thought of rushing to find something to trade never once considering the overall market condition. Boredom is as dangerous to a trader as the emotions of fear and greed. It would cause me to force trades or talk myself into positions I had no good reason to buy. Learning to stand aside when I had no edge was a very hard lesson to learn, and it cost me more capital than I care to admit. Always remember that you don’t have to trade every day to be successful. In fact, trading less and only when you have an edge produces better returns and a higher win/loss ratio.
On the Calendar
Thursday’s Economic Calendar is a full one, but there is only report with any concern for moving the market. At 8:30 AM is the Weekly Jobless Claims which is expected to remain near historic lows with even Puerto Rico numbers declining. There is a Fed Speaker at 8:30 as well but after that several non-market-moving reports.
On the Earnings Calendar, we have about 45 companies reporting their results today. Continue to build the habit of checking for reports on the stocks you currently own and those you plan to purchase. Failure to do can turn out to be a painful experience.
Action Plan
Yesterday again experience a very light day of selling in the DIA and IWM while the SPY and QQQ found some buyers at support. Overall the volume was light, and price action continues to be choppy. Unless we have a news event shake us loose, I think we should expect more choppiness today. Keep in mind the market could be waiting for the Employment Situation number on Friday or even the FOMC next week for inspiration. Another potential market driver is the pending government shutdown at midnight Saturday if Congress fails to get it’s act together.
I am continuing to prepare for new trades if we see some buyers begin to step in at support levels. However, I’m in no rush and will wait for buy signals to appear before adding risk.
Trade Wisley,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/SMOPWfHzDdg”]Morning Market Prep Video[/button_2]
Possible Support
GRPN has been in a nice trend and looks to have a possible support. On a low cost stock like GRPN I will normally just by the stock but if your looking for an option trade check out the JAN 2018 5 Calls. The Jan series has a lot of open interest and the 5 strike has more then 21,000 of open interest.
Consider a stop around $5.45. The options are inexpensive but be careful not to over trade sizing this trade to large. Keep in mind GRPN is a rather volatile stock.
P.S. Yesterday’s trade idea opened with a one day gain of more than 8%.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
With the last 3-days of selling, traders are starting to wonder, Where is Santa? Gloom and doomers have been predicting the demise of the 2017 bull run all year. Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened. Could they be right? Of course, even a broken watch is right twice a day. Before diving headlong into a pit of despair take a minute to examine the charts. The DIA and the SPY are still trending up! The QQQ’s are suggesting caution, and the IWM is holding a significant support. Also, take notice that there has been no panic selling and the VIX is not registering fear. Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December. Stay focused on price it will provide us the answers.
Become a Member Today!
30 Day Trial Monthly 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.
Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.
