Technical Problems Today
Technical Difficulties– Due to technical problems today we will not have any trade ideas posted today.
At 9:10 AM ET. We will talk about the technical properties of a few charts with target zones, a couple of logical entries and a protective stop. We will also be showing our trade plan with risk/reward and money expected.
►Website Orientation
On December 5, Right Way Options (Doug Campbell) created a Website Orientation video – Video Replay
► Must Read Trade Update (DEPO)
On November 9, we shared and covered in detail the technical properties of DEPO in the Trading Room, Yesterday the profits were about 38% or $216.00, with 100 shares. DEPO broke into a Rounded Bottom Breakout pattern and has been a Bullish T-Line Run ever since.
► Eyes On The Market
Even with a couple of candles that belong to the sellers, the SPY has not given up the bullish trend, below $260.70 would be a different story. The jobs report, and the outcome of the tax bill could have an impact on the market.
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.
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Where is Santa?
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.
[button_2 color=”blue” align=”center” href=”https://vimeo.com/246037400″]New Member Orientation Video[/button_2]
On the Calendar
The Economic Calendar for Wednesday gets going at 8:15 AM Eastern with the ADP Employment Report. The ADP has had a rough year widely missing the actual number over and over. However, ADP was spot on in October with it 235,000 number. ADP is expecting a 186,000 print for November. Productivity and Costs will report at 8:30 AM. Forecasters see nonfarm productivity rising 3.2% with labor cost increasing 0.3%. At 10:30 we will get the EIA Petroleum Status report which has recently seen supplies declining helping to support oil prices.
We have 50 companies stepping up report earnings results today. A few of the notable reports before the bell are AEO, FRED, HRB & KLXI. After the market closes hear from AVGO, LULU, TLRD & VRNT.
Action Plan
Even though the bulls made an effort to gap the market higher at the open yesterday, ultimately profit-taking ruled the day. There was no panic just a steady stream of slow, deeply controlled selling. Yesterday the SPY registered the first 3-day selling streak since August. So does that mean the market top is in and the 2017 bull run has finally come to an end? I wouldn’t bet on that just yet because the overall trend in the daily SPY and DIA charts still show an up-trend. The QQQ’s and the IWM certainly suggest caution is warranted but at this time no clear signals of stockholders running for the doors.
The VIX barely moved yesterday and the slow, grinding selling yesterday offered no hints of panic. If Congress can actually complete one project this year (tax reform) and prevent a government closure midnight Saturday, then Santa might return! Set aside your bias and focus on the price action for clues. Listen to the market and avoid trying to predict.
Trade Wisley,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/wRHINFzlSMI”]Morning Market Prep Video[/button_2]
Over Extended
Yesterday’s idea on BAC worked out very well even gaping up slightly this morning. Remember to manage the trades as you see fit. Some may want to capture the gains of better than 45% while others may wish to hold for the possibility of more.
Today’s idea is on VZ. The stock has rocketed up breaking through resistance but seems to have overshot in the short term. Consider the VZ 15 DEC17 52.5 Put weekly contracts. Consider this as a very short-term hold as VZ settles back toward price support.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
For those of us that watch price action yesterday left us with more questions than answers. Clearly, bearish candle patterns were left behind, but the majority of the indexes are still in up-trends. Things that make you say Hmm? As of now, only the QQQ is showing technical damage. From the candle patterns, most traders would expect a big increase in fear, but the VIX seemed only to yawn in boredom. There is an abundance of clues to suggest caution but also a sense that anything is still possible. With weighty decisions still to be made in Congress this week expect the market to be very sensitive to the news cycle. Plan your risk carefully and continue to watch for violent price moves in reaction to news events.
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.
Things that make you say Hmm?
For those of us that watch price action yesterday left us with more questions than answers. Clearly, bearish candle patterns were left behind, but the majority of the indexes are still in up-trends. Things that make you say Hmmm? As of now, only the QQQ is showing technical damage. From the candle patterns, most traders would expect a big increase in fear, but the VIX seemed only to yawn in boredom. There is an abundance of clues to suggest caution but also a sense that anything is still possible. With weighty decisions still to be made in Congress this week expect the market to be very sensitive to the news cycle. Plan your risk carefully and continue to watch for violent price moves in reaction to news events.
On the Calendar
We kick off Tuesday’s Economic Calendar with the International Trade Report at 8:30 AM. Once again the international trade deficit is expected to widen in October. Forecasters see a 47.4 reading vs. 43.5 in September. At 9:45 there is PMI services which is not expected to move the market coming in unchanged at 54.7. Then at 10:00 AM we get the ISM Non-Mfg. Index which posted its highest score of 60.1 in October. Consensus expects this number to remain very strong only slowing to 59.0 in November. A couple of bound auctions will round out the rest of calendar.
On the Earnings Calendar, there are 38 companies reporting quarterly results. Notable are AZO, BMO, and TOL before the bell with PLAY and RH after the bell today.
Action Plan
After opening at new record highs in the DIA, SPY, and IWM profit takers took the gift of the gap and rang the register. Selling off to fill the gap obviously left behind price action candles suggesting a least a tempory top. The QQQ’s gave a half-hearted attempt to show bullishness with a gap up, but this index suffered significant technical damage. Not only did it leave behind a bearish engulfing it also printed a lower high failure.
This morning the Dow Futures are pointing to a gap up while at the same time the Nasdaq Futures suggest a gap down to a new low. Surprisingly with all the selling yesterday day the VIX didn’t register a groundswell of fear as one would have expected. The overall trends in DIA, SPY, and IWM are still up despite the bearish price action signals. So although there are a lot of clues suggesting caution only the QQQ has built a case for bearishness. Personally, I will be taking a wait and see approach without bias as to direction. I continue to expect market sensitivity to the D.C news cycle making violent price moves possible.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/2zFjKvzL_QU”]Morning Market Prep Video[/button_2]
Consolidation May Be Ending
DISH – The month-long consolidation may be ending with the Bullish Morning Star yesterday. Yesterday’s Morning Start and the month-long consolidation is also above the $49.00 support line. DISH became an (RBB) setup on the 29th and may be ready to take the next step into the $54 plus area.
At 9:10 AM ET. We will talk about the technical properties of DISH with target zones, a couple of logical entries and a protective stop. We will also be showing our trade plan with risk/reward and money expected.
Good Trading – Hit and Run Candlesticks
► Must Read Trade Update (LB)
On October 9, we shared and covered in detail the technical properties of LB in the Trading Room, Yesterday the profits were about 33% or $1400.00, with 100 shares. LB broke out of a Rounded Bottom Breakout strategy using the 200-SMA as support and pushed it’s self-higher.
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► Eyes On The Market
The Bearish Engulf yesterday in the SPY will likely cause a test of the T-Line today or tomorrow. As long as the Bulls can keep the trend intact, they will be ok, but it the bears can close price below $260.75 the bullish trend could be in jeopardy. The Bears found the QQQ’s and pinched them with a Doji Hanging Man with follow through. Price has now closed below the lower T-Line Band and the Volatility Lines. For the QQQ’3 the 50-SMA is looking pretty tasty.
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.
Bullish Breakout
Last week BAC produced and very nice bullish breakout showing significant strength. BAC has now pulled back leaving a hammer pattern at price support. Should price follow-though showing buyers stepping in at support BAC would be a buying opportunity.
Banks typically do well in a rising interest rate environment. Next week is the FOMC meeting and the market believe there is more than a 90% chance they will raise the rate. The overall market is trending up is currently looking a bit stretched so consider that if you decide to act on this trade idea.
Consider the BAC JAN 28 Calls. Consider scaling out with first target area between $29 an $30. Plan your trade carefully as there will not be follow up management instructions on this free trade idea.
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 futures pointing to a 200 point gap up in the Dow on the back of the Tax Reform bill passage, it would seem the market is bulletproof. Even the threat of nuclear war seem to be nothing more than an annoying mosquito easily shooed away. Now the Dow has 25,000 in its cross-hairs and seems to have all the money and energy necessary to drive for that goal. However, I doubt the ascension to this plateau will be a smooth one. Friday’s full reversal intra-day whipsaw may be a clue to fast and whippy price action ahead. Big price action swings could be possible as we move forward making it very challenging for swing traders. The bulls are obviously in control, but Friday’s price actions should serve as a reminder that the bears are still here and they have been waiting to eat for a long time. Plan your risk carefully.
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.
