Resiliency
After bearish gap down yesterday the bulls proved their horns continue to very sharp recovering almost all of the losses. The ViX indicated a little fear was creeping in at the open, but the resiliency of the bulls quickly began to put those fears to rest. Market trends continue to be strong yet appear extended. It’s very important not to over-trade or chase during periods like this. Choose new trades wisely with low-risk entries and consider releasing the pressure on winning trades by taking at least partial profits. With earnings season about to kick off plan for move volatility and overnight gaps as the market responds. Focus on price action, stay disciplined to your rules and prepare for anything like the market continues to push the upper boundaries of this strong bull run.
On the Calendar
Thursday’s Economic Calendar kicks off at 8:30 AM with two potential market-moving reports. First is the weekly jobless claims that are expected to decline 5000 to 245k vs. 250k. Second is the PPI-FD which forecasters think will rise 0.2% vs. the 0.4% increases each month last quarter. There are a couple of lessor reports and a bunch of bond announcements during the day but nothing likely to move the market until the 2:00 PM Treasury Budget. The Treasury deficit is expected to come in at $36.0 billion for December. Then at 3:30 we have a Fed speaker as their speaking tour continues.
On the Economic Calendar, we have 18-companies expected to report. If very important to get into the habit of checking the reporting dates of stock you own an those that you are planning to purchase. Failure to do so can be a very costly mistake that traders can easily avoid with a little preparation.
Action Plan
Yesterdays gap down was a wakeup call that the bears are still here and hungry. However, the Bulls really went to work yesterday to recover most of the initial losses. This morning the futures a suggesting a slightly higher but mostly flat open today. Although there are some earnings today, the market could wait for the big bank earnings on Friday to look for inspiration. Also on Friday, we get the very important CPI report and Retail Sales numbers which are both market-moving reports. As a result, we could see light and choppy price action today as we wait.
The trends are still in place so I will continue to trade with the trend, but I will also take into account that the market appears extended when considering new risk.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/g1DZwbJ4HzY”]Morning Market Prep Video[/button_2]
Running the T-Lines
STLD printed a Bullish Belt-Hold after about three weeks of Running the T-lines. Yesterday’s price gapped down from the bear pressure and the bulls and pushed the price into and closed above the previous candle. Creating a Belt-Hold that ended the day with a Bullish Engulf. Note how the chart has been trending with pull back opportunities (PBO) after testing the T-Line and Lower T-Line.
Today At 9:10 AM ET. We will demonstrate live how STLD was chosen using our Simple Proven Swing Trade Tools
►Simple Proven Swing Trade Tools
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
► Learn the Power (GLYC)
On December 11, we shared, in detail, the technical chart properties of GLYC in our members Trading Room and why we thought this chart was ready for a 20% Plus run. Yesterday the profits would have been about 33.80% or $500.00 with 100 shares. Using our Simple, Proven Swing Trade Tools and techniques to achieve swing trade profits.
► Eyes On The Market
Every now and then the market feels the need to wake us up. Tuesdays Doji close in the SPY and Wednesdays gap did just that, even tho we can clearly see the trend is bullish. If you mix together the price action of the last three days you pretty much have normal action in a bullish chart. A good rule of thumb is that if price can close over the T-Line High and if the T-Line High is higher than it was 10-20 days ago the bulls are winning the game. Read the chart and what you know to determine how and what you should trade.
The VXX short-term futures ran up to the T-Line High and failed, this indicates yesterday there was just not enough fear to make a difference, but enough to cause a little drama.
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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Who poked the Bear?
Okay, who poked the Bear? Most reasonable thinking traders have expected a market pullback while secretly hoping the bears would not come back to work at least for a while longer. After all who wants the party to end? It seems unfair when the market makes an overnight reversal that traps the retail trader, but that is the nature of this business. As an inexperienced trader, I would always try to assign blame to someone or something when I lost money on mornings like this one. When the truth of the matter was the blame, was mine and mine alone. When the market was super bullish, I would chase, trades like a madman never once evaluating the condition of the overall market. Remember trading is a business and the buck always stops with you!
On the Calendar
The hump day Economic Calendar gets going at 8:30 AM with the Import and Export Prices. Consensus for December has imports up 0.4% and export prices at 0.3%. Talking about interest rates seems to be in vogue this week with four Fed speakers today. Evans at 9:00 AM, Kaplin at 9:10 and then again at 10:15 with Bullard at 1:30 PM to finish up today’s tour. At 10:30 AM is the EIA Petroleum Status Report which could be very important today with the recent rally in oil.
There are 14 companies expected to report today on the Earnings Calendar. Front and center will be the builders with LEN reporting before the bell and KBH after the bell. Remember the official kick off earnings session is Friday when several of the big banks report.
Action Plan
Yesterday saw yet another round of new record high closes in the DIA, SPY, and QQQ. The IWM managed to break out, printing a new record high but then slipped back into consolidation. I doubt anyone is all that surprised that the futures are finally pointing to a lower open this morning. However, it’s always disappointing when it happens overnight traping retail traders. Now the question is will it trigger some panic selling or will those tenacious bulls dig in to wait for earnings.
With the rally have been so strongly up you have to look at intra-day charts find price supports. Keep in mind that potential reversals can create a lot of fast price action. Violent whipsaws are possible if the emotions of fear or panic begin to well up. Times like this can be very challenging for new or inexperienced traders so plan accordingly.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/JzaXz60TmB0″]Morning Market Prep Video[/button_2]
T-Line Low Supports Pullback
IMMU has had a beautiful bullish run from early December breaking out of the October high. The sellers printed a Shooting Star, and price action followed for six straight days. Yesterday after meeting up with the T-Line Low price fought back by closing up 8.23% and creating a bullish J-Hook continuation pattern. Over $16.45 could trigger more buyers. We have added IMMU to our watchlist for consideration.
At 9:10 AM ET. We will demonstrate how IMMU was chosen using our Simple Proven Swing Trade Strategies
Simple Proven Swing Trade Tools
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
► Learn From The Chart (WTW)
On December 26, we shared, in detail, the technical chart properties of WTW in our members Trading Room and why we thought this chart was ready for a run. Yesterday the profits would have been about 13.50% or $685.00 with 100 shares. Using our simple, proven Swing Trade tools and techniques to achieve swing trade profits.
► Eyes On The Market (Caution Caution Caution)
Six days up is more than this horse can take. The SPY has moved higher the past six days a little faster than it can handle and is now in need of a rest. As I mentioned in last nights e-Learning webinar, the market is primed for a profit taking and the morning futures are pointing this out. The main trend is still up, and as of yet, support has not been broken. I suspect we see the sellers challenge the $271.70 area and then we can get a better idea of what price action is up to.
The VXX short-term futures printed a Bullish Egulf yesterday, and today it will likely test the T-Line Band High. A close over the T-Line Band High would indicate that fear is heating up and that would be a first step in creating a bullish bottom in the VXX chart.
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
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
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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The Bulls Keep Charging
The bulls keep charging upward trampling any bears that happened to step into their path. I like some everyone else see the indexes as extend and common sense would suggest a rest of pullback should occur soon. It took me a long time learn that when the bulls are this feisty that try to apply common sense left me standing on the sidelines and missing out on an extraordinary bull run. I can only assume that money is pouring into funds and 401K plans because of the fear of missing out. There are now analysis’s which have built a case for Dow 30,000. If you think that can’t happen, just go back and study the late 90’s tech bull run.
Please understand that I am not predicting that will occur I’m only pointing out it has in the past, and the possibility exists. Common Sense may not apply. Stay with the trend but guard against complacency by having a plan to protect profits and capital if the bears return. Remember reversals can be swift and brutal but a prepared trader and avoid the pitfalls of emotional trading.
On the Calendar
Tuesday’s Economic Calendar begins with a Fed Speaker at 10:00 AM followed directly by the Jolts report. Consensus for November on job openings is expected to grow to 6.038 million. With the country at seen at full employment, supports the concern that the lack of qualified workers is now limiting company growth. After that, we only have a couple of bond auctions to close the economic calendar day.
On the Earnings Calendar, we have 13 companies reporting results. Notable before the bell is AZZ and SCHN and after the close is WDFC and SNX.
Action Plan
After a slightly weak beginning to the trading day, the bulls once again showed their tenacity by pushing higher. The DIA closed down a whopping 0.05% while the SPY, QQQ, and IWM pushed upward to set new record closing highs. Go Bulls! Currently, the Dow futures are pointing to a slightly higher open this morning. Oil futures are also pushing higher this morning as winter demand continues to grow with the persistent cold temperatures around the country continue.
I fell like I’m beginning to sound like a broken record, but the bulls are still in control so I will say with the trend. However, with the market looking as if its extended at least in the short-term we should closely monitor price action and have a plan ready if profit-taking begins. The bears haven’t eaten in a very long time so given a chance expect them to bite at any time.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/Kf6QAxsTQzo”]Morning Market Prep Video[/button_2]
Rounded Bottom Breakout POOTB Strategy
FTK has been in a downtrend that seems to have hit bottom on November 8, 2017. A Bullish piercing candle started the bullish price action that has lead to constructing a Bullish Bottom. Price broke out above the 50-SMA creating an RBB strategy, and the recent price action is now creating a Pop Out of The Box strategy as well. To learn more about the “RBB” and the “POOTB” visit us in the trading room.
At 9:10 AM ET. We will demonstrate how FTK was chosen using our Simple Proven Swing Trade Strategies
►Simple Proven Swing Trade Tools
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
► Learn From The Chart (ALDR)
On December 26, we shared, in detail, the technical chart properties of ALDR in our members Trading Room and why we thought this chart was ready for a run. Yesterday the profits would have been about 30.47% or $350.00 with 100 shares. Using our simple, proven Swing Trade tools and techniques to achieve swing trade profits.
► Eyes On The Market
The S&-500 closed at another new high yesterday candlesticks stacking higher and higher. I was asked yesterday if the market is getting oversold? I replied “yes,” and I think all investors think the same thing. One person said oversold to what? True oversold compared to what? Then I said maybe the best way to look at this market is to follow the trend, the trend is not predictive it is what it is, and when the price falls out of the trend, you will know. Oversold/overbought indicators promo is guessing and predictions. Price action in or out of the trend is crystal clear.
The VXX short-term futures follow the trend, not much to talk about until price action can close above the “Lower T-Line Band”
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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Weekly Doji Continuation Pattern
The weekly Doji continuation pattern on SM has recently broken out of a bullish rectangle pattern – On the daily chart, The T-Line is rising after a breakout of resistance with price resting with two dojis and support. The breakout pattern suggests the buyers think has not reached its potential. A major profit zone that you might consider is the $42.00 area with several mini profit zones on the way.
At 9:10 AM ET. We will talk about the technical properties of SM with target zones, a couple of logical entries and a protective stop.
► Must Read Trade Update (OSTK)
On January, we shared, in detail, the technical chart properties of OSTK in the Trading Room and why we thought this chart was ready for a run. Friday the profits would have been about 17.90% or $1280.00. Using our simple tools and techniques to achieve swing trade profits.
► Simple Proven Swing Trade Tools
T-Line • T-Line Bands • Chart Patterns • Support • Resistance • Trendlines • Chart 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=”green” align=”center” href=”https://hitandruncandlesticks.com/private-personal-coaching-right-from-the-pros/” new_window=”Y”]A Trading Coach Can Lift The Fog[/button_2]
► Eyes On The Market
Friday marked another four days positive run for the S&P-500, and it’s ETF the SPY. This 4-day run may need a little rest and pullback. Price has moved pretty far from the T-Line, and it has been my experience that when this happens price stalls out to allow the T-Line to catch up. Resting pullback can be very shallow or even test the previous day’s support. Below $272.95, we could see $272.60 and below $272.60 and below $272.60 we could see $271.80, so on, so on, so on.
The VXX short-term futures may be trying to get off the ground, above $26.90 and we may have to take the VXX a little serious.
Rick’s Swing Trade ideas –
Symbols from TC2000
CME
NVDA
DO
FOSL
AGN
TECK
RIG
BURL
NOG
HIBB
CHRS
ATRS
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.
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After bearish gap down yesterday the bulls proved their horns continue to very sharp recovering almost all of the losses. The ViX indicated a little fear was creeping in at the open, but the resiliency of the bulls quickly began to put those fears to rest. Market trends continue to be strong yet appear extended. It’s very important not to over-trade or chase during periods like this. Choose new trades wisely with low-risk entries and consider releasing the pressure on winning trades by taking at least partial profits. With earnings season about to kick off plan for move volatility and overnight gaps as the market responds. Focus on price action, stay disciplined to your rules and prepare for anything like the market continues to push the upper boundaries of this strong bull run.
