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.
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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.
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► 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.
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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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Feed the Beast?
Last week the bulls ran like their tails were on fire and their hind ends were catching. I saw a headline where Cramer said the market is in “Beast Mode.” Okay, but I think the real question on the mind of most traders, is should they continue to feed the beast? There is no question that the market seems extended and any reasonable thinking trader suspects a pullback could start at any time. However, price action currently has no hint of stopping just yet. We all know that predicting is unproductive as it could put you on the wrong side of the market or have you missing out on the best bull run of the year. My suggestion is to say with the trend taking profits along the way and focus on price action for clues of a change. Take only low-risk entries when adding risk and avoid chasing of any kind. The trend is our friend, stay with it until it ends.
On the Calendar
Monday’s Economic Calendar seems focused on kicking off an FOMC speaking tour. The is one before the market opens, one at 12:40 and another at 1:35. We have a couple of small reports that are likely to go unnoticed by that market as well as two bond auctions to round out the day.
There are 11 companies on the Earnings Calendar expected to report day. Although there are a couple of bigger companies, I would not expect any of them to be market moving. Keep in mind earnings season officially kicks off on Friday with reports from Blackrock, PNC, JPM, and WFC.
Action Plan
The futures markets opened yesterday positively and have managed to maintain that sentiment all night. New record high closes across all four of the major indexes as the bears seem to have gone into hibernation. The Consumer Electronics Show kicked off last night with the CEO of NVDA as the keynote. NVDA shares are indicated higher this morning and could make an all-time high. The INTC CEO speaks this evening with most thinking they will extinguish the recent chip rumors.
Tech could be a driving force for the first part of this week due to the new coming out of CES, but it will quickly shift to the beginning of earnings season that officially kicks off on Friday. As always I will continue to trade with the trend and focused on price action. Having moved up so strongly last week, it would not be out of the question to see the market rest so watch closely for price action clues. Also, remember gap up opens to new market highs can produce whipsaws and reversals so don’t chase.
Trade Wisely,
Doug
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Bulls, bulls everywhere.
Look forward, and you see bulls. Look right and left and you see bulls. Bull, bulls everywhere and the only bears in sight lye trampled under the hooves of stampeding bulls. Markets around the world are also moving higher caught up in the excitement. The VIX is registering no fear as the futures once again point to another gap up open. Even though everything seems to be coming up roses, I will do what I always do ahead of the weekend. Go to the bank by some taking profits. Let the good times roll but never forget to take profits along the way!
On the Calendar
The first Friday of 2018 has several important reports on the Economic Calendar. Before the market opens, we get the biggest of these reports with the Employment Situation & International Trade at 8:30 AM Eastern. Consensus for nonfarm payrolls is 191K and an unemployment rate unchanged at 4.1%. Hourly earnings are expected to rise 0.3% with the average workweek hours bumping up slightly as well. The International Trade deficit is expected to widen once again from October’s 48.7 billion to 50.0 billion. 10:00 AM brings the Factory Orders report which is seen rising 1.1% fueled mostly by aircraft orders. Also at 10:00 is the non-manufacturing index which consensus expects a slight increase to 57.6 vs. 57.4 last month. After that, we have three Fed Speakers at 10:15 AM, 12:30 PM and 1:00 PM.
We have 11 companies on the Earnings Calendar today. Notable before the bell is STZ, HURC, and GBX.
Action Plan
Another day and another round of new record highs. This time all 4-indexes pitched in with new closing all-time-high prints with the Dow slicing right through the 25,000 milestone. Stampeding bulls for as far this eye can see. Even the President chimed in by saying, I guess 30,000 is the new target! As you might guessed the current futures action are suggesting the celebration will continue with a gap up of more than 70 points.
Now before you decide the market is never going down again and throw caution to the wind remember gap up opens to new market highs can also be blow off tops. Don’t get me wrong I am in no way suggesting that will happen I’m only reminding that the possibility exists. Also, gap up opens at market highs often have a tendency to create whipsaw price action. The market is very bullish so stay with the trend just don’t get complacent.
Trade Wisely,
Doug
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Eleven Trade Ideas
At 9:10 AM ET. We will talk about the technical properties of 11 trade ideas with target zones, logical entries, and a protective stop. The HRC Live Trading Room is the best place to learn the trading technics of the membership and the HRC coaches.
► Must Read Trade Update (OSTK)
On January 4, we shared, in detail, the technical chart properties of OSTK in the Trading Room and why we thought this chart was set up for a trade. OSTK now plus 8.8% or $625.00 with 100 shares. Using simple rules and techniques to achieve swing trade profits. Learning to master the market does take a little work and dedication to success and when the dots connect you will look at life in a whole new way.
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► Eyes On The Market (Happy Friday)
And the bulls keep on going and going and going. Another positive day in the market and the trend continues to rise. The SPY is now a bit too far above the upper T-Line Band and likely to contract a little very soon.
The three T-Lines are moving averages that we use for a moving trend of Candlesticks (price action).
The VXX short-term futures bounced a little yesterday, but until price moves above the T-Line Bands, it’s just noise.
Rick’s Swing Trade ideas – MEMBERS remember to log into the members’ blog for the trade ideas
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 • 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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An amazing time to be a trader!
The bulls seem inspired to reach out to 25,000, and the VIX may be poised to make a new historic low. Indeed, An amazing time to be a trader! There is no fear in the market and money following to the market currently seems to be unending. When times are this good, it’s very easy for traders to become complacent. Take advantage of everything this bullish exuberance has to offer but maintain your focus and discipline. It could happen today or years from now, but eventually, the tide will go out. Be prepared, not surprised by always having a contingency plan. Let the good times roll but always have your go bag packed an ready.
On the Calendar
The Thursday Economic Calendar gets going at 8:15 AM Eastern with the ADP Employment Report. The ADP has lost much of its credibility this year having been glaringly wrong so much of the time. ADP is expecting 188k in jobs growth in December. At 8:30 AM we shift to Jobless Claims, which are expected to decline slightly to 240K this week. The EIA Petroleum Status Report is at 11:00 AM today and will likely be the most potential market-moving report of the day. They don’t forecast this number, but with the current rally in oil trader would the trend of supply reductions to continue. There are several other lesser reports today as well as Bill Announcements and a Fed Speaker at 1:30 PM.
On the Earnings Calendar, there are 16 companies reporting today. Notable is LK, MON, and PKE before the bell with PSMT and SONC after the bell. I would not expect any of the earnings reports today to be particularly market-moving.
Action Plan
New all-time highs in the DIA, SPY, QQQ with IWM continued to lag behind in consolidation. The Dow closed only 78 points below the huge round number of 25,000. Futures are currently pointing to a Dow gap up of about 70 points this morning suggesting 25K will most likely give way to the bulls today. I think the question is what happens when this major milestone occurs. As always stay focused on price action for clues and try not to predict or trade your bias.
Clearly, the bulls are large and in charge, but there is also the potential stumbling blocks to be aware of today. First, is how price will react to the big round number of 25K. Will we blast right through with price holding it as support or will it become a significant level of resistance for the Dow? Secondly, with the strong current rally underway in oil a surprise EIA Status showing a build in supplies could trip up this bull rally. The VIX is very near all-time-lows suggesting no fear but don’t make the mistake of being complacent. It is entirely possible with the gap up this morning that the VIX could set a new historic low. Truly, an amazing time to be a trader!
Trade Wisely,
Doug
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