Bullish Engulf | POOTB
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NTNX – The buyers of NTNX created a Bullish Engulf on December 26 after a bullish run and a pullback. The Bullish Engulf followed by a (POOTB) Pop Out of The Box Pattern. The T-Line family has continued to trend higher proving the strength of the price action and commitment by the buyers. Several profit zones are available with a continued bullish trend.
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.
► Must Read Trade Update (INSY)
On December 14, we shared, in detail, the technical chart properties of INSY in the Trading Room why we thought this chart was ready for a run. Yesterday the profits were about 113% or $710.00. Using simple rules and techniques to achieve swing trade profits. A traders lifestyle is worth the work.
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
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► Eyes On The Market
Thr Bulls have worked that charts very well the first two trading days of 2018, and I suspect today will be the same. We may all get to ware our 25K tee-shirt for the DOW reaching a milestone after today. So let’s all think positive. The SPY (ETF for the S&P-500) has been lightly bouncing off the T-Line Low reaching and holding on to higher highs. The Lower T-Line is a moving average that we use for a moving trend line of the Candlesticks (price action lows).
The VXX short-term futures hit a new low yesterday after trying to climb over the Lower T-Line only to fail.
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 • 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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Day-1, SPY New Record High
If you ever had a question if the bulls still controlled the market that should have dissipated yesterday. Day-1, SPY New Record High and the QQQ’s are not far behind. A good reminder to never short a trending market. Over the next three days, there is a lot of important economic data coming out, and I would be surprised if any of it is not supportive of current prices. Also, keep in mind that Earnings Season is just around the corner and many stocks could rally in anticipation. Only yesterday in the QQQ we saw how just how much analysis upgrades on key stocks can dramatically reverse an indexes direction. By the way, analysts are bullish on earnings growth this year.
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On the Calendar
The hump day Economic Calendar really gets going at 10:00 AM Eastern with the ISM Mfg. Index and Construction Spending. Consensus for the December ISM is down just slightly to 58.0 vs. 58.2 last report but continues to be very strong. Construction spending is expected to make a solid gain of 0.6% with residential spending leading the gains. Then at 2:00 PM we have the release of the FOMC minutes.
There are 12 companies expected to report earnings today. UNF & CNC report before the bell with RAD and RECN after the bell. Make sure you are checking as part of your daily preparation.
Action Plan
The DIA, SPY, and IWM continue to remain in a chop zone however at the end of the trading day seemed to have found some bullish inspiration. The QQQ, on the other hand, had an incredible day completely reversing a rather bearish appearance to a full on bullish stance. I would expect the QQQ’s to make its first record high of 2018 very soon an accomplishment the SPY managed to pull off at the close yesterday.
Futures are currently pointing to more than a 40 point Dow gap up at the open. Keep in mind a Dow 25,000 print is not that far away and after resting the last couple weeks may soon find the energy to make a push higher. The VIX made a sharp decline yesterday afternoon and now looks like it could once again test historical lows. There is no fear in this market. Keep in mind that the market could easily slip into choppy price action after the morning rush as it waits for the release FOMC minutes. Expect higher volatility right after the release as the market digests the new information.
Trade Wisely,
Doug
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FRTA – Ascending Triangle Breakout
FRTA has been trending and now has broken out of a Bullish Ascending Triangle. After the November 8 Bullish breakout FRTA has produced a rising trend. The past 15 days or so the price action has drawn an Ascending Triangle pattern. FRTA has a great deal of profit potential if you look at the $20.00 profit zone and the profit zones along the way
At 9:10 AM ET. We will talk about the technical properties of FRTA 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.
► Must Read Trade Update (SGRY)
On December 12, we shared in detail, the chart setup of SGRY in the Trading Room, Yesterday the profits were about 36.92% or $360.00 with 100 shares. Using simple rules and techniques to achieve swing trade profits. A traders lifestyle is worth the work.
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
► Eyes On The Market
Welcome to 2018, what a great day yesterday was. Seems like the market it is playing with a full team! The SPY is still under the control of the T-Line trend (above all 3). Yesterday the SPY closed up $1.01 with a small breakout poised to follow through with a J-Hook continuation pattern.
The DJ-30 closed yesterday with a Doji, bullish chart pattern above the T-Line, come 25K you can do it!
The VXX short-term futures lost all interest yesterday in playing the game!
Rick’s Swing Trade ideas – 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.
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Price will lead
2017 was an unbelievable year, but 2018 could be even better. Price will lead the way. I know there a lot of folks out thinking that because the market has run up so much, it necessarily must pullback. That is without a doubt a possibility, but it is also far from a sure thing. Unemployment is at historic lows, and consumer confidence is at historic highs. Manufacturing is growing, and finally, real wages are beginning to increase. The analysis suggests earnings growth may be as good or better this year as the last. Perhaps it would be best not to trade what we think and focus on what we see in the price action. The institutions always have and will always determine the direction of the market. If we can set aside our bias, focus on price and simply follow it rather than trying to predict direction: Then 2018 could indeed exceed our expectations.
On the Calendar
One important report and a slew of bond-related auctions and settlements for this first trading day in 2018. The PMI Manufacturing Index is at 9:45 AM Eastern today. Last month PMI rose 1.2% on increasing orders and employment, but forecasters see the index standing pat at the same 55.0 reading this month.
There are five unconfirmed potential earnings reports today, but they all come after the bell. Remember January begins a new round of earnings so make sure to develop the habit of checking coming reports. The fireworks don’t really begin to ramp up until mid-month, but there is no time like the present to start developing a good habit.
Action Plan
The last trading day of 2017 had a very nice start to the day, but profit takers quickly began to rule the day. The DIA, SPY, and IWM left behind bearish engulfing patterns while the QQQ’s seemed to give up a short-term support. Historically January is a positive month as the bulls find value after a tax selling pullback in December. However, no such pullback occurred this year. Only a choppy consolidation that essentially held the bullish trend. So what happens next? As of right now, I have to recognize the bearish candles left behind on Friday a proceed with caution. At the same time, I want to be careful not to jump to a bearish conclusion by trying to get short. Remember last week was low-volume chop which is not exactly a confidence builder for direction.
Futures are currently pointing to a bullish open but don’t be surprised if today is another low-volume showing as many traders may have extended their holiday vacation time. I plan to move slowly to as far as adding new positions today, but I certainly will rule out the possibility of new trades. Let’s keep in mind that the FOMC minutes are out tomorrow and the Employment Situation number is Friday morning. Both tend to inspire choppy indecisive price action.
Trade Wisely,
Doug
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NMM Bullish Morning Star Presented
NMM – Last Friday NMM presented us with a Bullish Morning Star with multiple signs of support and the Lower T-Line Band. Note how the Star came off the Lower Band and Fridays price action closed over the Upper T-Line Band. The 4 and five days charts fit the (RBB) strategy profile with two profit zones before the Dotted Deuce and two before the 200-period moving average.
At 9:10 AM ET. We will talk about the technical properties of NMM 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.
► Must Read Trade Update (CVRR)
On November 8, we shared, and in detail, the technical properties of CVRR in the Trading Room, Friday the profits were about 27.8% or $360.00. Using simple rules and techniques to achieve swing trade profits. A traders lifestyle is worth the work.
► Eyes On The Market
Last weeks price action wasn’t much to brag about although the buyers were able to keep the sellers away for the most part. The Daily price bar closed as a Bearish Engulf, but we did close on support, so the battle begins. If the sellers can close below $266.30, the mid-December low may be in for a test. A push by the buyers with a close over $268.60 and the Bulls are on there way to challenge the $272.00 area
The VXX short-term futures started a dance last week so they need to be watched a little closer than normal. The past 9-day pattern is a bottoming channel with a Bullish engulf. The pattern needs to follow through so we will keep our eye on it.
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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