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.
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► 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.
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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
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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.
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.
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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
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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
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