SYNT Produced a Bullish Belt Hold
SYNT – Last week SYNT produced a Bullish Belt Hold, and the sellers have stepped away. The bulls close SYNT yesterday above the November high, and the chart looks ready to take on the next resistant levels and target zones.
At 9:10 AM ET. We will talk about the technical properties of SYNT 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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► Eyes On The Market
The SPY closed above its morning gap with a wick longer than it’s body, this indicates the buyers and seller are in a battle, and the seller was able to push price down from it’s high. If the buyers give up the sellers will create a low below $267.98. Overall the buyers are leading the trend.
Rick’s Swing Trade ideas – MEMBERS ONLY
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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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Dow 25,000?
The bulls appear to have limitless energy to drive the market higher. Is Dow 25,000 in the cards? With Congress likely passing the Tax Reform bill today and the VIX indicating No Fear it certainly seems possible. Exciting, yes, but let’s not get too overconfident or complacent. Let’s remember we are still facing a government closure this weekend unless Congress can get their act together and pass a budget. A failure to do so would likely send shock waves through the market so stay focused on price and have a plan if the tide starts to go out. It would also be wise as you plan the rest of the week that volumes may quickly begin to decline as traders take off for Christmas. A trade may look perfect, but without volume, it can’t move and do you want to be holding a lot of open positions over the holiday. Something to ponder as you look ahead and assess the risk.
On the Calendar
Tuesdays Economic Calendar kicks off at 8:30 AM Eastern with the Housing Starts Report. October saw a sharp acceleration with starts up 13.7% with permits up 7.4%. Forecasters expect November to moderate with starts coming in at 1.240 million annualized vs. 1.290. Permits pullback slightly to 1.270 million annualized vs. 1.316 in October. After that, we have a couple of reports unlikely to move the market, a bond auction, and a Fed speaker at 1:10 PM.
On the Earnings Calendar, we have just over 30 companies reporting today. After the bell, a couple of earnings report to take note of is RHT and MU. Continue to reinforce the good habit of checking earnings dates on the stocks you own or are thinking about buying.
Action Plan
New closing record highs across the board on the major indexes yesterday. If I heard it correctly, the Dow has amassed 85 new records so far this year. What an amazing year! While the markets continue marching higher, the VIX is once again testing historical lows. Fear of a market correction at least for now is not at all on the mind of traders and investors. The Tax Reform bill is likely to pass today, and then Congress has to deal with the pending government closure coming this weekend. We could see some volatility due to the D.C. news cycle as a result so stay on your toes. Complacency is dangerous!
As of now, the futures are pointing to a small gap up open. At the open, the Dow will likely be less than 150 points from a 25000 print. Can the bulls get it done this week? We have some bigger earnings reports after the bell today that could certainly help if they report well. As for me I will continue to trade long positions with the overall trend and will continue to look for new trading opportunities. However, I will also need to keep in mind that volumes could quickly begin to diminish as Christmas draws near. Plan accordingly.
Trade Wisely,
Doug
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Big Resistance
Friday’s free trade in PSEC is working out nicely. Those that took the trade should have a nice little profit as it bounces off of support. Today I’m looking a counter-trend trade running into Big Resistance.
T is on a very nice bull run but has run headlong into a big price resistance level. I am not looking for a big selloff, I’m only looking for T to stay below 39 for a short-term pullback in reaction to the resistance. Consider buying the 22 DEC 39 Puts to take advantage of a small swing lower.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
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.
Christmas Gift
With the promise of Tax Reform passing Congress today the futures are wildly bullish. The President, of course, will quickly sign the new bill into law bringing a huge Christmas Gift to the market. After the morning gap up the Dow will be in striking distance of a 25,000 print. I would be surprised it the 25K hats, and t-shirts are ready printed and just waiting under the trading desks. Earnings this week from, FedEx, Micron, RedHat, General Mills, Carmax, ConAgra, Nike, and Cintas could be just enough rocket fuel to propel the market higher. Anyone caught short will experience significant pain this morning and will likely get squeezed out this morning. Expect higher volatility and prepare for quick price action.
On the Calendar
Monday’s Economic Calendar is a light one with only the Housing Market Index report at 10:00 AM Eastern. Home builders have been reporting gains in confidence as new home sales have been rising in recent months. Forecaster sees the December index holding at steady matching the 70 reading in November. After that, all we have is a bill announcement and a couple of bill auctions.
On the Earnings Calendar, we only have 11 companies stepping up to report results today. Most notable today are CCRC and LEN which both report before the bell.
Action Plan
Friday’s market highlight reel would have to focus on the sudden strong move in the tech sector. The QQQ’s reached out to a new record high close and regained market leadership. The SPY and the IWM both had good days but ran into some profit-taking the last hour of trading ahead of the weekend. Trends continue up, and the Bulls remain solidly in control.
With a weekend of wrangling, it seems Congress is finally ready to vote on the Tax Reform bill. According to reports they now have the votes so they can comfortably pass the bill. As a result, Futures are flying high with the Dow futures pointing to more than a 100 point gap up at the open. Big gap up opens at market highs are dangerous to chase due to the possibility of a so-called blow-off top. They are also often subject to violent whipsaws so don’t get caught up in the drama and chase. At the open, the Dow will only be about 200 points from a 25,000 handle. With some big earnings coming out this week, I there is a very real possibility the energy will be there to drive it up to that level before the end of the week. I also think we could see an extra dose of volatility so plan carefully.
Trade Wisely,
Doug
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Bottoming Pattern
Yesterday Lottery Ticket was a dismal failure as FIT made a full reversal and then gaped down. How rude. Today I’m looking at a nice bottoming pattern with an nice entry signal with upside potential.
PSEC has just recently broken a nasty downtrend and is holding support. The nice candle today suggest buyers are trying to move it higher. As an added bonus the chart is showing a possible Inverted Head and shoulders pattern and a Rounded Bottom Breakout. If your interested take a look at the 19 JAN 6 Calls. A close below the last swing low would be a good reason to exit the trade.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
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.
News of a Vote
Yesterday we saw some selling on worries the Tax Reform bill would not get finished up. This morning sentiment quickly changes as news of a vote and passage could happen as early as today. I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle. Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early. Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily. Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher. I think the road ahead could be a bit bumpier than we have seen this week. Plan carefully and remember to take profits.
On The Calendar
We kick off this Quadruple Witching Friday Economic Calendar with the Empire State Mfg. Survey at 8:30 AM Eastern. The survey has been running very hot all year which some have warned is at unsustainable levels. Consensus sees a December decline to 18.0 vs. Novembers 19.4 reading. At 9:15 AM is Industrial Production which forecasters see gaining 0.3% in November. We have a couple of mid-day reports that are unlikely to move the market and then Treasury Internation Capital at 4:00 PM that has no forecast.
On the Earnings Calendar, we only have 12 companies reporting none of which are particularly notable. However, have a plan if you happen to own one of these companies.
Action Plan
The market found some sellers yesterday across all 4-major indexes due to the uncertainty surrounding the Tax Reform bill vote. Both the DIA and the SPY left behind bearish engulfing patterns, and I suspect many began to predict a market top placing short positions. During the evening we heard that the conference revised Tax Reform bill will likely get a vote as early today. Plenty of time for the President to sign off on before year-end assuming it passes. Consequently, the futures are responding with bullish glee and early short traders are likely to feel some pain.
Up to this point, this last rally has seen very little volatility, but I would not be surprised to see that change very soon. As we head into the weekend, I normally am more of a profit taker than one looking for additional risk. That’s not likely to change today but never say never. Price is King, and I will follow price action that sets up a good opportunity for profit.
Trade Wisely,
Doug
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Take Profits and Count Your Money
TGIF, Take a few profits and count your money. I love Fridays, Fridays are a day to wind down the week, and plan for next week. Today I think we might start to create a short watch list in the trading room for all HRC Members.
At 9:10 AM ET. Today we will be looking at your trade ideas, technical properties and target zones, a couple of logical entries and a protective stop.
► Must Read Trade Update (AMPE)
On November 30, we shared and in detail the technical properties of AMPE in the Trading Room, Yesterday the profits were about 40% or $700.00, with 1000 shares. November 30 price found support and then consolidated until it found an open door.
► Eyes On The Market
It looks like the SPY is feeling a little pressure and needs to cool its heel. Yesterday’s price action was follow through to Wednesdays little shooting star. (You can see it better in the 2-day chart) Today we are likely to breach the T-Line and possibly test the Lower T-Line. Below $264.00 the recent low $262.71 may get tested.
CBOE Market Volatility Index has presented us with 3 White Soldiers in the daily chart; the three-day chart is catching my eye, I will explain more in the members Trading Room today
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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