Who invited the Bears to party?
Who invited the Bears to party? They have been hiding in the woods for so long it’s been easy to forget about them. Buy just about anything, and up it went with this incredible bull run. Overall the index trends still up but yesterday was a reminder that the bears have not eaten in a very long time and they are hungry! Now that earnings season is coming to an end I think we can expect more volatility and 2-sided price action ahead.
The market will likely begin to shift its attention to retail and the impacts of holiday spending. It will also begin to ponder the likely December interest rate increase. Next weeks Economic Calendar is full of big reports that could move the market around and increase volatility. Stay focused this historic year may still have several more surprises up its sleeve.
On the Calendar
We finish up this light Economic Calendar week with just one report of interest. At 10:00 AM Eastern Consumer Confidence is expected to remain near 13-year highs with a 100.0 reading vs. 101.1 in October. After that is the Baker-Hughes Rig Count at 1:00 but there is really no chance it will move the market at all.
As earnings season begins to wind down, we only have 73 companies on the on the Calendar today. Keep in mind that Monday and Tuesday still have a considerable number of reports. The habit of checking for earnings reports should become part of your daily preparation. They say it only takes about 30 days to develop a good habit that you will keep for a lifetime. Keep up the good work.
Action Plan
After an ugly bearish morning, the Bulls started to regain control. The bulls maintained control in the aftermarket Futures throughout the evening. About midnight, however, the bears began to push back and seem to still be in control this morning. Futures are currently pointing to a gap down of about 50 points in the Dow at the open. Volatility spiked yesterday, and the intraday price action experienced several nasty whipsaws.
Now that bulk of earnings reports are behind us I think there is very good chance we will see higher volatility. The overall trend of the market is still up, but I don’t be surprised if price action soon becomes much more 2-sided with bears coming out to play. Historically Nov. and Dec are bullish months for the market due to the holiday spending that occurs. However, there is nothing about this year that has followed traditional norms. Focus on Price Action, support, resistance, and trend. Price will always provide the clues forward if we can remove our bias and focus on what it’s saying.
Trade Wisely,
Doug
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Starting to See Choppiness
Ya, it’s Friday, a good day to count your loot! We are starting to see choppiness in the market, and some may find it a bit harder to make money. Personally, I have found if I stick to the rules and don’t over trade, I will come out ahead. For those that may be wondering. Yes, some weeks are better others. This past week the HRC and RWO members have racked in some nice cash with a few losses, overall a nice positive week.
Sence the September 25th pullback here is what some of the feedback I have received; (Swings within the runs were profit, not the entire run) CRC 56% winner on this last run • TEAM 52% run • 49% run on TEAM • KBH 34% run ZYNE 95% run
Good Trading – Hit and Run Candlesticks
► Trade Idea Update (ZYNE
You could have profited more than 33% or about $291, with 100 shares when we posted to our members on October 3rd.
If you are interested in learning how to end the week with a profit that could change your life simply start a membership and learn what we have to share. – Yes I want the winning trades
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► Eyes On The Market
The close Wednesday had no sign of weakness, but the overnight sellers put their heads together and came up with a plan. Thursday we saw a gap down that the Bulls were able to control by the end of the day and formed a Hammer. The SPY closed back above the lower purple T-Line and the V-Stop…Good for the Bulls! The Hourly chart is still showing a sellers pattern, with a trendline break, Bearish “h” pattern and lower highs. Important note the transports (IYT) is still Bearish and headed for the 200-SMA, the question is can the 200-SMA catch and support price? Caution • Caution • Caution
Rick’s trade ideas for the day – MEMBERS ONLY
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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.
The futures are pointing to a nasty open this morning but I don’t think many of you will be surprised by that. I suggested yesterday that the market was showing some signs of stress. None-the-less a morning reversal is just plain rude! Try not panic. Look at the price action of current positions and make solid business decisions not emotional ones.
Trade that have reversed south I will trim away today not wanting to hold them through the weekend. There is also a good chance that I will be taking some profits today and I think it would be wise for most of th members to do the same. There is a good chance I will close the trades in BP an MU. There is nothing wrong with the charts I just want to reduce risk and bring in some gains.
I doubt I will sell the positions in KO but and WMT but I won’t rule out trimming them back to capture some gains.
Please keep in mind that any is possible. Even a full rally back to the highs is not out of the question.
There will be no entry video on these trades.
TISI – After a 23% 2 Bar Run
TISA – After a 23% 2-bar run our action strategy will be to wait for a pullback and buy signal between the $12.90 and $13.60 areas. TISI is set to break out of a 4-month bullish “W” pattern. Recently on the daily chart see a double bottom and a Bullish Engulf. On the 3-day chart, I see a low • high • higher low. Plan your trade and trade your plan. ► Keep your eyes on price action and the chart patterns.
Good Trading – Hit and Run Candlesticks
► Trade Idea Update (ALGN)
You could have profited more than 45% or about $7800, with 100 shares when we posted to our members on August 8.
If you are interested in learning how to end the week with a profit that could change your life simply start a membership and learn what we have to share. – Yes I want the winning trades
► Eyes On The Market
The was no sign of weakness going into the close yesterday other than the transports and IWM, which hasn’t seemed to bother the bulls lately. I see the pre-market futures are forcing the SPY to open at the lower end of yesterdays range.
Here is what I will be watching for; Price action that leans toward the buyers or seller, whether or not we close above the upper T-Line Band and whether or not price holds above the Volatility Stop on the 1 hour and 2hour charts.
Rick’s trade ideas for the day – 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.
It almost seems unfair!
The Bull run has lasted so long and has been so strong it’s almost shocking when we see that the Bears still have teeth. It almost seems unfair to be looking so good at the close yesterday to have it fully reversed at the open today. As an inexperienced trader, an overnight reversal is like being betrayed by a close friend, and I would take it personally. Yesterday I suggested the market was showing some elevation stress. As a result, I made no new trades even though there were tempting buys all around me. Believe me; I had no idea such a big reversal move would happen overnight. Neither I or anyone else can predict the markets next move. However, there were clues to market stress that I mentioned yesterday.
On the Calendar
The only market-moving report on the Economic Calendar today is the weekly Jobless Claims at 8:30 AM Eastern. With Puerto Rico hurricane still a bit of a wild card the forecasters expect a 232K print today. After that, we get several lesser important reports as well as bound auctions and announcements.
Although Monday and Tuesday of next week have a significant number of earnings reports today is the last really big earnings day this year. Around 500 companies are expected to deliver results today so prepare for just about anything.
Action Plan
During the night Futures took a turn for the worse, and it was looking like we could have a sizable gap down this morning. There was a sharp recovery about 11:30 central time, but as of right now the Bears pushed back and are testing the overnight lows. If the market were to open at this very moment, the Dow could gap down about 60 points. As a result of the huge number of earnings report before the bell, anything is possible.
Yesterday I wrote that price action was suggesting a little stress from the current elevation. Although the Bulls made an impressive stand yesterday afternoon, my overall assessment has not changed. I suggest lifting your caution levels when considering new positions. Watch for a spike in volatility be careful to avoid chasing because bullish or bearish whipsaws are possible around market highs. With the weekend nearing after such a long and strong bullish move I will be looking to take profits more than adding new trades. It’s been a long time since we have seen a big bearish housecleaning move. I have no idea when it might happen, but I won’t be surprised if we see one relatively soon.
Trade Wisely,
Doug
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Price Action Clues
The bullish trend is still intact but yesterday’s price action began to show just a hint of stress at this elevation. I don’t think there is any reason for panic, but I think it would be wise to reign in trading activity just a little. The bulk of earnings season will be over this week and yesterday made me wonder if the bullish energy with fade as well. Please keep in mind there is nothing on the daily charts pointing to a pullback or correction as of now. The truth is it may be nothing more than a rest before going higher, but at this elevation, I want to err on the side a caution.
What this means is I will be a little quicker to take profits, a little more cautious when adding new risk, and very focused on price action. If the Bulls step back in, I’m more than willing to ride the wave with them, but if we slip into a choppy consolidation or pullback, I want to curtail my trading activity. As the weekend approaches I will also be thinking of taking some profits and reducing my overall exposure.
On the Calendar
There is only one noteworthy report on the Economic Calendar today. At 10:00 AM we get the latest reading from the EIA Petroleum Status report. They do no forecasting on this number, but current oil price moves suggest that traders are expecting the surplus to diminish.
The Earnings Calendar makes up for the light economic day with more than 450 companies fessing up their results today. So far earnings have produced a lot of bullish energy this quarter. The question I have is will the bulls be able to maintain that energy when the bulk of earnings reports finish this week?
Action Plan
The market indexes continue to trend higher but appear to be showing signs of stress at this elevation. I’m in no way suggesting the bull run is over, but I do think its time to elevate our caution level. It may be wise to consider taking some profits, adjusting stops and slowing our buying activity. It could turn out to be nothing more than a market rest before the bulls powering higher. Stay focused on price action for clues. Futures are currently pointing to a slightly lower open but with so many earnings reports that could easily change so stay on toes and prepare for anything.
Trade Wisely,
Doug
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JUNO – Bullish with A Buy Signal
JUNO – Is Bullish with a Buy Signal down to $51.65 on the profit-taking pullback after the recent 39% run. The past two months price has consolidated, and the 34-EMA has held it’s bullish trend. We feel the best way to handle this trade is to wait for a buy signal/pattern or even wait until a breakout occurs. Trade with a plan and of course the plan must make sense.
►JUNO – Train Your Eyes, Can You Find the Following?
Bullish Morning Star off the 34-EMA • Trending T-Line and 34-EMA • Bullish Engulf on the 3-day chart •
Good Trading – Hit and Run Candlesticks
► Ticker Update (EXAS)
You could have profited more than 48% or about $1975, with 100 shares when we posted to our members on August 3.
If you are interested in learning how to end the week with a profit that could change your life simply contact us. Rick Saddler founder of Hit and Run Candlesticks offers private recorded coaching • Coaching With Rick you can also learn this trading technique in our membership. – Get Started
► Eyes On The Market
The SPY was a little soft yesterday closing with a Doji Spinning Top. The Bulls held there position above the T-Line and the T- Line its trend. The earnings season is starting to wind down, and it is likely the bis bullish run we have seen may slow as well. The FED information due to come out may also be causing the market to walk softly. Becare full not to predict, watch for the chart patterns and trade the results.
Rick’s trade ideas for the day – 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.
Who invited the Bears to party? They have been hiding in the woods for so long it’s been easy to forget about them. Buy just about anything, and up it went with this incredible bull run. Overall the index trends still up but yesterday was a reminder that the bears have not eaten in a very long time and they are hungry! Now that earnings season is coming to an end I think we can expect more volatility and 2-sided price action ahead.
