Looking At The 3-Day Chart
SND – The Bullish trend started in mid-August3. Looking at the 3-day chart price action is being supported by the September highs, the last 7 bars (3-day chart) has painted a Pop Out of The Box pattern. Bullish over $8.60 with profit target zones above.
At 9:10 AM ET. We will talk about the technical properties of SND 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.
To the member’s area for the Trader Vision Trade Plan
► Must Read Trade Update (EYES)
On December 4, we shared and covered in detail the technical properties of EYES in the Trading Room, Yesterday the profits were about 47% or $500.00, with 800 shares. EYES has been creating a bottom, after breaking out ran to the next profit zone. The PBO Bullish Engulf on December 1 kicked off the run.
[button_1 text=”Monthly%20Membership%20Only%2085.00″ text_size=”32″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”Y” subtext=”Start%20Now%20%E2%80%A2%20Cancel%20Anytime” subtext_size=”18″ subtext_color=”#0c23e4″ subtext_bold=”Y” subtext_letter_spacing=”0″ text_shadow_panel=”N” styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”N” inset_shadow_panel=”N” align=”center” href=”https://hitandruncandlesticks.com/hit-and-run-candlesticks/” new_window=”Y”/]
► Eyes On The Market
The SPY has worked hard to overcome the Bearish Engulf on December 4 and has done a great job. The recent pullback used the V-Stop, and the T-Lines have continued to trend. The 4-day chart has painted a Bullish Doji continuation pattern. As of the close, yesterday price action still suggests bullishness. The VXX short-term futures are trending down below the V-Stop and the Lower T-Line Band.
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.
*************************************************************************************
Waiting for the Fed
Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.
On the Calendar
The beginning of the FOMC meeting tops the Economic Calendar today and will weigh on the mind of the market. At 8:30 AM Eastern is the PPI report which consensus suggests will once again show an increase of 0.3%. Food prices are also expected to show in an increase of 0.2%. We have a couple of bond auctions mid-day and then close the calendar with the Treasury Budget at 2:00 PM. I doubt that its any surprise that the deficit continues to rise now expected to top 134 Billion.
The Earnings Calendar indicates 28 companies will report earnings today with the majority of them coming after the bell. Make sure you always know about and have a plan for companies you hold that are reporting. A little effort can save you a lot!
Action Plan
Another day of record closes for the DIA and SPY as steady grind higher. The DOW is only 600 points from that big round number of 25,000. I suspect that’s a headline the market would like to see. In fact, I would bet they already have the hats and t-shirts printed in anticipation. The QQQ’s ended the day yesterday showing nice strength making a record high attempt look possible again. The Russell decided to largely take the day off and chose not to participate in the Bull Party.
This morning the Futures are once again pointing to small gap up open. The VIX- continues to fall and is once again approaching record low territory. An 8-handle print is only 34 points away which is amazing to me considering the elevation of the market. With up-trends intact on the overall market, I will continue to look for long trades with low-risk entry points. I will also stay very focused on price action looking possible reversal points as the DIA and SPY stretch out for the all-time high print. Keep in mind the FOMC meeting begins today and a slow, choppy market is often the result as we wait.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/PSNSsnXyGBg”]Morning Market Prep Video[/button_2]
Weekly Options
The Weekly Options idea in MU on Friday has paid off very well with better than 50% gains today. Congrats to those that took some risk on that position.
Today I have a very similar idea on AABA. the stock has rallied very strongly off the low but now seems to have bumped into resistance. Consider the 15 DEC AABA 44.5 Puts for a quick short. A close above today’s high would be a good reason to stop out of the trade. Plan to take profits quickly as well is the stock moves in our favor.
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 Dow Futures pointing to a gap up open and the VIX once again dropping below a 10-handle all is well in the market. Or is it? Let’s keep remember; it was just a week ago that many were calling a blow-off top! The truth is no one knows the future and thinking we can predict it is nothing more than ego trampling common sense. However, if set aside our bias focus on price and listen closely, the market will whisper clues and allow us to take calculated risks. Otherwise know as trade planning! Not just some of the time, All the Time. each and every trade! So the questions is, are you listening or are you still trying to predict? With a gap up to new market highs, the market is whispering to me to avoid chasing this morning and watchful of possible whipsaws. Also with the FOMC on Wednesday, choppy boring price action could lie ahead.
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.
Are you still trying to predict?
With the Dow Futures pointing to a gap up open and the VIX once again dropping below a 10-handle all is well in the market. Or is it? Let’s keep remember; it was just a week ago that many were calling a blow-off top! The truth is no one knows the future and thinking we can predict it is nothing more than ego trampling common sense. However, if set aside our bias focus on price and listen closely, the market will whisper clues and allow us to take calculated risks. Otherwise know as trade planning! Not just some of the time, All the Time. each and every trade! So the questions is, are you listening or are you still trying to predict? With a gap up to new market highs, the market is whispering to me to avoid chasing this morning and watchful of possible whipsaws. Also with the FOMC on Wednesday, choppy boring price action could lie ahead.
On the Calendar
The Economic Calendar this week kicks off at 10:00 AM Eastern with the JOLTS report. Job openings have been running very strong. In September JOLTS counted 6.093 open jobs around the country. The consensus for October sees that number increasing to 6.100 million. We round out the remainder of the calendar with bond announcements and auctions.
Ther are 18 companies on the Earnings Calendar expected to report results. A quick look and I don’t see any that is particularly notable or likely to move the market. However,r if you now one them they certainly have the power to move your account. Make sure to check as part of your daily planning.
Action Plan
Last Friday saw the both the DIA and SPY make new record high close while still below the high print. The QQQ gapped but ran into some sellers at price resistance as did the IWM. Overall the day was bullish leaving behind a lot of really good looking charts. Maybe it’s just me, but the price action seemed to lack commitment or perhaps it’s just a little tentative ahead of the FOMC this week.
Futures opened bullishly and currently seems to have strengthed that sentiment into the pre-market session. The CBOE kicked off trading in Bitcoin futures last night, and the overall market appears to be completely twitterpated by an intangible one and zero digital currency. It will certainly be interesting watch which I intend to do from the safety of the sidelines. It will not be a surprise if the market becomes slow and choppy after the morning rush today. Keep in mind the FOMC is expected to raise interest rates on Wednesday. Also be on the lookout for whipsaw price action as we test market highs.
Trade Wisely.
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/8A8sggFZSGc”]Morning Market Prep Video[/button_2]
Watching The 3-Day Chart
HK – I am watching the 3-day chart starting with the candle on July 12. The chart pattern from July 12 has floated sideways with support around $5.80. Then on November 2, a little upward trend started. Now support has kicked up a little to about $5.60. Notice how the 34-EMA has risen above the 200-SMA
At 9:10 AM ET. We will talk about the technical properties of HK 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.
To the member’s area for the Trader Vision Trade Plan that we have created for ourselves.
► Must Read Trade Update (TRLD)
On August 31, we shared and covered in detail the technical properties of TLRD in the Trading Room, Friday the profits were about 64.20% or $764.00, with 100 shares. TLRD broke out of out (RBB Pattern) and continued the trend with minor pullback opportunities (PBO). Moving the stop up to about $18.85 would make sense.
[button_2 color=”orange” align=”center” href=”https://ob124.infusionsoft.com/app/orderForms/HRC-Hit–Run-Candlesticks-30-day-Trial-1497″ new_window=”Y”]30-Day Trial Hit and Run Candlesticks • Earn While You Learn[/button_2]
► Eyes On The Market
The SPY was able to rise off the T-Line last week and close Bullish. On the daily chart, a Bullish J-Hook Continuation pattern is forming, A close above $266.38 would confirm the Bullish J-Hook Pattern. Sometimes it’s hard to make sense of a grouping of candles on a daily chart, so you might want to look at a higher time frame. Take a look at the 4-day chart; you can see a bullish Doji Continuation Patter formed. The bulls simply need to follow through and stacking.
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.
*************************************************************************************
A Quick Short
Yesterday’s Free Trade, UAL, Moved up nicely yesterday and gaped for a one day return of nearly 30%. Congrats to those who took advantage of the idea. Now let’s look to the future for a quick short idea.
MU has made a nice recovery but seems to have run headlong into price resistance. Take a look at the MU 15 DEC 46 strike Put weekly contacts. This trade will gives us a nice negative delta position with plenty of open interest. Theta is the enemy here so if MU does not make a move lower by Wednesday 13th consider closing the position. If MU closes above resistance you may also want to close the position.
Recently Closed Trades
CSCO 17% • BAC 31% • CREE 48% • WMT 245% • NFLX -40% • STX 42% • 2nd CSCO Trade 30%
Today’s Market Prep Note
During the evening the Congress passed a continuing resolution that prevents a government shut down. However, their action only extended the battle for 2-weeks. Now the question is will the hoped-for Santa Claus Rally be held, hostage by Congress? Santa held hostage, shame on you Congress! My feeble attempt at humor is simply point out that the market will likely remain sensitive to the spin out of Washington D.C. Of course, the bulls could find their inspiration in the Employment situation number to move higher, but the governmental pressure will be ever-present. Also, weighing on the mind of the market is the upcoming FOMC meeting. As for me, I will continue to focus on price action and continue to trade with the trend. However, I may trade smaller than normal positions due to the uncertainty of the new cycle.
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.
Mostly Winning Trades
This past week I have seen mostly winning trades come out of the trading room with only a few losses, but one thing is for sure the trading has slowed because of the market. For the most part, the SPY has been unsure of its self but held the -Line, the QQQ’s didn’t like being above the T-Line so had to test what it was like below (now back above), IWM and the DIA’s liked being above the T-Line and stayed. IYT felt like the king of the hill held proud above the T-Line the entire week and last week too. Leading sectors above the T-Line this week has been, (SX100 Industrials) (SX60 Healthcare) (SX20 Consumer Cyclical) (SX50 Consumer Defensive)Tax bill, Employment numbers, Fed Rate Increase are just to name a few issues that could change the course of the charts.
►Sample • Members Recent Big Winners
BEND 25.55% • DEPO 46.14% • EYES 19.12% • TLRD 63.96% • X 27.96% • 21.5 • VIAB 13.35%
►News From Our Team
Trader Vision 20/20 – I have downloaded the newest version this morning, and the word is to give it a spin. We are very excited that Trader Vision 20/20 is just days from being launched. What is one thing the top traders do? They plan their trades and trade their plan. Trader Vision 20/20 is perfect for planning your trade.
Before Christmas is announcing a way that most (not all) will be able to cut their membership cost by 50-100% – I am currently using this product and love it. By the way, there is NO COST TO YOU
► Eyes On The Market
On the daily chart, the buyers have kept the closing price above the T-Line, this suggests the bulls still control the trend, and the bears are just grazing a little. After all, the bear needs to eat too. A close below $262.15 will put a strain on the trend that the buyer may not like. The VIX settled down a bit yesterday closing back below the Lower T-Line Band; this is good for the bulls.
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.
