Bears in a Hurt Locker
The Bulls executed a perfect blitz yesterday, overwhelming the Bears and putting them in a hurt locker. For those of us that stayed with the trend, the rewards were fantastic and a reminder to avoid predicting a top. We had new Record High Closes on all the major indexes as this historic bull run continues. Today after the early morning rush I’m expecting the volume to drop off dramatically for 2-reasons. First, traders will extend the holiday and today will be the big get-away-day. Secondly, we have the FOMC minutes coming out this afternoon, and price action normally gets light and choppy ahead of the release. I won’t totally close the door, but I will say it’s highly unlikely that I will add any new positions today. In fact, I will look for profit taking opportunities to reduce risk ahead of the holiday.
On the Calendar
The Wednesday Economic Calendar is a busy one with several potential market-moving reports. 8:30 AM Eastern, Durable Good Orders – Consensus expects a 0.4% increase in durable good orders, take out transportation the number rises to 0.5%. The core capital goods are expected to increase by a very healthy 0.5%. Also at 8:30 is the weekly jobless claims that forecasters see rising from 240K to 249K largely due to Puerto Rico hurricane victims. Consumer Sentiment comes out at 10:00 AM and is seen remaining historically high at 98.1. 10:30 AM brings the EIA oil status report which has been showing supply increases as demand declines. Finally at 2:00 PM, the FOMC Minutes, rounds out the day.
We only have just over 30 companies reporting today but keep an eye on DE as it reports before the bell and could easily move the Dow index.
Action Plan
New records for all of the 4-major indexes as the Bulls squeezed early short traders into covering trades. I must admit I was tempted to put on some short trades last week, but after a close look at the charts I stuck to my rules and stayed with the trend. As a result, Right Way Options members took several very nice profits yesterday. As of right now, the Futures are suggesting more bullishness at the open with Dow gaping higher about 30 points. Of course, all the economic news and earnings reports could extend or erode the morning sentiment.
As per the plan, I have taken profits this week thus lowering my risk as we head into the holiday. Honestly, there is not a thing wrong with the charts. The trend is still very much intact but anything is possible, and I want to enjoy the holiday knowing a large portion of my capital is safely tucked in. Of course, I will continue to hold a few positions, and long-term holdings will not change.
Trade Wisely and Happy Thanksgiving!
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/NT8XfG1X4Lo”]Morning Market Prep Video[/button_2]
Members Cover Their Membership Cost
Working to help our subscribing members cover their membership cost – (Keep reading we will get to that) The day before and the day after a holiday most of us have already checked out, Wall Street certainly has, of course, the FED minutes are released today. So on days like today why add more risk? Next week will get be here before you know it. I am sure we can all find something to do to relax or set up your goals for next year.
What I will be doing today– I have mentioned the last couple weeks that we have a way for our subscribing members to eliminate or at least 85% of your membership fee. LOL…nope, it’s not a secret candle formation we dug up buried for the last 400 years. I will be working on this project today, and we should have it ready for you before Christmass.
Happy Thanksgiving from our family to yours
► Members’ Trade Idea Update (SQ)
It just keeps on going… On August 4 we shared and went over the technical properties of SQ, at yesterdays close the profits would be about 86% or $2230.00, with 100 shares invested.
[button_2 color=”orange” align=”center” href=”https://hitandruncandlesticks.com/hrc-rwo-30-day-offer/” new_window=”Y”]30-Day Trial • HRC • RWO • Or Both[/button_2]
► Eyes On The Market
SPY broke out yesterday, and so did everything else. The trend in SPY, DIA, IWM, QQQ remain bullish, and the transports (ETF) IYT is trying to make a comeback. It still needs work, but it is trying. Buying charts that are trending and consolidating have been profitable, as you may know.
Happy Thanksgiving
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 Loves to Eat?
ZOES – Who loves to eat? We all do silly traders. The RBB strategy will work perfectly for the ZOES chart. ZOES has rallied from a Bull Kicker to the Dotted Deuce and pulled back to create a PBO J-Hook continuation pattern. Note gap above the 200-SMA to about $15.90.
30-Days in the Trading Room could be a game changer for you.
Good Trading – Hit and Run Candlesticks
► Members’ Trade Idea Update (ZAGG)
On October 4 we shared and went over the technical properties of ZAGG, today the profits would be about 38% or $605.00, with 100 shares.
[button_2 color=”green” align=”center” href=”https://hitandruncandlesticks.com/hrc-rwo-30-day-offer/” new_window=”Y”]Live Trading Room and Membership Trial[/button_2]
► Eyes On The Market
The SPY remains above the T-Line trend and the $257.30 support line. The morning futures are suggesting a higher open. Premarket price has challenged the recent high. The Bulls are in charge as long as they maintain the trend. Pullbacks to support are welcome with evidence of buyers coming back in. The 3,4,5 day charts look like consolidation above the T-Line.
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.
Defend Price Support
It was nice to see the Bulls step up and defend price support levels yesterday. Futures are suggesting the first directional follow-through in the Dow for the last 5-days of trading. Even the Dow Transports, (IYT) held support suggesting at least a short-term rally could be in the cards. The VIX which was stubbornly clinging to price support level finally gave way to bullishness sinking sharply by days end. Let’s keep in mind that even though the futures are pointing to a nice gap up that Thanksgiving is just 2-days away. Volumes could begin to drop off quickly at any time. Even the best of trade signals can and will stall if volume dries up so keep that in mind as you plan.
On the Calendar
On today’s Economic Calendar we have the very important Existing Home Sales at 10:00 AM Eastern. Home sales rose slightly by 0.7% in September to a 5.390 Annualized rate. Forecasters are suggesting a solid growth in home sales with an expected October print of 5.440 million. There are a couple of mid-day bound auctions, but then at 6 PM, Janet Yellen Speaks.
On the Earnings Calendar, we have just short of 60 companies reporting earnings today. LOW has already reported better than expected results this morning. Others include CPB, JEC, KIRK, MBT before the bell and CPRT, CRM, GES, DRYS and GME after the bell.
Action Plan
The market opened a bullish yesterday but a bit on pins and needles with the question; Will the Dow hold at support? The answer came back as yes and now requires a bullish follow-through to confirm. Both the SPY and QQQ’s turned in a lackluster performance yesterday while the IWM continued to show life rallying back toward resistance. As I write the Futures markets are bullish across the board suggesting might actually see the second day in a row in the same direction. Something we have been unable to do for the last five trading days!
Of course, I will continue to manage current positions, but as we move toward the holiday, I will be watching closely for reasons to take profits and reduce risk. I will also continue to look for new entries and building the watchlists of qualified stocks. Be prepared for the possibility that volumes could begin to drop off quickly as Thanksgiving approaches. Great by signals produced in the morning rush can easily die on the vine as volumes drop into the afternoon. Remember it’s the big institutions that move the market. As their traders pack up for holiday vacations volumes can drop quickly, and the price action becomes choppy, boring and virtually untradeable. Keep that in mind as you prepare plans for the remainder of the week.
Trade Wisely,
Doug
[button_2 color=”green” align=”center” href=”https://youtu.be/-YulZXn_OSE”]Morning Market Prep Video[/button_2]
Trade Alert
CSCO is looking pretty strong this morning. I would not be surprised to see a little more consolidation but I would also not be surprised to see it move higher.
I want to take a long term trade eventually but looking at this I get the impression of shorter swing trade. If your interested consider the JAN18 35 strike calls. If you do decided to trade it I would suggest keeping it small because it is very early in this pattern.
There will be no entry video.
Remember all trade ideas are for your evaluation and consideration. Only trade if it fits your risk tolerance and trade rules.
The Bulls executed a perfect blitz yesterday, overwhelming the Bears and putting them in a hurt locker. For those of us that stayed with the trend, the rewards were fantastic and a reminder to avoid predicting a top. We had new Record High Closes on all the major indexes as this historic bull run continues. Today after the early morning rush I’m expecting the volume to drop off dramatically for 2-reasons. First, traders will extend the holiday and today will be the big get-away-day. Secondly, we have the FOMC minutes coming out this afternoon, and price action normally gets light and choppy ahead of the release. I won’t totally close the door, but I will say it’s highly unlikely that I will add any new positions today. In fact, I will look for profit taking opportunities to reduce risk ahead of the holiday.
