The Bears create technical damage.

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The Bears create technical damage.

Sadtechnical damagely the price action concerns that I mentioned yesterday came to fruition as the Bears won the battle at resistance.  This time there was significant technical damage was created the in the index charts.  It may turn out to be nothing more than another round of market jitters but to ignore it is unwise.  The mantra for the last few years has been “Buy the Dip.”  However technical damage such as this normally takes at least several weeks to resolve.  We can now expect more volatility and challenging price action going forward.  Plan accordingly.

On the Calendar

We have a very light Economic Calendar this Friday.  At 10:00 AM Eastern we get the latest reading on Consumer Sentiment.  Although Consumer Confidence has been running near 20-year highs, Consumer Sentiment has been drifting lower.  The consensus is expecting a slight rebound to 94.0 vs. the last reading at 93.4.  Shortly after at 10:15 AM we have a Fed Speaker to round out the week.

On the Earnings Calendar we just over ten companies reporting today.  One of the biggest today will come from DE that reports before the bell.  Retailers EL and FL are also slated to report before the open today.  Although earnings season is winding down, it’s very important to make checking earnings report dates on the companies you hold and are thinking of buying.  Failing to do so can quickly damage an account.

Action Plan

Raising my caution level based on the price action served me well yesterday as the Bears won the first battle at resistance.  Yesterday the DIA broke and closed below the strong uptrend that it has enjoyed for several months.  Tremendous technical damage in the SPY was created yesterday breaking down below the prior low and closing well below the 50-day average.  The QQQ’s also suffered damage but managed to hold above the last low and the overall up trend closing at the 50-day average.  The poor IWM not only made a new low in its current downtrend but also sliced right through the 200-day average as if it was not even there.

With so much technical damage ahead of the weekend I will most likely stand aside today.  As you know, I always try to trade with the overall trend.  There are now sufficient clues that the up trend may falter, so I will begin putting together a watch-list of down trending stocks.  If you happen to be a long only trader, it is now time to curtail your trading activity.  Repairing technical damage will normally require several weeks of trading during which time volatility will likely be elevated making it very challenging even for the most experienced traders.  Please protect your accounts and realize you don’t have to trade every day to be a profitable trader.

[button_2 color=”green” align=”center” href=”https://youtu.be/5epadPTFvrQ”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

Personal Trade Plan Is Essential To Trading Wealth

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Personal Trade Plan Is Essential To Trading Wealth

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(It’s Friday) A personal trade plan is essential to trading wealth and Fridays are a good day to evaluate your trade plan. Do you have a 12-month goal? Do you know how much per trade, per week so you need to meet the 12-month goal? Do you know what trade set ups are best for you? We have found from our coaching that those that live by a trade plan profit more money and have a much higher success rate of increasing their wealth.

Friday is the day we count our money and reflect on our weeks trading. How did we do? How can we improve? Take time today to pause on trading and consider education. Reevaluate your trading goals, are your goals on track?

Good Trading – Hit and Run Candlesticks

 

Learn more about Hit and Run Candlesticks, and today’s trade idea and plan plus the 10 or more members trade ideas, starting at 9:10 EST AM every morning. Every day we teach and trade using the T-Line, Candlesticks, Support and Resistance, Trends, chart patterns and continuation patterns.

 

►Trade  Updates – Hit and Run Candlesticks

What a crazy week! We are still holding our shorts and 1 long. I can’t remember the last time I was only in 3 positions. It is a good feeling going into the weekend.

We have closed 31 positions in the past 31-days and a 55.17% win rate. Over the past 180 days, we are running a 68.91% win rate.

Are you having trouble putting together a winning trade? Not sure what scans to use? So near to having multiple winning trades, but something always goes wrong. Maybe a couple hours with a trading coach could make all the difference in the world. Hit and Run Candlesticks has 4 trading coaches – Learn More about the Coaches

With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your trading education here at the Hit and Run Candlesticks, Right Way Options, Strategic Swing Trade Service and Trader Vision.

 

►Eyes on The Market

In Thursdays pre-market blog we warned everyone and WOW! The Bear really woke up. Yesterday we closed below the 50-SMA in a big way, so I suspect we see some kind of relief rally. I do believe this is going to hurt and there will be more downside and of course there will be minor rallies. There is no shame in sitting on your hands until this market cools down. And cash is a position

►What is a Trade Idea Watch-list?

A trade idea watchlist is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame.  That time could be one to 15 days for example. From that watch list, we wait until price action meets our conditions for a trade.

Rick’s personal trade ideas for the day MEMBERS ONLY

Start your education with wealth and the rewards of a Swing Traders Life – Click Here

 

Investing and Trading involve significant financial risk and are 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.

 

 

ZOES – Pop Out OF The Box (RBB) Pattern

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ZOES – Pop Out OF The Box (RBB) Pattern

ZOES – Pop Out OF The Box (RBB) PatternZOES – The Pop Out of The Box (RBB) pattern alone with the Bullish constructed bottom and the Bullish candle yesterday suggest the Bulls are willing to push this stock higher. I have 2 profit zones on the trade plan, but I do think the Dotted Deuce could be reached. A pullback into the Buy Box and above $11.85 is what we are looking for. Don’t force trades and don’t be in a hurry.

Good Trading – Hit and Run Candlesticks

Learn more about Hit and Run Candlesticks, and today’s trade idea and plan plus the 10 or more members trade ideas, starting at 9:10 EST AM every morning. Every day we teach and trade using the T-Line, Candlesticks, Support and Resistance, Trends, chart patterns and continuation patterns.

Trade Updates – Hit and Run Candlesticks

We added one new long yesterday, and our 2 shorts are working just fine. Currently in 13 position total. Closed 21 positions in the past 30 days with a 57.14% win rate and an average dollar gain of $404.00. It’s been a rough 15 days.

Are you having trouble putting together a winning trade? Not sure what scans to use? So near to having multiple winning trades, but something always goes wrong. Maybe a couple hours with a trading coach could make all the difference in the world. Hit and Run Candlesticks has 4 trading coaches – Learn More about the Coaches

With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your trading education here at the Hit and Run Candlesticks, Right Way Options, Strategic Swing Trade Service and Trader Vision.

 

► TECK – You would be up 20.96% or $408.00

If you bought 100 shares when we posted to our members on July 24. Hit and Run Candlesticks members practice trade management and trade planning with Price and Candlesticks, The T-line, Trend, Trend Lines, Chart Patterns, Support, and Resistance.

 

► Eyes On The Market (SPY) Warning

The SPY has 4 very critical numbers that we will be watching –  Above $247.57 would indicate Bullishness and below $247.16 would indicate Bearishness. Then the Bulls would have to attack $248.92, and the Bears would go after $247.16. The last thing in the world the Bull wants is for the price to flirt with the $247.75 low as this would be flirting with a Bearish Blue Ice Failure.

► What is a Trade Idea Watch-list?

A trade idea watchlist is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame.  That time could be one to 15 days for example. From that watch list, we wait until price action meets our conditions for a trade.

Rick’s personal trade ideas for the day MEMBERS ONLY

Start your education with wealth and the rewards of a Swing Traders Life – Click Here

 

Investing and Trading involve significant financial risk and are 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 Bull/Bear battleground

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The Bull/Bear battleground.

The Bull-Bear battlegroundThe Bulls have been impressive rallying back up to test market highs however they seemed to lose considerable energy near the close.  With the futures looking lower this morning the Bears are showing their teeth and willingness to fight.  With definitive support and resistance levels on the DIA, SPY, and QQQ’s the Bull/Bear battleground as been established.  I suggest staying very focused on price action.  Trend and momentum currently favor the Bulls, but last week we saw how quickly that edge could fade away.  I am raising my caution levels and will restrict my market activity.  No matter which team wins this battle I will be ready to ride their coat tails when price action clues of the winner begin to emerge.

On the Calendar

The Economic Calendar for Thursday begins with the weekly Jobless Claims at 8:30 AM Eastern.  Labor continues to hold very strong this year, and forecasters see that continuing with a 240K print today.  Also at 8:30 AM is the Philly Fed Business Survey.  The July report only showed marginal strength at 19.5 vs. the 17.0 consensus for today.  At 9:30 AM we get a reading on Industrial Production which is expected to rise 0.3% with capacity utilization edging up to 76.7%.  Other than that we have Fed speakers at 1:00 and 1:45 PM and few non-market-moving reports mixed in for good measure.

There are just over 50 companies reporting earning today, so please stay on your toes checking your holding and those you are considering for new trades.  A couple to make a note of are the reports from BABA and WMT which both happen before the bell today.

Action Plan

Before the FOMC Minutes, the market was finally seeing some follow-through buying after the morning futures pump.  However, after the report, weakness showed up in the indexes selling off to near the opening prints.   The DIA, SPY, and QQQ’s all remained under resistance leaving behind indecisive candle patterns once again opening the door for reversal.  Currently, futures are pointing to a slightly lower open that require our attention.  If it turns out to only be a rest near the highs, perfect, but if the Bears go to work here then trouble could be just around the corner.

Over all the trend continues to be up but I think it’s wise to raise your caution level as we dance around the market highs.  Reversals can happen very quickly near market highs, and although 3 of 4 major indexes are holding up well, IWM is down-trending raising some questions.  As a result, I will likely curtail my trading activity slightly and will be prepared to take profits ahead of the weekend.

[button_2 color=”green” align=”center” href=”https://youtu.be/jG0wwbpUUQM”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

T-Line Above Past 20 Days Scan

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Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks or it’s associates should be considered as financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service

Morning gaps but no follow-through action.

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Morning gaps but no follow-through action.

So far this week the pros have pumped up the premarket in the futures gapping the market higher.  There is nothing wrong with that as long as we see some follow-through buying after the open.  However, the last two days have only seen chop after the open making it frustrating and challenging for most traders.  I have been warning each day to avoid chasing the gap and getting caught up in morning drama.

With the futures pointing to another gap up today, I will risk sounding like a broken record and repeat the same words of caution.  Keep in mind FOMC Minutes come out this afternoon.  It would not be a surprise if the market waits for choppy price action before the report.  After the minutes are released expect an extra dose of volatility with quick whipsaw action.

On the Calendar

We have three potential market moving reports on the Economic Calendar today.  At 8:30 AM Eastern it kicks off with Housing Starts which were weak in both April and May but bounced back in May.  Forecasters expect to see another increase today to 1.225 million annualized rate.  At 10:30 AM we get the EIA Petroleum Status Report.  Last reading broke a downtrend in oil supplies with a surprise build squashing the recovery that had begun in the sector.  Let’s cross our fingers and hope for a decline in supplies today helping to support the overall market.  The always anticipated FOMC Minutes will come out at 2:00 PM.  Normally the market would see light volume and choppy price action ahead of the number, but there is nothing normal about the current market.

On the Earnings Calendar, we have over 40 companies reporting today.  Retailers happen to be in focus with TGT reporting before the open today.

Action Plan

Our all or nothing market continues to gap higher at the open, but so far this week, there has been little to no follow through the rest of the day.  There is movement in some individual stocks but to have a little luck and be very quick to gain much benefit.  Currently, the futures are pointing to yet another gap up, but as now a breakout to new price levels has not occurred.  If you find yourself frustrated, you are not alone!  With out question, current price action has been very challenging with little to no edge for retail traders.

With another professional gap this morning I am once again forced to wait for clues that real buyers are willing to support current prices of the overall market.  The gaps on both Monday and Tuesday were met with chop the rest of the day.  Perhaps today will be different but with the FOMC minutes coming out this afternoon could once again create the conditions for more chop after the gap.  The trend is up so if I do trade it will be long.

[button_2 color=”green” align=”center” href=”https://youtu.be/cfbSgw60Dc4″]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

MDXG – Breakout From Consolidation

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MDXG – Breakout From Consolidation

MDXG – Breakout from consolidation, after 3 months of consolidation MDXG broke out on strong volume. Support and Resistance held price captive but now looks Bullish. We are Bullish with price above $15.80

Good Trading – Hit and Run Candlesticks

Learn more about Hit and Run Candlesticks, and today’s trade idea and plan plus the 10 or more members trade ideas, starting at 9:10 EST AM every morning. Every day we teach and trade using the T-Line, Candlesticks, Support and Resistance, Trends, chart patterns and continuation patterns.

Trade Updates – Hit and Run Candlesticks

No new trades yesterday, still holding 1/2 SGMO for a 17% gain – adjusted stop to protect more of the profits.

Are you having trouble putting together a winning trade? Not sure what scans to use? So near to having multiple winning trades, but something always goes wrong. Maybe a couple hours with a trading coach could make all the difference in the world. Hit and Run Candlesticks has 4 trading coaches – Learn More about the Coaches

With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your trading education here at the Hit and Run Candlesticks, Right Way Options, Strategic Swing Trade Service and Trader Vision.

 

► CROX would be up 18.57 or $148.00 if you bought 100 shares when we posted to our members on July 26. Hit and Run Candlesticks members practice trade management and trade planning with Price and Candlesticks, The T-line, Trend, Trend Lines, Chart Patterns, Support, and Resistance.

 

► Eyes On The Market (SPY)

The lack of follow through above our $247.25 resistance line suggest the Bulls just aren’t ready to take on the resistance, which begs the question will they be ready before a test near the lower trend line.

I am very concerned about the price action of the ETF (IWM). The chart continues to signs of weakness and could drag us into a correction below the 200-SMA.

► What is a Trade Idea Watch-list?

A trade idea watchlist is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame.  That time could be one to 15 days for example. From that watch list, we wait until price action meets our conditions for a trade.

Rick’s personal trade ideas for the day MEMBERS ONLY

Start your education with wealth and the rewards of a Swing Traders Life – Click Here

 

Investing and Trading involve significant financial risk and are 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.