Hedging with Options – Public E-Learning Sept. 2nd, 2017
New Record Highs in the Tech Sector.
New Record Highs in the Tech Sector.
With an impressive display of strength, the Bulls managed to make new record highs in the tech sector once again. It’s as if North Korea disappeared and the devastation on the southern coast never happened. The Bulls are large and in charge as we begin September. Futures are suggesting yet another gap up, and the VIX is once again testing historical lows. As we say all the time, “Trade with the trend until the trend ends” and the trend except for the IWM is up. With a gap at or near new market highs always watch for possible whipsaw price action. I’m not saying it is, but it’s the perfect place to set a bull trap much like the gap down on the 29th turned into a Bear trap.
On the Calendar
The Friday Economic Calendar kicks off with the granddaddy report of the month. Before the market opens at 8:30 AM Eastern the Employment Situation Report is released. Forecasters are looking for this number to cool off to 180K vs. the 231K reading last month. At 9:45 we get the PMI Mfg Index which last month was 53.3, but there seems to be no forecast for this month. At 10:00 AM the ISM Mfg numbers is the other big number today that could move the market. The ISM August consensus is calling for continued strength at 56.6 vs. 56.3 in July. Construction Spending and Consumer Sentiment is also at 10:00 AM today. Construction Spending is expected to bounce higher today. The consensus of Consumer Sentiment suggests it likely diminishes slightly to a 97.4 reading.
On the Earnings Calendar, there are less than 20 companies expected to report today. I would expect none of them to be market moving, but please continue to check your holdings as part of your morning prep.
Action Plan
With three days of amazing bullish strength, the QQQ set a new record high yesterday with buying right into the close. The SPY was also very impressive however it continues to remain under price resistance although very near new highs. The DIA decided to take a siesta yesterday after gapping up choosing to just lounge around in a small chop zone. And although the IWM still has a lot of recovering to do it also pushed up strongly to test resistance levels.
With the Bulls continuing to push on the futures, it is pointing to a gap up of more than 50 Dow points. Personally, I don’t want to chase the gap at or near market highs. I will focus on the price action after the open looking for follow through buying before deciding to add new positions. Because this is Friday and we have had an amazing reversal I will be planning to take some profits today before the weekend. With the Bull running hard the VIX has dropped back into the zone of historic lows. When there is no fear, big moves are possible but also know they can also be very volatile.
[button_2 color=”green” align=”center” href=”https://youtu.be/SymJxUe_cZk”]Morning Market Prep Video[/button_2]Trade Wisely,
Doug
What is your favorite chart pattern?
What is your favorite chart pattern?
(It’s Friday) What is your favorite chart pattern? Why? Can you explain it? Or is it just your favorite because others use it? I am very serious, if you are trading a pattern or a strategy can you truly explain it, in words to someone else, not just in your head and to yourself. Give it a try..the better you get at it, the better trader you will become.
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 –We closed ½ of our MNKD trade for 25.29%
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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
The SPY has had a great 3 days of Bullishness, the T-Line is back over the 34-EMA and a Bullish breakout is very possible. But I suspect we will need a little pullback and a new running start. The Reversal pattern on the SPY is a work of are; Low, High, Higher Low, Belthold, Bullish follow through.
►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.
Bullish Morning Star Shows Bullish Follow Through
Bullish Morning Star Shows Bullish Follow Through
CHRS (Coherus BioScience) has printed a double bottom with a Bullish Morning Star that is showing Bullish follow through. Price has pulled back from a Shooting Star to test the 50-SMA it Bullishly broke through. Today we are looking at a Pop Out of the Box within a Rounded Bottom Breakout.
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 8:45 EST AM every morning with the HOG and then Rick at 9:10 EST. 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 1 new long yesterday and closed out AMZN short for a profit and closed our TVIX for a 3.6% loss.
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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.
► GRUB – You would be up 28.43% or $1246.00
If you bought 100 shares when we posted to our members on May 30. 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)
Yesterday, Wednesday, August 31, the Bulls were in the mood to run over a few Bears. The Bullish Belthold had great follow through which led to a close over the big 3 moving averages and the $245.60 line. There are still traps the Bull can fall into before a new breakout so trade wise. Listen to what price is telling you.
► 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 Bulls are back in town.
The Bulls are back in town.
After a tough battle at price resistance in the morning, the Bulls finally gained the upper hand about midday. Resistance levels and even some down trend levels gave way. We can now officially say the Bulls are back in town and at least for now seem to be in control. Historically August and September are tough months in the market, but there has been nothing typical about this year. As normal I will caution you about chasing the morning gap, but it now looks to me that new record market highs are possible in very near future. The massive damage in Houston what I assume create productivity losses and likely rising jobless claims, but this currently is being completely ignored by the market. That may be a little shocking but not all that surprising with the wildly bullish nature this market has displayed. The VIX is once again showing a remarkable lack of fear or as some might suggest complacency. Enjoy it and profit from it just don’t be lulled to sleep by it.
On the Calendar
We begin today’s Economic Calendar with the weekly Jobless Claims at 8:30 AM Eastern. Claims have held steady at historic lows this summer, and forecasters see that continuing but up slightly to 237K. Also at 8:30 AM we get a reading on the Personal Income and Outlays which was weak in June. However, the consensus is expecting an increase of 0.4% in both income and spending today. At 9:45 is the Chicago PMI which pulled back slightly from a 3-year high in July. August consensus is expecting another slight decline to 58.6 which is still very strong overall on order and backlogs. At 10:00 is Pending Home Sales which forecasters see rising 0.4% from the July number.
There are more than 50 companies on the Earnings Calendar expected to report results today. Retail seems to be a theme today with DG, LE, LULU, and BEBE on the schedule. Also reporting today is big blue chipper CPB.
Action Plan
Yesterday the market seemed to struggle until about midday when the Bulls finally began to over run the Bears at resistance. Not only did the Bears give up resistance levels but by the end of the day, even some of the down trend levels gave way to the buying. We are not completely out of the woods with more resistance levels above, but Bulls seem to have regained control of market direction. This morning the Dow Futures are pointing at least a 50 point gap up. As always a will caution you about chasing a gap when we are at or near market highs. It’s the perfect place to find whipsaw price action and set Bull traps. Wait to see if there is follow through buying before adding new risk.
Currently, we are in some great positions with 70% gains in X, 50% gains in TECK, very nice profits in the BRKB. We are holding small gains in FCX, and GRUB. Even our new position in MSFT closed the day with gains. As we head into the weekend, don’t forget to take some profits. Selling into strength is a trait of consistently profitable traders. Don’t allow greed to prevent you from getting paid for your hard work. As long as this morning gap holds, I will be looking for new long positions entries but protecting current gains will be at the top of my list of priorities.
[button_2 color=”green” align=”center” href=”https://youtu.be/50wbS8ga2Fw”]Morning Market Prep Video[/button_2]Trade Wisely,
Doug
New Trade
Today During the live session we entered a new trade in MSFT using a weekly chart. The trade is still viable for an entry. 8-30-17
Buy the JAN 2018 67.5 Call Options, best possible price. Initial Stop was set at $70.15. Manage as you see fit.
The goal will be to sell calls against the trade if MSFT makes a move higher. I will be managed on a weekly chart at least for now.
Technical Difficulties
Technical Difficulties
Please except our apologies we are experiencing technical problems causing us not to get any of our trade ideas sent out.
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 sold the second ½ of JNUG for a 19.03% profit – I love my job! We also bought MNKD; yesterdays featured trade idea.
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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.
► ALRM – You would be up 9% or $369.00
If you bought 100 shares when we posted to our members on August 14. 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)
Yesterday, Tuesday, August 29, the Bulls found themselves holding the cards and pretty much op
ened a can whoop-ass on the bears. Closing yesterday with a Bullish Belt Hold above the 50-SMA. So what’s next? Well, the Bull needs to show strength (follow through) sooner rather than later. Yesterday’s Belthold does not change trading 101; price still needs to close over the resistant line $245.45. I did lower it because of the chart pattern.
► 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.
