FOMC and Earnings a Volatile Combo

July 25, 2017 by Doug Campbell

FOMC and Earnings a Volatile Combo

We have enjoyed the steady and strong rally, but the road ahead could be a bit bumpy ahead. As earnings reports ramp up and the VIX has fallen to historic lows. Toss in the FOMC, and we have an explosive combination that could trigger significant volatility. Price action is currently very bullish but doesn’t ever think the market is safe and simply can’t go down. Complacency is a very dangerous for traders. Anything can happen. Be prepared at all times. I am always especially focused on price action when futures point to a gap up to new market highs. It’s the perfect setup for a pump and dump by the big boys so don’t chase! Have the discipline to plan carefully and follow the plan. Your success depends on it!

On the Calendar

Today on the Economic Calendar there are three reports that are unlikely to move the market. They are the Housing Price Index, Richmond Fed MFG, and Investor Confidence. The two reports that could move the market is the S&P CoreLogic Case-Shiller HPI at 9:00 AM Eastern and the 10:00 AM Consumer Confidence. The Case-Shiller topped earlier this year and has since moderated. The number is expected to come in at 0.3% with the year-on-year number at 5.8. Consumer Confidence consensus for July is expected to come in at a very strong 117.0. Also, keep in mind that the FOMC meeting today with interest rate announcement at 2:00 PM tomorrow.

On the Earnings Calendar, we have 184 companies reporting today, so it would be prudent to stay on top of reporting dates for the companies you own and are thinking of owning. After the close yesterday, GOOGL seemed to have disappointed the market, and the stock is indicated down 25 points this morning. It will be interesting to see if that affects the QQQs and the very strong rally of late.

Action Plan

Yesterday’s trading started pretty slow and choppy but as the day progressed the Bulls seemed to gain the upper hand finishing the day strong. The DIA tested and so far held price support, SPY held up extremely well, QQQ closed at a new record high, and even the IWM rallied off of support. Consequently, price action continues to suggest bullishness. If earnings reports continue to impress the market, then we should expect more records high closes to come.

Today I will be looking for new positions, but I will also be watchful of whipsaw price action. Futures are suggesting a gap up open. Anytime I see the market gap up to new record highs I’m always watchful of the professional pump and dump creating that whipsaw price action which is very difficult manage. As a result, I will wait 20 to 30 minutes after the market opens focusing on price actions and making sure real buyers are supporting the gap. Please keep in mind the market would normally become soft as we wait for the FOMC. Toss in about 200 earnings report, and we have a potentially volatile combination. It would be wise to prepare for anything.

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

Trade Wisely,

Doug

FEYE – Has Formed a Bullish Ascending Triangle

July 25, 2017 by Rick Saddler

FEYE – Has Formed a Bullish Ascending Triangle

(FireEye Inc.) $FEYE has formed a Bullish Ascending Triangle, and on the 3-day chart, it can be traded using the Rounded Bottom Breakout Strategy. The T-Line continues to trend in spite of the choppy price the past 3 months. Looking back to July 7^th we can see a Bullish Morning Star, a Double Bottom and a minor breakout with consolidation. Volatility stops are we positioned on the daily and the 3-day charts. (Disclosure – Hit and Run Candlesticks bought FEYE yesterday)

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 closed NVAX yesterday with a small gain, in hind sight, we should have closed it sooner. We will wait for another buy alert. We entered 2 more trades yesterday, and we are still holding 4 Double -Digit gainers and 7 single digit gainers with a few still waiting.

What would you do with 2-3 or even 4 double-digit trades every week? Education on how to manage a trade from start to finish is key to a swing traders profits.

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.

$DVAX was first presented to HRC members on March 1,

And yesterday it ran another 10.94% for a total of 136.67%. Another chart that has worked out very well for Hit and Run Candlestick Members. Hit and Run Candlesticks members have learned how important it is to follow price with Candlesticks and manage their trades using The T-line, Trend, Trend Lines, Support, and Resistance.

Eyes On The Market

A few big names will be reporting today so as always be aware and trade with caution. Yesterday the market was controlled by the bulls for the most part. The T-Line trend is still intact with no sell signal posted yesterday.

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 watchlist, we wait until price action meets our conditions for a trade.

MEMBERS ONLY

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.

Will earnings continue to support current valuations?

July 24, 2017 by Doug Campbell

Will earnings continue to support current valuations?

Third quarter earnings that began as a small creek will become a rushing river of reports for the next few weeks. Remember it’s not the actual report that matters its how traders and investors react to the report that matters. The market has been very bullish, and now it’s up to companies to prove that their earnings can support the current valuations. Make sure to check reporting dates on everything you hold or are thinking of buying and prepare with a well thought out plan.

On the Calendar

The last full trading week of July will begin with PMI Composite Flash and Existing Home Sales on the Economic Calendar. The PMI number is at 9:45 AM Eastern and is expected to slow for the 53.9 reading in June to around 53.2 in today’s reading. Although slightly slowing anything above a 50 reading demonstrates growth. The service sector continues to as the strongest growth sector. Existing Home Sales came out at 10:00 AM and expected to continue on it modest trajectory higher. However, the consensus number of 5.620 annualized units would show a soft spring in home sales.

There are 76 companies expected to report earnings today and will ramp up to nearly 500 on Thursday. It is vital for every trader to check reporting dates for companies held and those under consideration for purchase. Failure to do so could prove to be a very expensive lesson. Don’t rely on luck!

Action Plan

The Bulls held and defended a key support level in the DIA rallying off the level right into the close of the day. The SPY and QQQ’s remained strong and above supports although closing slightly lower. The IWM that finally broke out last week left behind a possible Evening Star Pattern but maintained just above the key breakout support. Futures were mostly down all evening and as I write this continue to point to a slightly lower open today.

After the impressive rally over the last 2-weeks, it would not be out of the question to see the market rest or even slightly pull back. However, it’s very important that the Bulls continue to defend support levels. Resistance breakouts are great but always remember that support is not support, until it’s tested and buyers step up to the plate and defend the price level. I will be looking for new trades today, but I will need to see some bullish energy in the overall market before doing so. RWO members Banked some nice gains last week. Now the trick is to hold on to those gains. As always be very choosy about the trade you take. Quality is far more important than quantity.

[button_2 color=”green” align=”center” href=”https://youtu.be/7QNr5S3lZBo”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

TGH – Has Broken Out Of A Bullish W Pattern

July 24, 2017 by Rick Saddler

TGH – Has Broken Out Of A Bullish W Pattern

(Textainer Group Holdings Ltd) After about 2 weeks TGH has broken out of a Bullish W pattern and a Bearish downtrend line. $TGH has consolidated for about 2 weeks trying to put a trade together, last week a Bullish Morning Star was formed and led to Friday’s breakout. Trade with extream caution in current market condition.

Trade Updates

A few stock we are holding are PLUG, HIIQ, KTOS, HZNP, VEX, P, IPI, CBAY; we also have a few that are not green, but that is not in any danger as of Friday’s close.

What would you do with 2-3 or even 4 double-digit trades every week? Education on how to manage a trade from start to finish is key to a swing traders profits.

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 Candlestick, Right Way Option, Strategic Swing Trade Service and Trader Vision.

$XGTI was first presented to HRC members on May 24,

A ran another 5.15% Friday for a total of 26.94% from the May 24 call. Another case of knowing how to manage a chart with Candlesticks, The T-Line, and Support and resistance.

Eyes On The Market

This is going to be a crazy week for earnings therefore Hit and Run Candlesticks we are taking a very protective and cautious stance when trading this week. Out trading is likely to be very light.

The SPY, IWM and Q’s closed over the bullish trending T-Line while the DIA closed a bit weak. It will be very important that the T-Line continues to trend with the Bulls this week. Support is at the $245.00 area for the SPY.

Over all the market is bullish, price leading the T-Line and support doing its job as of yesterday. 2 ETF’s that might help with the market overview is (VTI) Total Stock Market ETF and (VT) Total World ETF. IWM finally broke out.

What is a Trade Idea Watch-list?

MEMBERS ONLY

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.

Friday Is The Day We Count Our Money

July 21, 2017 by Rick Saddler

Friday Is The Day We Count Our Money

(It’s Friday) 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 trading goals, are the goals on track?

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.

HRC Trading Stats

Below you will find the Hit and Run Candlesticks trading stats for the past 30 days.

We are currently holding 2 double digit winners 8 single digit winners, 9 within 2% of breaking even. We will continue to manage our trades looking for good solid swings.

What would you do with 2-3 or even 4 double-digit trades every week? Education on how to manage a trade from start to finish is key to a swing traders profits.

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 Candlestick, Right Way Option, Strategic Swing Trade Service and Trader Vision.

$AGEN was first presented to HRC members on July 5,

With a 3.07% move yesterday the total now 25.75%. Another case of knowing how to manage a chart with Candlesticks, The T-Line, and Support and resistance and the trend.

Eyes On The Market

The market remains bullish with Thursday’s close. SPY, IWM QQQ, and DIA all above the T-Line and trending. The transports are a little weak (caution). Continue to manage the trades that are working for you.

What is a Trade Idea Watch-list?

Each day Hit and Run Candlesticks shares with members 10-15 trade ideas for the watchlist.

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.

Taking Profits to the Bank.

July 21, 2017 by Doug Campbell

Taking Profits to the Bank.

After posting the first 10-day bull run in two years, I have Taking Profits on mind this Friday. It has been an amazing run, and it’s very thoughtful of the Bulls to have kept it going to our normal profit taking day, Friday! With the QQQ’s and the SPY posting a hanging man pattern yesterday I am further encouraged that is time to go the bank. Please don’t misunderstand; I’m not suggesting the market is going start falling! I am merely suggesting there are enough clues that I need to take some profits and reduce my long exposure ahead of the weekend. After all, isn’t consistently profiting the goal of professional trading? Never let greed prevent you from taking profits on a consistent basis!

On the Calendar

Today we get a very nice rest on the Economic Calendar with only the Baker-Hughes Rig Count at 1:00 PM Eastern. The Rig Count tracks the number of actively operated oil and gas rigs. It a relatively benign number and very unlikely to move the market unless it reports a major surprise. That wraps up the Economic Calendar for this week.

We also get a Friday break on the Earnings Calendar with only 34 companies reporting earnings. Some the notables are CL, HON, GE, and KSU. Although important I don’t see any reports that are likely to be big market movers today.

Action Plan

Yesterday we as we DIA product a couple of whipsaws that for a short period looked like the Bears were grabbing control. The Bulls went to work defending prices and closing the SPY, IWM, and the QQQ’s at new record highs for the first ten-day winning streak since 2015. As good as is was to see the Bulls step-up and defend we left behind a hanging man pattern on SPY and QQQ. The pattern is a warning that the Bulls could be running out of fire power but as with many candle patterns, it does require follow-through. However, it does warrant raising caution levels.

Futures were lower during the night, and currently, they are suggesting a slightly lower open. After 10-days up it’s not a surprise that some profit taking ahead of the weekend is likely. The MSFT report was positive on both the top and bottom line, and the stock is currently indication a higher open. Of course, there is always a chance the price could fall below our short strike at $72.50, but we should expect exercise. All that means is that we got paid to sell our position at a much higher price. I will be much more focused on profit taking than new entries today.

[button_2 color=”green” align=”center” href=”https://youtu.be/78Jw__Dc9wA”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug