Big beautiful bullish candle.

August 30, 2017 by Doug Campbell

Big beautiful bullish candle.

Yesterdays, big beautiful bullish candle, rejected the low with considerable strength. Unfortunately, all of the indexes remained just below resistance, so it was not a game changer just yet. A one day move can be the clue to a directional change but it in no way confirms a rally is at hand. For that to happen, we need a follow though that breaks and holds resistance. We can easily have the morning pop break the resistance level and create a lot of emotion. However, until we see actual buying stepping in to support the breakout and following through then all we had yesterday was a nice move inside a chop zone. I hope this is bullish; I want it to be bullish! Experience and discipline to follow my plan prevent me from chasing hope. Show me follow though, and I will gladly get on board the Bull train. As of right now, price, is still below resistance and a current downtrend continues to exist. Keep that in mind as you plan your day.

On the Calendar

We start off the Economic Calendar with the ADP Employment Report at 8:15 AM Eastern time. The ADP number has missed the mark wildly several times this year. Last month they did call for an increase in the payrolls, but it was still quite short. This month the ADP consensus is again to see an improvement but to 185K. At 8:30 AM we latest read on the GDP. Consensus sees an improvement to 2.8% as the second estimate for the second quarter. The GDP number is also expected to show a slight improvement in consumer spending to 3% which is a good sign for the economy. AT 10:30 we will hear from the EIA Petroleum Status Report. Once again we need to see a decline in supplies if want the oil companies to support the overall market and begin to recover.

The Earnings Calendar has just short of 70 companies reporting earnings today so stay on your toes! Also, keep in mind that we have the big Employment Situation number on Friday morning. It is not abnormal to see the market get choppy with light volume as we wait for that number. Also, keep in mind with the Labor Day just around the corner many of the big guys could begin taking off the Hamptons early for an extended weekend.

Action Plan

Yesterday the markets showed some surprising strength shaking off the concerns of North Korea and jumping into rally mode. All four of the major indexes left behind encouraging bullish candles. As nice as that for to see all they did is move up to challenge resistance levels without actually breaking out. So today it’s all about the follow-through to confirm yesterdays move. A big, beautiful bullish candle with out follow-through below price resistance would turn out as nothing more than a good day within a chop zone. Currently, the futures are pointing to a positive open so let’s hope we do see the Bulls step up and provide a little more confidence in direction.

As for me, and the members of RWO, we are holding some very nice gains in several positions. A continued bullish move would most likely only improve our profits. I will, however, need to see some real buying after the morning pop before I consider adding new positions. If the Bears happened to reassert themselves here at resistance, then I want to be prepared to take some profits off the table. I guess what I’m trying to say is don’t be blinded by yesterdays bullish candle. Look at the overall chart and acknowledge that we are still in a downtrend and below resistance. There is no good reason to speculate if this is the bottom or not. Wait for it to prove and prepare a plan to react once it has proved. That alone will improve your Win/Loss Ratio!

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Trade Wisely,

Doug

Shorting The Blue Ice

August 29, 2017 by Rick Saddler

Shorting The Blue Ice

In tonight’s e-Learning 8-29-2017 we will discuss the current state of the market, and Finding and trading the Blue Ice Short from the 50-SMA to the 200-SMA.

The recipe for a winning trade is to follow your plan and the best tools for you. We feel a few of the best tools are: Price Action, Candlesticks, Support and Resistance, Trend Lines, Chart Patterns.

Thank you, Ed Carter

For taking an idea and making it work. Ed created a PCF scan for TC2000 that I have been using to narrow my search and look for a specific chart pattern. Sorry, it’s not the Golden Goose, you still have to do the work.

►Shorting The Blue Ice – TC2000 Code

This scan looks for a stock that has failed the Blue Ice (50-SMA) with the idea of follow through to the 200-SMA. Note there is a high probability of minor relief rallies.

ABS(XAVGC8 – AVGC200) / XAVGC8 > .10 AND

C > AVGC200 AND

C < AVGC50 AND

C > 10 AND

( (H5 > AVGC50.5) OR

(H4 > AVGC50.4) OR

(H3 > AVGC50.3) OR

(H2 > AVGC50.2) OR

(H1 > AVGC50.1) )

►Shorting The Blue Ice – TOS Code

#Blue Ice Failure

# Written by Rick Saddler

# Converted to TOS by Ed Carter

def XAVGC8 = ExpAverage(close, 8);

def AVGC50 = Average(close, 50);

def AVGC200 = Average(close, 200);

def C = close;

def H = high;

plot BlueIceFail = (

AbsValue(XAVGC8 – AVGC200) / XAVGC8 > .10 and

C > AVGC200 and

C < AVGC50 and

C > 10 and

( (H[5] > AVGC50[5]) or

(H[4] > AVGC50[4]) or

(H[3] > AVGC50[3]) or

(H[2] > AVGC50[2]) or

(H[1] > AVGC50[1] ))

);

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.

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.

MNKD – RBB J-Hook Breakout

August 29, 2017 by Rick Saddler

MNKD – RBB J-Hook Breakout

MNKD has presented us with a double bottom followed by a rally into resistance. Consolidated then broke out and closed over the 200-FWL moving average. I would also like to note the tweezer bottom added a nice punch to the double bottom and the 3-day chart has drawn a Doji continuation pattern.

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 ½ of out JNUG trade yesterday for a 13.

07% gain, and it looks like we are going to make more $$$. AMZN short is still working but nearing a level that may see a bounce, but will it be enough? X is trending the T-Line (nice) price is approaching the 200-FWL line, so consolidation is likely.

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► 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, an

d Resistance.

► Eyes On The Market (SPY)

Yesterday, Monday, August 28, the Bulls found themselves once again in second place. Yesterday’s candle closed below the open and below our trend line and $245.90. With the weak futures, this morning it looks as if we are deep into the Bearish channel. If the Bulls can’t find a reason to become Bullish $239.50 could be tested. Interesting that $239.50 is the 23.6 retracement from the 2016 November low to the 2017 August high.

► 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.

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 let the Bears out?

August 29, 2017 by Doug Campbell

Who let the Bears out?

The market has obviously been showing weakness, and I have been expressing the use of Caution for some time now. So who let the Bears out today? That blame falls right on that puffy little dictator in North Korea by firing a ballistic missile over the top Japan. As luck would have it our shoot from the hip president has been quiet about the subject with no antagonistic Twitter posts. Perhaps he has learned the error of his ways, but it could also have gone quiet as the US plans its military response. Either way, the market hates uncertainty, and this action creates more questions than answers. Be very careful my friends. Expect a major injection in volatility which can create big swings both up and down making a dangerous environment for most traders.

On the Calendar

The Economic Calendar gets going at 9:00 AM Eastern with the S&P Corelogic – Case -Shiller HPI. I think the first thing they need to do is find a new name for this report! LOL. The Consensus for June is to remain strong with an 3% increase, with the year on year number coming in at 5.8. At 10:00 AM we get the Consumer Confidence report which has been beating consensus in recent months. The July number was very strong at 121.1, but forecasters are calling for a pullback to 120.6 in August. The calendar rounds out with a couple more nonconsequential reports and bond auctions.

Today on the Earnings Calendar we have about 50 companies reporting. Make sure you continue checking the companies you hold or are considering for purchase. It’s very easy to forget about earnings this late into the season and get caught in with a nasty surprise. Make checking for earnings a habit of your daily planning as well as you individual trade planning.

Action Plan

Yesterday the morning futures pump by the big boys created yet another pop and drop in the price action right at resistance levels. I hope everyone is beginning to see clues to this type of price action and learning to wait for confirmation rather than chasing the morning pump. Add in the drama that the financial news creates and a trader can easily make poor emotionally based decisions. Take it from a former yo-yo trader that would allow time like this to chop my account to pieces and destroy my confidence.

Today the futures are pointing to a triple digit gap down in the Dow as the market reacts to the actions of the North Korean dictator. Firing a ballistic missile over Japan would seem to prove just how unstable he has become. The market hates uncertainty so we can expect volatility to ramp up making it difficult to trade. Unfortunately, the major index charts are in a position that a sharp sell off only serves to increase the technical damage. It will also reinforce the emerging downtrends with yet another failure at a lower high. The danger of a substantial seems to be growing so plan according and protect your capital.

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Trade Wisley,

Doug

HRB – Bearish “h” Pattern

August 28, 2017 by Rick Saddler

HRB – Bearish “h” Pattern

The Bearish “h” pattern on HRB is causing us to consider this a short trade below $29.65. A few things to consider on the chart: The double top and the Evening Star, the Blue Ice failure and the Bearish “h” Pattern

Good Trading – Hit and Run Candlesticks

►Trade Updates – Hit and Run Candlesticks

Not much change in our trading account, we still have a few longs and a few shorts. Overall we have cut back in our positions to reduce risk; we currently are more into managing what we are in rather than owning anymore. We like it best when the Bull or the Bear is an owner of the market, right now they are wondering them selves.

► TTWO – You would be up 21.88% or $1699.00

If you bought 100 shares when we posted to our members on June 5. 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)

That 34-EMA and 50-SMA is giving the Bulls a bit of trouble, they can seem to step over them. The short-term trend (using the 8-EMA) is below the 34-EMA suggesting the short term Bears are strong and healthy. Bullish over $245.90 and Bearish under $243.65

With yesterday’s inside day Doji close it would seem the buyers and sellers are still at undecided on a Bullish Breakout or to continue the trend down. With the T-Line below the 34-ema, I must give the game to the sellers, and the buyers are fighting like crazy. Price the most important player on the field is still below the major trend line and below the T-Line and the Bulls have not broken the Lower High Lower Low cycle. We are keeping our inverse ETF list handy.

► What is a Trade Idea Watch-list?

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.

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.

Morning Video Only Today

August 28, 2017 by Doug Campbell

Sorry everyone but there will not be a morning blog post today.

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Will Yellen inspire the Bulls or the Bears?

August 25, 2017 by Doug Campbell

Will Yellen inspire the Bulls or the Bears?

The speeches out of the Jackson Hole gathering are always important, but it seems that this year all eyes are focused on the event. Expect a lot of volatility around the Yellen and Draugi speeches. The big question is which team will be inspired, the Bulls or the Bears? As they talk, expect quick price fluctuations in both directions as the market reacts to every syllable they deliver. A direction may be determined today, but the problem is we have no idea which way that will be. Currently, the index charts and the transports are not showing much confidence, but that could change quickly or become much worse as they speak. Be very cautious.

On the Calendar

The Economic Calendar on this last day of the week has a couple of heavy hitters this morning. First up to the plate is the Durable Good Orders at 8:30 AM Eastern. This number has had some volatility with a big 6.5% rise in June followed by a 5.8% decline in July. Underneath all the bumpiness Durable Goods orders have been strong and are expected to stay so for today’s reading. At 10:00 AM we get a speech from the Fed Chair from the Jackson Hole Symposium. Some are suggesting she will deliver a historic speech clearing the way for more rate increases. Others speculate the big speech will come from Mario Draugi around 3:00 PM. Suffice it to say the world is watching and waiting to react to every utterance they deliver.

The Economic Calendar only has about 20 reports expected today. I quickly looked through them and didn’t see any that I would deem as market moving reports. However, it is still very important for everyone to stay on your toes checking for reporting dates of those you own or are thinking of adding to your portfolio.

Action Plan

Yesterday I warned of the possible pop and in the morning and unfortunately, this is exactly how it played out. Please understand that was not a prediction but merely an observation of the price action that gave me the clues. After the initial volatility, the market became very choppily and flat. If I were to venture a guess why; it would be because everyone is waiting for the Yellen Speech at 10:00 AM eastern today.

With so my eyes on these speeches and so much speculation as to what they may or may not say we should expect some considerable volatility as they begin to speak. Don’t be surprised to big reactions whipsaw price action as the market reacts to every utterance. The good news is the stalemate between the Bulls and Bears could end today. The bad news is we have no idea which team will come out the winner. Be very cautious!

As normal I will be much more focused on taking profits ahead of the weekend than looking for new trades. However, if by chance a direction is made clear, I will be prepared to act. Over all the index charts currently do not look very healthy so once again I will say be very cautious.

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Trade Wisely,

Doug