Finding and Trading Pullbacks August 8, 2017

August 9, 2017 by Rick Saddler

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The Bears re-emerged onto the field of battle.

August 9, 2017 by Doug Campbell

The Bears re-emerged onto the field of battle.

Over the last 2-weeks, the Bulls have dominated the market battle to such an extent it was easy to forget the Bears were even there. Yesterday the Bears re-emerged demonstrating they still have teeth. I hope you were watching and prepared. As of now, this is nothing more than a healthy pullback and the overall uptrend is still in tact however it’s time to raise your caution levels, modify or even restrict your market activity depending on your experience level. Expect additional volatility in the days ahead.

On the Calendar

The hump day Economic Calendar begins with Productivity and Costs at 8:30 AM Eastern. Forecasters see nonfarm productivity rising 0.8% and unit labor costs dipping to 1.3% vs. the first quarter’s point of 2.2%. At 10:00 AM we get the most important number of the day, the EIA Petroleum Status Report. Oil companies continue having trouble finding their footing even though supplies are declining. If we were to get a surprise build in supplies, we could see the market to react negatively. At 1:00 PM we will hear from a Fed Speaker.

We have just short of 350 companies on the Earnings Calendar reporting today. The bell weather DIS reported after the close yesterday beating consensus but disappointing investors after the announcement of pulling their content from NFLX. The company has decided to begin their own streaming service. The stock dropped more than 3% on the news. Their ESPN unit continues to decline muting the companies overall all performance.

Action Plan

After a sharp rally early in the day yesterday day the DIA reached an exhaustion point profit takers gained the upper hand. As the DIA began to tumble, all the indexes started giving back gains as I had feared. The DIA, SPY and QQQ’s left behind shooting star candle patterns. This pattern is considered bearish and carries much more weight when found at price highs. However, like most candle patterns the shooting star requires a price to follow-through to the downside to be truly valid. Currently, the futures are pointing a gap open giving us that follow-through initially but the Bulls may have something to say about that before the day is over.

Saber rattling with North Korea continues to intensify. The market hates uncertainty, and the situation with North Korea certainly raises that bar. Another battle in Congress over the debt ceiling is another matter that easily could add to uncertainty levels depending on the games they play this time around. After such a strong rally these uncertain items could make it challenging for the Bulls to maintain the rally. At a minimum, I would expect a bit more volatility in the days ahead. Fast intraday moves could be possible as we try to sort out the details. Yesterday I reduced my risk and added in some index puts to hedge the possible risk. Please keep in mind that the sky is not falling. A pullback is natural, needed to confirm support levels, and what a healthy market does! At this point, there is no need to panic.

[button_2 color=”green” align=”center” href=”https://youtu.be/Vl2gBoeSykI”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

Caution And Minimizing Risk

August 9, 2017 by Rick Saddler

Caution And Minimizing Risk

Having caution and minimizing risk plays a very important role in trading. I have found that most traders can make money but holding on to it is challenging. There are 3 words I put into yesterday blog in the “Eyes On The Market” section “Caution Caution Caution.” Our goal is for us all to make money and to minimize risk, Knowing there are days to trade and days when you should not is just as important as making money. By not having a featured trade idea today I am following our rules to minimize risk. We feel the risk is too high today based on yesterday’s price action.

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

Yesterday we took on a couple short positions and dropped a few longs to minimize risk and exposure in the market. Our TVIX and SQQQ we have help are starting to pay; I look forward to the profits on these two.

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.

[32.38% WTW was first presented to HRC members on July 10,

WTW moved another 6.63% yesterday, The total run now is 32.38% Hit and Run Candlesticks members practice trade management and trade planning with Price and Candlesticks, The T-line, Trend, Trend Lines, Support, and Resistance.

Eyes On The Market (SPY)

The SPY printed a long wick in its candle suggesting the bulls are not ready to move higher and are in need of a pullback, this is not too surprising when you consider yesterday’s news about South Korea. We have been pretty vocal about how IWM has looked sick, and the QQQ’s are forming a nasty looking top. The DIA is simply suffocating with no air. OVER all the bulls still have control of the longer trend but all trending charts need a rest period. It is important that support holds over the next few days.

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

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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.

OPHT Bullish Scoop Pattern

August 8, 2017 by Rick Saddler

OPHT Bullish Scoop Pattern

(Ophthothech Corp) OPHT has painted a Bullish Scoop pattern that we can trade in a Rounded Bottom Breakout Strategy. The 3-day chart printed a Bullish Morning Star signal on a higher low. Looking at the 2 and 3-day chart you can see a possible Bullish W pattern on bullish follow through.Having a trading plan has an advantage.

Good Trading – Hit and Run Candlesticks

Trade Updates – Hit and Run Candlesticks

Double Digits trades make all the difference in the world – yesterday when the market closed we had 3 in play and 10 trades in the green warming up. We bought FB yesterday and posted targets in the trading room

[29.96%] GRUB was first presented to HRC members on May 30

GRUB moved another 8.25% yesterday, The total run now is 29.96% Hit and Run Candlesticks members practice trade management and trade planning with Price and Candlesticks, The T-line, Trend, Trend Lines, Support, and Resistance.

Eyes On The Market (SPY)

The SPY closed above the T-Line yesterday, this makes 21 days in a T-Line Run, but we have yet to close above the recent high. The QQQ’s are still being held captive by the Bearish Engulf on 7.27, IWM is just ugly, and the DIA is getting up into thin air. Caution Caution Caution I think it’s time Hit and Run Candlesticks create a watchlist of short candidates, so we are prepared when we need them.

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.

Nine straight days of record highs in Dow.

August 8, 2017 by Doug Campbell

Nine straight days of record highs in Dow.

Who doesn’t love a strong Bull? Yesterday marked the 9^th straight all time record highs in the Dow. The question is how long can this last? Your guess is as good as mine, but we should prepare for the fact it could end at any time. Please understand I am not saying a selloff is about to begin or even suggest bearishness. The overall trend is still up and very strong, and there is nothing in charts right now to suggest that is about to change. I am only warning about the dangers of complacency. When the market is extremely bullish, it’s easy to forget that danger could be lurking just around the corner. Continue to trade long and stay long until something changes but always be prepared with a plan to protect yourself.

On the Calendar

Another very light day on the Economic Calendar today. The only thing of note is the JOLTS report at 10:00 AM Eastern. JOLTS tracks job openings which moved lower on the last reading to 5.666 million. Forecasters for this month expect further declines in job openings for a reading near 5.6 million today. We have a couple of bond auction today but pretty much wraps up the calendar today. Even the Fed Speakers have the day off today opposite every other day this week.

On the Earnings Calendar, there are nearly 400 companies reporting today. DIS is considered a bellwether by many market watchers, so it can be a market moving event when the company reports after the bell today. Lately, the company has seen declines in subscriptions mostly from its ESPN holdings. Estimates have placed an earnings target of $1.57 a share target for them today.

Action Plan

Nine days straight up on the DIA with the last six gapping to new highs that have been thus far defended by the Bulls. How much longer this can continue is anyone’s guess, but we should not be surprised to see a pullback or a consolidation begin at any time. Yesterday the DIA was finally able to inspire the SPY to participate closing at a new record high. The QQQ’s also moved higher yesterday but fell short of breaking out and remains under price resistance. IWM continues to struggle and remains not only under resistance but also under the broken trend. For the first time in over a week, the Dow Futures currently suggesting a flat to slightly lower open today.

I plan to remain slightly cautious this morning and will likely allow 20 to 30 minutes to pass focusing on price action before making any new trade decisions. I will be watching to see if the Bulls will continue to support current levels with additional buying or if profit taking will finally begin. Although I believe the DIA, in the short-term, appears overextended, there is currently nothing in the charts indicating that will change. That fact, however, doesn’t give me the right to be complacent and ignore the possibility that selling could at any time begin. As a result, I must have a plan to protect gains as well as my trading capital to avoid emotional decision making in the heat of the moment.

[button_2 color=”green” align=”center” href=”https://youtu.be/lCo35HaCNxs”]Morning Market Prep Video[/button_2]

Trade Wisely,

Doug

E-Learning – Building a portfolio with ETF’s

August 7, 2017 by Doug Campbell

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E-Learning – Building A Portfolio With ETF’s & Options

$TSCO Bullish Morning Star Pullback

August 7, 2017 by Rick Saddler

$TSCO Bullish Morning Star Pullback

(Tractor Supply) TSCO has printed a Bullish Morning Star Pullback after a strong relief rally. The Rounded Bottom Breakout along with the Bullish price action we are looking for another push in the relief rally.

Good Trading – Hit and Run Candlesticks

Trade Updates – Hit and Run Candlesticks

We will head into this weeks trading with 16 positions we are managing. $RIG is one we bought last week and holding well in a Rounded Bottom Breakout Pattern, Not the Bullish Flag breakout. $TLRD in another Flag pull back closing Friday with a Bullish Engulf. (Watch the retail earnings this week) $CC is a T-Line Run with a Box ready to pop out.

[110.78$%] SEDG was first presented to HRC members on February 14

SEDG moved another 2.72% Friday, The total run now is 110.78% Hit, and Run Candlesticks members have learned the importance of their trading tools, Price with Candlesticks and manage their trades using The T-line, Trend, Trend Lines, Support, and Resistance.

Eyes On The Market (SPY)

The SPY closed above the T-Line last week keeping the Bulls ahead of the Bears. Below $245.70 would put the SPY in in a pullback that could see $240.00. The trend is a powerful friend. Be willing to cut a friend lose when you need to. CAUTION… if the trend changes be ready to change with it.

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.