Bullish Morning Star Pattern Pulled Back To Support
Free Trade Idea – DEPO
DEPO – Has now formed a Bullish Morning Star Pattern after a 17 percent run followed by bullish consolidation testing and holding above support. The double bottom and Belt Hold after a seven-month decline may be the start of a reversing base. DEPO is a Rounbed Bottom Breakout -RBB possible set for a swing or two. Members of Hit and Run Candlesticks also have 11 other trade ideas we cover live each morning starting at 9:10 EST.
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.
Eyes On The Market
The overall market is mixed DIA’s, IWM above the T-Line, SPY, and QQQs below the T-Line. Take a look at each chart to determine the trend that meets your needs. The weekly chart has the QQQs below the T-Line.
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.
Beware Price Gaps Below Resistance.
It is always wise to beware price gaps. When they occur below resistance levels after a significant selloff, I want to focus on the price action and avoid the emotion a gap can create. The fact that the market closes early today and will likely lack volume makes we want to avoid it all together. Do as you like, but as for me, I will be standing aside. NYSE closes at 1 PM today, and Tuesday the market is closed so plan accordingly.
On the Calendar
The Economic Calendar begins the first trading day in July with the PMI Manufacturing numbers at 9:45 AM Eastern. Last month PMI slowed to 52.1, and consensus suggests it will remain steady for June. At 10:00 AM we get the most important report of the day, the ISM Manufacturing Index. Earlier this year ISM peaked at 57, but forecasters are calling for a 55.1 print in June which is a slight improvement over May. Construction Spending is also at 10:00 AM today which is expected to show improvement with a 0.5% gain.
There are nine companies expected to report earnings today. I don’t expect any of them to be market-moving reports. Keep in mind that today marks the first trading day of the 3rd quarter. That means we will soon be right back into earnings season. Make it a habit of checking for earnings reports on every position you are in and every new trade you are considering. Failing to do so can be a costly mistake.
Action Plan
Friday saw nice relief rally, but by the end of the trading day much it was given back with a quick move lower. As expected, most of the day saw very choppy price action. Futures are currently pointing sharply higher suggesting a gap of nearly 70 points at the moment. Let’s keep in mind that today is only a partial day of trading. The big gap open will most likely meet with light volume trading after the morning rush. It would also be wise to notice that all the major indexes will still be below resistance levels.
As for me, I plan to do no trading at all. If I were planning to add risk today, there is not a chance that I would chase the gap up open. I would give it at least 30 minutes trading and make sure that real buyers step in to support the gap. Remember gap up opens into resistance levels are subject to whipsaw price action. Chase in and you could find yourself buying at the highest price of the day entire day.
[button_2 color=”green” align=”center” href=”https://youtu.be/JL06dybeZFA”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Trading The Pinball Strategy
Public Education
The topic for this educational webinar was the Pinball strategy. The Pinball Strategy was the trading strategy that changed everything for Rick. Part time hobby to trading for a living. To watch the replay click the replay button.
[button_2 color=”light-green” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-sa97a1d0308f44c58″ new_window=”Y”]Trading the Pinball Strategy[/button_2]
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
Friday’s Harami Had No Impact
Friday’s Harami had no impact on the current trend. Once again the SPY on tested and held support while the short term sellers keep trying to turn this ship into the hazardous water. With the oceans, lakes, and rivers capturing investors and traders today’s trading is not like to tell a complete story. Today the market closes early at 1 PM Eastern; we are not likely to see a huge change in the overall market.
We will check our positions a couple times today and poke around with very little chance we buy anything new until later this week. Please enjoy your 4th of July Holiday.
The trading room is open today, July 3, 2017 and we invite everyone to stop by and say hi.
We have opened the trading room to the public for today. (July 3, 2017)
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High Volatility and Challenging Summer Trading Likely Lies Ahead
Yesterday likely marked the beginning of challenging summer trading with high volatility tossed in for goo measure. As a general, rule summer markets are difficult to trade with lots of choppy price action. As it turns out, summer seems to have come late this year dispelling the old saying, sell in May and stay away. The other challenge we could face is that the market may be a significant market high. A correction that many would say is way overdue. Let’s avoid all the predicting and just focus on price action because the clues will be there if we are unbiased. Also, remember that a market pullback is not a personal attack on you so don’t fight it. Think of a correction as a Mega Sale at your favorite store where we could get the chance of getting much better deals on quality products.
On the Calendar
The last trading day in June the Economic Calendar only has three items of concern. We start off at 8:30 AM Eastern with the biggest number of the day, Personal Income, and Outlays. The consumer is expected to slow down in May as is the personal income however consensus suggests that food and energy will rise. Thus, the overall number is expected to come in unchanged at 1.5%. At 9:45 we get a reading on the Chicago PMI which has been steadily increasing the last four months to 59.4 but the forecast for today indicates a pullback to 58.2. Last but not least we get a reading on Consumer Sentiment at 10:00 AM which fell back 2.6 points in May to 94.5. Consensus suggests it will hold stable at that number for June.
The Earnings Calendar is giving us a break today with only two companies reporting, EROS and OSN. A big winner after the bell yesterday was NKE. It will be nice if this old friend of mine gets back in a trend because it has proved to be an excellent money maker in the past.
Action Plan
Yesterday was an ugly day for the market breaking support levels and creating significant technical damage to the index charts. The end of day rally was a sweet relief and with the futures pointing to a gap up open some of the bearish pressure will be released. Just remember V-bottoms are rare and we should expect yesterday’s lows to see a retest in the near future. We will now have to tune into possible failure patterns at or near resistance.
Today my plan is to take the day off! We can expect after the morning rush to see volumes drop off quickly as may traders will be starting the 4th of July Holiday early. I will also not be trading on Monday. Tuesday the market is closed, but I will be back in the saddle Wednesday morning rested and ready for the challenges of summer trading.
[button_2 color=”green” align=”center” href=”https://youtu.be/pm51t3TqnBQ”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Support And The 50-Day Simple Moving Average
The SPY was protected by the support and the 50-Day simple moving average when price slipped through, and the Bulls caught it before a full out runaway. Never the less we still have lower highs and lower lows for about the past 2 weeks. I see support in the $240.40 area followed by the $237.60 area. Resistance is the $242.75 area.
Closed Positions
IMFN ½ for a +18.71%
UVXY ½ for a +24.06%
Free Trade Idea – No Free Trade Idea Today
For members, we do have 13 trade ideas that we will cover from our members master list between 9:10 Est. to market open.
From our Members Watch-list
SCSS is up 17.88% from our members only post on June 2; The Bulls moved it 11.32% yesterday.
Hit and Run Candlesticks Trade Ideas -vs.- SPY Last 7 Bars
- HTZ +31.26%
- CARA + 30.82%
- VRX +26.54%
- SPWR + 23.57%
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.
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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.
Bullish Follow-through is vital.
With the surprising strong move yesterday that it is vital we see some bullish follow-through price action today. There is no question the market as of late has proved it is capable of producing big whips in price, but the ability to follow-through is an important element the market has lacked the energy to do. Will today be different? Only time will tell. Another big question to ponder is how much risk are you willing to take with holiday trading likely to begin tomorrow. As for me I plan to trade smaller than normal positions and will take profits quickly if I do decide to step onto the playing field.
On the Calendar
Thursday begins with a significant number on the Economic Calendar. At 8:30 AM Eastern we get a reading on the 1st quarter GDP. If there is one number this week with the power to make a break the market, it would be the GDP number. Forecasters expect the number to come in unchanged at 2.2%. The question is can the market support these record high prices if the GDP continues show par growth in the economy? Also at 8:30 we will get the Weekly Jobless Claims which are at historic lows and consensus suggests this week’s reading will not change this bullish number.
Other than that, we have a Fed speaker at 1:00 PM and several non-market moving events to round out the day. On the Earnings Calendar, we have 35 companies reporting today such as AOBC, RAD, NKE, MU and CAG just to name a few members should be aware of as they plan the day.
Action Plan
Yesterday was a surprising whip back up on the back of easy money policy in Europe. The VIX is once again testing historical lows and raising the concern of complacency. The SPY is now right back in the narrow range chop zone where it has proved to be very difficult to trade due to the multiple reversal signals it has produced. The DIA and the IWM are looking strong yet still closed under high resistance. The QQQ’s had an impressive day holding support, but the overall the index remains in a downtrend and price is still below resistance.
As you plan the day keep in mind end of quarter window dressing could still be in play. We must also consider the 4th of July holiday on Tuesday and the effect that will likely have on volume moving forward. I would expect Friday and Monday to very light and choppy trading days so plan your risk accordingly. Friday and Monday I have decided that I will be taking off to enjoy my family during the holiday. Of course, I will continue to write the morning note and produce a morning video but other than that plan to be gone. Consequently, the RWO session for Friday and Monday has been canceled. With the market closed on Tuesday well will get back to work with regular schedules on Wednesday morning.
[button_2 color=”green” align=”center” href=”https://youtu.be/VAIF2kaZy8g”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
