SPY Is Range Bound Near It’s 23.3 Fibonacci Retracement Line
(SPY) The SPY is range bound near it’s 23.3 Fibonacci retracement line. 4 out of 5 candlesticks closed below the T-Line last week while all 5 of last weeks candlesticks closed above the 23.6% Fib. Line. The Bearish Engulf on the 3-day chart still weighs heavy on the next 2 following candles, they both have closed below $243.50 and the Bearish Engulf 50% line. The Bulls need to challenge and win the $243.50 line to put a new high challenge together.
Free Trade Idea – IPI
IPI (Intrepid Potash Inc.) Was first a members trade idea on May 16, 2017, and as of Friday’s close up 10%. On the monthly chart, I see support above the bottom construction. On a 3-day chart, IPI is An RBB pattern with a Bullish Engulf on the Dotted Deuce.
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.
Conditions For The IPI Trade
- RBB setup 3-day chart
- Bullish Morning Star Daily
- Trending
- Big Three Engulf
- Swing or swings: 30% Plus
From our Members Watchlist
PI is up another 42.97% from our members only post on May 8, 2017; PI popped 7.58% Friday with a breakout, flag, breakout. Know how to get aboard a trending stock is an art that can be learned, something we teach every day in the trading room
Hit and Run Candlesticks Movers – SPY VS Members List Last 7 Bars
- IMGN +33.77%
- CARA +32.30%
- VRX +30.36%
What is a Trade Idea Watchlist?
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.
Just 30 min. of price action spoils the day.
The slight push higher yesterday lifted spirits of traders yesterday, and I can imagine many traders rushed in an attempt to pick a bottom. Slowly they were rocked to sleep by the light volume back and forth afternoon choppy price action. Then in the last thirty minutes of trading, the rug was pulled out from under them. Unfortunately, this is the nature of price action around possible market highs. The discipline to stand aside is tremendously difficult learn. We want all days to be good trading days, but the fact of the matter is they are not. Sometimes doing nothing is the very best trade one can make.
On the Calendar
On Friday’s Economic Calendar we have a two important number to watch. First, at 9:45 AM Eastern we get the PMI Composite number which has been moving higher this year. However, expectations for today it that we see PMI decline. I doubt it will be a big market mover unless the number comes in sharply lower from May’s 52.7 reading. Keep in mind anything above 50 is growth. At 10:00 AM we get the New Home Sales Report which last month declined sharply. Today consensus is suggesting an increase to 590K or better. After that, we have three Fed Speakers needing to pontificate on interest rates.
We get a little rest in the Earnings Calendar today with only six companies reporting quarterly results. BBRY which was on the list yesterday must have needed a little more time to finish their report because it moved to today before the bell. I only bring that up because I know there are several members watching the stock.
Action Plan
After attempting a rally yesterday, the overall market whipped lower in the last 30 minutes of trading wiping out earlier gains. Only the IWM managed to hold on to a positive close. The good news is that the DIA and SPY continued to support before the end of trading. It is wise to remember just how quickly whipsaws can change the perception of the day in a short period. All can appear positive, but minutes later that rosy fragrance suddenly smells like something that came out of the south end of a northbound cow. Ugg!
Futures are currently suggesting a lower open that may bend price support to breaking points if traders start piling on at the open. Of course, the opposite is also possible. Opening lows could set up yet another engineered whipsaw attracting dip buyers. Although the overall trends are still up, I will have to stand aside until I see evidence of buyers moving in before looking for new positions. Friday is profit day so protect those gains by taking them to the bank.
[button_2 color=”green” align=”center” href=”https://youtu.be/6e57XGy5f-0″]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Sellers Were Able To Keep The Ball Below The Upper Bullish T-Line Band
(SPY) The sellers were able to keep the ball below the upper Bullish T-Line Band, and the buyers were able to the ball above the lower Bearish T-Line Band. The short term battle is heating up between the Bulls and Bears with a winner trying to emerge, (we know from experience it’s the short term battles that lead to the longer term win). The Bearish Engulf on the 3-day chart still has the Bull under pursuer for the short term, if the Bearish Engulf can drive price below $242.63 June, 16 low is support for the Bears will have taken a minor point. Overall in the big picture, we remain Bullish
It’s Friday – No Trade Idea
Here at Hit and Run Candlesticks, we feel it’s important to slow things down on Fridays, take profits, reflect on your weeks trading, (winners and losers). How and what can we do to improve.
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.
Topic Charts For Members Yesterday
Why Trade With Hit and Run Candlesticks
VRX is up 60.46% from our members only post on May 2, 2017; and a nice %13.30 move yesterday, we banked ½ the profits.
Hit and Run Candlesticks Movers Yesterday
- VRX 13.30%
- SPWR 13.15%
- SGMO 12.88%
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What is a Trade Idea Watchlist?
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.
A new idea for your evaluation and consideration. I’m thinking longer term on this position so I will be using a weekly chart to manage. However, today on the daily FEYE has produced a Pop out of the box signal but it still under resistance. If the stock moves up we will treat this trade a Fig Leaf trade and begin selling calls against it.
[button_2 color=”blue” align=”center” href=”https://www.screencast.com/t/ZCsGxIs5bVCv”]Trade Sheet Details[/button_2]
[button_2 color=”green” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-sc5e539fddd547c8b”]Trade Alert Video[/button_2]
The SPY Has Been Under A Little Pressure
(SPY) The SPY has been under a little pressure the last few trading days after making an all-time high. The Bulls still have the upper hand as long as they can maintain control of the $241.63 support area. The Bearish Engulf on the 3-day chart is still a problem the Bulls need to confront.
Free Trade Idea – IMGN
IMGN (Immunogen Inc) Was first a members trade idea on Januar 4, 2017 and as of yesterday’s close is up 189.42%. On a 3-day chart, IMGN is headed for the 200-sma, and I believe more.
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.
Conditions For The IMGN Trade
- RBB setup 3-day chart
- Flag PBO
- Bullish J-Hook set up
- T-Line Bounce
- Swing or swings: 30% Plus
Why Trade With Hit and Run Candlesticks
DVAX is up 107.78% from our members only post on March 1, 2017; DVAX popped another 5.65% yesterday with a beautiful T-Line Run.
Hit and Run Candlesticks Movers Yesterday
- IMGN +11.07%
- NVCR 9.72%
- RHT 9.58%
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What is a Trade Idea Watchlist?
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.
Choppy price action slightly favors the Bears.
Yesterday the Bears had a tiny edge as the market moved south with choppy price action. It’s very important on to get lulled to sleep during slow and grinding markets. Big whips remain a strong possibility around index highs. Also, keep in mind that summer price action is often light on volume making it even more challenging to trade. Stay focused on price, stick to your rules and strive for your goals. Everything else is just distracting noise.
On the Calendar
The lite Economic Calendar continues today with the weekly Jobless Claims report at 8:30 AM Eastern. Claims have been tracking lower all year pointing to strong demand for labor. This week the forecasters expect only a tiny bump up from last week but still very low overall. After that, a 10:00 AM we have a Fed speaker and a bucket full of bond announcements that will largely go unnoticed by the market.
On the Earnings Calendar, there are 27 reporting earnings today to be aware of if you are holding or thinking of entering them as new positions. BERY is one that many were watching yesterday that reports after the bell.
Action Plan
DIA, SPY, and IWM all dipped lower yesterday with slow and grinding price action. As of now, I would say no technical damage to the charts has occurred. The VIX, although just slightly higher continues to show no fear of a breakdown and remains near historic lows. The QQQ’s managed to close higher yesterday despite the weakness of its fellow indexes. My guess is the burst of bullishness comes from the positive earnings seen in companies like RHT and ADBE. Keep in mind that the QQQ’s remain under price resistance and still has a lot of work to do if it intends to breakthrough
Futures are pointing to a slightly lower open this morning. I’m expecting that choppy and whippy price action will continue today. If the Bears don’t soon show some strength breaking below supports then start watching for a bounce. I will be looking for new trades, but I continue to plan to keep them small due to the choppy price action.
[button_2 color=”green” align=”center” href=”https://youtu.be/0vNvWePUR4s”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Another day, another reversal.
On the close of Monday, it looked like the market had picked a direction Tuesday delivered another potential reversal signal. This kind of price action is not uncommon at or near market highs, but that doesn’t help us as traders when we continually receive reversal patterns. Ond day everything points to Bulls in control, but before you know it, tide shifts and Bears appear to gain control destroying your confidence and chopping up your account. The only way to avoid this to stop trading but that’s not something most of us want to hear. We want it, and we want it NOW! As for me, I will continue to trade, but I plan to trade less only taking the best fo the best setups. I also intend to trade smaller than normal positions to diminish my overall risk in the event I’m whipped out, by yet another reversal.
On the Calendar
The hump day Economic Calendar has a couple of important reports for the market to chew on this morning. First off at 10:00 AM Eastern time we get the Existing Home Sales number which was disappointing in April. Today the consensus says we should see a rebound to a 5.550 million annualized rate. There some concern that rising home prices might affect this number going forward. At 10:30 AM is the EIA Petroleum Status Report. The number last time continued to show a decrease in overall supply, but it was not enough to stop the decline in oil prices.
On the Earnings Calendar, we have 14 companies expected to report results today. There two big tech companies MU and ORCL that report after the close. Both companies will be important to the QQQ’s index to heal some of the technical damage it has suffered recently.
Action Plan
Yesterday saw light volume choppy price action most of the day. At the end of the day, the Bears gains strength pushing the SPY lower nearly filling the entire gap left behind on Monday. The DIA remained stronger avoiding a bearish engulfing candle by a tiny margin. With the reports from ADBE and FDX coming in strong after the close I was expecting to see the futures in positive territory, but as of now, they are showing slight weakness.
Adding new risk has been difficult as the market chops and whips around. Just when you think the all clear has sounded and we get price action that raises a lot of concerns. I will continue to look for new trades, but until I see this market settle down, I plan to take smaller positions. If I’m not whipped out, I can always add to the trade later. Remember activity does not equal achievement. Trading less or not trading at all during choppy times protects your capital.
[button_2 color=”orange” align=”center” href=”https://youtu.be/IRAnfQbUKqY”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
