Slow yet constructive price action.
The market was a bit slow yesterday, but I saw as very constructive price action. While it’s true the indexes chopped in a rather small range yesterday, it seemed only to be resting after the rally. Perhaps both the Bulls and Bears are just pausing ahead of big earnings reports to give them some directional inspiration. Whatever the case may be, it is our job as traders, to maintain discipline. Avoid the emotional drama of the season. Focus on the price action react by following it rather than trying to predict it.
On the Calendar
Tuesdays Economic Calendar has three importing reports, but they are unlikely to move the market unless they come in with a big surprise. At 8:30 AM Eastern we have Import Export Prices. Follow by the Housing Market Index and Treasury International Capital at 10:00 AM and 4:00 PM respectively. Import Export number is expected to decline by 0.2% in largely on the back of low energy prices. The future housing sales expectations are expected to remain strong. Forecasters see it ticking higher this month from 67 to 68 on the Housing Market Index. The Treasury International Capital number tracks foreign demand for Long-Term Us securities. It normally fluctuates with the strength of the U.S Dollar.
On the Earnings Calendar, we have 45 companies reporting today. Noteworthy reports will form GS, BAC, JNJ, and PGR before the market opens. IBM which has been under a lot of selling pressure since Buffett lost confidence in the company reports after the bell today.
Action Plan
Although yesterday was a pretty slow day with the market taking a bit of rest, it was still very constructive day. Price action was somewhat choppy, but Bulls maintained their position of control. The QQQ’s is the only index showing stress leaving behind a Shooting Star Pattern right a price resistance. IWM once again threatened a breakout pushing hard against resistance, but once again it proved to be too strong preventing a breakout.
As I write this, futures are slightly higher, but the direction of the market will be directly impacted by big earnings reports this morning. The truth is anything is possible, so it’s important to remain flexible and set aside personal biases. Don’t predict just follow the price action as it presents itself. There are a lot of good charts showing bullish setups this morning. However, I want to avoid the drama of the open and will likely allow 15 to 30 minutes of price action to occur before making any new trade decisions today.
[button_2 color=”green” align=”center” href=”https://youtu.be/sZF6nQODcuE”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
VSTM Is Pulling Back To Our T-Line
(Verastem Inc) $VSTM is pulling back to our T-Line, and the V Stop support dots on lower volume. $VSTM broke out a few days ago (3-day chart a flag breakout)and now set up for a possible buy signal; we have VSTM on our trade watch-list for an entry and swing trade.
Learn more about Hit and Run Candlesticks, and today’s trade idea 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.
We are still holding IPI +20.08 ARDX +21.59%
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,
Now up 15% with a 5% run yesterday The Rounded Bottom Breakout pattern target direction is the 200-sma and leads to a breakout of the 200-sma a great many times. AGEN is now in a continuation pattern with the 200-sma supporting the move.
Eyes On The Market
After 3 Bullish bars, the doji yesterday is signaling a day of rest. The overall market is still signaling the bulls have control. The 3-Day chart on the SPY is showing a Bullish Engulf Flag Breakout with following through – Bullish pattern
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.
The Bulls chalk up two more record highs.
Last Friday a stampede of Bulls managed two more record highs to add their impressive collection of records this year. As great as that is, please keep in mind both the DIA and the SPY must still prove that the broken resistance will serve as support if tested. I suspect as 3rd quarter earnings ramp up there will more volatility in price action ahead, both bullish and bearish. With the VIX only pennies away from new record lows it would be wise to remember very fast price reversals are not out of the question. Every trade needs a plan that includes exit strategy before entering new positions.
On the Calendar
Other than some bond settlements. Announcements and auctions there is only one report of significance on the Economic Calendar today. The Empire State Mfg Survey comes out at 8:30 AM Eastern Time. Last month the number came in very strong with a reading of 19.8 indicating confidence in manufacturing growth for the next six months. Forecaster saw this was an anomaly and expect the number to come in around 15.0 for July, which is still very strong.
There are 24 companies reporting today with the biggest name being YHOO coming after the bell. With the recent weakness in the NASDAQ, I would expect the YHOO report heavily focused on by the market. It could be an interesting one to watch at the end of the day. Please make sure you are checking earnings report date on everything you own and everything you buy as part of your trade planning.
Action Plan
Friday was a very good day for the Bulls. Not only did they manage to push the DIA into new record high territory but managed to break resistance on the SPY setting yet another record. The IWM tested resistance but shrank away from it before the close, and the QQQ’s managed it’s 6th day up to challenge resistance levels.
Currently, futures are pointing to a higher to a slightly open this morning. It would be nice to see the market continue on the bull run but after such a strong day on Friday, a rest or slight pullback would not be out of the question as well. With that in mind, I will be looking for new long trades today. However, I will likely give the market about 30 minutes after the open before making any decisions. Of course, as always, the first order of business will be to manage current positions.
[button_2 color=”light-green” align=”center” href=”https://youtu.be/CCu7BsvxGOE”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
UEC Broke Out With A T-Line Run
(Uranium Energy Corp) $UEC broke out with a T-Line Run and finished Friday with a Bullish Morning Star. Step back, and you can see a Bullish Inverted Head and Shoulder in the chart. Using the 3-day chart, you can see a Bullish Cup and Handle. UES could be set up to challenge the 2015 High’s
Learn more about Hit and Run Candlesticks, and today’s trade idea 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.
Our 3 biggest holdings are IPI and ARDX and HIIQ
Education on how to manage a trade from start is key yo Swing Trading wealth.
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.
$OZM was first presented to HRC members on June 5,
Now up 28.10% with a run of 8.39% Friday. Many of our members are being rewarded for there for their education and understanding of how a trade is managed. Great Job!!
Eyes On The Market
The SPY had .47% day which was enough to close at a new high $245.56; the Bulls have had a fun few days with the gap and 3 days of follow through.
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.
Third Quarter Earnings craziness begins today!
With the beginning of the third quarter earnings today I’m hopeful we will finally shake lose from the choppy range bound price action of late. Please, please make a habit of checking current holdings and possible new trades for earnings reports. Getting caught by surprise is not acceptable for professional traders. I think this round of earnings will be very important. We have had an amazingly bullish market since the presidential election. It will now be up to the companies to prove with their results that current high prices of the market are justified by earnings results. Stay on your toes there are likely volatile days ahead.
On the Calendar
We kick off the Calendar with big reports this Friday morning. First the Consumer Price Index at 8:30 AM Eastern followed immediately by the Retail Sales report. Shortly after at 9:15 is the Industrial Production report. We have a Fed Speaker at 9:30 than the less important Business Inventories and Consumer Sentiment report. Consensus expects a 0.1% gain in the CPI, Retail Sales a weak 0.1% gain and a solid showing in Industrial Production of 0.2% increase. The Business Inventories are expected to grow 0.3% while Consumer Sentiment should remain but strong but decline slightly.
We get a running start on the 3rd quarter Earnings Calendar today with reports from C and JPM before the bell. How the big bank’s report will likely have a major effect on how the market open today. Over all, there are 14 companies reporting earnings today.
Action Plan
Yesterday price action was just what the doctor ordered with the Bulls stepping up to the plate and following through on Wednesday’s strong performance. Although the price action was bullish, the SPY, IWM and QQQ’s continue to overhead resistance yet to deal with so don’t sound the All Clear signal just yet.
With so much big data coming out before the market opening today anything is possible, so we will have to think on our feet. Currently, the futures are flat as the market waits for the deluge of news. As a result, I will need to remain flexible and closely focus on the price action at the open before making decisions on new positions. Of course, the first order of business is to manage current positions. Friday, as you know, is normally the day I look to bank some profits rather than entering new trades. However, with the overall market showing signs of shaking off the range bound chop, I will not rule out new trades today.
[button_2 align=”center” href=”https://youtu.be/iGUt1IGhp9w”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
The market was a bit slow yesterday, but I saw as very constructive price action. While it’s true the indexes chopped in a rather small range yesterday, it seemed only to be resting after the rally. Perhaps both the Bulls and Bears are just pausing ahead of big earnings reports to give them some directional inspiration. Whatever the case may be, it is our job as traders, to maintain discipline. Avoid the emotional drama of the season. Focus on the price action react by following it rather than trying to predict it.
