In the Past 7 Trading Days 7 Higher Lows
(SPY) – A Bullish T-Line Run and in the past 7 trading days 7 higher lows. Despite the Bearish resistance the Bull has managed to break through. The Harami candle printed on Friday may be suggesting the SPY needs a little rest and test.
Hit and Run Candlesticks overall plan are to remain bullish until we see a Candle Signal or a chart pattern breakdown. We often look at the 2 and three-day charts to peel off a little noise. On the three-day chart, we see a Bullish Engulf, double bottom, Bullish Morning Star, and a Bullish Harami. W hope that helps.
FREE TRADE IDEA – IMMU
IMMU gapped out of a Bullish “W” pattern, then broke out of the March highs on a Bullish Engulf. Consolidated as it ran the T-Line. Start your membership
VEEV is up 27.28% from out members only post on April 21, 2017. What a great T-Line Run!
100 shares of VEEV was worth $1432 Friday – Learn the T-Line from the creator of the T-Line.
With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your education. Start small and learn
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What is a Trade Idea Watch List?
A trade idea watch list 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.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not 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 advise to anyone except for the trading desk of Hit and Run Candlesticks Inc.
Preparation and discipline are vital at market highs.
I believe preparation and discipline are integral to a trader’s success. As the market entertains new record highs, thoughtful preparation, and the discipline to stick to a plan become vital. Those who choose only to view the market through rose colored glasses will miss important price action clues. Traders that only see gloom and doom are equally incorrect as they will fail to take action when the possibility of gains present themselves.
To be successful, a trader must set aside personal biases and realize that anything is possible. At or near market highs it is necessary to plan for and have the willingness to see the potential of price failures. It’s equally important to visualize the potential of bullish clues and have plans to capitalize on them if they occur. What we think should happen or attempting to predict what will happen next waste time and cloud the trader’s ability to plan objectively.
On the Calendar
The last Friday in May starts with two very important reports on the Economic Calendar. At 8:30 AM Eastern both Durable Goods Orders and GDP reports are released. At 10:00 AM the less impactful Consumer Sentiment numbers roll out. Durable Goods has been holding up quite well but today Wall Street number crunchers say we should expect a negative number today.
Of course, the GDP number is the biggy of the day and has the ability to move the market. The overall GDP number is expected to remain at 2.3 as a result of very weak consumer spending. There are only 14 companies on the Earnings Calendar today, and none of them should be very impactful to the overall market.
Action Plan
Friday is profit day, and ahead of a three-day weekend, it becomes even more important. In anticipation, I have been taking profits and trimming exposure to the market all week. There are several however that I plan to carry through the weekend unless something major changes today. Another factor to consider is that price support of the breakout still needs to be tested.
I will remain cautious until price action confirms support with buyers actively buying at this level. Obviously, if support happens to fail and the Bears would likely be emboldened to take control. I for one want to keep a very watchful eye on price action, and I plan to do so largely from the sideline to protect my capital. I won’t completely rule out adding new positions today, but it’s highly unlikely.
Trade Wisely, and have a fantastic weekend!
[button_2 color=”green” align=”center” href=”https://youtu.be/VryEcgUfPMc”]Morning Market Prep Video[/button_2]
Doug
S&P500 Closing at A New High
(SPY) – The Trend is your friend is a common trader catchphrase, and with the S&P500 closing at a new high the trend is your defiantly friend. With price rising above the T-Line and above the upper T-Line Band, power is in the buyer’s favor for now. Looking at 3-day chart on the SPY it shows a double bottom Morning Star mid-April followed by a Bullish Harami with follow through. We would be concerned if the SPY fell below $239.00
Free Trade Idea – SPWR
SPWR printed a Bullish Cradle pattern early April and had been trending up ever since. Price has now closed back above the 200-SMA. SPWR could be searching for a path to about $14.00. The 2 and 3-day charts are RBB chart patterns. Set your trading plan, you do not have a trading plan – If you need or need help with a trading plan, we are here to help.
With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your education. Start small and learn
Did You Get Your Share of The 77.65%?
EXTR closed yesterday up 77.65% from the January 9th post we made to our subscribers. Take a look at the Bullish T-Line Run on the 3-Day Chart. Did you get your slice of the pie?
500 shares of EXTR was worth $2050 yesterday – Learn the T-Line from the creator of the T-Line.
Planned Membership Topics For The Summer Months
- How to find the money charts
- How to enter the money charts
- How to protect for money with low risk
- How to manage the trade
- How to create profits every week
- The RBB pattern
- The Pop Out of The Box Pattern
- Using Volatility Stops for more profits.
- Continuation patterns
- Trends
- Support and Resistance
- Planning a trade for success
- Understanding Price Action
- Recorded for you to keep
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What is a Trade Idea Watch List?
A trade idea watch list 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.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not 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 advise to anyone except for the trading desk of Hit and Run Candlesticks Inc.
Gapping, to new record highs. Bulls are large in charge.
With the market gapping to new record highs we have applauded the Bulls. An impressive performance that was certainly not expecting. Now the bigger question has to be answered. Can the hold the new highs or could this be a beautiful head fake? Only time will tell, and I am only too happy to wait on the sideline for the answer. If they do hold, I will be ready to buy with both hands after the long weekend. I may regret waiting, but I will have a worry free 3-day weekend. What will you choose?
On the Calendar
Frist off the Economic Calendar docket this morning m is International Trade Goods at 8:30 AM Eastern. The trade deficit has been getting slightly wider over the last couple reports but not so much to have caused much of problem in the overall economy. Even so, we don’t want this to become a trend. Also at 8:30 we get the latest reading on the Jobless Claims which has been pointing to a growing demand for workers. A low number shows a strengthing economy but can also suggest that inflation it on the rise providing cover to the FOMC for more rate increases. I know it’s a bug surprise, but there will also be a couple of Fed speakers today!
On the Earnings Calendar, we have 72 companies reporting today. Rental reports are heavy on the list today with ANF, BBY, BURL, COST, DECK, DLTR just to name a few. This sector has seen some significant challenges this quarter so let’s hope these companies report strong results.
Action Plan
Futures are pointing to big gap up this morning allowing not only the Q’s to make new record highs but also the SPY. The DIA and the IWM lag behind but should also show a very strong open today. A perfect V-formation is very rare in the market, but that is what we see right now in the charts. I can point to nothing other than the possible increase in inflation to explain this rally. All the uncertainty that created the selloff still exists. However, it is not our job to understand the why? Leave that to the talking heads. As traders, our job is to follow!
Unfortunately, this breakout is occurring directly ahead of a 3-day weekend. Because of that, my plan remains the same. I will not chase this move into a long weekend. I will continue to collect my gains as per my rules and manage the trades I continue to hold. I will be flush with cash next Tuesday and ready to buy if the market can hold this new level.
[button_2 color=”green” align=”center” href=”https://youtu.be/5-32nAPCT0k”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Doji Close In The Resistance Zone
(SPY) – Yesterday was the fourth day for higher closes in the SPY and yesterday’s close was a Doji close in the resistance zone of recent highs. Traders around the world are wondering if the Bulls can push price out of the nearly 5-month channel.
On the daily chart yesterday’s Doji closed above the T-Line and the upper T-Line Band, the 30-minuite chart is showing a slight pull back into the caution zone of the band and a huge warning below $239.70
Free Trade Idea – SGMO
SGMO Has been trending up and broke out on May 11, 2017. Since the breakout SGMO has consolidated holding its ground at the T-Line and above the band. Yesterday’s Bullish Engulf coming off volatility support could be the clue we need to put a plan in place.
Plan your trade and trade your plan, how many times have you heard this?
Did You Know
IAC closed yesterday up 36% from the April 5th post we made to our subscribers? Did you get your slice of the pie?
100 shares on IAC was worth $2750 yesterday
With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your education. Start small and learn
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What is a Trade Idea Watch List?
A trade idea watch list 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.
Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is not 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 advise to anyone except for the trading desk of Hit and Run Candlesticks Inc.
Bullishness or complacency. You decide.
Do you believe the market is truly bullish or is this complacency? The Bulls have done a remarkable job in this rally but do they have the energy to break through resistance? The VIX suggests there is virtually no fear in this market. Could it be complacency? If I knew the answer to that, I would soon be very rich! Sadly I’m not able to see a future outcome. Thus I have to be prepared for anything. We have a three day weekend ahead of us, and in my opinion, uncertainty abounds. Have a plan. Don’t be like sheep, blindly strolling into danger just because others might be doing so. My recommendation is to be very cautious right now.
On the Calendar
Wednesday’s Economic Calendar starts off with Existing Home Sales at 10:00 AM Eastern. Home prices have been rising and days on the market have been falling this year. The numbers would suggest the economy is strong but also hints of inflationary factors heating up. At 10:30 we have the Petroleum Status Report. Efforts to lower supplies seem to have finally started to work, however, if there is an increase we can expect a negative market effect.
The big news of the day will be the FOMC minutes at 2:00 PM. With Fed members speaking almost every day I can’t imagine we will learn anything new, but they will make a drama out of it never the less. CNBC will play their most dramatic bumper music, and the talking heads will ramp up the emotion before and after the release.
Action Plan
You may have missed it, but there were some big news events overnight. The most important; Moody’s downgrade the credit rating of China do to their rapidly growing and massive debt. As of now, the markets have shrugged it off as if nothing happened. Personally, I think this is another clue of complacency and maybe a warning of troubles ahead.
I recommended caution yesterday and maintain the same stance today. A long as the market continues to test price resistance but shows the inability to breakthrough it I will remain cautious. For me, that means I will continue to trade long but will limit the number and size of my trades. I will be very picky on the trades I take and will have exit plans ready to execute on any clues of failure. Go Bulls!
[button_2 color=”orange” align=”center” href=”https://youtu.be/HXHcoEFnssk”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
