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.
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Trade Wisely,
Doug
MVIS Broke out of a Bullish W Pattern
(Microvision Inc) $MVIS broke out of a Bullish W Pattern with a strong 20% candle after a double bottom. Then on the 2-Day chart rested for four bars followed by a Bullish Morning Star and Bullish Follow through, while holding a T-Line Run for 8 bars.
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 +15.95 ARDX +24.74%
Education on how to manage a trade from start to finish is vital to a swing traders success.
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.
$HTZ was first presented to HRC members on June 29,
Now up 35.52% with a run of 15.75% yesterday. Many of our members took ½ off the table yesterday and raised the stop on the second ½. -Good Trading
Eyes On The Market
As of the close yesterday the Bulls are still winning the game but getting tired and maybe needing a little rest. Maybe just a rest back to support.
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.
With C reporting earnings before the market opens tomorrow I suggest taking profits on the trade to avoid the risk. I would like to have held the trade through earnings but there is just not enough cushion in profits to hold it. You should realize about 20% gain in the trade. Well done!
Bullish price action is very important today.
Yesterday the Bulls came out to play, but they left behind a price action gap that requires a defensive plan today. The one day pop was fantastic with many of us banking some tasty profits yesterday. However, if the Bulls fail to defend the gap, I fear the confidence felt by the market yesterday will quickly erode. So get out your pom-poms and cheer for the Bulls. If we see the index prices slip into the gap prepared for the possibility of a quick selloff to fill the gap. Keep in mind that as good as yesterday was the SPY, QQQ’s and IWM are still under resistance levels that have proved to be difficult to breach.
On the Calendar
Thursdays Economic Calendar begins with the weekly Jobless Claims at 8:30 AM Eastern followed directly by the PPI numbers. Labor demand remains strong, and the jobless numbers are expected to continue that trend with forecasters expecting a 246k print this week. PPI, on the other hand, has remained rather soft coming in a 0.3% in May with consensus expecting only 0.2% in June. A great number in regards to inflation but not so much for the Labor force wages that continue to be flat. At 9:30 AM round two with Janet Yellen begins before the Banking Committee in Washington. Whatever she said yesterday seemed to inspire the Bulls, so let’s hope sentiment remains the same today.
On the Earnings Calendar, we have 22 companies expected to report today. Among them is Delta Airlines which I am curious to see because of the sharp rise we have seen in airline stocks this quarter. DAL reports before the bell today.
Action Plan
The Bulls came out to play yesterday and stuck by enthusiasm all day. The SPY and the QQQ’s faired the best holding up well the entire day. The Bears were at work on the IWM and the DIA as we headed into the close but all in all the Bulls held their ground pretty darn well. Because we left a price gap behind it will be very important that the Bulls keep up their efforts following through today. Currently, futures are pointing to a higher open, but we will need to see how buyers react after the open. A pullback that fills the gap I believe would damage confidence in this rally reinforcing the resistance levels. So get-R-done Bulls!
All of our RWO positions did well yesterday and taking a one day gain +20% gain on BABA was a nice bonus. I wish we didn’t have to, but I think think it’s prudent to that we take profits in C today ahead of the Friday earnings. This trade performed very well, but there is just not enough cushion in the profits to safely hold through the earnings report. So, l will be taking the 20% gain in C today and suggest member do the same.
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Trade Wisley,
Doug
P Is Building A J-Hook Continuation Pattern
(Pandora Media Inc) $P is building a J-Hook continuation pattern after a 8 day run to the 50-sma. The pullback ended with a Bullish Engulf, the follow through ended yesterday with a Doji, now creating a Doji Continuation pattern. Other patterns and signal involved are Inverse Head and Shoulder, POB to the 38% Fib line. 2-day chart is supporting a Bullish Morning Star Signal
Learn more about Hit and Run Candlesticks, and today’s trade idea plus the 10 or more members trade ideas, starting at 9:10 EST AM every morning. Every day we teach and trade using the T-Line, Candlesticks, Support and Resistance, Trends, chart patterns and continuation patterns.
We are still holding ARDX 22.64% profit
Education on how to manage a trade from start to finish is vital to a swing traders success.
With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end your trading education here at the Hit and Run Candlestick, Right Way Option, Strategic Swing Trade Service and Trader Vision.
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$SPWR was first presented to HRC members on May 31
Now up 24.66%. And popped 12.39% yesterday. SPWR was a Rounded Bottom Breakout and nailed it by the numbers on the daily chart. The 2-day chart is still a Rounded Bottom Breakout pattern, and it looks like another 25% is in the sun.
Eyes On The Market
Yesterday the market loved everything about Miss Janet, will today be the same? Price gapped and held above the downtrend line on the SPY turning the T-Line back up. Stay cautious and let’s make money.
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.
HZNP Printed A Bullish Engulf Yesterday
(Horizon Pharma PLC) $HZNP printed a Bullish Engulf yesterday after a 3 Doji pull back. The price action has been rising with the T-Line and the 34-ema crossing over the 50-sma. The past 5 days has created a Pop Out OF The Box Pattern. 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.
We are still holding IPI Plus 13.79%
Education on how to manage a trade from start to finish is vital to a swing traders success.
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.
BAS was first presented to HRC members on June 28,
Now up 13.02%. BAS started out as a Pinball set-up then went into the Rounded Bottom Breakout. With a rally followed by a Bullish Morning Star, PBO BAS looks ready to follow through on a J-Hook continuation pattern.
Eyes On The Market
Today is the start of Miss Janet talking to Congress; I suspect the market will be a bit dizzy before it makes a direction decision. Plus, earnings season is about to kick off. I find it very helpful if I watch what price does and compare it to the T-Line performance.
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.
Price resistance holds strong.
The Bulls tried once again to break through price resistance yesterday day but once again did not have quite enough energy to do so. The newly driven whipsaw left behind nice hammer patterns but it’s important to remember that that placement of this pattern is very important. A hammer pattern at support is important. The same pattern is drawn in a light volume rally that remains under resistance, not so much. If fact some might call it a hanging man pattern at price resistance. With the futures pointing to a gap up this morning, please keep in mind this is the perfect setup for a pump and dump whip whipsaw. Don’t allow the emotion whipped up in the premarket to influence your trading decisions.
On the Calendar
Today Economic Calendar is dedicated to Janet Yellen. The Fed Chair will deliver her opening statement in front fo the House Financial Committee at 8:30 AM Eastern. She will then follow that up with the semiannual monetary policy testimony at 10:00 AM. At 10:30 AM today we get the EIA Petroleum Status Report which last time showed a nice decline in supplies and helping oil companies find some support. Today lets hope this trend continues. At 2:00 PM is the Beige Book which may shed light on next FOMC action with the compiled data that influences their decision. Lastly at 2:15 PM we have another Fed speaker to round out the day.
There are 21 companies reporting earnings today as we slowly ramp up 3rd quarter reports. Please remember to make checking report dates part of your morning preparation.
Action Plan
Yesterday saw another day of choppy price action with a news-driven whipsaw tossed in for good measure. Unfortunately, the overall technical picture of the charts really didn’t change. Resistance continues to be stronger than the will of the Bulls thus far. The DIA remains the strongest of the indexes and the one most likely to lead the market higher if only it could break out. Currently, futures are pointing to a higher open but keep in mind the market will hang on each utterance from Janet Yellen’s mouth today. Be prepared for the possibility of whippy price action.
Flipping through the charts last night, I found a lot of possible setups for both long and short trades. Personally, I remain bullish on the overall market but the fact all the indexes remain under resistance levels leaves a reason for concern. With futures pointing to gap up into resistance I have to consider the possibility of a pump and dump. As a result, I will give the market at least 30 minutes after the open before considering new trades just to make sure the bullishness attracts real buyers.
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Trade Wisely,
Doug
