A Day OF Rest For The SPY
(SPY) – Yesterday’s price action ended up being a day of rest for the SPY giving back only .21 cents. Closing yesterday above the T-Line and the 23.6% Fibonacci retracement is a clue the Bulls are still in charge.
The leading sectors are Technology, Utilities, Consumer Defense, and Healthcare. Healthcare is currently showing signs of a possible top. Price is below recent tops and the T-Line, weakness today will drop price below the Lower T-Line Band as well.
FREE TRADE IDEA – FSLR
FSLR recently broke out of the downtrend line and the 200-sma. Price has made higher highs and higher lows with a Bullish J-Hook pattern off the T-Line. Start your membership
MNKD is up 20.44% from our members only post on ApMay 23, 2017. Price action and Candlesticks rule!
2500 shares of MNKD was worth $700.00 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
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.
Sell in May and go away? Not so much!
This year those that followed the old axiom, “Sell in May and go away”; missed out on big time. Fear of a sell remains at near record lows, and it seems even the smallest selloffs attract dip, buyers. Nothing about this year has so far has qualified as normal. As a result, we must remain very focused on price action clues and prepared for anything. That means don’t become complacent thinking that the market it too strong to sell off because that is a mistake that can remove all your profits for the year very quickly. If buyers continue to show strength at these levels, we must also be ready to act.
With no major news events over the holiday, I would expect a light volume day as many traders will have planned extended vacations.
On the Calendar
Although this is a short week, the Economic Calendar is full of very big reports. It kicks off the today with Personal Income and Outlays at 8:30 AM Eastern. Consumer is spending is expected to see an improvement over last month, but consensus suggests personal income will remain soft. At 9:00 AM we get the S&P Case-Shiller numbers followed by the Consumer Confidence reading at 10 AM.
Housing demand has been extremely strong this year bu the Case-Shiller number is expected to soften from 6% to 5.8%. Consumer Confidence is also expected to retreat ever so slightly today but continues to remain very strong and near 20-year highs. There are only 33 companies on the Earnings Calendar today, and there are none that would likely move the market.
Action Plan
Although it is likely to just a little more price action today, then we saw last Friday I am expecting much. There were not any major new events over the holiday, and the evil doers of the world behaved. Futures are pointing to a slightly soft open, but that should not be a surprise after last week’s breakout. My plan is of course to manage my current positions, but I will need to see some good price action before concerning myself with new trades. Ultimately I want to see the overall market test and hold the breakout of last week before getting too excited about adding new risk. Historically June is a month that is flat to just slightly positive. However, there is nothing about this year that has been normal, so we need to prepare for that fact that anything is possible.
[button_2 color=”green” align=”center” href=”https://youtu.be/d50XOozVaNk”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
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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Combine the 3-Month Membership Special with Coaching From Rick Saddler (Founder of Hit and Run Candlesticks and He Will Guarantee YOU Will Make Your Money Back and then some! And you get to keep all your education. Contact Rick though this link to ask questions. Contact Rick
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
