Productive price action as the market rests.
Thus far the pullback/rest is showing productive price action in my opinion. Healthy markets commonly rest or pullback to test price supports. As of now, this resting pullback is not showing signs that the bears are taking over so far. Of course, that can always occur very quickly around new market highs. As the overall trend is still up will remain bullish, but I also want to be prepared in the event the Bears decide its time to feed. Always keep in mind that whipsaw price and swift reversal are common around potential market tops. Although fear is essentially not present at the moment we all know how quickly that can change so be prepared.
On the Calendar
The only thing of significance on the Economic Calander this hump day is the EIA Petroleum Status Report at 10:30 AM Eastern. The last three reports have shown a decline in supplies, but the news lately from US producers suggest they have no intentions of slowing down. As a result oil prices and oil companies have continued to show weakness. Today’s number could easily move if this market.
On the Earnings Calendar, there are 29 companies expected to report earnings this morning. A quick scan of those on the docket there is none that would normally move the market. However, if you own or happen to be considering one of these companies, please understand the implications.
Action Plan
The market having rested a couple of days and pulling back to an area of possible support is healthy price action in my opinion. Futures have been dancing around the area of a flat open this morning. I think the Oil status number could be very influential on the market direction today. A build in supplies would be negative while a reduction in supply is positive for oil prices.
I will, of course, attend to current positions first but will continue looking for new long positions staying with the direction of the overall market. I will be very watchful for whipsaw price action at these levels and will exercise caution on new trades until I see the Bulls picking up their activity.
[button_2 color=”green” align=”center” href=”https://youtu.be/GGb-PcalicE”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
SPY Performed Perfectly With A Bull Flag Breakout
(SPY) Last week the SPY performed perfectly with a bull flag breakout of the T-Line, A T-Line Run, A Flag PBO on support, then a Bull Kicker (was not perfect). The result is from the may 18, low to Friday’s June 2, close the Spay has run 3.13% (Sweet). While the market is bullish, we all should be doing very well in the charts we are trading. Keep your charts simple and clean so that you can see price. If you find yourself having trouble, reach out to one of our coaches.
FREE TRADE IDEA – JUNO
JUNO (Juno Therapeutics) has been rising for the past seven months; It is now above the 200-SMA on the daily chart. On the 3-day chart, JUNO is an RBB-pattern and has formed a Bullish Rising Method. Juno has also broken out of a downtrend line
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Conditions for the JUNO trade
- RBB (3-day chart)
- Rising
- Above resistance
- Morning Star (2-day chart)
- Rising Method (3-day chart)
- Over 25% possible
[button_1 text=”FREE%20J-Hook%20eBook%20-%20Great%20for%20Swing%20Traders” text_size=”32″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”Y” subtext=”Click%20Here%20To%20Start%20Your%20Download” subtext_size=”15″ subtext_color=”#f50f0f” subtext_bold=”Y” subtext_letter_spacing=”0″ text_shadow_panel=”N” styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”N” inset_shadow_panel=”N” align=”center” href=”https://hitandruncandlesticks.com/swing-traders-j-hook-pattern/” new_window=”Y”/]
Why Trade With Hit and Run Candlesticks
TDOCis up 50.57% from our members only post on February 28, 2017; Education builds confidence.
100 shares of SPWH was worth $2210.00 Friday –
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.
Price action indicates the Bulls are firmly in control.
Price action clearly shows that the Bulls are large and in charge. Not only did the step in defending price support but they smashed through the ceiling setting new records. On this profit taking Friday, I plan to do some selling into this strength and going to the bank ahead of the weekend. Futures are suggesting a strong gap up this morning so be watchful of whipsaws that are common at price highs. As a personal note, I am still very concerned about the potential effect of complacently with the VIX near historic lows. Although I will be taking long, I will also be on guard and prepared if this wildly bullish enthusiasm happens to reach an exhaustion point.
On the Calendar
Normally I would say this morning we finally get the number the market has been waiting for, The Employment Situation report. However, the market seems to be waiting for nothing with the stellar performance of the Bulls yesterday, and the huge gap up the futures are expecting this morning. None the less the 8:30 AM Eastern Employment Situation number is a critical indicator of economic health. Consensus suggests another very strong number of 185K jobs created and the unemployment holding at historic lows of 4.4%. In focus today will be the average hourly earnings which can provide clues to inflation. Forecasters say inflation is not on the rise expecting the hourly earnings to remain week at 0.3%.
International Trade also comes out at 8:30 AM and is expected to show the trade gap widened sharply in April which would be an economic negative. Also on the docket are two Fed speakers to round out this big week of data. We have a very light Earnings Calendar today with only six companies expected to report earnings.
Action Plan
The Bulls are in control and appear to be wildly strong pushing the DIA to a new closing record high while the SPY and the QQQ once again broke to new records. Remaining a bullish and staying with the overall trend of the market has once again proven to be profitable. Having said that this no fear market still gives me the willies! I will continue to trade long but because I do fear complacency I will remain laser focused on price action for clues of trouble. My job is to follow price not predict so that I will do exactly that. Friday is profit day, and I do plan on taking advantage of the strength of the market and take profits ahead of the weekend.
[button_2 color=”green” align=”center” href=”https://youtu.be/kOGmwJlQWv4″]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Price Runs The T-Line, Flagged and Took Off
(SPY) WOW, what a great day in the market yesterday! Price runs the T-Line, flagged and took off.
A perfect T-Line runs, with a flag PBO then a T-Line bounce. The next step for the SPY is yo reach out for the $245.00 level. Watch for opportunities and always be prepared for the unexpected.
FREE TRADE IDEA – VSTO
VSTO
Vista Outdoor Inc. has been basing for more that three months now. Price has run and held above resistance and showing signs of more of a run. The Rounded Bottom Breakout is powerful strategy when traded with a plan and common sense.
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
Conditions for the VSTO trade
- Rounded Bottom Breakout
- Bullish “W” (3-day chart)
- Morning Star (3-day chart)
- Above resistance
- Bullish Engulf
- PBO
- Over 30-40% possible
[button_1 text=”FREE%20J-Hook%20eBook%20for%20Swing%20Traders%20″ text_size=”32″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”Y” subtext=”Click%20Here%20To%20Start%20Your%20Download” subtext_size=”15″ subtext_color=”#c40e38″ subtext_bold=”Y” subtext_letter_spacing=”0″ text_shadow_panel=”N” styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”N” inset_shadow_panel=”N” align=”center” href=”https://hitandruncandlesticks.com/swing-traders-j-hook-pattern/” new_window=”Y”/]
Why Trade With Hit and Run Candlesticks
SPWH is up 34.26% from our members only post on May 12, 2017; Education builds confidence.
200 shares of SPWH was worth $1280.00 yesterday –
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.
T-Line Held Strong for the SPY’s Rough Day
(SPY) The SPY had a troublesome start for most of the day, but the T-Line held strong for the SPY’s Rough Day. The Bulls still outnumber the Bears and the open looks modest, of course, I am writing this before the ADP numbers post And tomorrow we have jobs numbers.
Yesterday I mentioned the 23.6 Fibonacci number and while Fib lines are not a perfect indicator for trading yesterday’s low came within pennies of the 23.6 Fib line.
FREE TRADE IDEA – HTZ
HTZ Hertz Global Holdings has been in a downtrend for some time and may be ready for a Double Digit relief rally.
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Conditions and Reasons to Trade HTZ
- Pinball Setup
- Downtrend
- Double bottom
- Hammer
- Bullish Engulf
- Over 20% possible[button_1 text=”Learn%20How%20We%20Plan%20To%20Make%20%242000%20In%20HTZ” text_size=”32″ text_color=”#000000″ text_bold=”Y” text_letter_spacing=”0″ subtext_panel=”Y” subtext=”Less%20than%20%243.00%20a%20day%20learn%20to%20trade%20independently” subtext_size=”15″ subtext_color=”#f72626″ subtext_bold=”Y” subtext_letter_spacing=”0″ text_shadow_panel=”N” styling_width=”40″ styling_height=”30″ styling_border_color=”#000000″ styling_border_size=”1″ styling_border_radius=”6″ styling_border_opacity=”100″ styling_shine=”Y” styling_gradient_start_color=”#ffff00″ styling_gradient_end_color=”#ffa035″ drop_shadow_panel=”N” inset_shadow_panel=”N” align=”center” href=”https://hitandruncandlesticks.com/hit-and-run-candlesticks/” new_window=”Y”/]
TDOC is up 40.65% from our members only post on February 28, 2017. We are about the education.
200 shares of TDOC was worth $1750.00 yesterday –
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.
End of Day Rally Inspires Cautious Optimism
The end of day rally yesterday was nice to see as the Bulls continue to defend price support. There are many that will point to the hammer candle patterns as signs of bullishness, and they could very well be correct. However, let’s not forget that the same candle pattern can also ba a Hanging Man because of its placement near all-time highs. Personally, I want to be optimistic that the Bulls are ready to push higher, but I must continue to prepare for the potential reversals. Remember price swings can happen very quickly at or near potential tops. Intraday whipsaw price action is common as highs are tested so it’s wise to be ready for additional volatility when planning new positions.
On the Calendar
Today is a busy Economic Calendar with reports that do have the ability of move the market. It starts off with the ADP Employment Report at 8:15 Am Eastern. The ADP number last month missed the mark calling for more jobs growth than actually showed up. Today they the number is expected to be between 170k to 177K jobs created. At 8:30 AM we receive the weekly jobless claims which have been tracking at 40-year lows. The PMI Manufacturing Index comes out at 9:45 AM. PMI is expected to come in with a very strong reading of 53.0 this month.
One of the heavy hitters this morning is the ISM MFG Index number at 10:00 AM. Consensus suggests the ISM will come in steady and strong with a reading around 54.6. Construction Spending numbers also at 10:00 AM have been tracking flat this year, but today forecasters are expecting an improvement. Last but not least is the very important Oil Status Report. If we want the market to continue marching higher, we will need some help from declining surplus supplies. There are 45 companies are expected to report earnings today.
Action Plan
The end of day rally yesterday was inspiring but fell just short of providing bullish confidence. I will approach the market today with some cautious optimism. Futures are currently flat, but with all the morning economic reports quick price swings will be possible. We must also keep in mind that the market may decide to simply wait for the Employment Situation number.
[button_2 color=”green” align=”center” href=”https://youtu.be/ctMF4z-Gdco”]Morning Market Prep Video[/button_2]
Trade Wisely,
Doug
Thus far the pullback/rest is showing productive price action in my opinion. Healthy markets commonly rest or pullback to test price supports. As of now, this resting pullback is not showing signs that the bears are taking over so far. Of course, that can always occur very quickly around new market highs. As the overall trend is still up will remain bullish, but I also want to be prepared in the event the Bears decide its time to feed. Always keep in mind that whipsaw price and swift reversal are common around potential market tops. Although fear is essentially not present at the moment we all know how quickly that can change so be prepared.
