Bulls Walk Up the Stairs-Bears Jump Out the Window FREE Swing Trade Idea

May 18, 2017 by Rick Saddler

Bulls Walk Up the Stairs-Bears Jump Out the Window

(SPY) – How’s that Bullish wall of worry working now? It’s amazing how the bulls walk up the stairs, and the Bears jump out the window. You have to love panic and fear.

The gap down yesterday and the panic it caused will likely cause the SPY to test the March and April lows. The 2 and 3-day charts have painted a very hungry Bearish Engulf. I took a peek at the cloud chart, and the hourly, 2-hour and 4-hour have broken down and now flying below the cloud, and the daily will fly into the cloud today.

Yesterday I pointed out how the VIX was set up to rock the trading world and boy did it. Closing over its 200-sma puts it in a position to test upper downtrend line starting back in January this year.

FREE TRADE IDEA-MU (short)

MU – Micron Technology has enjoyed a sweet profitable run, but it may be time for those winners to cash in. April and Marches trading failed to push past Aprils high and with yesterday’s price action the chart id forming a Bearish “M” pattern. The weekly chart has presented us with a Bearish Engulf with a possible 20% target direction.

The UVXY trade was a HUGE WINNER for so many subscribers, entered on the Doji May 16, and sold May 17, for a 26.83% trade. We plan to revisit UVXY when the opportunity appears.

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.

Bears Seizes Yesterday’s Failure To Breakout FREE Swing Trade Idea

May 17, 2017 by Rick Saddler

Bears Seizes Yesterday’s Failure To Breakout

(SPY) – . The Bears seizes yesterday’s failure to breakout with Bullish follow through as a chance to step into the light. On May 10, “I wrote last week’s Channel is looking to get tested. I put the top channel line about $238.80 and the bottom about $237.70”. At the moment, the morning futures are between the two numbers. Below $237.70 would put enough pressure on the SPY to test the $235.50 area, and this may not be in the best interest of the Bulls and the 2017 summers future.

A weak close today below $280.80 would drop price below our lower T-Line Band, a close below the Lower T-Line Band could start the slide to test the lower numbers and set the course for the summer.

Over the past six trading days, the VIX has drawn a Doji and Bullish Engulf pattern followed by a follow through gap, then a PBO to support creating a Bullish Inverted Head and Shoulder bottom. On the 4-hour chart, I see a PBO Morning Star signal with price and Volatility Stop support.

Yesterday before the close I announced to the trading room I was buying UVXY, I am long at $11.72. My plan today will be no new buys, just manage what I have and build on a watch-list.

FREE TRADE IDEA – TZA

TZA – If you remember, on April 27, I recommended to Hit and Run Candlesticks Inc. trading account to buy TZA. Hit and Run Candlesticks did and still owns ½.The Bullish Morning Star on the daily chart and the Bullish Engulf on the 2 & 3-day charts have pushed price to resistance, and now the consolidation could be nearing an end.

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What is a Trade Idea Watch List?

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.

Reversal concerns at resistance. Who’s responsible?

May 17, 2017 by Doug Campbell

Reversal concerns at resistance. Who’s responsible?

Reversal concerns that I have been warning about seem to have had some merit. As soon as the retail market closed yesterday the futures began to plunge south. Undoubtedly there are a lot of traders that will feel slighted this morning. Most will place the blame for their troubles on the mean market rather than accept responsibility.

In truth, the clues of this possibility have been all over the place. The failure to notice them rests fully on the shoulders of the trader. I know that sounds harsh but it’s the truth. If the trader accepts the responsibility then this becomes a learning experience that will not be forgotten. However, it will be quickly forgotten and likely repeated by the trader that assigns blame somewhere else. As we always say, price action is leaving us clues and they must not be ignored.

On the Calendar

A light day on the Economic Calendar today with only the EIA Petroleum Status Report numbers of any significance. It will be out at 10:30 AM Eastern time and could easily move the market after its release. To also keep us on our toes with have 50 companies reporting today on the Economic Calendar.

Action Plan

It would appear my concern about the struggle with we were having with price resistance is being validated this morning. I know some likely thought I was out of my mind selling positions that were still going up yesterday. I’m sure glad we did at this point! Now, we must focus, avoid emotion and deal with the current trades we are holding.

My plan will be exit positions calmly and as efficiently as possible but only after an evaluation of price action. For example, our long-term position in MSFT will most certainly lose some value today but at this point, I don’t feel a need to cut lose. As the day progresses that decision could change but for now, I want to stick with the trade. However, others will likely have to be closed quickly to maintain profits. In short, I want to react to current conditions with a business frame of mind. Emotional decisions have no place in business.

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Trade wisely,

Doug

The T-Line Continues to Trend Higher with a Slow Grind Price Leading FREE Swing Trade Ideas

May 16, 2017 by Rick Saddler

The T-Line Continues to Trend Higher with a Slow Grind Price Leading

(SPY) – The T-Line continues to trend higher with a slow grind with price leading. The Bulls keep clawing their way up the wall of worry. On the SPY’s daily chart a Bullish trend continuation J-Hook pattern is being printed. Yesterday’s candle put the last three days’ pattern in the same family as the Bullish Morning Star. You can also see this on the 2-day chart and a Bullish Engulf.

Yesterday the SPY closed at an all-time new high breaking back above our upper T-Lind Band, on the 3-day chart the SPY has closed above the upper T-Lind Band the past 6 bars. All this was made possible with the help of the 11 S&P-500 Spiders I follow closing above the previous days close.

FREE TRADE IDEA – CEMP

CEMP – Has constructed a Bullish Reverse Scoop Pattern along with a Bullish “w” pattern and a double bottom. The chart could be ready to break above the recent resistance and to our dotted Deuce. On May 2^nd we posted VRX to or subscribers, nine days later it is up 46.69%

On our trade ideas tracking list Hit and Run Candlesticks has produced five trades above 30% – 6 trades above 20% – and 19 trades between 10% and 19%.

With on-demand recorded webinars, eBooks, and videos, member and non-member eLearning, plus the Live Trading Rooms, there is no end to your education. Start small and learn

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Bullish price action warrants cautious optimism at resistance.

May 16, 2017 by Doug Campbell

Bullish price action warrants cautious optimism at resistance.

The bullish price action and the strong close lifted my optimism of a breakout yesterday afternoon. Because I am long 12 positions, I obviously have an upside bias, but I must acknowledge the overhead resistance. Even with the great effort, the Bulls made yesterday resistance still proved to be a stumbling point. I’m holding out hope that today will be the breakout but I am prepared to capture my gains quickly if resistance proves too strong.

On the Calendar

The Earnings Calendar kicked off early this morning with HD reporting better than expected earnings about 6 AM Eastern time. Let’s hope the 70 plus other companies do as well and it’s enough energy to break the market out of the current price range. For now, I will cheer for HD because the DIA needs all the help it can get!

On the Economic Calendar, we have two potentially market-moving reports. First, off is the Housing Starts number at 8:30 AM Eastern followed by Industrial Production. Both are important numbers because they directly point to the health of our overall economy. Growth in both areas would sure help to lift the market out of its recent doldrums.

Action Plan

I am approaching the market with cautious optimism. The nice showing in the SPY yesterday and its strength into the close inspires the optimism. The caution comes in the form of resistance that as of yesterday proved to an obstacle the market was unable to overcome. As a result, I’m happy to be holding a significant number of long positions yet feel the need to manage them closely. If a failure price pattern were to occur this would be the place to watch for them. Currently, futures are pointing to a slightly positive open, but a lot can happen over the next couple hours as the market responds to earnings and market reports. My plan is to stay long, but I will be laser focused on the markets price action and will not hesitate to capture gains if a failure pattern develops.

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Trade wisely,

Doug