Positive price action at support inspires a little bullishness.
Seeing a little positive price action at support encouraged the Bulls to work a tiny bit harder yesterday. As expected there was no interest rate increase, but the odds of a June increase are now better than 90%. However, it’s important to note even with three more 25 basis point increases the prime rate will still be below 2%. The news out of the Washington DC says we can expect a vote on the new health care bill today. It would appear they have finally acquired enough votes to get the job done. I suspect that is one of the reasons we are seeing the futures pushing higher this morning. Today is also the last big day of earnings this quarter with nearly four times more reports than are scheduled for all of next week. If the Friday Employment Situation report is as positive as the ADP suggests, a bullish breakout could be in the cards. Only time will tell. If you happen to be an old Star Wars fan, May the 4th be with you!
On the Calendar
On the Economic Calendar, today is International Trade, Jobless Claims, and Productivity Costs all coming out at 8:30 AM Eastern. At 10 AM we will get the Factory Orders number. As usual the most important of the these will be the International Trade & Jobless Claims, but they would need a surprise to move the market. Please keep in mind that Friday is the big Employment Situation report. Chalked full of reports today is the Economic Calendar with 558 companies revealing quarterly numbers. Today is the last big earnings day this quarter. Yeah!
Action Plan
After giving up ground in the morning, the Bulls dug in and pushed back finally showing some strength. It’s going to be important for the Bull’s to step up again today and follow through with another show of force. Typically the market will be choppy ahead of the Employment Situation Report, but Wednesday’s strong showing of 175K in the ADP could inspire a bit of confidence in the Bulls. Currently, the futures are pointing to a 50 point gap up which is encouraging. I will be looking for new positions today. Keep in mind Congress is expecting to vote on the new health care bill today. If it finally passes, I think the market will view that as a positive.
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Trade wisely,
Doug
The SPY has Traded Narrowly for the Past Six Days
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Traders are on the edge of their seats waiting for the trading range to break one way or another. The SPY has traded narrowly for the past six days. In that six days, price has 
formed a Shooting Star and a Bearish Engulf wich suggests price should be under more pressure than it appears to be.
Looking at the big picture the SPY has broken out of a Bullish “W” pattern and is now consolidating. Below $237.81 $236.50 should be tested with the p[ossiblility of $235.25. Above $239.00 and the Bulls should be able to run higher.
With the likes of Apple and Facebook reporting plus the FOMC report surely this range will break one way or the other.
FREE Trade Idea – LVLT
LVLT– Broken out of the January highs and a Bullish “W” pattern. Rallied with a T-Line Run, yesterday the Bulls made good use of the Bullish Flag.
Charts to Learn From – MKSI
MKSI- On April 20, 17 we posted to our subscribers that MKSI had a Bullish look. Price has pretty much consolidated the past three months. Then presented us with a double bottom. A breakout over $70.00 would send MKSI into the $80.00 range. Currently, MKSI is up 16.60% from our post. Using a stop of about $77.75 and a breakout of $80.50 MKSI could see another run.
Members Swing Trade Ideas
We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
10-15 trade ideas below – for members only
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 30 days for example.
From that watchlist, 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
Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.
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Choppy price action expected, uncertainty abounds.
Choppy price action is the norm as the market waits for the announcement. Today could be extra challenging due to earnings reports. Apple missed the mark yesterday which could prove difficult for the QQQ to continue it’s leadership higher. Both the DIA and the SPY are in tight consolidation ranges not providing us directional clues just yet. Toss in the FOMC, the Employment Situation Report on Friday along with a slew of earnings, uncertainty abounds. As always try to avoid all the noise and emotion by staying focused on the price action.
On the Calendar
Today on the Economic Calendar we have a couple of potential stumbling blocks. The first being the Petroleum Status Report which had shown a small improvement in supplies. However, there was a recent story about the US, and I think Lydia have ramped up production which tosses the Status number into question. Then, of course, have the FOMC Announcement at 2:00 PM Eastern. I think it’s very doubtful the Fed will raise rates today if they reference more hike in the near future the market will react. The ADP Employment is at 8:15 AM and ISM Non-MFG index come out at 10 AM.
On the earnings calendar, we continue to ramp up with more than 400 companies reporting today. Please continue to look before leaping into a trade just before and earnings report. Use TWLO as an example of how being uninformed can cost you a bundle!
Action Plan
FOMC days tend to be very challenging days to trade. As a general rule, the price action is slow and choppy until the announcement, and then volatility goes wild with big up and down swings in just a few minutes. Once the initial reaction subsides, Yellen gives a press conference stirring the pot again. I would encourage new or struggling traders to stand aside avoiding the additional risk.
Another complication today is that APPL missed earnings yesterday afternoon. The selling was not extreme in the post-market, but the influence of APPL can move markets if selling pick up today. Currently, the futures are pointing to a modestly lower open. I want to take an extra dose of caution this morning. Perhaps the market can shake off the poor reports, but I don’t want to risk more capital until I see that in the price action. I’m expecting choppy action until the FOMC announcement, so there is no need to rush new entry decisions.
[button_2 color=”green” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-sddb0007a2014d14b”]Morning Market Prep Video[/button_2]
Trade wisely.
Doug
Not every day is a good trading day!
The words of my old mentor, Not everyday is a good trading day, ring in my ears this morning. If fact, she used to say that there were only about ten days a month good for entering trades. Personally, I’m not that stringent, but her point still rings true today. Often as traders, we feel rushed or under pressure to make trades each and every day. After all, we’re sitting here, and it is the only way we can make money!
You have heard me say may times that often less is more. Trading for the sake of keeping busy is a dangerous habit many traders fall into, but only find large losses at the end of that path. Quality over quantity should be our focus. Today we could easily see a lot of choppy price action as the market waits for the FOMC announcement and the highly anticipated earnings from Apple. I for one to wait for quality trades and day like today might not be the best day for entry. Be careful, and make the trades come to you. There is no need to rush!
On the Calendar
Today is a light day on the Economic Calendar with only the Motor Vehicle Sales numbers. Although an important number that confirms consumer sentiment it is unlikely to move the market. Of course, the beginning of the FOMC meeting is noteworthily, but it’s only the announcement on Wednesday that matters. On the Economic Calendar, we have 257 companies reporting today however only one company receives most of the attention. Apple earnings are always highly anticipated, and thus a potentially market moving event.
Action Plan
I’m expecting choppy range bound price action today as we wait for the FOMC announcement. However, with so many companies reporting, I want to stay on my toes and focus price action clues. Although a big market move is unlikely today, I don’t to rule out possible setups. There should be no reason to feel rushed this morning. I as always will be very picky; I don’t need to trade every day to be successful. Not every day is a good trading day! Futures are currently suggesting a slightly lower open but as earnings continue to roll out that could easily change.
[button_2 color=”green” align=”center” href=”https://hitandruncandlesticks.sharefile.com/d-s4d9700eb5a247d2a”]Morning Market Prep Video[/button_2]
Trade wisely,
Doug
The QQQ’s rides High T-Line
The QQQ’s rides High T-Line while it’s market buddies are either resting on the high line or hiding underneath it. Despite pretty good earnings the political environment 
seems to be holding the market back. Some of what the market is facing; Earings, Unemployment numbers, FOMC meeting, France vote, Tax reform and a nut case with rocket, just to name a few.
I think I will stick to the charts, and ask myself what is price doing? What does the shape of the candle or candles suggest, where are resistance and support. 2 big no-no’s I will remind myself is no predicting and no watching the hard right edge.
FREE Trade Idea – TRVN
TRVN– Has printed a Bullish Morning Star after an 18-day base. TVRN is also a 4-hour Rounded Bottom Breakout.
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Charts to Learn From – CMRE
CMRE – Is up 25.50% from when we suggest to our subscriber that it might be a chart you look at. A Rounded Bottom Breakout that has now closed over the Daily 200 period moving average.
Do you think the trade has more to go? What chart pattern is CMRE forming on the daily chart? How about the 2,3,4,5-day charts?
Members Swing Trade Ideas
We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
Subscribed members
10-15 trade ideas below – for members only
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 30 days for example.
From that watchlist, 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
Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.
Last Updated: May 1, 2017
Last week we discussed what happens when windows fall, so this week we’re watching them rise up again. Like its brother, the Rising Window candlestick pattern is a simple signal with an imaginative name. You might picture fallen windows taking flight, climbing with the help of a pulley, or simply floating up the sides of buildings. Despite its evocative title, the Rising Window candlestick pattern conveys a very basic message. To learn what that message is and how you can spot the signal, please scroll down.
Continue Reading
Seeing a little positive price action at support encouraged the Bulls to work a tiny bit harder yesterday. As expected there was no interest rate increase, but the odds of a June increase are now better than 90%. However, it’s important to note even with three more 25 basis point increases the prime rate will still be below 2%. The news out of the Washington DC says we can expect a vote on the new health care bill today. It would appear they have finally acquired enough votes to get the job done. I suspect that is one of the reasons we are seeing the futures pushing higher this morning. Today is also the last big day of earnings this quarter with nearly four times more reports than are scheduled for all of next week. If the Friday Employment Situation report is as positive as the ADP suggests, a bullish breakout could be in the cards. Only time will tell. If you happen to be an old Star Wars fan, May the 4th be with you!
