Yesterday’s price action was great but can it follow through? Posted at AM EDT 4-21-17

April 21, 2017 by Doug Campbell

Yesterday’s price action was great but can it follow through?

Thursday’s price action was just enough to inspire a hopeful vision of bullishness. As nice as it was to get some relief from the selloff yesterday, more is needed to prove that its over. One of the first lessons to be learned in trading is that one day of bullish price action does not make a trend. Follow through is required.

A single day of price action can suggest reversal; it can inspire bullishness but it truth without following though it’s only hopeful speculation. Let’s keep in mind that the DIA and the SPY rallied to test resistance but failed to break it. On the other hand, the Q’s and the IWM found the energy to break resistance. Now the question is, can it hold?

Personally, I hope that it can, but I’m unwilling to speculate and risk my capital until I see a bit more proof. I have a rule that resistance does not become support until its tested. Over the year that rule has saved me from taking significant losses Hoping that support will hold. Hoping that something is true is natural but risking capital on Hope is nothing more than gambling. Las Vegas has build monuments with the lost capital of hopefulness. I understand that waiting is hard, but it’s my opinion that waiting is much easier than the pain of loss.

On the Calendar

We kick off the Economic Calendar today with a Fed speaker at 9:30 AM Eastern time. The PMI Composite number quickly follow at 9:45 AM with Existing Home Sales at 10:00. Both reports have the potential to move the market. It would be wise to keep an eye on price action after these reports with the market as such a critical point. On the Earnings Calendar, we have 36 companies reporting today but keep in mind there are 110 reporting Monday. Plan accordingly and be prepared. Not checking is lazy and we all know there is no room for lazy when our money is at stake!

Action Plan

As you know, I consider Friday as Pay Day! As a result, my focus shifts from buying to new positions to taking profits. With all the uncertainty we are currently experiencing in the world right now I feel much more comfortable reducing risk before the weekend. One of the hardest lessons I have ever learned is never to allow greed to get in the way of taking a profit. We all want to hold our for higher gains, but experience has taught me that very often less is more. Commissions are cheap. I can always buy a position back on Monday, but I can not guarantee there will be a profit unless I put it in the bank!

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Trade Wisely,

Doug

Closing Above Upper T-Line Band Implies More Bulls Than Bears

April 21, 2017 by Rick Saddler

Closing Above Upper T-Line Band Implies More Bulls Than Bears

Price closed above yesterday’s upper T-Line Band and just below the 50-sma @ $235.54. Closing above the upper T-Line Band implies more Bulls than Bears. From the April 13, low the Bulls have worked up 1.22%. Looking at the weekly chart, I see a Bullish Pricing candle followed by three inside candles and higher lows. $235.10 was an important number for the bulls, $236.50 followed by$237.80 will also be important for the Bulls to grab.

FREE Trade Idea – IPXL

IPXL – A Rounded Bottom Breakout Strategy, Bullish Inverted Head and Shoulder, PBO Bullish Morning Star, Support.

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Spotlight Trade – IMGN

IMGN is up 101.44% from the time we alerted our subscribers, as a trader can you find the chart patterns and signals that could have worked for you? Start with the HRC – (RBB) Rounded Bottom Breakout.

HRC – (RBB) Rounded Bottom Breakout

NEW YORK (TheStreet) — One of my favorite chart patterns is called the rounded bottom breakout pattern. The pattern was introduced to me by candlestick analyst Rick Saddler, who also coined the term “rounded-bottom breakout.” Rick also defined the criteria for the breakout. Once you know what to look for, it is very easy to spot and can be entered into any chart software scanner.

In order to find such a pattern in your charts, plot them with the 20-day simple moving average, the 34-day exponential moving average, 50-day simple moving average and the 200-day simple moving average.
Once you have these moving averages on your chart, the breakout is very easy to spot. I also plot the 8-day exponential moving average or t-line.
The t-line isn’t needed to spot the breakout, but it is useful in choosing an exit point once you are in 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

Members Trade Ideas Below

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 watch-list, we wait until price action meets our conditions for a trade.

Members trade ideas below reserved for subscribed members

Scanned from Tc2000 | 10-15 trade ideas daily

© 2007 – 2017 Hit & Run Candlesticks INC. – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.

Both T-Line bands below the 50-sma with a Bearish Engulf FREE Swing Trade Idea

April 20, 2017 by Rick Saddler

Both T-Line bands below the 50-sma with a Bearish Engulf

From a Bull’s Eye – SPY:

Both T-Line bands below the 50-sma with a Bearish Engulf, this is just another tell-tell sign the bears outnumber the Bulls. The SPY closed down .43 cents or .18% at $233.44, and the most recent low is $232.51

One of the factors in the SPY (market) being weak yesterday may have been because of oil dropping. USO – United States Oil Fund fell through its 200-sma on heavy volume after learning what resistance is all about at $11.26. Based on the USO chart I see price heading to about $10.25 and possibly lower.

FREE Trade Idea – ADHD

ADHD – A Rounded Bottom Breakout Strategy, that pulled back to a higher low with a Doji and a Hammer. Closed yesterday back over the RBB trigger. The past 6 days also formed a Bullish Rising pattern.

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Spotlight Trade – X (short)

X has dropped 12.93% from the time we mentioned it to our members as a possible short trade idea. After we had posted X as a short trade, it traded back up to the upper T-Line Band where failed and broke below the lower band. Where it now sits on the 200-sma. The X short trade is a perfect example of the Blue Ice Failure and the Bearish “h” pattern

Blue Ice Failure Pattern

Imagine someone falling through the ice, then trying to come back up to the hole they plunged through. On their way up, they bump up against the ice and then fall back down again. This is the analogy behind the Blue Ice Failure Pattern (a term coined by David Elliott).

In stock charting terminology, the Blue Ice is the blue colored 50-day simple moving average (50 SMA) and price is the subject taking the plunge. More specifically, price is falling, it approaches the 50 SMA and plunges down through it. Price finds support after the plunge and starts to rally toward the 50 SMA. Price reaches the 50 SMA area and tries to break up through it but bumps up against it and then falls back down again.

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Scanned from Tc2000 | 10-15 trade ideas daily

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 30 days for example.

From that watchlist, we wait until price action meets our conditions for a trade.

Uncertainty fuels the price action to another day of losses. Posted 7:58 AM EDT 4-20-17

April 20, 2017 by Doug Campbell

Uncertainty fuels the price action to another day of losses.

The short-term price action rally was only able to hold out for a brief time yesterday. The Bulls had a short-lived spurt of energy but once GS started to turn back down everything followed. Okay, enough of the past, where do we go from here? I would like to think we are due for an oversold rally. However, as of now, there is nothing in the charts to suggest that.

Earnings reports have the potential to dig us out of this hole, but if another bell weather like GS or IBM disappoints the Bulls may give up the battle. After the bell yesterday we had a good round of reports, and so far this morning the results have lifted the futures. The big question is will it be enough energy to break resistance? I think we will need to see a media darling company like Amazon or Facebook blowing the doors off of expectations to make that happen.

On the Calendar

Right out of the gate this morning we have a Fed speaker on the Economic Calendar at 8 AM Eastern. Two potential market-moving reports, Jobless Claims and the Philly Fed Survey at 8:30 AM. The jobless number would most likely have to be a big surprise to move the market. As a result, the Philly Fed number is the one to watch this morning.

Plan of Action

My plan for the day is simple. Maintain my current positions and carefully watch for clues of a bounce. Why a bounce? The overall market has been in decline for more than a month. I, of course, could easily be wrong but I think a relief rally could begin at any time. Keep in mind there is not a thing in the charts currently suggesting that! Also, know I will wait for evidence of a rally before adding long risk to my account. My rules require that I only take short positions at or near resistance, not at new lows. Waiting is hard but its better than buying up puts or trying to short at market lows.

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Trade wisely,

Doug

P.S. our new phone App has already been downloaded in 15 countries. Thank you! Rick and I hope you find it a really nice, value added, addition to your service.

Is it time for a relief rally? Posted at 8:12 AM EDT 4-19-17

April 19, 2017 by Doug Campbell

Is it time for a relief rally? The short term price suggests a possibility exists.

A relief rally may be in order, but there are several factors that could stop it dead in its tracks. The short term price action seems to suggest a small rally. However, let me be very clear. A short-term signal is only good for a very short-term. As the market moves toward the open and companies, report earning before the bell anything is possible. Please keep in mind that all the major indexes are still below daily price supports!

I know it’s hard to get daily bearish market readings because we all want the market to start moving back up. As a result, our bias for bullishness gets in the way of reading the chart. The opposite can also be true. After having a bearish opinion for such a long time, it is very easy not to see bullishness. The fifteen-minute charts of the SPY, IWM, QQQ and now the DIA are now showing a tiny trend.

Tiny trends are not much to hang your hat on, but at least it’s a sign the Bulls may be willing to fight back. This morning Black Rock, the massive ETF firm, blew away earnings estimates. The also reported huge inflows last quarter. I have mentioned that it’s the little things that make a difference. I have to confess when I see huge inflows into ETF’s it bolsters my confidence in the overall market. The problem is that’s not all w have to consider.

Stumbling Blocks

With all the saber rattling, foreign elections, upcoming budget battle in the US, there are a lot of stumbling blocks for the Bulls. That’s Not to mention all the possible obstacles that earnings season presents. With so much up in the air I think we should prepare for higher volatility in the weeks ahead. For me, that usually means trading smaller positions. I also want to prepare trading plans that take profits faster with volatile price action.

On the Calendar

First up on the Economic Calendar is one of those big stumbling blocks, the Petroleum Status report. If the number shows a big build in supply, the Bears could be emboldened. On the other hand, a decline in supply may be just what the Bulls need to break the downtrend. Keep and eye on that number at 10:30 AM Eastern time. At 12:30 PM have another Fed speaker follow by the Beige Book at 2:00 PM. Both are unlikely to move the market.

Action Plan

My plan for today is to remain cautious. The short term rally is encouraging but defeating the longer term resistance the Bulls step up in a big way. Earnings could provide them with the energy to do so, but any stumble and the Bears will remain in charge. For new traders, it remains a very tough time. Please protect your capital until we have clear signals that the downtrend breaks.

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Trade wisely,

Doug

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Yesterday’s Doji Represents the Indecision We All Have FREE Swing Trade Ideas

April 19, 2017 by Rick Saddler

Yesterday’s Doji Represents the Indecision We All Have

From a Bull’s Eye – SPY:

The price action of the Doji Yesterday Represents the Indecision we all have in this market lately.

An inside day Doji was painted yesterday on the SPY chart closed down .70 cents or .30%. For the most part, nothing changed. Our moving average intraday strategy suggests the Bear is ahead of the Bull. Our moving average strategy includes the T-Line, 34-ema, and 50-sma 200-SMA and the Dotted Deuce.

Resistance can become support; current near-term resistance is $235.25 and $236.45

FREE Trade Idea – SABR

SABR – A Rounded Bottom Breakout Strategy painted a Doji on Monday and a Bullish Engulf on Tuesday. You see more information on our Trader Vission Trade Plan. Plan your trade for success and trade your plan.

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Spotlight Trade – SSYS

SSYS has risen 12.65% from the time we mentioned it to our members as a possible trade idea. Candlestick patterns, chart patterns, price action support and resistance and simple logic, is what we look for in a chart.

(RBB) Rounded Bottom Breakout

Although we’ve discussed Dragonfly and Gravestone doji in the past, we never got around to explaining the simplest of all candlestick patterns: the basic doji, sometimes referred to as a “Doji Star.” The doji candlestick pattern is formed with one candlestick, and it is incredibly common. Although there are several different types of doji (such as the Gravestone, the Dragonfly, and the Long-Legged), which we will describe briefly, today we’re focusing on the classic, original doji. To learn how to identify this informative candlestick pattern and interpret its presence, simply scroll down. Learn More About the Doji

Members Trade Ideas Below

Members trade ideas below reserved for subscribed members

Scanned from Tc2000 | 10-15 trade ideas daily

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 watch-list, we wait until price action meets our conditions for a trade.
© 2007 – 2017 Hit & Run Candlesticks INC. – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug Campbell or this website is not financial or trading advice. All information is intended for Educational Purposes Only.