Confused about which way to Trade Today Free Swing Trade Ideas

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Confused about which way to Trade Today?

Confused about which way to TradeFrom a Bull’s Eye – SPY:

Are you confused about which way to trade today or the market direction?  Are politics and unknown world events confusing you about trading day-to-day?  What do I do when the market is week and yesterday’s price action shows strength.

The simple answer is just to look at the charts.  So let’s take a look at the SPY chart, yesterday’s open was above the previous low and yesterday closed was above the previous candle and high.  At the end of the day, the SBY closed up $2.06 or .89%  that’s a good sign for the Bulls at least for that day.

As as a swing trader was looking for price to swing higher, therefore, we must be concerned about resistance and what lies overhead.  For example on the daily chart price has moved below the 50-day simple moving average and has not crossed back above it.  Also, the T-Line is below the 34 exponential moving average on the daily chart.  Starting with the March 1 close, you can see the down resistance line pointing out the failed highs. Three intraday charts that I watch closely in times of confusion is the 30-minute, 60-minutes, and 2-hour charts.  On all three the SPY has moved below the 200-period moving average.

All the above factors are what I would take into consideration when looking at the SPY chart.  In my humble opinion price can certainly go higher but the BULLS must get through the resistant hurdles mentioned above.

My conclusion is simply to wait for confirmation.

FREE Trade Idea – BANC

BANC has recently moved over the 200-period M/A and above the left shoulder of a Head and Shoulder pattern. Price has broke out of the most recent consolidation and showing signs of bullish movement.

Spotlight Trade – SHLD

SHLD has risen 53.77% 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

The Rounded Bottom Breakout (RBB) is a pattern that Rick Saddler, founder of Hit & Run Candlesticks, recognized and named for its rounded bottom appearance on the daily chart. In many cases, it looks like the letter “U” with a flat bottom. This is because price drops down during the downtrend, it then rests or stops dropping for awhile and then it starts to move up.

The Rounded Bottom Breakout (RBB) is a great chart pattern that signifies that a downtrend has ended and an uptrend is beginning. Traders call this a “trend reversal” pattern. So, the RBB is a type of trend reversal pattern. There is no guarantee that this or any other pattern works every single time, but as you learn how the pattern develops, you can understand why the odds are stacked for a downtrend reversal.

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

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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 time.  That time could be one to 30 days for example.

From that watchlist, 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.

The Price Action is Encouraging. Posted at 7:54 AM EDT

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The Price Action is Encouraging.  The question is can it break through resistance?

The price action Monday was very encouraging.  I kept going through charts and must admit the temptation to break my rules was strong.  During the RWO session yesterday I marked up the index charts to illustrate where I would see proof of a reversal.  My plan and the discipline to stick to it kept me taking the leap.  With the Dow futures posting overnight lows of -60 points once again confirmed that sticking to a plan is the right thing to do.

To be honest, there are times when sticking to my plan has at times cost me money.  We have all seen a reversal that rips higher and never looks back.  At those time you want to kick yourself for sticking to a plan, however, most of the time, the plan will save you from yourself.  I can show you years of statistical data to prove that sticking to a plan works.  It shows that following a discipline (a process) that a plan provides is priceless.

Boring right?  Who wants to follow a bunch of rules?  A simple question to ask yourself if you trade without a plan; Is your account growing consistently?  If your answer is no, then the question has to be are you willing to change?  If you answer that question with an emphatic YES, then you have made a breakthrough.  Your next step is clear.  If you answered No; my suggestion would be to stop trading right now!  Find an advisor that will put you in some diversified mutual funds.  You and thank me later.

On the Calendar

Today we have a couple of market-moving reports on the Economic Calendar.  First up we will get a reading on Housing Starts at 8:30 AM Eastern time followed by Industrial Production at 9:15.  Between these big report, we have another Fed speaker with something to say at 9 AM.  Today we have 53 companies reporting as we ramp this earnings season.

Action Plan

In the last hour, the futures have been climbing back toward positive gaining almost 50 points.  The rally is mostly a result of the big bank earnings on BAC and GS.  Their numbers were positive, but I have to say looking at the charts there is nothing that impressive.  I plan to be cautiously optimistic today when looking for new positions.  I will not be at all surprised to see a retest of overnight lows, however.  Please keep in mind the indexes are right at the point where a failure to break the downtrend is likely to occur.  The conditions are perfect for a whipsaw so plan accordingly.

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Trade wisely,

Doug

Blue Ice Failure, Bearish h Pattern, Inverse ETF

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Blue Ice Failure, Bearish h Pattern, Inverse ETF

 

Blue Ice Failure, Bearish h Pattern, Inverse ETF All three, the Blue Ice Failure, Bearish h Pattern, Inverse ETF’s are proven and important tools and strategies we have in the Hit and Run Candlesticks trading tool box. The market is not always bullish and we traders need tools like this from time to time.

We hope you can have the same success we have with the strategies. If you would like to take your success to the next level, we offer Private Coaching, Educational manuals.

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Video Replay Topics

 

Membership Benefits

  • Focus during the day is on trading and trading education
  • Learning about chart patterns – what are they and how do they work
  • Candlestick signals – which ones matter and which ones don’t
  • Trends – just how important are they
  • Trend lines – how to draw them, from where to where
  • Learn more Click Here

Bearish “h” Pattern

The Bearish “h” pattern looks like the letter “h” and is considered an uptrend reversal pattern. It forms as part of down trending price action. You might say that this is the upside down version of the Bullish J-Hook pattern. As price pulls back from a swing high, the key is to look for a brief rally with three or four candlesticks that have higher highs because this may be part of the Bearish “h” pattern. After this, price stops moving up and start moving sideways. The highs of the candlesticks in this part of the “h” pattern stay in the same price range. You can literally draw a box around the candlesticks that form the top of the Bearish “h” pattern. Price then starts to move lower and breaks down and out of the sideways price action.

Blue Ice Failure

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.

Investing and Trading involve significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks or it’s associates should be considered as financial or trading advice.

All information is intended for Educational Purposes Only. Terms of Service

Earnings Season Begins. Can The Big Banks Reverse Bearish Price Action? Posted at 7:58 AM EDT

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Earnings Season Begins.  Can The Big Banks Reverse Bearish Price Action?

Earnings Market Price ActionThe current downtrend and the choppy bearish price action is without question challenging for all traders.  It tests our ability to maintain discipline and follow a set of rules.  I have been trading for 27 years and can tell you honestly that dealing with choppy markets never gets easier.  Temptations and distractions are everywhere.  Sitting here day after day doing nothing but watching the market grind is frustrating to be sure.

With a couple of big banks reporting today, we kick off the second quarter earnings season.  However, we also must realize that today is the last trading day before a three day weekend.  Personally, I’m hoping the banks can reverse the downtrend, but my desire is not a good reason to trade.  As the sole owner of my trading business, the responsibility to maintain discipline rests directly on my shoulders.  I take that very seriously because my paycheck depends on the fact that I do.

On the Calendar

Along with the drama of the earnings kickoff, there are reports of note on the Economic Calendar.  At 8:30 AM Eastern we will get the weekly Jobless Claims number as well as a reading on the PPI number.  At 10:30 AM Eastern Consumer Sentiment number will be reported.  My guess is the PPI number will the one most likely move the market this morning.

Although the market is closed Friday, at 8:30 AM Eastern the Consumer Price Index and Retail Sale numbers come out.  Business Inventories report at 10 AM.  Both the CPI and the Retail numbers are market-moving reports.  With the market closed, we have to consider the possibility that Monday may produce a gap.  Plan accordingly.

Action Plan3 day weekend price action

My plan for the day is simple.  Manage my existing positions!  While I will prepare for new positions, I will have Monday in mind.  I see no reason for adding new trades today the potential for risk is simply too high.  I have no desire to ruin a three-day weekend worrying about a bunch of new positions.  Take the day off and do something fun.  Make it a 4-day weekend and enjoy yourself!  I can promise you the Market won’t care!

I wish you all a wonderful weekend.

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Trade wisely,

Doug

The Bears Continue to Outnumber the Bulls

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The Bears Continue to Outnumber the Bulls

The Bears continue to outnumber the BullsThe Bears continue to outnumber the Bulls yet another day. Yesterday’s Harami candle gave no help to Tuesdays Hammer causing price to close below the 50-sma (daily chart)

In the Hit and Run Candlesticks Trading Room, I have spoken several times about the 60-min chart and that price is below the 200-sma. Yesterday the Bears were able to close price below the 200-sma on the 2-hour chart. A few banks report today, and weak reports will likely drop price into the 4-hour 200-FWL (our dotted deuce line)

Bottom line here the SPY (SP-500) and all its friends are looking pretty sad; there is a lot of weight put on the banks reporting today.

FREE Trade Idea – Today is the last trading day of the week –  No trade idea offered today.

Use today as a day to take profits and count your money. Use today to reflect on your trading this past week then take your dog for a walk.

Spotlight Trade – CVI (Short)

CVI –  Has fallen 12.25% since we posted the trade to our subscribers. CVI printed a Bearish candlestick top followed by a Blue Ice Failure. Yesterday price closed on the 200-sma, and the chart still looks like price may drop further.

Blue Ice Failure Pattern Basics

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.

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

Members trade ideas below reserved for subscribed members

Scanned from Tc2000  |  10-15 trade ideas daily

**No trade ideas today

© 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.

FREE Swing Trade Ideas

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Yesterday’s Hammer could be a game changer with Bullish follow through

Yesterday’s Hammer could be a game changer with the right follow throughFrom a Bull’s Eye – SPY:

Yesterday’s Hammer could be a game changer with Bullish follow through. The price fell to our lower horizontal support line marker, a combination of Candlestick price action and the (VSTOP) indicator we have on a chart. The before the close price rallied back to close above the 34-EMA which formed a Hammer Candle Signal.

A run to $237.85 would not be a surprise, and we could even see a $237.85 breakout that would be a strong bullish sign – BUT everything needs to work out.

The Bears need to step aside, and the Bulls need to take on and beat the $237.85 resistance line.

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FREE Trade Idea – SSI

Daily Chart – Double bottom, Rounded Bottom Breakout (RBB) followed by a PBO flag and a bullish Morning Star signal. On the three day chart, I see a Bullish Engulf, with follow through and holding above support.

You can see more detail and our complete trade plan for NAT in the member’s area of our website.

Spotlight Trade – BLDP

BLDP –  Has climbed higher (22.55%) since our members trade ideas on April 5,

The Bullish trend leads to a minor pull back that gave us a bullish Engulf buy alert which leads to a breakout and a members trade idea.

Bullish Morning Star

If you’ve ever wished upon a star, I hope that that star was a Morning Star candlestick pattern. Unlike the Evening Star, an omen that hints at bad things to come (i.e., low stock prices), the Morning Star is a sign of good fortune. If you spot this bullish reversal signal, which is composed of three candles, you can expect stock prices to increase. Although the bears have been in control, the bulls are ready and able to take over. To learn how to spot the Morning Star signal, how to decipher its characteristics, and how to interpret its meaning, just Click Here 

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

Members trade ideas below reserved for subscribed members

Scanned from Tc2000  |  10-15 trade ideas daily

 

WPRT© 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.

Encouraging Market Price Action but Could It Be a Bull Trap? Posted at 8 AM EDT

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Encouraging Market Price Action but Could It Be a Bull Trap?

One of the many issues I struggled with as a trader was chasing bullish price action.  I had somehow picked up the notion that to be successful as a trader it was necessary always to catch the perfect entry.  When I would see even the hint of bullish price action, I would leap in with both feet.  As a result, my trading account bounced around like a Yo-Yo on a string.

Of course, sometimes I would be right, and the rewards made me feel like a trading genius.  When I was wrong, which was about 50% of the time, I felt horrible as I waved goodbye my profits.  It took me years to learn my problem was one of prediction.   I would see and Hammer Candle Pattern like the one that formed yesterday on the SPY and the DIA.  I would jump in predicting the Bulls were back!  However, what I found about half the time is that I had stepped right into a Bear trap.

I suffered beating after beating ( I guess I’m a slow learner) before I realized price action is unpredictable.  That Hammer Pattern would blind me to the overall price action.  I would ignore the fact that the chart was not only still in a downtrend but obviously still under resistance.  I would never notice that the hammer formed in a consolidation, not at the bottom of a selloff as the books I had studied displayed.  The truth is I so badly wanted a move higher I would leap to conclusions well before the price had confirmed anything.

On The Calendar

On the calendar today we have Import and Export prices at 8:30 AM Eastern, a Fed speaker at 10 AM, the Petroleum Status Report at 10:30 AM, and the Treasury Budget at 2 PM.  The import/export price can at times move the market from time to time.   The big number of the day will be the Petroleum Status which will often move the market.  On the Earnings front, we have 29 companies reporting today to keep us on our toes.

Action Plan

Futures currently are suggesting a slightly bearish open as I write this, so I want to continue to be cautious.  The Hammer Candle Pattern gives me a little encouragement that the Bulls could take over.  However, I will at a minimum need to see an upside follow through breaking the downtrend before I trust the Bulls strength.  Even then I have to acknowledge there is still resistance closely above that still needs to be dealt with, before a clear path higher emerges.

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Trade Wisely,

Doug