Rick’s Featured Trade Ideas

DATA/Long (Software) | RBB | Rising T-Line™ |PBO breakout |

DATA| Plan your trade & trade your plan | May 2, 2016
Possible entry plan idea:   Buy box $49.72- $51.83
Possible stop plan idea:   Protective stop below $49.72
Swing trade playground:  $49.72 – $61.55 = 24%
Playground risk reward:  11:1 + depending on | entry | exit | stop

SPY:  T-Line ™ chart is cracking
7:00 am:  Friday, the SPY closed below the $207.00 support line. After drawing a few lines and utilizing my Fibonacci tool, it looks like the $203.65 area is trying to lure price into the trap. If the SPY falls prey to the sellers and $203.65, and if the buyers can’t find a reason to be bullish, I suspect $200.00 to $199.75 will see some action.
The transport have slipped below the 34-ema.  Will the 50-sma be support?  The Semiconductor ETF (SMH) has lost its mojo (we have warned of this the last few weeks) and is now looking like $50.80 down to about $49.55 could see some action. The Q’s will likely test the March breakout of February 1, 2016.

All in all, the market is not acting like bullish traders would want it to. Caution not to force the long trades, as there will be many long trades to trade. Just use caution and check your playbook on how to trade in this type of market.  Hit and Run Candlesticks will be adding a few short trades to our game.
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Rick’s Featured Trade Ideas

PRO/Long (Shipping Ports) | RBB | J-Hook Breakout |T-Line™ Run |
SB| Plan your trade & trade your plan | April 29, 2016
Possible entry plan idea:   Buy box $11.97- $11.33
Possible stop plan idea:   Protective stop below $11.97
Swing trade playground:  $11.97 – $13.41 = 50%
Playground risk reward:  5:1 + depending on | entry | exit | stop

SPY:  2ema Leading T-Line™ Down
7:00 am:  We’ve been talking about $207.00 being support for some time now. Yesterday, price hit a low of $206.96 bouncing back up closing at $207.45.  Timing is a very important element in swing trading with the SPY under the T-Line™ and flirting with the $207.00 area.  Long trades, which I think are plenty, just need to be watched a little carefully.  Maybe a little quicker on taking profits and the targets a little closer.  If the SPY slips below are $207.00, the next support area is $203.65.  Overall, it looks like the SPY is headed to the 23.6% retracement line, which is the $203.65 area.  Not being able to regain $207.00+ is what I would be concerned about. The transports don’t look like they’re going to be much help as they are looking like they might want to see $140.00.  SMH may also be a drag on the market; their path is looking like $52.60. The QQQ’s have been damaged by Apple, and their bags are packed, and it looks like they’re headed to $103.85.
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Rick’s Featured Trade Ideas

SB/Long (Shipping Ports) | RBB | J-Hook Breakout |T-Line™ Run |

SB| Plan your trade & trade your plan | April 28, 2016
Possible entry plan idea:   Buy box $1.25- $1.41
Possible stop plan idea:   Protective stop below $1.25
Swing trade playground:  $1.25 – $1.90 = 50%
Playground risk reward:  8:1 + depending on | entry | exit | stop

SPY:  Trending Bullishly
7:00 am:  The SPY chart is suggesting a slow grind to the top, after a boring day yesterday waiting for the feds the SPY finally opened up closing above the T-Line™ and above the previous day’s Doji creating a little Bullish Engulf.

Premarket I see the futures are down which is pushing  the SPY back below the T-Line™ remember the $207.00 area is extremely important for the Bulls to defend, simply put if the Bulls aren’t defending the $207.00 line the bears are attacking the $207.00 line.

Apple dropping yesterday is not helping the market at all today and the dysfunctional market in Asia seem to be holding the US back as well.
A big day for earnings-  (F) Ford beat and now breaking above the 200-sma, I heard on CNBC that 3/4 of the stocks that have reported so far beat on earnings. Over time this should act a positive for the market assuming the trend continues and of course if non-US markets can pull it together. The China Spider ETF (GTC) is having trouble with the 200-sma
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Rick’s Featured Trade Ideas

FB/Short (Internet Content) | RBB Top| Dark Cloud Cover |Lower Highs |

FB| Plan your trade & trade your plan | April 27, 2016
Possible entry plan idea:   Short box $109.95- $107.55
Possible stop plan idea:   Protective stop above $109.95
Swing trade playground:  $109.95 – $101.35 = 7.5%
Playground risk reward:  5:1 + depending on | entry | exit | stop

SPY:  Trending Bullishly – Cation today could be crazy
7:00 am:  I suspect that all the talk today will be about AAPL even more so than the FED, and I suspect if the Fed disappoints like Apple did, this market may be on a crazy roller coaster ride.  Until the ride starts, let’s keep focused on the chart and what it’s up to.  Yesterday, the SPY closed up $.31 with a Doji on the bullish side of the T-Line™.  I’ve talked about the $207.00 area quite a bit over the last few days and how important it is for the Bulls to defend.  The $207.00 area remains very important because it represents a major support area.  If price runs below $207.00, then $203.50 then $201.50 become targets. A bullish rally from there could set us up for a bearish head and shoulders pattern. I can already see that volume in the market has been weakening just by putting a 50-day moving average on the volume bars.  Yesterday I was talking with one of the Hit-And-Run Candlestick members, and they pointed out to me that the money flow index on the SPY has weakened as well as TSV; these are all hints and clues of how the market may react in the future.  On the other hand, On Balance Volume remains bullish.

Always keep your eyes on price and chart patterns, because in my opinion, they are the best predictors of what the market is thinking.  Always be aware of support and resistance, and ask yourself what happens if price falls through one support area.  It’s not complicated; it simply means that the next area of support is the target.

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