Rick’s Featured Trade Ideas
No featured trade idea today, there is simply too much risk in the market when you combine the FOMC events. Being our own money managers we control, our own risk and our future.
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Yay, FOMC meeting minutes today! This could be a chart game changer.
The SPY remains under pressure yesterday losing .93% and confirming another failed high on high-volume. It’s been almost a month now since we started talking about a possible bearish head and shoulders in the SPY if the Bulls lost the $207.00 area. With $207.00 gone, $204.00 becomes the next possible area of support, and today’s FOMC meeting minutes will play a part in whether $204.00 is controlled by the buyers or the sellers. If the sellers end up controlling $204.00, then the $200.00 area will likely be attacked. If the buyers end up controlling the $204.00 area, we will put our eyes again back on the $207.00 area.
After last night’s members’ e-learning and looking at a few short positions for possible trading, I thought I would look at a few behind-the-scene indicators: On Balance Volume has now dropped below its average; Time Segment Volume has dropped below the centerline; MACD has rolled over.
We suggest you don’t gamble with your money. Remember, cash is a position
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
WMB/Long |RBB| Support | 2-day Engulf | Inverse H&S | Bull “W”
WMB| Plan your trade & trade your plan | May 17, 2016
Possible entry plan idea: Buy box $19.02- $20.68
Possible stop plan idea: Protective stop below $19.02
Swing trade playground: $19.02- $29.50 = 54%
Playground risk reward: 5:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: The SPY ended up closing over the T-Line™ yesterday up .99% tagging the 20 – SMA and helped to confirm yesterday’s higher low. The Bulls seem to be doing a great job keeping us above the $203.88 low and holding us around my very important $207.00 area.
One of my favorite charts is the 4-hour chart, so let’s take a quick look at it. Yesterday’s close remains in the shadows of lower highs; the T-Line™ and the 34-EMA are both below the 50-SMA. Even with yesterday’s bullish move, the sellers still have control.
For the traders out there that follow volume, you probably already know yesterday’s volume was relatively low on the bullish move.
Apple might’ve been the driving force yesterday keeping the market elevated as Apple gaps and closed up 3.71% above the T-Line, basically from an announcement that Buffett is taking a position.
Bottom line, we’re trading both long and short positions realizing the market is just toying with us as it moves sideways in a tightening channel.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
WYNN/Short |H&S | BIF |
WYNN| Plan your trade & trade your plan | May 16, 2016
Possible entry plan idea: Short box $94.40- $89.29
Possible stop plan idea: Protective stop above $94.40
Swing trade playground: $94.40- $76.20 = 19.5%
Playground risk reward: 6:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Friday the SPY closed below the 50-day simple moving average with three lower lows and three lower highs. The SPY may also be painting a bearish “h” pattern along with a bearish head and shoulders to failed highs after the April 20 high, and we’re approaching the deuce magnet.
I peeked at a few indicators this weekend: On Balance Volume (OBV) is suggesting the sellers still have control and Time Segment Volume (TSV) also suggest the sellers have control.
Sorry to be so bleak, but I am just looking at the charts, no emotion. I think we need to see a good strong bull move to reverse the weak attitude of the past couple weeks, or we could see the SPY take a trip to about $201.50 or even farther south. Top to bottom, the 50% retracement is at $196.08.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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