Big Resistance

Big Resistance

Big ResistanceFriday’s free trade in PSEC is working out nicely.  Those that took the trade should have a nice little profit as it bounces off of support.  Today I’m looking a counter-trend trade running into Big Resistance.

T is on a very nice bull run but has run headlong into a big price resistance level.  I am not looking for a big selloff, I’m only looking for T to stay below 39 for a short-term pullback in reaction to the resistance.  Consider buying the 22 DEC 39 Puts to take advantage of a small swing lower.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

Yesterday we saw some selling on worries the Tax Reform bill would not get finished up.  This morning sentiment quickly changes as news of a vote and passage could happen as early as today.  I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle.  Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early.  Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily.  Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher.  I think the road ahead could be a bit bumpier than we have seen this week.  Plan carefully and remember to take profits.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Bottoming Pattern

Bottoming Pattern

Bottoming patternYesterday Lottery Ticket was a dismal failure as FIT made a full reversal and then gaped down.  How rude.  Today I’m looking at a nice bottoming pattern with an nice entry signal with upside potential.

PSEC has just recently broken a nasty downtrend and is holding support.  The nice candle today suggest buyers are trying to move it higher.  As an added bonus the chart is showing a possible Inverted Head and shoulders pattern and a Rounded Bottom Breakout.  If your interested take a look at the 19 JAN 6 Calls.  A close below the last swing low would be a good reason to exit the trade.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

Yesterday we saw some selling on worries the Tax Reform bill would not get finished up.  This morning sentiment quickly changes as news of a vote and passage could happen as early as today.  I hate politically driven markets because as retail traders our edge simply disappears into the spinning black hole of the news cycle.  Futures are not pointing to a significant gap up that will put a lot of pressure on those that got short early.  Let’s keep in mind that a Dow 25,000 print is not that far away so don’t expect the bulls to give up easily.  Perhaps the passage of tax reform is all the fodder needed to encourage the bulls to push higher.  I think the road ahead could be a bit bumpier than we have seen this week.  Plan carefully and remember to take profits.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Lottery Ticket Trade

Lottery Ticket Trade

Lottery Ticket TradeBefore I tell you about today’s Free Trade Idea I want to let everyone know this trade is not for everyone.  Please keep in mind that all Free Trade Ideas may or May NOT be traded by me and should always be evaluated by you to determine suitability.  Today’s idea is a Lottery Ticket Trade.

I used the term lottery ticket because this trade is trying to make big profit on a small move in the the stock FIT.  FIT is a volatile and very newsy stock.  Today we see nice price pattern with stock trying to recover after a long bottoming pattern.  Consider the 22 DEC 7 strike Calls trading for less than $0.25.  Remember your maximum loss is what you paid for the trade.  A $0.40 gain in the stock could produce a better than 50% gain.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

I have to admit that I was somewhat surprised that yesterdays FOMC announcement turned out to be such a non-event.  The market just yawned and saw nothing to react too.  Today is another big news day with some big after the bell earnings reports tossed in for good measure.  The Bulls are firmly in control buy at the end of the day yesterday price action suggested a little weariness and maybe a rest in the rally is possible.  With all the news the market will have a lot to chew on and potentially react so stay on your toes.  In an all bull market it’s very easy to become complacent because you can buy almost anything at anytime and the rising tide makes you money.  Guard yourself against complacency by staying focused on the only thing that really matters, Price!  The clues will be there if you watch and listen to the market.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Stick with the plan

Stick with the plan

Stick with the planYesterday’s trade suffered a pullback at the open this morning breaking our quick profits winning streak.  However, with FOMC decision today I’m am going to stick with the plan thinking it could still pop depending on the news.  As I said yesterday if TBT breaks support close the position.

Today I’m looking at trade on CMG.  the stock gaped up this morning and is currently pulling back to price support.  If support holds consider a weekly contract bull put credit spread.  Take a look at the 22 DEC 17  series, selling the 305 Puts and buying the 300 Puts.  If CMG falls below $311.50 closing the trade to avoid the risk should be considered.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

FOMC Trade

FOMC Trade

FOMC TradeToday I have an FOMC Trade in mind but before that, the short trade on MU worked out very well.  If you held it through to this morning you should have pocketed better than 40% gain.  Congrats to those who took the trade.

With he FOMC meeting beginning today and the expected rise interest rates I want to pick up some TBT.  Bonds are normally negatively  affected when rates rise. With possibility that the Fed may project more rate hikes next year due to the Tax Reform bill we could get a bigger reaction.  To take advantage of that consider the TBT JAN 33 Calls.   A close below price support would be a good time to stop out.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

Waiting for the Fed. After this FOMC meeting, we will likely be bidding farewell to Chairman Yellen. As her final act, she will likely leave us with an interest rate increase. That’s not a surprise the FOMC has been projecting that possibility for months now. However, there is speculation she could leave us with a nasty surprise on Wednesday in response to the Tax Reform bill. Many are thinking the FOMC could project additional interest rate increases next year as a result. Currently, they are projecting just three. Any additions could make for an interesting market reaction at tomorrow. Plan accordingly. Also, keep in mind that as the market waits for the official FOMC statement price action normally becomes light and choppy. As we reach out for new all-time highs, it would be wise to keep that in mind as you plan the path forward.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Weekly Options

Weekly Options

Weekly OptionsThe Weekly Options idea in MU on Friday has paid off very well with better than 50% gains today.  Congrats to those that took some risk on that position.

Today I have a very similar idea on AABA.  the stock has rallied very strongly off the low but now seems to have bumped into resistance.   Consider the 15 DEC AABA 44.5 Puts for a quick short.  A close above today’s high would be a good reason to stop out of the trade.  Plan to take profits quickly as well is the stock moves in our favor.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

With the Dow Futures pointing to a gap up open and the VIX once again dropping below a 10-handle all is well in the market. Or is it? Let’s keep remember; it was just a week ago that many were calling a blow-off top! The truth is no one knows the future and thinking we can predict it is nothing more than ego trampling common sense. However, if set aside our bias focus on price and listen closely, the market will whisper clues and allow us to take calculated risks. Otherwise know as trade planning! Not just some of the time, All the Time. each and every trade! So the questions is, are you listening or are you still trying to predict? With a gap up to new market highs, the market is whispering to me to avoid chasing this morning and watchful of possible whipsaws. Also with the FOMC on Wednesday, choppy boring price action could lie ahead.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

A Quick Short

A Quick Short

A Quick Short

Yesterday’s Free Trade, UAL, Moved up nicely yesterday and gaped for a one day return of nearly 30%.  Congrats to those who took advantage of the idea.  Now let’s look to the future for a quick short idea.

MU has made a nice recovery but seems to have run headlong into price resistance.  Take a look at the MU 15 DEC 46 strike Put weekly contacts.  This trade will gives us a nice negative delta position with plenty of open interest.   Theta is the enemy here so if MU does not make a move lower by Wednesday 13th consider closing the position.  If MU closes above resistance you may also want to close the position.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

During the evening the Congress passed a continuing resolution that prevents a government shut down. However, their action only extended the battle for 2-weeks. Now the question is will the hoped-for Santa Claus Rally be held, hostage by Congress? Santa held hostage, shame on you Congress! My feeble attempt at humor is simply point out that the market will likely remain sensitive to the spin out of Washington D.C. Of course, the bulls could find their inspiration in the Employment situation number to move higher, but the governmental pressure will be ever-present. Also, weighing on the mind of the market is the upcoming FOMC meeting. As for me, I will continue to focus on price action and continue to trade with the trend. However, I may trade smaller than normal positions due to the uncertainty of the new cycle.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

RBB Pattern

RBB Pattern

 

RBB PatternWith the news that oil supplies are the price of oil has started moving lower.  One very big beneficiary of declining oil price is the airlines. UAL looks to have completed a bottom pattern and breaking above resistance. 

The light volume pullback has now set up one of my favorite trading patterns, the RBB Pattern.  (Rounded Bottom Breakout)  We may be a little early with this idea but the pattern is now providing a very low risk entry.  To take advantage of this idea consider the JAN 57.5 Calls for a quick directional trade.  A move up to just $65 could produce more than a 45% return.  A close below support would be a reason to stop out of the position. 

 

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

With the last 3-days of selling, traders are starting to wonder, Where is Santa?  Gloom and doomers have been predicting the demise of the 2017 bull run all year.  Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened.  Could they be right?  Of course, even a broken watch is right twice a day.  Before diving headlong into a pit of despair take a minute to examine the charts.  The DIA and the SPY are still trending up!  The QQQ’s are suggesting caution, and the IWM is holding a significant support.  Also, take notice that there has been no panic selling and the VIX is not registering fear.  Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December.  Stay focused on price it will provide us the answers.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Possible Support

Possible Support

Possible Support

GRPN has been in a nice trend and looks to have a possible support.  On a low cost stock like GRPN I will normally just by the stock but if your looking for an option trade check out the JAN 2018 5 Calls.  The Jan series has a lot of open interest and the 5 strike has more then 21,000 of open interest.

Consider a stop around $5.45.  The options are inexpensive but be careful not to over trade sizing this trade to large.  Keep in mind GRPN is a rather volatile stock.

P.S. Yesterday’s trade idea opened with a one day gain of more than 8%.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

With the last 3-days of selling, traders are starting to wonder, Where is Santa?  Gloom and doomers have been predicting the demise of the 2017 bull run all year.  Now having strung together the first 3-day selling streak since August they are out in force predicting the market top has happened.  Could they be right?  Of course, even a broken watch is right twice a day.  Before diving headlong into a pit of despair take a minute to examine the charts.  The DIA and the SPY are still trending up!  The QQQ’s are suggesting caution, and the IWM is holding a significant support.  Also, take notice that there has been no panic selling and the VIX is not registering fear.  Historically the so-called Santa Rally appears 7 to 10 days after the beginning of December.  Stay focused on price it will provide us the answers.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

Over Extended

 

Yesterday’s idea on BAC worked out very well even gaping up slightly this morning.  Remember to manage the trades as you see fit.  Some may want to capture the gains of  better than 45% while others may wish to hold for the possibility of more.

Today’s idea is on VZ.  The stock has rocketed up breaking through resistance but seems to have overshot in the short term.  Consider the VZ 15 DEC17 52.5 Put weekly contracts.  Consider this as a very short-term hold as VZ settles back toward price support.

Recently Closed Trades

CSCO 17%BAC 31%CREE 48%WMT 245%NFLX -40%STX 42%2nd CSCO Trade 30%

Today’s Market Prep Note

For those of us that watch price action yesterday left us with more questions than answers.  Clearly, bearish candle patterns were left behind, but the majority of the indexes are still in up-trends.  Things that make you say Hmm?  As of now, only the QQQ is showing technical damage.  From the candle patterns, most traders would expect a big increase in fear, but the VIX seemed only to yawn in boredom.  There is an abundance of clues to suggest caution but also a sense that anything is still possible.  With weighty decisions still to be made in Congress this week expect the market to be very sensitive to the news cycle.  Plan your risk carefully and continue to watch for violent price moves in reaction to news events.

Become a Member Today!

30 Day Trial     Monthly     Semi-Annual     Annual

Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc. is financial or trading advice. All information is intended for Educational Purposes Only.  Terms of Service.

Doug Campbell is not a licensed financial adviser, nor does he offer trade recommendations or advice to anyone except for the trading desk of Right Way Options Inc.

click/touch to navigate
Skip to toolbar