Rick’s Featured Trade Ideas
I/Long |Breakout | RBB | Morning Star Signal |PBO J-Hook
I| Plan your trade & trade your plan | May 11, 2016
Possible entry plan idea: Buy box $3.64- $4.18
Possible stop plan idea: Protective stop below $3.64
Swing trade playground: $3.64 – $5.47 = 49%
Playground risk reward: 6:1 + depending on | entry | exit | stop
Yesterday’s featured trade idea SONS was bought at $8.52 while in the buy box. The chart remains bullish with a doji candlestick yesterday closing over the T-Line.
Last night we had a great members’ e-learning class talking about the rising 20-day simple moving average and utilizing On Balance Volume (OBV), using both of them to narrow down your watch list for your trade ideas.
SPY: T-Line ™ chart suggest the buyers are in control
7:00 am: Another terrific swing trading day yesterday with the SPY closing at $208.45 or 1.24%. The Bullish Engulf, Doji, followed by a positive, bullish close is what we call a Doji continuation pattern. This pattern suggests the Bulls are in control, and it looks like they may be headed for the April 20 high. Of course, this is contingent on the bulls controlling the $207.00 line. As seasoned traders, we know that price may consolidate for a day or two before moving up, and as seasoned traders, we know to have patience and allow the chart to work. We also know as seasoned traders to be respectful of price action if it runs into trouble and to pay attention to support and resistance.
The SPY and the DIA closed over the 20-day simple moving average yesterday, and today, tomorrow or Friday, all eyes will be on IWM, IYT and the QQQs to see if they can follow and capture the 20-day simple moving average.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
SONS/Long |Breakout | PBO to support | Flag |Rising T-Line™
SONS| Plan your trade & trade your plan | May 10, 2016
Possible entry plan idea: Buy box $8.05- $8.70
Possible stop plan idea: Protective stop below $8.05
Swing trade playground: $8.05 – $13.10 = 62%
Playground risk reward: 5:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart sellers in control, and candlesticks suggest bulls are trying.
7:00 am: Friday’s Bullish Engulf came within pennies of tagging one of our horizontal support lines followed by Monday’s bullish Doji (closing high on Friday’s Bullish Engulf) is suggesting that price may try to win over the $207.00 area once again. A close over $207.00, as we’ve stated several times in the past couple weeks, is what the Bulls need to take on the April 20 highs which could help push price into the all-time highs. The 20-day simple moving average is resting at $207.52, and if the Bulls can close over the 20-day simple moving average, this will show strong bullish intention. Follow-through is very important here because of that left shoulder hanging out in early April.
My T-Line™ chart still suggests the sellers are in control, but the Candlestick signals are suggesting a price turn may be underway. If price falls short of controlling the $207.00 area, the T-Line™ chart will win out and the sellers may win the overall game by cracking the $203.73 support line that the Bulls have recently found support on. Once again, I want to strongly suggest that we pay attention to the $207.00 area and what the paint on the canvas is trying to tell us.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
WIN/Long (Telecom) | J-Hook breakout | Doji back to support | Rising T-Line™
WB| Plan your trade & trade your plan | May 3, 2016
Possible entry plan idea: Buy box $8.92- $9.55
Possible stop plan idea: Protective stop below $8.64
Swing trade playground: $8.92 – $11.95 = 33%
Playground risk reward: 15:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart is cracking
7:00 am: As we thought yesterday, the trend continued to slide with the SPY closing down .56% with a Doji close and now getting slightly oversold. Yesterday’s oversold doji close is very near the 50-day simple moving average and recent price action support, not to mention the 23.6% retracement line. So the likelihood of a short-term relief rally is highly probable. The $207 area remains a very important roadblock for the buyers to get through. Without $207, the sellers from the past couple of weeks remain in charge.
When a chart has been in the sellers house longer than it should have been and when it’s leaving behind a topping pattern, it requires more than just a one or two positive candle moves. We should be very careful not to get tricked into head fakes. One of the hardest things for us to learn as traders is patience — the patience to allow a pattern to form over a few days. The foundation formation is what creates a bullish run — that is the foundation for a bullish trade. As of the close yesterday, the T-Line chart continues to show that the sellers are in control.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
WB/Short (Internet Content) | Bearish “M” Pattern | 2-day Evening Star | 30-min Duce fail
WB| Plan your trade & trade your plan | May 3, 2016
Possible entry plan idea: Short box $23.85- $22.21
Possible stop plan idea: Protective cover above $23.85
Swing trade playground: $23.85 – $18.63 = 21%
Playground risk reward: 6:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart is cracking
7:00 am: The T-Line™ chart continues to crack, and the bulls failed to redeem the $207 line and weakness continues premarket this morning.
“Remember that a trend will stay a trend until it’s no longer a trend.” For the past 10 days, the market has been controlled by the sellers (a downtrend), and now the $207 area is resistance rather than support. The $203 area is starting to look like the next SPY target/attempted support level, which is very close to my 23.6% fib line.
The bearish evening star that created the sellers activity was on April 20. From there, the sellers have created a lower high / lower low chart pattern that the buyers can’t seem to get out from under. Late last night I took a peek at a few indicators: TSV, MACD, OBV, Money Flow Index, and they all seem to suggest the same thing — that the candlesticks and the trend are suggesting the sellers are in town, and they’re having a good-time party. It will be important to keep your eye on the candlesticks for clues on when the buyers start controlling price. If the buyers can’t stop the party at the $203 level, then the sellers may move the party to just under $200… We’ll talk more about that later.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
EBIX/Long (Software) | Hammer/ Confirmation | Flag | Rising T-Line™
EBIX| Plan your trade & trade your plan | May 3, 2016
Possible entry plan idea: Buy box $48.15- $52.28
Possible stop plan idea: Protective stop below $49.15
Swing trade playground: $48.15 – $63.13 = 30%
Playground risk reward: 13:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart is cracking
7:00 am: When you are a member of Hit-and-Run Candlesticks or Right Way Options, you learn trading techniques that are so very valuable, and you can take them anywhere; such as the meaning behind candlestick signals and patterns, the meaning by Western chart patterns, support and resistance and, of course, price action. When you put this knowledge together, you understand the importance of the $207.00 level on the SPY, and you understand the future chart patterns that could be built based on current chart patterns, candlestick signals and price action. For a couple of weeks now, we have spoken about the bullish and bearish logic behind the $207.00 area in both the morning blog post and in the trading room.
Price closed up .79% or $1.64 yesterday above the 20-day simple moving average, above the $207.00 level and even above the T-Line™. Something we have all learned about candlestick signals is that they require confirmation. Something we learn about resistance is that price action must break through it. Look at your SPY chart and draw a line from the most recent two highs.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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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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Rick’s Featured Trade Ideas
Alaska Trading Cruise July 9, 2017 | Learn More
ONTY/Long (Biotechnology) | RBB patter| Channel breakout | Weekly doji breakout |
ONTY| Plan your trade & trade your plan | April 26, 2016
Possible entry plan idea: Buy box $1.25- $1.38
Possible stop plan idea: Protective stop below $1.25
Swing trade playground: $1.25 – $1.70 = 36.8%
Playground risk reward: 7:1 + depending on | entry | exit | stop
SPY: Trending Bullishly
7:00 am: In a surprise end of the day push, the SPY closed back above the T-Line™ with a three-day low and all five days respecting the Bullish Engulf that was printed on April 18. The low of yesterday’s hammer came within pennies of support and may be the clue that the bulls are ready to take another bite out of the bears and possibly form a bullish J-Hook continuation pattern. For the bullish J-Hook continuation pattern to be formed, the bulls need to swing price above the recent high of $210.92. If the bullish J-Hook continuation pattern is formed over the next few days, it would be the fifth time the Bulls have constructed this pattern since March 1. Providing Janet Yellin and the feds choose their words carefully — or even better yet get out of the way — then I suspect the SPY is on a mission to test the $213.78 high of May 5, 2015. I’ll be watching for pullbacks and consolidation clues around $211.00 | $211.50 | $212.85.
I wrote about $207.00 needing to hold a few days ago, and as of today, it still remains the number the bulls must defend while reaching for new highs.
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