Rick’s Featured Trade Ideas
PTLA/LONG |RBB| H’er H / H’er L | T-Line™ Run | 3-D Piercing Candle
PTLA| Plan your trade & trade your plan | May 24, 2016
Possible entry plan idea: Buy box $25.23- $26.88
Possible stop plan idea: Protective below $25.23
Swing trade playground: $25.23- $33.30=31%
Playground risk reward: 9:1 + depending on | entry | exit | stop
SPY: Can the Bulls keep their pre-market move going?
7:00 am: Morning futures taking on the upper trend line.
The SPY traded in such a tight trading range yesterday that one has to ask, “Is everybody on vacation?” No, everyone’s not on vacation. The market has just not made its mind up whether the Bulls or the Bears are going to take charge and lead. Most chart technicians can make a Bullish or a Bearish argument on the SPY chart, such as most technicians can see the bearish head and shoulders formation, but there is yet to be a breakdown below the neck line. Most bullish technicians know this recent pullback has found support near the 23.6 Fibonacci retracement line and that the Bulls are simply building an army. What all chart technicians agree upon is that price needs to break above the upper downtrend line and clear the $207.00 area that Hit and Run Candlesticks has been talking about for about the past two weeks.
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All the best to your trading success!
Rick | Hit and Run Candlestick Team
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Rick’s Featured Trade Ideas
ALKS/LONG |RBB| Morning Star | Flag PBO |
ALKS| Plan your trade & trade your plan | May 20, 2016
Possible entry plan idea: Buy box $40.16- $43.79
Possible stop plan idea: Protective below $40.16
Swing trade playground: $40.40- $55.75=38%
Playground risk reward: 9:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Price is still in the sellers’ channel
just as we expected and just as we posted right here on Friday morning before the market opened. “Bounce and relief rally likely,” and the SPY closed up on Friday .63% at $205.49, still closing below the 50-day simple moving average and still in the sellers’ channel.
The sellers remain in control and will remain in control unless the buyers can control the $207 area, which would put them above the downward channel. From a bullish angle, price has found support above the 23.6 fib line, and if you go back to April 1, the buyers have refused to give that line up. This is the main reason I have been watching and creating a watch list for long trades. Typically speaking, if a pullback can hold above the 23.6 retracement line, that pull back is minor and not chart destructive. On the other hand, if the sellers take control of the 23.6, this will put the 38.2 under scrutiny and that may be playing too close to the edge.
We highly recommend caution and to even consider that cash is a position. Most of all, we believe having a plan is the key to success. Taking the one or two minutes to create a trading plan is worth every penny.
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| Bullish Engulf | T-Line™ Bounce | H’er Highs and H’er Lows
WMB| Plan your trade & trade your plan | May 20, 2016
Possible entry plan idea: Buy box $21.54- $22.14
Possible stop plan idea: Protective below $21.54
Swing trade playground: $21.62- $29.85=38%
Playground risk reward: 17:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: Bounce | Relief rally likely today
The SPY has been trending down since the Bearish Evening Star April 20. With a series of lower lows and lower highs, yesterday’s trading closed down .35% and closed with a lower low Doji. As I mentioned yesterday in the trading room and at last night’s webinar a bounce/relief rally is very likely today. The $207 level is still very important for the Bulls to gain back and important for the bears to defend. Because of the recent lower lows there is another strategic level that the Bulls need to take back ($207.75) Which would also challenge the upper trend-line if the attack was within the next few trading days.
As of the close yesterday the only S&P spider select ETF over the T-Line™ was energy ETF (XLE) and it was not overly impressive.
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 | T-Line™ Chart trending down
WYNN| Plan your trade & trade your plan | May 19, 2016
Possible entry plan idea: Short box $91.40- $87.85
Possible stop plan idea: Short stop below $91.40
Swing trade playground: $91.80- $76.20 =16%
Playground risk reward: 7:1 + depending on | entry | exit | stop
SPY: T-Line ™ chart suggest the sellers are in control.
7:00 am: FEDS Hawkish, market down, dollar up, XLF up, OIH down
It doesn’t appear that the market likes the Fed decision of raising rates in June, or for that matter, any time. As of April 20, the SPY has produced lower highs and lower lows. Yesterday confirmed another low swing. The SPY found support near the $203.90 support line, but I am finding it a little hard to believe that $203.90 will actually support price in the current market while in the current downtrend without a major bullish reversal signal.
Based on a couple Fibonacci lines and a little support and resistance work, I see a suggestion that $201.30 may be the next supporting line followed by $199.50-ish.
XLF, the S&P financial ETF, fared quite well yesterday closing with a Bullish Engulf; we still need to see confirmation above $23.27 and a close above the downtrend line overhead.
OIH, the oil services ETF, is forming a bearish pattern that we will be talking more about in the trading room today. USO United States Oil Fund has found the 200–SMA, and we may see a little profit taking from here.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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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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Rick’s Featured Trade Ideas
No Featured Trade Ideas Today
SPY: 2-hour chart under pressure, under $207.00 warning
7:00 am: Retail is getting hammered, and it looks like Nordstrom (JWN) is its newest victim while Macy’s has been feeling downward pressure for some time now. Walmart, the king of retail, looks to me like it’s pharmacy needs to stock up on aspirin because it’s about to have a headache.
The overall market is starting to look fairly weak. The SPY is back below the $207.00 support level and the 2-hour chart looks as if it’s ready to break down through my deuces. The QQQ’s are already below the deuces with support about to 2% below. IWM has slipped below the deuces currently forming a bearish “h” pattern while the diamonds are hanging on by a thread. The transports (IYT) are in horrible shape forming a multicolor ice failure along with a bearish “h” pattern.
As always any positive catalyst can turn the charts positive, but at the moment, the major indices are just not looking so good. There’s no doubt we’ll find some long charts, and we will make money, but they must be traded differently and with caution. A few short trades at least on your watch list might be prudent and as always remember cash is a position, too.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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Rick’s Featured Trade Ideas
SDLP/Long |20-sma trending | RBB |multi doji bottom |PBO
SDLP| Plan your trade & trade your plan | May 12, 2016
Possible entry plan idea: Buy box $5.21- $5.59
Possible stop plan idea: Protective stop below $5.59
Swing trade playground: $5.21 – $7.90 = 49%
Playground risk reward: 11:1 + depending on | entry | exit | stop
Yesterday’s featured trade idea was bought.
Still holding SONS and LNKD; doing well for us.
SPY: T-Line ™ chart suggest the buyers are in control.
7:00 am: The SPY showed a little weakness yesterday closing below the T-Line and the $207 area losing .94%. As we have stated many times over the last couple of weeks, the $207 area is very important to both the Bulls and the bears. Now that we closed back down below the $207 area and the T-Line, that sets up the May 6 candle to be tested. The importance of the May 6 candle is that it tested the 23.6% Fibonacci line. And one thing for sure in the chart is that the price consolidation is causing both the 20- and 50-day simple moving averages to tighten up. The tighter they get the more likely a trend direction is to happen.
IYT, the Dow Jones Transportation Index, played hard yesterday and ended up in the nurse’s office closing with a classic blue ice failure and an accompanying bearish engulf on volume. IYT may put a drag on the overall market. Here at Hit-and-Run Candlesticks, we’ll be keeping a very close eye on it.
Trading knowledge ignites successful stock trading.
All the best to your trading success!
Rick
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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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