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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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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