After a 1% gap higher at the open and an immediate strong selloff, the bulls stepped in at 10:45 am and never looked back.  The rest of the day was a steady climb to recover the losses of the morning and close the day at the highs.  On the day, the SPY was up 1.48%, the DIA up 2.21%, and the QQQ up 0.55%.  VXX fell again to 33.15 and the T2122 rose again to a very overbought 98.11.  10-year bond yields fell slightly to 0.685% and Oil (WTI) fell for a change, closing at $32.08/barrel.

During the day, BA announced they will lay off 7,000 workers this week, part of their plan to cut 10% of their workforce.  The cuts come on the same day BA restarts the production of its fiasco 737 Max plane and are major order cancellations the company blames on the virus.  In related news, the CEO of AAL told an investor conference they will not declare bankruptcy, because that would mean admitting defeat. However, AAL does plan a 30% reduction in staff.

In tech news, still furious over having his tweets fact-checked for a change, President Trump has lumped TWTR in with everything else he considers “fake news.”  So, he is expected to order a review of a law protecting online outlets against liability from any lies spread by users.  (I don’t know how that works exactly.  It was passed by Congress and signed by a President.  So, I’m not sure how a different President can order it changed.  Still, he is expected to sign the review order today.)  TWTR is obviously on the “enough lies” side of the argument, while FB is on the opposite side because they don’t want to check any of the posts made by their users.

The other big non-economic story today is likely to be China.  After the close, the House sent a China sanctions bill to the White House for signature.  This comes on the same day Sec. of State Pompeo told Congress Hong Kong is not autonomous and no longer deserves special trade status.  Finally, overnight China ratified the new security law (ahead of schedule to spite the US) that has caused the latest uproar.  So, another round of trade war seems quite possible, if not likely.

On the Virus front, the global headline numbers are 5,813,289 confirmed cases and 357,896 deaths.  The ECB said they expect the Eurozone economy to contract 8-12% for 2020.  At the same time, their just proposed $827 billion stimulus fund has not been ratified (and will not be voted on for months) as it apparently has some opposition from countries fearing the tranfer of wealth from rich to poor countries (although notably not from the richest, Germany or France who had proposed the fund.)

In the US, we have 1,745,911 confirmed cases and 102,114 deaths reported to date. The Healthcare Cost Institute (an independent no-profit) released data Wed. showing that the number of daily deaths in the US between April 1 and now is 10% higher than the same days in previous years (2014-2019).  On the legal side, President Trump and other Republicans have attacked and threatened lawsuits over the idea of mail-in ballots.  Their claim is that it would increase the threat of voter fraud, while the counter-claim is that mail-in voting has been in-place for centuries in the US for many groups.

Overnight, Asian markets were mixed again as the US-China tension leads to trade war fears.  However, Europe stocks are green across the board so far today.  As of 7:30 am, US futures are mixed, with the President’s threat keeping the QQQ  red while the S&P looks at a half percent gap up and the DIA at almost a percent gap up at the open.

Major economic news on Thursday includes Apr. Durable Goods, Q1 GDP, and Weekly Jobless Claims (all at 8:30 am), Apr. Pending Home Sales (10 am), Oil Inventories (11 am), and a FOMC Speaker (Williams at 11 am). Major earnings reports include ANF, BURL, CSIQ, DG, DLTR, MOMO, SAFM, SHOO, and TECD before the open.  COST, CRM, DELL, DXC, JWN, MOD, MRVL, TCOM, ULTA, VMW, and WSM all report after the close.

A lot of economic data comes before the open today. It seems the bulls are in control, but US-China and TWTR-Trump tensions could dampen the mood of traders.  Keep in mind that gap and fade (and yesterday re-rally) have been the norm. So, volatility remains the market constant.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

Trade ideas for your watchlist and consideration: PLAY, CAKE, PENN, MU, SHAK, VALE, AAP, AG, SLV, OKE, ASML. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/etfs we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service