The bulls just kept on chugging Monday.  A slight red open was met with steady, but slow buying until 2 pm.  From there, stocks ground sideways to slightly down into the close.  On the day, the SPY gained 0.41%, the DIA gained 0.39%, and the QQQ gained 0.30%.  VXX was essentially flat at 33.42 and T2122 climbed further into the overbought territory at 93.18.  The 10-year bond yield climbed a bit to 0.667% and Oil (WTI) also gained slightly to $33.56/barrel.

Markets seem to be focusing on the impending (and further out) economic recovery, regardless of current civil unrest and government reactions.  UBER, LYFT, and SBUX are the latest to say the unrest is impacting their operations, as they are city-focused companies. In Silicon Valley, CEO Zuckerberg will address a company “town hall” for FB after several hundred employees staged a “virtual walkout” partially related to this on Monday. 

On the trade war front, China has apparently ordered state-controlled companies to stop ordering US farm products (particularly soybeans).  This seems to come in retaliation for the US response to a new security law covering Hong Kong.  However, it is likely just the renaming of an actual lack of need that will reverse once China’s economy has fully recovered and their Pork producers have herds re-established.  (China has been fighting African Swine Fever for close to a year and soybeans are a primary hog feed.)

On the Virus front, the global headline numbers are 6,394,415 confirmed cases and 377,971 deaths.  While Brazil remains the epicenter of the current wave, Rio de Janeiro will begin opening its economy today.  Meanwhile in Europe, Spain, Italy, and the UK all reported their lowest number of new cases or deaths since early in the outbreak.

In the US, we have 1,859,693 confirmed cases and 106,927 deaths reported to date.  In a worrying sign, CA reported that their number of new cases has risen 11% in the last 5 days.   On the other side of the country, the NY and NJ numbers continue to improve as they are opening further.  The Congressional Budget Office released estimates Mondays that coronavirus will cost the US 3% of its economic growth (over the course of 10 years).

Overnight, Asian markets were in the green across the board again.  So far Tuesday, European stocks are following suit with the major bourses each up 1-4% at midday.  As of 7:30 am, US futures are pointing to gap higher of 0.6%-0.7%.

There is no major economic news on Tuesday.   Earnings reports are also very light with only a few that could be considered major companies. On tap for the day are DBRL, DCI, and DKS before the open as well as CRWD and ZM after the close.

Once again, the bulls see nothing but blue skies and optimism.  They certainly continue to have the momentum and trend.  However, we still see big intraday swings remain on most days.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  However, don’t bet against the trend unless you’re doing it to hedge.  Above all, don’t chase or predict.

Ed

Trade ideas for your watchlist and consideration. MAR, RCL, FAS, GRUB, DISH, ALGN, TLRY, HLF, JD, ADP. Trade your plan, take profits along the way, and smart. 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