Markets gapped up Wednesday and generally ground sideways the rest of the day.  The DIA ground slightly lower, the QQQ slightly higher, and the SPY almost dead sideways.  On the day, DIA was flat (-0.10%), SPY up (+0.76%), and QQQ led the way (+2.24%) on a bounce-back after a couple of days of rotation out of the high-tech names. VXX fell 2% again to 19.03 and T2122 fell slightly to 88.00.  10-year bond yields rose to 0.96% and Oil (WTI) was flat at $41.52/barrel.

The only major economic or business news revolves around the virus, methods to control the pandemic or vaccine trials. If you don’t like that sort of news, this post will not please you.

The virus continues its massive surge. Wednesday saw another record 142,906 new cases and 1,479 deaths.  This raised the totals to 10,708,728 confirmed cases and 247,398 deaths. The 7-day average of new cases to 129,475 while the average deaths rose to 1,080/day.  In sum, hospitals nationwide are coming under strain as they now are nearing capacity.  As an example, El Paso Texas has 20 mobile morgues (refrigerated semi trailers) in place as their system is overwhelmed.  In addition, that city has begun looking for suitable brick-and-mortar overflow capacity such as an ice rink.

Wednesday, one of President-elect Biden’s virus advisory group said that a 4-6 week national lockdown could control the pandemic until vaccines are available and the worst of flu season is passed.  Obviously, Biden would not have any authority until at least January 20 and even then there would be massive resistance from business interests and groups.  For example, polls (depending on whether you believe polls) show that fewer than half of Americans would comply with another lockdown order. However, this advisor’s talking point may still throw a scare into markets now.  In positive news, MRNA has reached its own first threshold of cases so that preliminary efficacy data can be released.  So in the next day or so, expect another announcement like the PFE announcement last week (an initial view of the effectiveness of the MRNA vaccine.

Overnight, Asian markets were mixed, but mostly red.  Japan (+0.68%) and Malasia (+1.32%) led gainers while the losses were widespread, but moderate.  In Europe, we see the same picture as markets are mostly red, with a couple minor spots of green.  Among the 3 major bourses, the FTSE is down 0.60%, the Dax down 0.96%, and the CAC down 1.12% at this point in their day.  As of 7:45 am, US futures are also pointing to small gaps at the open.  The DIA is implying a -0.60% loss, the SPY implying a 0.32% loss, and the QQQ implying a +0.18% gain at the open as of now.

The major economic news for Thursday is limited to Oct. Core CPI and Weekly Jobless Claims (both at 8:30 am), Crude Oil Inventories (11 am), Oct. Federal Budget Balance (2 pm), and a Fed Speaker (Williams at 2 pm).  Major earnings reports include ENR, IGT, MTOR, PDD, SBH, TCEHY, and TDG before the open.  Then after the close AMAT, CSCO, and DIS report.

Volatility is likely to continue. A lack of hard news is likely to be filled with speculation over the pandemic. mitigation measures, and vaccine hopes. Remember to not get caught up chasing moves that you have missed. Fear of missing out (FOMO) is a deadly condition for traders. You don’t NEED to trade every day. There will always be either another stock setup down the road. So keep locking in profits and maintain your discipline.  Stick to your trading rules, follow the trend, and respect support and resistance. 

Ed

Swing Trade Ideas for your consideration and watchlist: SIRI, PZZA, MRNA, INTC, GILD, CRUS, ACMR, ABT. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers 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.

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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.

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