Large-caps gapped higher Monday on the news of the MRNA vaccine 94% (first look) effectiveness report.  After early follow-through, that market vacillated the rest of the day except for a strong surge the last 5 minutes.  As a result, both large caps printed white Hammer type candles and the QQQ printed a large-body white candle.  On the day, DIA was up 1.67%, SPY up 1.25%, and QQQ up 0.78%.  The VXX lost another 2% to 18.65 and T2122 rose to extremely overbought at 99.03.  10-year bond yields rose again to 0.909% and Oil (WTI) was up over 3% to $41.44/barrel.

After the close Monday it was announced that TSLA will be joining the S&P500 in December.  The CEOs of both FB and TWTR will face Senate Republicans on Tuesday in a session that will likely focus on perceived “silencing conservatives.”  However, they may not get any quarter from the Democrats, who are likely to hammer them over not being more restrictive on lies and misinformation

On the virus front, the spread continues unchecked.  This surge has raised the US totals to 11,540,461 confirmed cases and 252,684 deaths. The 7-day average of new cases to 158,363 while the average number of deaths rose to 1,170/day.  Meanwhile, hospitalizations continue to rise, climbing to over 73,000 on Monday. In response, new restrictions and partial lockdowns continue from coast to coast as states continue to have to act on their own to control outbreaks.

Globally, the numbers rose to 55,466,741 confirmed cases and the confirmed deaths are now at 1,334,671 deaths.  New restrictions and lockdowns are taking place in Europe as well, even as countries that locked down a couple weeks ago (such as Germany) are starting to report progress in getting new case numbers to plateau. 

Overnight, Asian markets were mixed, but leaned to the green side.  Singapore (+1.11%), and India (+0.74%) led the gainers.  Meanwhile, Shenzhen (-0.89%) paced the losers with other exchanges showing modest moves.  In Europe, markets are mixed, but lean heavily red so far today.  The FTSE (-1.12%), DAX (-0.27%), and CAC (-0.29%) are relatively typical across the continent.  However, there are a couple of gainers such as Greece (+0.55%).  As of 7:30am, US futures are pointing to a lower open on the large caps, with DIA implying a -0.59% and SPY implying a -0.46% open.  The NASDAQ is implying a modest open to the up side at +0.25%.

The major economic news for Tuesday includes Oct. Retail Sales, Oct. Export Price Index, and Oct. Import Price Index (all at 8:30 am), Oct. Industrial Production (9:15 am), Sept. Business Inventories (10 am), and 2 Fed Speakers (Bostic and Daily both at noon).  Major earning releases include ARMK, HD, KSS, SE, and WMT before the open.  There are no major earnings announcements after the close.

WMT and HD posting beats this morning is helping futures. However, the worsening virus conditions and local/state mitigation measures are sure to continue to give volatility. Big tech names may get beaten up as FB and TWTR take their turn in the shooting gallery today. So, even with positive trends and the recent good vaccine news to help bulls, be careful.

Remember that price moves in a zig-zag pattern. Don’t be the last one buying on the zig unless you can handle the zag to come. There will always be either another stock setup down the road. Keep locking in your profits, maintain your discipline, and work your trade plan.  Stick to the trading rules you have built, follow the trend, and respect support and resistance.  Good trading!

Ed

Swing Trade Ideas for your consideration and watchlist: ESNT, SHOO, AEO, MFC, KNSL, DAR, ERIE, WING. 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.

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