Stocks opened flat in the SPY and QQQ, but the DIA gapped down about four-tenths of a percent.  After a little sideways roller-coaster action, all 3 major indices sold off late to end the day lower.  The only signal printed on the day was Bearish Harami in the QQQ.  For the day SPY and QQQ both lost 0.68% and DIA was down 0.95%.  The VXX was flat at 18.60 and T2122 rose again in the overbought territory to 92.25.  10-year bond yields fell significantly again to 0.824% and Oil (WTI) gained a percent to close at $42.17/barrel.  For the week the large-caps were both down about eight-tenths of a percent while the QQQ was indecisive and off just two-tenths of a percent.

On Saturday the FDA authorized emergency use of the REGN monoclonal antibody treatment (similar to part of what was given President Trump) after a study on non-human primates indicated benefit. On Sunday, White House Vaccine Czar Slaoui told reporters the first vaccinations could take place in mid-December.  However, he also said the best-case hope is to get the first of two jabs done for up to 20 million of the priority people before year end, with widespread availability in later Q1 or Q2, and getting to children by mid-year 2021. 

Then overnight, AZN reported that its vaccine was about 70% effective on average. (It was trialed in 2 dosages; one was 62% effective and the other 90% effective.  Both require two injections, on month apart.)  While less effective than the two US vaccines, the AZN vaccine does not require anything more than typical refrigeration (30-40 degrees F) which makes it far easier to distribute and administer than the US vaccines.  And finally, MRK announced it plans to acquire privately-held OncoImmune, which is in late-stage clinical trials of a drug that shows promise as a respiratory treatment for Covid-19 patients.

On the virus front itself, infections continue to rage as the US.  This surge has raised the US totals to 12,590,220 confirmed cases and 262,711 deaths.  The 7-day average of new cases to 172,789 while the average deaths rose to 1,547/day.  47 states are in the White House Task force’s “red zone.”

Overnight, Asian markets were mostly green, with Japan (-0.42%) the lone holdout.  Thailand (+2.24%), South Korea (+1.92%), and Taiwan (+1.18%) led gainers, but the rally was broad.  There is a similar situation in Europe so far today, with just a handful of red on the board.  Among the big 3 bourses, the FTSE is flat (+0.02%), while the DAX (+0.50%) and CAC (+0.41%) are up at this point in their morning.  As of 7:30 am, US futures are pointing to a green start to the day.  The DIA (+0.59%), SPY (+0.51%), and QQQ (+0.29%) are all pointing to positive opens.

The major economic news for Monday is limited to Nov. Mfg. PMI and Nov. Services PMI (both at 9:45 am) and a single Fed speaker (Daily at 1 pm).  The only major earnings report before the open is WMG.  However, after the close, A, CBT, CENT, CENTA, and URBN report.

The holiday-shortened trading week appears to be kicking off with the bulls in charge. However, remember that we have been range-bound for a couple of weeks and the very short-term trend has been a pullback with all-time high resistance above and some support just below.

With more positive vaccine and treatment news, obvious expectations would be for a rally. However, Mr. Market seldom does exactly what the consensus expects. We have a couple of days off, Black Friday and Cyber Monday all just ahead. So, there’s also the possibility of hedging or lightening up in front of those events. Just be careful.

As always, maintain discipline with your trading rules and don’t chase. Respect the trend, support/resistance, and price action. Our job as traders is consistency, not hitting home runs,

Ed

Swing Trade Ideas for your consideration and watchlist: KIRK, NOVA, PLUG, BOOT, TLRY, NIO, EYE, LABU, WK, APPS, TUP, CLF, DSS. 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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