Markets gapped down about half a percent Friday and then and after some grinding climbed back to more or less flat for the day.  The SPY fell 0.12%, the DIA roe 0.13%, and the QQQ fell 0.22%.  VXX gained the better part of 4% to 18.00 and T2122 was flat, but remains in overbought territory at 84.62.  10-year bond yields fell a bit to 0.896% and Oil (WTI) was also flat at $46.56.

Late night on Friday, the FDA approved the PFE-BTNX vaccine for emergency use.  This made it legal to ship the vaccine and shipment began on Sunday.  The CDC also approved the administration of the vaccine on that emergency basis on Sunday, which makes it legal to give the vaccine.  So, it is expected that the first vaccinations will begin at up to 145 sites across the nation Monday (there will eventually be up to 636 sites capable of storing and administering the vaccine).  The struggle now will be to gain wide public acceptance of the vaccine and finding ways to get 330 million Americans through the 636 sites. The most recent poll finds that 50% of the US public say they will not take the vaccine. Meanwhile, most epidemiologists say we need a 75%-80% vaccination rate in order to get the herd immunity effect that would allow life and the economy to return to unrestricted levels.

TSLA announced over the weekend that it is shutting down production lines for the S and X models for 18 days.  Employees will be paid for one week of the shutdown and the company urged the laid-off workers to either apply for fill-in shifts on other model production lines or to volunteer to work for other production lines during the remainder of their unpaid leave.  Analysts believe this move is a signal that demand is lower and sagging for the older models of their electric cars.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,737,267 confirmed cases and 306,459 deaths.  Friday saw another day of big spike in the US of almost 250,000 new cases.  This brings the 7-day average of new cases to 217,600 while deaths are averaging deaths rose to 2,519/day.  The last week focused on the PFE-BTNX vaccine.  This week it is the MRNA vaccine that will go through the same process of recommendation, approval, and then shipping.  The hope is that the first MRNA vaccinations could happen as soon as Dec. 21 if all goes as planned.

Globally, the numbers rose to 72,737,709 confirmed cases and the confirmed deaths are now at 1,620,676 deaths.  As a reference, the world is averaging about 627,000 new cases and almost 11,000 new deaths per day.  In Germany, the Chancellor announced the country would go on national lockdown over Christmas to stem the surge.  This came as the German Health Minister urged fast approval of the BTNX-PFE vaccine, based on the fact the UK and the US had already reviewed and approved the medicine. Meanwhile, in Asia, South Korean schools are closing again and their healthcare system is under strain (using shipping containers as field hospitals at this point).  In Japan, their own Covid-19 task force is meeting to consider stricter countermeasures as cases surge in the 4 largest cities.  In Africa, the Prime Minister of a tiny country (Eswatini) became the first head of state to die from Covid at age 52. 

Overnight, Asian markets were mixed but leaned to the green side.  Singapore (+1.29%), Indonesia (+1.25%), and Shenzhen (+1.07%) led the gainers.  Hong Kong (-0.44%) and Thailand (-0.44%) paced the losing exchanges.  Meanwhile, in Europe, we are very close to green across the board so far this morning.  The DAX (+1.28%), CAC (+1.11%), and FTSE (+0.42%) are typical of the continent with only a flat Switzerland (-0.04%) stopping a green sweep as of mid-day.  As of 7:30 am, US futures are pointing to a gap up to start the week.  The SPY is implying a +0.75% open, the DIA implying a +0.82% open, and the QQQ implying a +0.63% open at this point in the premarket.  

There is no major economic news for Monday.  There are also no major earnings reports on the day.

With no economic or earnings data, the hope surrounding PFE-BTNX vaccinations and likely MRNA vaccine approval are likely to lead to optimism to start the week.  Resumption of stimulus (and government funding extension) negotiations will also play a big role in front of the Congressional self-imposed deadline of Friday.  (They want to break and head home for the holidays.)  So, with that additional impetus, expect a deal on that front this week as well.   All-in-all, the bulls have a lot going for them this week.  However, we remain near all-time highs.  So, be careful.

As always, respect the trend, support and resistance, and price action. Stay disciplined to your trading rules and trust your process. Keep taking those singles and doubles that the market offers you. Don’t try to wring every penny out of every last share. It’s better to sell into strength and book the sure profit. Leave “top picking” to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: T, NUAN, NAT, CHWY, MTCH, KO, HON. CAT, BRMN, TPX, PINS, OMER, ZEN. 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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