Thursday saw a flat open in the Market.  Then after a sideways grind most of the day, a late-day “here comes a day off” rally in the afternoon saw an early close near the highs.  The large-caps printed inside days and the QQQ printed a Bullish Harami on the day.  At the close, SPYA was up 0.39%, QQQ up 0.44%, and DIA up 0.25%.  The VXX was down almost 3% to 16.88 and T2122 (4-week new High/Low ratio) fell, but remains well inside overbought territory at 89.69.  10-year bond yields rose slightly to 0.926% and Oil (WTI) rose to $48.30/barrel.

In another bad sign for BA, one of its just-recertified 737 Max planed had to divert for an emergency landing during its delivery flight to Air Canada (from the Arizona storage facility where 737 Max have been moth-balled during the 18-month flight ban).  The problem seemed to be an engine hydraulic warning, which forced the shutdown of the engine shortly after takeoff.  In other corporate news, FB is shutting down the Irish holding companies that allowed it to shift billions of dollars to Ireland to avoid higher taxes in the US and other countries.  Finally, Sunday BABA announced it is increasing its share buyback plan from $6 billion to $10 billion, but this has not helped the stock as Chinese regulators pressure the company o come in line with Chinese law.

The other major story of the weekend was President Trump’s continued calls for a more generous $2,000 per person direct payment and his not signing the stimulus bill which contains a $600 direct payment (and a lot of pork and unrelated spending).  The net effect is that the unemployment and loan programs expired Saturday.  However, on Sunday night, after strong-arming Republican Senators into agreeing to votes on an increase in the direct payments, his unfounded allegations of election fraud, and his desire to punish Social Media companies by repealing Section 230, he did sign the bill.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 19,573,847 confirmed cases and 341,138 deaths.  As expected, there was a significant falloff in reported new cases and deaths over the long holiday weekend (as state and hospital offices were closed).  However, the 7-day daily average remains 183,773 new cases and the average number of deaths fell to 2,238 deaths per day. The expectation is that cases will soar again in a couple weeks after holiday travel and gathering spread has incubated.

Globally, the numbers rose to 81,217,556 confirmed cases and the confirmed deaths are now at 1,773,724 deaths.  As a reference, the world is averaging about 559,998 new cases and almost 10,128 new deaths per day.  Over the weekend the EU began vaccinations with the PFE-BNTX vaccine.  They are also expected to approve the AZN vaccine this week.

Overnight, Asian markets were mixed in modest trading moves.  Among the exchanges, Japan (+0.74%) was the clear leader to the upside, while Thailand (-2.26%) was far and away the biggest loser.  However, in Europe markets are green across the board so far today.  Among the 3 major bourses, The DAX up 1.52%, the CAC up 1.15%, and the FTSE lags at a flat +0.10%.  This was aided by an unexpected (and not yet ratified) Brexit trade deal. The UK Economic Minister reported that instead of a -6% GDP in 2021, the deal likely means only a -4% GDP.  As of 7:30 am, US futures are pointing to a gap higher.  The DIA is implying a gain of +0.52%, the SPY implying a gain of +0.68%, and the QQQ implying a gain of +0.73%.

There is no major economic news for Monday.  The only major earnings report on the day will be WB before the open.

With no economic or earnings data and still being in the holidays, the bulls may be able to keep prices drifting higher.  However, beware of the possibility of year-end profit-taking and portfolio rebalancing that could lead to selling and rotation.  The resumption of the expired stimulus programs may help, but this came at the cost of more political theatre to come.  Democrats plan to put the $2,000 direct payment to a vote today and the Republicans oppose the idea.  (Many see this as a GOP power struggle between outgoing President Trump and rest of his party led by Senate Majority Leader McConnell.)

It looks like a strong open today.  You will be very tempted to chase, but consider where markets are in general (near all-time highs) with political theatre ahead and expecting more bad virus news soon.  As usual, my advice is to focus on the process and chart, keep locking in profits and maintain your discipline.  Follow the trend, respect support and resistance, and don’t chase the moves you have missed. 

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas Today. 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