Markets gapped higher Wednesday on inauguration hopefulness.  After the open, the bulls continued a steady sally the rest of the day.  All 3 major indices closed at new all-time high closes and toward the top of their candles.  On the day, the QQQ was up 2.33%, SPY was up 1.38%, and DIA closed up 0.79%.  The VXX lost almost 2% to 16.31 and T2122 climbed deeper in the overbought territory at 92.82.  10-year bond yields fell to 1.077% and Oil (WTI) was up slightly to $53.24/barrel.

The Biden inauguration filled most of the day’s news cycle.  However, the Democrats also took control of the Senate on the government front.  Among the executive orders President Biden signed were the rejoining of the Paris Climate Agreement, rejoining the W.H.O., and a mask mandate covering all federal property and federally-regulated public transport.  New White House Chief of Staff Klain also issued a memo freezing all last-minute changes former-President Trump tried to enact (such as dropping travel restrictions for Brazil and Europe).

A report from CINNO Research says that QCOM’s market share in China shrank over 48% year-on-year, due in large part to US sanctions on Huawei as well as Chinese smartphone makers looking to domestic sources as US-based companies were seen as unreliable due to the US Government intervention.  QCOM’s Taiwanese competitor MediaTek was the big winner from this portion of the trade war.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 24,998,975 confirmed cases and 415,894 deaths.  This comes as the average new cases has fallen to 197,041 new cases, but deaths remain high (Wed. had the 2^nd highest daily total at 4,374) at 3,140 per day.  New CDC Director Walensky called for more testing and vaccinations on her first day.   This came as NYC had to cancel 23,000 vaccination appointments due to a lack of vaccine.

Globally, the numbers rose to 97,403,475 confirmed cases and the confirmed deaths are now at 2,085,744 deaths.  As a reference, the world average new cases is down to 645,184 per day, but deaths remain high at 13,600 new deaths per day.  In some great news for those who had worries, two new studies just published show that while the UK and South African mutations of Covid do evade some of the immunity provided by the PFE and MRNA vaccines, they do not evade all of the protection from the vaccine.  In fact, enough of the immunity remains that the studies claim the vaccines do provide protection from those variants.

Overnight, Asian markets were mixed, but leaned bullish.  Shenzhen (+1.53%), South Korea (+1.49%), and Shanghai (+1.07%) led the gainers.  On the downside, India (-0.37%) and Malaysia (-0.42%) were the most notable losses. Meanwhile, in Europe, so far today markets are also mixed, but mostly higher.  Among the big 3 bourses, the FTSE +0.11% is flat, the DAX (+0.45%) is up, and the CAC (-0.17%) is down slightly.  The biggest moves are in smaller exchanges such as Russia (-1.33%) and Belgium (+1.12%) at this point in the day.  As of 7:30 am, US futures are pointing to a modestly higher open.  The DIA is implying a +0.21% open, while the SPY implies a +0.26% open, and the QQQ is implying a +0.46% open.

The only major economic news for Thursday is Dec. Building Permits, Dec. Housing Starts, Weekly Initial Jobless Claims, and the Jan. Philly Fed Mfg. Index (all at 8:30 am).  Major earnings reports include BKR, FITB, KEY, MTB, TAL, TRV, TFC, and UNP before the open.  Then after the close, CSX, INTC, IBM, PPG, STX, and SIVB report.

The markets look slightly bullish this morning and that is certainly where the trend points. However, we need to bear in mind we are at all-time highs across the board and extended to boot. President Biden is expected to invoke the Defense Production Act to ramp up vaccine production and distribution today. While this won’t likely have a major market impact, it may affect specific tickers. The bottom line is that we need to be cautious getting too far out on the bull limb since the indices may need rest after yesterday’s pop.

As always, follow the trend, respect both support and resistance, and don’t chase the moves you have missed.  Lock in those profits when you achieve trade goals and stick with your discipline.  Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Ed

Swing Trade Ideas for your consideration and watchlist: CSIQ, TJX, SIX, UAA, JBHT, STNE, ADT, KIRK, WING, NET, AQN. You can find Rick’s review of those tickers on his YouTube Channel here. 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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