Markets gapped down on Friday, but then printed an indecisive Doji-like candle.  On the day, SPY lost 0.35%, DIA lost 0.61%, and QQQ lost 0.29%.  While all 3 major indices closed down, they are just off their all-time highs.  The VXX gained a little over a percent to 16.40 and T2122 fell just outside of the overbought territory at 77.85.  10-year bond yields fell to 1.086% and Oil (WTI) load over 2% to close at $51.98/barrel.  For the week, large-caps were up about 2% and the QQQ up 4.35%.

GOP opposition to the price of President Biden’s $1.9 trillion stimulus plan has started to gel.  With Republicans saying that more stimulus may well not be needed and that they oppose any more government borrowing unless the expense is proven to be absolutely necessary.  However, the head of the National Economic Council, Brian Deese, held a call with a bi-partisan group of moderate Senators (8 Democrat and 8 GOP) on Sunday to make the case for the bill. This comes as Bloomberg reports that rate traders are also very anxious to hear Fed Chair Powell forcefully reiterate that FOMC bond purchases will continue through 2021 without easing.  (In other words, that stimulus will not let up for at least the coming year.) 

In a stunning admission, new CDC Director Walensky told Fox News that the government does not know how many of doses the two Covid-19 vaccines the US has in hand. And if she doesn’t know, she can’t tell Governors, state health systems or individual hospitals how much they will get or when.  This is part of what has led thus far to a hap-hazard and slow push for vaccinations. In a shot (pun intended) at the Trump Administration, she said this was the situation they were handed. 

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 25,702,125 confirmed cases and 429,490 deaths.  The number of new cases fell in 47 states again as the average new cases has fallen to 173,753 new cases, but deaths remain high at 3,182 per day.  MRK shut down its vaccine program after trial data showed poor efficacy.  Elsewhere, President Biden has banned all incoming travelers who were recently in South Africa (to stop the new variant from that country). It also formalized the rescinding former-President Trump’s last-minute lifting of bans on travelers from Ireland, the UK, much of Europe, and Brazil.

Globally, the numbers rose to 99,839,954 confirmed cases and the confirmed deaths are now at 2,140,489 deaths.  In good news, the world’s average new cases is down to 588,519 per day (the first time below 600k this year), but deaths remain high at just under 14,000 new deaths per day.  Over the weekend, the US CDC and UK Health Ministry discussed new data that suggests that the “UK Variant” of the virus is not only 50% more contagious, but also could have a higher mortality rate.  On Sunday, Israel banned international flighted (in/out) for at least a week.  Austria also made N95-grade masks mandatory in public and a German hospital in Berlin has been quarantined after finding 14 patients and 6 staff members infected with the newer UK variant of the virus.

Overnight, Asian markets were mixed, but leaned slightly to the bullish side.  Hong Kong (+2.41%) and South Korea (+2.18%) far outpaced all other exchanges.  To the downside, Malaysia (-1.26%), India (-0.93%) and Indonesia (-0.77%) paced the losses.  In Europe, markets are mixed, but lean heavily to the red side so far today.  Among the big 3 bourses, the FTSE (-0.71%), DAX (-0.97%), and CAC (-0.90%) are all well down at mid-day.  As of 7:30 am, US Futures are also mixed.  The DIA is implying a down open of 0.29%, the SPY on the green side of flat implying +0.13%, and the QQQ implies a pop higher of 0.93%.

There is no major economic news for Monday.  Major earnings reports include ALLY, FHN, HBAN, KSU, RF, and SLB before the open.  Major earnings reports on the day include KMB before the open.  Then after the close, AUY, FUL, STLD, and XLNX report.

We have a full week of economic data and heavy earnings highlighted by the Fed statement and press conference on Wednesday. On top of this, the wrangling over another relief package continues and markets may wait until they are sure they’ll get another hit of stimulus before taking major decisions. It looks like the bulls want to run in the high-tech space this morning, but large-caps seem undecided as of now. So, bear in mind we’re at all-time highs with an indecisive market.

As always, follow the trend, respect support and resistance, and don’t chase the moves you missed.  There will be another trade. Lock in your profits when you achieve trade goals and stick to 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: CLX, WOR, SYX, BYND, APPS, BE, AG. 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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