Markets gapped up Friday, ground sideways the rest of the morning, sold off at lunchtime and then ground sideways the rest of the day.  The left the 3 major indices with black candles on modest moves for the day.  The SPY and QQQ printed Dark Cloud Cover type candles.  On the day SPY was down 0.18%, DIA was down 0.20%, and QQQ was down 0.44%.  The VXX fell over 3.5% to 15.10 and T2122 rose back into the overbought territory at 85.59.  10-year bond yields shot up again to 1.34% and Oil (WTI) fell 2.5% to $59.01/barrel.

Following on the GME hearings last week, on Friday Democratic Rep. Waters (who chairs the Financial Services Committee) said she is considering putting forward a tax on financial transactions in an effort to reduce transactions and curb high-frequency activity.  The idea died on the vine a decade ago as major financial industry lobbies all opposed it.  However, it has long been the dream idea of some liberals.  During his campaign, President Biden said he supported the idea, but put forth no details or plans.

BA suffered another rough weekend as two US events impacted the same model plane.  The 777-200 plane had cowling blow off during takeoff in one event and an engine blew up mid-flight (near Denver) in the other.  The FAA has now ordered an inspection of all model 777-200 that have Pratt-Whitney engines to be inspected. The only US airline that flies that model is UAL and the airline took 24 planes out of service Sunday evening to facilitate the inspections. Separately, a BA 747-400 cargo plane also suffered an engine explosion shortly after takeoff that rained debris on a Dutch town on a flight bound for the US.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,765,423 confirmed cases and deaths have now passed half a million at 511,133 deaths.  However, the number of new cases continues to fall quickly and is back down to the October level as the average new cases are now 69,002 new cases per day.  However, deaths remain at a stubbornly high level of 1,983 per day. 

Globally, the numbers rose to 112,027,570 confirmed cases and the confirmed deaths are now at 2,479,313 deaths.  However, the trends are good.  The world’s average of new cases continues to fall quickly and is now down to 360,270 per day.  Mortality lags but is also falling, now down to 9,398 new deaths per day.   The number of new cases is rising slightly in Germany, which stands out because of the precipitous fall elsewhere.  However, in the UK, PM Johnson announced a roadmap to reopening by removing restrictions step-by-step. 

Overnight, the few Asian markets were mostly red.  Shenzhen (-2.11%), India (-2.04%), and Shanghai (-1.45%) led the way lower.  Japan (+0.46%) and Taiwain (+0.42%) were notable holdouts on the bullish side.  The same is true so far today in Europe, where the only green at this point is Athens (+0.84%) and Norway (+0.77%).  At mid-day, the FTSE (-0.63%), Dax (-0.58%), and CAC (-0.42%) are typical of the continent.  As of 7:30am, it appears the US is following the rest of the world lower.  The DIA is implying a -0.53% open, the SPY implying a -0.73% open, and the QQQ implying a -1.30% open at this hour.

There is no major economic news for Monday.  Major earnings reports on the day include CTB, DISCA, DISH, KBR, and VTRS before the open.  Then after the close, AL, CDNS, CVI, FANG, GFL. IR, MRO, OXY, OKE, PANW, PRIM, RSG, RIG, and WMB report.

With no data and not many major earnings reports to start the week, it looks like we will follow Europe and Asia lower. congress is bound to make some news this week as they dash to approve the Democratic or Biden Administration relief bill. Meanwhile, the midwest (and TX in particular) are trying to get back to pandemic normal life while repairing broken pipes, cleaning water damage, and in many cases dealing with electric bills in the thousands. (Many Texans pay based on power company market costs, and those skyrocketed in the last 10 days. This caused many to be without power while at the same time others had power but were paying exorbitant prices.) The sideways chop (consolidation) of the last 2 weeks has taken a toll on many in the market. However, in the longer view, bulls still have the upper hand and we remain less than a percent from all-time highs. So, beware of volatility (gap and fade we’ve seen recently), but stay on the right side of the trend until it is broken.

Remember that trading is a marathon, not a sprint. You don’t have to trade every day and don’t try to get rich quick.  Do it in the long-run by hitting goals over and over again. Forget about predicting reversals or breakouts. Neither catching knives nor chasing trains is not a good career path. Just follow the trend, respect support and resistance, and don’t chase the moves you missed.  Book your trade goals when you can and stick to your discipline.  If you keep locking in your profits when you have them, you’ll never go bust.

Ed

Swing Trade Ideas for your consideration and watchlist: C, PFG, ADS, HCA, F, FB, CVS, HOME, URI, DFS, MGM, GE, ALLY. You can find Rick’s review of 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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