Markets opened essentially flat on Wednesday, but then rallied the first hour of the day.  In the afternoon we got a selloff, only broken by a bullish surge during the last 5 minutes of the day.  This left us with white bullish candles with upper wicks in the SPY and DIA, but a black Spinning Top candle in the QQQ. On the day, SPY gained 0.39%, DIA gained 0.44%, and QQQ lost 0.13%. The VXX fell to 21.95 and T2122 rose deeper into the overbought territory at 94.01.  10-year bond yields surged again to 1.658% and Oil (WTI) rose another 1.5% to $84.25/barrel.

After the close, the FDA cleared both the JNJ and MRNA vaccines for booster shots.  At the same time, the FDA also authorized “vaccine mixing” (getting a booster from a different manufacturer than the original vaccine).  This kicks the issue to the CDC, which will consider the data from JNJ and MRNA today and vote as soon as Friday.  While it is expected the CDC will authorize booster shots of the vaccines to be given to elderly and at-risk patients 6 months after the patient’s original vaccination, who qualifies for an FDA-approved vaccine is totally at their discretion. 

Also after the close, TSLA posted record revenue and earnings, beating on both lines.  Among the other majors reporting last evening CSX, CCI, PPG, and LSTR all reported beats on both lines.  However, IBM missed on both lines, and DFS missed on revenue while beating on earnings.

So far this morning, the strong earnings continue as DHR, MMC, IQV, TSCO, KEY, DGX, IPG, SNA, VLO, LUV, AAL, and ALK have all posted beats on both the top and bottom lines.  However, ALLE and T both missed on revenue while beating on earnings.

Overnight, Asian markets were mixed but leaned to the red side.  Japan (-1.87%) was a huge outlier to the downside while Malaysia (-0.92%), India (-0.48%), and Hong Kong (-0.45%) were the non-outlier leaders to the downside.  Thailand (+0.36%) and Shanghai (+0.22%) were the only appreciable winners on the day.  In Europe, only Amsterdam is positive as the rest of the region is in the red at mid-day.  The FTSE (-0.52%), DAX (-0.02%), and CAC (-0.40%) are typical of the spread across the continent in early afternoon trading.  As of 7:30 am, US Futures are also pointing toward a down open.  The SIA is implying a -0.26% open, the SPY implies a -0.22% open, and the QQQ implies a -0.18% open at this hour.  10-year bond yields are up just slightly and Oil is off about three-quarters of a percent in early trading.

The major economic news scheduled for release on Thursday is limited to Weekly Jobless Claims and Philly Fed Mfg. Index (both at 8:30 am), Sept. Existing Home Sales (10 am), and a couple of Fed speakers (Waller at 9 am and Williams at 9 pm).  Major earnings reports scheduled for the day include ABB, ALK, ALLE, ALLY, AAL, T, AN, BX, CROX, DHR, DOW, EEFT, FAF, FCX, GPC, HRI, IPG, IQV, KEY, MMC, NUE, NVR, POOL, DGX, RCI, SAP, SCHN, SNA, SON, LUV, TSCO, TPH, TRN, UNP, and VLO before the open.  Then after the close, SAM, CSL, CE, CMG, INTC, MAT, OLN, PBCT, RHI, SNAP, SIVB, USX, WRB, WAL, and WHR report.

We didn’t really see a pullback on Wednesday, but after the strong rally of the 5 days preceding it, the market is certainly due at least a rest. So, as mentioned in recent days, don’t be chasing the rally. Let the market (and trade) come to you. Trade carefully, and be prepared for a potential rest day.

Remember, you’re not missing anything, so don’t chase. It’s discipline and good trading rules that will win in the long run. And that includes consistently taking profits when you have them. So, don’t let greed get the better of you. Focus on your trading process and on managing the things you can control (while not worrying about things you can’t influence). Finally, watch your current positions before looking to add new trades.

Ed

Swing Trade Ideas for your consideration and watchlist: DIDI, BTCM, M, BEKE, NOK, REAL, ROKU, FCEL, BB, OXY. 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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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.

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