Markets opened basically flat on Tuesday and then very slowly crept higher over the course of the day.  This left us with white candles that closed near the highs of their candles, with all 3 major indices closing at new all-time high closes again.  On the day, SPY gained 0.39%, DIA gained 0.40%, and QQQ gained 0.42%.  The VXX fell to 20.54 and T2122 fell just outside the overbought territory at 78.72.  10-year bond yields fell to 1.545% and Oil (WTI) fell two-thirds of a percent to $83.51/barrel.

After hours, AKAM, AMGN, MDLZ, ATVI, VRTX, PRU, VRSK, OKE, DVN, PKI, and AMCR all beat on both lines.  TMUS beat significantly on earnings but missed on revenue.  On the opposite side, EIX missed on revenue but beat significantly on revenue.  However, WU missed on both lines. 

In other after-hours news, BBY spiked hard as they announced they are launching a digital marketplace to sell third-party products.  They also announced a collaboration between BBY and KR.  Finally, they said their stock buyback program was ahead of schedule.  Elsewhere, the CDC gave final approval for immediate distribution of the PFE vaccine for children ages 5–11.  MDLZ also announced they will raise the prices of their main product lines (Oreo, Ritz Crackers, and Sour Patch candy) by 7% in 2022 after saying they are expecting costs to rise 6%.

So far this morning, MAR, ETR, EVRG, NI, CPRI, HFC, CVS, EXC, BR, and BWA have all reported beats on both lines.  HUM, EMR, CTRA, and CDW beat on earnings but missed on revenue.  DISCA, DISCK, and NCLH beat on revenue but missed on earnings.  There were no reported misses on both lines.

Overnight, Asian markets were mostly red in modest trading.  Australia (+0.93%) and Taiwan (+0.33%) were the only bullish exceptions.  South Korea (-1.25%) was also an outlier to the downside.  However, Japan (-0.43%), Shanghai (-0.20%), and Shenzhen (-0.07%) were typical of the spread in the region.  In Europe, markets are mixed as of mid-day, also on mostly modest trading.  Portugal (-1.96%) is a huge outlier, but the FTSE (-0.27%), DAX (-0.03%), and CAC (+0.08%) are more typical of the continent.  As of 7:30 am, US Futures are pointing toward a flat open in the US as well as we wait on the Fed announcements.  The DIA implies a -0.13% open, the SPY is implying a -0.10% open, and the QQQ implies a +0.06% open at this hour.  

The major economic news scheduled to release on Wednesday includes Oct. ADP Nonfarm Payrolls (8:15 am), Sept. Trade Balance (8:30 am), Oct. Services PMI (9:45 am), Sept. Factory Orders and Oct. ISM Non-Mfg. PMI (both at 10 am), Crude Oil Inventories (10:30 am), FOMC Interest Rate Decision and Statement (2 pm), and the Fed Chair Press Conf. (at 3:30 pm, a non-normal time).  Major earnings reports scheduled for the day include AMRX, ATH, AAWW, BDC, BGCP, BWA, EAT, BR, BIP, CWH, CPRI, CDW, FUN, CRL, CLH, SID, CTRA, CVS, DISCA, EMR, ETR, EVRG, EXC, EXPI, HFC, HZNP, HUM, JLL, MKL, MAR, NYT, NI, ODP, OMI, PSN, PBI, PLTK, PRG, RRD, SMG, SBGI, SITE, SPR, SHOO, SUN, SYNH, TT, TUP, VNTR, VRTV, and VSH before the open.  Then after the close, ALB, ALL, UHAL, APA, ACA, EQH, BKNG, CENX, CF, CHNG, CAKE, CLR, CTVA, CW, DXC, EA, ET, NVST, EQIX, ETSY, FLT, FOXA, GFL, GDDY, H, ICLR, IR, ITT, KL, LHCG, LBTYA, LNC, LUMN, MATX, MET, MGM, NUS, PTVE, PARR, PXD, QRVO, REGI, ROKU, RYI, SWN, SUM, TTWO, TRMB, TPC, VVV, XP, and YELL report.

Earnings continue to be very strong for the most part. However, it seems markets around the world are waiting on today’s big dump of data and in particular the Fed announcements. The Fed moves have been widely telegraphed for quite some time, but Mr. Market seems to want to hear the words to remove all doubt. In the meantime, the bulls have been running wild, with the major indices at all-time highs after a very strong 3-week streak. So, the trend is strongly bullish, the Fed news is believed to already be known (bond-buying taper starting and inflation is going to last longer than the FOMC originally thought). That puts the risk on the downside (unexpected bad news could hurt twice as bad). Be prepared.

Keep in mind that while we are extended, the market can remain very extended longer than you can stay solvent being right early. Long-term trading success has never come from betting on reversals. Remember, the trend is our friend. Focus on your trade rules and on managing the things you can control. And that should include consistently taking profits when you have them and moving your stops. Watch your current positions before looking to add new trades. Trade carefully and think twice about holding through earnings.

Ed

Swing Trade Ideas for your consideration and watchlist: BGFV, BIG, BTBT, CHWY, BX, X, MU, ORCL, LVS. 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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