The SPY and QQQ gapped a bit higher and the DIA gapped a bit lower at the open.  Then the SPY and QQQ followed through, especially the QQQ, before grinding sideways for most of the day.  A late-day rally took us out near the highs of the day.  This left us with strong white candles in the two broader indices and a Harami Doji in the DIA.  Both the SPY and QQQ closed at yet another new all-time high close.  On the day, SPY gained 0.45%, QQQ gained 1.26%, and DIA lost 0.07%.  The VXX gained 1.5% to 20.13 and T2122 fell just outside of the overbought territory at 76.04.  10-year bond yields fell to 1.523% and Oil (WTI) fell over 2% to $79.10/barrel.

After hours, ILMN, AIG, MCHP, MSI, WELL, OXY, SWKS, EXPE, NLOK, REG, FRT, PINS, EOG, MTD, NWSA, and NWS were among the major companies reporting beats on both lines.  MELI, NKTR, and DUK were among those reporting an earnings beat, but who also missed on revenue.  Meanwhile, MNST missed on earnings, but beat on revenue.  Only PTON missed on both lines.

So far this morning, ENB, FLR, ELAN, HE, AMCX, CNK, SRE, and VTR all reported beats on both lines.  Meanwhile, HMC, JCI, D, and MODV reported beats on earnings but came up short on revenue.  There have been no major reports the beat on revenue but missed on earnings. However, MGA, GCI, and TIXT missed on both earnings and revenue. 

In miscellaneous business news, PFE says it has developed its own Covid treatment pill that when coupled with a drug for treating HIV, cuts the risk of hospitalization or death by 89% among adults exposed to the Covid virus.  This is the second treatment pill for Covid-19, following MRK’s which was announced at the beginning of October, but was only 50% effective (alone) at reducing hospitalization or death in mild-moderate cases of Covid-19.  Elsewhere, PTON is getting crushed in premarket after last night’s bad earnings report (much larger losses than expected).  PTON was down as much as 35% overnight and now sits down 33%.

Overnight, Asian markets were very mixed with a very widespread.  Hong Kong (-1.41%) and Shanghai (-1.00%) paced the losses.  However, on the other side, Taiwan (+1.28%) and New Zealand (+1.01%) led the gainers.  In Europe, markets are mixed, but lean to the green side.  The FTSE (+0.67%), DAX (+0.18%), and CAC (+0.63%) are representative of the spread on the green side while Portugal (-0.90%), Greece (-0.75%), and Russia (-0.22%) are typical of the spread among the losing exchanges at mid-day.  As of 7:30 am, US Futures are pointing toward a modest gap-up at this hour.  The DIA is implying a +0.09% open, the SPY implies a +0.22% open, and the QQQ implies a +0.30% open at this point. 10-year bond yields and Oil (WTI) are both up a bit in early trading.  

The major economic news scheduled for release on Friday includes Oct. Avg. Hourly Earnings, Oct. Nonfarm Payrolls, Oct. Participation Rate, and Oct. Unemployment Rate (all at 8:30 am).  Major earnings reports scheduled for the day include AMCX, AXL, BEP, CLMT, DSEY, D, SSP, ELAN, FLR, GLP, GT, HE, HMC, JCI, MGA, MODV, PNW, REV, SRE, TIXT, TEN, VTR, and VST before the open.  Then after the close, there are no major reports.

More earnings overnight and this morning will color the mood of the markets today. However, at this point, traders are mostly waiting on the data dump at 8:30 am. That October Payrolls and Unemployment data are likely to impact the tone of the market this morning. As has been the case for a while, the bulls have all of the momentum, but we are also quite extended in the QQQ especially, but also the SPY. So, it is about time for some relief in the form of consolidation or pullback.

With that said, we have to remember that the market can remain very extended much longer than you can stay solvent while being right about a reversal too early. Long-term trading success has never come from betting on a reversal yet to come. The trend is our friend.

Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Watch your current positions before looking to add any new trades. Trade carefully and think twice about holding through earnings.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Friday. 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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