The DIA gapped half a percent higher at the open, while the SPY and QQQ opened flat.  From there, all 3 major indices ground sideways with a slightly bearish trend.  This left us with indecisive Spinning Top or Doji candles in all 3 major indices.  On the day, SPY gained 0.08% (to a new all-time high close), DIA gained 0.27% (to another new all-time high close), but QQQ lost 0.14%.  The VXX was flat at 20.84 and T2122 fell a bit but remains in the overbought territory at 87.83.  10-year bond yields rose to 1.497% and Oil (WTI) closed up 1.21% to $82.26/barrel.

During the day Monday, traders piled into the infrastructure plays, following through on the weekend passage of the infrastructure bill.  Among the big winners on the day were CAT (+4.01%), FCX (+6.40%), VMC (+4.95%), NUE (+3.61%), etc.  However, almost all of these saw pops at the open, with some early follow-through, and then faded the gap on a strong pullback.

In a semi-annual report released Monday, the Fed warned that asset prices continue to rise and are now are a perilous risk of crashing (if the economy were to take a turn, thus causing a change in investor risk sentiment).  The report went on to outline risks to the US such as spill-over from the Chinese real estate market (i.e. Evergrande defaults) and “structural vulnerabilities” caused by the emergence of stablecoins (tied directly to a fiat currency) and other digital currencies that are susceptible to major runs (huge swings).  In a related story, overnight, Bitcoin hit a new all-time high (over $68,300) but has backed off to $67,500 at this point.

After the close, IFF beat on both lines, PYPL and JKHY beat on earnings but missed on revenue, and TRIP missed on both lines.  So far this morning, BTNX, HAIN, IGT, and WRK have posted beats on both lines.  CAH, CANO, CCO, and SATS beat on revenue but missed on earnings.  On the other side, DHI, HUYA, IIVI, PRTY, SEAS, and WNC beat on earnings but missed on revenue.  Only MIDD has missed on both lines among major names.

Overnight, Asian markets were again mixed on mostly modest moves. Japan (-0.75%), Malaysia (-0.74%), and Singapore (-0.63%) paced losses.  However, Taiwan (+0.72%), Indonesia (+0.57%), and Shenzhen (+0.44%) paced the wider-spread, but more modest gains.  In Europe, stocks are leaning toward the green side on light moves at mid-day.  The FTSE (+0.12%), DAX (+0.27%), and CAC (+0.28%) are typical of the continent (with a few outliers in each direction beyond the typical) in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA is implying a -0.06% open, the SPY implies a +0.03% open, and the QQQ implies a +0.17% open at this hour.

The major economic news scheduled for release on Tuesday is limited to Oct. PPI (8:30 am), EIA Short-Term Energy Outlook (noon), 10-year note auction (1 pm), and a pair of Fed speakers (Chair Powell at 9 am and Daly at 11:35 am).  Major earnings reports scheduled for the day include ADT, BNTX, CAH, CCO, DHI, IIVI, IGT, MLCO, MIDD, PRTY, SEAS, SYY, UWMC, and WNC before the open.  Then after the close, ADV, ASH, ELY, COIN, DAR, G, GO, JAZZ, LU, NGL, NIO, SCSC, SGMS, SWX, TTEC, VZIO, VRM, WES, and WYNN report.

Earnings and October PPI (which should be hot) should call the tune in early trading today. The other news that may change market sentiment is that Bloomberg reports that President Biden has been interviewing other people (notably Fed Member Brainard) for possible nomination as the next Fed Chair. General consensus is that Chair Powell remains the favorite and will be renominated. However, the interviewing of other candidates is not the norm when a sitting Chair is renominated. So, this might cause a small wave of concern in markets.

The trend remains extremely bullish, but the last couple of candles are showing either indecision or rest by the bulls. This can be a good thing for bulls because the over-extension was getting a bit much toward the end of last week. 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: SKLZ, CHWY, CLF, ACB, FCX, MJ, BLNK, ATI. 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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