Maybe it was a reaction to the premarket rate hike by the UK or maybe it was just an “on second thought” reaction to Wednesday’s Fed announcements.  Whatever it was, after a gap higher at the open, the bears were in control all day long.  This left us with a Dark Cloud Cover signal in the SPY and a Bearish Engulfing signal in the QQQ.  On the day, SPY lost 0.83%, QQQ lost 2.51%, and the DIA went relatively unscathed at -010%.  The VXX rose over 4% to 21.28 and T2122 dropped back down a bit to 44.64.  10-year bond yields fell to 1.428% and Oil (WTI) still gained 1.67% to $72.05/barrel.   

ADBE (-10.22%) got crushed on Thursday after announcing weak forward guidance while reporting a beat on revenue and reporting in-line earnings all before the open.  Their guidance was 2.5% below analyst estimates on earnings and 1.5% low on revenue for the next quarter.  However, Mr. Market felt that punishment was required.  Then after the bell, RIVN share fell 10% as well when the company reported in-line earnings and revenue, but gave poor production guidance in its first-ever quarterly report.

New York City is experiencing what it calls an “alarming increase” in covid numbers.  The city has seen a 135% increase in reported cases and a 21% increase in hospitalizations over the last two weeks.  As a result, many Wall Street companies are moving back to remote work.  Among the major brokerage/fund firms making those decisions are BLK, JPM, and JEF.  However, the resurgence is having an impact nationwide as companies as varied as AAPL, FB, F, and GOOG have postponed their “return to office” and/or closed particular offices again.  (AAPL closed 3 stores.)  

Meta announced that 50,000 FB users had been spied on by seven “surveillance for hire” companies.  (Side note: FB is absolutely not the only platform these companies surveil.) Most of these companies are located in Israel, which has particular expertise in spyware and data mining.  Most of the people targeted were journalists, activists, and either government or corporate officials.  It is widely believed these companies were hired by governments who either lack the capabilities in-house or, like the US, are sometimes forbidden by law from spying on their own citizens…but are allowed to hire someone else to do it.

Overnight, Asian markets were mostly in the red.  Japan (-1.79%), Shenzhen (-1.62%), and India (-1.53%) led the way lower.  However, there were 5 exchanges that gained, mostly on very modest moves, with an outlier in Malaysia (+1.17%).  In Europe, stocks are nearly red across the board.  The FTSE (+0.19%) is the only green as the DAX (-0.74%) and CAC (-1.08%) are much more typical of the region at mid-day.  As of 7:30 am, US Futures are pointing to a red open.  The DIA implies a -0.13% open, the SPY is implying a -0.35% open, and the QQQ implies a -0.85% open at this hour.  10-year bond yields are down sharply to 1.397% and Oil (WTI) is down almost 2% in early trading.

The major economic news scheduled for release Friday is limited to a Fed speaker (Waller at 1 pm). The major earnings reports scheduled for the day are limited to DRI and WGO before the open.  There are no reports scheduled for after the close. 

The market looks to be giving a little follow-through to Thursday’s move. With no news today, the apparent stoppage of the President’s economic agenda (major political news), and quadruple witching happening today, don’t be surprised by a lackluster market. Keep an eye out for pinning or even volatility as the afternoon hits. And don’t forget it’s Friday or that next week is Christmas week, which is likely to be low-volume and dull as traders take time off. So, pay yourself, get ready for the weekend news cycle, and consider whether you will be trading next week.

Stick to your trade rules and on managing the things you can control. Trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. When you’re wrong, admit it and take your loss. (That’s why we set stops.) Trade carefully, and continue to think twice before holding through earnings…especially without a hedge in place.

Ed

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