Markets opened the year by gapping about one-third of a percent higher. Choppy sideways action then took over until noon. At that point a slow, but steady rally took over for the rest of the day. This left all 3 major indices with white bodies and longer lower wicks with the SPY and DIA looking like Hammer-type candles and both closing at new all-time high closes. On the day, SPY gained 0.58%, DIA gained 0.66%, and QQQ gained 0.97%. The VXX lost 3.6% to 17.86 and T2122 rose deeper in the overbought territory at 93.46. 10-year bond yields shot higher to 1.638% and Oil (WTI) rose over one percent on the day to $76.02/barrel.
In major market news, AAPL became the first US company to reach $3 trillion in market cap. This happened on a 2.50% gain on the day, closing at another all-time high. Meanwhile, TSLA had a tremendous day, gapping 8.7% higher and closing up 13.52% on the record 2021 vehicle deliveries reported Sunday.
The US reported a record of almost 1.1 million new cases of covid yesterday. The surge is mostly due to omicron (59% of cases), but the majority of the most severe cases still seem to be the delta variant (41% of cases). As a reference, that 1.1 million accounts for nearly 2% of all cases seen in the US since the beginning of the global pandemic coming just on Monday. However, due to the way states have become laxer in reporting, it is possible that number is inflated by the holiday weekend.
In a case that may set precedent, Theranos founder and CEO was found guilty on 4 of 11 charges of criminal fraud. Specifically, she was convicted of defrauding investors by lying about the company’s capabilities. However, the jury also found her not guilty on 4 charges and did not reach a verdict on 3 charges. Still, this may (at the margins) make companies think twice before lying to investor conferences or during earnings calls, which would be a good thing.
Overnight, Asian markets were mostly green. Australia (+1.95%), Japan (+1.77%), and Singapore (+1.50%) led the gain. The only red came from Malaysia (-0.46%), Shenzhen (-0.44%), and Shanghai (-0.20%) as China struggled under the pressure of the Evergrande default. In Europe, markets are green across the board with the lone exception of Denmark at mid-day. The FTSE (+1.40%), DAX (+0.78%), and CAC (+1.33%) are typical in early afternoon trading. As of 7:30 am, US Futures are pointing toward another modest gap higher at the open. The DIA implies a +0.30% open, the SPY is implying a +0.30% open, and the QQQ implies a +0.24% open at this hour.
The only major economic news scheduled for release Tuesday is Dec. ISM Mfg. PMI and Nov. JOLTS (both at 10 am). There are no major earnings reports scheduled for before the market Tuesday. However, after the close, MLKN reports.
The bulls seem to be pushing to start the year, looking to add to the late December Santa Claus rally. However, we are quite overbought and are dealing with all-time high resistance. So, keep an eye out for signs the market needs to rest of pullback.
Stick to your trading rules and on managing the things you can control. Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, when you're wrong, admit it and take your loss. (That's why we set stops.) Trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.
Swing Trade Ideas for your consideration and watchlist: ERX, FANG, SOFI, T, BAC. 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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