On Friday, all the reporting companies crushed their earnings. Then Retail Sales came in stronger than expected.  As a result, stocks gapped about half of a percent higher at the open.  After a little morning chop, prices drifted higher the rest of the day, closing not far off the highs. This left us with gap-up white candles that closed near the top of the candle.  On the day, DIA gained 1.07%, SPY gained 0.76%, and QQQ gained 0.63%.  The VXX was flat at 22.79 and T2122 fell but remained in the overbought territory at 84.31.  10-year bond yields spiked again to 1.574% and Oil (WTI) gained 1.66% to $82.66.

In an interesting lesson for changing future energy markets, German electric prices plunged overnight.  The drop was not due to high coal inventories or natural gas supplies.  No, this drop comes on weather forecasts.  In particular, forecasters are calling for record wind across Germany later in the week.  And the logic goes that record winds mean record wind-powered electrical production.

Toyota has announced it will build a new battery plant in the US.  This is part of the company’s modest $3.4 billion investment in electric vehicles in the US over the next 9 years.  However, the effort should result in about 1,800 jobs with production of electric vehicles beginning sometime in 2025.  The company has also launched a major lobbying effort designed to get US lawmakers to provide a $4,500 tax credit for US taxpayers who buy a union-made electric vehicle.

AAPL is holding another product launch event today at 1 pm Eastern.  This event will announce an all-Arm processor lineup (replacing the last products with INTC CPUs). 

Overnight, Asian markets were mixed on modest trading.  Shenzhen (-0.46%) and Taiwan (-0.45%) led to the downside.  Meanwhile. India (+0.76%) and Malaysia (+0.48%) led to the upside. The rest of the region showed small moves in either direction.  In Europe, prices are mostly down at mid-day, with the notable exceptions of Norway (+1.02%).  The FTSE (-0.23%), DAX (-0.57%), and CAC (-0.76%) are typical of the spread in the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a lower open.  The DIA is implying a -0.26% open, the SPY implying a -0.24% open, and the QQQ implying a -0.18% open at this hour.  The Dollar is starting the week slightly higher, but 10-year bond yields have spiked back up to 1.602% and Oil is up 1.6% to $83.58/barrel in early trading.

The major economic news scheduled for release on Monday includes Sept. Industrial Production (9:15 am), Federal Budget Balance (2 pm), and August TIC Net Long-Term Transactions (4 pm).  Major earnings reports scheduled for the day are limited to ACI and STT before the open.  Then after the close, STLD and ZION report.

The bears are looking to start the week by pushing against the 3-day rally that ended last week. However, most eyes are on major earnings reports coming later in the week. So far, we’ve seen nothing but very strong earnings reported. However, to be fair, most of those were in the “big bank” space. This week will be another test as another major wave of reports hits the wire. Remember that we now have a short-term bullish trend in place, having confirmed with a higher -high on Friday. However, there is still some resistance above to work through. So, trade carefully, and be prepared for volatility to continue.

Focus on your trading process and on managing those things you can control (while not worrying about things you can’t influence). Watch your current positions before looking to add new trades. Remember, you’re not missing anything, so don’t chase. It’s discipline and good trading rules that will win in the long run. That includes consistently take profits when you have them. So, don’t let greed get the better of you.

Ed

Swing Trade Ideas for your consideration and watchlist: BIDU, RLX, RIG, FCEL, KWEB, NEM, PLUG, PUBM, AG, IP, GDX, AEM, BEKE. 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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