Antitrust Executive Order Coming

Thursday was wild ride with all three major indices gapping down 1.3%, grinding sideways until 11 am, and then rallying for a couple of hours before fading late in the day.  Support seemed to hold in all 3, but this left large-body candles with wicks at both ends in all the indices.  So, while the bulls refused to roll over, you’d have to say that on balance it was the bears that were in control.  On the day, SPY lost 0.80%, DIA lost 0.73%, and QQQ lost 0.58%.  The VXX gained 6.5% to 31.54 and T2122 dropped all the way down deep into the oversold territory at 7.93.  10-year bond yields fell yet again to 1.293% (which was actually up significantly from the 1.25% it hit in premarket) and Oil (WTI) rose 1.29% to $73.13 on a falling dollar.

The White House announced that President Biden will sign an executive order that cracks down on anti-competitive practices in big tech, labor, and other sectors.  This order directs a dozen federal agencies on how to approach corporate consolidation and antitrust.  There are 72 specific actions outlined in the order, but details are not yet available.  What is known is that the White House is calling the changes “sweeping.”

PFE also made post-market news, saying that immunity provided by their vaccine has begun to wane and announcing they will seek FDA approval for clinical trials of a new Covid Booster Shot. The company also said it believes that immunity will require an additional booster 6-12mo. following completion of their 2-dose original regimen.  The booster they have been developing specifically targets the highly contagious Delta variant and trials could start in August if approved.  However, the CDC, FDA, and NIH commented that the waning of immunity has not yet been demonstrated and they will analyze the data as it comes in.

In banking news, yesterday WFC closed its “personal line of credit” business, angering thousands of customers.  The reported reason is so that the bank can focus on credit card and personal loan lines of business.  Meanwhile, overnight MS reported that there was a breach of customer data from one of the stock-plan businesses they operate.  The company said they have already contacted the customers who were impacted.

Overnight, Asian markets were mixed but leaned to the red side.  Taiwan (-1.15%), South Korea (-1.07%), and Australia (-0.93%) paced the losses.  In Europe, markets are green across the board so far today.  The region is seeing significant rebounds from Thursday as the FTSE (+0.69%), DAX (+0.92%), and CAC (+1.73%) are indicative of the continent.  As of 7:30 am, US Futures are looking to rebound as well, but in a mixed fashion.  The DIA is implying a +0.67% open, the SPY implying a +0.41% open, and the QQQ implying a flat -0.02% open.  10-year bond yields are also up sharply to 1.341% overnight.

Major economic news scheduled for Friday is limited to the Fed Economic Policy Report (11 am).  The only major earnings report scheduled for the day is GBX before the open.     

Markets seemed to have found a little support Thursday after the nasty gap down. The bulls refused to roll over, but the bears were also not done fighting as of day end. It looks like the day will start with the bulls attempting to follow through on their rally off the lows yesterday. That said, a single gap down did not do a lot to relieve what many consider too long of a run without a pullback. So, be careful. As mentioned yesterday, one candle does not indicate a trend change. However, it also does not take out all the sellers who have been waiting to pounce.

The odds still favor sticking with the trend. However, at some point, all trends fail. Those points of indecision are a good place to step back and wait on things to shake out. You DO NOT have to trade every day. So, consider whether this is your market condition or not. If you do trade, focus on your open positions first and be more nimble or hedged. Keep following your trading rules, taking your profits, moving your stops, and maintaining your discipline. And remember it's Friday...payday. And maybe a time to lighten up for the weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: AGEN, AKAM, FUBO, CLRE, SNOW, UNG, TGT, NET, CUBE, IT, LE, MDLZ, NSA, CLX, WFG, SPCE. 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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