Monday saw the large caps open flat and the QQQ gap four-tenths of a percent higher.  The SPY and DIA then sold off before grinding sideways.  However, a court ruling led FB to rocket higher in the afternoon, and both the QQQ and SPY followed.  This left the SPY printing a potential Hanging Man signal (at another all-time high close), the QQQ printing a strong Bullish Kicker (also settling at a new all-time high close), and the DIA lagged printing an ugly black candle, but perhaps finding some support as it closed up off the lows of the day.  On the day, QQQ gained 1.20%, SPY gained 0.20%, and DIA lost 0.48%.  The VXX was flat at 29.17 and T2122 fell even further to 40.10 (diverging from the SPY and QQQ).  10-year bond yields fell sharply to 1.478% and Oil (WTI) fell 1.6% to $72.84/barrel.

As mentioned, a Federal Judge ruled in favor of FB, over-ruling a lower court and throwing out an antitrust case that had been brought by the FTC and 48 state AGs.  The case had been set to force FB to divest of Instagram and WhatsApp.  However, the judge ruled that despite lower court rulings, the FTC had not proven FB had or was maintaining a monopoly through anticompetitive means.  FB closed above a $1 trillion valuation after gaining almost 4.2% on the day.   

Late in the day, Supreme Court Justice Clarence Thomas put out a statement saying that Federal prohibitions against marijuana sales and distribution may be outdated and in need of revisiting.  Coming from a supposedly staunchly conservative Justice, this may signal a slightly more progressive shift in the court. The statement came as the court declined to hear a case about the Federal tax deductions of a Colorado medical marijuana dispensary.  While cannabis stocks did not pop on the news, this could have longer-term implications for pot names like GRWG, ACB, CARA, CRON, and HEXO.

In stock news, early this morning UAL announced they have placed their largest order ever, including some 270-plane orders. This includes 200 “narrow body” jets from BA and 70 Airbus 320 wide-body planes.  UAL also announced it expects to hire 25,000 new employees to service the planes, including flight crews, mechanics, and other ground crew.  Interestingly for BA, this comes less than a day after the FAA had told the company that its newest 777X jet would not get approval to fly until mid or late 2023.

Overnight, Asian markets were mixed but leaned heavily to the red side.  Shenzhen (-0.99%), Shanghai (-0.92%), and Hong Kong (-0.94%) paced the losses.  Meanwhile, Thailand (+0.78%) was the lone exchange that was significantly green.  In Europe, markets are leaning to the green side as of the early afternoon.  The FTSE (+0.30%), DAX (+0.88%), and CAC (+0.44%) lead the gainers with Greece (-1.04%) and Russia (-0.95%) as outliers to the downside.  As of 7:30 am, US Futures are pointing to a flat and mixed open.  The DIA is implying a +0.13% open, the SPY implying a -0.05% open, and the QQQ implying a -0.11% open at this hour.

The only major economic news scheduled for Tuesday is Conf. Board Consumer Confidence (10 am).  There are no major earnings reports scheduled for the day.

The dollar has been surging overnight. Of course, this means most commodities are down proportionately. Natural gas (+1.48%) is the major exception. However, with markets waiting on employment data later this week, there seems to be uncertainty in the stock market. It is absolutely true that the tech-led reflation trade led the bulls higher in the QQQ Monday. However, large-cap traders seem far less certain at these lofty heights. We also have to consider quarter-end rebalancing and window dressing as possibilities as the funds prepare for their Q2 statements. The bulls still have the trend in their favor, but things are looking a little extended or tired outside the Nasdaq. So, be cautious and watch for signs of rotation or reversal.

Keep locking in profits, moving your stops, and maintaining discipline. Follow your trading rules, don’t chase, and stick to the trade plan. The odds favor following the trend and, as always, respect both support and resistance levels. However, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Remember that consistency is the key to long-term trading success. So, takes those singles and doubles…don’t try to stretch things and get burnt in the process.

Ed

Swing Trade Ideas for your consideration and watchlist: CRON, YOLO, NOK, QS, PLUG, DPZ, RIDE, NIO, JD, SQ, BABA. 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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