On Wednesday, the broader index ETFs gapped up while DIA started essentially flat. SPY gapped up 0.30%, DIA opened 0.08% higher, and QQQ gapped up 0.42%. From there, all three major index ETFs followed-through to the upside until about 11 a.m.  At that point, all three sold off steadily until 2 p.m.  All three spent the last couple hours of the day bobbing around near the lows.  This action gave us black-bodied Spinning Top candles in SPY, DIA (largest body of the three), and QQQ. (It should be noted that DIA held the support level that has propped it up the prior three days.)  This happened on modestly below-average volume in all three major index ETFs.

On the day, six of the 10 of the sectors were in the green as Technology (+0.95%) was well out in front of the rest of the gainers.  On the other side, Consumer Defensive (-1.01%) lagged behind the other sectors.  At the same time, SPY gained 0.05%, DIA lost 0.40%, and QQQ gained 0.24%. Meanwhile, VXX fell 2.30% to close at 44.10 and T2122 fell back to the bottom of the mid-range, just outside of oversold territory at 20.98.  On the bond side, 10-Year Bond yields plummeted again to 4.247% and Oil (WTI) dropped a quarter of a percent to close at $68.77 per barrel. So, Wednesday saw the results more-or-less determined by the opening.  After that, the market was indecisive but leaned slightly bearish.  It is worth noting that NVDA (+3.67%), META (+2.46%), and to a lesser extent INTC (+2.31%) accounted for Technology’s strength while TSLA (-3.96%) and to a lesser extent AAPL (-2.70%) were the anchors on the market…and in particular the DIA.

The major economic news on Wednesday was limited to January Building Permits, which came in a little low at 1.473 million (compares to a 1.483 million forecast and December’s 1.482 million value).  Later, EIA Weekly Crude Oil Inventories showed an unexpected drawdown of 2.332 million barrels (versus a +2.500-million-barrel forecast and last week’s 4.633-million-barrel inventory build).  At the same time, January New Home Sales were down sharply to 657k(compared to a 679k forecast and December’s 734k reading).

In Fed news, on Wednesday, the NY Fed released a new research paper the predicts a fresh jolt of inflation, based solely on Trump administration tariffs on Chinese imports.  In particular, the report spotlighted the administration’s announcement of those tariffs applying to “de minimis” (small value) shipments from China, which had been exempt from the first Trump administration tariffs.  (The study argued that was key to fighting inflation during 2017-2021 since many more small-scale importers avoided tariffs back then.)  The report said, “U.S. consumers could face larger consequences than meet the eye from the recent 10-percentage-point tariff increase if the de minimis exception is ended for China if Chinese sellers do not slash their profit margins by reducing their export prices.”  (The report went on to say it did not expect those margins to be slashed.)  Elsewhere, Atlanta Fed President Bostic told an audience that inflation is high, but we saw a lot of progress on that front in 2024.  (He is in favor of holding rates steady until Trump policy change chaos impact on the path of inflation is clearer.)

After the close, A, ARDT, CHE, EXE, DORM, HEI, HHH, VAC, NTNX, NVDA, PSTG, SNOW, SUI, SNPS, TKO, UHS, URBN, and WES all reported beats on both revenue and earnings lines. Meanwhile, APA, FRWD, KNTK, OVV, SRPT, and TDOC beat on revenue while they missed on the earnings line.  On the other side, CAPL, EBAY, GRBK, INVH, CRM, SBGI, and TALO missed on revenue while beating on earnings. However, AMED, ARKO, FE, GEF, MYRG, and PARA missed on both the top and bottom lines. 

Overnight, Asian markets were mixed but leaned toward the red side.  Taiwan (-1.49%) and Thailand (-1.25%) were by far the biggest movers in either direction in that region.  In Europe, with the lone exception of the FTSE (+0.34%) we see red across the board at midday.  The CAC (-0.32%) and DAX (-0.60%) lead the region lower in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a green start to the morning. DIA implies a +0.32% open, the SPY is implying a+0.67% open, and QQQ implies a +0.85% open at this hour.  At the same time, 10-Year Bond Yields are back up from overnight lows to 4.296% and Oil (WTI) is up 1.11% to $69.39 per barrel in early trading.

The major economic news scheduled for Thursday includes Jan. Core Durable Goods Orders, Jan. Durable Goods Orders, Q4 Core PCE Prices, Q4 GDP, and Q4 GDP Price Index, Weekly Initial Jobless Claims, and Weekly Continuing Jobless Claims (all at 8:30 a.m.), January Pending Home Sales (10 a.m.) and Fed Balance Sheet (4:30 p.m.).  We also hear from Fed members Vice Chair Barr (10 a.m.), Bowman (11:45 a.m.), and Harker (3:15 p.m.).  The major earnings reports scheduled for before the open include ADT, GBTG, AMBP, ARGX, BBWI, BECN, CM, XRAY, DCI, SATS, ERJ, EDR, EFXT, EVRG, FMX, GEO, GTN, HGV, HRL, IBP, SJM, KOP, LSEA, LTH, TIGO, VYX, NXST, NCLH, PZZAA, PENN, PLKT, RY, FUN, STGW, TD, FTI, TGNA, TFX, VRN, VTRS, VST, and WBD.  Then after the close, ACHC, ALHC, AMRC, AHR, ACA, ASTH, ADSK, BE, CODI, DELL, SSP, EOG, ERIE, HPQ, ICFI, ICUI, IHRT, MTZ, MNST, MOS, NTAP, OPEN, PGRE, PBA, PRGO, RKT, SOLV, RUN, and TTEC report. 

In economic news later this week, on Friday, Jan. Core PCE Prince Index, Jan. PCE Price Index, Jan. Goods Trade Balance. Jan. Personal Spending, Jan. Retail Inventories, and Chicago PMI are reported.

In terms of earnings reports later this week, on Friday, AES, AMR, AMRX, CLMT, GTLS, GLP, and OMI report.

So far this morning, ADT, AMBP, BBWI, BWLP, CM, ERJ, GTN, LTH, NCLH, PZZA, RY, and TD all reported beats on both the revenue and earnings lines. Meanwhile, GOLF, SATS, EFXT, IBP, SJM, STWD, TGNA, and TFX missed on revenue while beating on earnings. On the other side, ARGX, ONC, EVRG, HGV, HRL, VYX, NXST, PLTK, and STGW beat on revenue while missing on earnings.  However, BECN, XRAY, DCI, GEO, TIGO, PENN, FUN, VTRS, and WBD missed on both the top and bottom lines.

With that background, the market looks to gap higher but is also indecisive in the premarket.  All three major index ETFs opened the premarket higher, but all three are also printing Spinning Top or Doji type candles since then.  The short-term trend remains bearish. At the same time, the mid-term trend remains a choppy sideways mess, seeming to resolve itself bearishly at this point.  At the same time, the long-term trend remains bullish.  In terms of extension, with the premarket gaps higher, none of the three is too far below their T-line.  Meanwhile, the T2122 indicator sits just outside of its oversold territory.  So, while both sides of the market have room to work today, the Bears have the momentum while the Bulls have a little more room to move, if they can gain some momentum. In terms of the Big Dogs, nine of the 10 are in the green in the premarket.  NVDA (+3.03%) is way out in front leading the gainers followed by TSLA (+2.16%).  On the other side, AAPL (-0.49%) is the only Big Dog in the red.  As far as liquidity goes, NVDA leads TSLA by a factor of two and the next closest ticker has traded one-seventh as much dollar-volume as TSLA (and one-14^th as much as NVDA).

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened basically flat (on average) Tuesday.  SPY opened dead flat, DIA gapped up 0.21% and QQQ opened down 0.13%.  At that point, all three major index ETFs took 15 minutes to figure out what they wanted to do before proceeding to put in a sharp selloff that lasted until 10:30 a.m.  After that, they bobbed along the lows for an hour before starting a modest, jagged rally that lasted until 3:25 p.m. before selling back down the last half hour.  This action gave us black-bodied, Hammer-ish candles in the SPY and QQQ (the latter having a very big hammed head).  For its part, DIA printed a white Spinning Top candle that may have found support at the same level it had for the prior two days.  This happened on very heavy volume in QQQ and average volume in SPY and DIA.

On the day, half of the 10 of the sectors were in the red as Technology (-1.46%) and Energy (-1.29%) were way out front leading the way lower. On the other side, Consumer Defensive (+91%) held up much better than the others and led the 5 green sectors up.  At the same time, SPY lost 0.48%, DIA managed to gain 0.38%, and QQQ lost 1.26%. Meanwhile, VXX gained almost one percent to close at 45.14 and T2122 climbed up out of its oversold territory into the bottom half of its mid-range, closing at 30.59.  On the bond side, 10-Year Bond yields plummeted to 4.300% and Oil (WTI) dropped 2.25%, closing at $69.12 per barrel. So, Tuesday saw a fourth straight lower close in both the SPY and QQQ.  TSLA (-8.39% on $40.2 billion traded) led that rout in the high-tech names which also saw INTC (-5.27%), AMD (-3.84%), and NVDA (-2.80%) take a beating.

The major economic news on Tuesday was limited to Conference Board Consumer Confidence, which disappointed at 98.3 (compared toa forecast of 102.7 and the January reading of 105.3).  Then, after the close, the API Weekly Crude Oil Stocks Report showed a surprise drawdown of 0.640 million barrels (versus a forecasted build of 2.300 million barrels and the prior week’s 3.339-million-barrel inventory build).

In Fed news, on Tuesday Vice Chair Barr discussed crisis management.  He used the example of poor risk management at Silicon Valley Bank (which failed in March 2023) as reason for strong bank oversight.  This comes just days before Barr steps down from the head of Bank Supervision and with the Trump Administration expected to nominate a replacement that is far more friendly toward the wishes of banks.  Later, Richmond Fed President Barkin told an audience that he FOMC needs to be cautious.  Barkin said Trump administration trade and other policy changes “argue for caution as we look to wrap up the inflation fight.” He went on to explain, “It’s hard to make significant monetary policy changes amid such uncertainty … So, I prefer to wait and see how this uncertainty plays out and how the economy responds.”  Meanwhile, the GOP has created a Congressional panel to investigate the Fed in an attempt to force the FOMC to support their political ends.  (Now that the GOP controls all parts of the government, inflation is not a priority and they want the Fed to focus on stimulating the economy.)  Representative Frank Lucas, an Oklahoma Republican, questioned, “Is there really a dual mandate?”  He continued, “A substantial number of my Financial Services Committee colleagues and the chairman want to discuss that issue.”  He went on to argue for a rule-based system where the FOMC just implements policy changes based on rules set by Congress (Republicans in this case). 

After the close, AXON, BGS, CWH, CHRD, FIHL, HY, INTU, JAZZ, KEYS, LNW, MASI, MATX, OUT, PARR, SPXC, and WDAY all reported beats on bot the revenue and earnings lines.  Meanwhile, CZR, CPNG, EXR, CART, PR, RRC, and STRL missed on revenue while beating on earnings. On the other side, AGL, AMC, FSLR, and GO beat on revenue while missing on the earnings line. 

Overnight, Asian markets were mixed but leaned toward the green side with just four of the 12 exchanges in the red.  Hong Kong (+3.27%), Thailand (+2.05%), and Malaysia (+1.32%) led the broad gains.  Meanwhile, in Europe, we see green across the board at midday.  The CAC (+1.13%), DAX (+1.34%), and FTSE (+0.56%) lead the region higher in early afternoon trade.  In the US, as of 6:40 a.m., Futures are pointing toward a higher start to the day.  The DIA implies a +0.30% open, SPY is implying a +0.49% open, and QQQ implies a +0.76% open at this earlier hour.  At the same time, 10-Year Bond Yields are up to 4.317% and Oil (WTI) is just on the green side of flat at $69.06 per barrel in early trading.

The major economic news scheduled for Wednesday is limited to January Building Permits (8 a.m.) and EIA Weekly Crude Oil Inventories and January New Home Sales (both at 10 a.m.).  We also hear from Fed Member Bostic twice (midnight and noon). The major earnings reports scheduled for before the open include AAP, AER, ABEV, BUD, APG, AVA, BLMN, BCO, CTRI, COMM, DOLE, DY, EME, ENOV IEP, ICL, LINE, LOW, NRG, ODP, OPCH, SWX, SHOO, TJX, UTHR, UWMC, and VRSK.  Then after the close, A, APA, ARDT, ARKO, BBSI, CHE, CRGY, EXE, CRH, CAPL, DORM, EBAY, WTRG, FE, FRWD, GRBK, DEF, HG, HEI, HHH, INVH, KNTK, VAC, MYRG, NTNX, NVDA, OVV, PARA, PSTG, CRM, SRPT, SBGI, SNOW, SUI, SNPS, TALO, TDOC, TKO, UHS, URBN, and WES report.

In economic news later this week, on Thursday we get Jan. Core Durable Goods Orders, Jan. Durable Goods Orders, Q4 Core PCE Prices, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, January Pending Home Sales, and Fed member Harker speaks.  Finally, on Friday, Jan. Core PCE Prince Index, Jan. PCE Price Index, Jan. Goods Trade Balance. Jan. Personal Spending, Jan. Retail Inventories, and Chicago PMI are reported.

In terms of earnings reports later this week, on Thursday, we hear from ADT, GBTG, AMBP, ARGX, BBWI, BECN, CM, XRAY, DCI, SATS, ERJ, EDR, EFXT, EVRG, FMX, GEO, GTN, HGV, HRL, IBP, SJM, KOP, LSEA, LTH, TIGO, VYX, NXST, NCLH, PZZAA, PENN, PLKT, RY, FUN, STGW, TD, FTI, TGNA, TFX, VRN, VTRS, VST, WBD, ACHC, ALHC, AMRC, AHR, ACA, ASTH, ADSK, BE, CODI, DELL, SSP, EOG, ERIE, HPQ, ICFI, ICUI, IHRT, MTZ, MNST, MOS, NTAP, OPEN, PGRE, PBA, PRGO, RKT, SOLV, RUN, and TTEC.  Finally, on Friday, AES, AMR, AMRX, CLMT, GTLS, GLP, and OMI report.

So far this morning, AAP, AER, BUD, BLMN, COMM, DOLE, DTM, DY, ENOV, LOW, NRG, OPCH, SHOO, and UTHR all reported beats on both the revenue and earnings lines.  Meanwhile, ABEV, AVA, ODP, and TBLA beat on revenue while missing on the earnings lines.  On the other side, ICL and LINE missed on revenue while beating on earnings. 

With that background, the market again looks undecided again this morning.  All three major index ETFs started the premarket by gapping up modestly, but have printed tiny, indecisive candles since that point.  The short-term trend remains bearish. At the same time, the mid-term trend remains a choppy sideways mess, with only the DIA resolving it bearishly at this point.  At the same time, the long-term trend remains bullish.  In terms of extension, QQQ is now stretched below its T-line (8ema), but better than Tuesday while SPY and DIA are a bit better.  Meanwhile, the T2122 indicator is back up into the lower half of its mid-range. So, while both sides of the market have room to work today, the Bulls have more room to move, if they can some momentum. In terms of the Big Dogs, nine of the 10 are in the green in the premarket.  NVDA (+2.38%) is way out in front leading the gainers.  On the other side, AAPL (-0.36%) is the only Big Dog in the red.  As far as liquidity goes, NVDA leads TSLA (+1.30%) are neck-and-neck with the next-closest ticker having traded 6.5 times less than those two.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Monday, we saw a pop at the open (a relief bounce from Friday’s selloff).  SPY gapped up 0.34%, DIA gapped up 0.38%, and QQQ gapped up 0.30%.  However, from there, all three major index ETFs sold off, recrossing the opening gap for 40 minutes. At that point, all three bounced in a divergent way with QQQ not getting back to the Friday close, SPY making back into the opening gap, and DIA crossing its opening gap. Those bounces only lasted until 1 p.m., when the Bears led the market to roll over that really picked up steam the last 10 minutes.  This took us out very near the lows.  This action gave us black body candles in all three major index ETFs.  SPY and QQQ both printed black body candles with small upper wicks and virtually no lower wick.  At the same time, DIA gave us a black-bodied Spinning Top candle.

On the day, seven of the 10 of the sectors were in the red as Technology (-1.49%) was out front leading the way lower. On the other side, Communication Services (+0.63%) held up much better than the other sectors.  At the same time, SPY lost 0.46%, DIA managed to gain 0.09%, and QQQ lost 1.18%. Meanwhile, VXX gained 0.83% to close at 44.93 and T2122 climbed slightly but remained in the top end of oversold territory, closing at 17.78.  On the bond side, 10-Year Bond yields fell slightly to 4.400% and Oil (WTI) climbed just a bit, closing at $70.83 per barrel. So, Monday was a bit of a Bull trap with a modest gap higher, met by selling and then, after a modest bounce, a roll over ending the day in a sharp move lower.  This all happened on below-average volume in the SPY, average volume in the QQQ, and above-average volume in DIA.

There was no major economic news on Monday.  However, the 2-Year Bond auction came in at a lower yield than expected at 4.169% (compared to the previous auction’s 4.211% yield result). It is also worth noting that at the end of the day, the Trump administration said its plans for tariffs on Canada and Mexico remain “on track” and “will go forward.” The phony pretexts (fentanyl) of the tariffs were always irrelevant as the White House now says these are a negotiation tactic for renegotiation of the trade deal he struck in his last administration.

After the close, BWXT, CTRA, FANG, GFL, KBR, OKE, PRIM, SBAC, MODG, TCOM, UCTT, VVX, and ZM all reported beats on both the revenue and earnings lines. However, CLF, CIVI, O, and PSA missed on both the top and bottom lines.

Overnight, Asian markets were red across the board.  Thailand (-2.38%), Japan (-1.39%), and Hong Kong (-1.32%) led the region lower.  In Europe, the opposite picture is taking shape with 12 of 14 bourses in the green at midday. The CAC (+0.01%), DAX (+0.13%), and FTSE (+0.34%) are leading the region higher in early afternoon trade. Meanwhile, in the US, as of 7:20 a.m., Futures are pointing toward a start just on the red side of flat.  The DIA implies a -0.01% open, the SPY is implying a -0.06% open, and QQQ implies a -0.22% open at this hour.  At the same time, 10-Year Bond Yields dropped sharply to 4.323% and Oil (WTI) is off three-tenths of a percent to $70.50 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to Conference Board Consumer Confidence (10 a.m.) and the API Weekly Crude Oil Stocks Report (4:30 p.m.).  The major earnings reports scheduled for before the open include AHCO, AS, AMT, BMO, BNS, CRI, CYD, DK, DRVN, ELAN, HSIC, HD, IGT, ITRI, KDP, KTB, LGIH, MIDD, PNW, PEG, SEE, SRE, STN, SGHC, BLD, and YSG.  Then after the close, AGL, AMC, AXON, BGS, CZR, CWH, CHRD, CPNG, EXR, FIHL, FSLR, GO, HY, CART, INTU, JAZZ, KEYS, LNW, MASI, MATX, OUT, PARR, PR, RRC, STRL, and WDAY report. 

In economic news later this week, on Wednesday, EIA Weekly Crude Oil Inventories and January New Home Sales are reported.  We also hear from Fed Member Bostic twice (midnight and noon). On Thursday we get Jan. Core Durable Goods Orders, Jan. Durable Goods Orders, Q4 Core PCE Prices, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, January Pending Home Sales, and Fed member Harker speaks.  Finally, on Friday, Jan. Core PCE Prince Index, Jan. PCE Price Index, Jan. Goods Trade Balance. Jan. Personal Spending, Jan. Retail Inventories, and Chicago PMI are reported.

In terms of earnings reports later this week, on Wednesday, AAP, AER, ABEV, BUD, APG, AVA, BLMN, BCO, CTRI, COMM, DOLE, DY, EME, ENOV IEP, ICL, LINE, LOW, NRG, ODP, OPCH, SWX, SHOO, TJX, UTHR, UWMC, VRSK, A, APA, ARDT, ARKO, BBSI, CHE, CRGY, EXE, CRH, CAPL, DORM, EBAY, WTRG, FE, FRWD, GRBK, DEF, HG, HEI, HHH, INVH, KNTK, VAC, MYRG, NTNX, NVDA, OVV, PARA, PSTG, CRM, SRPT, SBGI, SNOW, SUI, SNPS, TALO, TDOC, TKO, UHS, URBN, and WES report.  On Thursday, we hear from ADT, GBTG, AMBP, ARGX, BBWI, BECN, CM, XRAY, DCI, SATS, ERJ, EDR, EFXT, EVRG, FMX, GEO, GTN, HGV, HRL, IBP, SJM, KOP, LSEA, LTH, TIGO, VYX, NXST, NCLH, PZZAA, PENN, PLKT, RY, FUN, STGW, TD, FTI, TGNA, TFX, VRN, VTRS, VST, WBD, ACHC, ALHC, AMRC, AHR, ACA, ASTH, ADSK, BE, CODI, DELL, SSP, EOG, ERIE, HPQ, ICFI, ICUI, IHRT, MTZ, MNST, MOS, NTAP, OPEN, PGRE, PBA, PRGO, RKT, SOLV, RUN, and TTEC.  Finally, on Friday, AES, AMR, AMRX, CLMT, GTLS, GLP, and OMI report.

So far this morning, AS, AMT, BMO, BNS, CRI, DRVN, HD, KDP, KTB, SEE, and BLD all reported beats on both the revenue and earnings lines. Meanwhile, HSIC missed on revenue while beating on earnings.  On the other side, ELAN beat on revenue while missing on earnings.  However, IGT and LGIH missed on both the top and bottom lines.

With that background, the market again looks undecided at this point of the premarket.  All three major index ETFs gapped modestly lower to open the early session, but all three have printed white-body candles since that point.  It looks as if DIA is trying to find support off a level stretching back to the October highs.  However, there is no obvious support level apparent for SPY or QQQ.  So, the short-term trend is bearish. At the same time, the mid-term trend remains a choppy sideways mess, with only the DIA resolving it bearishly at this point.  At the same time, the long-term trend remains bullish.  In terms of extension, QQQ is now stretched below its T-line (8ema) and SPY and DIA are not far behind.  Meanwhile, the T2122 indicator is in the top part of its oversold range.  So, while both sides of the market have room to work today, the Bulls have more room to move, if they can some momentum. In terms of the Big Dogs, eight of the 10 are in the red in the premarket.  NVDA (-0.78%) and INTC (-0.70%) are out in front pacing the losses while TSLA (+0.28%) and AAPL (+0.08%) are the only big dogs holding on to green territory.  As far as liquidity goes, NVDA leads TSLA by 10% with the next closes tickers trading six times less dollar-volume than the electric car maker.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets diverged at the open Friday.  SPY opened just 0.02% lower, DIA gapped down 0.71%, and QQQ gapped up 0.16%.  However, at that point, all three got in line and sold off in lock step the entire rest of the day.  This action gave us large, black-body candles with little to no wick in all three.  SPY and QQQ joined DIA in closing far below their T-line (8ema).  This happened on roughly average volume in the SPY, DIA, and QQQ.

On the day, nine of the 10 of the sectors were in the red as Technology (-2.74%) was out in front leading the way lower.  On the other side, Consumer Defensive (+0.53%) was the outlier and only sector in the green.  At the same time, SPY lost 1.71%, DIA lost 1.86%, and QQQ lost 2.08%.  Meanwhile VXX spiked 6.85% to close at 44.33 and T2122 dropped down into oversold territory, closing at 14.96.  On the bond side, 10-Year Bond yields fell to 4.431% and Oil (WTI) plummeted 3.08%, closing at $70.25 per barrel. So, Friday was the Bear’s day from the outset.  There was some divergence at the open, but that immediately melted away and the rout was on all day long.

The major economic news on Friday included Preliminary S&P Global Mfg. PMI, which came in a tad better than expected at 51.6 9compared to a 51.3 forecast and January’s 51.2 reading).  On the services side, Preliminary S&P Services PMI was lower than was expected at 49.7 (versus a 53.0 forecast and January’s 52.9 value).  Together this gave us a Preliminary S&P Global Composite PMI of 50.4 (down from January’s 52.9 number).  Later, the January Existing Home Sales were lower than anticipated at 4.08 million (compared to a 4.13 million forecast and December’s 4.29 million reading).  At the same time, Michigan Consumer Sentiment down to 64.7 (versus the 67.3 forecast and January value).  Looking forward, Michigan Consumer Expectations were also down to 64.0 (compared to a forecast and January reading of 67.3).  In terms of inflation, Michigan Consumer 1-Year Inflation Expectations were up sharply to 4.3% (versus a 4.3% forecast but up dramatically from January’s 3.3% number).  Looking further out, the Michigan Consumer 5-Year Inflation Expectations were up sharply to 3.5% (compared to a 3.3% forecast and the January 3.2% reading).

In Fed news, on Friday, Vice Chair Jefferson said that AI was speeding up market reactions to FOMC member statements.  Jefferson said, “For now, I do not think artificial intelligence is changing the way policymakers communicate, but research shows that it has affected how quickly information about policy is incorporated into asset prices.”  He went on to say more research is needed, but AI “may provide an incentive for investors to value speed over accuracy, and may reduce the long-run informativeness of asset prices, which could hurt the transmission of monetary policy.”  For now, Jefferson urged his fellow policymakers to “communicate as clearly as possible to avoid increasing uncertainty.” 

After the close, HE reported misses on both the revenue and earnings lines.

Overnight, Asian markets were mostly red with just two of the 12 exchanges above break-even.  India (-1.06%), Thailand (-0.83%), and Taiwan (-0.70%) paced the losses.  In Europe, the mixed picture leans toward the green side at midday with six of 14 bourses in red and eight above water.  The CAC (-0.42%), DAX (+0.61%), and FTSE (-0.02%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a green start to the morning.  DIA implies a +0.70% open, the SPY is implying a +0.45% open, and QQQ implies a +0.35% open at this hour.  At the same time, 10-Year Bond Yields are up to 4.445% and Oil (WTI) is just on the green side of flat at $70.46 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include AZUL, BRKB, CCO, DPZ, KSPI, OC, and WLK.  Then after the close, BWXT, CIVI, CLF, CTRA, FANG, GFL, KBR, OKE, PRIM, PSA, O, SBAC, MODG, TCOM, UCTT, VVX, and ZM report. 

In economic news later this week, on Tuesday we get Conference Board Consumer Confidence and API Weekly Crude Oil Stocks report.  Then Wednesday, EIA Weekly Crude Oil Inventories and January New Home Sales are reported.  We also hear from Fed Member Bostic twice (midnight and noon). On Thursday we get Jan. Core Durable Goods Orders, Jan. Durable Goods Orders, Q4 Core PCE Prices, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, January Pending Home Sales, and Fed member Harker speaks.  Finally, on Friday, Jan. Core PCE Prince Index, Jan. PCE Price Index, Jan. Goods Trade Balance. Jan. Personal Spending, Jan. Retail Inventories, and Chicago PMI are reported.

In terms of earnings reports later this week, on Tuesday we hear from AHCO, AS, AMT, BMO, BNS, CRI, CYD, DK, DRVN, ELAN, HSIC, HD, IGT, ITRI, KDP, KTB, LGIH, MIDD, PNW, PEG, SEE, SRE, STN, SGHC, BLD, YSG, AGL, AMC, AXON, BGS, CZR, CWH, CHRD, CPNG, EXR, FIHL, FSLR, GO, HY, CART, INTU, JAZZ, KEYS, LNW, MASI, MATX, OUT, PARR, PR, RRC, STRL, and WDAY. Then Wednesday, AAP, AER, ABEV, BUD, APG, AVA, BLMN, BCO, CTRI, COMM, DOLE, DY, EME, ENOV IEP, ICL, LINE, LOW, NRG, ODP, OPCH, SWX, SHOO, TJX, UTHR, UWMC, VRSK, A, APA, ARDT, ARKO, BBSI, CHE, CRGY, EXE, CRH, CAPL, DORM, EBAY, WTRG, FE, FRWD, GRBK, DEF, HG, HEI, HHH, INVH, KNTK, VAC, MYRG, NTNX, NVDA, OVV, PARA, PSTG, CRM, SRPT, SBGI, SNOW, SUI, SNPS, TALO, TDOC, TKO, UHS, URBN, and WES report.  On Thursday, we hear from ADT, GBTG, AMBP, ARGX, BBWI, BECN, CM, XRAY, DCI, SATS, ERJ, EDR, EFXT, EVRG, FMX, GEO, GTN, HGV, HRL, IBP, SJM, KOP, LSEA, LTH, TIGO, VYX, NXST, NCLH, PZZAA, PENN, PLKT, RY, FUN, STGW, TD, FTI, TGNA, TFX, VRN, VTRS, VST, WBD, ACHC, ALHC, AMRC, AHR, ACA, ASTH, ADSK, BE, CODI, DELL, SSP, EOG, ERIE, HPQ, ICFI, ICUI, IHRT, MTZ, MNST, MOS, NTAP, OPEN, PGRE, PBA, PRGO, RKT, SOLV, RUN, and TTEC.  Finally, on Friday, AES, AMR, AMRX, CLMT, GTLS, GLP, and OMI report.

So far this morning, BRKB, FDP, and OC reported beats on both the revenue and earnings lines.  Meanwhile, DPZ and WLK missed on both the top and bottom lines.

With that background, the market has modestly gapped up (rebounded) at the open of the Premarket.  All three major index ETFs are printing white-body, inside day candles so far in the early session.  However, there is divergence as DIA has no lower wick and only a tiny upper wick.  However, SPY and QQQ have much smaller candle bodies and have backed down into Doji-type candles early.  So, while all three are moving back toward their T-line, they are all still solidly below that average and the short-term trend remains bearish. The mid-term trend remains a choppy sideways mess.  At the same time, the long-term trend remains bullish.  In terms of extension, none of the three are stretched too far from their T-line this morning given them opening the premarket with a gap back toward it.  However, the T2122 indicator is in its oversold range.  So, both sides of the market have room to work today, but the Bulls have more room to move, if they can find momentum. In terms of the Big Dogs, seven of the 10 are in the green in the premarket.  NVDA (+1.32%) is way out in front pacing the gainers while TSLA (-1.67%) is far behind the rest lagging.  As far as liquidity goes, NVDA and TSLA are neck-and-neck on a modest volume morning. 

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Thursday saw the Bears in charge early and then a modest afternoon recovery.  SPY gapped down 0.23%, DIA gapped down 0.30%, and QQQ opened 0.15% lower.  At that point, all three major indexes followed through to the downside.  SPYA and QQQ reached their lows of the day just after 10 a.m. while DIA’s selloff was slower, reaching its low at noon.  From those lows, all three major index ETFs put in a long, slow, but steady rebound that took them about half way back to the opening level.  This action gave us black-bodied Hammer-type candles in all three, with DIA having a much larger body (relative to its wick) than the other two.  All three retested their T-line (8ema) from above during the day with SPY and QQQ passing the test while DIA crossed below and stayed there.  With this all said, it is worth remembering that SPY and QQQ are still less than half a percent below Wednesday’s all-time high close and lowly DIA is just two percent below its own all-time high.

On the day, six of the 10 of the sectors were in the red as Financial Services (-1/19%) was out in front leading the way lower.  On the other side, Energy (+0.48%) paced a more tightly-packed group of sectors that held up better and ended in the green. At the same time, SPY lost 0.42%, DIA lost 0.96%, and QQQ lost 0.42%.  Meanwhile VXX gained half a percent to close at 41.49 and T2122 fell back just below the midpoint of its mid-range, closing at 43.52.  On the bond side, 10-Year Bond yields fell to 4.507% and Oil (WTI) gained 0.39%, closing at $72.53 per barrel.  So, Thursday seemed to be a little pullback from those all-time highs in the broad SPY and QQQ indexes.  This may have been driven by WMT’s lackluster guidance following its premarket beats on both lines or perhaps just profit-taking.  In either case, the Bears did not cause any major damage and were unable to gain momentum.  This all happened on below-average volume in SPY and QQQ as well as average volume in DIA.

The major economic news on Thursday includes Weekly Initial Jobless Claims, which came in a bit higher than expected at 219k (compared to a 215k forecast and the prior week’s 214k value).  On the ongoing side, Weekly Continuing Jobless Claims were just on the green side of expectations at 1,869k (versus the 1,870k forecast but up from the prior week’s 1,845k reading).  At the same time, the Philly Fed Mfg. Employment Index was down to 5.3 (compared to the January 11.9 number). For the headline number, the Philly Fed Mfg. Index was also sharply down to 18.1 (versus a forecast of 19.4 but sharply lower than the January 44.3 reading).  Later, the US Leading Economic Indicators were worst than anticipated at -0.3% (compared to a -0.1% forecast and the December +0.1% value).  Meanwhile, the EIA Weekly Crude Oil Inventories showed a larger-than-predicted inventory build of 4.633 million barrels (versus a +3.200-million-barrel forecast and the previous week’s +4.070-million-barrel number).  Finally, after the close, the Fed Balance Sheet showed a significant (relatively speaking) decrease of $32 billion for the week, ending at $6.782 trillion.

In Fed news, on Wednesday, Atlanta Fed President Bostic told Yahoo Finance, “I’ve been really comfortable with the idea that we would take a pause and wait and see how the economy’s evolving and then use that information to guide what our policy should look like over the next several months.”  He went on to say Trump’s tariff’s (followed by their postponement and revision) makes it extremely hard to figure out inflation direction in the economy.  Bostic went on to say, “I definitely want to make sure that before jumping to any conclusions, I see precisely what the policies are.”  At the same time, Fed Vice Chair Jefferson said, “The performance of the U.S. economy has been quite strong overall.”  He went on to say that the Fed can take its time before making any more moves, saying, “I believe that, with a strong economy and a solid labor market, we can take our time to assess the incoming data to make any further adjustments to our policy rate.”  Later, the January FOMC Meeting Minutes were released.  Those minutes showed the FOMC is worried about tariffs and their impact on inflation.  The minutes noted that Fed policy is “significantly less restrictive” than it was before the rate cuts began, giving FOMC members time to evaluate conditions before making any additional moves.  The report went on to indicate committee members were worried about “Upside risks to the inflation outlook. In particular, participants cited the possible effects of potential changes in trade and immigration policy.”

In Fed news, on Thursday, Chicago Fed President Goolsbee said he does not expect (the FOMC’s favorite inflation indicator) the PCE to be as “sobering” as the recent CPI data.  Goolsbee said, “The CPI number was not great, (but) … The PCE number is probably going to still be not great, but it’s not (likely to be) as sobering as the CPI number.”  Meanwhile, Atlanta Fed President Bostic told Reuters Trump policy and policy impact uncertainty are impacting the Fed and companies he is speaking with.  He said “his baseline expectation” is for two quarter-percentage-point rate cuts later this year.  However, “the uncertainty around that expectation is pretty significant … There’s a lot that could happen that could influence that in both directions.”  At the same time, St. Louis Fed President Musalem told a New York audience “Market and some survey measures indicate that near-term expectations of inflation have risen notably over the past three months.”  He went on to say, “(if that does not change,) a more restrictive path of monetary policy relative to the baseline path (a rate hike) might be appropriate.”  Finally, Fed Governor Kugler said that “(US inflation) still has some way to go.”  She went on to comment on the lack of clarity Trump administration policy and its effects, saying “The potential net effect of new economic policies also remains highly uncertain and will depend on the breadth, duration, reactions to, and, importantly, specifics of the measures adopted.”  She went on to state the obvious, “Going forward, in considering the appropriate federal funds rate, we will watch these developments closely and continue to carefully assess the incoming data and evolving outlook.”

After the close, AMN, BKNG, CENX, COKE, FIX, ED, CPRT, DBX, EXPI, FND, FNF, GMED, PODD, LYV, MELI, NEM, RXT, REZI, RNG, SFM, TXRH, and VICI all reported beats on both the revenue and earnings lines.  Meanwhile, EGO, NU, RYI, WSC, and WKC missed on revenue while beating on earnings. On the other side, AKAM, BCC, FG, FYBR, RIVN, and SEM beat on revenue while missing on earnings.  However, XYZ, CGAU, EVH, GLOB, IAG, RYAN, and RHP missed on both the top and bottom lines.

Overnight, Asian markets were mostly green with just three of the 12 exchanges below break-even.  China led the region with Hong Kong (+3.99%) was way out in front followed by Shenzhen (+1.82%) and Taiwan (+1.03%).  In Europe, we see a similar picture taking shape with 12 of the 14 bourses in the green at midday.  The CAC (+0.54%), DAX (+0.22%), and FTSE (+0.13%) lead the continent higher on broad-based gains in early afternoon trade. In the US, as of 7:35 a.m., Futures are pointing toward a mixed start to the morning.  The DIA implies a-0.29% open, while SPYU is implying a +0.07% open, and QQQ implies a +0.30% open at this hour.  At the same time, 10-Year Bond Yields are down to 4.488% and Oil (WTI) is off 0.91% to $71.82 per barrel in early trading.

The major economic news scheduled for Friday includes Preliminary S&P Global Mfg. PMI, Preliminary S&P Services PMI, and Preliminary S&P Global Composite PMI (all at 9:45 a.m.), January Existing Home Sales, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations (all at 10 a.m.).  The major earnings reports scheduled for before the open include TDS, TXNM, and VIPS.  Then after the close, HE reports. 

So far this morning, TDS and VIPS have reported beats on both the revenue and earnings lines.  Meanwhile, TXNM missed on revenue while coming in in-line on earnings.

With that background, the market does look truly undecided or perhaps rotational at this point of the premarket.  DIA gapped down and has printed a larger, black-body candle with no lower wick so far this morning. At the same time, SPY opened modestly lower and QQQ opened modestly higher in the early session.  However, they have both printed white-body candles with no wick and QQQ is giving a larger-body candle to boot.  So, SPY is above, QQQ is above and pulling away, and DIA is below and pulling away from their T-lines (8ema). So, the short-term trend is mixed, but modestly bullish in the broader indexes with the DIA pushing against that bias. The mid-term trend remains a choppy sideways mess that is trying to resolve itself bullishly (except DIA which is trying to roll over).  At the same time, the long-term trend remains bullish.  In terms of extension, none of the three are stretched too far from their T-line.  At the same time, the T2122 indicator sits in the center of its mid-range.  So, both sides of the market have room to work today if they can find momentum. In terms of the Big Dogs, nine of the 10 are in the green in the premarket.  INTC (+0.92%) is out front pacing the gainers while APPL (-0.029%) is the laggard and only Big Dog in the red.  As far as liquidity goes, NVDA (+0.03%) leads with TSLA (+0.07%) not too far behind and the next-closest Big Dog having traded only one-third as much as TSLA.  However, bear in mind that this is a VERY light-volume premarket session.  Also remember that it is Friday, Pay Day, and we have a long weekend news cycle ahead before the market opens Monday.  So, prepare your account.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets started lower and ended higher Tuesday.  SPY gapped down 0.20%, DIA gapped down 0.22%, and QQQ opened 0.14% lower.  From there, we had 30 minutes of traders getting their act together with QQQ continuing lower to the low of the day and both SPY and DIA trading sideways right along the open.  Then, for the most part the market slowly rallied modestly to the highs of the day about 3 p.m. before SPY and QQQ took some profits the last hour. With that said, all three rallied the last 10 minutes DIA.  This action gave us white candles in all three, with SPY and QQQ both printing new all-time highs and new all-time high closes.  QQQ also gave us a Spinning top while DIA opened below and crossed back above its T-line (8ema) during the day. 

On the day, five of the 10 of the sectors were in the green with Healthcare (+0.81%) and Consumer Defensive (+0.62%) well out in front leading the gainers.  On the other side, Basic Materials (-1.11%) was by far the biggest loser and laggard. At the same time, SPY gained 0.24%, DIA gained 0.17%, and QQQ was just on the green side of flat to 0.03%.  Meanwhile VXX fell 1.27% to close at 41.27 and T2122 fell back to the center of its mid-range to close at 52.45.  On the bond side, 10-Year Bond yields fell to 4.535% and Oil (WTI) gained 0.47%, closing at $72.19 per barrel.  So, Tuesday really was another version of a sideways, if slightly bullish, day. This came on below-average volume in all three major index ETFs. 

The major economic news on Wednesday included Preliminary January Building Permits were up slightly to 1.483 million (compared to a forecast of 1.460 million and December’s 1.482 million number).  At the same time, January Housing Starts were down to 1.366 million (versus the 1.390 million forecast and well down from the Dec. 1.515 million reading).  Later, after the close, the API Weekly Crude Stocks report showed a larger inventory build than anticipated at +3.339 million barrels (compared to a +2.200-million-barrel forecast, but down sharply from the previous week’s +9.043 million barrels). 

In Fed news, on Wednesday, Atlanta Fed President Bostic told Yahoo Finance, “I’ve been really comfortable with the idea that we would take a pause and wait and see how the economy’s evolving and then use that information to guide what our policy should look like over the next several months.”  He went on to say Trump’s tariff’s (followed by their postponement and revision) makes it extremely hard to figure out inflation direction in the economy.  Bostic went on to say, “I definitely want to make sure that before jumping to any conclusions, I see precisely what the policies are.”  At the same time, Fed Vice Chair Jefferson said, “The performance of the U.S. economy has been quite strong overall.”  He went on to say that the Fed can take its time before making any more moves, saying, “I believe that, with a strong economy and a solid labor market, we can take our time to assess the incoming data to make any further adjustments to our policy rate.”  Later, the January FOMC Meeting Minutes were released.  Those minutes showed the FOMC is worried about tariffs and their impact on inflation.  The minutes noted that Fed policy is “significantly less restrictive” than it was before the rate cuts began, giving FOMC members time to evaluate conditions before making any additional moves.  The report went on to indicate committee members were worried about “Upside risks to the inflation outlook. In particular, participants cited the possible effects of potential changes in trade and immigration policy.”

After the close, AWK, ANSS, BMRN, CVNA, CF, CAKE, EXAS, HLF, HST, ICLR, PK, PAAS, and TS all reported beats on both the revenue and earnings lines. Meanwhile, AGI, NGD, OGS, OII, and VTLE missed on revenue while beating on earnings.  On the other side, CHDN, JXN, KALU, RS, TOST beat on revenue while missing on earnings.  However, NDSN, NOG, NTR, SM, and TFII missed on both the top and bottom lines.

Overnight, Asian markets were nearly all red, with the lone exception of Shenzhen (+0.2%).  Hong Kong (-1.60%), Thailand (-1.32%), and Japan (-1.24%) paced the losses.  In Europe, a brighter picture is taking shape with nine of the 14 bourses in the green at midday.  The CAC (+0.54%), DAX (+0.42%), and FTSE (-0.40%) are typical and lead the region modestly higher in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a down start to the morning.  DIA implies a -0.29% open, the SPY is implying a -0.29% open, and QQQ implies a -0.27% open at this hour.  At the same time, 10-Year Bond Yields have fallen to 4.515% and Oil (WTI) is just on the green side of flat at $72.29 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Employment, and Philly Fed Mfg. Index (all at 8:30 a.m.), US Leading Economic Indicators (10 a.m.), EIA Weekly Crude Oil Inventories (noon), and the Fed Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open include BABA, ALIT, COLD, BAX, BILI, BLDR, CCJ, CVE, CNP, LNG, CSTM, CNR, CWK, DAN, DNB, NVRI, EPAM, ESAB, AG, FCN, GTX, HAS, DINO, HNI, LAMR, DRS, LKQ, NETS, NICE, POOL, PRMB, PWR, SABR, SO, TRGP, TPX, TAC, ULS, UPBD, VAL, WMT, and W. Then after the close, AKAM, LNT, AMN, XYZ, BCC, BKNG, CGAU, CENX, ED, CPRT, DBX, EGO, EVH, EXPI, FG, FND, FNF, FYBR, GLOB, GMED, IAG, PODD, LYV, MELI, NEM, NU, RXT, REZI, RNG, RIVN, RYAN, RYI, RHP, SEM, SFM, TXRH, ICI, and WSC report. 

In economic news later this week, on Friday we get Preliminary S&P Global Mfg. PMI, Preliminary S&P Services PMI, Preliminary S&P Global Composite PMI, January Existing Home Sales, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Friday, we hear from TDS, TXNM, VIPS, and HE.

So far this morning, BAX, BILI, CCJ, EPAM, ESAB, GTX, HAS, DRS, NICE, MD, POOL, TRN, ULS, UPBD, and WMT all reported beats on both the revenue and earnings lines. Meanwhile, COLD, BLDR, CNP, CWK, DAN, NVRI, LAMR, LKQ, NTES, and PWR missed on revenue while beating on earnings.  On the other side, BABA, CQP, CSTM, CNR, and W beat on revenue while missing on earnings.  However, CVE, DINO, PRMB, and TAC missed on both the top and bottom lines.

With that background, the market seems “bearishly undecided” so far in the premarket. All three major index ETFs opened the early session with a modest gap lower, but have printed small candles since that point.  SPY and QQQ are giving us indecisive Doji and Spinning Top candles respectively.  Meanwhile, DIA is printing a small, black-body premarket candle that is retesting its T-line (8ema) from above.   Of course, SPY and QQQ remain above their T-lines. It is also worth noting that SPY and QQQ are doing this while sitting at or at least very near all-time highs, while DIA sits only one percent below its own all-time high.  So, the short-term trend is modestly bullish with the DIA challenging that bias again. The mid-term trend remains a choppy sideways mess that is trying to resolve itself bullishly. At the same time, the long-term trend remains bullish.  In terms of extension, none of the three are stretched too far from their T-line.  At the same time, the T2122 indicator sits in the center of its mid-range.  So, both sides of the market have room to work today if they can find momentum. In terms of the Big Dogs, five of the 10 are in the red and the other half are green.  INTC (-1.48%) is well out front pacing the losses while TSLA (+0.29%) and AMD (+0.24%) lead the gainers.  As far as liquidity goes, TSLA has traded slightly more dollar volume than NVDA (+0.11%), which has traded double the next closest ticker.  However, it should be noted that overall it is a very low volume premarket session.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Tuesday was another sideways day.  SPY opened 0.19% higher, DIA opened 0.11% lower, and QQQ gapped up 0.30%. From there, all three major index ETFs meandered sideways in slightly different ways. SPY wandered back-and-forth across its opening gap until 3:50 p.m. when it spiked the last 10 minutes, closing on a new high for the day. Meanwhile, QQQ sold off modestly for an hour before chopping sideways around its prior closing level also until 3:50 p.m.  As with SPY, QQQ spiked the last 10 minutes to close in the upper part of its gap. For its part, DIA did a combination of the what SPY and QQQ did.  First it sold off for 40 minutes, rallying back to the opening level, and then falling back to grind in a tight range along the prior close before spiking the last 10 minutes to close very near a new high.  This action gave us Hammer / Hanging Man candles in all three major index ETFs. SPY and QQQ both printed new all-time highs and closed at new all-time high closes on different color tiny-body Hanging Man candles (SPY white and QQQ black).  At the same time, DIA printed a white-bodied Hammer that retested its T-line and closed above after opening and trading most of the day below that level.

On the day, nine of the 10 of the sectors were in the green with Energy (+1.22%) and Utilities (+1.16%) out front leading the way higher.  On the other side, Consumer Cyclical (-0.10%) was the only sector in the red and the laggard.  At the same time, SPY gained 0.29%, DIA was just on the green side of flat at +0.04%, and QQQ gained 0.23%.  Meanwhile VXX fell half a percent to close at 41.80 and T2122 climbed back to the top half of its mid-range to close at 68.81.  On the bond side, 10-Year Bond yields rose to 4.556% and Oil (WTI) gained 1.47%, closing at $71.78 per barrel.  So, Monday really was another sideways day where almost all of the moves came at the open and the close.  This came on below-average volume in the DIA and well-below-average volume in the SPY and QQQ. 

The major economic news on Tuesday was limited to NY Empire State Mfg. Index, which came in higher than expected at +5.70 (compared to a forecast of -1.90 and the January reading of -12.60).  Then, at the close, Dec. TIC Net Long-Term Transactions were lower than expected at $72.9 billion (versus a $149.1 billion forecast and up from November’s $53.2 billion value). 

In Fed news, on Tuesday, San Francisco Fed President Daly indicated that while there is no reason to panic, the FOMC should keep rates where they are (no more cuts) until there is more visible progress on inflation. Daly said, “Policy needs to remain restrictive until I see that we are really continuing to make progress on inflation.” She continued, “We want to be, in my judgment, careful … before we make the next adjustment.”  Daly went on to discuss the uncertainty caused by Trump policies on tariffs, immigration, and taxes, which could change the direction of the economy.

After the close, ANDE, ANET, BXC, CDNS, CE, COMP, CVI, DVN, ESI, GNW, IFF, LZB, MBC, MTDR, RBA, RUSHA, FOUR, and SPNT all reported beats on both the revenue and earnings lines.  Meanwhile, EQT, NGVT, JHX, OXY, QUAD, and UIS missed on revenue while beating on earnings. On the other side, CYH and CSGP beat on revenue while missing on earnings.  However, BKD, FLS, SON, TX, and TOL missed on both the top and bottom lines.

Overnight, Asian markets were mixed on modest moves with South Korea (+1.70%) and Shenzhen (+1.46%) well out front leading the gainers.  Meanwhile, Australia (-0.73%) was half a percent behind the rest pacing the losses.  In Europe, the bourses are mostly red with just two spots of green among the 14 exchanges.  The CAC (-0.68%), DAX (-0.78%), and FTSE (-0.33%) lead the region lower in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a mixed, flat start.  The DIA implies a -0.16% open, SPY is implying a -0.07% open, and QQQ implies a +0.03% open at this hour.  At the same time, 10-Year Bond Yields are up to 4.566% and Oil (WTI) is up 0.88% to $72.48 per barrel in early trading.

The major economic news scheduled for Wednesday includes Preliminary January Building Permits and January Housing Starts (both at 8:30 a.m.), FOMC Meeting minutes (2 p.m.), and the API Weekly Crude Stocks report (4:30 p.m.).  The major earnings reports scheduled for before the open include ADI, BLCO, CRL, CNK, CLVT, CLH, ETSY, GRMN, GIL, HSBC, HBM, JLL, LPX, OGE, PSN, PRG, PHG, SCL, TECK, TNL, TRMB, and WWW.  Then after the close, AGI, AWK, ANSS, BTG, BHC, BMRN, CVNA, CF, CAKE, CHDN, EQX, EXAS, HLF, HST, ICLR, JXN, KALU, MFC, NGD, NDSN, NOG, NTR, OII, OGS, PAAS, PK, RS, SM, TS, TFII, TOST, VALE and VTLE report. 

In economic news later this week, on Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Employment, Philly Fed Mfg. Index, US Leading Economic Indicators, EIA Weekly Crude Oil Inventories, and the Fed Balance Sheet are reported.  Finally, on Friday we get Preliminary S&P Global Mfg. PMI, Preliminary S&P Sevices PMI, Preliminary S&P Global Composite PMI, January Existing Home Sales, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Thursday, BABA,ALIT, COLD, BAX, BILI, BLDR, CCJ, CVE, CNP, LNG, CSTM, CNR, CWK, DAN, DNB, NVRI, EPAM, ESAB, AG, FCN, GTX, HAS, DINO, HNI, LAMR, DRS, LKQ, NETS, NICE, POOL, PRMB, PWR, SABR, SO, TRGP, TPX, TAC, ULS, UPBD, VAL, WMT, W, AKAM, LNT, AMN, XYZ, BCC, BKNG, CGAU, CENX, ED, CPRT, DBX, EGO, EVH, EXPI, FG, FND, FNF, FYBR, GLOB, GMED, IAG, PODD, LYV, MELI, NEM, NU, RXT, REZI, RNG, RIVN, RYAN, RYI, RHP, SEM, SFM, TXRH, ICI, and WSC report.  Finally, on Friday, we hear from TDS, TXNM, VIPS, and HE.

So far this morning, ADI, BLCO, CRL, CLVT, CLH, GRMN, GIL, JLL, LPX, OGE, PRG, TNL, TRMB, and WWW all reported beats on both the revenue and earnings lines. At the same time, ETSY and HBM missed on revenue while beating on earnings. On the other side, CNK, PHG, and SCL beat on revenue while missing on earnings. However, PSN missed on both the top and bottom lines.

With that background, all three major index ETFs opened the premarket slightly higher, but then have printed small black-body, indecisive (wicky) candles. DIA is retesting its T-line (8ema) from above and has so far crossed just below that average. Meanwhile, SPY and QQQ remain above their respective T-lines. It is also worth noting that SPY and QQQ are doing this while sitting at all-time highs.  Regardless, the short-term trend is modestly bullish with the DIA challenging that bias. The mid-term trend remains a choppy sideways mess that is trying to resolve itself bullishly. At the same time, the long-term trend remains bullish.  In terms of extension, none of the three are stretched too far from their T-line.  However, the other two major index ETFs remain close to their T-line and T2122 sits in the top half of its mid-range.  So, both sides of the market have room to work today if they can find momentum. In terms of the Big Dogs, six of the 10 are in the green with AMD (+0.79%) leading the tech sector higher.  On the other side, INTC (-2.88%) is by far (by 2.5%) the laggard after rumors of a TSM and AVGO buyout did not gather strength yesterday. As far as liquidity goes, NVDA (+0.41%) has traded almost twice as much dollar volume as TSLA (+0.12%) with INTC 40% behind TSLA.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets mostly ground sideways Friday.  SPY opened up 0.04%, DIA opened down 0.04%, and QQQ opened dead flat.  From there, QQQ ground sideways in a tight range until 12:30 p.m. when it started a modest rally lasting to 2:15 p.m. before wobbling sideways the rest of the day. Meanwhile, after its open SPY chopped to the side, back-and-forth across its “gap” all day.  For its part, DIA sold off in a very slow and steady manner all day.  This action gave us divergent candles.  SPY printed a Doji candle, essentially at the same price as Thursday’s close.  DIA gave us a black-bodied Bearish Harami of Inverted Hammer type that closed just pennies above its T-line (8ema).  However, QQQ printed a white-bodied candle with small upper wick that came within pennies of its all-time high.  This happened on well-below average volume in SPY and QQQ as well as below-average volume in DIA.

On the day, seven of the 10 of the sectors were in the red with Consumer Defensive (-0.73%) and Healthcare (-0.67%) out front leading the way lower.  On the other side, Communications Services (+0.60%) and Consumer Cyclical (+0.57%) holding up better than the other sectors.  At the same time, SPY was just on the red side of dead flat, DIA lost 0.33%, and QQQ gained 0.42%.  Meanwhile VXX was also just on the red side of flat at 42.00 and T2122 fell back into the middle of its mid-range, closing at 56.92.  On the bond side, 10-Year Bond yields dropped to 4.478% and Oil (WTI) was down 0.88%, closing at $70.66 per barrel.  So, Friday really was mostly a sideways day.  There may have been a little rotation from DIA into QQQ, but it was nothing too dramatic.  With the light volumes, it almost felt like the big money left early to stretch the weekend even more than it already is stretched at 3-days.

The major economic news on Friday included January Month-on-Month Core Retail Sales, which came in down sharply at -0.4% (compared to a +0.3% and far down from December’s +0.7%).  On the headline number, January Month-on-Month Retail Sales, were DOWN SHARPLY to -0.9% (versus a +0.3% forecast and far below December’s +0.7% reading).  At the same time, the January Export Price Index was up sharply to +1.3% (compared to a forecasted +0.3% and December’s +0.5%).  On the incoming side, the January Import Price Index was only up a tick to +0.3% (versus a +0.4% forecast but up from December’s +0.2% value).  Later, January Month-on-Month Industrial Production fell less than expected to +0.5% (compared to a +0.3% forecast but down sharply from the December+1.0% reading).  Meanwhile, December Business Inventories were down at -0.2% (compared to a 0.0% forecast and November’s +0.1% value).  At the same time, December Retail Inventories came in a -0.1% (versus a +0.2% forecast and November’s +0.5% number).

Overnight, Asian markets were mostly green with seven of the 12 regional exchanges above break-even. Hong Kong (+1.59%) was by far the biggest gainer while Shenzhen (-1.61%) was the biggest loser.  In Europe, we see a similar picture at midday with 10 of the 14 bourses in the green. The CAC (+0.05%), DAX (-0.02%), and FTSE (+0.15%) are typical and lead the region higher in early afternoon trade.  Meanwhile, in the US, as of 7 a.m., Futures are pointing toward a higher start to the holiday-shortened week.  DIA implies a +0.11% open, the SPY is implying a +0.33% open, and QQQ implies a +0.37% open at this hour.  At the same time, 10-Year Bond yields are back up to 4.509% and Oil (WTI) is up 1.00% to $71.45 per barrel in early trading.

There is no major economic news scheduled for Tuesday. However, Fed member Daly speaks (10:20 a.m.). The major earnings reports scheduled for before the open include ALLE, BIDU, CC, CAG, ETR, EXPD, FLR, GPC, IQ, MDT, TPH, VMI, VC, VMC, and WSO.  Then after the close, ANET, BKD, CDNS, CE, CYH, COMP, CSGP, CVI, DVN, ESI, EQT, FLS, NGVT, IFF, JHX, LZB, MTDR, OXY, QUAD, RBA, RUSHA, SON, TX, TOL, and UIS report. 

In economic news later this week, on Wednesday we get Preliminary January Building Permits, January Housing Starts, FOMC Meeting minutes, and API Weekly Crude Stocks report.  Then Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Employment, Philly Fed Mfg. Index, US Leading Economic Indicators, EIA Weekly Crude Oil Inventories, and the Fed Balance Sheet are reported.  Finally, on Friday we get Preliminary S&P Global Mfg. PMI, Preliminary S&P Sevices PMI, Preliminary S&P Global Composite PMI, January Existing Home Sales, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Wednesday we hear from ADI, BLCO, CRL, CNK, CLVT, CLH, ETSY, GRMN, GIL, HSBC, HBM, JLL, LPX, OGE, PSN, PRG, PHG, SCL, TECK, TNL, TRMB, WWW, AGI, AWK, ANSS, BTG, BHC, BMRN, CVNA, CF, CAKE, CHDN, EQX, EXAS, HLF, HST, ICLR, JXN, KALU, MFC, NGD, NDSN, NOG, NTR, OII, OGS, PAAS, PK, RS, SM, TS, TFII, TOST, VALE and VTLE.  Then Thursday, BABA,ALIT, COLD, BAX, BILI, BLDR, CCJ, CVE, CNP, LNG, CSTM, CNR, CWK, DAN, DNB, NVRI, EPAM, ESAB, AG, FCN, GTX, HAS, DINO, HNI, LAMR, DRS, LKQ, NETS, NICE, POOL, PRMB, PWR, SABR, SO, TRGP, TPX, TAC, ULS, UPBD, VAL, WMT, W, AKAM, LNT, AMN, XYZ, BCC, BKNG, CGAU, CENX, ED, CPRT, DBX, EGO, EVH, EXPI, FG, FND, FNF, FYBR, GLOB, GMED, IAG, PODD, LYV, MELI, NEM, NU, RXT, REZI, RNG, RIVN, RYAN, RYI, RHP, SEM, SFM, TXRH, ICI, and WSC report.  Finally, on Friday, we hear from TDS, TXNM, VIPS, and HE.

So far this morning, ALLE, BIDU, and ETR reported beats on both the revenue and earnings lines.  Meanwhile, MDT and TPH missed on revenue while beating on earnings.  On the other side, CC and GPC beat on revenue while missing on earnings. However, FLR missed on both the top and bottom lines.

With that background, it looks like the market wants to gap modestly higher (at least early this morning).  All three major index ETFs have opened the premarket with a modest gap higher and, so far, have printed tiny, indecisive candles (QQQ and DIA have tiny black bodies and SPY a tiny white body). DIA did briefly run down to retest its T-line (8ema) from above and has, so far, passed that test.  It is also worth noting that this morning’s gap and action has taken QQQ to new all-time highs.  So, at this time, all three remain above their T-line, meaning the short-term trend is modestly bullish. The mid-term trend remains a choppy sideways mess. At the same time, the long-term trend remains bullish.  In terms of extension, after the premarket gap-up, QQQ is starting to get a bit stretched to the upside.  However, the other two major index ETFs remain close to their T-line.  Meanwhile, T2122 sits in the middle of its mid-range.  So, both sides of the market have room to work today if they can find momentum. In terms of the Big Dogs, nine of the 10 are in the green with INTC (+6.06%) far out front (by 5%) leading the tech sector higher.  On the other side, META (-0.20%) is the laggard and only Big Dog in the red this morning.  As far as liquidity goes, TSLA (+0.91%) has traded 50% more dollar volume as NVDA (+1.05%), which itself has traded twice as much as INTC.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Thursday, with the exception of DIA, the Bulls were in charge.  SPY opened 0.18% higher, DIA gapped up 0.37%, and QQQ gapped up 0.32%.  From there, both SPY and QQQ rallied steadily to new highs by about 10:45 a.m.  At that point, both went through a modest midday slump that took them back toward (but not reaching) the opening level by 1:20 p.m.  However, then the Bulls stepped back in to lead another steady rally to new highs all the way into the last few minutes.  For its part, after the open, DIA immediately sold off back to the prior close level before meandering sideways until 1:20 p.m.  From there, just as in the SPY and QQQ, DIA rallied strongly and steadily, but unlike the other two, DIA slumped the last 30 minutes.  This action gave us large, white-bodied candles that crossed above the T-line in SPY and QQQ (gapped above in QQQ).  Meanwhile, DIA printed a white, Spinning Top candle that crossed above its T-line during the day.

On the day, all 10 of the sectors were in the green with Communications Services (+1,82%) out in front leading the market higher. On the other side, Industrials (+0.12%) was by far the worst-performing sector.  At the same time, SPY gained 1.06%, DIA gained 0.82%, and QQQ gained 1.44%.  Meanwhile VXX fell 1.89%, closing at 42.06 and T2122 popped into the top half of the mid-range, closing at 72.22.  On the bond side, 10-Year Bond yields dropped to 4.535% and Oil (WTI) was just on the green side of flat, closing at $71.40 per barrel.  So, Thursday saw the market lay a classic Bear Trap.  The Bears over-reacted to news, gapping stocks lower across the entire market.  Then the Bulls stepped in to immediately fade that gap and the Bears never regained their footing.  By the time the damage was done to the Bears, markets took profits and meandered sideways in the afternoon.  This all happened on below-average volume in all three major index ETFs.

The major economic news on Thursday included Weekly Initial jobless Claims, which came in slightly lower than expected at 213k (compared to a 217k forecast but down from the prior week’s 220k reading).  On the ongoing front, Weekly Continuing Jobless Claims were also down to 1,850k (versus a 1,880k forecast and the previous week’s 1,886k number).  In terms of Producer Prices, the January Month-on-Month Core PPI was as expected at +0.3% (compared to a +0.3% forecast but down a tick from the December +0.4% value).  For the headline number, January Month-on-Month PPI was +0.4% (higher than the +0.3% forecast but down a tick from December’s +0.5% number).  Then, after the close, the Fed’s Balance Sheet was reported and broke trend by growing $3 billion to $6.814 trillion.   

In Fed news, on Thursday, the NY Fed released a report saying that consumer credit only rose modestly in Q4.  The report said, “Consumers are in pretty good shape in terms of the household debt landscape, largely driven by stable balances and solid performance in mortgage loans.  However, for auto loans, higher car prices combined with higher interest rates have driven monthly payments upward and have put pressure on consumers across the income and credit score spectrum.”  In terms of numbers, the report said credit card balances rose $45 billion from the prior quarter to $1.21 trillion, while mortgage balances ticked up $11 billion to $12.61 trillion amid a rise in mortgage creation during the quarter. The report said that auto loan balances rose by $11 billion to $1.66 trillion versus the prior quarter.

After the close, AEM, AL, ABNB, AMAT, BFAM, CAE, COIN, DVA, GT, LEG, MSI, ROKU, and WYNN all reported beats on both the revenue and earnings lines.  At the same time, AEE, DXCM, GDDY, PANW, RWT, and TWLO reported beats on revenue while missing on earnings.  On the other side, DLR, IR, and RSG missed on revenue while beating on earnings.   However, BIO and DKNG missed on both the top and bottom lines.

Overnight, Asian markets were mixed with six of the 12 exchanges green and the other half red.  Hong Kong (+3.69%) was by far the biggest mover and led the gainers while Taiwan (-1.05%) paced the losses. In Europe, the bourses are mostly green at midday.  The CAC (+0.42%), DAX (-0.27%), and FTSE (-0.16%) lead the nine green to five red exchange ratio higher in early afternoon trade.  Meanwhile, in the US, Futures are pointing to a down start to the day.  DIA implies a -0.26% open, the SPY is implying a -0.15% open, and QQQ implies a -0.17% open at this hour.  At the same time, 10-Year Bond Yields are up to 4.537% and Oil (WTI) is up three-quarters of a percent to $71.86 per barrel in early trading.

The major economic news scheduled for Friday includes Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, and Jan. Import Price Index (all at 8:30 a.m.), Jan. Industrial Production (9:15 a.m.), Dec. Business Inventories and Dec. Retail Inventories (both at 10 a.m.).  The major earnings reports scheduled for before the open include AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS.  Then after the close, there are no reports scheduled. 

So far this morning, ENB, FNMA, MGA, MRNA, POR, and TRP reported beats on both the revenue and earnings lines.  Meanwhile, FTS beat on revenue while missing on the earnings line. On the other side THS missed on revenue while beating on earnings. However,  AMCX missed on both the top and bottom lines.

With that background, it looks like the market is modestly lower to start the morning. All three major index ETFs are printing black candles. However, only DIA has a significant candle body, but even it has not quite retested its T-line (8ema) yet.  So, at this time, all three remain above their T-line, meaning the short-term trend is modestly bullish. The mid-term trend remains a choppy sideways mess. At the same time, the long-term trend remains bullish.  In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the upper half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, six of the 10 are in the red with AMZN (-0.35%) pacing the losses.  On the other side, INTC (+1.95%) is by far the biggest mover and leads the gainers.  As far as liquidity goes, TSLA (+1.36%) has traded twice as much dollar volume as NVDA (-0.05%), which itself has traded twice as much as INTC (which has traded three times as much dollar-volume as the next most active ticker). However, it is worth noting that this is still a light volume early session overall.  Finally, remember this is Friday…ahead of a 3-day Weekend.  So, prepare your account for the layoff.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service