Markets diverged at the open again Friday with the QQQ gapping down a quarter of a percent, the SPY opening flat, and the DIA gapping up by four-tenths of a percent. Still, at that point, all 3 major indices got in lock-step as the short squeeze was on.  We saw a strong rally until 11:15 am and then a slower rally continuing the rest of the day, closing near the highs, in all three of those indices.  This action gave us large, white, Bullish Engulfing candles in both the SPY and QQQ as well as a gap-up, white near Marubozu candle in the DIA.  It’s worth noting that the DIA is getting quite extended from its T-line (8ema) and had also broken up through its 200sma by the close.  Meanwhile, SPY broke its 50sma while the QQQ has not quite made it to that test. 

On the day, nine of the 10 sectors are in the green.  Technology (+2.78%) and Comm.  Services (+2.62%) led the market higher while Basic Materials (-0.27%) was the down sector.  The SPY gained 2.35%, DIA gained 2.51%, and QQQ gained 3.06%.  At the same time, VXX fell 2.34% to 17.93 while T2122 is very much overbought at 95.99.  10-year bond yields remain up slightly to 4.016% and Oil (WTI) was down 0.99% to $88.19/barrel.  Overall, it was a strong bull day (short squeeze?) in the recent uptrend.  It also led to a second straight week of gains in the DIA, SPY, and QQQ.

In economic news, September PCE Price Index (a favorite Fed indicator) remained steady versus the August readings at +0.3% month-on-month and +6.2% year-on-year.  However, September Personal Spending came in higher than expected at +0.6% (as compared to +0.4% forecast but in line with the August reading of +0.6%).  Meanwhile, the Michigan Consumer Sentiment came in slightly improved at 59.9 (versus the 59.8 forecasted and the previous reading of 59.8).  This would all seem to indicate that while inflation remains high, it may have stopped rising, and in either case, the consumer has not slowed down buying and at least has not had a decline in mood.  Finally, the Sept. Pending Home Sales fell much more than forecast at -10.2% (compared to a -5.0% forecast and the August reading of -1.9%).  This obviously corresponds to the interest rate sensitivity of home buyers that would be locking in 30-year debts.

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In stock news, Bloomberg reported Friday that APO, BX, and KKR are now under investigation for antitrust activities through their influence on the boards of various companies in which they hold major stakes.  Across the pond, an Italian court has decided to suspend making a decision on an AMZN request to annul the $1.12 billion fine imposed by Italy’s antitrust watchdog agency.  This suspension will last until an EU Court rules on the case.  Elsewhere, the EU antitrust regulators ordered ILMN to keep Grail a separate entity pending the handing down of an order to prohibit the merger.  (The EU ordered the deal blocked on Sept. 6.)  Back in the US, BBBY said Friday it is reviewing a data breach to determine what data had been accessed by hackers earlier this month. GM paused its advertising on TWTR as Musk has loosened restrictions on speech and trolls are testing the new limits during the weekend with posts that would have previously drawn a ban.

In miscellaneous news, on Friday Canada implemented restrictions on foreign entities with at least partial state ownership participating in Canadian “strategic minerals” projects. (The rules were clearly aimed at blocking Chinese companies from taking on positions in mining operations related to rare earths, lithium, cobalt, nickel, and even copper.)  The mega-cap, safety play stalwarts have been killing it recently. XOM, UNH, PEP, MRK, MCD, LLY, TMUS, AMGN, CI, and HUM are just some of the big boys that all closed at all-time highs Friday. Finally, Bloomberg reported Sunday that economists at GS now expect the Fed interest rates to peak at 5% (25 basis points higher than their previous predictions), but that the peak will come in March 2023 (earlier than previous predictions).  GS said they expect Fed hikes to end with 75 basis points this week, 50 basis points in December, and then 25 basis point hikes in both February and March.

In late-breaking news, RTX paid a former employee (whistleblower) $1 million on Sunday after he reported the company for submitting false GPS data to the Air Force and the company punished him for the revelation.  Abroad, Luiz Inácio Lula da Silva (known as Lula of the Social Democrat “Worker’s Party”) won the hard-fought runoff election for President of Brazil Sunday.  At the same time, wheat prices jumped 6% as Russia continues to stop Ukrainian grain exports on false “need more inspection” pretexts and over the weekend said it will end the deal to allow those exports as of Nov. 1.  Finally, the European Statistics Office announced overnight that Eurozone inflation has hit a record 10.7% in October.

So far this morning CNA, GPN, JELD, SXC, and L have all reported beats on both the top and bottom lines.  Meanwhile, XPO reported a miss on revenue while also beating on earnings.

Overnight, Asian markets were strongly green with the exception of China.  Hong Kong (-1.18%), Shanghai (-0.77%), and Shenzhen (-0.05%) were the only red in the region.  At the same time, New Zealand (+1.88%), Japan (+1.78%), and India (+1.27%) led the region higher.  In Europe, exchanges are mixed at midday.  The FTSE (+0.11%), DAX (+0.17%), and CAC (-0.03%) lead on volume while most smaller exchanges are showing slightly more significant, yet still modest moves in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a down start to the week.  The DIA implies a -0.50% open, the SPY is implying a -0.58% open, and the QQQ implies a -0.79% open at this hour.  10-year bond yields are back up to 4.046% and Oil (WTI) is down 1.67% to $86.43/barrel in early trade.

The major economic news events scheduled for Monday is limited to Chicago PMI (9:45 am).  The major earnings reports scheduled for the day include ARLP, CAN, GPN, HWM, NSP, JELD, ON, PEG, SAIA, and XPO before the open.  Then after the close, ACHC, AFL, AWK, ANET, CAR, BCC, CHE, CINF, CIVI, CLW, CNO, CVI, FLS, GT, HLF, HOLX, KMT, LEG, VAC, NXPI, RRX, SBAC, STRL, SYK, and WMB report. 

In economic news later this week, on Tuesday, Mfg. PMI, ISM Mfg. PMI, September JOLTs Job Openings, and API Weekly Crude Oil Stocks are reported. On Wednesday, we get ADP Nonfarm Employment, EIA Crude Oil Inventories, FOMC Statement, Fed Rate Decision, and FOMC Press Conference.  Then on Thursday, Imports/Exports, September Trade Balance, Weekly Initial Jobless Claims, Q3 Nonfarm Productivity, Q3 Unit Labor Costs, Services PMI, Sept. Factory Orders, Oct. ISM Non-Mfg. PMI report. Finally, on Friday, we get Avg. Hourly Earnings, Oct. Nonfarm Payrolls, Oct. Participation Rate, and Oct. Unemployment Rate.

This is a huge earnings week as on Tuesday, AJRD, AGCO, AME, ARCB, ARNC, BP, CTLT, CNP, CIGI, ETN, ECL, LLY, EPD, FOXA, BEN, IT, HSIC, IDXX, INCY, KKR, LCII, LEA, LDOS, LGIH, LPX, MPC, TAP, MPLX, NEM, PFE, PSX, SEE, SPG, SIRI, SON, SONY, SUN, SYY, TRI, BLD, TM, UBER, WAB, WAT, WEC, XYL, ZBRA, AMD, ABNB, AMCR, AIG, ANDE, AIZ, BXC, BFAM, CZR, CWH, CAKE, CHK, CRUS, CLX, CRK, DVN, EIX, EA, ET, ENLC, EXR, FMC, THG, PEAK, LBTYA, LFUS, MTCH, MCK, MDLZ, OI, OKE, PARR, PRU, PSA, RNR, REZI, SCI, SKY, SMCI, TA, UNVR, UNM, VRSK, VOYA, WU, and YUMC report.  Then Wednesday, ATI, APO, AVNT, BLCO, BDC, EAT, BR, CHRW, CDW, FUN, CVE, CRL, CLH, CEQP, CVS, EMR, ENTG, ETR, EL, EXPI, RACE, FYBR, GNRC, GSK, HZNP, HUM, JLL, MKL, MLM, NYT, NMR, DNOW, ODP, OMI, PARA, PSN, PGR, RITM, ROK, SABR, SMG, SBGI, SITE, SHOO, TT, TRMB, UTHR, VSH, VMC, YUM, ZBH, ALB, ALGT, ALL, ATUS, AFG, APA, ACA, EQH, BBSI, BKNG, CPE, CF, CHRD, CTSH, CLR, CCRN, CW, EBAY, EQIX, EQX, ETSY, ES, FLT, FTNT, GFL, HST, HHC, ICLR, IR, KMPR, KD, LHCG, LNC, LUMN, MRO, MATX, MET, MGM, MKSI, MOD, NUS, NTR, OPAD, PK, PDCE, PAA, PAGP, PTC, QRVO, QCOM, QDEL, O, RCII, ROKU, RYI, SIGI, SUM, SLF, SU, RUN, RIG, TSE, TTMI, TPC, VSTO, WCN, WTS, WERN, WES, WSC, YELL, and Z report.  On Thursday, GOLF, ADT, WMS, AER, APD, ALIT, ABC, APG, APTV, ARW, AAWW, BALL, BALY, GOLD, BHC, BCE, BRKR, CQP, LNG, CI, COMM, COP, CROX, CMI, DSEY, DNB, SATS, EPAM, ESAB, EXC, FIS, FOCS, GIL, GTN, GPRE, HII, H, INGR, NSIT, IBP, ICE, IRM, ITT, JCI, K, KTB, MAR, MD, MRNA, MODV, MUR, NGD, OGN, PZZA, PH, BTU, PTON, PENN, PNW, PWR, REGN, QSR, RCL, SRE, SPR, STLA, SRCL, TRGP, TPX, TX, TEVA, VNT, W, WCC, WLK, ZTS, AGL, AL, ATSG, AEE, COLD, AMGN, AMN, TEAM, AVB, BECN, SQ, CVNA, CVCO, CE, COIN, CODI, ED, CTRA, CTVA, BAP, CWK, DASH, DBX, DXC, NVST, EXAS, EXPE, FND, FRG, GDDY, IHRT, ILMN, LYV, MTZ, MELI, MTD, MCHP, MNST, MSI, ZEUS, OTEX, OPEN, PYPL, CNXN, PBA, KWR, RGA, RKT, SEM, SVC, SWKS, SM, SBUX, TDS, TS, TWLO, USX, VTR, and WBD report.  Finally, on Friday, ADNT, AES, AMCX, AXL, AMRX, BEP, CAH, CNK, D, DUK, ENB, EOG, EVRG, FLR, GTES, GLP, HSY, HUN, IEP, KOP, LAMR, LSXMA, MGA, PBR, PPL, SYNH, TEF, TIXT, and VST report.

Again this week, the flood of earnings reported continues. Even so, traders remain very nervous after AMZN’s forecast of a grim holiday season coming and AAPL’s poor iPhone sales (although the company beat on both lines). With that said, don’t expect prices to gap and run the same way. You have to look no further than Friday to see the gap down, reversal, and strong bull move shown in the SPY and QQQ. So, be cautious, and don’t be in a hurry to get your positions on until the market settles. Remember that rotation continues to be in play among sectors and asset classes (capitalization). With the Fed meeting again this week (futures say we will definitely get another 0.75% hike, but whispers hope for softer language from Chair Powell), we may see some “wait and see” in the market the next 2.5 days.

The trend remains bullish across the market indices and today’s premarket action is looking for a gap back inside of Friday’s candle. Extention from the T-line (8ema) is not a factor in any of the major indices at this point. However, T2122 says we are still deeply overbought. With that said, it does look like the DIA could use some rest. High volatility and intraday reversals seem to be the norm. So, if you can’t handle the short-term pain of a whipsaw, it may be time to pursue more cautious trading strategies (options spreads for example), including remaining hedged, quick, and/or small.

Don’t be stubborn. If you have a loss, just admit you were wrong and take it before it grows. And when price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Also, keep in mind that trading is not a hobby. It’s a job. 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. Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.

See you in the trading room.

Ed

Swing Trade Ideas for your consideration and watchlist: ETHE, GDX, GOOG, FCX, AMAT, CHWY, AAPL, AI, AMZN. 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.

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.

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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

Once again, the major indices diverged at the open Thursday with SPY gapping a quarter of a percent higher, DIA gapping up 1% and QQQ gapping down a quarter of a percent.  All three major indices then began a whipsaw that saw lows come the first 30 minutes, the highs come by 10:35 am, and then a roller coaster selloff kick in that had all 3 at new lows of the day before a bounce the last 3 minutes of the day.  This action left us with divergent daily candles.  The DIA looks like a Shooting Star, while the SPY looks like a Bearish Engulfing Spinning Top (Bear Engulfing candle with wicks on both ends), and the QQQ is giving us a strong gap-down black candle which may, just may, be trying to find support off the previous downtrend line. 

On the day, half of the sectors are green and the other half red.  Technology (-1.15%) is the lagging sector while Utilities (+0.96%) led the gains.  The SPY lost 0.53%, the DIA gained 0.65%, and QQQ lost 1.82%.  VXX was off almost 2% to 18.36 and T2122 came down a bit, but remains in the overbought territory at 87.59.  10-year bonds have dropped back below 4% to 3.913% and Oil (WTI) was up 1% to $88.74/barrel.  So, from a 30,000-foot view, we had a very uneven and volatile day where Tech took the beating and safety havens (mega-caps and utilities) saw a flood of money moving that direction.

In economic news, September Durable Goods orders came in much worse than had been expected.  The month-on-month number was -0.5% (when +0.2% had been forecasted).  Meanwhile, the annualized number was +0.4% compared to the forecast of +0.6% and the previous month’s +0.2% number.  Elsewhere, Q3 GDP came in stronger than was expected.  The Q3 number was +2.6% while the forecast called for +2.4% (and the previous quarter has seen a contraction of 0.6%).  The Q3 Price Index also came in far below forecast at +4.1% compared to forecast of +5.3% and the Q2 +9.1% number.  Taken together, this data seemed to show a “goldilocks” scenario where the economy grew faster than expected while inflation seems to be waning.  Finally, Weekly Initial Jobless Claims came in slightly better than expected at 217k (versus the 220k forecast and the 214k from the previous week).

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In stock news, GOOGL’s “Google Play Store” is the target of a new EU antitrust investigation according to regulatory filings from the company.   (For what it is worth, over the last 10 years, GOOGL has accrued $8.24 billion in EU antitrust fines following 3 previous investigations into company practices.)  MO announced a new strategic partnership with JAPAF (Japan Tobacco) in an attempt to boost its “smoke-free” business unit.  MO will hold a 75% ownership position in the new venture which will offer “heated tobacco stick” products.  Elsewhere, a Federal jury in Detroit ordered F to pay $105 million in damages to a software company for breaching its 2004 license agreements and stealing trade secrets.  The Wall Street Journal reported that the SEC has joined the US Dept. of Justice in investigating TSLA’s claims of “self-driving” cars via a system named “Autopilot.”  In other TSLA news, the company recalled 24,000 cars due to a seat belt issue. 

In miscellaneous news, the EU passed a ban on fossil-fuel cars starting in 2035.  In China, it appears the government has quietly approved the BA 737 Max to resume flights in Chinese airspace as China Southern Airlines has scheduled a flight using that plane on Oct. 30.  After the close, as part of their earnings report, INTC announced up to $10 billion in cost reductions over the next 3 years.  The announcement did not mention layoffs, but this falls in line with previous Bloomberg reports that thousands of INTC layoffs are coming.  Finally, Elon Musk takes over TWTR today and yesterday he told the company that all executives are immediately fired, he will become CEO, and that he is eliminating lifetime bans.

After the close, AAPL, GILD, PFG, RSG, EMN, WY, LPLA, VRTX, SWN, CSL, TEX, TXRH, PFSI, BIO, SKYW, DECK, DXCM, PINS, VICI, and MPWR all reported beats on the revenue and earnings lines.  Meanwhile, AMZN, COF, MTX, RMD, NOV, ERIE, and SGEN all beat on revenue while missing on earnings.  On the other side, INTC, X, HIG, PXD, MHK, AJG, ATR, COLM, ORI, TFII, INT, and HUBG all missed on revenue while beating on earnings.  However, TMUS, LHX, EW, FSLR, and SSNC all missed on both the top and bottom lines.  It is also worth noting that AMZN, INTC, EMN, EW, and SSNC all lowered their forward guidance.  Meanwhile, TEX raised its guidance.

So far this morning CVX, SNY, BAH, JKS, CHD, AB, BLMN, and NVT have all posted beats on both the revenue and earnings lines.  Meanwhile, XOM, EQNR, CL, AON, AVTR, and CRI all missed on revenue while beating on earnings.  On the other side, oddly there are no tickers that beat on revenue while missing on earnings.  However, CHTR, LYB, and DVA missed on both the top and bottom lines.

Overnight, Asian markets were mixed again but leaned to the red side as China led the decline.  Hong Kong (-3.66%), Shenzhen (-3.24%), and Shanghai (-2.25%) paced the losses.  Meanwhile, Singapore (+1.46%) led the gains while a trio of other smaller exchanges were positive by about one-quarter of a percent.  In Europe, exchanges lean heavily to the downside at midday.  The FTSE (-0.47%), DAX (-0.69%), and CAC (-0.18%) are typical of the region with only a few minor exchanges in the green in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a mixed, down start to the day.  The DIA implies a -0.15% open, the SPY is implying a -0.64% open, and the QQQ implies a -1.08% open at this hour.  10-year bond yields are back to 4.006% and Oil (WTI) is down six-tenths of a percent to $88.58/barrel in early trading.

The major economic news events scheduled for Friday include Sept. PCE Price Index, Q3 Employment Cost Index, and Sept. Personal Spending (all at 8:30 am), as well as Michigan Consumer Sentiment and September Pending Home Sales (both at 10 am). The major earnings reports scheduled for the day include ABBV, AB, AVTR, BBVA, BSAC, BLMN, BAH, CHTR, CVX, CHD, CL, DVA, EQNR, XOM, FMX, FTS, GNTX, IMO, JKS, LYB, NWL, NMRK, NEE, NVT, SNY, and GWW before the open.  There are no reports scheduled for after the close. 

The earnings deluge continues, again with mostly positive results against lowered expectations. However, weak guidance from AMZN and an AAPL miss on iPhone sales (even amidst a quarterly beat) seems to have markets spooked about holiday spending and business activity. The rotation continues to be in play among sectors and asset classes (capitalization). With the Fed meeting again (futures say it will definitely be another 0.75% hike) next week and a weekend news cycle ahead, it would seem a likely place for bulls to take profits after the run-up from earlier in the week.

Premarket action is showing the large-caps are moving back toward their T-lines from above. However, the QQQ seems to be getting a bit extended to the downside of that 8ema. In either case, the overall market is still in an overbought condition according to T2122. Continue to show caution and be patient. Don’t chase gaps! With high volatility and several intraday reversals per day the norm, you either need to be able to handle the pain of all that whipsaw or this may be the time to pursue more cautious trading strategies (options spreads for example), including remaining hedged, quick, and/or small.

Don’t be stubborn. If you have a loss, just admit you were wrong and take it before it grows. And when price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Also, keep in mind that trading is not a hobby. It’s a job. 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. Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.

See you in the trading room.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas today. 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.

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

The major us indices diverged greatly at the open Wednesday.  The QQQ gapped down more than 2%, the DIA gapped down 0.1%, and SPY gapped down 0.85% to start the day.  After about a 20–30-minute period of waking up, all 3 of those indices rallied hard until 11:20 am, gaining 1.5% in the SPY, 1.1% in the DIA, and 1.95% in the QQQ.  So, the large caps more than filled the gap and the high-tech QQQ nearly filled it.  However, whipsaw kicked in as all 3 sold off, eventually getting back below the open by 3 pm.  From there, all 3 printed tight consolidations along the opening level for the remainder of the day. 

This action gave us very large upper wicks on candles that could be seen as either Gravestone Doji or Inverted Hammer types.  (Had they gapped up, I’d have called them shooting Star candles.)  On the day, eight of the ten sectors were in the green.  Technology (-2.03%) was by far the biggest loser while Healthcare (+1.33%) and Energy (+1.10%) led the gains.  SPY lost 0.75%, DIA lost 0.03%, and QQQ lost 2.21%.  The VXX fell 2.3% to 18.73 and T2122 fell slightly but remains deep in the overbought territory at 96.30.  10-year bond yields plunged to 4.011% and Oil (WTI) surged 3.3% to $88.16/barrel.  So, this was a very volatile day where the market rejected new highs and at the very least eased overextension from the T-line (8ema).

In economic news, the September Goods Trade Balance fell more than expected as the US exported less than expected (the deficit was -92.22 billion versus -87.50 billion forecast and -87.28 billion in August).  Meanwhile, September Retail Inventories came down 0.1% (compared to a build of 0.7% in August).  Elsewhere, September New Home Sales came in stronger than expected, up 603k (versus +585k forecast and +677k in August).  In other words, the decline was about 3% better than expected.  Finally, the EIA Weekly Oil Inventories showed a larger-than-expected build of stocks.  The inventories were up 2.588 million barrels (versus a 1.029-million-barrel build expected and the prior week’s drawdown of 1.725 million barrels).

SNAP Case Study | Actual Trade

In stock news, INTC’s spinoff MBLY opened at $26.71 (giving INTC $21.8 billion) and then gained 8.5% during the session (while trading in a 15% range).  ROG closed down 1.42% after a Canadian government action seemed to indicate they would approve the ROG $14.7 billion bid to buy Shaw Communications.  In the afternoon, a Polish Deputy Prime Minister indicated that Westinghouse (owned by BBU) is likely to win the bid to build the first Polish nuclear power plant.  Also in the afternoon, the CA Public Utilities Commission issued a fine of $155.4 million to PCG in relation to company actions leading to a 2020 wildfire.  Bloomberg reports that FFIE has emailed employees saying the company will be cutting all salaries by 25% starting in November.  PSX has begun reducing staff at its refineries, terminals, and corporate offices.  This is the company’s second round of layoffs this year.  After the close, Reuters reported that TSLA is under investigation by the US Dept. of Justice over the company’s previous claims their vehicles can drive themselves after more than a dozen crashes when the TSLA “Autopilot” was engaged.

In miscellaneous news, another union (representing 6,000 rail workers) has voted down the tentative agreement reached in mid-September.  This is the second union to reject the deal, which 6 unions have voted to accept.  This increases the possibility of a rail strike which would impact the US supply chain as well as UNP, CSX, NSC, and KSU specifically.  XOM has announced it has made two new oil discoveries in Guyana.  XOM is partnering with HES on the Guyana projects, but no estimates on the size of the finds were given.  In other oil news, the EIA report Wednesday said that last week the US oil industry exported 5.1 million barrels per day, the most ever to take advantage of higher foreign prices.  Finally, the Bank of Canada did a smaller-than-expected rate hike Wednesday, hiking by 50 basis points instead of the expected 75.

After the close, SAN, MOH, FLEX, AVT, MUSA, PPC, ORLY, RE, RJF, URI, VIV, ACGL, KLAC, CP, CACI, EQT, DLR, OMF, ASGN, AEM, CCS, SAVE, VMI, PLXS, FIX, ENSG, ALSN, UCTT, TDOC, INVH, GGG, SEIC, OII, MAA, FWRD, NLY, MEOH, WFG, and PTEN all reported beats on both the revenue and earnings lines.  Meanwhile, F, AXS, MYRG, and AR beat on revenue while missing on earnings.  On the other side, OLN, FBHS, NOW, MTH, STC, SNBR, ULCC, and JBT all missed on revenue while beating on earnings.  However, META, VFC, FTI, ALGN, TROX, CMPR, ESI, AMED, and BMRN all missed on both the top and bottom lines.

So far this morning, MRK, CAT, LIN, PBF, MCD, ASX, CARR, AEP, RS, DTE, BWA, STM, AMT, DAN, TROW, CMS, HOCPY, SHOP, GVA, TPH, ARES, AIT, LAZ, ALLE, VC, GBX, GEO, CHKP, FCNCA, FCFS, VLY, KIM, BFH, and WTW all reported beats on both the top and bottom lines.  Meanwhile, TTE, MO, SO, FISV, XEL, ARCH, and WEX all beat on revenue while missing on earnings.  On the other side, CMCSA, BUD, HON, TAK, LUV, SWK, LKQ, BAX, TECK, TXT, FAF, ABG, SPGI, BC, AOS, TFX, OSTK, and JHG all missed on revenue while beating on earnings.  However, REPYY, CBRE, AN, IP, LH, SAH, OSK, MDC, AMBP, TNL, WST, and SHEL all missed on both the revenue and earnings lines.

Overnight, Asian markets were mostly green.  South Korea (+1.74%), Taiwan (+1.55%), and Hong Kong (+0.72%) led the gains while Shenzhen (-0.63%), Shanghai (-0.55%), and Japan (-0.32%) were the only real red on the day.  In Europe, markets are leaning to the downside at midday.  The FTSE (+0.08%), DAX (-0.80%), and CAC (-0.87%) are leading the region lower.  Meanwhile, Russia (+1.39%) is the only significant green with a couple of smaller following exchanges in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a mixed start to the day.  The DIA implies a +0.68% open, the SPY is implying a +0.05% open, and the QQQ implies a -0.48% open at this hour.  10-year bond yields are back up to 4.067% and Oil (WTI) is up more than half of a percent to $88.39/barrel in early trading.

The major economic news events scheduled for Thursday include Sept. Durable Goods Orders, Q3 GDP, Q3 GDP Price Index, and Weekly Initial Jobless Claims (all at 8:30 am).  The major earnings reports scheduled for the day include AOS, ALLE, MO, AEP, AMT, BUD, HOUS, AIT, ARCH, AMBP, ARES, ABG, AN, BAX, BWA, BFH, BC, CRS, CARR, CAT, CBRE, CX, CHKP, CMS, CNX, CMCSA, CS, DAN, DQ, CTE, EME, FAF, FCNCA, FCFS, FISV, FCN, GEO, GOL, GVA, GBX, HTZ, HON, IP, JHG, KDP, LH, LAZ, LII, LECO, LIN, LKQ, MDC, MMP, HZO, MA, MCD, MRK, NOC, OPCH, OSK, OSTK, PATK, PBF, PCG, RS, SPGI, SNDR, SHEL, SHOP, SAH, SO, LUV, SWK, STM, TROW, TECK, TFX, TXT, TNL, TPH, VC, WST, WDC, WEX, WTW, and XEL before the open.  Then, after the close, AMZN, AAPL, ATR, AJG, BSMX, BIO, COF, CSL, COLM, DECK, DXCM, EMN, EW, ERIE, FSLR, GILD, HIG, HUBG, INTC, LHX, LPLA, MTX, MHK, MPWR, NEXA, NOV, ORI, PINS, PXD, PFG, RSG, RMD, SKYW, SWN, SSNC, TMUS, TEX, TXRH, TFII, X, VRTX, VICI, WY, and INT report. 

In economic news later this week, on Friday, Sept. PCE Price Index, Q3 Employment Cost Index, Sept. Personal Spending, Michigan Consumer Sentiment, and September Pending Home Sales are reported.

This big week of earnings ends on Friday with ABBV, AB, AVTR, BBVA, BSAC, BLMN, BAH, CHTR, CVX, CHD, CL, DVA, EQNR, XOM, FMX, FTS, GNTX, IMO, JKS, LYB, NWL, NMRK, NEE, NVT, SNY, and GWW reporting.

The flood of earnings reports continues today with more of a mixed bag of results somewhat following industry groups. For example, food companies seem to be saying the consumer is not reducing spending due to inflation. However, many industrial and Tech companies are reporting misses. Still, overall, there is a very large list of companies that are beating on both lines. In addition, it appears that our neighbor to the north is now starting to see light at the end of the tunnel. The Bank of Canada did a smaller-than-expected rate hike last night and went so far as to say the time to talk about stopping rate increases is coming soon. This is just one data point, but some traders are very likely to read through, expecting the Fed to feel the same way and to start easing soon. However, we need to keep our eye on how the market reacts. It doesn’t matter (nor will we ever know for sure) how any individual or group thinks or feels. What matters is price action. The chart never lies and is never wrong. So follow it, don’t predict it.

As yesterday, the market is getting extended but is not completely beyond the pale yet. So, we need a rest or pullback, but yesterday’s pause helped and premarkets seem to be indicating more help on that front this morning. Continue to show caution and be patient (wait for confirmation). Don’t chase! With high volatility and less certainty at the moment, you either need to be able to handle the pain of all that volatility or this may be the time to pursue more cautious trading strategies (options spreads for example), including remaining hedged, quick, and/or small.

Don’t be stubborn. If you have a loss, just admit you were wrong and take it before it grows. And when price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Also, keep in mind that trading is not a hobby. It’s a job. 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. Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.

See you in the trading room.

Ed

Swing Trade Ideas for your consideration and watchlist: QS, DAL, VLO, PFE, OKTA, SHOP, CHWY, INTC, USO. 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.

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 with a small divergence as the large caps gapped slightly lower while the QQQ capped about 0.35% higher.  However, the 3 major indices got back in lock-step immediately as the bulls led a strong rally for the first 30 minutes.  At that point, all 3 went switched to a very slow rally that lasted until 12:20 pm.  Then we saw the first real selling of the day as the indices pulled back between 0.5% and 0.75% over the next hour before rebounding the same amount between 1:30 pm and 2:30 pm.  From there we made another wave, leaving us very near the highs at the end of the day.

On the day, all 10 sectors are in the green with Energy (+0.40%) by a large margin the most lagging sector while Technology (+2.83%) and Consumer Cyclical (+2.82%) led the way higher.  SPY gained 1.60%, DIA gained 1.09%, and QQQ gained 2.07%.  The VXX was down 3.86% to 19.17 and T2122 is now at the extreme overbought territory at 97.67.  10-year bond yields plunged to 4.10% and Oil (WTI) was up 0.38% percent to $84.89/barrel.  This action left us with large white candles having a small wick at the top. All 3 of the major indices have also clearly broken their longer-term downtrend and have begun a new uptrend.  Still, it is worth noting that price is now getting pretty far above the T-line (8ema) on the daily chart and we will need some rest soon.  So, all-in-all, it was a third straight bullish day that is getting a little bit extended at this point.

In economic news, Conference Board Consumer Confidence came in below forecast at 102.5 (versus the expected 106.5 and the previous reading of 107.8).  Then after the close, the API Weekly Crude Oil Stocks reported a major and unexpected build of 4.520 million barrels (compared to a forecasted build of 0.200 million barrels and last week’s drawdown of 1.270 million barrels).

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In stock news, Bloomberg reported that Elon Musk has told bankers that the TWTR deal will close on Friday at $54.20/share (free money since it closed at $52.78 on Tuesday).  Meanwhile, TSLA gained EPA approval to begin delivering their Semi trucks.  Across the pond, PM gained conditional approval from the EU to buy Swedish Match (the largest cigarette alternative maker in Europe).  The conditional part is that PM has pledged to divest Swedish Match’s logistics arm.  In Canada, CGC has formed a US holding company to allow it to expand into the US market.  CGC stock soared 27% on the news.  Finally, AMZN has begun to roll out a new payment method.  Some US users can now pay for purchases via a mobile app owned by PYPL.  This will be available to all US customers before Thanksgiving.

In miscellaneous news, the Chinese Yuan fell to new lows Tuesday (onshore at its weakest position against the dollar since 2009 and offshore at the lowest since its introduction in 2010).  This comes despite the Dollar pulling back significantly Tuesday.  The industry group ELFA reported Tuesday that US companies borrowed 11% more to finance equipment leasing in September compared to the same month in 2021.  Also of note, in their earnings report, CMG said they have seen only “minimal resistance” to price hikes from their customers.  This suggests the consumer is still largely healthy.  On the other side, also in their earnings report, V said they are seeing the growth of spending slowing as consumers are struggling with inflation.  Elsewhere, mortgage demand fell slightly last week, with new purchase applications down 2% and refinance applications down just 0.1%.  However, overall loan demand has fallen to the lowest level since 1997 with the average interest rate up to 7.16% (from 6.94% the prior week) for a 30-year, fixed-rate, conforming loan.

After the close, AMP, AXTA, BYD, CNI, CHX, CB, CSGP, WIRE, ENPH, EQR, FFIV, FE, JNPR, MTDR, MSFT, NBR, RUSHA, TER, TXN, UHS, and V all reported beats on both the opt and bottom lines.  Meanwhile, CC, CMG, HA, MAT, NCR, and NEX all missed on revenue while beating on earnings.  On the other side, AGR and SKX beat on revenue while missing on earnings.  Unfortunately, GOOGL, GOOG, and SPOT missed on both the top and bottom lines.  Among all these, TXN, SPOT, MAT, SKX, and FFIV all lowered their forward guidance.  However, CNI, CHX, HA, and ENPH all raised their forward guidance. 

So far this morning, BG, BMY, GD, TMO, KHC, WM, ADP, GPI, CSTM, SLGN, ROP, HOG, TKR, EVR, CPG, PRG, EXP, CHEF, WNC, DRVN, and EDU all reported beats on the top and bottom lines.  Meanwhile, CME, PAG, OC, OTIS, GRMN, UMC, TMHC, KBR, HLT, ODFL, TDY, and VRT all missed on revenue while beating on earnings.  On the other side, BSX, AVY, and WFRD beat on revenue while missing on earnings.  However, MAS missed on both the top and bottom lines.  It is also worth noting that BG, ROP, TDY, TKR, DHEF, WNC, and EDU all raised forward guidance.  On the other side, OTIS, MAS, and AVY lowered guidance.  (BA, BSBR, IQV, STX, NSC, APH, R, SID, HES, FTV, BCO, MHO, COOP, FSV, GTX, BPOP, and ROL report later this morning.)

Overnight, Asian markets leaned heavily toward the green side.  Only India (-0.42%) and Thailand (-0.26%) were in the red.  Meanwhile, Shenzhen (+1.68%), New Zealand (+1.32%), and Hong Kong (+1.00%) led the region higher.  In Europe, the picture is much more mixed at midday.  The FTSE (-0.32%), DAX (+0.56%), and CAC (+0.06%) lead the region in volume as always.  However, some of the smaller exchanges show bigger moves in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a mixed, red start to the day.  The DIA implies a -0.05% open, the SPY is implying a -0.61% open, and the QQQ implies a -1.53% open as the major indices diverge.  10-year bond yields are dropping again at 4.055% and Oil (WTI) is up four-tenths of a percent to $85.66/barrel in early trading.

The major economic news events scheduled for Wednesday include Sept. Goods Trade Balance and Sept. Retail Inventories (both at 8:30 am), Sept. New Home Sales (10 am), and EIA Weekly Crude Oil Inventories (10:30 am). The major earnings reports scheduled for the day include APH, ADP, AVY, BSBR, BA, BSX, BCO, BMY, BG, CHEF, CME, SID, CSTM, CPG, DRVN, EXP, EVR, FSV, FTV, GRMN, GTX, GD, GPI, HOG, HES, HLT, IEX, IQV, KBR, KHC, MHO, MAS, EDU, NSC, OTIS, OC, PAG, BPOP, PRG, ROL, ROP, R, STX, SLGN, TMHC, TDY, TMO, TKR, UMC, VRT, WNC, WM, and WFRD before the open.  Then, after the close, AEM, ALGN, ALSN, AMED, NLY, AR, ACGL, ASGN, AVT, AXS, BMRN, CACI, CP, CCS, FIX, CYH, DLR, ESI, EHC, EQT, RE, FLEX, F, FBHS, FWRD, ULCC, GGG, INVH, JBT, KLAC, MTH, META, MEOH, MAA, MOH, MUSA, MYRG, ORLY, OII, OLN, OMF, PTEN, PPC, PLXS, RJF, SEIC, NOW, SNBR, STC, FTI, TDOC, TROX, UCTT, URI, VMI, VFC, and WFG report.

In economic news later this week, on Thursday, we get Sept. Durable Goods Orders, Q3 GDP, and Weekly Initial Jobless Claims.  Finally, on Friday, Sept. PCE Price Index, Q3 Employment Cost Index, Sept. Personal Spending, Michigan Consumer Sentiment, and September Pending Home Sales are reported.

This is a huge earnings week as on Thursday, we hear from AOS, ALLE, MO, AEP, AMT, BUD, HOUS, AIT, ARCH, AMBP, ARES, ABG, AN, BAX, BWA, BFH, BC, CRS, CARR, CAT, CBRE, CX, CHKP, CMS, CNX, CMCSA, CS, DAN, DQ, CTE, EME, FAF, FCNCA, FCFS, FISV, FCN, GEO, GOL, GVA, GBX, HTZ, HON, IP, JHG, KDP, LH, LAZ, LII, LECO, LIN, LKQ, MDC, MMP, HZO, MA, MCD, MRK, NOC, OPCH, OSK, OSTK, PATK, PBF, PCG, RS, SPGI, SNDR, SHEL, SHOP, SAH, SO, LUV, SWK, STM, TROW, TECK, TFX, TXT, TNL, TPH, VC, WST, WDC, WEX, WTW, XEL, AMZN, AAPL, ATR, AJG, BSMX, BIO, COF, CSL, COLM, DECK, DXCM, EMN, EW, ERIE, FSLR, GILD, HIG, HUBG, INTC, LHX, LPLA, MTX, MHK, MPWR, NEXA, NOV, ORI, PINS, PXD, PFG, RSG, RMD, SKYW, SWN, SSNC, TMUS, TEX, TXRH, TFII, X, VRTX, VICI, WY,  and INT.  Finally, on Friday, ABBV, AB, AVTR, BBVA, BSAC, BLMN, BAH, CHTR, CVX, CHD, CL, DVA, EQNR, XOM, FMX, FTS, GNTX, IMO, JKS, LYB, NWL, NMRK, NEE, NVT, SNY, and GWW report.

Earnings continue to flood in with, frankly, generally good results. However, at the margins, mega-tech names are showing pressure from corporate IT spending and Marketing budgets. This is pointing toward the recession people have been talking about for months, but which has only materialized slowly and in spots. This is just a data point, some will choose to see it as great news, expecting the Fed to start easing soon. Others will see it as a sign of dread. What’s important is not how you, I, or any individual see it. Instead, how does the overall market react to it…what does price do?

All 3 major indices have also broken out of their crooked type (non-flat neckline) “inverted head and shoulders” (bottoming) patterns. The market extension is getting overdone, but is not completely beyond the pale yet. So, we need a rest or pullback, but it does not have to come today. Continue to show caution and be patient (wait for confirmation). With high volatility and less certainty at the moment, you either need to be able to handle the pain of all that volatility or this may be the time to pursue more cautious trading strategies (options spreads for example), including remaining hedged, quick, and/or small.

Don’t be stubborn. If you have a loss, just admit you were wrong and take it before it grows. And when price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Also, keep in mind that trading is not a hobby. It’s a job. 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. Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.

See you in the trading room.

Ed

Swing Trade Ideas for your consideration and watchlist: BITO, NAT, OKTA, MRO, XLE, INTC, XOM, EBAY, VLO, and PFE. 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.

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, the large caps gapped up about one-half of one percent and then the bulls followed through strongly for 30 minutes.  Meanwhile, the QQQ opened only a modest 0.15% higher and the bulls moved it only modestly higher until 10 am.  However, at that point, the whipsaw kicked in to see a very strong selloff in the next 30 minutes across all 3 of the major indices.  At 10:30, markets reversed again as we saw a more modest rally that lasted 2 hours.  Then, after 12:30 pm, we saw a sideways rollercoaster ride until all 3 indices broke out of the range to the new highs at 2:45 pm.  That afternoon rally continued until 3:30 pm when we saw a modest selloff in the last half-hour of the day.  This action is giving us white-bodied candles with wicks at both ends, but a larger lower wick.  (The QQQ also bounced up off its T-line or 8ema.)

On the day, seven of the ten sectors are in the green.  Basic Materials (-1.01%) was the lagging sector, while the Consumer Defensive (+1.22%) sector lead the market higher.  The SPY has gained 1.22%, DIA gained 1.34%, and QQQ gained 1.10%. Meanwhile, the VXX was down 1.53% to 19.94 and T2122 is now in the overbought territory at 84.03.  10-year bond yields have recovered from an early pullback to be at 4.247% and Oil (WTI) is down one-third of a percent to $84.83/barrel.  Overall, a bullish day with considerable intraday whipsaw taking out the gap chasers and weak hands.  Still, the market did end up higher, if a tad indecisive.

In economic news, Manufacturing PMI came in below expectations at 49.9 (versus 51.0 forecast and 52.0 in September).  Services PMI also came in even further below expectations at 46.6 (versus 49.2 forecast and 49.3 in September).  These numbers show contractions in US economic activity (for the fourth straight month).  Elsewhere, Treasury Sec. Yellen also spoke in the afternoon to a securities industry group.  She acknowledged a liquidity problem in the bond markets, which are raising costs (prices) and said her department was looking at ways to enhance stability and increase liquidity.  She also declined to comment on Japanese intervention to prop up the Yen.  She said she was not aware of any measures Tokyo was taking and had not been recently notified of such steps by them (although they were notified of a previous intervention by the BoJ, which Japan claimed was to offset volatility).

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In stock news, TSLA cut the price of its Model 3 and Model Y cars in China by about 5% in an effort to stimulate demand.  On the other side of such action, AAPL raised prices on its Apple TV+ and Apple Music subscription services.  After the close, the SEC charged CRON and its former Chief Commercial Officer with accounting fraud.  The FTC also proposed a settlement with UBER (which acquired the sanctioned company Drizly in 2021) over a lack of security standards which resulted in a data breach that exposed the personal data of 2.5 million consumers in 2020.

In energy news, Natural Gas prices in the Permian Basin (West Texas) plunged on Monday (down to as low as $0.20 / million BTU) as booming production overwhelmed the pipeline networks.  (This compares to the US benchmark now trading at about $5.)  This stems from KMI pipeline maintenance in its Gulf Coast Express and El Paso pipeline networks.

After the close, CDNS, CLS, SUI, ARE, AAN, SSD, RRC, and CADE all reported beats on both the top and bottom lines.  Meanwhile, DFS and ZION both reported a beat on the revenue line while missing on earnings.  On the other side, WRB, PKG, and CR all missed on the revenue line while beating on earnings.  However, CCK and BRO both reported misses on the revenue and earnings lines.

So far this morning, CNC, GM, ADM, KO, UBS, SHW, SYF, HAL, BIIB, PII, GPK, PNR, POR, and ARCC all reported beats on the revenue and earnings lines.  Meanwhile, GE, SAP, JBLU, and IVZ all beat on revenue while missing on earnings.  On the other side, VLO, UPS, NVS, MMM, TRU, MSCI, and TRN all missed on revenue while they also beat on earnings.  However, HSBC, CLF, PHM, XRX, MCO, and ST all missed on both the top and bottom lines.

Overnight, Asian markets were mixed in much more modest moves than the Chinese plunge on Monday.  Taiwan (-1.48%) Shenzhen (-0.51%), and India (-0.42%) paced the losses.  Meanwhile, New Zealand (+1.11%), Japan (+1.02%), and Thailand (+0.59%) led the gainers.  In Europe, we see a similarly mixed picture at midday.  The FTSE (-0.71%), and DAX (-0.84%) are negative while the CAC (+0.33%) is among the green exchanges in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a modestly red start to the day.  The DIA implies a -0.40% open, the SPY is implying a -0.28% open, and the QQQ implies a -0.03% open at this hour.  10-year bond yields remain volatile as they have plunged back down to 4.177% while Oil (WTI) is off 1.47% to $83.31/barrel in early trading.

The major economic news events scheduled for Tuesday include Conf. Board Consumer Confidence (10 am), API Weekly Crude Oil Stock (4:30 pm), and Fed member Waller speaks (1:55 pm).  The major earnings reports scheduled for the day include MMM, ALFVY, ADM, ARCC, BIIB, CNC, CLF, KO, GLW, FELE, GE, GM, GPK, HAL, HSBC, HUBB, ITW, IVZ, JBLU, KMB, MCO, MSCI, NVS, ONB, ORAN, PCAR, PNR, PII, POR, PHM, RTX, SAP, ST, SHW, SYF, TRU, TRN, UBS, UPS, VLO, and XRX before the open.  Then, after the close, GOOGL, AMP, AGR, AXTA, BXP, BYD, CNI, CHX, CC, CMG, CB, CSGP, WIRE, ENPH, EQR, FFIV, FE, GOOG, HA, JNPR, MTDR, MAT, MSFT, NBR, NCR, NEX, RUSHA, SKX, SPOT, TER, TXN, UHS, and V report. 

In economic news later this week, on Wednesday, Sept. Goods Trade Balance, Sept. Retail Inventories, Sept. New Home Sales, and EIA Weekly Crude Oil Inventories are reported.  On Thursday, we get Sept. Durable Goods Orders, Q3 GDP, and Weekly Initial Jobless Claims.  Finally, on Friday, Sept. PCE Price Index, Q3 Employment Cost Index, Sept. Personal Spending, Michigan Consumer Sentiment, and September Pending Home Sales are reported.

This is a huge earnings week as on Wednesday, APH, ADP, AVY, BSBR, BA, BSX, BCO, BMY, BG, CHEF, CME, SID, CSTM, CPG, DRVN, EXP, EVR, FSV, FTV, GRMN, GTX, GD, GPI, HOG, HES, HLT, IEX, IQV, KBR, KHC, MHO, MAS, EDU, NSC, OTIS, OC, PAG, BPOP, PRG, ROL, ROP, R, STX, SLGN, TMHC, TDY, TMO, TKR, UMC, VRT, WNC, WM, WFRD, AEM, ALGN, ALSN, AMED, NLY, AR, ACGL, ASGN, AVT, AXS, BMRN, CACI, CP, CCS, FIX, CYH, DLR, ESI, EHC, EQT, RE, FLEX, F, FBHS, FWRD, ULCC, GGG, INVH, JBT, KLAC, MTH, META, MEOH, MAA, MOH, MUSA, MYRG, ORLY, OII, OLN, OMF, PTEN, PPC, PLXS, RJF, SEIC, NOW, SNBR, STC, FTI, TDOC, TROX, UCTT, URI, VMI, VFC, and WFG  report.  On Thursday, we hear from AOS, ALLE, MO, AEP, AMT, BUD, HOUS, AIT, ARCH, AMBP, ARES, ABG, AN, BAX, BWA, BFH, BC, CRS, CARR, CAT, CBRE, CX, CHKP, CMS, CNX, CMCSA, CS, DAN, DQ, CTE, EME, FAF, FCNCA, FCFS, FISV, FCN, GEO, GOL, GVA, GBX, HTZ, HON, IP, JHG, KDP, LH, LAZ, LII, LECO, LIN, LKQ, MDC, MMP, HZO, MA, MCD, MRK, NOC, OPCH, OSK, OSTK, PATK, PBF, PCG, RS, SPGI, SNDR, SHEL, SHOP, SAH, SO, LUV, SWK, STM, TROW, TECK, TFX, TXT, TNL, TPH, VC, WST, WDC, WEX, WTW, XEL, AMZN, AAPL, ATR, AJG, BSMX, BIO, COF, CSL, COLM, DECK, DXCM, EMN, EW, ERIE, FSLR, GILD, HIG, HUBG, INTC, LHX, LPLA, MTX, MHK, MPWR, NEXA, NOV, ORI, PINS, PXD, PFG, RSG, RMD, SKYW, SWN, SSNC, TMUS, TEX, TXRH, TFII, X, VRTX, VICI, WY,  and INT.  Finally, on Friday, ABBV, AB, AVTR, BBVA, BSAC, BLMN, BAH, CHTR, CVX, CHD, CL, DVA, EQNR, XOM, FMX, FTS, GNTX, IMO, JKS, LYB, NWL, NMRK, NEE, NVT, SNY, and GWW report.

Earnings continued to grind on with a flood of reports this morning. So far, the premarkets are on pause (just on the red side of flat) as it digests the deluge of news. In late news, Bloomberg is reporting that the Fed is among the group holding huge paper losses from all the bonds they bought up during the pandemic QE phase. With that backdrop, the QQQ and DIA have broken their downtrend lines and SPY is challenging that level now. markets are looking to challenge their bearish trends. All 3 major indices have also broken out of crooked type (non-flat neckline) “inverted head and shoulders” (bottoming) patterns. The market extension is not extreme but is starting to be a minor factor. However, intraday reversals and indecision remain the issues traders need to have a handle on (the biggest threat). So, continue to be cautious and show patience (wait for confirmation). With high volatility and less certainty at the moment, you either need to be able to handle that pain or this may be the time to pursue more cautious trading strategies (options spreads for example), including remaining hedged, quick, and/or small.

Don’t be stubborn. If you have a loss, just admit you were wrong and take it before it grows. And when price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Also, keep in mind that trading is not a hobby. It’s a job. 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. Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.

See you in the trading room.

Ed

Swing Trade Ideas for your consideration and watchlist: UPS, GSK, RBLX, INTC, DVN, FCX. 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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