On Thursday markets gapped down roughly a percent after traders had rethought their opinion of the Fed decision, statement, and the resulting short squeeze.  After the open, it was “look out below” as the bears sold the market off hard until about 3:50 pm when the bulls stepped back in hard for the last 10 minutes of the day.  This left us with large, ugly, black candles with a bit of wick at the bottom in all 3 major indices.  On the day, SPY lost 3.55%, DIA lost 3.05%, and QQQ lost a whopping 5.04%.  This made for the worst day since early 2020.  The VXX gained 8.65% to 27.00 and T2122 dropped all the way back into the oversold area at 13.01.  10-year bond yields spiked to close over 3% for the first time since 2018, closing at 3.037% and Oil (WTI) rose just under half a percent to $108.32/barrel.

During the day, Weekly Initial Jobless Claims came in higher than expected (200k vs 180k est.) and Q1 Nonfarm Productivity fell 7.5% (the largest drop in 75 years).  This drop was over 2% worse than an already bleak estimate of -5.4%.  Elsewhere, BA announced it will be moving its corporate headquarters from Chicago to Arlington VA, where it will also build a major research facility.  Having headquarters so close to Washington DC would be in line with BA being a major military contractor. However, BA said it will maintain a significant presence in Chicago and the major production facilities will remain in the Seattle and Charleston SC areas.

SNAP Case Study | Actual Trade

After the close, RSG, Z, DBX, TXRH, OPEN, FRG, CNXN, RYI, RDFN, MELI, and MTD all reported beats on both revenue and earnings.  Meanwhile, LYV, BMW, and UNM missed on revenue while beating on earnings.  On the other side, VRTX, MNST, MCK, DASH, and FOCS reported beating the estimates on revenue but missed on the bottom line.  Finally, SQ, DVA, and SHOP reported misses on both lines.

On the Russian invasion story, reports say that Russia has stolen half a million tons of grain so far and are accelerating the theft in recent days.  The same is taking place with ag equipment like combines (harvesters) and tractors.  Much of this has so far been destined for Chechnya.  The fear is that the theft will continue since Ukraine had 5 million tons of wheat and 15 million tons of corn in storage (ready for shipment by sea) in now-occupied Southern Ukraine at the start of the invasion.  This raises fears as many in Ukraine remember the Holodomor (Terror Famine) imposed on Ukraine by the Soviet Union in the 1930s as part of Stalin’s attempts to purge the region of any even potential opposition.  This could also simply be a strategy, where Russia has accumulated enough of the world grain supply to be in a stronger position to negotiate with the West when parts of the world are starving.  At any rate, this news could well influence grain commodities and input inflation for companies like ADM, BG, MGPI, GIS, ANDE, INGR, and others.

Overnight, with the lone exception of Japan (+0.69%) the Asian markets were strongly in the red.  Hong Kong (-3.81%), Shanghai (-2.16%), and Shenzhen (-2.14%) led the selloff but significant losses were seen all across the region.  In Europe, there are a couple of minor exchanges barely hanging onto the green, but again losses are widespread at mid-day.  The FTSE (-0.85%), DAX (-1.17%), and CAC (-1.47%) lead the way as usual in early afternoon trading.  As of 7:30 am, US Futures point toward a modestly down start to the day.  The DIA implies a -0.32%, the SPY implies a -0.49%, and the QQQ implies a -0.68% at this hour.  10-year bond yields are also up a bit to 3.093% and Oil (WTI) is spiking more than 2% to $110.55/barrel in early trading.

The major economic news scheduled for release on Friday includes Apr. Avg. Hourly Earnings, Apr. Nonfarm Payrolls, Apr. Participation Rate, and Apr. Unemployment Rate (all at 8:30 am).  We also get a gaggle of Fed speakers (Williams at 9:15 am, Bostic at 3:20 pm, Waller at 7:15 pm, Bullard at 7:15 pm, and Daly at 8 pm.  Major earnings reports scheduled for the day include ASIX, AES, AEE, AXL, BEP, CLMT, CI, CNK, DISH, SSP, ENB, EOG, FLR, FYBR, GLP, GT, GTN, IEP, NRG, QRTEA, SPB, SR, TU, TIXT, and VST before the open.  There are no major reports scheduled for after the close.

So far this morning CI, BCC, SPB, SR, GTN, GHLD, and TIXT have all reported beats on both revenue and earnings.  Meanwhile, ASIX, TU, FYBR, and VST all missed on revenue while beating on earnings.  On the other side, ENB, MARUY, BEP, SCRYY, FOCS, and CLMT have reported beating the estimates on revenue but missed on the bottom line.  Finally, HOCPY, ING, AHEXY, FLR, CNK, QRTEA, DISH, EGIEY, and USM reported misses on both lines.

After Thursday’s ugly session, the question is whether the market can manage to hold ground or will it give up the lows of the last week (also the last year). The bears certainly have the momentum and with the weekend ahead, risk appetite may be low on a Friday. We are oversold, so beware of an “oversold bounce.” Either way, caution is still the smart play since intraday chop and daily reversals have been the norm recently. Don’t get caught chasing moves only to be stuck in a reversal that you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Idea 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

However, the daily trade ideas tickers are below.

SNAP Case Study | Actual Trade

Swing Trade Ideas for your consideration and watchlist: BPT, STLD, AIZ, CAR, OXY, HAL, WRB, EPD, MRK, AAL, MOMO, HD, AMD, MMM. 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 Tuesday markets opened basically flat again.  All 3 major indices then road a roller-coaster the rest of the day, ending on an upswing on a very volatile day.  This left us with indecisive Doji and Spinning Top candles.  On the day, SPY gained 0.43%, DIA gained 0.15%, and QQQ gained 0.11%.  The VXX fell 1.6% to 27.05 and T2122 rose out of the oversold territory to 39.29.  10-year bond yields rose slightly to 2.987% and Oil (WTI) fell 2.3% to $102.75/barrel.

After the close, AMD, ABNB, EXR, MTCH, SWKS, PKI, PEAK, JKHY, LFUS, ENLC, CRUS, CNR, DOOR, BXC, EIX, SCI, FNMA, and SABR all reported beats on both revenue and earnings.  Meanwhile, PRU, PSA, CZR, AIZ, CNDT, BFAM, MCY, WERN, and GNW missed on revenue while beating on earnings.  On the other side, SBUX, WCN, VRSK, OKE, AMCR, YUMC, LYFT, OSH, and CRK reported beating the estimates on revenue but missed on the bottom line.  Finally, RNR, MCY, and AKAM reported misses on both lines.

Overnight, Chinese company DIDI fell more than 5% overnight as it was announced that the SEC is investigating the company related to its IPO.  Since the company was already forced to delist from the US (US shareholders got Hong Kong shares), it is not quite clear what authority the SEC has or what legal liability the Chinese company or individuals might face.  Nonetheless, the news spooked investors

SNAP Case Study | Actual Trade

On the Russian invasion story, the EU launched new sanctions to halt Russian oil sales by implementing a 6-month phase-out of Russian crude imports.  Two EU countries will be given exemptions that will allow them to continue importing Russian oil until the end of 2023.  Those are pro-Putin Hungary and Slovakia. The sanctions also include removing Sberbank (Russia’s largest bank by far) from the global SWIFT payment system.  Lastly, a new ban prohibits European countries from offering any ships, services, or insurance to any entities for the transport of Russian oil. This could hurt Russian global oil exports, but China and India could also insure and provide ships for such shipments as well to at least some extent. These moves were largely expected but might still impact global oil prices. In other effects, CNN reported overnight that the US has now expended 35% of the US supply of Javelin missiles and 25% of the Stinger missile stockpile. While not threatening to US Defense, this will result in huge new orders to RTX, which is already working with the DoD to redesign and improve (at added cost) the Stinger.

Overnight, the never-ending saga of PR maven Elon Musk continued.  He said that businesses, governments, and perhaps journalists need to start paying to access the TWTR platform.  The vague statement did not address groups like non-profits, but he did say that “casual users” would continue to have access at no cost.  Yet, TWTR has already begun rolling out a subscription service that adds new premium features like “undoing” tweets and adding bookmarks and folders.

Overnight, the Asian markets were mostly lower as mainland China was in it’s last day of holiday shutdown.  India (-2.29%) and Hong Kong (-1.10%) were big outliers to the down side with most moves very modest in size.  In Europe, stocks are nearly red across the board as the Bank of England is expected to announce a 4^th-straight rate hike on Thursday.  The FTSE (-0.62%), DAC (-0.08%), and CAC (-0.51%) are all lower in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modest green start to the day.  The DIA implies a +0.31% open, the SPY is implying a +0.34% open, and the QQQ implies a +0.26% open at this hour.  10-year bond yields are down a bit to 2.956% and Oil (WTI) is up almost 4% (on the EU-Russian oil news) to $106.19/barrel in early trading.

The major economic news scheduled for release on Wednesday includes ADP Apr. Nonfarm Payrolls (8:15 am), Imports/Exports and Mar. Trade Balance (both at 8:30 am), Apr. Services PMI (9:45 am), Apr. ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (10:30 am), FOMC Statement and FOMC Rate Decision (both at 2 pm), and the FOMC Press Conference (2:30 pm).  Major earnings reports scheduled for the day include ATI, ABC, AMRX, APG, ARKO, GOLD, BDC, BWA, BHG, EAT, BIP, BRKR, CDW, CRL, CQP, LNG, CLH, CVS, EMR, EXPI, RACE, FTS, FDP, GTES, GNRC, HZNP, IDXX, JHG, JCI, MAR, MRNA, MUR, NYT, NI, PSN, PNW, REGN, SBGI, SITE, SPR, SUN, TT, VNTR, VMC, XYL, and YUM before the open.  Then after the close, ALB, ALGT, ALL, AEL, AFG, APA, ATO, BKH, BKNG, CPE, CENTA, CF, CHK, CIVI, CTSH, CLR, CTVA, CCRN, CW, DCP, CIOD, EBAY, ET, NVST, ETSY, FLEX, GFL, GIL, GDDY, GXO, HST, IR, JAZZ, LHCG, LNC, LUMN, MANT, MRO, MMS, MET, NUS, OPAD, OTEX, PTVE, PARR, PDCE, PXD, PAA, QRVO, QDEL, O, REGI, RCII, REV, RYI, SIGI, SAVE, SFM, SNEX, TTEK, TSE, TTEC, TTMI, TWLO, and UBER report.

So far this morning, REGN, AMKBY, ABC, GNRC, BWA, UTHR, SITE, PSN, GEL, VNTR, CVS, MRNA, CDW, TT, and FTS have all reported beats on both revenue and earnings.  Meanwhile, VWAGY, VWAPY, GOLD, PDYPY, MUR, and FSNUY all missed on revenue while beating on earnings.  On the other side, UBER, NI, FDP, BHG, and KD have reported beating the estimates on revenue but missed on the bottom line.  Finally, IDXX, JHG, EAT, AMRX, and JCI reported misses on both lines.

This week we will see almost 1,500 earnings reports.  On Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

All eyes are on the Fed today, even with other news and plenty of earnings on the calendar. There could be a bit of volatility in the morning, but I would not expect any definitive moves until after Fed Chair Powell’s presser (and maybe not until it is digested, which would mean Thursday). While it is very widely expected (98.5% chance per futures betting) that we will see a half percent rate increase, just as with earnings lately, the focus will be more on the forward guidance from Powell than the actual rate news (unless it is a major shock like a three-quarters of a percent move). With all this said, for now, all we know is that the trend is still very clearly bearish and that we’ve seen a very tepid relief bounce the last 2 days. Even so, “whipsaw” has been the keyword lately. So, caution is still the smart play. Don’t get caught chasing a gap only to be stuck in a reversal that you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: CLX, XLE, SBUX, CVX, MOS, HAL, AR, FB, AMD, XOM, SLB. 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 the week essentially flat Monday.  Then an early rally lasted only the first hour before a reversal into a strong sustained selloff took us to the lows at about 3 pm. This gave way to another reversal with a strong rally in the last hour taking all 3 major indices out on or near the highs of the day.  The QQQ led the afternoon rally and was the strongest of the three. This left us with indecisive candles in the large caps and a white candle with a long lower wick in the QQQ.  On the day, SPY gained 0.64%, DIA gained 0.35%, and QQQ gained 1.67%.  The VXX fell about three-quarters of a percent to 27.50 and T2122 rose but remains deeply oversold at 6.36.  10-year bond yields spiked up to 2.983% and Oil (WTI) rose over 1% to $105.70/barrel.

During the say, it was announced that the vote by a NY AMZN warehouse came down against unionizing by a huge margin.  The warehouse, which is near the one that unionized earlier this year, voted 618 opposed to 380 for unionization.  Elsewhere, AAPL was hit with another antitrust charge by the EU.  This time the charge is over the “Apple Pay” monopoly where AAPL prevents competitors of Apple Pay from accessing the iPhone hardware required to implement “contactless payments” that AAPL itself enjoys.

Europe suffered its own “flash crash” Monday with many European exchanges momentarily dropping sharply. The worst-hit exchange was in Sweden, where the trouble started. The Swedish exchange dropped as much as 25% when a trader from C entered a “fat finger” trade that caused the crash and started a cascade of exchanges halting trade momentarily. There is no word as to whether this was a “spoofing” trade, which was the cause of the most recent US flash crash and is now outlawed in the US.

SNAP Case Study | Actual Trade

After the close, DVN, SANM, MGM, CC, CAR, FMC, FANG, LEG, CBT, ANET, KMT, TA, WEC, LOGI, and CACC all reported beats on both revenue and earnings.  Meanwhile, WMB, CLX, and ARGO missed on revenue while beating on earnings.  On the other side, NXPI, KMPR, CNO, OGS, and SEDG reported beating the estimates on revenue but missed on the bottom line.  Finally, MOS, EXPE, FLS, WWD, and FN reported misses on both lines.

On the Russian invasion story, the EU has begun debating a ban on Russian oil.  It appears that Hungary’s Pro-Putin regime may be a stumbling block.  Analysts are expecting a specific exception for Hungary and perhaps Slovenia with the rest of the EU banning the import of Russian oil.  The ban may be announced as part of the 6^th round of sanctions as early as this week.  C also announced it is in active discussions to sell its Russian operations (which have been closed since the start of the Russian invasion of Ukraine.  Overnight, some US analysts began telling the press that they now expect Russian President Putin to actually declare war on Ukraine (so that he can institute a nationwide mobilization and draft more conscripts) very soon. Finally, it appears that Russia has dodged default again as at least some investors received dollar payments for their maturing bonds overnight in payments funneled through the London offices of C bank.

Overnight, the Asian markets were mostly in the red on modest moves with mainland Chinese exchanges still closed.  New Zealand (-0.92%), Taiwan (-0.56%), and Australia (-0.42%) paced the losses.  In Europe, stocks are mixed but leaning to the upside on modest moves at mid-day.  The FTSE (-0.82%) lags while the DAX (unch.) and CAC (+0.13%) are typical with a few of the minor exchanges up as much as three-quarters of a percent in early afternoon trading.  As of 7:30 am, US Futures point to a down start to the market day.  The DIA implies a -0.45% open, the SPY is implying a -0.44% open, and the QQQ implies a -0.43% open at this hour.  10-year bond yields are down slightly to 2.967% and Oil (WTI) is off 1.5% to $103.66/barrel in early trading.

The major economic news scheduled for release on Tuesday is limited to Mar. Factory Orders and Mar. JOLTs Job Openings (both at 10 am).  The FOMC Meeting also begins.  Major earnings reports scheduled for the day include AGCO, AME, ARNC, BIIB, BP, BR, CTLT, CNP, CMS, CNHI, CIGI, CMI, DK, DD, ETN, EL, EXPD, FIS, BEN, IT, GEO, HSIC, HLT, HWM, ITW, INCY, ITT, J, KKR, LEA, LDOS, LGIH, LPX, MPC, MLM, MTOR, TAP, MPLX, PARA, PFE, PGR, PEG, QSR, ROK, SPGI, SMG, SEE, SGRY, TEVA, TRI, TWI, VSH, WAT, WLK, ZBRA, and ZBH before the open.  Then after the close, ACHC, AMD, ABNB, AKAM, AMCR, AIG, ANDE, AIZ, BFAM, CZR, CWH, CDNT, EIX, THG, PEAK, KAR, LFUS, LYFT, DOOR, MTCH, MATX, MCY, MUSA, OSH, OKE, OMI, PKI, PRU, PSA, RNR, REZI, SCI, SWKS, SBUX, SMCI, VRSK, WCN, WERN, and YUMC report.

So far this morning, PFE, BNPQY, FIS, ETN, DPSGY, CHT, DD, AME, ZBH, IT, J, WLK, HWM, HSIC, SEE, ITT, MPLX, ZBRA, WAT, LPX and ATKR have all reported beats on both revenue and earnings.  Meanwhile, BP, KKR, HLT, INCY, NHYDY, TEVA, TRTN, EL, BR, and LEA missed on revenue while beating on earnings.  On the other side, BIIB, MLM, CNP, CTLT, PINC, WLKP, LDOS, and HLF have reported beating the estimates on revenue but missed on the bottom line.  Finally, SPGI, ROK, ARNC, and ETRN reported misses on both lines.

This week we will see almost 1,500 earnings reports.  The major reports coming later in the week include BKNG, CTSH, CTVA, CVS, EMR, FTNT, IDXX, JCI, MAR, MET, MRNA, PXD, O, REGN, and UBER on Wednesday.  Then on Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

As the FOMC Meeting starts, most eyes are on that conference waiting for the outcome. While it is very widely expected that we will see a half percent rate increase from the Fed tomorrow, just as much focus will be placed on exactly what the statement says and how Chairman Powell responds to questions at the presser. So, tone matters to markets. With that said, we got a lot of mostly positive earnings last night and this morning. This might help the bulls a bit, but the premarkets have not shown this yet. Remember that the trend is still very clearly bearish, but that we have seen choppy moves (white candles, intraday reversals, and plenty of wicks in the bearish trend). Caution is still the smart play. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: UPWK, CAR, ORCL, INTC, GT, GLW, QCOM, ROKU, FB, PINS, AA, PFE, FCX, CVE, MVIS, DOCU, EL. 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 Friday, stocks gapped down after disappointing earnings from AMZN and even more scary guidance from INTC, AMZN, and others.  After 30 minutes of finding their footing, the bears took firm control and drove markets on an all-day selloff that closed very near the lows in all 3 major indices.  This left us with big, ugly, black candles in all 3 and took the QQQ to its low of the year with SPY only 0.30% above the February 24 low.  On the day, SPY lost 3.58%, DIS lost 2.73%, and QQQ lost 4.38%.  The VXX gained 6.4% to 27.71 and T2122 dropped deep into the oversold territory at 3.27. 10-year bond yields spiked to 2.926% and Oil (WTI) fell almost 0.9% to $104.45/barrel.

On Saturday, BRKB (Berkshire Hathaway) held its annual meeting.  Among the topics discussed was the fact that BRKB bought back $51 billion worth of stock during Q1.  The company also purchased 14% of OXY ($7 billion) over a 2-week period in March and significantly added to its CVX position during Q1.  They also have bought 9.5% of ATVI (in a simple arbitrage bet for when the MSFT acquisition closes).  Charlie Munger blasted BRKB investor CalPERS for having called for organizational changes including the replacement of Warren Buffett as Chairman.  On other topics, Munger said the stock market is a “mania of speculation” and said that HOOD was “justly unraveling” for disgusting practices.  He also warned people to avoid cryptocurrencies.  For his part, Buffett as usual said he is having a lot of trouble finding anything worth buying and that he’s in a mode of “preparing BRKB for an economic stall” (hence the buying a big stake in non-cyclical oil companies).

SNAP Case Study | Actual Trade

Over the weekend, Bloomberg reported that China’s economy has slowed rapidly as its “Covid Zero” lockdowns are hurting deeply.  The lockdowns have closed factories and other businesses, kept consumers from spending, and closed transportation systems like trucking and ports.  Factory activity fell to the lowest level in 2 years with Mfg. PMI falling to 47.4 for the month.  Meanwhile, Services PMI fell to 41.9 in April (the lowest level since Feb. 2020).  China’s National Bureau of Statistics said that 19 of 21 sectors had seen a contraction over the month.  This in itself tells you how bad it is since China is notorious for painting a rosy picture in official reports.

On the Russian invasion story, US House Speaker Pelosi led a small delegation of US lawmakers to Kyiv on Sunday for talks that included Ukrainian weapons needs.  This comes in front of Congressional wrangling over President Biden’s new $33 billion aid request for Ukraine that was sent to Congress last week.  In Russia, Sunday it was disclosed that $5 million worth of farm equipment (which Russians stole from a Ukrainian DE dealership since the invasion) has been remotely disabled. Dutch Dock Workers also refused to unload a tanker of Russian oil.  More importantly, the German Econ. Minister Baerbock also announced that Germany would be free of dependence on Russian oil by this summer.  That pulls forward the timeline for that independence by at least 3-6 months from previous estimates.  This comes as the Financial Times reports Germany has now called for the EU to add a phased-in ban of Russian oil as part of a new round of sanctions on Moscow.  Bloomberg also reports that Russian state-owned Gazprom reported that its gas exports fell 22% month-on-month in April.  Despite this drop in supply, LNG prices have not spiked due to mild weather and increased supply from other sources, such as the LNG, SHEL, and TOT. Finally, as of Monday, Swedish Foreign Minister Linde said it is now all but certain that Sweden and Finland will both apply for NATO membership after weekend talks.

Bloomberg reported early this morning that Elon Musk sold another $4 Billion of TSLA stock in order to diversify and raise cash for his TWTR bid.  Most of that selling was done on Tuesday, the day TSLA stock fell 12%.  Bloomberg also says his pitch to bankers for funding for the TWTR takeover included job cuts, other cost-cutting, as well as the implementation of new ways to monetize the platform (recoup investment).  However, in a bid to prevent TSLA from sliding further, Musk also added a comment to the SEC filing, saying that he has no more plans to sell TSLA stock.

Overnight, the Asian markets were lower on mostly modest moves as all the Chinese exchanges closed for a Labor Day holiday.  Australia (-1.18%), New Zealand (-0.84%), and South Korea (-0.28%) paced the region Monday.  In Europe, stocks are nearly red across the board at mid-day, with the sole exception of London.  The FTSE (+0.47%), DAX (-0.60%), and CAC (-1.43%) are typical and lead the region as Europe digests bad Chinese data and the proposition of Energy sector sanctions on Russia.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.40% open, the SPY is implying a +0.36% open, and the QQQ implies a +0.49% open at this hour.  10-year bond yields are down slightly from Friday to 2.912% and Oil (WTI) is off almost 3% to $101.64/barrel in early trading.

The major economic news scheduled for release on Monday is limited to Apr. Mfg. PMI (9:45 am), Apr. ISM Mfg. PMI (10 am).  Major earnings reports scheduled for the day include AMG, ARLP, BRKB, CAN, EDP, FMX, GPN, GPRE, ITRI, JELD, MCO, ON, SAIA, TKR, and WEC before the open.  Then after the close, ARGO, ANET, CAR, BGCP, BXP, CBT, CC, CLX, CNO, CTRA, CVI, DVN, FANG, EXPE, FN, FLS, FMC, KMPR, KMT, LEG, LOGI, MGM, MOS, NTR, NXPI, OGS, SANM, SEDG, RIG, TA, WMB, and WWD report.

So far this morning, BRKB (Saturday), EPD, WEC, GPN, TKR, SXC, and PK have all reported beats on both revenue and earnings.  Meanwhile, AMG missed on revenue while beating on earnings.  On the other side, CAN, and MCO have reported beating the estimates on revenue but missed on the bottom line.  Finally, JELD and ARLP reported misses on both lines.

Economics news coming later this week includes Mar. Factory Orders and Mar. JOLTs Job Openings on Tuesday.  Then on Wednesday, we see ADP Apr. Nonfarm Payrolls, Imports/Exports, Mar. Trade Balance, Apr. Service PMI, Apr. ISM Non-Mfg. PMI, Crude Oil Inventories, FOMC Statement, FOMC Rate Decision, FOMC Press Conference.  On Thursday, we get Weekly Initial Jobless Claims, Q1 Nonfarm Productivity, and Q1 Labor Costs.  Finally, on Friday we see Apr. Avg. Hourly Earnings, Apr. Nonfarm Payrolls, Apr. Participation Rate, and Apr. Unemployment Rate.

This week we will see almost 1,500 earnings reports.  The major reports coming later in the week include AMD, AIG, DD, EL, FIS, HLT, ITW, KKR, MPC, PFE, PRU, PSA, SPGI, SBUX, and TRI on Tuesday.  Then Wednesday we get BKNG, CTSH, CTVA, CVS, EMR, FTNT, IDXX, JCI, MAR, MET, MRNA, PXD, O, REGN, and UBER.  On Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

So, another heavy week of earnings has kicked off. This morning those earnings are leaning green but are more mixed than earlier reports this quarter. As has been the case recently, it is the forward guidance that most traders are waiting to hear since the bad Q1 GDP Print last week has everyone fearing recession. With that said, remember that the trend is still very clearly bearish, but that we have seen choppy moves (white candles, intraday reversals, and plenty of wicks in the bearish trend). Caution is still the smart play. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: HSY, UNG, MO, SQQQ, MMM, BAC, KO, LLY, KBH, GM, MSFT, AAPL, HD, BTU, SLB, HAL, AA, TSLA. 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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