On Thursday stocks gapped strongly higher at the open on positive earnings news.  However, they immediately faded that gap, retesting the previous close, only to reverse again at 10:30 am to start a strong rally that lasted until 3:30 pm when they sold back off a bit the last 30 minutes.  This left us with large white candles with large wicks at the bottom and smaller wicks at the top of the candle across all 3 major indices.  (Too much wick to call any of the 3 a Morning Star pattern.) On the day, SPY gained 2.52%, DIA gained 1.88%, and QQQ gained 3.55%.  However, that late-day selloff into the close gave back the T-line (8ema) in all three.  The VXX lost 4.26% to 26.04 and T2122 climbed back out of the oversold territory to 31.79.  10-year bond yields were off to 2.83% and Oil (WTI) spiked 3.24% to $105.32/barrel.

Prior to the open Thursday, Q1 GDP came in much worse than expected.  The number reported annualizes to a -1.4% GDP growth rate.  This compares to 2021 final GDP number (+6.9%) and the analysts consensus forecast for Q1 of +1.1% (annualized).  Of course, that bad number will be revised in the future.  Economists also said that this print was exaggerated by temporary problems such as the Q1 supply chain bottlenecks at West Coast ports. However, despite the “don’t panic” spin, it was clearly a bad print.  Nonetheless, markets ignored the bad news and gapped higher.  In other economic news, the Weekly Initial Jobless Claims came in just as forecast at 180k for the week.

SNAP Case Study | Actual Trade

After the close, AAPL, INTC, GILD, WDC, SYK, MHK, AJG, OLN, KLAC, CE, AVTR, FBHS, COOP, DLR, SWN, CSL, AEM, HUBG, TEX, ATR, BIO, ENSG, TEAM, BZH, SKYW, WIRE, CENX, SM, ACA, MERC, and MATW all reported beating estimates on both revenue and earnings.  Meanwhile, HIG, PFG, ATUS, CINF, LPLA, and WU missed on revenue while beating on earnings.  On the other side, AMZN, EMN, SSNC, TKC, ROKU, DXCM, and ULCC beat on revenue while missing on earnings.  However, RMD, DNZOY, LHX, HOOD, X, and CG missed on both lines. 

In other after-hours earnings-related news, AAPL significantly beat on both lines and increased its buyback program to $90 billion for 2022.  However, the company also warned of supply chain troubles (China Covid lockdowns) that could hurt Q2 numbers by between $4 billion and $8 billion.  Elsewhere, AMZN lowered guidance which raises the fear that consumers are starting to be tapped out by inflated prices. They also took a $7.6 billion loss on their RIVN stake.  In addition, INTC offered lower than expected guidance for Q2.  Finally, HOOD reported it has fewer active users and shrinking revenue due to smaller order flow that they could sell.  This is evidence that the meme stock craze and “day trading while working from home” have both decreased significantly over the last few months.

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 say his pitch to bankers for funding for the TWTR takeover included job cuts, other cost-cutting, and implementing new ways to monetize the platform (recoup investment).  However, in a bid to prevent TSLA from sliding further, Musk has added a comment to the SEC filing, saying that no more sales of TSLA stock are planned.

Overnight, the Asian markets were mostly very strongly green.  Hong Kong (+4.01%), Shenzhen (+3.69%), and Shanghai (+2.41%) led the way higher. However, there were positive moves of over 1% in most exchanges.  Only India (-0.83%) showed a significant loss. In Europe, stocks are mostly modestly green at mid-day. The FTSE (+0.07%) and CAC (+0.09%) lag, but the DAX (+0.68%) is typical of the region in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap down and red start to the day.  The DIA implies a -0.44% open, the SPY is implying a -0.89% open, and the QQQ implies a -1.18% open at this hour.  10-year bond yields are trading up at 2.871% and Oil (WTI) is up over 1% to $106.61/barrel in early trading.

The major economic news scheduled for release on Friday includes Mar. PCE Price Index, Q1 Employment Cost, and Mar. Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Mich. Consumer Sentiment (10 am).  Major earnings reports scheduled for the day include ABBV, AB, AON, ARCB, AZN, BLMN, BMY, CRI, CBOE, CHTR, CVX, CL, XOM, HE, HON, IMO, LHX, LYB, MGA, NWL, NMRK, NVT, PSX, SYNH, TRP, and WY before the open.  There are no major earnings reports scheduled for after the close.

So far this morning, AZN, BMY, HON, LYB, PSX, WY, CX, and CRI have all reported beats on both revenue and earnings.  Meanwhile, CHTR, AON, SXT, and TAL all missed on revenue while beating on earnings.  On the other side, XOM, CVX, CL, and CNX have reported beating the estimates on revenue but missed on the bottom line.  Finally, CG, TIGO, and UOVEY reported misses on both lines.

The final flurry of earnings reports (in an earnings blizzard week) came last night and this morning. Again, the numbers were mostly positive, but not all were good and the devil is in the details. Also, the forward guidance (which has struck fear in many traders) has disappointed. With that said, remember that the trend is still very clearly bearish in the mid-term, despite a strong day Thursday. And whipsaw continues to be the norm recently. So, beware of a potential gap-and-reverse move after the open. Caution is still the smart play, especially with the weekend news cycle ahead. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that it’s Friday. So pay yourself. Also bear in mind 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. Also, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. So, if you’re wrong, just admit it and take your loss. Trading is not a sprint, it’s a marathon. 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 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

On Wednesday markets went on a wild all-day roller-coaster ride, only to end up not far from where it closed Tuesday.  This left us with indecisive, long-legged Doji candles in all 3 of the major indices.  On the day, SPY gained 0.26% (mostly on the pre-market gap), DIA gained 0.16%, and QQQ lost 0.12%.  The VXX rose more than 3% to 27.30 and T2122 rose, but only to 4.15 which is still deep in the oversold territory.  10-year bond yields rose to 2.836% and Oil (WTI) rose fractionally to $102.07/barrel.

After the close, QCOM, MOH, AMGN, AFL, AVT, CHRW, PPC, DFS, URI, HOLX, HTZ, EHC, MTH, MEOH, PLXS, MAT, ICLR, NLY, FIX, MYRG, ALSN, AVB, ESBMRN, PTC, TDOC, WSC, MAA, HP, TYL, and FWRD all reported beating estimates on both revenue and earnings.  Meanwhile, FB, CYH, RE, EQIX, AXS, AR, CCS, AWK, AMED, INVH, and AUY missed on revenue while beating on earnings.  On the other side, F, PYPL, TROX, SLM, CAKE, CMPR, PINS, and NBR beat on revenue while missing on earnings.  However, ORLY, ACGL, FTI, CACI, CP, LVS, EQT, ALGN, GGG, and UCTT all missed on both lines. 

SNAP Case Study | Actual Trade

In economic read-throughs from earnings news, F saw a quarterly profit only dragged lower by its stake in RIVN.  PYPL also lowered its annual guidance, citing a pullback in consumer spending.  PPC also said that restaurant demand for chicken has returned to pre-pandemic levels.  Chinese shipping giant (container ships) Yang Ming Marine Transport said that supply chain issues may show signs of easing.  The company said the Los Angeles and Long Beach port delays have been reduced, with only a 40 ship backlog waiting to unload (10-14 days of wait time compared to weeks a few months ago).  The company also commented that new (Biden Administration) port procedures, such as requiring empty containers to be immediately moved and adding off-port storage facilities, should improve the flow even more in the second half of 2022.

FB shares are soaring this morning after missing on revenue and beating on earnings.  The proximate cause seems to be that the company reported that they have started growing its number of users again. Among other big pre-market gainers we see CTMX, ENDP, FNGU, LC, MXL, and NOW.  Among big pre-market losers we find ALGN, AMGN, BTU, CPZ, FLWS, FNGD, JKS, ORLY, SOXS, SQQQ, SWK, TDOC, TECS, UVXY, and VLON.

Overnight, the Asian markets were nearly green across the board.  Only Shenzhen (-0.23%) showed any red while Japan (+1.75%), Hong Kong (+1.65%), and Australia (+1.32%) led the way higher.  In Europe we see the same picture taking shape at mid-day.  Only Finland (-0.05%) shows any red.  Meanwhile, the FTSE (+1.04%), DAD (+1.44%), and CAC (+1.66%) are leading the continent higher in early afternoon trading.  AT 7:30 am, US Futures are pointing toward a strong gap higher at the start of the day.  The DIA implies a +0.91% open, the SPY is implying a +1.61% open, and QQQ implies a +2.29% open on earnings-fueled strength.  10-year bond yields are back down a tad to 2.819% and Oil (WTI) is off fractionally to $101.55/barrel in early trading.

The major economic news scheduled for release on Thursday is limited to Q1 GDP and Weekly Initial Jobless Claims (both at 8:30 am).  Major earnings reports scheduled for the day include FLWS, AOS, AIMC, AEP, AIT, ARES, ABG, BAX, BFH, BC, CARR, CAT, CHD, CNX, CMCSA, DPZ, DTE, LLY, EME, FAF, FCNCA, FCFS, FTV, FCN, GTX, GOL, GFF, HSY, HUN, IP, IPG, IRM, JKS, KBR, KDP, KEX, LH, LAZ, LECO, LIN, LKQ, MDC, HZO, MA, MCD, MD, MRK, NLSN, NOK, ORI, OPCH, OSTK, PATK, PBF, BTU, PCG, PBI, POR, PHM, RLGY, RS, SNY, SNDR, SIRI, SAH, SO, LUV, SWK, SRCL, TROW, TFX, TPX, TXT, TMO, TNL, TWTR, VIRT, VC, GWW, WBS, WST, WEX, WTW, and XEL before the open.  Then after the close, AEM, LNT, ATUS, AMZN, AAPL, ATR, ACA, AJG, TEAM, AVTR, BZH, BIO, CSL, CE, CENX, CLW, COLM, DXCM, EMN, WIRE, ENSG, ERIE, FSLR, FBHS, ULCC, GILD, HIG, HUBG, INTC, KLAC, LPLA, MTX, MHK, COOP, NOV, OLN, OMF, PFG, RMD, ROKU, SKYW, SM, SWN, SSNC, SYK, TEX, TFII, X, WFG, WDC, and INT report.

So far this morning, CMCSA, MRK, CAT, SNY, TMO, LIN, LLY, NOK, MO, SO, IP, MCD, PBF, CARR, AEP, CTE, XEL, LKQ, SCMMY, BAX, KDP, RS, PHM, HSY, IPG, SIRI, LUV, FAF, HUN, BC, CHD, MDC, IRM, TPX, VIRT, AIT, AOS, VC, LAZ, TFX, HZO, KEX, FCNCA, AIMC, MD, WEX, and FCFS have all reported beats on both revenue and earnings.  Meanwhile, NOC, SWK, LH,, ABG, KBR, NLSN, and WST all missed on revenue while beating on earnings.  On the other side, FAF, TROW, JKS, GTX, ERJ, ARES, TNL, POR, CNX, and PTEN have reported beating the estimates on revenue but missed on the bottom line.  Finally, SAH, SRCL, OSTK, FLWS, and STRA all reported misses on both lines.

Once again we saw a blizzard of earnings last night and this morning. For the most part, this was a good report card for stocks and markets reflect a renewed optimism before the open today. However, remember that the trend is still very clearly bearish, we were very over-extended to the downside as of yesterday’s close, and a ride on the whipsaw has been normal recently. So, beware of a potential pop-and-drop or at least the possiblity that a bull move could be nothing but a relief rally. Also keep in mind that there are still more earnings to come, including AAPL and AMZN after the close today. My point is that we need to be cautious. 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. Also, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. So, if you’re wrong, just admit it and take your loss. Trading is not a sprint, it’s a marathon. 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: LUV, V, GSK, BTU, MCD, FB, SWK, RHI, IP, DAL, 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

Stocks gapped down about six-tenths of a percent on Tuesday, following Asia and Europe on fears of Covid’s impact through China on the global economy.  Markets then proceeded to sell off all day long.  With that said, the morning and last hour selloffs were much stronger than the mid-day drift lower.  This left us with big, ugly, black candles that were essentially Marubozu (shaved head) candles that closed on the lows.  On the day, SPY lost 2.78%, DIA lost 2.35%, and QQQ lost a whopping 3.77%.  The VXX gained 6.25% to 26.35 and T2122 dropped deep into the oversold territory at 2.88.  10-year bond yields fell sharply to 2.743% and Oil (WTI) spiked 3.7% to $102.14/barrel.

During the day, the US Senate confirmed Lael Brainard as Vice-Chair of the Fed, making her the country’s top banking regulator as well.  This may be of note inasmuch as she has been the lone vote against easing bank regulation on several previous Fed votes.  In other economic news during the day, March Durable Goods Orders, Conf. Board Consumer Confidence and March New Home Sales all came in slightly below the expected number.

In a follow-up to the Elon Musk, TWTR, and TSLA story, it appears traders believe that having his attention split again (between TSLA, SpaceX, Boring Company, and now TWTR) will hurt TSLA.  TSLA stock fell 12.19% on the day (wiping out $129 billion in market cap in the process).  This came on top of the half a percent pullback the stock put in after the announcement on Monday afternoon.

SNAP Case Study | Actual Trade

After the close, MSFT, V, TXN, TNET, TER, MDLZ, MTDR, BHE, JBT, EXAS, CB, EW, COF, AGR, CMG, RHI, RUSHA, SKX, HA, BYD, DHX, FFIV, and ENPH all reported beating estimates on both revenue and earnings.  Meanwhile, GM, MKSI, and CHE missed on revenue while beating on earnings.  On the other side, JNPR and HA beat on revenue while missing on earnings.  However, GOOG, GOOGL, FANUY, and EQR missed on both lines.  With that said, GOOG/GOOGL also announced a $70 billion share buyback program (up from $50 billion last year).  Finally, despite missing on revenue and citing supply chain issues, GM maintained its revenue forecast for the year and raised its earnings outlook.

In non-earnings news after the close, HOOD announced it is laying off 9% of its full-time staff.  The company claimed the layoffs were to get rid of redundancy caused when they grew too fast last year.  Elsewhere, it was also announced that AMZN will not face any OSHA penalties stemming from the 2021 tornado-related collapse of its Illinois warehouse.  In electric car news, LCID announced that they have received an order for 100,000 cards from the Saudi Arabian government.  GM also announced that they have now received 140,000 reservations for their Chevrolet Silverado EV.  The latter two announcements were clearly responses to F announcing massively increased electric F-150 as well as other EVs (600k by 2023 and 2 million by 2026).

On the Russian invasion story, Russia is ratcheting up tensions with the West in a game of chicken.  Russian Foreign Minister Lavrov went so far as to say the threat of nuclear war was “very, very real.”  Later in the day, Russia decided to cut its supply of gas going to Poland and Bulgaria. The suspension was ostensibly because the two countries refuse to change their contracts to pay in Rubles instead of the dollars that are specified in the contracts.  However, another potential reason is that Poland has recently given heavy weapons (tanks, artillery, and perhaps Mig jets) to Ukraine.  For their part, former close Russian ally Bulgaria has led efforts in the EU to sanction Russia and has raised funds to help Ukraine strengthen its defenses.  Elsewhere, for the first time, German Economic Minister Habeck said that a full embargo on Russian oil would be manageable.  Finally, the Justice Dept. also announced after the close that it will be seeking additional authority from Congress to seize and sell Russian assets. Attorney-General Garland said he hopes for the authority to give the proceeds of those sales directly to Ukraine.

Overnight, the Asian markets were mostly red, with the exception of mainland China.  Taiwan (-2.05%), Japan (-1.17%), and South Korea (-1.10%) passed the widespread losses.  However, Shenzhen (+4.37%) and Shanghai (+2.49%) were clear outliers and the only appreciable green in the region. (The China rally came as official data showed that Chinese industrial profits rose 8.5% in Q1. This result shocked analysts who were expecting Covid-related slowed profits.)  In Europe, stocks are green across the region at mid-day, with the lone exception of Greece.  The FTSE (+0.83%), DAX (+0.25%), and CAC (+0.44%) lead the way on market-cap and volume.  However, some of the smaller exchanges are moving more (especially Russia at +3.01%) in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap higher at the start of the day.  The DIA implies a +0.90% open, the SPY is implying a +0.67% open, and the QQQ implies a +0.54% open at this hour.  10-year bond yields are up a bit to 2.767% and Oil (WTI) is up fractionally to $101.99/barrel in early trading.

The major economic news scheduled for release on Wednesday includes Mar. Trade Balance and Mar. Retail Inventories (both at 8:30 am), Mar. Pending Home Sales (10 am), and Crude Oil Inventories (10:30 am).  However, there is a blizzard of major earnings reports scheduled for the day including AMT, APH, ADP, BA, BSX, BG, CVE, GIB, CHKP, CHEF, CME, CSTM, DAN, ETR, EEFT, EVR, FISV, GRMN, GD, GPI, HOG, HELE, HES, HUM, IQV, KHC, MHO, MKL, MAS, NSC, ODFL, OSK, OC, PAG, PRG, ROL, R, SABR, STX, SLGN, SPOT, SHOO, STM, TMUS, TMHC, TEL, TECK, TDY, TRN, UMC, VRT, WNC, and WAB before the open.  Then after the close, AFL, ALGN, ALSN, AMED, AWK, AMGN, AR, ASGN, AVB, AVT, AXS, BMRN, CHRW, CACI, CP, CG, CLS, CCS, CAKE, FIX, CYH, DFS, ESI, EHC, EQT, EQIX, RE, F, GGG, HP, HTZ, HOLX, ICLR, INVH, JBSS, LVS, MAT, MTH, FB, MEOH, MAA, MOH, MYRG, NBR, NEX, ORLY, PYPL, PPC, PINS, PLXS, PTC, QCOM, RJF, RRX, NOW, SAVE, FTI, TDOC, TROX, UCTT, URI, WFRD, WSC, and AUY report.

So far this morning, CNC, UPS, VLO, ADM, GE, PEP, MMM, UBS, DHI, SHW, WM, GLW, ATLKY, AVY, GPK, ROPST, So far this morning, AMT, HUM, BG, GSK, GD, KHC, ADP, TEL, STM, GPI, BSX, ASAZY, SPOT, GIB, DAN, OC, CSTM, TMHC, DASTY, CME, EVR, HELE, WNC, and SHOO have all posted beats on both revenue and earnings.  Meanwhile, TMUS, DB, TECK, UMC, and TDY all missed on revenue while beating on earnings.  On the other side, VRT, CVE, MKL, ETR, and CHKP have reported beating the estimates on revenue but missed on the bottom line. Finally, BA, CS, EEFT, HOG, LYG, RNECY, TLSNY, TRN, and WAB all reported misses on both lines.

Another huge wave of largely good earnings leads the news today. Elsewhere, Europe is so far shrugging off the risks posed by Russia cutting natural gas supplies to two European nations as well as the Germans saying a Russian oil embargo would be “manageable.” With that said, despite backing off overnight highs, it looks like we are back in the “day-to-day chop” mode…at least at the start of the day. Also remember, that despite yesterday being an exception to the rule, we have been experiencing intraday reversals a lot lately. So, do not get caught in any whipsaw you are not prepared to weather. Respect the market condition and continue to be cautious. Don’t be in a hurry to chase gaps and early moves. It is better to give up a little of the move than to have to suffer through reversal pains after you jump early.

Focus on the 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. Remember that the first rule of making big money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint.

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

Markets gapped lower at the open Monday and then the bears gave us about half an hour’s worth of follow-through before bobbing along the bottom until noon.  However, then the “intraday reversal” norm kicked in as the bulls stepped in and led a rally that lasted the rest of the day.  This left us with white, large-bodied hammer-type candles in the SPY and DIA while the QQQ came up just short of printing a Bullish Piercing Candle.  With that said, the SPY and QQQ are still a bit extended below their T-line with the DIA closer, but certainly not testing the 8ema yet.  On the day, SPY gained 0.58%, DIA gained 0.68%, and QQQ gained 1.29%.  The VXX fell more than 5% to 24.80 and T2122 rose but remains inside the oversold territory at 14.29.  10-year bond yields fell sharply to 2.822% and Oil (WTI) fell more than 2.9% to $99.07/barrel (which was well up off the lows of the day).

Following through on Sunday’s news, the board of TWTR reversed course and accepted Elon Musk’s offer of $54.20/share to take the company private.  The stock closed up 5.64% to $51.69 after gapping up 4.25% at the open.  The deal is still subject to the approval of a shareholder vote. Assuming the deal closes, this puts the TWTR platform in the hands of one of the company’s former most vocal critics (who happens to have used the platform to break the law, for which he was fined tens of millions of dollars by the SEC).  While he is mainly just a PR man for all his companies, the key question for longer-term investors is how hands-on he will be and what this might mean for TSLA.  Cryptocurrency (and Musk favorite) Dogecoin also jumped 20% on the news, pricing in the hope that he will continue to heavily promote Dogecoin through TWTR.

Also in the afternoon, F announced it expects to increase electric F-150 production by 3.5 times for 2022 over previously announced production numbers (150k units vs. 40k units announced last year).  This would dwarf the production plans from RIVN and GM, which are expected to produce in the area of 10k units during the same period.  The company said it was confident it would hit this production plan and is aiming to have produced over 2 million electric vehicles by 2026.  TSLA, the leader in electric vehicles, has announced, but has not actually shipped any of its own “cyber trucks.”

SNAP Case Study | Actual Trade

Today another AMZN facility in NY will be voting on unionizing.  Elsewhere, the Shanghai area reported a record After the close, CCK, WRB, PKG, OI, AXTA, CDNS, SBAC, and ARE all posted beats on both the top and bottom lines.  Meanwhile, WHR, AMP, and ZION missed on revenues while beating on earnings.  On the other side, UHS and CR beat on revenue while missing on the earnings line.

In economic news, after the close, the USDA updated its Food Price Outlook for 2022.  The new forecast calls for 5%-6% overall food inflation in the US over the remainder of the year.  Included in this number is a forecast 5.5%-6.5% increase in “away from home” food prices.  Elsewhere, also after the close, a survey was released that showed 40% of US small businesses plan to raise prices by at least 10%.  The survey was conducted by the National Federation of Independent Businesses (NFIB) between April 14 and 17 covering 540 of their small business members.  The survey also found that nearly another half of the surveyed companies plan to increase prices between 4% and 9%.

Overnight, the Asian markets were mixed but leaned to the downside as China is again expanding testing and lockdowns for Covid.  Australia (-2.08%), Shenzhen (-1.66%), and Shanghai (-1.44%) paced the losses while India (+1.46%) led gainers by more than a percent over South Korea (+0.42%) and Japan (+0.41%).  In Europe, stocks are mostly green at mid-day.  The FTSE (+0.82%), DAX (+0.89%), and CAC (+1.11%) lead the region higher while only Portugal and Greece show any red in early afternoon trading.  As of 7:30 am, US Futures are pointing toward another down start to the day.  The DIA implies a -0.44% open, the SPY is implying a -0.43% open, and the QQQ implies a -0.48% open at this hour.  10-year bond yields are dropping again to 2.799% and Oil (WTI) is up fractionally to $98.87/barrel in early trading.

The major economic news scheduled for release on Tuesday includes Mar. Durable Goods Orders (8:30 am), Conf. Board Consumer Confidence and Mar. New Home Sales (both at 10 am).  Major earnings reports scheduled for the day include MMM, AAN, ALLE, ARCH, ADM, ARCC, AVY, CNC, GLW, CEQP, DHI, ECL, ENTG, GE, HUBB, NSP, IVZ, JBLU, MSCI, EDU, NTRS, NVS, NVR, PCAR, PEP, PII, BPOP, RTX, ROP, ST, SHW, SCL, TRU, UBS, UPS, VLO, and WM before the open.  Then after the close, ACCO, GOOGL, ASH, AGR, BHE, BYD, CNI, COF, CHX, CHE, CMG, CB, CSGP, EW, EQR, EXAS, FFIV, GM, GOOG, HA, IEX, JPNR, MTDR, MSFT, MKSI, MDLZ, NCR, RRC, RHI, RUSHA, SKX, TER, TX, and V report.

So far this morning, CNC, UPS, VLO, ADM, GE, PEP, MMM, UBS, DHI, SHW, WM, GLW, ATLKY, AVY, GPK, ROPST, JBLU, ALLE, SCL, ENTG, and ARCH have all posted beats on both revenue and earnings.  Meanwhile, RTX, NVS, CJPRY, and MSCI all missed on revenue while beating on earnings.  On the other side, IVZ and ARCC have reported beating the estimates on revenue but missed on the bottom line. Finally, NMR, PII, FANUY, and AWI all reported missed on both lines.

A huge surge of mostly good earnings leads the day’s news. That is saying something, considering that Russian Foreign Sec. Lavrov threatened the West to stop supporting Ukraine by telling an interview that the threat of the war in Ukraine escalating into a nuclear war was “very, very real.” Another wave of those earnings will hit after the close, with MSFT and GOOGL headlining that list. Despite the positive earnings news and even PEP raising its forward guidance, the premarkets look to be taking back much of Monday’s gains. The fear of spreading covid impacts from China (but hitting the global economy) is also weighing on the minds of longer-term investors, which is a headwind for bullish traders. However, remember that both intraday reversals have been the norm for a while now. So, respect that fact and continue to be cautious. Don’t be in a hurry to chase gaps and early moves. It is better to give up a little of the move than to have to suffer through reversal pains after you jump early.

Focus on the 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. Remember that the first rule of making big money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: VLO, SYY, TGT, JNJ, IBM, GPRO, PSTG, KSS, PEP. 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 Bears remained in control all day long Friday as the 3 major indices sold off steadily the entire session.  This gave us huge, ugly, black candles across the board.  However, it also saw all 3 of those indices pull far away from their T-lines. So, they are extended. On the day, SPY lost 2.74%, DIA lost 2.71%, and QQQ lost 2.62%.  The VXX rose more than 5% to 26.15 and T2122 dropped well into the oversold territory to 6.63.  10-year bond yields close down slightly to 2.904% and Oil (WTI) fell almost 2% to $101.75/barrel. 

On the Fed watch, on Friday Cleveland Fed President Mester said that she is in favor of raising rates 50-basis-points in May and perhaps doing this a few times this year.  She called her preferred approach “methodical.” However, she also said she would not go further than half a percent, saying she was not in favor of 75-basis-point moves to shock the economy as a way to slow inflation.  Finally, she said she’d like to see the Fed Funds Rate reach 2.5% by year-end, which she felt would be neutral. This opinion splits the “year-end neutral rate” calls by Bullard (3.5%), Bostic (1.75%), and Evans (2.25%) from earlier last week.

On Sunday, the Wall Street Journal reported that the board of TWTR is taking another look at Elon Musk’s $43 billion takeover bid.  The paper reported that the company is more likely to negotiate since he announced he had raised 3.5 billion more in funding than his initial bid.  Since Musk made the bid, TWTR has risen more than one percent. TWTR is up 4.5% in premarket on the Sunday news. Probably, but not necessarily unrelated to this story, Musk received 25.3 million TSLA stock options last week (worth about $23 billion considering the exercise price) and will receive another TSLA 8.4 million options this week (as the last traunch of his 2018 compensation package).  So, if he had the cash to pay the taxes, he could exercise and sell those options for enough to pay cash for 75% of his TWTR bid just from those proceeds, if he chose to do so.

SNAP Case Study | Actual Trade

Today another AMZN facility in NY will be voting on unionizing.  Elsewhere, the Shanghai area reported a record number of Covid deaths on Sunday (still only 40). The local provincial government announced 9 new ways it plans to get to “zero covid” by adding more restrictions starting this week.  However, AAPL’s largest iPhone production facility, which is located in the city (run by supplier Foxconn) remains open despite the region’s Covid lockdown.  Foxconn received special permission to keep their employees living on-site by having their employees designated “key employees” for the region.

Major economic news later this week includes Mar. Durable Goods Orders, Conf. Board Consumer Confidence, Mar. New Home Sales on Tuesday.  Then on Wednesday, we get Mar. Trade Balance, Retail Inventories, Mar. Pending Home Sales, and Crude Oil Inventories.  On Thursday we see Q1 GDP and Weekly Initial Jobless Claims.  Finally, on Friday we get Mar. PCE Price Index, Q1 Employment Cost, Mar. Personal Spending, Chicago PMI, and Mich. Consumer Sentiment.

Major Earnings coming later this week include MMM, GOOG, ADM, AVY, COF, CMG, GLW, FFIV, GE, GM, JNPR, MSFT, MDLZ, PEP, RTX, SHW, TXN, UPS, VLO, V, and WM on Tuesday.  Then Wednesday we get ADP, AFL, AMGN, BA, BSX, DFS, F, GD, HES, HUM, KHC, LVS, FB, NSC, PYPL, QCOM, RJF, STX, TMUS, TDY, URI, and WAB. On Thursday, MO, AMZN, AEP, AAPL, BIDU, BAX, CAT, CE, CHD, CMCSA, DPZ, EMN, LLY, GILD, HIG, HSY, IP, IRM, KDP, KLAC, MA, MCD, NOC, PHM, SO, SWK, TROW, TXT, TMO, VRSN, and GWW report.  Finally, on Friday we get reports from ABBV, AZN, BMY, CBOE, CHTR, CVX, CL, XOM, HON, LHX, LYB, NWL, PSX, and WY.

Overnight, the Asian markets were deeply red across the board.  China in particular got crushed by the covid news as Shenzhen (-6.08%), Shanghai (-5.13%), Hong Kong (-3.73%), and Taiwan (-2.37%) led the region lower.  In Europe, we see the same thing taking shape, with the lone outlier of Greece (+0.96%), at mid-day.  The FTSE (-2.07%), DAX (-1.68%), and CAC (-2.16%) are leading the region lower in early afternoon trading despite the market-friendly win in the French Presidential election Sunday by Macron.  As of 7:30 am, US Futures are pointing toward a gap lower at the start of the day.  The DIA implies a -0.84% open, the SPY is implying a -0.97% open, and the QQQ implies a -1.06% open at this hour.  10-year bond yields are down sharply to 2.831% and Oil (WTI) is off more than 4% to $97.81/barrel in early trading.

There is no major economic news scheduled for release on Monday.  Major earnings reports scheduled for the day include ATVI, KO, LII, and OTIS before the open.  Then after the close, AMP, AXTA, BRO, CDNS, CR, CCK, OI, PKG, SBAC, UHS, WRB, WHR, and ZION report.

So far this morning, KO, LII, as well as a number of ADRs (RHHBY, HYMTF, HYMLY, CWQXY) have all reported beating the estimates on both the top and bottom lines. Meanwhile, OTIS has missed on revenue while beating on earnings. 

The fear of spreading covid disease and restrictions hitting the global economy (as mentioned here last week) is rocking the boat for the bulls and giving the bears strength to follow through on a down month for markets. So, US Markets are looking like they will follow Asia and Europe lower at least early today. Remember that both intraday volatility and day-to-day chop have been the norm for a while now. So, respect that fact and continue to be cautious. Don’t be in a hurry to chase gaps lower in the first few minutes of the day. Swing trading is not about catching every cent of a move. It’s about taking your slice out of the middle of a swing.

Focus on the 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. Remember that the first rule of making big money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: NXPI, C, LEN, ORCL, INTC, MSFT, LOW, EBAY, SHW, RWM, SDS, SQQQ, UVXY, TWTR. 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 bears sprang a Bull Trap on Thursday morning.  All 3 major indices gapped higher at the open, only to immediately begin a strong all-day selloff that took them out on the lows.  This left us with large, ugly, black candles in all three indices, including a Bearish Engulfing candle in the DIA and something that approximates a Bearish Evening Star in the SPY.  Both the SPY and QQQ failed their T-lines, while the DIA is now at that level and ready to retest.  On the day, SPY lost 1.50%, DIA lost 1.09%, and QQQ lost 2.07%.  The VXX rose almost 2% to 24.86 and T2122 fell back to just outside the oversold territory at 24.27.  10-year bond yields spiked back to 2.91% and Oil (WTI) rose almost 1.9% to $104.09/barrel.  It is worth noting that the 5yr vs. 30yr bond yields have inverted again.

On the Fed watch, during the day Fed Chair Powell spoke twice.  To nobody’s surprise, he said that taming inflation was absolutely essential as was restoring price stability (which I thought were the same thing).  He committed to “raising rates expeditiously.”  Then he went on to say that he thinks a 50-basis-point hike is on the table for May, which matches the Futures bets showing a 98% chance of a half-percent hike at that meeting.

SNAP Case Study | Actual Trade

In business news, the fight between Florida Republicans and DIS ratcheted up Thursday.  The state dissolved the DIS special district as of June 1, 2023.  This would eliminate certain special privileges DIS has had, such as having their own zoning authority and deciding their own infrastructure projects.  However, the move would also transfer somewhere around $1 billion in debt to the two counties that would take over responsibility for the district area.  This likely means a series of lawsuits will follow.  Elsewhere, GPS announced that the CEO of their Old Navy division is leaving the company this week, fired over “execution challenges.”  Finally, FB COO Sandberg is under investigation for pressuring a UK tabloid news outlet to bury a report about her boyfriend (ATVI CEO Kotnick) being under a restraining order filed by another woman.  This pressure happened on two separate occasions, three years apart.

Elon Musk said he has lined up $46.5 billion to finance his takeover of Twitter.  This does not affect his offer of $54.20/share.  However, it is notable because just last week a judge ruled that he lied about the same thing (and was fined $20 million for stock manipulation by the SEC as well as paying TSLA stock owners $40 million over fraud claims) when he tweeted he had financing in place to take TSLA private in 2018.  As far as the current bid for TWTR is concerned, as reported last weekend, the TWTR Board has already implemented a “poison pill” defense in case Musk was able to amass 15% or more of the shares of the company.

After the close, PPG, UFPI, WAL, and SIVB all reported beating on revenue and earnings.  Meanwhile, FE and ISRG reported beats on revenue while coming up short on earnings.   However, SNAP and SAM both missed on the top and bottom lines.

Overnight, the Asian markets were mixed, but leaned heavily to the downside as the Chinese Yuan hit a new one-year low.  Japan (-1.63%), Australia (-1.57%), and India (-1.27%) paced the losses.  Meanwhile, only Singapore (+0.38%), Shanghai (+0.23%), and Malaysia (+0.23%) managed any green.  In Europe, stocks are red across the board at mid-day.  The FTSE (-0.74%), DAX (-1.83%), and CAC (-1.55%) are typical of the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a slightly lower start to the day.  The DIA implies a -0.22% open, the SPY is implying a -0.14% open, and the QQQ implies a +0.01% open at this hour.  10-year bond yields are up again to 2.938% and Oil (WTI) is off 1.5% to $102.25/barrel in early trading.

The major economic news scheduled for release on Friday is limited to Mfg. PMI and Services PMI (both at 9:45 am).  Major earnings reports scheduled for the day include AXP, ALV, CLF, HCA, KMB, NEM, RF, SAP, SLB, and VZ before the open.  There are no major reports scheduled for after the close.

So far this morning, AXP, VZ, KMB, RF, SLB, and CLF have all reported beating the estimates on both the top and bottom lines. Meanwhile, SAP, HCA, and VLVLY (Volvo) have missed on earnings while beating on revenue.  However, NEM and ALV have both reported misses on both lines.

Markets are limping toward the weekend and look to open lower as the SPY tries to avoid another down week. Remember that both intraday volatility and day-to-day chop have been the norm for a while now. So, respect that fact and continue to be cautious. Don’t be in a hurry to chase into a rally the first few minutes of the day. Swing trading is not about catching every cent of a move. It’s about taking your slice out of the middle of a swing. Finally, keep in mind that it is Friday and you need to prepare for the weekend news cycle.

Remember that the first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint. So, focus on the 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 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