US Markets followed the world higher with a 1%-1.30% gap higher at the open Wednesday.  However, from that point onward it was a meandering grind sideways with a very slight bullish trend, which saw all 3 major indices close near their highs of the day.  This left us with gap-up white candles in the SPY and QQQ as well as a gap-up white Doji in the DIA.  On the day, SPY gained 1.41%, DIA gained 0.85%, and QQQ gained 2.12%.  The VXX fell 4% to 18.71 and T2122 rose into the overbought territory at 86.02.  10-year bond yields fell slightly on the day to 1.949% and Oil (WTI) rebounded two-thirds of a percent to $89.98/barrel.

SNAP Case Study | Actual Trade

After the close Wednesday, DIS made a huge splash by reporting double the expected earnings on more than $3 billion higher than forecast revenue.  In particular, Disney+ subscriptions and Disney Parks came roaring back to boost profits.  In other earnings news after hours, TM, UBER, MGM, MOH, TWLO, MAT, SONO, PAGP, STC, RE, and LRLCY all reported beats on both lines.  Meanwhile, MSI and DCP beat on earnings but also reported misses on revenue.  On the other side, IFF, SGEN, UHAL, PAA, BKH, and USX missed on earnings, but beat on revenue.  The losers were ZNGA, IRBT, and LUMN who all missed on both lines.

So far this morning, earnings have been pretty strong.  BG, CDW, CVS, HMC, TM, EQNR, PFGC, PAG, LAD, ICL, REYN, and ARCC all reported beats on both lines.  YUM and TRMB missed on earnings, but beat on revenue.   So far this morning, KO, PEP, PM, LIN, LH, MLM, IPG, GPN, ZBRA, and TPR have all posted beats on both lines.  FE beat on earnings but came in significantly short on revenue.  Meanwhile, MCO, KIM, and HII beat on revenue but missed on earnings.  DUK and TWTR reported misses on both lines.  Of particular note among these reports is that KO revenue was up 10% and despite their miss, TWTR authorized a $4 billion buyback program. Finally, despite beating on both lines PEP warned of cost pressures potentially impacting future results.

Overnight, the Asian markets were mixed but leaned toward the upside.  Shenzhen (-0.73%) was the only appreciable loser while Malaysia (+1.20%), Taiwan (+1.03%), and India (+0.81%) led the gainers.  In Europe, stocks are mixed on modest moves at mid-day.  The FTSE (+0.21%), DAX (+0.38%), and CAC (-0.05%) are fairly typical of the continent, with some smaller exchanges showing losses of closer to half of a percent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA implies a +0.12% open, the SPY is implying a -0.07% open, and the QQQ implies a -0.12% open at this hour.  10-year bond yields are trading lower to 1.93% and Oil (WTI) is up almost 1% in early trading.

The major economic news scheduled for release Thursday includes Jan. CPI and Weekly Initial Jobless Claims (both at 8:30 am) as well as Jan. Federal Budget Balance (2 pm).  Major earnings reports scheduled for before the market include MT, AZN, GOOS, KO, CIGI, DBD, FAF, FMCC, GPN, GPI, HRI, HII, NSIT, IPG, K, LH, LCII, LECO, LIN, MLM, MCO, PATK, PBF, BTU, PEP, PCG, PIPR, SON, TPR, TU, TWTR, WSO, and ZBRA.  Then after the close, ASTL, EQH, BIO, BHF, ELY, CSL, CC, DVA, DXCM, EXPE, FE, FLO, GDDY, ILMN, NSP, ITUB, MTD, RSG, SSNC, TEX, WU, Z, and ZG report.

The premarket action looks like traders are thinking an inside day (rest) might be in order after yesterday’s big gap up and hold. However, there has been a lot of great earnings news since the close yesterday. So, the bulls have a tailwind. With that said, more inflation data at 8:30 am is likely to remind many that the Fed will be tightening (and that may embolden the bears a bit). Regardless, don’t get caught trying to outguess the market. Follow either way the market wants to lead. Stay nimble and/or hedged to volatility and remember we have overhead resistance that still needs to be worked through.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: CHD, SPLK, PLUG, XLE, AAPL, ZLAB, NTCO. 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 bulls did a good job on a volatile day Tuesday, especially in cyclicals and small-caps.  After a dead flat open and sideways first hour, there was a late morning and then last-hour rally taking us out near the highs on all 3 major indices.  It was definitely a “risk-on” day with the IWM (+1.68%) outperforming all 3 of the major indices.  This left us with a Bullish Engulfing candle in both the SPY and QQQ as well as a 2-Star Morning Star in the DIA.  On the day, SPY gained 0.80%, DIA gained 1.04%, and QQQ gained 1.13%.  The VXX fell 4.5% on the day to 19.50 and T2122 remains in the mid-range at 69.70.  10-year bond yields rose sharply again to 1.961% and Oil (WTI) lost 1.77% to $89.70/barrel.

After the close, XPO, CCK, FLT, GFS, PAYC, NCR, HUBG, OMC, JKHY, SCSC, LYFT, SAVE, and ENPH beat on both lines.  Meanwhile, CMG, ATO, and AIZ beat on earnings but came in light on revenue.  YUMC missed on both lines as costs and the impact of Covid double-teamed the Chinese version of the restaurants.

So far this morning, earnings have been pretty strong.  BG, CDW, CVS, HMC, TM, EQNR, PFGC, PAG, LAD, ICL, REYN, and ARCC all reported beats on both lines.  YUM and TRMB missed on earnings, but beat on revenue.  Meanwhile, CME, and IIVI missed on revenue, but beat on earnings.  Only AVYA has reported a miss on both lines as of 7:40 am.

In miscellaneous business news, Ashwani Gupta the COO of Nissan, told CNBC-Europe that his company is focused on having 50% of vehicles produced be electric by 2025. This is similar to the 2021 claims made by BMW to be 50% electric by 2030 and by Volvo to be fully electric by 2030.  Gupta said it is the new “Euro 7” emissions rules taking force in 2025 (and the cost of compliance with them) that will essentially make internal combustion engine vehicles unviable for both car manufacturers and consumers longer-term.  (While Europe is a huge auto market, the rest of the world following Europe’s lead is truly the problem for traditional automakers.  The fear is that if the US were to follow Europe’s lead on emission standards, which our political interests have always fought, the internal combustion engine market would simply end almost immediately.)

Overnight, the Asian markets were green across the board.  Hong Kong (+2.06%), Shenzhen (+1.54%), and Japan (+1.08%) led the way and were typical of the region.  In Europe, we see the same thing as of mid-day.  The FTSE (+0.74%) lags, but the DAX (+1.63%) and CAC (+1.48%) are typical, with some of the smaller exchanges being up more than 2% in early afternoon trading.  As of 7:30 am, US Futures point toward a gap higher.  The DIA implies a +0.61% open, the SPY is implying a +0.85% open, and the QQQ implies a +1.21% open at this hour.  10-year bond yields have dropped to 1.927% and Oil (WTI) is off a third of a percent in early trading.

The major economic news scheduled for release Wednesday is limited to Crude Oil Inventories (10:30) and the WASDE Report (noon).  However, there are also 2 Fed speakers (Bowman at 10:30 and Mester at noon).  Major earnings reports scheduled for before the market include AVYA, BDC, BG, CDW, CHEF, CME, CVS, EGNR, FOX, FOXA, HMC, IIVI, LAD, MSGE, PAG, PFGC, REYN, TEVA, TM, and YUM.  Then after the close, UHAL, AFG, ACGL, ASGN, CHX, CPA, CXW, DCP, ENS, ENSG, NVST, EQT, EFX, RE, IFF, ITT, LUMN, MAT, MDU, MGM, MOH, MSI, NGL, ORLY, PPC, PAA, SONO, STC, TTMI, TWLO, USX, UBER, DIS, and ZNGA report.

It looks like markets are going to try to complete daily J-hooks in all 3 major indices, at least in the premarket. With limited planned economic news today and generally strong morning earnings, the bulls have all the momentum at the opening bell. However, volatility and fear of rate hikes did not disappear overnight. So, don’t assume this is the start of an unending bull run. Just stay aware and remain nimble and/or hedged to volatility.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: PENN, MRVL, VIPS, LUV, V, CHGG, WOOF, BBBY. 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 put in another choppy, indecisive day Monday with the biggest moves of the day being a slow mid-afternoon rally and then a sharp selloff the last 30 minutes of the day.  This left us with a black Doji in the DIA, a black Spinning Top in the SPY, and a black-bodied candle with plenty of wicks in the QQQ.  Of the major indices, only DIA was able to hold above its T-line (barely).  On the day, SPY lost 0.33%, DIA gained 0.01%, and QQQ lost 0.80%.  The VXX fell to 20.42 and T2122 remains in the mid-range at 54.29.  10-year bond yields rose slightly to 1.921% and Oil (WTI) fell almost a percent to $91.41/barrel.

After the close Monday, LEG, SPG, TFII, TINLY, and CNXN all beat on both lines.  However, NUAN, FUJHY, RMBS, and KE all missed on both lines.  Meanwhile, AMGN, TTWO, ACM, THC, and TDC all beat on earnings while missing on revenue.  There were no major reports last evening that missed on earnings while beating on revenue. Overnight, SoftBank announced they intend to take ARM public via IPO after the sale to NVDA was killed by regulatory concerns over past monopolistic behavior.

So far this morning, SPGI, CNC, IT, CARR, and DD have all reported beats on both lines.  On the opposite side, TDG and J reported misses on both lines.  Meanwhile, PFE, KKR, WTW, and FISV beat on earnings but came in short of estimates on revenue.  At the same time, INCY, TRI, and MAS missed on earnings but reported beats on revenue.  However, the big morning report came from PTON, which missed on earnings (larger than expected loss), replaced their CEO with the CFO from NFLX (which puts a damper on potential sale rumors), announced a 20% reduction in headcount (2,800 jobs), and lowered guidance for the year by 18%. It is also worth noting that PTON was not scheduled to report until after the close, but pulled their announcement forward unexpectedly to head off leaks of their leadership changes and staff, and capital spending plan cuts. Their conference call is now at 8:30 am.

Overnight, the Asian markets were mixed again.  Hong Kong (-1.02%) and Shenzhen (-0.98%) were the only appreciable losers, while Australia (+1.07%) and Singapore (+1.05%) led the rest of the region higher.  Stocks are also mixed in Europe at mid-day.  The FTSE (+0.04%), DAX (-0.16%), and CAC (0.24%) all show indecision while many of the smaller exchanges are leaning harder to the downside in early afternoon trading.  With that said, Russia (+1.74%) is bucking the trend and is an outlier to the upside.  As of 7:30 am, US Futures are pointing toward a modestly lower open.  The DIA implies a -0.03% open, the SPY is implying a -0.25% open, and the QQQ implies a -0.46% open at this hour.  10-year bond yields are higher again to 1.947% and Oil (WTI) is down 2% in early trading.

The major economic news scheduled for release Tuesday is limited to Dec. Imports, Dec. Exports, and Dec. Trade Balance (all at 8:30 am).  Major earnings reports scheduled for before the market include AGCO, ARMK, AVNT, BP, CARR, CVE, CNC, COTY, DD, FISV, IT, HOG, HLI, INCY, J, KKR, LEA, MAS, NVT, OUTKY, PFE, SPGI, SYY, TMHC, TRI, VSH, WMG, and WTW.  Then after the close, AMRK, AMX, AIZ, ATO, CMG, CNO, CRSR, CCK, FLT, FMC, GFS, HUBG, JKHY, LBRT, NBR, NCR, OMC, PTON, SCSC, STE, TRMB, TSE, VVV, VOYA, XPO, and YUMC report.

It looks like the bears may try to test the lows of the 4-day range from the recent consolidation. All 3 major indices are trading below their T-lines in the premarket. With very limited planned economic news today, keep a close eye on the market’s reaction (selling/rotation) to inflation and the Fed. Yesterday, BAC doubled down on its forecast that there will be 7 rate hikes this year (which is one more than is already priced into futures and more than double what the Fed has said will be likely). This sort of news really puts the fear of God in markets that have not seen a tightening cycle in a long, long time. Just be aware of this and remain nimble and/or hedged to volatility.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: CTSH, QID, WY, BK, SDS, PENN, ON. 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

For the second straight day, markets got unexpectedly strong economic data before the open Friday.  However, they largely ignored the January Payrolls number coming in well over 300k jobs more than expected added as well as larger than expected average hourly earnings.  Stocks went on a wild roller-coaster ride, opening more or less flat, swinging down a percent in the morning, swinging up 2% mid-day, and ending the day on a sharp 1% selloff the last half hour of the day.  This all left us with long-legged, Spinning Top type candles that showed great indecision in all 3 major indices.  On the day, SPY gained 0.47%, DIA lost 0.03%, and QQQ gained 1.26%.  VXX fell to 21.00 and T2122 fell slightly to 27.16.  10-year bond yields spiked again to 1.916% and Oil (WTI) rose almost 2% to $91.92/barrel.

Right before the close on Friday, Bloomberg reported that AAPL will be launching lower-end versions of their iPhone and iPad products.  The report claims the new iPhone SE would have the same design, but a faster processor than the current models, but would sell at a 45% discount to the current flagship model.  The same thing is true of the new iPad offering (45% discount from their current model).  Both products are expected to be announced on March 8.

After hours, PTON stock shot as much as 35% higher after the Wall Street Journal reported that AMZN has approached the company about a potential acquisition of the stationary bike maker.  However, the WSJ also reported that no deal was imminent and that there are other potential buyers considering making an offer for the company behind the beaten-down stock.

Over the weekend, the two largest US discount airlines (ULCC and SAVE) agreed to merge.  The $6.6 billion merger would create the fifth-largest US airline.  Denver-based Frontier (ULCC) would be the senior partner by 51.5 to Frontier’s (SAVE) 48.5 percent, with its current Chairman becoming the Chair of the combined entity.  No CEO has been determined yet and of course, the deal is subject to regulatory approval. However, since the combined company would still only be number 5 in the US and the current airlines serve largely different routes, no major hurdles are expected.

Overnight, the Asian markets that were open were mixed.  (All Chinese markets are closed until Feb. 4th or 5^th).  Overnight, the Asian markets (now back from the holidays) were mixed but mostly green.  Shanghai (+2.03%), Taiwan (+1.28%), and Shenzhen (+0.96%) led the gainers.  Meanwhile, India (-1.73%) and Japan (-0.70%) paced the losses.  In Europe, stocks lean to the upside at mid-day.  The FTSE (+0.46%), DAX (+0.42%), and CAC (+0.15%) are fairly typical of the continent in early afternoon trading.  However, there are 5 exchanges in the red, led by outlier FTSE MIB (-1.07%).  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA implies a dead flat open, the SPY is implying a +0.07% open, and the QQQ implies a +0.17% open at this point.  10-year bond yields are up to 1.925% and Oil (WTI) is down three-quarters of a percent in early trading.

There is no major economic news scheduled for release Monday.  Major earnings reports scheduled for before the market include AMG, CAN, DKILY, ENR, GTES, HAS, ON, IX, TSN, and ZBH.  Then after the close, ACM, AMGN, BAP, KMT, LEG, CNXN, PFG, SPG, TTWO, TDC, and TFII report.  

The premarket futures action looks to be indecisive around the top end of the Thursday-Friday range, with the bulls trying to build on the second small positive week in a row amidst an otherwise volatile and rough start to the year. The is no planned economic news today, but markets will keep a close eye on inflation and even more importantly, the Fed’s response to it. (Bloomberg reported this weekend that the futures have priced six rate hikes in 2022 into the market. This is significantly more than even the worst-case predicted by big banks and twice what the Fed has said they expect.) The point is, the market is in overreact mode to any potential moves by the Fed. Just be aware of this and remain nimble and/or hedged to volatility.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: BITO, HOOD, VMW, BBBY, MCD, IBM. 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 down hard in the SPY and QQQ, DIA only opened 0.35% lower on FB earnings knee-jerk reaction.  However, that was just the beginning of a volatile, roller-coaster ride downward that ended near the lows in all 3 major indices.  This left us with large black, gap-down candles with more upper wick than lower in all 3 of those indices.  On the day, SPY lost 2.32%, DIA lost 1.42%, and QQQ lost a massive 4.01%.  Both the SPY and QQQ fell through their T-lines, but the DIA was able to hold above its own 8ema.  The VXX spiked over 12% to 21.76 and T2122 dropped to 29.63.  10-year bond yields spiked to 1.831% and Oil (WTI) jumped over 2% to $90.12 (the highest price since 2014).

The market got some good economic news Thursday.  Jobless claims came in below forecast.  However, the big economic news was that Q4 Productivity came in twice what was expected (+6.6% vs. +3.2% est.) at the same time Q4 Unit Labor Cost rose only one-fifth as much as expected (+0.3% vs. +1.5% forecast).  Even January Services and ISM Services PMIs both beat forecast.  Unfortunately for bulls, that was all ignored by the market as all eyes seem to have been on FB and what their “miss and lower” would do to the rest of the big tech names.  By day end, FB was down more than 26%, dragging down TWTR (-5.56%), NFLX (-5.54%), MSFT (-3.86%), and even GOOG (-3.64%) with them.

After the close, ATVI and F reported misses on both lines while MCHP, HIG, NLOK, PRU, SNAP, SWKS, and FTNT all reported beats on both lines.  At the same time, CLX missed on earnings, but beat on revenue.  However, the most anticipated report was AMZN, which beat on earnings, but missed on revenue.  Nonetheless, it soared 19% in post-market trading on news of a Prime service price hike.  SNAP was up more than 60% on its first-ever quarterly profit. 

After hours, Reuters reported the Brazilian expected soybean harvest will be down significantly.  The Brazilian soybean forecast was reported down 14% versus forecast and this shortfall (20 million metric tons) does not factor in other South American crop shortfalls.  (These other shortfalls are expected due to poor weather in Argentina during the growing season.)  This news will likely drive US Soybean prices higher, impacting both animal and human food prices. So far this morning, REGN, APD, and CBOE have reported beats on both lines.  ETN, AON, and BMY have reported earnings beats, but all 3 missed on revenue.  RCL has not reported yet.

Overnight, the Asian markets that were open were mixed.  (All Chinese markets are closed until Feb. 4th or 5^th).  Singapore (+2.04%) and South Korea (+1.67% on its first day back from holiday break) led the gainers.  Japan (-Overnight, the Asian markets that were open were mixed.  Hong Kong reopened after the Lunar New Year holiday and played catchup, spiking 3.24%.  (Shanghai and Shenzhen are still closed.)  Beyond those, South Korea (+1.57%) led the gainers with most of the losses being in smaller markets and less than half of a percent.  In Europe, markets are mostly in the red at mid-day.  The FTSE (-0.10%) is an outlier, but the DAX (-1.51%) and CAC (-0.83%) are typical of the region in early afternoon trading.  Only Russia (+1.31%) and Portugal (+0.48%) are showing green.  As of 7:30 am, US Futures are pointing toward a mixed open.  The DIA implies a -0.36% open, the SPY is implying a -0.02% flat open, and the QQQ implies a +0.53% open at this hour.  10-year bond yields are down slightly and Oil (WTI) is making another huge upside move of over 2% in early trading.

The major economic news scheduled for release Friday includes Jan. Avg. Hourly Earnings, Jan. Nonfarm Payrolls, Ja. Participation Rate, and Jan. Unemployment Rate (all at 8:30 am).  Major earnings reports scheduled for before the market include ADNT, APD, AON, BMY, BEPC, BEP, ETN, REGN, RCL, SNY, and SPB.  There are no reports scheduled for after the close.  

The mixed premarket futures indicate indecision, but all 3 of the indices are down significantly from premarket highs. This would tend to indicate the pullback will continue, but after such a brutal day Thursday, perhaps a pause is in order for the QQQ. Whipsaw action is likely in the face of indecision. So, be careful. Remember that today is Friday and there is a weekend news cycle ahead. So, take profits where you can, get small, hedged, or lighten up on Delta.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) 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 diverged at the open Wednesday, with the DIA flat, the SPY opening half of a percent higher and the QQQ gapping up 1.2%.  All 3 major indices then meandered sideways until noon.  However, at that point, we saw a market-wide slow, steady rally all the way into the close.  This left us with a white candle in the DIA, a white Spinning Top candle in the SPY, and a black Hanging Man candle in the QQQ.  On the day, DIA gained 0.59%, SPY gained 0.97%, and QQQ gained 0.81%.  The VXX fell another 2% to 19.42 and T2122 fell just outside of the overbought territory to 76.40.  10-year bond yields fell to 1.772% and Oil (WTI) closed very slightly lower to $88.02/barrel.

The economic news for the day was a massive miss on ADP Nonfarm Employment (-301k in January vs +207k expected).  Crude Oil Inventories also came in almost 50% below expectations at 1.046m barrel. This gives us the “double whammy” of fear about a slowing economy AND fear that energy prices will remain very high. 

After the close, QCOM, MET, CTCH, AFL, ALGN, MCK, AVB, MAA, ESS, HOLX, QRVO, and FBHS all beat on both lines.  However, FB, TMUS, and GL all missed on earnings while beating on revenue.  LNC posted a miss on both revenue and earnings.  The big news of this was the FB miss, where they missed on earnings and reported lower than expected forecasts for the remainder of the year.  As a result, FB was down 25% in post-market trading, dragging many of the tech giant names along with it.

So far this morning, TMO, WM, BSX, EMR, ROP, IDXX, ODFL, DHI, AVY, ABC, JCI, and MPC have all reported beats In Fed watch news, the Bank of England raised interest rates for a second straight meeting in a unanimous vote.  That was the first consecutive meeting hike in the UK since 2004.  This 25-basis-point move raises the UK bank rate to 0.50%.  The BOE also raised its inflation forecast to now expect a peak in April of 7.25% (from the 6% peak they had forecast in December), a massive jump.

Overnight, the Asian markets that were open were mixed.  (All Chinese markets are closed until Feb. 4th or 5^th).  Singapore (+2.04%) and South Korea (+1.67% on its first day back from holiday break) led the gainers.  Japan (-1.06%) was the biggest loser of the day.  In Europe, stocks are red across the board at mid-day.  The FTSE (-0.20%), DAX (-0.44%), and CAC (-0.23%) are all down, but it is the smaller exchanges that are leading the way lower with many down 1%-2% in early afternoon trading.  As of 7:30 am, US Futures are pointing to a divergent, but significant gap lower.  The DIA implies only a -0.22% open, the SPY is implying a 1.07% open, and the QQQ implies a -2.24% open in what appears to be a major rotation to the safety of mega-cap harbors.  10-year bond yields are up to 1.798% and Oil (WTI) is down 1.38% in early trading (perhaps in reaction to OPEC’s decision to hike production by 400k barrels per day.

The only major economic news scheduled for release Wednesday are ADP Nonfarm Employment (8:15 am) and The major economic news scheduled for release Thursday includes Q4 Nonfarm Productivity, Q4 Unit Labor Costs, and Weekly Initial Jobless Claims (all at 8:30 am), Jan Service PMI (9:45 am), Dec. Factory Orders and Jan. ISM Non-Mfg. PMI (both at 10 am).  Major earnings reports scheduled for before the market include ABB, ABMD, WMS, AME, APTV, ARW, BSAC, BCE, BDX, BERY, BIIB, BV, CAH, CG, CHKP, CI, CMS, COP, CMI, LLY, EL, HAIN, HBI, HSY, HON, HUBB, ITW, INGR, ICE, JHG, LAZ, MKL, MMS, MRK, MTOR, NOK, PH, PENN, DGX, RL, SNDR, SNA, TKR, VSAT, VSTO, GWW, WEC, WRK, and WRK.  Then after the close, ATVI, AMZN, AVTR, BECN, BHE, BYD, CLX, COLM, DECK, F, FTNT, FTV, HIG, LPLA, MCHP, NFG, NLOK, NOV, OTEX, PFSI, PINS, POST, PRU, RGA, SKX, SKYW, SWKS, SNAP, and WERN report.

The (relief ?) rally looks to be facing pressure this morning as traders panic in light of FB missing badly on both results and revenue forecasts. The large divergence in premarket moves by the various indices shows clear signs of a rotation. However, overnight rotations can often lead to whipsaw action as late risers try to chase and the premarket traders have second thoughts. In addition, the recent strong rally is in need of the relief of either a pullback or consolidation. So, be careful. Volatility is likely today.

Stick to your trading rules and manage the things that you can control. 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 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. (That’s why we set stops in the first place.) Trading is a marathon, not a sprint.

Ed

Swing Trade Ideas for your consideration and watchlist: GME, AMD, BAC, KO. 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