Markets opened basically flat on Thursday and then sold off the rest of the day.  This resulted in black, Bearish Engulfing candles and Oreo Cookie patterns in the SPY and QQQ, with DIA putting in a black candle with all 3 closing on the lows of the day.  On the day, SPY lost 1.25%, DIA lost 0.43%, and QQQ lost 2.29%.  The VXX rose to 24.99 and T2122 dropped to right in the middle at 50.67.  The 10-year bond yields spiked again to 2.827% and Oil (WTI) rose more than 2% to $106.44/barrel.

On Friday, we got some positive economic news.  The NY Empire State Mfg. Index came in above expectations.  The same was true of March Industrial Production, which came in almost double the forecast value (+0.9% vs 0.4% forecast).

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Related to Elon Musk’s hostile TWTR takeover bid, the stock traded in a volatile way Thursday, but never got even close to the offered $54.20/share.  It actually closed down 1.68% to $45.08.  This seems to imply that the market does not believe the deal will ever happen.  Friday, a couple of analysts downgraded the stock as now “being in the middle in an Elon circus.”  Also on Friday, a Saudi Prince offered to match Musk’s deal and buy the company at the same price (perhaps offering a more palatable buyer).  However, late in the day TWTR board unanimously passed a “poison pill” policy.  This means if anybody acquires 15% of company stock without board approval, then other TWTR holders will be allowed to buy additional shares at a deep discount.  This would flood the market with shares of TWTR, driving down the price and making a takeover much harder, slower, and more expensive.     

So far this morning, BAC and SYF have both reported beating on both lines.  At the same time, BK printed a beat on revenue while reporting in-line earnings.  However, we should note that BK’s in-line report was still down 11.3% from the prior quarter.

On the Russian invasion story, Russia is continuing to fire missiles at major Ukrainian cities like Karkhiv, Kiyv, and Lviv. Meanwhile, Ukrainian resistance continues to hold out in the last stronghold of the destroyed city of Mariupol. The Russian Donbas offensive is underway with heavy fighting in the town of Kreminna, which is located Southeast of Karkhiv in the Luhansk region. On the economic side, Ukraine has submitted its application questionnaire to join the EU. More importantly, many analysts are now saying that renewed aid is desperately needed as Ukraine is in need of more heavy weapons and, in particular, more ammunition to maintain its fight in the face of the massive Russian assault. So, look for more aid to be coming from NATO countries and new orders to be placed in turn with companies like GD, WCHS, NOC, and RTX.

Overnight, the Asian markets were mixed but leaned to the red side.  India (-1.73%), Japan (-1.08%), and Singapore (-0.98%) paced the losses.  Meanwhile, Hong Kong (+0.67%), Australia (+0.59%), and Shenzhen (+0.37%) led the gainers.  In Europe, stocks are also mixed, but in this case, lean to the upside at mid-day.  The FTSE (+0.47%), DAX (+0.62%), and CAC (+0.72%) lead as usual while Russia (-1.76%) is an outlier to the downside in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly lower start to the day.  The DIA implies a -0.12% open, the SPY is implying a -0.26% open, and the QQQ implies a -0.33% open at this hour.  10-year bond yields are up again to 2.837% and Oil (WTI) is down fractionally in early trading.

The major economic news scheduled for release on Monday is limited to a Fed speaker (Bullard at 4 pm).  Major earnings reports scheduled for the day include BAC, BK, SCHW, and SYF before the open.  Then after the close, JBHT reports.

In economic news later this week, on Tuesday we get March Building Permits and March Housing Starts.  Then Wednesday, we see March Existing Home Sales, Crude Oil Inventories, and Fed Beige Book will be released.  On Thursday, we get Initial Weekly Jobless Claims, Philly Fed Mfg. Index and Fed Chair Powell speaks.  Finally, on Friday we get Mfg. PMI and Services PMI.

Coming off the 3-day break, it was Elon Musk’s TWTR drama that maintained the spotlight all weekend. Yet, we also find ourselves at the start of another earnings season. And this quarter’s earnings may be more important than many recent quarters’ numbers (and especially guidance) as traders try to read through how well firms will be able to cope with the rising rates and fear of a hard landing. Recently, both major intraday and day-to-day reversals have been the rule. So, continue to be either being very nimble/quick, hedged, or have stops that are loose enough to ride out the whipsaw (and be ready to withstand that short-term pain). Trade carefully and position yourself for the long weekend news cycle.

Stick with those 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. 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.

Ed

Swing Trade Ideas for your consideration and watchlist: GPN, TWTR, VLO, IP, OXY, GPS, BP, HON, MMM, TGT, ZTS, EBAY, OTIS, AME, MAS, SHW, 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

Despite a record 11.2% Year-on-Year PPI report before the opening bell, stocks opened flat on Wednesday.  However, at that point, we started a slow, steady rally that lasted the rest of the day.  This left us with large white candles in all 3 major indices and the SPY and DIA both printing Bullish Engulfing candles.  On the day, SPY gained 1.15%, DIA gained 1.03%, and QQQ gained 2.03%.  The VXX fell 4.5% to 24.59 and T2122 shot back up to close just outside the overbought territory at 75.61.  10-year bond yields fell slightly to 2.,701%, and Oil (WTI) gained 3.47% to $104.09/barrel.

AMZN announced Wednesday afternoon that they will be adding a 5% “fuel and inflation” surcharge to all sellers as of April 28 for all users of “Fulfillment By Amazon.”  The vast majority of sellers are expected to raise the price of goods sold through AMZN in response.  (89% of all AMZN sellers use FBA.)  AMZN said their fee amounts to 24 cents per package, which is less than the USP surcharge of 42 cents and the FDX surcharge of 49 cents.

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As if food inflation were not bad enough already, the US is suffering from an outbreak of the bird flu.  So far, 23 million chickens have died across 24 states.  Iowa seems to be the worst-hit state with over 13 million chickens culled in that state so far.  The last outbreak, in 2015, saw 50 million birds die over a six-month period.  So, this outbreak appears to be worse than the last outbreak.  The largest chicken-producer stocks are PPC, SAFM, and TSN, while the largest egg-producing stock is CALM.  Among the companies that consume the most chicken as inputs, we see SYY, HRL, PPC, and TSN. Second-level users of chicken and eggs include MCD, WEN, GIS, and KHC.

In earnings news, so far this morning ALLY, GS, MS, STT, TSM, UNH, and USB have all reported beats on both the revenue and earnings lines.  Meanwhile, RAD beat on revenue, but missed on earnings.  On the other side, PNC and WFC both missed on revenue while beating on earnings.  However, ERIC missed on both lines.

In other stock news, Elon Musk has launched a hostile takeover bid to take TWTR private.  Musk has offered $54.20/share (roughly $43 billion), which is a small 18% premium on Wednesday’s closing price of $45.85.  This move comes less than 24 hours after TWTR investors sued Musk for violating SEC rules and not disclosing he had taken more than a 5% stake in the stock without notifying the SEC within 10 days.  TWTR is wildly volatile in premarket, now at $48.88.

On the Russian invasion story, the Biden Administration confirmed another round of military assistance for Ukraine as reported here yesterday.  The $800 million package includes howitzer artillery, armored personnel carriers, 500 more Javelin missiles, and 300 more Switchblade Kamikaze Drones. Elsewhere, the major defense contractors met with Pentagon officials, who told them to ramp up production of weapons for Ukraine and to expect at least a 2-year war.  These include BA, LHX, RTX, LMT, HII, GD, and NOC.  Interestingly, India’s largest oil refiner has suddenly stopped buying Russian oil and the world’s largest oil trader (Vitol) announced it would also stop buying crude from Russia.  This may indicate they are bowing to pressure from the Biden Admin.

Overnight, the Asian markets were mixed.  Shenzhen (+1.27%), Shanghai (+1.22%), and Japan (+1.22%) led the gainers.  Meanwhile, the broad but modest losses were paced by Taiwan (-0.32%), India (-0.31%), and Thailand (-0.25%).  In Europe, stocks are mostly modestly green at mid-day.  The FTSE (+0.03%), DAX (+0.24%), and CAC (+0.52%) lead the way as usual in early afternoon trading. Russia (-2.16%) is an outlier to the downside for obvious reasons.  As of 7:30 am, US Futures are pointing toward an opening just on the green side of flat.  The DIA implies a +0.21% open, the SPY is implying a +0.04% open, and the QQQ implies a +0.08% open at this hour.  10-year bond yields are down slightly to 2.684% and Oil (WTI) is off eight-tenths of a percent to $103.24/barrel in early trading.

The major economic news scheduled for release on Thursday includes March Retail Sales, March Import/Export Indices, and Weekly Jobless Claims (all at 8:30 am), Feb. Bus. Inventories and Michigan Consumer Sentiment (both at 10 am), and a couple of Fed speakers (Mester at 3:50 pm and Harker at 6 pm).  Earnings season is back as ALLY, C, ERIC, GS, MS, PNC, PGR, RAD, STT, TSM, USB, UNH, and WFC all reporting before the open. There are no major earnings scheduled for after the close.

Also remember that US Markets are closed tomorrow for Good Friday, but we still get NY Empire State Mfg. Index and March Industrial Production numbers.  Also, Friday is Tax Day in the US.

There is a flurry of news to start off the last day of the week. The buzz in the premarket is over earnings and Musk’s TWTR buyout bid. It seemed like markets took the PPI number in stride yesterday, so perhaps the focus has shifted away from economic news and back to specific sectors and charts. With a 3-day holiday weekend ahead, don’t be surprised if volume dries up a bit today in the afternoon. Major intraday reversals have been the rule lately, so beware chasing anything at the open. Continue to be either being very nimble/quick, hedged, or have stops that are loose enough to ride out the whipsaw (and be ready to withstand that short-term pain). Trade carefully and position yourself for the long weekend news cycle.

Remember, earnings season is starting again (check those earnings dates) and also that markets are closed Friday (Good Friday). So, you don’t have to chase trades early this week. Stick to those 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. 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.

Ed

Swing Trade Ideas for your consideration and watchlist: NVCR, ZBH, DAL, CRSP, FSLR, LUV, CMCSA, DASH, ORCL, NEM, ERX. 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 higher at the open Tuesday, presumably on the fact that March CPI “only” came in at 8.5%.  There was even a little follow-through during the first half-hour of the day.  However, markets then rethought their position and this led to a steady selloff that lasted the entire rest of the day.  This left us with black candles with plenty of wicks at both ends in all 3 major indices.  On the day, SPY lost 0.37%, DIA lost 0.29%, and QQQ lost 0.42%.  The VXX also lost 1.4% to 25.74 and T2122 climbed a bit, but remains in the lower half of the mid-range at 39.32.  10-year bond yields fell back to 2.72% after being at a 3-year high early in the day. 

Tuesday also saw Oil (WTI) spike massively (over 7%) to $100.98 after being up “only 5%” most of the day.  This seemed to initially be related to lockdown easing in Shanghai leading traders to expect higher demand.  Yet, more talk of European sanctions on Russian oil and OPEC slashing the forecast for Russian oil exports led to fears about supply as well.  President Biden’s easing of maximum ethanol percentage regulations seemed to do little to impact either oil or gas prices, at least for the day.

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On the Russian invasion story, after-hours Reuters reported that the US will announce another $750 million in weapons aid for Ukraine today, including heavy ground artillery such as howitzer cannons.  Among the winners of contracts to resupply the US military will be RTX, LMT, RTN, BA, NOC, GD, and LHX who have all been invited to the Pentagon to discuss their capacity to supply Ukraine and refill American stockpiles.  Overnight, Sweden’s ruling party decided to back entry into NATO in a direct afront to Putin’s demands and threats.

So far this morning, DAL, FAST, and FRC have reported beats on both revenue and earnings.  JPM and BBBY both beat on revenue but missed on earnings.  JPM did so after taking over a $525 million hit from Russian sanctions and BBBY blamed supply chain woes (low inventories) for a poor holiday quarter.  Finally, BLK missed on revenue while reporting a massive beat on earnings ($9.52 actual vs. $8.92 est.).

Overnight, the Asian markets were mixed.  Japan (+1.93%), South Korea (+1.86%), and Taiwan (+1.83%) led the gainers.  Meanwhile, Shenzhen (-1.60%) and Shanghai (-0.82%) paced the losses.  In Europe, stocks are mostly red at mid-day.  The FTSE (+0.08%), DAX (-0.89%), and CAC (-0.51%) lead the way with only Norway (+1.62%) being a significant winner in early afternoon trading.  As of 7:30 am, US Futures are pointing to a green start to the day.  The DIA implies a +0.42% open, the SPY is implying a +0.51% open, and the QQQ implies a +0.67% open at this hour.  10-year bond yields are flat at 2.725% and Oil (WTI) is up almost 1.8% to $102.44/barrel in early trading.

The major economic news scheduled for release on Wednesday is limited to March PPI (8:30 am) and Oil Inventories (10:30 am).  However, earnings season kicks off in earnest today with these major earnings reports scheduled before the open, BBBY, BLK, DAL, FAST, FRC, INFY, JPM, and SJR.  There are no major earnings scheduled for after the close.

Everybody expects a very hot PPI number this morning, but as usual, it won’t be as hot as yesterday’s 8.5% CPI number. (Business always passes on more than the hit they take.) Yesterday’s number led to an initial gap up, but then a rethink. Will we get the same today? It’s hard to say, especially since we are starting back into earnings season and eyeballs will be focusing on the rearview mirror for a while, gauging the impact of Russian sanctions (on companies that shut Russian operations or lost business due to embargoes) and inflation. This will be even more evident in consumer names as markets try to read through “just how badly has consumer spending been hurt by rising prices.” We should still expect volatility (like yesterday morning’s big reversal) and be prepared. That means continuing to be either being very nimble/quick, being hedged, or having loose enough stops (and the ability to withstand short-term pain) to ride out the whipsaw action. Trade carefully and position yourself so that shocks in either direction don’t throw you into a panic.

Remember, earnings season is starting again (check those earnings dates) and also that markets are closed Friday (Good Friday). So, you don’t have to chase trades early this week. Stick to those 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. 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.

Ed

Swing Trade Ideas for your consideration and watchlist: EXR, MRO, SHEL, OXY, X, DRE, CF, KGC, FE, MDT, DVN, TWTR, ZBH, LULU, EOG, APA, FIS, XLU, CVX, ET. 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 Monday after bond yields spiked then managed to hang on for about an hour.  However, then a long, slow selloff took over that ran into the end of the day.  This left us with big, ugly, gap-down black candles that closed not far off the lows in all 3 major indices.  All 3 also managed to drop through their 50sma, although to be fair the DIA only fell about 50 cents below its 50sma.  On the Day, SPY lost 1.66%, DIA lost 1.18%, and QQQ lost 2.32% as money fled from the high-growth tech names.  The VXX rose almost 6% to 26.10 and T2122 fell toward the bottom of the mid-range to 26.60.  As mentioned, 10-year bond yields spiked to 2.771% while Oil (WTI) fell over 3.5% to $94.80/barrel.

During the afternoon, the Biden Admin. began preparing the public for a Consumer Price Index report that will show that “inflation is extraordinarily elevated.”  This will be a follow-up on February’s CPI coming in a 7.9%, which was the highest level recorded since January 1982.  The March CPI Index will come out this morning. In that same vein, the Biden Administration announced is set to allow fuel to contain a higher percentage of ethanol in an effort to reduce gas prices.

SNAP Case Study | Actual Trade

On the Russian invasion story, Russia defaulted on its foreign debt, because it offered to pay the bondholders in Rubles (held in a Russian bank account and not movable during sanctions).  However, it also became clear that limited/targeted sanctions were not having much strategic impact so far, although they may be hurting the Russian Mains Street.  It seems the rise in energy and food price spikes have greatly increased the value of Russian energy (Nat. Gas, Oil, and Coal) and Ag (Wheat) exports, while current sanctions have limited many imports.  The upshot of all this is that the Russian current-account surplus is the largest it has been since at least 1994 according to Bloomberg.  As a result, Russia added $3.4 billion to its war chest in the first quarter. On this news, Ukrainian President Zelensky again called for Western sanctions on Russian oil sales. Overnight, the WTO lowered its estimate of international trade growth from +4.7% to +3.0% due to the impacts of the Russian invasion.

On the ground, Russia began its renewed offensive in the Donbas overnight. The US and UK are investigating reports that Russians used chemical weapons in Mariupol on Monday. However, Russia vehemently denies the allegation.

Overnight, the Asian markets were mostly red, with the exception of mainland China.  Shenzhen (+2.05%), Shanghai (+1.46%), and Hong Kong (+0.52%) were the only green in the region.  Meanwhile, Japan (-1.81%), Singapore (-0.99%), and South Korea (-0.98%) paced broader losses.  The same is true in Europe, where stocks are mostly red at mid-day.  The FTSE (-0.43%), DAX (-0.93%), and CAC (-0.64%) are typical of the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat start to the day.  The DIA implies a -0.03% open, the SPY is implying a -0.03% open, and the QQQ implies a +0.02% open at this hour.  However, 10-year bond yields are on the move higher again to 2.792% and Oil (WTI) is up 4.1% to $98.14 in early trading.

The major economic news scheduled for release on Tuesday includes March CPI (8:30 am), 10-year Bond Auction (1 pm), and Federal Budget Balance (2 pm).  There is also a Fed speaker (Brainard at 12:10 pm).  The only major earnings reports scheduled for the day are ACI and KMX, both before the open.

The big CPI number is likely to drive at least the start of the day as markets are flat until the print at 8:30 am. What is harder to gauge is whether the expectations of an “extraordinarily high” number are already baked into the market (resulting in a muted response) or whether traders will be “shocked” by the news. If it is already baked in, we may be in a “wait and see” mode until earnings start again Wednesday. In either case, we should expect more volatility and be prepared for intraday reversals. That means continuing to be either being very nimble/quick, being hedged, or having loose enough stops (and the ability to withstand short-term pain) to ride out the whipsaw action. Trade carefully and position yourself so that shocks in either direction don’t throw you into a panic.

Remember, big bank earnings start Wednesday and markets are closed Friday (Good Friday). So, you don’t have to chase trades early this week. Stick to those 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. 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.

Ed

Swing Trade Ideas for your consideration and watchlist: GPN, AMCR, CCI, EOG, GFL, MRO, XOM, CMCSA, MNST, HES, TGT, CLX, FIS, LUMN. 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, the large-caps opened flat and then put in a volatile day.  Meanwhile, the QQQ gapped down about a half of a percent and then after a morning bounce spent the afternoon selling off.  This left us with a black Doji in the SPY, a white Spinning Top in the DIA, and a black candle in the QQQ.  On the day, SPY lost 0.27%, DIA gained 0.40%, and QQQ lost 1.40% as money rotated out of the high-growth tech stocks and into defensive sectors.  The VXX rose over 2.5% to 24.57 and T2122 came back up to near mid-range at 53.47.  10-year bond yields ended up again to 2.704% and Oil (WTI) gained almost 2% to $97.90/barrel.

In miscellaneous business news, Elon Musk made the surprise announcement that he has rejected a seat on the TWTR board.  This came a day after he suggested a number of changes to the TWTR Blue subscription program, including having the company add the ability to accept payments in dogecoin.  Bloomberg reports that F may reopen the factories it closed in India to make electric vehicles.  This news comes 2 days after the company’s joint venture in Turkey has begun production of an electric version of the company’s Transit van. Elsewhere, Chinese EV maker NIO raised prices by about $1,600. That company has also had to halt production due to Covid closure of their plant.

SNAP Case Study | Actual Trade

On the Russian invasion story, on Saturday, UK PM Johnson visited Kyiv to promise the Ukrainians armored vehicles, anti-ship missile systems, and $500 million in added World Bank loan guarantees.  This brings Britain’s loan guarantees for Ukraine to $1 billion.  Meanwhile, S&P downgraded Russia to “selective default” on Saturday.  Most analysts believe the country will at least partially default on the $649 to bond holders that is due today.  As of now, Russia has only promised to place the equivalent in Rubles in its own National Settlement Depository (meaning it would be inaccessible to the lenders until after sanctions).  Still, the World Bank said on Sunday that despite the “heavy sanctions” Russia faces, they expect the Russian economy to contract by only 11% for 2022 (compared to 45% for Ukraine).

Economic news for later this holiday-shortened week includes March CPI, 10-year note auction, and Federal Budget Balance on Tuesday.  Wednesday brings March PPI and Oil Inventories.  On Thursday we get March Retail Sales, March Import/Export Indices, Weekly Jobless Claims, February Bus. Inventories, Michigan Consumer Sentiment, and a Fed speaker.  US Markets are closed for Good Friday, but we get NY Empire State Mfg. Index and March Industrial Production numbers.  Also, remember that Friday is Tax Day in the US.

Overnight, the Asian markets were red across the board, with the lone exception of Australia (+0.10%) which eked out a small gain.  Shenzhen (-3.67%), Hong Kong (-3.03%), and Shanghai (-2.61%) led the region lower after higher-than-expected Chinese Consumer and Producer Price news showed that inflation is running at 8.3% in that country.  In Europe, stocks are mixed at mid-day.  The FTSE (-0.28%), DAX (-0.19%), and CAC (+0.74%) are typical of the spread across the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing to a red start to the morning.  The DIA implies a flat -0.04% open, the SPY is implying a -0.34% open, and the QQQ implies a -0.71% open at this hour.  10-year bond yields are also spiking again to 2.759% and Oil (WTI) is down more than 3.75% to $94.58/barrel in early trading.

There is no major economic news scheduled for release on Monday.  However, Fed member Bostic speaks at 9:30 am.  There are also no major earnings reports scheduled for the day.

Notable Earnings Reports for this week include a slow start with none on Monday.  However, on Tuesday we get ACI and KMX.  Then Wednesday earnings ramp back up with BBBY, BLKL, DAL, FAST, FRC, INFY, JPM, and SJR.  On Thursday we get ALLY, C, ERIC, GS, MS, PNC, PGR, RAD, STT, TSM, USB, UNH, and WFC.  There are no earnings scheduled for Friday.

The lack of economic news or earnings this morning has traders searching for a clue ahead of the open. Still, the war continues in Ukraine, China has realized they have serious inflation (which is a problem given that they are still easing to promote growth), and earnings season kicks off again on Wednesday. So, we may see more tepid moves and volume today as markets wait for the next shoe to drop. With all this said, we should expect more volatility and be prepared for intraday reversals. That means either being very nimble/quick, being hedged, or having loose enough stops (and the ability to withstand short-term pain) to ride out the whipsaw action. Trade carefully and position yourself so that shocks in either direction don’t throw you into a panic.

Remember, big bank earnings start Wednesday and markets are closed Friday (Good Friday). So, you don’t have to chase trades early this week. Stick to those 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. 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.

Ed

Swing Trade Ideas for your consideration and watchlist: WEAT, AAP, STX, TGT, NKE, SYY, DIS, CSCO, KLAC, AMAT, HAS, ROKU. 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 opened just on the Southside of flat on Thursday before selling off slightly in the morning.  Then we saw a reversal and strong rally that lasted until we got a pullback the last half hour of the day.  This left us with indecisive, Spinning Top candles in all 3 major indices.  On the day, SPY gained 0.50%, DIA gained 0.35%, and QQQ gained 0.24%.  The VXX fell 1.35% to 24.05 and T2122 rose a bit to 36.96.  10-year bond yields surged again to 2.665% and Oil (WTI) rose just less than 1% to $97.13/barrel.

US Consumer debt jumped by almost $42 billion in February.  Debt levels rose to a record $4.5 trillion.  That was a much higher rate than the January increase and signals the impacts on consumers, which are being stretched thin by inflation.  Credit card debt alone jumped almost 21% in the month, compared to a 4% increase back in January.  This begins investors worrying about missed payments and bad debt collection and write-off impacts on creditors and especially regional banks (card issuers). This probably accounts for the fact that consumer confidence is at a 10-year low.

SNAP Case Study | Actual Trade

BAC market analysts turned bearish on the economy overnight, lowering ratings on the entire transportation and homebuilding industries.  They also expressed concern over the banking sector not showing the profit gains that are expected in typical rising rate environments.  The bottom line is that they now expect a recession and almost immediate rotation into defensive sectors and assets (such as bonds).  Are they late to the party…you be the judge?

On the Russian invasion story, Congress voted to approve the stripping of Russia of its most-favored-nation trade status and also banned Russian oil and gas imports.  Less reported but more importantly, earlier the US re-enacted (by unanimous Senate vote) the World War II “Lend-Lease” program and has removed the 5-year limit on the duration of loans.  The bill also declares the conflict in Ukraine began with the ceasing of Crimea.  This implies the US will back Ukraine through the end of the conflict (years if needed), including the recapture of Crimea.  On the other side of things, Germany urged their banks and gas purchasing companies to keep their contracts with Russia Gazprom.  In addition, Hungary bought a stake in Russian Sberbank in a sign of support for Putin by his friend Hungarian PM Orban.  MSFT also announced it had used a court order to disable 7 internet domains used by Russia to hack Ukrainian targets such as media organizations and government agencies.

Overnight, the Asian markets were mixed but leaned to the upside in modest trading.  India (+0.82%), Taiwan (+0.62%), Shanghai and Australia (both +0.47%) led the gains.  Meanwhile, Singapore (-0.62%) was the main loser with a couple of other exchanges just on the red side of flat.  However, in Europe, we see green across the board (with the lone exception of Russia’s -1.18%) at mid-day. The FTSE (+0.97%), DAX (+1.31%), and CAC (+1/37%) are typical of the continent in early afternoon trading.  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 +0.33% open, and the QQQ implies a +0.34% open at this hour.  10-year bond yields are up again to 2.688% and Oil (WTI) is down to $95.95/barrel in early trading.

Major economic news scheduled for release on Friday is limited to the WASDE (World Agriculture) Report at noon.  There are no major earnings reports scheduled for the day.

As the premarkets look modestly higher this morning, we are still looking at a down week at this point. A lack of economic news and/or earnings leaves traders to focus on news such as the Russian overnight bombing of a railway station full of evacuees and market analysts becoming more convinced recession is coming to an economy near you sometime in the next two quarters. These will be limited headwinds for the bulls. With all this said, we should expect more volatility (just like yesterday’s big intraday reversal) and be prepared. That means either being very nimble/quick, being hedged, or having loose enough stops (and the ability to withstand short-term pain) to ride out the whipsaw action. Trade carefully and position yourself so that shocks in either direction don’t throw you into a panic.

Remember that it’s Friday and we have a weekend news cycle ahead. Stick to those 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. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: OLLI, HBIO, TLRY, X, ORCL, MRO, BITO, XLF. 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