Tuesday saw the bears in control all day.  After a modest gap-down open, stocks sold off all morning and then whipsawed along the bottom all afternoon.  The day ended near the lows.  This left us with large black candles in all 3 major indices and all 3 closing on an upswing, but well back below their T-lines and apparently working on a “Dreaded h” pattern.  On the day SPY lost 1.53%, DIA lost 1.80%, and QQQ lost 1.52%.  The VXX gained 11% to 26.67 and T2122 fell back to the mid-range at 50.94.  10-year bond yields fell dramatically (mostly in premarket) to 1.731% and Oil (WTI) shot over 9% higher to $104.49/barrel.

The Russian invasion continues to drive markets with Financials down hard Tuesday (XLF was down 3.66%) over fear about what sanctions might do to US credit markets. (Fear of US Bank exposure to loans made to Russian entities or companies that depend on Russian markets or components.)  Russia also instituted “capital controls” that prevent foreign companies from selling Russian assets in an effort to stop companies like BP and RDSA from exiting their energy sector projects.  The measures also prevent hard currencies (essentially anything except Rubles) from being sent abroad.  After the close, F reported that it is suspending all operations in Russia and AAPL has halted all product sales to that country.  Overnight, the EU extended sanctions to Belarus, which sent troops to help the Russians on Tuesday.    

Perhaps the biggest news out of the Russian invasion is the fact that Putin has managed to unite Europe (including Switzerland) and the US.  He even managed to bring the Democrats and Republicans in Congress together as both sides repeatedly applauded President Biden in a very rare show of bipartisan support for sanctioning Russia and supporting Ukraine.     

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This morning F announced it will split its Electric Vehicle (EV) and Internal Combustion Ending (ICE) businesses into separate divisions.  This will free up the divisions to focus instead of trying to build both ICE and EV vehicles.  The company said is has no plans to spinoff either division.  However, in the past all the major automakers have said they expect to have all new vehicles be EV sometime in the next 10-15 years.

In a story that broke over the weekend, but only noticed by financial press Tuesday, NVDA reported that discovered it had been hacked on Feb. 23.  The hack allowed the bad guys to steal over one terabyte of NVDA intellectual property.  Contrary to initial fears of it being tied to Russian cyber-attacks, it appears the hack came from a South American extortion group, which demanded ransom.  Interestingly, NVDA has in turn hacked the group (named LAPSU$) and encrypted the hacked data.  However, LAPSU$ claims it has backups of the data and will release it unless NVDA pays the ransom. Some of the data has been released online by LAPSU$ as a show they still have the information.

After the close, AMC, CRM, ROST, JWN, JAZZ, CNR, MCFE, and KRA all reported beats on both lines.  Meanwhile, HPE beat on earnings while missing on revenue.  On the other side, NFE and URBN beat on revenue but missed on earnings.

Overnight, the Asian markets leaned heavily to the red side.  Hong Kong (-1.84%), Japan (-1.68%), and Shenzhen (-1.05%) led the region lower.  In Europe, markets are mixed but lean to the upside at mid-day.  The FTSE (+0.96%), DAX (+0.70%), and CAC (+0.76%) lead the region higher as Athens (-2.10%) and Denmark (-1.39%) lead the smaller exchanges swimming against that rising tide.  Russian markets remain closed.  As of 7:30 am, US Futures are pointing toward a green open.  The DIA implies a +0.80% open, the SPY is implying a +0.78% open, and the QQQ implies a +0.82% open at this hour.  10-year bond yields are up a bit to 1.758% and Oil (WTI) is spiking another 6% to $109.54/barrel in early trading.

The major economic news scheduled for Wednesday includes an OPEC meeting (5 am), Feb. ADP Nonfarm Payrolls (8:15 am), Crude Oil Inventories (10:30 am), and the Fed Beige Book (2 pm).  There are also multiple Fed speakers (Hawkish Member Bullard at 9:30 am and Fed Chair Powell testifies at 10 am).  The major earnings reports scheduled for before the open include ANF, AMRX, BHG, CLTR, DCI, DY, and PDCO.  Then after the close, AEO, SQM, GEF, JXN, PSTG, SPLK, and VSCO report.

Volatility has not gone away, but it looks like the bulls will have the momentum at the open. This may prevent the bears from following through on yesterday’s bearish move. Again we need to resist the temptation to think “the bottom is in” regardless of what happens in the market today. Russia surrounded two more major cities overnight and the downside news from sanction impacts on the West has yet to really make news. In short, the bears (both Russian and market) still have plenty of ammo they have not yet put into action. So continue to be careful, nimble, hedged, and aware.

Ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase moves. Trading is a marathon, not a sprint. So, 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. 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.)

Ed

Swing Trade Ideas for your consideration and watchlist: SPCE, PLUG, XOM, PINS, QS, TECK, PENN, TWTR, ADM, BITO, INTC. 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

Monday was another day of incredible volatility with a 1% – 1.5% gap-down open, a late morning rally that filled the gap, an afternoon selloff that took us to the lows of the day, and then a late-day rally to take us out not far off the highs.  This left us with gap-down large-body white candles with wicks on both ends and the SPY and QQQ able to climb back above their T-lines.  On the day, SPY lost 0.25%, DIA lost 0.40%, and QQQ gained 0.38%.  The VXX rose to 24.00 and T2122 was relatively flat, still inside the edge of the overbought territory at 83.17.  10-year bond yields dropped dramatically to 1.83% and Oil (WTI) spiked almost 4.6% to $95.78/barrel.

Of course, the big story was and continues to be the Russian invasion of Ukraine and the sanctions placed on Russia in return.  On the ground, a 40-mile-long Russian armored column has reached the outskirts of Kyiv and bombing continues in the second largest city Kharkiv.  However, Ukrainian resistance remains stiff.  After the close Monday, CA announced they will be banning the import of Russian Oil (symbolic since CA only imports about $560 million per year).  In the US, the national average gas price has reached $4/gallon for the first time since 2008.  Two weeks ahead of the Fed meeting, talk has begun about whether and how the FOMC will adjust its timeline in the face of an uncertain impact of this war on the US (and) global economy.  Fed member Waller said normally a half percent hike would be in order, but in the wake of Ukraine, a more modest approach may be required.   

SNAP Case Study | Actual Trade

After the close, HPQ, WDAY, ZM, ENDP, ACHC, and PDCE all reported beats on both lines.  Meanwhile, SBAC, DAR, VRM, HY, and OKE all missed one earnings but beat on revenue.  On the other side, SGRY and PRIM beat on earnings but missed on revenue.  It is worth noting that HPQ said they expect Russian sanctions to cut their profits by 3 cents per share for the current quarter. Elsewhere, ZM issued revenue guidance for the year that disappointed by coming in below analyst estimates.

So far this morning, APG, BNS, BMO, BAYRY, BIDU, AZO, HRL, OPYGY, and BLDR have all reported beats on both lines.  SE, IQ, and GOLF all missed on earnings but beat on revenue.  Meanwhile, KTB beat on revenue but missed on earnings.

Overnight, the Asian markets were almost green across the board, with only Malaysia (-0.74%) printing any red.  However, Taiwan (+1.39%), Japan (+1.20%), and Singapore (+1.12%) led a broad-based rally.  In Europe, we see the mirror image at mid-day.  Only Norway (+1.58%) shows any green with the FTSE (-1.25%), DAX (-2.70%), and CAC (-2.90%) leading the continent lower in early afternoon trading.  As of 7:30 am, US Futures are pointing toward another red open.  The DIA implies a -0.74% open, the SPY is implying a -0.81% open, and the QQQ implies a -0.87% open at this hour.  10-year bond yields are dropping sharply (-1.738%) and Oil (WTI) is up another 4.41% in early trading.

The major economic news scheduled for Tuesday includes Feb. Mfg. PMI (9:45 am), ISM Feb. Mfg. PMI (10 am), and President Biden’s State of the Union Address (8pm-ish).  The major earnings reports scheduled for before the open include ADT, AZO, BIDU, BMO, BNS, BLDR, CHS, CLVT, DPZ, HGV, HZNP, HRL, IGT, IQ, SJM, KSS, KTB, PRGO, REGI, SE, TGT, TMX, and UWMC.  Then after the close, ADV, AMC, BGS, CNR, FSLR, GO, HPE, JAZZ, JWN, ROST, CRM, SGMS, SWX, TTEC, URBN, and VGR report.

With no major new developments on the Russian invasion or sanctions fronts overnight, this might be a day for markets to reconsider. However, uncertainty reigns, and volatility will most likely continue to be the order of the day. So, continue to be cautious and continue to only take trades if you are willing to suffer the pain of reversals and volatility. With that said, if this is like similar past events, expect the fear to wear off over time as the impacts have had a chance to settle in. Try to ride out the shocks and take a little longer-term view. The situation does not fundamentally change global economics, but it produces uncertainty and markets hate uncertainty.

Remember that you don’t have to trade every day and you definitely don’t need to chase the premarket moves by trading early. Ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Trading is a marathon, not a sprint. So, 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. 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.)

Ed

Swing Trade Ideas for your consideration and watchlist: Rick is out sick today, so no trade ideas. 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

Friday brought us a modest gap higher in all 3 major indices.  This let into initial selling the first 30 minutes and then a significant rally that lasted the rest of the morning.  The afternoon gave us a sideways chop that ended on an upswing the last half hour and saw all 3 major indices closing very near the highs of the day.  As a result, we printed shite candles and broke through the T-line in all 3.  However, the downtrend from the last couple of weeks has not yet been broken.  On the day, SPY gained 2.21%, DIA gained 2.47%, and QQQ gained 1.55%.  VXX fell 4% to 22.95 and T2122 spiked up into the overbought territory at 85.08.  10-year bond yields were up slightly to 1.97% and Oil (WTI) fell nine-tenths of a percent to $92.00/barrel.

The main story continues to be the Russian invasion of Ukraine and the Western sanctions that have resulted.  Over the weekend, some Russian banks were kicked out of the SWIFT payment system.  (Some credit cards just won’t work in Russia now as well as hitting foreign trade.) This is a way to target all non-energy and non-ag exports by Russia (which while significant are still minor relative to their Energy and Ag exports).  The EU also closed its airspace to Russian planes. Much more importantly, the EU banned all transactions with the Russian Central Bank, which will prevent Russia from accessing a little over half of their country’s bank reserves.  This forced the Russian Central Bank to raise rates 20% (to discourage borrowing from their depleted reserves).  On Monday emerging market currencies were slumping and the Ruble is down 30%.  As a safe haven, the dollar is climbing versus all currencies. In non-economic fallout, on Sunday, BP announced it will be selling (presumably at a loss) its nearly 20% state in the Russian state-owned energy company Rosneft. 

SNAP Case Study | Actual Trade

In other news, during the day Friday, the SEC proposed new Short Selling rules.  The rules focus on larger traders, defined as those with at least $10 million or 2.5% of the float short for any stock.  The regulation would require the shorts to submit monthly data to the SEC and also require brokerages or funds that lend shares for shorting to submit data on the transaction within 15 minutes of loaning the stock.  However, these proposals are still far from certain as the agency has extended the public comment period on these proposed regulations and we know large funds and brokerages oppose them.

This week also includes a broad range of economic data.   Monday and Tuesday see Mfg. PMI data.  Meanwhile, Wednesday brings both an OPEC meeting and US Oil Inventories (which may be important depending on the Russian invasion impacts on oil markets) as well as Fed Chair Powell beginning 2 days of Congressional testimony.  Then Thursday gives us Jobless Claims, Q4 Productivity, and Services PMI.  Finally, on Friday we get February Payrolls, Unemployment, and Participation data.  In addition to all of this, there will be several Fed speakers during the week.

Overnight, the Asian markets were mostly green.  Singapore (-1.59%) was an extreme outlier and one of only two exchanges in the red, but Shanghai (+0.32%), Japan (+0.19%), and South Korea (+0.84%) are representative of the region.  In Europe, markets remain in the red, with a few smaller exchange outliers.  For some reason, Denmark (+2.25%) is an extreme outlier to the green side.  The FTSE (-1.24%), DAX (-2.35%), and CAC (-2.95%) are typical of the region as Europe anticipates the pain of sanctions on their own economies.  As of 7:30 am, US Futures are pointing toward another significant gap down.  The DIA implies a -0.84% open, the SPY is implying a -0.87% open, and the QQQ implies a -0.81% open at this hour.  10-year bond yields have dropped sharply to 1.918% as money flees to bonds and Oil (WTI) shot up about 5% to 96.12 in early trading.

The major economic news scheduled for Monday includes Jan. Goods Trade Balance and Jan. Retail Inventories (both at 8:30 am) and Chicago PMI (9:45 am).  The major earnings reports scheduled for before the open include BRK.B, CANO, DQ, XRAY, FMX, GLP, ITRI, JLL, KOS, NLSN, PRTY, TGNA, VEON, and VTRS.  Then after the close, ACHC, CAPL, DAR, ENDP, HPQ, OKE, PDCE, PRIM, SBAC, SGRY, VRM, WDAY, and ZM report.

Once again today we face another wave of shock from the Russian invasion (and sanctions) and yet again this is a situation where the market will likely over-react and then whipsaw. If you were not hedged or in cash going into the weekend, it is very likely too late to avoid some pain. However, you can avoid the panic and mistake of selling into the initial over-reaction this morning. Expect massive volatility today, but try to remain calm. If this is like similar past events, expect the fear to wear off as the impacts have had time to settle in. Try to ride out the initial shock this morning and be very, very, leery of chasing any new trades (either direction) until things settle down. Once again, today would be a good day to turn off the TV and go fishing or sit on your hands if you were not prepared ahead of time.

Remember that you don’t have to trade every day and you definitely don’t need to chase the premarket moves by trading early. Ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Trading is a marathon, not a sprint. So, 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. 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.)

Ed

Swing Trade Ideas for your consideration and watchlist: RUN, SQQQ, ZEN, RWM, SNAP, SPCE, TMUS, TECK. 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

Thursday saw a dramatic turn-around as a major Russian Invasion gap-down across the board was met by a strong all-day rally that closed near the highs in all 3 major indices as well as the small-caps (IWM).   This led to Bullish Belthold signals and green days in all 4 indices.  (Remember that all candle signals require confirmation.) On the day, SPY gained 1.43%, DIA gained 0.25%, and QQQ gained a massive 3.36%.  This was a tremendous feat after they had gapped down between 2.5% and 3.5%.  VXX lost 3% on the day to 23.94 and T2122 jumped up out of the oversold territory to 25.54.  10-year bond yields recovered from their premarket lows to close down modestly to 1.965% and Oil (QTI) gained 1.35% to $93.25.

The Russian invasion continues today as Russian troops near the Ukrainian capital of Kyiv.  Meanwhile, the West is claiming they are now instituting “crippling sanctions.”  However, that’s debatable since neither of the so-called “nuclear sanctions” was issued.  (Those being tariffs or embargoes placed on the main Russian exports of Oil, Nat. Gas, and Wheat as well as Russia being kicked out of the SWIFT payment system, which would have made all international trade very hard and very expensive.)  The main sanctions that were put in place are the freezing of Russian bank assets and a prohibition on those banks from raising funds in Western financial markets.  However, it is theoretically possible that Germany, Spain, Italy, and other holdouts may still change their minds on those hammer-blow sanctions as the invasion and occupation wear on.  The bottom line is that, as of now, Markets do not perceive major disruptions or problems for the global economy from the invasion.

SNAP Case Study | Actual Trade

In other news, Q4 GDP came in at 7.0% as expected and the Weekly Initial Jobless Claims were very slightly better than expected.  However, Jan. New Home Sales came in slightly less than expected and, interestingly, Crude Oil Inventories came in much higher (4.1 million barrels higher) than was expected.

On the earnings front, after the close, OXY, VMW, SQ, ADSK, ETSY, COIN, UHS, TIMB, SFM, and AAN all reported beats on both lines.  Meanwhile, HKXCY, HEI, FTCH, TPC, EIX, and TV all reported beats on earnings but missed on revenue.  On the other side, EOG, DELL, AEM, CVNA, OPEN, and OPK beat on revenue but missed on earnings.  However, INTU and RKT missed on both revenue and earnings lines.

So far this morning, CM, SRE, NTIOF, LAMR, ICAGY, CRI, CNK, MODV, and SAFM have reported beating on both lines.  Meanwhile, LI, SSREY, GTN, and CLMT missed on earnings but beat on revenue.  On the other side, FL and TV missed on revenue but beat on earnings.  However, QRTEA, SSP, and GVA have reported misses on both lines.

Overnight, the Asian markets were almost green across the board.  Hong Kong (-0.59%) was the only red in the region.  Meanwhile, India (+2.53%), Japan (+1.95%), and Shenzhen (+1.21%) led the bounce back.  In Europe, the rebound is stronger with significant gains all across the continent at mid-day.  The FTSE (+2.41%), DAX (+1.63%), and CAC (+1.99%) can even be said to be laggards in the rebound as most of the smaller exchanges have moved more.  Even Russia (+12.21%) has bounced quite a bit as the sanctions were not as harsh as feared.  Of course, Europe still has an afternoon of trading before they can book this rebound.  As of 7:30 am, US Futures are pointing to a modestly red open.  The DIA implies a -0.40% open, the SPY is implying a -0.35% open, and the QQQ implies a -0.23% open at this hour.  10-year bond yields are up to 1.993% and Oil (WTI) has bounced back half of a percent in early trading.

The major economic news scheduled for Friday includes Jan. Durable Goods Orders, Jan. PCE Price Index, and Jan. Personal Spending (all at 8:30 am), and Michigan Consumer Sentiment and Jan. Pending Home Sales (both at 10 am).  The major earnings reports scheduled for before the open include AES, CLMT, CM, CRI, CNK, SSP, EVRG, FL, GTN, IEP, LI, MODV, PNW, QRTEA, SRE, and VST.   There are no reports scheduled for after the close.

The bulls in the US showed incredible resilience in the face of Russia’s invasion yesterday. For example, the QQQ saw a 7% swing from the opening lows to closing highs. That being said, one gap-down rebound candle does not break the bearish trend and certainly does not mean a new trend has started. We also need to recognize that the volatility is extremely high. (For example, the ATR5 of QQQ is $13.) So, if you’re going to trade in this environment, be fast, be hedged, and be prepared to withstand significant volatility. Do not be the guy that assumes he picked the bottom and will feel no pain. Also, keep in mind that this is Friday and there is a weekend news cycle in front of us (which can be forever when there is a hot war on the doorstep of a huge part of the world economy…the EU).

Ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Remember that you don’t have to trade every day. Trading is a marathon, not a sprint. So, stick to your trading rules and manage the things that you can control. When you do trade, trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. 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.) Be careful out there.

Ed

Swing Trade Ideas for your consideration and watchlist: UPST, NKLA, PLUG, GME, HACK, CF, ZEN, MSFT, CHGG. 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 Wednesday as all 3 major indices gapped higher 0.70%-1% at the open.  This came after there was no active fighting between Russia and Ukraine overnight.  However, that was the highs of the day, and markets sold off from that point (with a brief lunchtime rebound) and drove lower all the way into the close.  This left us with big, ugly black candles and gave us the lowest close since June 2021 in all 3 major indices.  On the day, SPY lost 1.75%, DIA lost 1.35%, and QQQ lost 2.56%.  The VXX was up 5 and a half percent to 24.64 and T2122 fell even further into the oversold territory to 8.04.  10-year bond yields spiked to 1.986% and Oil (WTI) was flat at $92.02/barrel.

During the day Wednesday, Ukraine called up 36,000 reserves to support their active military and have declared a state of emergency (allowing them to set curfews, restrict travel, and control press). Ukraine also had to deal with a cyber-attack that took many of its government and banking computer systems offline.  Then overnight, Russia launched its full-scale invasion of Ukraine as had been predicted by the US and NATO allies.  The incursion is on 3 fronts at the moment and Kyiv has been shelled.  So, expect more sanctions and whatever retaliatory measure (cyber and cold war) that may result.  Oil has already spiked above $100/barrel and the safety trade will be the order of the day in markets.

SNAP Case Study | Actual Trade

Not that it matters today, but after the close, FNF, EXR, LYV, LNVGF, BBWI, LILA, UCTT, EVH, EBAY, NTAP, BKNG, HTZ, MYRG, AMED, and BMRN all reported beating on both lines.  Meantime, BTG, LHCG, LILAK, RCII, and PTVE all missed on earnings while beating on revenue.  On the other side, MANT missed on revenue but beat on earnings.  However, WES, HLF, FLS, FTI, and SNBR all reported misses on both lines.

Again, not that it matters today, but so far this morning RY, BUD, DDAIF, NTES, MRNA, NEM, ABEV, AEP, CBRE, PWR, ARKAY, and PZZA have reported beats on both lines.  Meanwhile, BABA, TECK, DISH, NOMD, and SPTN have reported beating on earnings while missing on revenue.  On the other side, AMT, KDP, LYG, DISCA, WPP, NCLH, AHEXY, AHCO, JMIA, and MITT reported earnings misses but beat on revenue.  However, W, UTHR, PAAS, PRMW, and GCI have missed on both lines.

Overnight, the Asian markets were red across the board as is to be expected in time of war impacting global trade in at least Oil, Natural Gas, and Wheat along with any sanctions that may prevent business of any sort with Russia.  India (-4.78%) was the big loser, but the damage was more than 2% everywhere except Malaysia (-0.77%).  Hong Kong (-3.21%), South Korea (-2.60%), and Shenzhen (-2.20%) are pretty representative of the regional reaction.  In Europe, again as would be expected, the reaction has been worse.  The FTSE (-3.01%) is the least impacted, the DAX (-5.01%) and CA (-4.69%) are typical.  Interestingly, the Russian exchange (-34.10%) has suffered a massive hit.  As of 7:30 am, US Futures are pointing to a major gap down at the bell.  The DIA implies a -2.35% open, the SPY is implying a -2.41% open, and the QQQ implies a -2.92% open at this hour.  10-year bond yields dropped dramatically to 1.859% as traders bid up bonds on the safety trade and Oil (WTI) shot up over 8.2% but has “backed off” to $98.93/barrel at the moment (it was well over $100 earlier).

The major economic news scheduled for Thursday includes Q4 GDP and Weekly Initial Jobless Claims (both at 8:30 am), Jan. New Home Sales (10 am), Crude Oil Inventories (11 am), and a trio of Fed speakers (Bostic at 11:10 am, Mester at noon, and Waller at 8 pm).  The major earnings reports scheduled for before the open include AHCO, BABA, AEP, AMT, BUD, AZUL, BALY, CRC, CBRE, CQP. LNG, CCO, DISCA, DISH, SATS, ELAN, EME, EXPI, FCN, GCI, IBP, IRM, KDP, MRNA, NTES, NOMD, NCLH, NRG, OGE, PZZA, PRMW, PEG, PWR, RY, SJI, SPTN, SRCL, SHOO, TRGP, TECK, VIV, TFX, TEN, TNC, and W.   Then after the close, ADSK, SQ, CVNA, CENX, CHE, COIN, CODI, CVET, CWK, DELL, EIX, EBS, ERIE, ETSY, FTCH, FND, INTU, MTZ, MNST, OXY, ZEUS, OPEN, OVV, PBA, RKT, SEM, SM, SWN, SFM, TPC, UNVR, UHS, VMW, WSC, and INT report.

In the face of the Russian invasion, we can expect wholesale selling and rotation toward safety trades (Bonds, Gold, Utilities, etc.). Expect massive volatility today, but it is likely too late to do much damage control unless you were hedged before the shock. If this is like similar past events, expect the fear to wear off as the sanctions and impacts have had time to settle in. However, that won’t help today, at least not early. Personally, I will be looking to ride out the initial shock in positions where it’s too late to be ahead of the news and I definitely won’t chase any new trades until things settle down. In short, today would be a good day to go fishing or sit on your hands if you were not prepared ahead of time.

Remember that you don’t have to trade every day and you definitely don’t need to chase the premarket moves by trading early. Ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Trading is a marathon, not a sprint. So, 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. 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.)

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas today – this is not the time to step in front of fear and massive volatility. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

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