Markets opened dead flat on Friday.  However, QQQ immediately headed South and by late morning the large-cap indices followed.  There was no recovery as stocks closed near their lows in all 3 major indices.  The proximate cause of this bad day was the word that the Fed is holding an emergency meeting to talk about rates today.  That and increased fear of a Russian invasion of Ukraine.  This move left us with big, ugly black candles in all 3 major indices that broke down below the February lows and seem on their way back to challenge the January lows.  On the day, SPY lost 1.97%, DIA lost 1.49%, and QQQ lost 3.17%.  The VXX rose over 13.5% to 23.24 and T2122 fell but remains in the mid-range at 33.16.  10-year bond yields fell back to 1.918%, but Oil (on the Russian invasion fear) was the big mover, spiking almost 4.5% to $93.90/barrel.

SNAP Case Study | Actual Trade

Both Bloomberg and CNN reported Friday that traders (funds) are now keeping a close eye on “2yr vs 10yr Bond Yields.”  Last year the Fed produced research that found that every recession (at least since 1955 which was the study timeframe) was preceded by an inversion of the 2yr and 10yr bond yields.  (Logically, locking up money for 10 years should deliver higher returns than locking it up for 2 years.  An inversion is when the yield on a 2yr bond goes above the yield on a 10yr bond.)  This indicator has preceded every recession and only produced one false-positive.  As of Friday, the 2yr yield is at 1.487% while as mentioned above, the 10yr is at 1.918%.  However, the 2yr yield is up 110% on the year and the 10yr yield is up only 27% during the same time.  As this gap narrows and we approach inversion, expect the big money to be fleeing cyclicals and moving into recession plays.

So far this morning, AB, ARES, BRKR, IAA, MGA, COOP, SLVM, UA, UAA, and NWL have all reported beats on So far this morning, THS and some Japanese ADRs (TKOMY, JAPAY, KNBWY, STBFY) have reported a beat on both lines.  However, both KELYA and KELYB reported massive beats (more than double expected) earnings, while also coming up significantly short on revenue.  GTX reported in a similar way, beating (but not double) on earnings, but also missed slightly on revenue. 

Overnight, the Asian markets are nearly red across the board.  Only Australia (+0.37%) and Malaysia (+0.31%) managed to stay green.  Meanwhile, India (-3.06%), Japan (-2.23%), and Taiwan (-1.71%) led the way lower.  In Europe, we do see all red as of mid-day on Russian Invasion fears.  The FTSE (-2.00%) is “leading” continent by holding up relatively well, but the DAX (-3.26%) and CAC (-3.49%) are more typical in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap-down open.  The DIA implies a -0.79% open, the SPY is implying a -0.92% open, and the QQQ implies a -1.18% open at this hour.  10-year bond yields are up slightly relative to Friday and Oil (WTI) is off a quarter of a percent in early trading.

The only major economic news scheduled for Monday is any announcement or decision that comes from the emergency Fed Rate Meeting today.   It is unclear if Fed Member Bullard will keep his 11 am speaking engagement, given the emergency Fed meeting.  The major earnings reports scheduled for before the market include GTX, KELYA, and THS.  Then after the close, AAP, ANET, CAR, BKD, CLR, HE, NTWK, PRI, and SCI report.

Russia did not invade Ukraine this weekend (as many had feared), but the brinksmanship remains underway with serious jitters (especially in Western Europe, like Germany, where the country is dependent on Russian Natural Gas). That and the emergency rate meeting by the Fed are sure to dominate the headlines and chatter among traders today. So, fear will likely be the driver early. And that forecast of mood (fear) is also what we are seeing in premarket prices this morning. So, stay nimble and/or hedged to volatility, and remember we have some potential support (at the bottom of a dreaded h pattern) not far below.

Remember that you don’t have to trade every day and you definitely do not need to trade early. 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 (Rick is on vacation this week). 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 did a massive change of heart at 8:30 am when the January CPI number came in hotter than expected.  This caused a 1%-2% gap down in the major indices.  However, that was a bear trap as all 3 major indices immediately filled the gap in a strong rally that lasted the first 45 minutes.  Unfortunately for bulls, that rally was a bull trap.  Fed member Bullard came out and said he favors at least a 1% rate hike before July including a half-percent hike in March and he also wants to see the Fed starting to reduce its balance sheet during Q2. That was just what bears wanted to hear as stocks sold off the entire rest of the day.  This all left us with very long-wicked, black candles that close not too far from the lows.  On the day, SPY lost 1.79%, DIA lost 1.43%, and QQQ lost 2.26%.  The VXX climbed over 5% to 20.31 and T2122 dropped back into the mid-range at 41.94.  10-year bond yields spiked hard to 2.052% and Oil (WTI) gained slightly to $90.01/barrel.

SNAP Case Study | Actual Trade

After the close, ILMN, RSG, VRSN, SSNC, MPWR, Z, GDDY, ZG, CSL, DVA, KAJMY, BHF, SGAMY, TEX, MTD, and MWK all reported beats on both lines.  Meanwhile, EXPE, FE, BIO.b, BIO, EQH, WU, and OSCR all beat on earnings while missing on revenue.  On the other end, DXCM, FLO, CC, NSP, and BECN all beat on revenue, but missed on earnings.  Lastly, EEFT missed on both lines.

So far this morning, AB, ARES, BRKR, IAA, MGA, COOP, SLVM, UA, UAA, and NWL have all reported beats on both lines.  Meanwhile, CLF and D reported misses on both lines.  APO, FTS, G, and GPRE all missed on earnings, while beating on revenue. 

Overnight, the Asian markets leaned heavily to the downside.  New Zealand (-1.93%), Shenzhen (-1.55%), and India (-1.31%) led the way lower.  Only Japan (+0.42%) and Malaysia (+0.56%) managed to stay green.  In Europe, with the lone exception of a modestly green Athens (+0.30%), the entire continent is red.  The FTSE (-0.71%), DAX (-0.28%), and CAC (-1.07%) are leading the way in early afternoon trading.  As of 7:30 am, US Futures are pointing to a mildly red open.  The DIA implies a -0.12% open, the SPY is implying a -0.12% open, and the QQQ implies a -0.13% open at this hour.  10-year bond yields are down t o2.001% and Oil (WTI) is up 1.5% in early trading.

The major economic news scheduled for release Friday is limited to Michigan Consumer Sentiment (10 am).  Major earnings reports scheduled for before the market include AB, AXL, APO, ARES, BRKR, CAE, D, ENB, FTS, G, GT, GPRE, IAA, MGA, COOP, NWL, NMRK, SLVM, US, and UAA.  There are no reports scheduled for after the close.

Remember that it’s Friday and there is a weekend news cycle ahead. So, be prepared. With that said, the action in the premarket looks very mild today given the recent major gaps at the open. Maybe the big money is taking off early for a ski weekend (or SuperBowl prep). There has been a lot of great earnings news this cycle, but just keep in mind that all it took was one Fed member to say something yesterday to completely reverse markets. 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: 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

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