Markets opened higher across the major market index ETFs. SPY gapped up 0.60%, DIA gapped up 0.59%, and QQQ gapped up 0.63%.  From there, ground sideways in the top half of its gap, DIA chopped sideways not too far above its opening level, and QQQ was a Bull Trap as it slowly and steadily sold back toward the prior close. This went on the rest of the day.  This action gave us decidedly black-bodied candles in the SPY and QQQ but a white-bodied indecisive candle in the DIA.  SPY gapped up and then printed a black-body candle that approached, but did not retest its T-line (8ema) from above.  QQQ gapped up and then traded back toward its prior close on a large, black-body candle.  Meanwhile, DIA printed a cap-up, white-bodied, Bullish Harami candle that is mostly upper wick.  This happened on well-below-average volume in the SPY and QQQ, but just below-average volume in the DIA.

On the day, nine of the 10 sectors were in the green with Financial Services (+1.43%), Basic Materials (+1.07), and Consumer Cyclical (+1.01%) well out in front leading the way higher.  On the other side, Energy (-0.85%) was by far (by more than 1.2 percent) the weakest sector.  Meanwhile, SPY gained 0.31%, DIA gained 0.70%, and QQQ gained 0.02%.  VXX plummeted 4.67% lower to close at 52.71 and T2122 was dead flat, just outside its oversold territory, to remain at the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields jumped again to close at 4.28% while Oil (WTI) plunged 5.36% on to close at $71.65 per barrel. So, Monday was a blah day in the market where most of the action came at the open (from exuberance over the end of the current round of Israel-Iran direct conflict) but then it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

There was no major economic news scheduled for Monday.

After the close, BRO, CDNS, CWH, CR, ESI, EHC, FFIV, F, QUAD, SKY, UCTT, WELL, and WM all reported beats on both the revenue and earnings lines. At the same time, SBAC and VFC both missed on revenue while beating on earnings. On the other side, AMKR and FLS beat on revenue while missing on earnings.  However, CVI and LEG missed on both the top and bottom line.

In stock news, on Monday, T announced it had signed a $1 billion multi-year deal with GLW to buy fiber and other products.  At the same time, TTE announced it had sold a 50% stake in its Iraqi 1.25-gigawatt solar project to QatarEnergy.  (Financial terms of the deal were not disclosed.)  Later, Bloomberg reported that RUN is in discussions with several datacenter developers to provide solar power.  (RUN is currently strictly in the residential solar business and this would be its entry into the commercial market.) At the same time, Reuters reported that META is building its own AI-based search engine to compete with GOOGL, MSFT (Bing), and ChatGPT’s AI-search.  Later, the head of the VLKAF (Volkswagen) labor union told Reuters Monday that the company has told the union it plans to close three German plants, lay off tens of thousands of workers, and shrink the size of other non-German European plants.

Meanwhile, MCD announced it has begun selling Quarter Pounder burgers again at more than 900 stores across 13 states where they had been pulled from the menu for a week. MCD says the burgers are now being sold without onions and the company has cut ties (at least temporarily) with the vendor of the contaminated onions. At the same time, AAPL released a new phone operating system, an update that includes its previously announced Apple Intelligence AI system.  (This included versions for iPad, iPhone, and Mac.)  At the same time, Reuters reported that RPD has now engaged investment bankers due to buyout talks with private equity firms that have advanced.  The suitors of RPD include EQT, Advent, and BCSF.  Later, WMT announced it is cutting in half the price (from $98 to $49) of its “Walmart Plus” subscription service in an attempt to make up ground on rival AMZN with their Prime service.  After the close, NEE announced it will sell shares to raise $1.5 billion to fund new energy projects. At the same time, Japanese publication Nikkei reported that TM and NPPXF (Nippon Telegraph and Telephone) will jointly invest $3.26 billion in R&D toward AI software for self-driving cars.

In stock legal and governmental news, on Monday, Reuters reported that Indonesia has blocked the sale of AAPL’s iPhone 16 in the country.  The reason is that Indonesia requires that smartphones sold in the fourth-largest population country must have at least 40% locally-manufactured parts.  Later, JPM announced that it has begun suing customers for “check fraud,” alleging the customers improperly withdrew excessive funds to take advantage of a JPM system glitch that temporarily allowed ATM users to withdraw “infinite cash” regardless of account balance. So far, suits have been files against two individuals and two businesses across three cities.  In other JPM news, JPM CEO Dimon blasted several financial regulatory agencies Monday.  Dimon said, “It’s time to fight back.”  He went on to say, “We are suing our regulators over and over and over because things are becoming unfair and unjust, and they are hurting companies.” 

Elsewhere, after the close, the 5^th Circuit Court of Appeals unanimously ruled (3-0) that LUV must face a lawsuit alleging the company illegally intimidated and disciplined pilots who were part of the 9,000-member pilot union.  At the same time, the Dept. of Energy issued another solicitation, this time for another 3 million barrels of crude, to refill the Strategic Petroleum Reserve. Later, the Dept. of Treasury finalized rules that limit US investments into AI and other technologies in China.  The new rules will replace President Biden’s executive orders on the issue as of January 2. At the same time, TPR and CPRI filed notices of a joint appeal of the US District ruling last week that killed their $8.5 billion merger by ruling in favor of the FTC.

In miscellaneous news, on Monday, Reuters reported that if North Korean forces enter into direct fighting against Ukrainians, there would be no new restrictions on the use of US weapons. Pentagon spokeswoman Sabrina Singh said, “A portion of those (North Korean) soldiers have already moved closer to Ukraine, and we are increasingly concerned that Russia intends to use these soldiers in combat or to support combat operations against Ukrainian forces in Russia’s Kursk Oblast near the border with Ukraine.” Elsewhere, BA announced it had raised $21 billion through the sale of 90 million common shares and $5 billion worth of stock warrants all on Monday as the company tries to improve its balance sheet and avoid a credit downgrade to junk status.  Meanwhile, Bitcoin briefly traded above $71,000 Monday for the first time since June.

In Middle East news, on Monday Israel declared the UNWRA agency to be a terrorist organization and essentially threw the UN out of the country.  Israel alleged hundreds (of the thousands) of UNWRA aid workers had ties to Hamas “terrorists” and also that Hamas had military assets in tunnels under UNWRA facilities. Since UNWRA is the group that distributes the vast majority of aid in Palestine and provides a large portion of medical assistance to Palestinians, the ties are inevitable and laws could be another crushing blow aimed at dislodging/ejecting Palestinians. However, the two laws were widely condemned by Western countries and they did not go into effect immediately. So, theoretically, the laws could be another bargaining ploy by Israel or they might be scrapped if other countries apply enough actual pressure on them.  In addition, new milestones of 43,000 Palestinians and at least 2,500 Lebanese killed by Israel since October 7, 2023 were reached Monday.  Elsewhere, Israeli air strikes killed 60 people in Lebanon and destroyed two more border crossings between Lebanon and Syria. After these (and previous) strikes, only three border crossings are still in place between those two countries.

In other war news, the US Dept. of Defense increased its estimate of the number of North Korean soldiers headed to the front lines in the Kursk region. DoD now estimate there are 10k North Korean troops, which is more in-line with foreign government estimates and most reporting.  For its part, Ukraine reported Monday that it has intelligence indicating that 5,000 of those North Korean troops are already headed to the front line in Kursk.

Overnight, Asian markets were mostly in the green.  Just four of the 12 exchanges in the region were below break-even.  Japan (+0.77%), India (+0.52%), and Hong Kong (+0.49%) paced the gainers while Shenzhen (-1.33%), Taiwan (-1.17%), and Shanghai (-1.08%) led the losses.  Meanwhile, in Europe, we see a similar picture with 11 of the 14 bourses in the green at midday.  The CAC (+0.48%), DAX (+0.39%), and FTSE (+0.15%) lead the region higher in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a flat start to the day.  The DIA implies a -0.19%) open, the SPY is implying a -0.06% open, and the QQQ implies a +0.3% open at this hour.  At the same time, 10-Year bond yields are up to 4.296% and Oil (WTI) has rebounded 1.01% overnight to $68.07 per barrel in early trading.

The major economic news scheduled for Tuesday includes Preliminary September Goods Trade Balance and Preliminary September Retail Inventories (both at 8:30 a.m.), October Conference Board Consumer Confidence and September JOLTS Job Openings (both at 10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, and ZBRA.  Then, after the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN report.

In economic news later this week, on Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, GLW, CROX, ESAB, FOR, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PFE, RCL, SOFI, THC, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, AMT. BP, CHKP, HSBC, PYPL, PSX, RITM, and SWK missed on revenue while beating on earnings.  On the other side, INCY beat on revenue while missing on earnings.  However, ABG, DHI, EXP, EPD, GPK, PAG, and XRX missed on both the top and bottom lines. (It is worth noting the HSBC announced a new $3 billion share buyback program after their beat.)

With that background, it looks like the market is undecided early this morning, but is slightly leaning to the Bearish side. All three major index EFTs are not far from Monday’s closing price. DIA has given us the most body in the premarket but is only a quarter of a percent lower than its prior close. For its part, SPY is retesting its T-line (8ema) from above. Both SPY and QQQ are showing more wick than body, indicating indecision, at this point. With QQQ and SPY (barely) above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom of its mid-range, but not yet in the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green this morning. AMD (+0.60%) is leading the gainers while AAPL (-0.52%) is the laggard. NVDA (-0.28%) and TSLA (+0.09%) are neck-and-neck in terms of leading dollar-volume trading. Regardless, it is worth nothing that premarket volume is very light today.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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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Markets opened higher to start the day Friday.  SPY gapped up 0.41%, DIA gapped up 0.38%, and QQQ gapped up 0.58%.  At that point, SPY and QQQ rallied higher for an hour as DIA chopped sideways for the same period.  From there, all three major index ETFs sold off until 2:15 p.m.  Then for the last hour and 45 minutes all three bounced and then fell back to close near the lows.  This action gave us a gap-up, black-bodied, Spinning Top type candle with most of the wick on the top.  It retested from below and failed the test of its T-line (8ema).  At the same time, QQQ printed a gap-up Shooting Star type of candle that crossed back above its T-line.  For its part, DIA gave us a gap-up, large black-bodied, outside day candle that retested the T-line from below and failed.  This happened on average volume in the QQQ and above-below-average volume in SPY and DIA.

On the day, seven of the 10 sectors were again in the red with Utilities (-1.19%) and Financial Services (-1.11%) well out in front leading the way lower.  On the other side, Technology (+0.56%) was by far the strongest sector.  Meanwhile, SPY lost 0.03%, DIA lost 0.62%, and QQQ gained 0.61%.  VXX spiked 4.70% higher to close at 55.29 and T2122 dropped to just outside its oversold territory to the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields rose again to close at 4.24% while Oil (WTI) jumped 2.05% to close at $71.65 per barrel. So, it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

The major economic news scheduled for Friday included the Preliminary Sept. Core Durable Goods Orders, which was up 0.4% (compared to a forecasted decline of 0.1% but down from August’s +0.6%).  On the headline number, Preliminary Sept. Durable Goods was down 0.8% (versus a forecast of -1.1% and flat from August’s -0.8%). Later, Michigan Consumer Sentiment was up to 70.5 (compared to the forecast and Sept. reading of 68.9).  At the same time, Michigan Consumer Expectations were up to 74.1 (versus a forecast and prior reading of 72.9).  On the outlook side, Michigan 1-Year Inflation Expectations were DOWN significantly to 2.7% (compared to a previous value of 2.9%).  Looking even further out, Michigan 5-Year Inflation Expectations stayed flat at 3.0% (with the same 3.0% forecast and prior value).

After the close, E reported misses on both the revenue and earnings lines.

In stock news, on Friday, the Wall Street Journal reported BA is weighing the sale of its space business as part of the process of streamlining and freeing up cash. At the same time, META announced it had signed a partnership with Reuters to use the company’s news content in its AI chatbot.  (Financial terms of the deal were not disclosed.)  Later, NVDA again briefly passed AAPL to become the world’s most valuable company. (Both companies ended the day with roughly a market capitalization around $3.5 trillion.)  MSFT, which had taken that crown in June, closed the session with a $3.18 trillion cap.  Late Friday afternoon, COST recalled private-label salmon products due to listeria risk after a recall from it private meat supplier Acme Smoked Fish Corp. 

In stock legal and governmental news, on Friday, in the UK, London’s High Court ruled in favor of BCS, by reducing a shareholder lawsuit (over misleading investors about its private “dark pool” trading) by more than half.  The ruling reduced the lawsuit amount by $428 million to just under $300 million.  Later, a US District Judge blocked the pending $8.5 billion merger of TPR and CPRI, in a victory for the FTC.  At the same time, a different US District Judge approved a $102 million settlement of the US Justice Dept. civil claim against the owner of the ship that struck the Baltimore Francis Scott Key Bridge, killing six people.  (That amount covered the Federal costs to respond to the wreck and clear the bridge debris. Separately, the state of MD is suing the shipping company for the cost to replace the bridge.) Later, the Nuclear Regulatory Commission announced it has begun the long process of reviewing the restart of CEG’s Three-Mile Island nuclear power plant (after CEG signed a deal to sell the power it would produce to MSFT).

Elsewhere, LYFT agreed to pay $2.1 million to settle FTC charges that it misled prospective drivers about how much money they could earn.  Later, a federal jury found that MASI had violated two AAPL patents with its smartwatches, but did not violate other patents as AAPL had claimed. The damages awarded were a paltry $250 (not $250k, or $2.50 million…just $250, which is an infinitely small portion of what AAPL spent on the suit). This was AAPL’s countersuit to MASI’s 2022 US Intl. Trade Commission complaint that had blocked the import of Apple watches and forced AAPL to remove certain technology before resuming import.  After the close, DAL filed suit against CRWD in GA state court in relation to the global systems outage DAL had suffered in July.

In miscellaneous news, on Friday, there were separate reports the China had targeted the phones of senior members of Vice President Harris’ campaign and her opponent, in what was called a cyber-espionage attack.  This was done by penetrating the VZ phone network.  Elsewhere, the Panama Canal reported a 9.5% increase in annual profit to $3.45 billion despite a severe drought that reduce the number of vessels allowed to transit the canal.  (The canal handled 423 million tons of cargo with an average of 27.3 ships per day transiting the canal.  This was down from 36 ships per day the previous year.  However, a 5% decrease in operating costs and price increases provided for a strong year.) 

Meanwhile, the state of NM released a study on Friday regarding proposed “setback” regulations (which would prevent drilling within 2,250 feet from residential, educations, health or correctional institutions or within 650 feet of streams, lakes, ponds, wetlands, or irrigation infrastructure). The study indicated the proposed regulations would impact 15% of new wells.  (NM is the second-largest oil producing state in the US.  The study said this could eventually curtail up to 5.4% of the stats’s potential future oil output.  This refers to a reduction of increases.) Finally, on Sunday, Japan’s Liberal Democratic Party (which had been in power since 2009) suffered major setbacks and lost its majority in Parliament during Sunday snap elections. (The LDP and its coalition partner only secured 215 seats, with 233 needed for a majority. Prior to Sunday, the LDP and its junior partner party had 279 seats.)  This deals a major blow to PM Ishiba who was elected from withing the LDP and only took office on October 1^st.

In other war news, South Korea increased its estimate of North Korean troops sent to Russia to fight against Ukraine to 12,000.  (The US has said it has proof of 3,000 North Korean troops in training.)  Meanwhile, on Saturday, Norway confirmed that 1,500 of the North Koreans have already been deployed to the lines in the Kursk region. Maybe buoyed by the new source of troops, on Sunday Russia’s Putin said “there would be no trade” to end the war.  Most analysts say this means he isn’t interested in negotiations. Still, less than a week before, Putin said he’d consider any deal that acknowledged the situation on the ground (in other words, any deal that gives Russia all the land it has taken since 2014…there was no word whether that means he’s willing to give up the small area of Kursk now held by Ukraine).

Overnight, Asian markets were mixed but leaned toward the green side.  Japan (+1.82%), South Korea (+1.13%), and Shanghai (+0.68%) led the gainers.  Meanwhile, Thailand (-0.71%) and Taiwan (-0.64%) paced the losses. In Europe, the picture redder at midday with only three of the 14 exchanges in the green. The CAC (+0.18%), DAX (-0.20%), and FTSE (-0.31%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures point toward a gap higher to start the day. The DIA implies a +0.41% open, the SPY is implying a +0.49% open, and the QQQ implies a +0.63% open at this hour.  At the same time, 10-Year bond yields are up to 4.258% and Oil (WTI) has plummeted 5.89% to $67.56 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include ARLP, CX, CNP, FMX, ON, and PHG.  Then, after the close, AMKR, BRO, CDNS, CWH, CR, CVI, ESI, EHC, FFIV, FLS, F, LEG, QUAD, SBAC, SKY, UCTT, VFC, WELL, and WM report.

In economic news later this week, on Tuesday, we get Preliminary September Goods Trade Balance, Preliminary September Retail Inventories, October Conference Board Consumer Confidence, September JOLTS Job Openings, and API Weekly Crude Oil Stocks.  Then Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Tuesday, we hear from ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, ZBRA, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN.  Then Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, CX and PHG missed on revenue while beating on earnings.  However, ARLP and CNP missed on both the top and bottom lines.

With that background, it looks like the Bulls are indecisively in-charge early in all three major index ETFs. All three opened the premarket higher, but have printed indecisive candles (mostly wick) since that open. SPY is back above its T-line (8ema) leaving only DIA below its own T-line. With that said, two of the three major index ETFs above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back at the bottom of its mid-range, but not yet oversold. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, all 10 are in the red this morning. GOOGL (+2.17%) is leading the rally while TSLA (+0.79%) is the leading dollar-volume trader, nearly doubling the normal biggest dog, NVDA (+1.08%) in dollar-volume traded so far this morning.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 Tuesday, markets gapped down at the open.  SPY gapped down 0.44%, DIA gapped down 0.47%, and QQQ gapped down 0.56%. From there, all three major index ETFs slowly rallied to recross their gaps, reaching the highs of the day about 2:05 p.m.  From there, all three pulled back modestly before rallying back toward the highs, only to take profits the last 5 minutes.  This action gave us white-bodied, Spinning Top type candles in all three major index ETFs.  All three retested their T-line (8ema), SPY and QQQ from above and DIA from below…and all three passed that test, closing above.  This happened on below average volume in all three major index ETFs yet again.

On the day, eight of the 10 sectors were in the red with Industrials (-0.91%) out in front, leading the market lower.  On the other side, Consumer Defensive (+0.43%) was well out in front, holding up better than other sectors.  Meanwhile, SPY lost 0.05%, DIA lost 0.01%, and QQQ gained 0.11%.  VXX was just on the red side of flat to close at 51.15 and T2122 dropped again but remains just outside of oversold territory at the bottom of its mid-range at 22.96.  At the same time, 10-Year bond yields rose to close at 4.206% while Oil (WTI) popped 2.38% to close at $72.24 per barrel. So, the Bears gapped the whole market lower, but the Bulls immediately stepped in to buy the dip and slowly bring all three major index ETFs back to flat.

The major economic news scheduled for Tuesday was limited to the API Weekly Crude Oil Stocks report, which showed a larger inventory build than was expected at +1.643 million barrels (compared to a forecasted +0.700 million barrels and the prior week draw down of 1.580 million barrels).

After the close, AGR, EWBC, ENVA, MTDR, PKG, RHI, STX, LRN, TXN, VLRS, and VMI all reported beats on both revenue and earnings. Meanwhile, BKR, CSGP, RRC, PFSI, and WFRD missed on revenue while beating on earnings. However, CNI and NBR missed on both the top and bottom lines.

In stock news, on Tuesday, TGT announced it was lowering the price of 2,000 items ranging from snacks to cold medicine ahead of the holiday season. (The bet is that by lowering the cost of essentials, shoppers will also buy higher-ticket gift items while they are in-store.)  At the same time, Reuters reported that AMZN has imposed severe price caps on what merchants can charge for items in its new low-cost storefront aimed at competing with Temu.  (These include $20 for sofas, but go on to prescribe max prices for 700 items.)  Later Reuters also reported that FIVN is under pressure by a second activist investor (Legion Partners) who is pushing for cost cutting and board seats. At the same time, CG announced it has dropped out of the bidding for the warship unit of German shipbuilder TYEKY (Thyssenkrupp).  Later, AMZN said they were ending same-day delivery service from brick-and-mortar retailers. This ends the program that was touted as “Amazon Today.” The bulk of the deliveries will end by December 2.

Elsewhere, STLA’s Ram brand CEO Feuell told a Reuters event that the company was expanding its Mexican truck plant as a “relief valve” for US factories reaching capacity soon.  (She avoided answering why the company was expanding capacity in Mexico rather than the US, but said the measure “was not a cost-cutting move.”)  At the same time, Reuters also reported that ALTR is exploring a potential sale with potential bidders being competitors PTC and CDNS. Later, WMT announced it will begin delivering prescriptions along with groceries as a single order as quickly as 30 minutes.  (Members of WMT’s $98 membership will get the service for free while non-members will pay $9.95 per delivery.) SJM announced the sale of its Voortman cookie brand to Second Name Brands for $305 million in cash.  After the close, SBUX suspended its annual forecast while the new CEO prepares a turnaround plan.

In AI news, on Tuesday, BLK announced it is tapping into the AI frenzy with two new AI-focused ETFs BAI (iShares AI Innovation and Tech Active) and TEK (iShares Technology Opportunities Active ETF).  Later, Reuters reported that QCOM and GOOGL had signed a partnership to offer chips and software to allow automakers to develop their own AI voice assistants for drivers. At the same time, AMZN-backed AI startup Anthropic announced “AI agents” built to enhance productivity by automating complex tasks.  This is a direct competitor to MSFT’s Co-Pilot-based Agents and yet to be announced offerings from GOOGL and META.

In stock legal and governmental news, on the NHTSA announced HMC 780k vehicles in the US over fuel pump crack concerns.  At the same time, RBLX announced it would open an office in Turkey and hire local-language moderators if the country restores access to its platform.  (A Turkish court blocked RBLX from the country to “ensure protection of our children” in August.)  Later, US Energy Sec. Granholm said the dept. was working as fast as it can to finalize $1.7 billion in EV conversion grants, including $500 million for GM and $585 (two grants for two projects) million for STLA.  At the same time, the FAA finalized comprehensive pilot training and certification rules for flying air taxis such as those from JOBY and ACHR. Later, the SEC approved options listings for three Bitcoin ETFs (not 11 as previously reported).

Elsewhere, the SEC settled fraud charges with shortseller Citron Research associate Left for $1.8 million.  Later, TSM notified the US Commerce Dept. that one of its chips had been found in Huawei’s top-end (widely seen as the most advanced AI smartphone) phone.  This is a violation of US export restrictions, likely through strawman firms who acted as the original buyer of the TSM chips.  After the close, the CDC announced an E, coli outbreak had been linked to MCD quarter pounder burgers that have resulted in one death, 10 hospitalizations, and dozens of illnesses.  (MCD fell 9% in after-hours trading.)  At the same time, a US District Judge ruled in favor of META in a lawsuit over child safety claims due to inadequate disclosures.  Later, WMT agreed to pay $7.5 million to resolve charges of illegally disposing of hazardous medial waste into CA landfills.

In miscellaneous news, on Tuesday, the New York City Comptroller announced a plan to divest NYC pension funds from fossil fuel mid-stream and downstream companies.  Meanwhile, the New York Times reported that JPM CEO Dimon would consider a role in government if Vice President Harris wins the election, but is not making his position known publicly for fear of retribution by her disgraced opponent. Elsewhere, oil-industry analysts pointed out a unique risk factor for CA. The US is by far the world’s largest oil producer (by more than 3 million barrels per day). However, CA has no pipeline access oil from Texas, mid-western, or Ohio Valley oil fields. So, about 60% of CA oil demand is served by oil imports from the Middle East. As a potential Middle East war (and oil flow disruption) lurks ahead of Israeli attacks on Iran, that raises the specter of major cost increases or shortages in CA.  (Even the US Strategic Petroleum Reserve oil if far from CA, located along the TX and LA Gulf Coasts.)  Finally, the IMF said Tuesday that the global battle on post-pandemic inflation is “largely won.”  In an upbeat assessment, the IMF World Economic Outlook said, “In most countries, inflation is now hovering close to central bank targets… The decline in inflation without a global recession is a major achievement.”

In Middle East news, on Tuesday, Israeli attacks in Gaza and Lebanon continued. The IDF seems to be targeting healthcare facilities and homes more. The water supply at the Jabalya refugee camp in Northern Gaza ran out entirely, leaving thousands with no water at all. At the same time, a major Palestinian hospital (the Kamal Adwan Hospital) reported it was completely out of blood and medical supplies as an IDF siege of the facility continues.  Further North, Lebanon reported the most deaths in a single day since the most recent Israeli bombing and invasion campaign began (63 deaths and several hundred wounded).  This included bombing strikes on four Beirut hospital and medic facilities. In addition, several individual ambulances were also blown up.  (All medical facility attacks are war crimes.)  Meanwhile, US Sec. of State Blinken met with Israeli PM Netanyahu for two hours as Blinken tried to get the Israelis to agree to a ceasefire. Sourced, but un attributed, post-meeting reports indicate Israel has rejected the idea of ceasefire again, but will allow more humanitarian aid into Gaza and Lebanon, though not as much as the US and world have demanded. (With Israel completely in control on the battlefield with superior firepower and resources, they want to press their advantage and kill as many of their enemies as possible while they can, regardless of civilian casualties.)

In mortgage news, rates have spiked in recent weeks but remain at 6.52% on average nationally for a 30-year, fixed-rate, conforming loan. Demand for refinance mortgages dropped 8% last week compared to the prior week. Applications for a new home purchase mortgage fell 5%.  Together this meant that total mortgage demand was down 6.7% on the week versus the week prior. 

Overnight, Asian markets were mixed with five of the 12 exchanges in the green.  Thailand (-1.24%) was by far the biggest loser while Hong Kong (+1.27%) was by far the biggest winner.  Meanwhile, in Europe, the bourses are heavily in the red with just two of 14 exchanges showing green at midday.  The CAC (-0.64%), DAX (-0.22%), and FTSE (-0.41%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.47% open, the SPY is implying a -0.20% open, and the QQQ implies a -0.30% open at this hour.  At the same time 10-Year bond yields are up again to 4.228% and Oil (WTI) have dropped 2.15% to $70.20 per barrel in early trading.

The major economic news scheduled Wednesday includes September Existing Home Sales (10 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.), and the Fed Beige Book (2 p.m.).  We also hear from Fed Governor Bowman (9 a.m.).  Major earnings reports scheduled for before the open include APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, and WGO.  Then, after the close, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.

In economic news later this week, on Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, we hear from ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, ATLKY, BSX, CME, KO, DB, EVR, HLT, LII, EDU, NTRS, ROP, TMHC, TDY, TRU, VRT, and WAB all reported beats on both the revenue and earnings lines.  Meanwhile, T, AVY, KBR, LAD, LYG, COOP, ODFL, TMO, and TNL missed on revenue while beating on earnings.  On the other side, GEV, NEE, BPOP, and SF beat on revenue while missing on earnings.  However, BA, CSTM, GD, and WGO missed on both the top and bottom lines.

With that background, it looks like the Bears are in charge again early in all three major index ETFs. All three opened the premarket lower and have traded down since then. SPY is retesting its T-line (8ema) from above while DIA is moving away from its own T-line to the downside. With that said, two of the three remain above (barely) their T-line again. So, the broader market short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back in the lower end of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the red this morning. MSFT (+0.50%) is holding up best. However, the biggest dog, NVDA (-0.64%) is leading the majority lower in price move on three times as much dollar-volume as the next closest ticker so far this morning.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 opened lower on Monday prior to DIA diverging to the downside.  SPY opened down 0.11%, DIA opened 0.05% lower, and QQQ gapped down 0.22%.  At that point, QQQ rallied sharply to recross the opening gap and reach the high of the day at 10:20 a.m. before selling off sharply again, finding the low of the day at 11:30 a.m.  From there, QQQ slowly rallied slowly back up across the gap before meandering sideways around Friday’s closing level and closing on the plus side.  Meanwhile, after its open, SPY slowly meandered back up across the opening gap to find its high of the day at 10:20 a.m. Then it traded in-sync with QQQ, selling off hard to reach the low of the day at 11:35 a.m. and then slowly drifting higher but never quite getting back to its opening level.  For its part, after the open, DIA immediately sold off sharply until 11:30 a.m. and then traded sideways along the lows the rest of the day. This action gave us divergent daily candles. SPY printed a black-body Doji that retested its T-line (8ema) and passed that test.  DIA gave us a large, black-bodied candle that also retested its T-line and closed just barely above.  Finally, QQQ printed a white-bodied candle (that retested and passed the test of its T-line) that was about half lower wick.  This happened on below average volume in all three major index ETFs.

On the day, nine of the 10 sectors were in the red with Communication Services (-1.25%) out in front, leading the market lower.  On the other side, Technology (+0.16%) was the only sector in the green.  Meanwhile, SPY lost 0.16%, DIA lost 0.76%, and QQQ gained 0.19%.  VXX was just on the plus-side of flat to close at 51.35 and T2122 dropped all the way back into the bottom third of its mid-range to close at 33.14.  At the same time, 10-Year bond yields fell to close at 4.192% while Oil (WTI) climbed 1.68% to close at $70.38 per barrel. So, the Bulls were in-charge pretty much all day on what was also an indecisive day.  NFLX (+11.09%) was among the leaders of this charge after its blowout earnings Thursday evening.  (For the week, SPY gained 0.86%, DIA gain 0.91%, and QQQ gained 0.22%.  This was the sixth-straight week of gains for all three major index ETFs.)

The major economic news scheduled for Monday was limited to the September US Leading Economic Indicators Index, which came in lower than expected at -0.5% (compared to a -0.3% forecast and a -0.3% August reading).

In Fed news, on Monday, Dallas Fed President Logan indicated she sees both more rate cuts and Balance Sheet shrinkage ahead. She said, “The economy is strong and stable, but, meaningful uncertainties remain in the outlook.” Logan continued, “If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals.” Regarding Quantitative Tightening, she said, “At present, liquidity appears to be more than ample” … “one sign liquidity remains in abundant supply, and not merely ample, is that money market rates continue to generally run well below the Fed’s interest on reserve balances rate.”  She went on to say that the FOMC should be able to tolerate normal, temporary volatility in the money markets. However, she went on to say that, “reducing the (reverse repo) interest rate could incentivize participants to return funds to private markets.”  However, Logan concluded by saying that getting mortgage bonds off the Fed Balance Sheet is “not a near-term issue in my view.” (i.e. not a massive priority).

Later, Minneapolis Fed President Kashkari said he also expects modest rate cuts ahead.  Kashkari said, “Right now I see modest cuts over the next several quarters.”  However, he also indicated that a weakening of the labor market might need to be met with stronger cuts.  He said, “If we saw a weakening, like real evidence that the labor market is weakening quickly, then that would tell me, as one policymaker, ‘Hey, maybe we ought to bring down our interest rate more quickly than I currently expect,’” Kashkari continued, “We want to keep the labor market strong and we want to get inflation back down to our 2% target.”  He then concluded with the normal Fed boiler plate statement that “interest rates will depend on the data.”  Elsewhere, Kansas City Fed President Schmid said that he supports “a cautious and deliberate” approach to rate cuts.  Schmid said, “While I support dialing back the restrictiveness of policy, my preference would be to avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility.” He continued, “Lowering rates in a gradual fashion would provide time to observe the economy’s reaction to our interest rate adjustments and give us the space to assess at what level interest rates are neither restricting nor boosting the economy.”  Finally, San Francisco Fed President Daly said Monday that she has not seen anything to suggest the FOMC would stop cutting interest rates.  She said interest rates are “absolutely still high enough that they are restraining the economy.”

After the close, BOKF, CADE, NUE, SAP, and ZION all reported beats on both the revenue and earnings lines. Meanwhile, AGNC, ARE, SIGI, and WTFC beat on the revenue line while missing on earnings.  On the other side, MEDP and WRB missed on revenue while beating on earnings.  However, TFII missed on both the top and bottom lines.

In stock news, on Monday, RCDOF announced it plans to divest its Defense business in order to focus on Environmental Consulting.  (No details were announced, but they recently got a $385 million US Army contract extension that runs through 2027.) Later, XLMDF announced it has a conditional agreement to sell its North American business to SRAD for $30 million in cash ($20 million up front and up to $10 million based on unit performance). At the same time, SNY said it has entered exclusive talks to sell a 50% controlling stake in its consumer health unit to private equity firm Clayton Dubilier & Rice. (The unit had been valued at $17 billion earlier this year.)

Meanwhile, UBS announced it agreed to a deal to sell a 50% stake in the Swisscard business acquired in the CS acquisition to AXP.  (The terms of the deal were not disclosed.) At the same time, DIS announced it will appoint former MS CEO Gorman as the new DIS Chairman in as of January. Later, SAN announced it has launched a digital bank in the US to help it fund over $30 billion in auto lending and broaden its retail banking reach in the US market.  At the same time, shipping giant AMKAF (Maersk Moeller) raised its profit outlook on what it called a “strong shipping market.”  Later, according to the Wall Street Journal, activist investor JCP Investment Mgmt., which has a 2% stake in the company, has issued a letter urging CAKE to spinoff three of its smaller brands (North Italia, Flower Child, and Culinary Dropouts).

In AI news, LUMN announced a strategic partnership with META aimed at increasing network capacity to support the META AI infrastructure. Later, HON announce it had signed a deal with GOOGL to bring the latter’s AI technology to the industrial data market.  At the same time, IBM announced it launched a new AI model called Granite 3.0. (The model is open source, but IBM sells a paid version to be run on enterprise data centers.) Later, MSFT announced they will allow customers to build autonomous artificial intelligence agents using its Copilot Studio application starting in November.  (This is a move to compete with CRM, which is already offering such AI agents for particular business tasks.) At the same time, QCOM announced that it is bringing chips designed for laptop CPUs to its mobile phone offerings. (The idea is to make phone processing more powerful to support AI.)  Meanwhile, MEAT announced a batch of AI models, including one specifically created to check the quality of other AI models.

In stock legal and governmental news, on Monday, Nigeria blocked the SHEL sale of its entire Nigerian onshore and shallow-water operations for $2.4 billion.  However, at the same time, Nigeria approved a similar deal for the sale of XOM’s operations for $1.28 billion.  At the same time, the High Court of London ruled that BHP is “cynically trying to avoid responsibility” for Brazil’s worst environmental disaster (which came after a dam holding BHP mining waste collapsed).  This came as the $47 billion lawsuit began its final phase with 600k Brazilians, 46 local governments, and about 2k Brazilian companies as the plaintiffs. (BHP had argued the case should be thrown out because it had paid almost $8 billion to everyone effected in Brazil.) 

Elsewhere, LLY filed suit against three more medical spas (online vendors) of products that claim to contain the main ingredient of its popular Zepbound weight-loss medicine.  At the same time, investment advisor WisdomTree Asset Mgmt. agreed to pay $4 million to settle SEC charges of misleading marketing of three funds (greenwashing).  Later, movie studio Alcon Entertainment sued TSLA and WBD, alleging the defendants used images from the file “Blade Runner 2049” in the promotion of TSLA’s new cycbercab. Meanwhile, a bipartisan group of dozens of Congressmen (52 in total) urged the White house to toughen the sanctions on Russia and specifically questioned sanction exceptions for oilfield services firm SLB.

In miscellaneous news, on Monday, South Korea and Ukrainian intelligence services confirmed North Korea has sent 10k troops to fight on behalf of Russia.  This includes some North Korean special forces troops.  Elsewhere, the disgraced ex-President continued to spread lies and long-debunked conspiracy claims about FEMA hurricane relief efforts at campaign events in NC on Monday.  (Once again, FEMA and NC officials had to try to correct the serial-liar’s spew in hope people will not forgo (and as was recently seen) even hinder the recovery.)  Meanwhile, his opponent, Vice President Harris, called for an unspecified increase to federal minimum wage levels in campaign events in PA, MI, and WI.  The events held alongside several Republican supporters (like former Congresswoman Liz Cheney), who support Harris but did not comment on Harris’ minimum wage call. At the same time, the FTC rule banning fake online reviews went into effect Monday. (The rules allow the agency to issue penalties of up to $51,744 per violation for knowing violations of the rule.)  Finally, Germany’s six-month trial with a four-day workweek has ended.  However, Bloomberg reports that many of the 45 businesses that participated in the experiment will not go back.  (73% of the participating companies said they were prepared to either extend the experiment or make the change permanent.)

In Middle East news, on Monday, Israel continued its attacks on both Gaza and Lebanon.  In the latter, Israel said it had bombed 32 targets ranging from the North of the country to the South.  However, the largest batch of Israeli bombing strikes was in Beirut where numerous buildings were collapsed.  This included the headquarters of what Israel (and the US) called Hezbollah’s bank (Al-Qard Al-Hassan, which translates to “benevolent loan”) which Israel also designated as a “terrorist organization.”  (It is worth noting that while the bank has links to Hezbollah, it also is involved in Lebanese government, NGO/charity, and civilian banking.)  Meanwhile, US intelligence services said they were investigating online leaks of US surveillance data showing preparations for Israel’s retaliatory strike on Iran.  (The leaked information included satellite images and written materials showing Israel is preparing long-range missiles and drone attacks.  The information also said Israel would not use a nuclear weapon.  The latter had not even been part of public discussion given there were no casualties and limited damage from Iran’s missiles and those were in response for Israeli bombings in Iran.)

Overnight, Asian markets were mostly in the red with just the three Chinese exchanges in the green.  Japan (-1.39%), India (-1.25%), and Thailand (-1.24%) paced the losses.  In Europe, with the lone exception of Oslo (+0.37%) we see red across the board at midday.  The CAC (-0.76%), DAX (-0.35%), and FTSE (-0.75%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a second straight down open.  The DIA implies a -0.44% open, the SPY is implying a -0.45% open, and the QQQ implies a -0.51% open at this hour.  At the same time, 10-Year bond yields have hit 4.20% while Oil (WTI) popped another 0.94% to $71.22 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to the API Weekly Crude Oil Stocks report (4:30 p.m.).  We also hear from Fed member Harker (10 a.m.).  Major earnings reports scheduled for before the open include MMM, AOS, DHR, FI, FCX, GE, GM, GPC, HRI, IPG, IVZ, KMB, LMT, MCO, NSC, PCAR, PNR, PM, PII, PHM, DGX, RTX, SHW, and VZ.  Then, after the close, AGR, BKR, CNI, CSGP, EWBC, ENVA, MTDR, NBR, PKG, PFSI, RRC, RHI, STX, LRN, TXN, VMI, VLRS, and WFRD report.

In economic news later this week, on Wednesday, September Existing Home Sales, EIA Weekly Crude Oil Inventories, and the Fed Beige Book.  We also hear from Fed Governor Bowman.  On Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Wednesday, APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, WGO, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.  On Thursday, we hear from ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, MMM, BKU, DHR, FI, GE, GM, IPG, IVZ, MCO, PNR, PHM, DGX, and RTX all reported beats on both the revenue and earnings lines.  At the same time, AOS, KMB, PM, and VZ all missed on revenue while beating on earnings.  On the other side, HRI beat on revenue while missing on earnings.  However, GPC, PII, and SHW missed on both the top and bottom lines.

With that background, it looks like the Bears are in charge again early in all three major index ETFs. SPY and QQQ are again retesting their T-line (8ema) while DIA gapped down through its 8ema. All three are also mostly black body with a lower wick at this point. With that said, two of the three remain above their T-line with the third gapping below. So, the short-term trend remains modestly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back in the lower half of its mid-range. So, markets have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, nine of the 10 are in the red this morning. TSLA (-0.70%) leads on price move lower. The biggest dog, NVDA (+0.19%) is the only green member of the big dogs and has treaded 4.5 times as much dollar-volume as the next closest ticker so far this morning. (For what its worth, this has been typical of bullish days this year.)

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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, markets again diverged at the open, but then got back in-sync. SPY gapped up 0.30%, DIA opened 0.02% lower, and QQQ gapped up 0.52%. After that open, SPY and QQQ chopped along sideways above that opening level and closed in the green. Meanwhile, after the flat open, DIA immediately traded sharply lower for 25 minutes. At that point, it started a steady bullish trend that brought it back above the prior close by 12:30 p.m. before joining SPY and QQQ in a sideways chop just into positive territory. This action gave us indecisive, white-bodied, Doji or small-body Spinning Top candle in all three major index ETFs.  SPY and QQQ were both Bullish Harami candles.  DIA also printed a new all-time high and both SPY and DIA closed at new all-time high closes.  This all happened on below-average volume in all three major index ETFs.

On the day, nine of the 10 sectors were in the green with Basic Materials (+0.84%) and Consumer Cyclical (+0.82%) out in front, leading the market higher.  On the other side, Energy (-0.40%) was the only sector in the red.  Meanwhile, SPY gained 0.38%, DIA gained 0.04%, and QQQ gained 0.66%.  VXX fell 2.36% to close at 51.21 and T2122 climbed a bit further, but remains in the bottom half of its overbought territory to close at 83.90.  At the same time, 10-Year bond yields fell to close at 4.079% while Oil (WTI) dropped 1.87% to close at $69.34 per barrel. So, the Bulls were in-charge pretty much all day on what was also an indecisive day.  NFLX (+11.09%) was among the leaders of this charge after its blowout earnings Thursday evening.  (For the week, SPY gained 0.86%, DIA gain 0.91%, and QQQ gained 0.22%.  This was the sixth-straight week of gains for all three major index ETFs.)

The major economic news scheduled for Friday was limited to Preliminary September Building Permits came in lower than expected at 1.428 million (compared to a forecast of 1.450 million and the August 1.470 million value). At the same time, Preliminary September Housing Starts were a little better than predicted at 1.354 million (versus a forecast of 1.350 million but down from August’s 1.361 million reading).  This was a decrease of 0.5% month-on-month. 

In Fed news, on Friday, Atlanta Fed President Bostic made the case for the FOMC being patient in its rate reductions.  Bostic said, “I’m not in a rush to get to neutral.” He continued, “I don’t want us to get to a place where inflation stalls out because we haven’t been restrictive for long enough, so I’m going to be patient.”  Bostic went on to say, “If the economy continues to evolve as it does — if inflation continues to fall, labor markets remain robust, and we still see positive production — we will be able to continue on the path back to neutral.”  He also said that he is expecting inflation (which is currently at 2.2% according to the Fed’s preferred measure) to get back to 2% by the end of 2025.  That being his belief, he said “that should be sort of the timetable for when we should get to neutral.” All this said, Bostic said he expects the Fed to deliver two quarter point cuts in the last two FOMC meetings of the year.  For what it’s worth, Bostic also said he has never expected a US recession, saying “I’ve always felt that there was enough momentum in this economy to absorb the restrictiveness of our policy and drive inflation back down to its 2% target. I’m grateful that that’s been playing out so well.”

In stock news, on Friday, the Wall Street Journal reported that activist investor Jana Partners (which has a 5% stake) is planning to pressure LW to explore a potential sale of the $10 billion French fry maker.  At the same time, USM announced it has agreed to sell some specific spectrum licenses to VZ for $1 billion.  Later, Reuters reported that the board of Japan’s Fuji Soft had agreed to continue to support a $3.72 billion buyout by KKR (despite having received a higher offer from BCSF).  At the same time, CNBC reported that STLA will close and sell its large vehicle testing facility in AZ by the end of the year. (The 4,000-acre facility was bought from F for $35 million in 2007.)  There are only 41 employees at the facility.  At the same time, SPR announced it was furloughing 700 workers for 21 days due to the ongoing strike at BA, which has eaten up their cash reserves and space for storing inventory ready for delivery to BA. 

Elsewhere, Reuters reported that SAVE reached an agreement with its credit card processor to extend its debt refinancing deadline two months to December 23.  At the same time, Bloomberg reported that CI has resumed merger talks with rival HUM. (The companies had abandoned those discussions in late 2023.) Meanwhile, Reuters reported that the union representing striking BA workers said it is again engaged negotiations with the company, with Acting Labor Sec. Su performing as the intermediary.  This is the first resumption of discussions since BA withdrew its last proposal and walked away from negotiations 10 days prior. Later, Reuters reported that T ratified agreements with the CWA union.  The contracts cover 23k employees across the Southeast and West of the US.  On Saturday, BA and the Machinists Union announced they had reached a tentative deal and the 33k striking union workers will vote on a package including a 35% raise over four years, a $7k signing bonus, and higher 401k company contributions.

In stock legal and governmental news, on Friday, Reuters reported that “Big Tobacco” (PM, BTI, and JAPAF) are close to a $23.6 billion settlement of a long-running lawsuit in Canada.  (The suit, which the companies lost, alleged they had known of the cancer caused by smoking since the 1950s, but had hidden that fact and continued to market their products as safe.)   If approved by the court, the mediator proposed settlement would be the largest of its kind outside the US.  Later, the FDA placed a “partial hold” on a Phase 3 clinical trial of a BNTX lung cancer drug.  (The hold was due to “varying results” between different populations in the trial.)  At the same time, after consultation with the FDA, GILD announced it was voluntarily withdrawing its bladder cancer drug Trodelvy after the drug failed to meet the main goal of a trial. Later, the NHTSA verified news reports from Thursday, announcing it was investigating 2.4 million TSLA vehicles equipped with “Full Self-Driving” after four more reported collisions, including another fatality. 

Elsewhere, the FAA announced it will open a new safety review into BA as the result of an in-flight emergency in January.  (The probe is expected to take three months to complete.)  Later, the US State Dept. approved the sale of $360 million of RTX-made tactical missiles to Japan.  At the same time, a MA judge rejected a motion by META.  He ruled that META must face a lawsuit alleging the company purposefully deployed features designed to addict children and deceived the public about the mental health dangers of its social media platform to teenagers.  Later, a federal judge in CA granted GOOGL’s request to temporarily pause his order directing the company to overhaul its Android app store (Google Play Store) to give consumers more choice over how they download and pay for apps. The delay will allow time for the 9^th US Circuit Court of Appeals to consider GOOGL’s request for appeal.  At the same time, the SEC granted “accelerated approval” to 11 ETFs to list and trade options tied to the spot price of Bitcoin.  The ETFs will trade on the NYSE.  Meanwhile, a federal jury in Ca ruled WDC must pay $315.7 million for patent infringement to private company SPEX Technologies.

In miscellaneous news, on Friday, GS released a report indicating that last week saw hedge funds buying tech stocks (chips and chipmaking equipment) at the fastest pace in five months. (GS is privy to this data since its Prime brokerage service is a primary services provider to hedge funds.) GS said this was the third straight week hedge funds were net buyers of these stocks.  Elsewhere, Chinese dronemaker DJI filed suit against the US Dept. of Defense, challenging its listing as a company working with the Chinese military (subject to import restrictions).  Meanwhile, CNBC reported Friday that Port of Los Angeles (the country’s fifth-largest port) is now experiencing the largest rail delays in more than two years. (Rail delays means the railroads are unable to keep up with the volume of inbound containers.  So, they containers stack up at the port.) The primary causes cited were increased volumes from shipping that was rerouted to LA when East Coast and Gulf Coast ports were expected to be striking, increased traffic from ships that had to avoid the Red Sea and Suez Canal, and increased volumes from holiday merchandise.  As of now, containers are waiting an average of nine days to leave the port via rail after unloading from ships.

In Middle East news, on Friday, following an investigation, the UN accused Israeli settlers from killing civilians and cutting down Palestinian olive groves in the occupied West Bank.  The Humanitarian Office of the UN called the 32 attacks “war-like” tactics. (Israel said it has suspended the officer in charge of the IDF in that area, pending its own internal investigation into allowing illegal settlers to commit violence under the protection of IDF forces.) On Saturday, Hezbollah fired 20 more rocket salvos into the north of Israel with IDF saying they were intercepted. Hezbollah also launched a single drone attack on PM Netanyahu’s “holiday home” (although the PM was not at that location). In retaliation, Israel pounded Beirut and Southern Lebanon as well as the Bekaa Valley (50 miles north of Beirut).  This included bombings of the Lebanese Christian-majority town of Jounieh. Meanwhile, Israeli attacks in Gaza killed at least another 35 people and IDF forces laid siege to three Gaza hospitals.  Israel also dropped leaflets saying Hamas would no longer be allowed to rule Gaza. On Sunday, Israel bombed a refugee building in Northern Gaza, kill another 100.  Then Sunday night and early Monday, Israeli PM Netanyahu called a meeting of his top aides to discuss their next strike on Iran. For now, the oil markets still seem as much concerned with Chinese demand concerns more than disruption to Middle Eastern oil supplies. However, the preparations for Israel’s strike on Iran may change that balance.

Overnight, Asian markets were mixed with six green and six red exchanges. Shenzhen (+1.09%) led the gainers while Hong Kong (-1.57%) paced the losses.  In Europe, the picture is much more or a red hue with 13 of the 14 bourses below break-even at midday.  The CAC (-0.95%), DAX (-0.95%), and FTSE (-0.25%) lead the region lower in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a down start to the week.  The DIA implies a -0.22% open, the SPY is implying a -0.34% open, and the QQQ implies a -0.60% open at this hour.  At the same time, 10-Year bond yields have spiked to 4.136% and Oil (WTI) is up 2.17% to $70.72 per barrel in early trading.

The major economic news scheduled for Monday is limited to September US Leading Economic Indicators Index (10 a.m.).  We also hear from Fed members Kashkari (1 p.m.) and Daly (5:40 p.m.). The major earnings reports scheduled for before the open are limited to KSPI and LU. Then, after the close, ARE, BOKF, LOGI, MEDP, NUE, SAP, SIGI, TFII, WRB, WTFC, and ZION report.

In economic news later this week, on Tuesday we get API Weekly Cride Oil Stocks. We also hear from Fed member Harker.  Then Wednesday, September Existing Home Sales, EIA Weekly Crude Oil Inventories, and the Fed Beige Book.  We also hear from Fed Governor Bowman.  On Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Tuesday, we hear from MMM, AOS, DHR, FI, FCX, GE, GM, GPC, HRI, IPG, IVZ, KMB, LMT, MCO, NSC, PCAR, PNR, PM, PII, PHM, DGX, RTX, SHW, VZ, AGR, BKR, CNI, CSGP, EWBC, ENVA, MTDR, NBR, PKG, PFSI, RRC, RHI, STX, LRN, TXN, VMI, VLRS, and WFRD.  Then Wednesday, APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, WGO, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.  On Thursday, we hear from ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, SDVKY beat on both the revenue and earnings lines. Meanwhile, LU missed on revenue while coming in in-line on earnings.

With that background, it looks like the Bears are in charge early in all three major index ETFs. QQQ gapped a bit lower while SPY and DIA opened roughly flat in the premarket. However, all three have sold off since that point and are printing larger black-body candles in the early session. QQQ is retesting its T-line (8ema) from above. Two of the three remain above their T-line (8ema) with the third testing a rising 8ema. So, the short-term trend remains modestly bullish. The mid-term and longer-term trends are also strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). However, the T2122 indicator is still inside the lower edge of its overbought territory. So, markets have room to run either direction, but the Bears have more slack to work with again today. With regard to those 10 big dog tickers, all 10 are in the red this morning. TSLA (-1.23%) leads on price move lower. The biggest dog, NVDA (-0.64%) has traded a bit more than twice the next closest ticker in terms of dollar-volume traded.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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