Markets opened basically flat on Tuesday (the DIA did gap a third of a percent higher) and then the 3 major indices ground sideways with a slight trend.  As a result, SPY printed a Doji (but at a new all-time high close), the DIA printed a black inside candle closing near the low with an upper wick, and the QQQ printed another nice white candle closing at the highs and at a new all-time high close. Semiconductors led the QQQ higher as SWKS, XLNX, AMD, CRUS, AAPL, QCOM, and AVGO all put in stellar sessions.  On the day large-caps closed basically flat, as the SPY gained 0.05%, the DIA gained 0.02%, and QQQ gained 0.36%.  The VXX gained 2% to 29.77 and T2122 fell again to 34.97.  10-year bond yields fell a bit to 1.475% and Oil (TWI) gained about three-quarters of a percent to $73.44/barrel.

CNBC reported this morning that Fed data released today indicates that markets may be past their peak level of inflation fear.  The data (pulled from FRED by analysts) reinforces Fed member positions that inflation is likely transient and not structural.  Specifically, the analysis looked at the 5-year break-even inflation rate (now at 2.45%) and the 10-year break-even rate (now 2.33%). (The break-even rate is the difference between the treasury yields and inflation-indexed bonds for a given period.)  This tells us bond traders now anticipate inflation to be falling in a longer timeframe, despite it rising in the short term.  Clearly, this is not gospel, but maybe an indication that stocks will continue to be attractive as longer-term safety trades can’t compete on return.   

Home prices surged in April according to the Case-Shiller Price Index.  The gained was 13.3% month-on-month and 14.6% year-on-year.  This was the biggest gain in home prices in 30 years.  While this does represent an increase in the value of the major asset of many American families, as with any average the gains were uneven.  High-end homes saw the biggest gains while lower-end home prices saw single-digit gains.  Charlotte NC, Cleveland OH, Dallas TX, Denver CO, and Seattle WA all saw their largest ever annual gains.  However, data out this morning shows that mortgage demand fell 7% this week (and 17% from one year ago) as 30-year interest rates rise.

After the close Tuesday, RCL announced that any passengers sailing from US ports without being fully-vaccinated, will be required to have travel insurance.  FL passed a law that exempts itself from this as of January 1, 2022, leaving the insurance burden on cruise operators for ships leaving their ports.

Overnight, Asian markets were mixed, but leaned to the green side.  Shenzhen (+1.08%) and Singapore (+1.33%) led to the upside.  Meanwhile, Malaysia (-1.01%) and Hong Kong (-0.57%) paced the losses.  However, in Europe markets are decidedly in the red as of early afternoon.  The FTSE (-0.59%), DAX (-0.93%), and CAC (-0.75%) are good indicators of the rest of the continent.  As of 7:30 am, US Futures are pointing to a dead flat open.  The DIA is implying a -0.02% open, the SPY implying a -0.01% open, and the QQQ implying a +0.01% open.  In addition, 10-year bond rates are moving significantly lower, now at 1.454%.

Major economic news scheduled for Wednesday includes ADP Nonfarm Employment (8:15 am), Chicago PMI (9:45 am), May Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), and a Fed Speaker (Bostic at 8 am).  Major earnings reports scheduled for the day include BBBY, STZ, GIS, and SCHN before the open.  Then after the close, MU and YUMC report.

Interest rates came down overnight, but Oil and Nat Gas prices surged, even as the dollar is a bit stronger. However, yesterday’s gains were not widespread as only two of the 10 major sectors were in the green (technology, of course, and Consumer Cyclical). So, markets are showing signs of being wary at these levels. Be careful, but it’s hard to fight a bullish trend until it breaks.

Keep taking your profits, moving your stops, and maintaining your discipline. Follow those trading rules, don’t chase, and stick to the trade plan. The odds favor following the trend and, as always, respect both support and resistance levels. However, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Remember that consistency is the key to long-term trading success. So, book those singles and doubles. Base hits win championships, not the occasional home run. So, don’t try to stretch things and get burnt in the process.

Ed

Swing Trade Ideas for your consideration and watchlist: PLUG, UCO, NOK, KOPN, DPZ, XBI, RKT, UBER, SQ, INO, AI, APPS, QS, RIDE, BABA. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Monday saw the large caps open flat and the QQQ gap four-tenths of a percent higher.  The SPY and DIA then sold off before grinding sideways.  However, a court ruling led FB to rocket higher in the afternoon, and both the QQQ and SPY followed.  This left the SPY printing a potential Hanging Man signal (at another all-time high close), the QQQ printing a strong Bullish Kicker (also settling at a new all-time high close), and the DIA lagged printing an ugly black candle, but perhaps finding some support as it closed up off the lows of the day.  On the day, QQQ gained 1.20%, SPY gained 0.20%, and DIA lost 0.48%.  The VXX was flat at 29.17 and T2122 fell even further to 40.10 (diverging from the SPY and QQQ).  10-year bond yields fell sharply to 1.478% and Oil (WTI) fell 1.6% to $72.84/barrel.

As mentioned, a Federal Judge ruled in favor of FB, over-ruling a lower court and throwing out an antitrust case that had been brought by the FTC and 48 state AGs.  The case had been set to force FB to divest of Instagram and WhatsApp.  However, the judge ruled that despite lower court rulings, the FTC had not proven FB had or was maintaining a monopoly through anticompetitive means.  FB closed above a $1 trillion valuation after gaining almost 4.2% on the day.   

Late in the day, Supreme Court Justice Clarence Thomas put out a statement saying that Federal prohibitions against marijuana sales and distribution may be outdated and in need of revisiting.  Coming from a supposedly staunchly conservative Justice, this may signal a slightly more progressive shift in the court. The statement came as the court declined to hear a case about the Federal tax deductions of a Colorado medical marijuana dispensary.  While cannabis stocks did not pop on the news, this could have longer-term implications for pot names like GRWG, ACB, CARA, CRON, and HEXO.

In stock news, early this morning UAL announced they have placed their largest order ever, including some 270-plane orders. This includes 200 “narrow body” jets from BA and 70 Airbus 320 wide-body planes.  UAL also announced it expects to hire 25,000 new employees to service the planes, including flight crews, mechanics, and other ground crew.  Interestingly for BA, this comes less than a day after the FAA had told the company that its newest 777X jet would not get approval to fly until mid or late 2023.

Overnight, Asian markets were mixed but leaned heavily to the red side.  Shenzhen (-0.99%), Shanghai (-0.92%), and Hong Kong (-0.94%) paced the losses.  Meanwhile, Thailand (+0.78%) was the lone exchange that was significantly green.  In Europe, markets are leaning to the green side as of the early afternoon.  The FTSE (+0.30%), DAX (+0.88%), and CAC (+0.44%) lead the gainers with Greece (-1.04%) and Russia (-0.95%) as outliers to the downside.  As of 7:30 am, US Futures are pointing to a flat and mixed open.  The DIA is implying a +0.13% open, the SPY implying a -0.05% open, and the QQQ implying a -0.11% open at this hour.

The only major economic news scheduled for Tuesday is Conf. Board Consumer Confidence (10 am).  There are no major earnings reports scheduled for the day.

The dollar has been surging overnight. Of course, this means most commodities are down proportionately. Natural gas (+1.48%) is the major exception. However, with markets waiting on employment data later this week, there seems to be uncertainty in the stock market. It is absolutely true that the tech-led reflation trade led the bulls higher in the QQQ Monday. However, large-cap traders seem far less certain at these lofty heights. We also have to consider quarter-end rebalancing and window dressing as possibilities as the funds prepare for their Q2 statements. The bulls still have the trend in their favor, but things are looking a little extended or tired outside the Nasdaq. So, be cautious and watch for signs of rotation or reversal.

Keep locking in profits, moving your stops, and maintaining discipline. Follow your trading rules, don’t chase, and stick to the trade plan. The odds favor following the trend and, as always, respect both support and resistance levels. However, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Remember that consistency is the key to long-term trading success. So, takes those singles and doubles…don’t try to stretch things and get burnt in the process.

Ed

Swing Trade Ideas for your consideration and watchlist: CRON, YOLO, NOK, QS, PLUG, DPZ, RIDE, NIO, JD, SQ, BABA. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Friday saw another gap up (half a percent in the DIA), but then the large caps waffled sideways the rest of the day.  Meanwhile, the QQQ faded the gap (sold off a bit) before starting its sideways grind the rest of the day.  The big banks led the way as a group as investors fought tooth and nail to get in before the post-stress-test dividend increases and buyback programs get announced.  SPY printed another new all-time high close as both the DIA and SPY printed Spinning Top type small candles.  However, the QQQ printed a Bearish Engulfing of a Shooting Star Doji.  On the day, SPY gained 0.35%, DIA gained 0.72%, and the QQQ lost 0.12%.  The VXX fell almost 2% to 29.19 and T2122 fell back out of the overbought territory, now at 76.61.  10-year bond yields rose significantly to 1.526% as the Fed-favorite PCE Price Index came in hot and Oil (WTI) was up 1% to $73.98/barrel.

On Saturday, JNJ agreed to halt the sales of opioids across the US as well as to pay a small $260 million settlement with NY state.  China also announced that it is forcing TSLA to recall 300,000 Model 3 and Model Y cars related to assisted-driving software.  However, this would be a remote “software push” recall and not require cars to be physically returned to dealers.  The AAPL streaming video service (Apple TV+, which competes with DIS and NFLX) will start facing a test this week.  Up to now, the service has offered as a free 12-month trial with other purchases.  However, this will change to a 3-mo. Trial as of Thursday and the first users to have taken the trial will start to be billed $4.99/month.   

In the cryptocurrency world this weekend, governments made another move to keep control over currencies.  On Sunday, the UK Financial Conduct Authority warned UK consumers and banned the largest crypto exchange (Binance) from doing business in the UK.  The exchange has until Wednesday to confirm that it has removed all of its advertising and promotions from UK jurisdiction.  Bitcoin held at $33,227 (as of noon Sunday) after the announcement was made.  Bloomberg reported that at least one major industry analyst saw this as a positive move, adding that more regulation is a signal that crypto is a more mature and safer asset class…which will draw in more investors.

More clarity has been revealed about the latest investigations GOOG faces from the EU. This time the EU is focused on the GOOG ad network, data collection, and distribution, and the way ads are targeted to users on the YouTube platform.  Specifically, the EU is investigating Google Ad Manager, the algorithm used to display ads, the way GOOG rivals’ ads were served to viewers, and whether GOOG used data on those ads for their benefit.  In other words, whether the competitor’s ad response data was used by GOOG for competitive advantage and whether rival ads were served on a fair playing ground compared to GOOG’s own product ads.  The key “rivals” mentioned here are AAPL, FB, and MSFT.

Overnight, Asian markets leaned heavily to the red side on modest moves following the release of bad Chinese Industrial data.  Oddly, Shenzhen (+0.98%) was the sole significant winner, while Indonesia (-1.38%), Malaysia (-0.96%) were outliers to the downside among generally small red numbers across the region. In Europe, markets are also leaning to the downside on somewhat larger moves.  The FTSE (-0.51%), DAX (-0.15%), and CAC (-0.49%) are typical of the continent.  As of 7:30 am, US Futures are pointing to a mixed, flat open.  The DIA is implying a -0.05% open, the SPY is implying a +0.05% open and the QQQ is implying a slightly stronger +0.27% open.

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

10-year bond yields are down in premarket, but holding 1.51%. This came after losses in Asia over data released showed that May Chinese industial profits were down both from April and a year earlier. As the quarter comes to an end Wednesday, markets may also be experiencing some rebalancing and window dressing as funds prepare for their Q2 statements. The bulls have the trends in their favor, but the DIA still faces resistance overhead and the other two major indices seem hesitant to rip higher. So, be cautious and watch for signs of rotation or reversal.

The odds favor following the trend, but also respecting both support and resistance levels. However, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Keep locking in profits, moving your stops, and maintaining discipline. Follow your trading rules, don’t chase, and stick to the trade plan. Remember that consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: TLRY, IT, RKT, FSLY, NNOX, NVDA, LEN, PSA, QCOM, PLUG, HD, ALXN, XOM, NOK. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Thursday saw another gap higher, but this time the DIA followed-through before grinding sideways all afternoon.  Meanwhile the SPY essentially waffled in a tight range after he gap, but the QQQ ran up and then fell back.  This left the QQQ at another all-time high close, but also printing a Shooting Star type candle.  The SPY printed an indecisive Doji, missing another all-time high by cents.  And the DIA put in a nice bullish candle as it plays catch-up to the other major indices.  On the day, SPY gained 0.60%, DIA gained 0.94%, and QQQ gained 0.62%.  The VXX fell almost 2% to 29.71 and T2122 jumped back up into the overbought territory at 81.18.  10-year bond yields rose slightly to 1.494% and Oil (WTI) gain about a quarter percent to $73.29.

During the afternoon, President Biden and a bipartisan group of Senators announced they had reached a deal on an infrastructure initiative.  However, this does not mean the bill has passed the full Senate yet.  Interestingly, the bill apparently will only include $579 billion in new spending (not much over half of the levels that had been floated as “the best offer” by either side).  So, that has to be called a win for Senate Republicans. In addition, the deal-making group has not yet agreed on how to pay for the bill (the GOP says they will not go along with any tax changes that would be a rollback of the 2017 tax cuts).  Nonetheless, the bill calls for $109 billion to go into roads, $66 billion to go into rail, $49 billion to go into public transport, and $15 billion to go into electric vehicle infrastructure and vehicles.  Other winners in the plan were $73 billion into electric infrastructure, $65 billion for broadband, and $55 billion into fresh water.  You can probably guess which industry’s stocks will gain on that spending (steel, construction, telecom, etc.).   

After the close, and as expected, the Fed said all 23 banks passed their 2021 stress test.  The test scenario tested a “severe global recession,” which is exactly what the banks had experienced last year…so the banks passing was a foregone conclusion. Most analysts expect this announcement will be followed by a spate of dividend increases and buyback programs by most of the major banks.

In stock news, RAD plummeted during the day on mixed earnings and weak guidance as well as the CEO saying she was only “cautiously optimistic” the company would not be hurt by another round of Covid lockdowns.  CCL also fell during the day after they announced they do not anticipate their full fleet sailing before next Spring.  On the other side, MSFT closed above a $2 trillion valuation for the first time on the day they also announced a new version of the Windows operating system.  After the close, NKE posted beats on both the top and bottom lines.  FDX also posted a beat on both lines. Finally, SPCE has been given approval by the FAA to fly passengers to space.

Overnight, Asian markets were solidly green across the board.  Shenzhen (+1.48%), Hong Kong (+1.40%), and Shanghai (+1.15%) led the advancers. However, the gains were wide-spread.  In Europe, markets are mixed on modest moves so far Friday.  The FTSE (+0.12%), DAX (-0.13%), and CAC (-0.07%) show the spread.  However, smaller exchanges are more varied with Sweden and Finland up over 1% at mid-day.  As of 7:30 am, US Futures are pointing to another green open. The DIA is implying a +0.32% open, the SPY implying a +0.12% open, and the QQQ implying a +0.13% open.

The major economic news scheduled for Friday includes May PCE Price Index and May Personal Spending (both at 8:30 am) and Michigan Consumer Sentiment (10 am).  Major earnings reports on the day are limited to KMX and PAYX before the open.  There are no reports scheduled after the close.

With the premarkets up, it looks like the bulls are intent on finishing off the best week since April. However, the DIA still faces overhead resistance, the SPY has not yet completely broken out, and QQQ looked a little tired and indecisive on Thursday. So, remember this is Friday, which means payday, and also that a weekend news cycle lays ahead. It is time to consider taking profits, hedging, or at least moving stops. The fear of inflation (and Fed tightening) still lurk out there in the market.

Follow your trading rules, don’t chase, and stick to the trade plan. Remember that consistency is the key to long-term trading success. The odds favor following the trend, but also respecting both support and resistance levels. However, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Keep locking in profits, moving your stops, and maintaining discipline.

Ed

Swing Trade Ideas for your consideration and watchlist: WLL, DGII, EFX, SENS, TMUS, FSLY, LABU, QCOM, AMD, BA. 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

Wednesday was a nothing burger day in markets as all three major indices opened flat and then traded in a tight range all day long.  A selloff the last half hour of the day took stocks out on the low end of that tight range.  This left plenty of wicks as the QQQ printed an indecisive Doji and the large-cap indices just delivered small black body candles with upper wicks.  On the day, SPY lost 0.09%, DIA lost 0.20%, and QQQ gained 0.05% (technically closing at another new all-time high).  The VXX fell 2% to 30.26 and T2122 dropped back to 61.22.  10-year bond yields rose to 1.489% and Oil (WTI) was up half a percent to $73.28/barrel.

Late in the afternoon, the Wall Street Journal CNBC reported that the CEO of CMCSA is considering a joint venture with VIAC or even purchasing ROKU in order to bolster the company’s place in the streaming market.  ROKU (+4.5%) and VIAC (+2.7%) surged on the news while CMCSA fell almost 4%.  President Biden also announced he will replace the head of FNMA (and Freddie Mac) after the Supreme Court ruled that the structure of the agency is unconstitutional and should have more accountability to the White House.  This came after the prior administration had tried to privatize the agency and reduce government oversight.    

During the say, AMZN announced that sales of its 2-day “Prime Day” sale were more muted than prior years.  With antitrust suits in full swing (to force more changes in favor of 3^rd-party sellers), this year AMZN stressed the benefit to those 3^rd-party sellers.  AMZN says that 3^rd-parties sales grew more than first-party sellers and that 3^rd-party’s made sales of $3.5 billion. (AMZN never releases sales figures for the event, instead only describing it in adjectives.)   However, industry analysts estimate this year’s sale brought in $10.5-$11 billion in sales.

Overnight, Asian markets were mixed, on very modest moves.  Only India (+0.66%) and Malaysia (-0.58%) managed even a half percent change from the previous close.  China was also mixed on small moves and Japan was unchanged.  However, in Europe, markets are moving smartly higher as of mid-day.  The FTSE (+0.59%), DAX (+0.68%), and CAC (+1.02%) are fairly typical of the spread across the continent, with only Russia (-0.57%) lagging.  As of 7:30 am, US Futures are pointing to a gap higher with the S&P retesting all-time record highs.  The DIA is implying a +0.50% open, the SPY implying a +0.48% open, and the QQQ implying a +0.56% open.

Most commodities look to start the day lower, despite weakness in the dollar overnight.  Wheat, in particular, seems to be getting hit, but metals are mixed as Gold is eking out a green number early today.  Interest rates are showing a slightly positive trend with the 10-yr yield up to 1.49% at 7:30 am.  For their part, most cryptocurrencies are green as Bitcoin is up nine-tenths of a percent this morning.

The major economic news scheduled for Thursday includes May Durable Goods Orders, Q1 GDP, May Trade Balance, Weekly Initial Jobless Claims, and May Retail Inventories (all at 8:30 am), a Fed speaker (Williams at 11 am), and Fed Bank Stress Tests (4:30 pm).  Major earnings reports on the day include CAN, DRI, GMS, RAD, and WOR before the open.  Then after the close, FDX, NKE, and SNX report.

In a long, evening session, the House Judiciary Committee voted to give more funding to antitrust enforcement agencies tasked with keeping big tech companies in check. This was a blow to the likes of GOOG, AMZN, AAPL, and MSFT who had been fighting this along with several bills aimed at curbing big-tech monopolies. Interestingly, this passed with bipartisan support. So, watch the tech names for signs of rotation out…which would hurt overall markets due to their massive size in the main indices. However, inflation and the fear of Fed tightening still continue to be the main focus of the market. Along those lines, the Bank of England held steady again last night but they did acknowledge inflation may become an issue later.

The odds still favor following the trend and respecting support and resistance levels. So, if the QQQ and SPY are in blue skies on a bull trend, we have to acknowledge that in our trading. Still, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Keep locking in profits, moving your stops, and maintaining discipline. Follow your trading rules, don’t chase, and stick to the trade plan. Remember that consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: TMDX, ATEC, WKHS, EGAN, FRBK, RETA, MAXN, NIO, CNC, LI, MNKD, AGEN, GOEV. 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 opened flat Tuesday and then rallied most of the day as bulls delivered some follow-through to Monday’s bullish reversal of last week’s action.  However, a selloff the last half hour of the day took stocks out away from their highs.  DIA was by far the least positive of the 3 major indices, printing a white-bodied Spinning Top candle.  However, the SPY and QQQ put in stronger bullish candles.  On the day, QQQ closed up 0.93% (to an all-time high close), SPY gained 0.53% (half a percent shy of a new all-time high), and DIA gained 0.20% and remains the laggard.  The VXX fell 5% to 30.87 and T2122 rose 1%, but remains just outside the overbought territory at 78.79.  10-year bond yields fell slightly to 1.465% and Oil (WTI) was off eight-tenths of a percent to $73.08/barrel as the dollar fell again.

During the afternoon, Fed Chair Powell’s prepared remarks (for his House testimony) were released.  In the prepared statement, Powell said the Fed will “soon begin discussing” the tapering of QE (bond buying).  However, in questioning, he was very positive about the economic comeback and continues to maintain the position that the inflation being seen now is temporary in nature.  Powell said it is “very, very unlikely” that the US will see 1970s-type inflation.  He also repeatedly said that the pandemic remains a risk, specifically noting the slowing in the pace of vaccinations and the Delta variant of the virus.    

Bloomberg reported that semiconductor order lead times increased another 7 days during May.  The wait time on an average chip order (regardless of industry) is 18 weeks.  However, the primary cause of the increase in wait time is phone chips, which saw an increase to almost 26 weeks lead-time.  However, the report Bloomberg cited said that chipmakers like AVGO are cautioning against reading this as massive demand.  The CEO of AVGO told Bloomberg this is more of a case of their customers coming to terms with a not-just-in-time supply chain.  (Which means every link in the chain is just building inventory buffers now and that inventory will be worked back down in the future.)

Bitcoin briefly fell below $30,000 on Tuesday before rallying back to close just under $33,000.  The pullback put fear into crypto markets as a Death Cross set up and weak hands ran for the doors.  Bitcoin-related stocks (like MSTR and GBTC) suffered great volatility and/or losses on the day. Overnight Bitcoin continued its rebound rally and is trading near $34,000 in the premarket.

Related to the virus, new US infections are flat.  The totals rose to 34,434,803 confirmed cases and deaths are now at 617,875. These numbers are now under-reported again as some (mostly Southern) states have decided to stop reporting data on a daily basis. Nonetheless, on the data we do have, the number of new cases is flat and at an average of 11,775 new cases per day (the lowest number since March 2020). Deaths continue to fall and are now down to 306 per day (again, the lowest number since March 2020).  The White House said Tuesday that the country will not meet its stated goal of 70% of American adults having received at least one vaccine shot by July 4.  They went on to say we are now on pace to be at 67% of adults in that state by the holiday.  We will also come up short on the goal of 160 million Americans being fully vaccinated by that date, now being on a pace to be at 151 million as of Independence Day.

Overnight, Asian markets were mixed, on mixed trading. For example, Japan was dead flat, but Hong Kong (+1.79%), Taiwan (+1.53%), and Shenzhen (+1.00%) made nice gains.  Meanwhile, Indonesia (-0.88%), Australia (-0.60%), and India (-0.54%) were down a bit.  In Europe, markets are mostly in the red so far today.  The FTSE (+0.23%) is an outlier, but the DAX (-0.67%) and CAC (-0.59%) are typical of the continent at this point in their day.  As of 7:30 am, US Futures are pointing to a dead flat open.  The DIA is implying a +0.04% open, the SPY is implying a -0.02% open, and the QQQ is implying a -0.04% open at this hour.  Commodities are largely higher overnight with the Dollar down slightly.

The major economic news scheduled for Wednesday includes Q1 Current Account (8:30 am), Manufacturing PMI (9:45 am), Services PMI and May New Home Sales (both at 10 am), Crude Oil Inventories (10:30 am), and multiple Fed speakers (Bowman at 9:10 am and Bostic at 11 am).  Major earnings reports on the day include INFO, PDCO, and WGO all before the open.  Then after the close CNXC, FUL, KBH, and SCS all report. 

Inflation and the fear of Fed tightening continue to be the main talking points for the market. This comes despite some glaring examples in the other direction. For example, Lumber prices are down almost 50% and Corn is down 27% from the peaks in early May. Meanwhile, companies that use lumber and corn have pricing power…and their prices are not falling. So, they are reaping greater profits. In a perfectly efficient market, you might expect a huge rally in Housing and Food sectors, but that has not been the case since early May. The point is that it is not news, but the fear and rumor related to news that is drives markets. So, focus on the reaction and not the news itself in your trading.

The odds still favor following the trend and respecting support and resistance levels. That doesn’t really help in terms of the large caps, but the QQQ is still holding the bullish trend. Still, all trends reverse at some point and every S/R level is breached eventually. So, don’t just assume trend, support, or resistance will always hold. Keep locking in profits, moving your stops, and maintaining discipline. Follow your trading rules, don’t chase, and stick to the trade plan. Remember that consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: AMSC, RIOT, MRO, NKLA, FANG, PTON, RUN, EXPR, PLUG. 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