Reading a Company Balance Sheet
We dedicate the entire E-learning session to reading a company balance sheet and fundamental analysis. We dig into the details and point out red flags for those wanting longer term positions.
Position Hedging
In this E-Learning calls I talk about methods I use to hedge individual positions. I cover not only how I use options to reduce risk but also enhance profits of individual trades.
Tuesday 2-2-21 e-Learning
Portfolio Hedging
In this E-Learning session I discuss my method for hedging my entire portfolio using options. Markets don’t always go up and this method has saved my bacon many times turning an ugly correction into a profitable possibility.
Tuesday 2-9-21 e-Learning
3-Day Weekend!
Although most of the country will be dealing with cold conditions over this 3-day weekend, I would not rule out the possibility of light and choppy day as traders get way early to extend their time off. Even though indexes seemed to struggle to hold the bullish momentum, there was little to no fear that accompanied yesterday’s profit-taking. As we slide into the uncertainty of a long weekend, it would not be odd to see additional profit-taking with traders reducing risk. As long as index trends and support levels hold banking, some recent gains may be a wise move.
Asian markets we mostly closed to as they celebrate their new year. European markets trade mixed but mostly flat this morning as they react to the 9.9% economic slump reported in the U.K. U.S. futures currently suggest a slightly lower open with light earnings and economic calendars. Plan your risk carefully as we head into the weekend.
Economic Calendar
Earnings Calendar
On the Friday earnings calendar, we have just about 40 companies expected to reports quarterly results. Notable reports include D, ENB, FTS, MCO, NWL, & WPC.
News & Technicals’
Although there was little increase in fear, the indexes seemed to struggle to hold on to the bullish momentum. Perhaps it was a light recognition that the Jobless claims were higher than expected but, it may have been nothing more than the 3-day weekend and traders heading out early. The White House secures a deal for more than 200 million more Covid vaccine doses as the public finds it difficult to access the shot. The United Kingdom reported that its economy contracted by 9.9% in 2020, the worst performance since the Great Frost of 1709. Yesterday the U.S. reported a deficit expectation of more than 2 Trillion dollars for 2121, not including the 1.9 Trillion stimulus or the college loan forgiveness moving through Congress. That said, Speaker Pelosi intends to include the 15 dollars per hour Federal minimum wage mandate in the stimulus package.
We have a light day on the earnings calendar with only a Consumer Sentiment report for traders to react to at 10 AM Eastern. With a 3-day weekend ahead, price action could become relatively light and choppy as traders get away early to enjoy the extra time off. Recently, something of a rare event in the current market is seeing the U.S. futures pointing to a flat to slightly lower open this morning. Perhaps a little profit-taking is possible heading into the weekend? Plan your risk carefully.
Trade Wisely,
Doug
Little News Now and 3-Day Weekend Ahead
Markets basically ground sideways on Thursday. The indecisive day left us with black-bodied Doji-type candles. However, even this indecisive trading left all 3 major indices at all-time high closes after a small morning gap higher. On the day, SPY gained 0.16%, DIA gained 0.06%, and QQQ gained 0.55%. The VXX lost a little over 2% to 16.28 and T2122 fell, but remains in the overbought territory at 86.76. Meanwhile, the 10-year bond yield rose to 1.165% and Oil (WTI) fell over a percent to $58.00/barrel.
After the close, DIS crushed on earnings ($0.32 vs. loss was expected) on a major revenue beat due to streaming. MWK did the same. However, both DVA and EXPE missed on both the top and bottom lines.
Bitcoin surged to a new record high Thursday as both MA and BNY joined the move toward acceptance of cryptocurrency. MA had previously partnered with cryptocard providers, but the new announcement was that they will be supporting so-called “stablecoins” which are cryptocurrencies that peg their value to some other asset (such as the dollar). Meanwhile, BNY said it would begin holding, transferring and issuing bitcoin on behalf of institutional customers. Markets saw both announcements as more evidence of the legitimization of bitcoin.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 28,002,240 confirmed cases and 486,922 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 105,798 new cases per day. Still, deaths remain stubbornly high at 2,818 per day. President Biden said Thursday that deals have been inked to provide an additional 200 million doses of the PFE and MRNA vaccines (raising the total order to 600 million doses). More importantly, he said the country was on track to have given 300 million vaccinations by the end of July. In that vein, RAD will begin administering vaccinations today.
Globally, the numbers rose to 108,380,746 confirmed cases and the confirmed deaths are now at 2,380,746 deaths. In good news, the world’s average of new cases is down again to 413,916 per day, but mortality remains high at 11,873 new deaths per day. In France, the Health Minister said that between 20% and 25% of all current cases in that country are of the UK variant. In Germany, they have imposed border checks and outright border closings to prevent mutations from arriving from the Czech Republic, Slovakia, and Tyrol. The UK said its economy contracted 9.9% in 2020 due to the virus and Brexit. However, there was slight hope with the Q4 seeing 1% GDP growth.
Overnight, Asian markets were mostly red, but many markets (and economies) are closed now for the Lunar New Year celebration. India (-1.34%) and Australia (-0.63%) led the way lower. In Europe, markets are mixed so far today. The FTSE (+0.12%) and CAC (+0.06%) are flat, but the DAX (-0.51%) is down with the rest of the continent in a similar situation. Amsterdam (+0.95%) and Denmark (+0.92%) lead gainers while Portugal (-2.46%) and Russia (-1.01%) lead the losses as of midday. As of 7:30 am, US Futures are pointing toward a red open. All 3 major indices are implying a small gap lower of about 0.15% at the opening bell.
The major economic news for Friday is limited to Michigan Consumer Sentiment (10 am) and a Feb. speaker (Williams at 10 am). Major earnings reports on the day include AXL, D, FTS, HUN, LECO, MCO, and NWL before the open. There are no reports after the close.
The Impeachment Trial continues to grab headlines, but with the GOP having decided before the trial that there would be no conviction, it should wind down and possibly end today. Even earnings are limited today. So, the driver of the market today may be trader positioning in front of the 3-day weekend.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. So, keep locking in your profits when you have them. Stick with your plan, maintain discipline and work your process. Remember it’s Friday and we have a 3-day weekend coming. So, pay yourself and get your portfolio set for the long weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: ASML, AMAT, MRVL, BYND, SOHU, CX, SPCE. 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
Whipsaw raises caution.
A nasty intraday whipsaw likely quickened the pulse of traders and investors yesterday, but by the end of the day, the buying frenzy reengaged to squeak out a new Dow record high. With a busy day of earnings, a Jobless report before the bell amidst a backdrop of Congressional drama, we should plan for price volatility to continue. Stay with the trend but be willing to take profits quickly as the indexes stretch out in exuberance for the next round of stimulus.
Overnight Asian markets closed in the green with modest gains heading into the Chinese new year shutdown. Across the pond, markets trade cautiously bullish this morning, sporting modest gains. U.S. Futures point to a bullish open but have moderated slightly from the early morning highs. Plan your risk carefully as we head toward a 3-day weekend.
Economic Calendar
Earnings Calendar
Today we have our busiest day of earnings data for traders to digest this week, with just over 120 companies stepping up to report. Notable reports include TWOU, AEM, AB, MT, ARES, AZN, ACB, BJRI, BWA, BAM, CC, NET, DDOG, DBA, DLR, DUK, EXPE, FRT, FLO, GRNC, GDDY, HUBS, HII, ILMN, K, KIM, KHC, MAC, TAP, NNN, PEP, POOL, QSR, SSTK, TU, THS, TSN, VRSN, DIS, AUT, & YETI.
News and Technicals’
Once again, the bulls won the day after a nasty intraday whipsaw leaving uncertain candle patterns behind on the index charts, such as the hanging man pattern on the DIA. However, undaunted the premarket futures point possible record highs as the indexes stretch out with the hope of more stimulus on the way. Treasury yields fell yesterday after Jerome Powell said the U.S. is a long way from where it needs to be in terms of employment as he painted a gloomy picture of the economy. That said, the overall market seems to very little concerned about the jobs market or the overall economy as long as the government continues to print debt. It may be great for the short-term as exuberance pushes us higher, and traders need to stay with the trend capitalizing on the buying frenzy. Still, traders need to remain on guard for the danger this is likely to create in the long-term.
Trends remain bulls, and index prices are solidly above price support levels. Still, the wild whipsaw experienced yesterday likely quickened traders’ pulse, raising questions about the level of danger that exists. Today we face more D.C. drama with a boatload of earnings data and Jobless numbers to keep the tensions high and the prices volatile. The T2122 indicator continues to warn of a short-term overbought condition, so stay focused and willing to take profits quickly should the bears decide to wake up.
Trade Wisley,
Doug
Earnings and Jobless Claims Today
Markets gapped up at the open Wednesday, but sold off sharply about 10am and then spent the rest of the day roller-coastering in a tight range the rest of the day. As a result, all 3 major indices printed black-body candles. The QQQ was a sort of Dark Cloud Cover and while the DIA closed at another all-time high close, it printed a Hanging Man candle. On the day, SPY was flat at -0.04%, QQQ was down 0.23%, and DIA gained 0.18%. The VXX gained 1.65% to 16.67 and T2122 also gained further into the overbought territory at 95.83. Bonds fell significantly to 1.124% and Oil (WTI) was flat at $58.35/barrel.
Fed Chair Powell said the US employment situation was bleak, saying the headline jobs number was dramatically understated. He went on to mention the largest drop in workforce participation since 1948. So, he reassured markets that the Fed will remain “patiently accommodative” (because of lessons the Fed learned the hard way in the past) and requested a “society-wide push for full employment (Congress to get Fiscal Stimulus passed again). Despite this calming continuity of message, markets did not have a strong reaction. However, the comments did cause a slump in Treasury yields where an expectation of inflation was muted.
On the earnings front this morning, PEP beat on earnings with a surge in revenue in Q4. As we might expect, AZN posted their highest Q4 sales in many years and beat on earnings as well. TSN beat on earnings, but came in over half a billion light on sales for the quarter. KHC beat on both lines.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,897,214 confirmed cases and 483,200 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 105,798 new cases per day. Still, deaths remain stubbornly high at 2,818 per day. Los Angeles has had to temporarily close all vaccination locations due to a lack of vaccine. This comes as more states are relaxing restrictions, despite the CDC and other health experts warning against relaxing too early.
Globally, the numbers rose to 107,937,567 confirmed cases and the confirmed deaths are now at 2,367,122 deaths. In good news, the world’s average of new cases is down again to 423,410 per day, but mortality remains high at 12,091 new deaths per day. As expected, Germany extended their lockdown to March 7. In the UK, the Gov’t. Science Advisory Group warned that a new “Bristol” variant may well infect people who have have the virus before or been vaccinated. Fortunately, this new variant is not the UK variant that is sweeping the globe, at least yet. Mexico granted emergency use approval for 2 Chinese vaccines. The Eurozone lowered growth forecasts by four-tenths of a percent based on continued drag from COVID restrictions. The still expect positive 3.8% growth in GDP in the next year.
Overnight, Asian markets were mostly green again, but many markets (and economies) are closed now for the Lunar New Year celebration. In Europe, markets are mostly green so far today. The FTSE (+0.05%) and CAC (+0.00%) are flat, but the DAX (+0.49%) is up and is more typical of the rest of the continent. As of 7:30 am, US Futures are pointing toward a flat to modestly higher open. The DIA is implying a +0.24% open, the SPY implying a +0.29% open, and the QQQ implying a +0.41% open at this point.
The major economic news for Thursday is limited to Initial Jobless Claims (8:30 am), Fed Monetary Policy Report (11 am), and US Federal Budget (2 pm). Major earnings reports on the day include AB, MT, AZN, BWA, CIGI, UFS, DUK, ENS, FAF, FMCC, GNRC, HII, NSIT, K, KHC, LH, TAP, NUS, PTAK, PBF, PEP, POOL, QSR, R, SON, TPX, THS, TSN, VNT, WSO, and ZBRA. Then after the close CC, DVA, DLR, EXPE, FLO, GDDY, ILMN, MHK, TEX, DIS all report.
As the Impeachment Trial continues to grab headlines and earnings leads the economic news. However, New Jobless Claims may have an impact this morning. Again, markets look a little tired, but the wall of worry is something the bulls love to climb. So, don’t bet on a pullback until you see it happening.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. So, keep locking in your profits when you have them. Stick with your plan, maintain discipline and work your process. Also, remember we have a 3-day weekend coming. So, we may see some profit-taking the next couple days.
Ed
Swing Trade Ideas for your consideration and watchlist: IAG, WYNN, XLE, VLO, AMD, PSX, TSLA, BBBY. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 Dick Carp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
Free YouTube Education • Subscription Plans • Private 2-Hour Coaching
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
A little hiatus.
With the bulls taking a little hiatus yesterday, we technically broke the six-day rally. Still, with the bears seemingly back in hibernation, the indexes merely drifted sideways the majority of the day. Both Congressional bodies busy expect some political news volatility as they move forward in the Trump trial and the 1.9 trillion dollar stimulus bill passage. Facing another big day of earnings data and the CPI numbers before the bell futures markets point to another bullish open. As we continue to extend the indexes, remember to take some profits.
Asian markets produced another bullish close overnight with modest gain across the board. However, European markets trade cautiously this morning with flat and mixed results. U.S. futures with the aroma of freshly printed stimulus money just about the corner, the bulls remain large and in charge. Still, don’t rule out the possibility of some wild price volatility as we digest all the earnings and economic news.
Economic Calendar
Earnings Calendar
On the hump day earnings calendar, we have just short of 100 companies reporting quarterly results. Notable reports include GM, IRBT, ELY, NLY, ARCC, BHF, BG, CDW, CINF, CME, KO, CXW, EFX, EQIX, EQR, EXEL, HP, IFF, IPG, IQV, KGC, MGM, ORLY, PAYC, PAG, SAVE, STAG, TEVA, TM, UBER, UAA, WU, WH, XPO, ZG, & ZMGA.
News & Technicals’
We broke a six-day rally yesterday with the bulls needing a little hiatus and, the bears showed no teeth as the index drifted mostly sideways. That said, stock pickers enjoyed nice rallies in more than enough stocks to make for a great trading day. With Senate occupied by the Trump trail and the House moving forward with the 1.9 Trillion dollar stimulus plan, it may be wise to keep an eye on the political news as it could create some price volatility. As President Biden pushes for herd immunity, anti-vaccine protesters could derail or delay efforts to combat the pandemic. The J&J CEO is now suggesting that people may need annual Covid vaccine short for several years. If true, we have a long way to go before returning to normal in light of virus new variants. Ugg!
Technically speaking, index trends remain bullish, albeit a little stretched in the short-term, but with another round of stimulus checks around the corner, it could stay that way. I know there is a lot of talk in the market about the possibility of a significant correction that could begin at any time. Though that may be correct, as traders, the best we can do is stay with and benefit from the wild enthusiasm as long as it lasts. However, we should avoid overtrading, chasing already extended stocks, and avoid the greed that often gets in the way of making profits. Remember, consistently profitable traders must get comfortable with taking profits consistently.
Trade Wisely,
Doug
Improving Virus News, Earnings, and Powell
Markets gapped down and had a tiny follow-through the first few minutes of the day. However, bulls were having none of it and after a tiny rally markets ground sideways to close dead flat. This broke the string of 6 straight higher closes, but only barely and the DIA did eke out a 3-cent gain on the day (whee!). Despite this flat close, the bulls did show some weakness, with higher wicks (QQQ) and Spinning Top candles (SPY and DIA). On the day, SPY fell 0.07%, QQQ fell 0.02%, and DIA rose 0.01%.
However, small-caps diverged as the IWM closed up 0.40% at another all-time high close. The VXX was flat at 16.40 and T2122 fell slightly by remains deep in the overbought territory at 94.65. The dollar fell to a two-week low, which helped boost commodities Tuesday. It didn’t hurt bitcoin either, which traded near $50,000 before backing off to $47,000 at day end. 10-year bond yields fell slightly to 1.16% and Oil (WTI) rose again to $58.30/barrel.
AMZN workers at a warehouse in Alabama are voting (by mail) on whether to form a union. Tensions remain high as the company is staunchly against the move, sending texts, mail, and verbal messages warning workers against the idea. The 6,000 workers have nearly 2 months to cast their votes. Elsewhere, mortgage demand fell again as interest rates rose to a 3-month high. Refinancing fell 4% for the week and new home loan applications were down 5% on the week.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,799,946 confirmed cases and 479,772 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 108,254 new cases per day. Still, deaths remain stubbornly high at 2,905 per day. JNJ’s CEO told CNBC that he thinks people may need an annual Covid-19 booster shot similar to how annual flu shots are recommended…at least for the next few years. In the meantime, the LLY antibody combination treatment received emergency use authorization from the FDA Tuesday night.
Globally, the numbers rose to 107,490,485 confirmed cases and the confirmed deaths are now at 2,353,256 deaths. In good news, the world’s average of new cases is down again to 430,323 per day, but mortality remains high at 12,139 new deaths per day. France has now extended their state of emergency until June. Germany is also set to extend their own lockdown amid fear over the UK and South African variants. In the UK, Transport Minister Shapps said it is far from clear whether UK tourists will be able to travel this summer. Yet in good news, the WHO says that global new case numbers fell 17% last week and a back below 500,000 per day for the first time in many months.
Overnight, Asian markets were mostly green. Hong Kong (+1.91%), Shenzhen (+1.75%), and Shanghai (+1.43%) led the bullish charge. Singapore (-0.32%) was the only appreciable loser on the day. In Europe, markets are mixed, but mostly green so far today on very modest moves. The FTSE (+0.27%), CAC (+0.01%), and DAX (-0.01%) are fairly typical of the modest trading. As of 7:30 am, US Futures are pointing toward a flat to modestly higher open. The DIA is implying a +0.29% open, the SPY implying a +0.33% open, and the QQQ implying a +0.34% open at this point.
The major economic news for Wednesday includes Jan Core CPI (8:30 am), Crude Oil Inventories (10:30 am), the Federal Budget (12:30 pm), Jan. Federal Budget Balance (2 pm) and a Fed speaker (Chair Powell at 1 pm). Major earnings reports on the day include BG, CDW, CME, KO, DBD, EEFT, GM, IPG, IQV, PAG, TMHC, TEVA, TM, and UAA before the open. Then after the close, ATUS, ASGN, BHF, CERN, CINF, DCP, EFX, EQIX, IFF, LUMN, MGM, MOH, ORLY, SSNC, TRMB, UBER, WU, XPO, ZG, Z, and ZNGA report.
As the Impeachment Trial continues to grab headlines, earnings and a speech by Fed Chair Powell are likely the strongest market drivers on the day. So far, KO beat on earnings and fell short on sales, UAA reported an unexpected profit, and PAG reported a blowout quarter this morning. However, GM warned that the current global chip shortage could reduce its 2021 earnings by $2 billion. It appears bonds and the dollar are waiting to hear from Chair Powell before they take a direction today.
The market looks toppy here. However, nobody ever built a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline. Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: ORCL, SOLO, BABA, BA, MOMO, ZM, CRBP. 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
Six-Day Winning Streak
After a blistering six-day winning streak that lifted the Dow more than 1500 points, futures markets suggest a modest rest at the open today. Normally we would expect a pullback or, at a minimum, some consolidation after such a robust move. However, with the market hopeful of another 1.9 trillion-dollar deficit spend, we can’t rule out the possibility that indexes could continue to inflate. Today begins the Trump impeachment trial, and with a big day of earnings and the Job opening report, we have plenty to inspire substantial price action. Plan your risk carefully.
Overnight Asian markets closed green across the board with modest gains. European markets trade with modest declines this morning. U.S. Futures suggest a modestly lower open as the bulls take a little breather after the volatile stampede higher that set record highs in four indexes.
Economic Calendar
Earnings Calendar
On Tuesday’s earnings calendar, we have 90 companies stepping up to report. Notable reports include TWTR, CGC, AKAM, CNC, CSCO, CEIX, COTY, DD, ENOH, FISV, FOXA, IT, GLUU, GT, HAIN, HBI, HMC, INCY, J, LYFT, MAT, NRZ, PAA, REYN, SPGI, THC, TRVG, WELL, & YELP.
News & Technicals’
It was a big day for the bulls yesterday, pushing all four indexes to new record highs. After a six-day winning streak that saw the Dow rally more than 1500 points has the T2122 4-week new high/new low ratio suggesting a short-term overbought condition. However, with the Democrats intending to pass the 1.9 trillion stimulus package as soon as possible, the market could undoubtedly inflate higher. According to reports, this will not be a bipartisan effort as the President had suggested. They also plan to press ahead on a $15 an hour minimum wage despite deficit concerns, have unveiled a one-year plan to send up to $3,600 per child to all households, and proposed a plan to forgive up to $50,000 in student debt. Today also begins the impeachment trial of former President Trump, so we have a lot of potential political news to move the market this week.
As I write this report, the U.S. futures point to a modest pullback at the open after posting a robust six-day rally as the fear of the Reddit retail frenzy faded. Index trends are certainly bullish but don’t rule out the possibility of a little rest as we wait for the next stimulus deal. With so many stocks in an extended condition, it’s a little hard to be a buyer because of the additional risk to a logical stop-loss. Remember to take some profits and avoid overtrading. Today we have the Job openings report and a big round of earnings to us on our toes. Plan your risk carefully.
Trade Wisely,
Doug
