Earnings and Loan Demand Lead News

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Markets gapped down and then put in a very volatile day as stocks rallied strong after Fed Chair Powell told us inflation was “still soft” and the Fed remains committed to the current “easy money” policies, including buying bonds.  This left us with white-body indecisive candles that can be seen as Hammer candles (if you squint).  On the day SPY gained 0.12%, DIA gained 0.05%, and QQQ lost 0.30%.  The VXX fell 4% to 15.08 and T2122 also fell back to 72.05.  The 10-year bond yields fell slightly to 1.353% and Oil (WTI) rose slightly to $61.88/barrel.

SQ bought $170 million in bitcoin Tuesday.  Then overnight a 6th Chinese city launched their country’s Central Bank official digital currency ($6 million worth) as a test.  Also last night, Bloomberg reported that Japan’s most expensive brokerage (Monex Group) has made a massive rally, up 136% this year, strictly on cryptocurrency bets.  The story just goes to show that more and more of the world’s mainstream financial institutions and governments are starting to accept and invest in the crypto revolution.  This all comes one day after Treasury Sec. Yellen warned that bitcoin was an “extremely inefficient” way to conduct monetary transactions…hinting at the need for the government to regulate those currencies and markets.

Mortgage demand plummeted 11% week-on-week on rate spikes, but may also be distorted by the winter storm impacts.  In other business news, LOW announced a beat on earnings on 28% same-store sales growth.  However, they warned that DIY trends could fade away as consumers return to a more normal life. OMI also beat on the topline, but unlike Lowes, OMI came in almost a percent light on revenue.  Oil patch names like HFC also missed on both top and bottom lines.  In the tech space, IRM missed badly on earnings (over 55%) on an almost 4% revenue miss.

Related to the virus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 28,897,718 confirmed cases and deaths have now passed half a million at 514,996 deaths.  As mentioned, the number of new cases is starting to level-out and uptick at an average of 70,255 new cases per day.  Oddly, deaths, which have always lagged, seem to be preceding this plateau and rose back up to 2,126 per day.  With that backdrop, the White House said Tuesday that 2 million doses of the JNJ single-shot vaccine can be available next week, pending FDA approval. In addition, White House Press Sec. Psaki also said that states will now get 14.5 million doses/week (up from 8.6 million/week).  President Biden also indicated that masks will be sent directly Americans.

Globally, the numbers rose to 112,739,376 confirmed cases and the confirmed deaths are now at 2,498,495 deaths.  However, the trends have good until very recently.  The world’s average of new cases has up-ticked slightly to 369,614 per day.  Mortality also ticked up, now at 9,522 new deaths per day.  In Europe, Ireland extended their lockdown through April 5.  Meanwhile, Scotland is leaving lockdown and returning to a multi-tier system of restrictions, with the youngest children returning to in-person school next week.  In Spain, the government said it will quadruple the number of available doses during Q2 relative to now.  And in China, another Chinese vaccine maker has filed for Chinese approval after their tests show 65% efficacy (15% less effective than the first Chinese vaccine claimed).

Overnight, the few Asian markets were strongly in the red.  Hong Kong (-2.99%), South Korea (-2.45%), and Shenzhen (-2.03%) led the way lower, but losses were broad and significant.  However, in Europe, markets are almost all modestly green as of mid-day.  The FTSE (+0.05%), and CAC (+0.13%) are flat while the DAX (+0.74%) is leading the way higher.  As of 7:30 am, it appears the US is following Europe up this morning.  The DIA is implying a +0.10% open, the SPY implying a +0.19% open, and the QQQ implying a +0.22% open at this hour.

Major economic news for Wednesday includes Jan. New Home Sales (10 am), Crude Oil Inventories (10:30 am), and 3 Fed speakers (Chair Powell testifies at 10 am, Brainard at 10:30 am, and Clarida at 1 pm).  Major earnings reports on the day include BHC, CQP, LNG, CLH, ELAN, ETR, EXC, HFC, HZNP, IRM, LOW, ODP, OSTK, OMI, PSN, PNW, PPD, RY, SBGI, SITE, TEN, TJX, and VRT before the open.  Then after the close AMED, ANSS, APA, BKNG, BKD, CW, FNF, GEF, ICLR, LB, VAC, NTAP, NVDA, PARR, CNXN, RYI, SPTN, STN, FTI, TPC, UNVR, and VIAC report.

With little new data and Fed Chair Powell unlikely to say anything today that he didn’t say yesterday, it will be earnings reports that are likely to fill the minds of traders today. Meanwhile, the midwest (and TX in particular) are getting back to pandemic normal life as political and business fallout gathers steam. The chop and pullback of the last week were punctuated Tuesday with a high volume major intraday reversal. Is that the capitulation of bears on the pullback? I’m not sure, but it did signal the bulls are ready to jump back in at any time.

That said, the trend remains bearish on a daily level and we have to respect the trend until it is broken. Remember that knife-catching is not a long-term trading career path. Trading is a marathon, not a sprint.  Achieve your ambitions in the long-run by hitting short-term goals over and over again. Forget about predicting reversals or breakouts. Just follow the trend, respect support and resistance, and don’t chase the moves you missed.  Book your trade goals when you can and stick with your discipline.  If you keep locking in your profits when you have them, you’ll never go bust.

Ed

Swing Trade Ideas for your consideration and watchlist: PENN, FCX, MLM, M, PINS, SNAP, APPS. 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

|607% in just 24 months |

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

500,000 American Deaths

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500,000 American Deaths

A sad new world record was made yesterday as the U.S.  topped 500,000 American Deaths due to the pandemic.  However, the infection rates are declining, and there may be a light at the end of this very long and grim tunnel.  Facebook struck a deal with Australia to restore service, but the tech sector remains a bit of concern after breaking the bullish trend.  Jerome Powell will testify today, and it seems to have the market a bit on edge this morning, so it may be wise to keep an eye on price action as he speaks today.

Asian markets closed mixed but mostly higher overnight as HSBC topped earnings estimates.  However, European markets are in decline this morning, lead by the DAX trading down over 1% this morning.  The U.S. fluctuated dramatically overnight, but the premarket pump is trying to put on a brave face, currently suggesting a flat open ahead of earnings and the Powell testimony. 

Economic Calendar

Earnings Calendar

On the Tuesday earnings calendar, we have 60 companies reporting quarterly results.  Notable reports include AAN, APLE, ARNC, AGR, BMO, BNS, BCO, COG, CHE, CLVS, CSGP, CBRL, DK, FLS, FI, HEI, HD, INTU, JAZZ, LDOS, M, MCFE, MDT, NXST, PXD, RRD, SPT, SQ, TRI, TOL, & UPWK.

News and Technicals’

Yesterday the U.S. hit a grim world record with more than 500,000 American deaths due to pandemic.  The silver lining is that the rate of infections is declining, and vaccine availability is growing around the country.  Facebook struck a deal with Australian news creators and will begin restoring the services it banded just last week.  Apparently, the trending #deletefacebook struck a chord with the company leadership.  Treasury Security Yellen sounded a warning yesterday about the ‘extremely inefficient way to conduct monetary transactions with bitcoin.  She went on to say there remain important questions about the legitimacy and stability of the blockchain and cited dangers that it poses to investors.  Home Depot tops earnings estimates this morning, reporting a 25% surge in sales. However, the stock is not seeing much price benefit from the report in the premarket. 

Tech had a rough day yesterday, even as the DIA managed to squeak out a modest gain on the day.  During the night, futures have fluctuated substantially between gains and losses, with the premarket pump once again lifting price off of overnight lows.  We have a busy day earnings and some Jerome Powell testimony that seems to have the market a little on edge this morning.  The House plans to pass the Biden Covid relief bill this week without a single bi-partisan vote in other political news setting up an interesting test for the newly formed Senate. Expect the Washington spin machine to shift into high gear in the days ahead.  Technically speaking, the SPY and QQQ are beginning to raise some concerns after the selling yesterday.  Stay focused and prepared for anything.

Trade Wisely,

Doug

Will Choppy Price Continue?

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Choppy Price

Will the choppy price action continues this week?  Rising treasury rates and jobless claims coupled with declining housing numbers added some uncertainty to the market condition.  However, the indexes held onto bullish trends and price supports with the hope of big stimulus checks next month.  The QQQ and SPY are the most concerning at the moment, leaving behind dark cloud cover candle patterns that suggest more lows are possible.  A big week of earnings and economic data will keep us on our toes and likely continue price volatility.

Asia markets traded mostly lower overnight after China left the benchmark lending rate unchanged.  European markets trade lower across the board this morning, and U.S. futures point to a bearish open as treasury yields continue to rally.  Buckle up it could be a bumpy ride this morning.

Economic Calendar

Earnings Calendar

We have 38 companies reporting quarterly results this Monday.  Notable reports include AL, ACC, AWR, AU, BCC, CTB, CVI, FANG, DISCA, DISH, EXR, FIVN, DGOT, HTA, LSI, MRO, NHI, NLS, OXY, OKE, PANW, REAL, O, RSG, RCL, RIG, WMB, & ZI.

News & Technicals’

Every day last week started with a gap up open that immediately found sellers directly after.  Overall there was little to no bearishness, just a week of a week choppy consolidating price action raising a little uncertainty.  Higher jobless claims and a significant shift lower in housing as worries of rising rates battled with the expectation of more stimulus.  With treasury yields climbing this morning, the bears show a bit of feistiness this morning, suggesting a lower open.   Following a United Airlines engine failure, Boeing removed 24 777 aircraft from service as the FAA orders inspections.  During the night, China keeps benchmark lending rates unchanged.  After a brutally cold week, Texas residents are suffering once again with enormous energy bills.

Although trends remained bullish last week, choppy price action raised considerable uncertainty.  The QQQ tested and held a key support area, but it looks as if it will gap below it this morning.  Both the SPY and QQQ left behind dark cloud cover candle patterns raising some concern of a possible follow-through as we begin a new week.  Today we have a very light economic calendar, but earnings reports will keep us on our toes.  Though we have some bearishness showing this morning keep in mind with big stimulus checks expected next month, we can’t rule out the possibility of a buy the dip rally.  Stay focused, avoid making rash decisions while waiting to see if the bears have the wherewithal to push on lower.

Trade Wisley,

Doug

BA Bad News and Relief Bill Rush Starts

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Markets gapped up Friday, ground sideways the rest of the morning, sold off at lunchtime and then ground sideways the rest of the day.  The left the 3 major indices with black candles on modest moves for the day.  The SPY and QQQ printed Dark Cloud Cover type candles.  On the day SPY was down 0.18%, DIA was down 0.20%, and QQQ was down 0.44%.  The VXX fell over 3.5% to 15.10 and T2122 rose back into the overbought territory at 85.59.  10-year bond yields shot up again to 1.34% and Oil (WTI) fell 2.5% to $59.01/barrel.

Following on the GME hearings last week, on Friday Democratic Rep. Waters (who chairs the Financial Services Committee) said she is considering putting forward a tax on financial transactions in an effort to reduce transactions and curb high-frequency activity.  The idea died on the vine a decade ago as major financial industry lobbies all opposed it.  However, it has long been the dream idea of some liberals.  During his campaign, President Biden said he supported the idea, but put forth no details or plans.

BA suffered another rough weekend as two US events impacted the same model plane.  The 777-200 plane had cowling blow off during takeoff in one event and an engine blew up mid-flight (near Denver) in the other.  The FAA has now ordered an inspection of all model 777-200 that have Pratt-Whitney engines to be inspected. The only US airline that flies that model is UAL and the airline took 24 planes out of service Sunday evening to facilitate the inspections. Separately, a BA 747-400 cargo plane also suffered an engine explosion shortly after takeoff that rained debris on a Dutch town on a flight bound for the US.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,765,423 confirmed cases and deaths have now passed half a million at 511,133 deaths.  However, the number of new cases continues to fall quickly and is back down to the October level as the average new cases are now 69,002 new cases per day.  However, deaths remain at a stubbornly high level of 1,983 per day. 

Globally, the numbers rose to 112,027,570 confirmed cases and the confirmed deaths are now at 2,479,313 deaths.  However, the trends are good.  The world’s average of new cases continues to fall quickly and is now down to 360,270 per day.  Mortality lags but is also falling, now down to 9,398 new deaths per day.   The number of new cases is rising slightly in Germany, which stands out because of the precipitous fall elsewhere.  However, in the UK, PM Johnson announced a roadmap to reopening by removing restrictions step-by-step. 

Overnight, the few Asian markets were mostly red.  Shenzhen (-2.11%), India (-2.04%), and Shanghai (-1.45%) led the way lower.  Japan (+0.46%) and Taiwain (+0.42%) were notable holdouts on the bullish side.  The same is true so far today in Europe, where the only green at this point is Athens (+0.84%) and Norway (+0.77%).  At mid-day, the FTSE (-0.63%), Dax (-0.58%), and CAC (-0.42%) are typical of the continent.  As of 7:30am, it appears the US is following the rest of the world lower.  The DIA is implying a -0.53% open, the SPY implying a -0.73% open, and the QQQ implying a -1.30% open at this hour.

There is no major economic news for Monday.  Major earnings reports on the day include CTB, DISCA, DISH, KBR, and VTRS before the open.  Then after the close, AL, CDNS, CVI, FANG, GFL. IR, MRO, OXY, OKE, PANW, PRIM, RSG, RIG, and WMB report.

With no data and not many major earnings reports to start the week, it looks like we will follow Europe and Asia lower. congress is bound to make some news this week as they dash to approve the Democratic or Biden Administration relief bill. Meanwhile, the midwest (and TX in particular) are trying to get back to pandemic normal life while repairing broken pipes, cleaning water damage, and in many cases dealing with electric bills in the thousands. (Many Texans pay based on power company market costs, and those skyrocketed in the last 10 days. This caused many to be without power while at the same time others had power but were paying exorbitant prices.) The sideways chop (consolidation) of the last 2 weeks has taken a toll on many in the market. However, in the longer view, bulls still have the upper hand and we remain less than a percent from all-time highs. So, beware of volatility (gap and fade we’ve seen recently), but stay on the right side of the trend until it is broken.

Remember that trading is a marathon, not a sprint. You don’t have to trade every day and don’t try to get rich quick.  Do it in the long-run by hitting goals over and over again. Forget about predicting reversals or breakouts. Neither catching knives nor chasing trains is not a good career path. Just follow the trend, respect support and resistance, and don’t chase the moves you missed.  Book your trade goals when you can and stick to your discipline.  If you keep locking in your profits when you have them, you’ll never go bust.

Ed

Swing Trade Ideas for your consideration and watchlist: C, PFG, ADS, HCA, F, FB, CVS, HOME, URI, DFS, MGM, GE, ALLY. 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

|607% in just 24 months |

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

Jobless Claims Spook Market

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Jobless Claims

Indexes briefly reacted negatively yesterday with jobless claims rising and housing starts declining, suggesting the so-called recovery is struggling.  However, combat that Jannet Yellen came out with a go-big promotion for more stimulus and futures turned bullish this morning.  Today we have a relatively light day on the earnings calendar with readings on PMI and Existing Home Sales after the open.  Though the price action this week suggests some uncertainty, the overall trends remain bullish.  With our next stimulus fix on the way, soon stay with the trend and ride the wave as long as it lasts.

Overnight Asian markets recovered early losses to close with modestly mixed results.  European markets trade cautiously higher this morning, with a focus on earnings.  U.Ss futures recovered from overnight lows, pointing to a modestly bullish open ahead of earnings and economic reports.  Price action remains somewhat choppy, so plan your risk carefully as we slide into the weekend.

Economic Calendar

Earnings Calendar

We have a lighter day on the Friday earnings calendar with just over 40 companies fessing up to quarterly results.  Notable reports include AEE, DE, DTE, ERF, E, MGA, & MGI.

News & Technicals’

The indexes experienced a little selling yesterday, reacting to higher than expected joblessness and a substantial decline in housing starts.  However, this morning futures are trying to shake off the weakening recovery after Janet Yellen pitches for the massive 1.9 trillion stimulus package.  Facebook made the news again, banning thousands of Australian accounts after deciding to block publishers from sharing and viewing news content on its site.  The #deletefacebook hashtag is trending across other social platforms. 

Although the indexes price action has experienced a lot of chop this week, the overall bullish trends continue to hold.  Without question, the economic data has raised some uncertainty. Still, with the market now addicted to newly printed money and the promise its next fix is just around the corner, the economy’s condition no longer seems to matter.  I believe this will end badly in the long run, but for now, all we can do as traders stay with the trend.  That said, we must remain disciplined, avoid overtrading with a fear of missing out and chasing already extended stock prices.  An outsider looking at our index charts would have to assume that the pandemic was the best thing that’s ever happened to our economy!  However, we all know that is not the case.  Stay focused and flexible, sticking to your trading rules, and be prepared should the market stumble.

Trade Wisely,

Doug

Order Flow Payment and UBER News

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Markets gapped down significantly, largely in reaction to an unexpectedly bad Weekly Initial Jobless Claims number and a week forecast during the WMT report.  However, after the gap, all 3 major indices slowly ground back toward the prior candle.  This left all three in white-bodied indecisive Doji or Spinning Top type candles.  On the day, SPY lost 0.43%, DIA lost 0.33%, and QQQ lost 0.44%.  The VXX was up slightly to 15.66 and T2122 fall back to mid-range at 56.00.  10-year bond yields gained slightly to 1.297% and Oil (WTI) fell almost 2% to $60.08/barrel.

The Congressional hearings Thursday made for a tough day for both Robinhood and Citadel who got blasted by House members on both sides of the political aisle.  Citadel was left defending “payment for order flow” while Robinhood CEO Tenev had to defend that business model as well as not allowing customers to buy GME.  However, Reddit and Reddit Trader Keith Gill (Roaring Kitty) received praise from both sides.  There were also a couple of revelations, such as that over 50% of Robinhood’s revenue comes from payments for order flow (selling customer orders to the highest bidder).  In addition, it was disclosed that Citadel is the broker’s largest counter-party, buying most of the orders that Robinhood sells.   It also came out that on January 28, Robinhood was nearly out of business when the clearinghouse demanded $3 billion in posted capital and the company could not come up with that amount.  (They stayed afloat by negotiating the clearinghouse down to $1.4 billion, which the company could raise from investors.)

The UK version of the Supreme Court has ruled unanimously that UBER drivers are employees, not independent contractors.  UBER now has to go back to the country’s employment court to determine what back compensation their workers are due.  The threat is that Europe and even US courts could take the same position in the future. However, this court ruling deals a blow to not only to UBER, but to all “gig economy” based companies that have been relying on contractors to reduce costs by transferring responsibilities to workers.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,523,524 confirmed cases and deaths have now passed half a million at 505,309 deaths.  However, the number of new cases continues to fall quickly and is back down to the October level as the average new cases are now 73,858 new cases per day.  However, deaths remain at a stubbornly high level of 2,075 per day.  Mid-day on Thursday, WMT’s CEO told CNBC that his customers need another round of stimulus checks and need it quickly.  Then in the evening, Treasury Sec. Yellen made her push for a big package of relief, fast in interviews Thursday evening.  Along those lines, House Democrats hope to pass their version of the $1.9 trillion relief package next week according to Speaker Pelosi.  It appears they will be doing it without GOP support.

Globally, the numbers rose to 110,929,475 confirmed cases and the confirmed deaths are now at 2,454,516 deaths.  However, the trends are good.  The world’s average of new cases continues to fall quickly and is now down to 361,898 per day.  Mortality lags but is also falling, now down to 9,976 new deaths per day. UK PM Johnson has called for the G7 Countries to work together as a coalition to be able to develop vaccines and treatments to pathogens (like the Covid variants) and test them within 100 days.  This would be about 3 times faster than the first covid vaccines were rolled out.   French President Macron then urged the G7 to donate 4%-5% of their available vaccine doses to developing countries.

Overnight, the few Asian markets were mixed.  Australia (-1.34%) and Japan (-0.72%) led the losses, while Shenzhen (+0.75%) and South Korea (+0.68%) led the gains.  In Europe, markets are also mostly green so far today.  The FTSE (+0.10%) is just above flat, but the CAC (+0.63%) and DAX (+0.52%) are moderately green at mid-day.  As of 7:30 am, US Futures are pointing toward a positive open.  The DIA is implying a +0.26% open, the SPY implying +0.36%, and the QQQ implying a +0.53% open at this hour.  

The major economic news for Friday is limited to Mfg. PMI and Services PMI (both at 9:45 am), Jan. Existing Home Sales (10 am) and a Fed speaker (Rosengren at 11 am).  Major earnings reports on the day include DE, DTE, ITT, MGA, and POR before the open.  There are no major earnings reports after the close.

With modest data, limited earnings reports, and Congress still not back in DC, the market does not have a clear driver for the day. It is Friday and with the winter storm projected to move into New York City today, we may see some of the big players head home early. The sideways and lower trading of this week has taken a toll. However, the bulls remain in control of the trend in a broader sense. So, beware of volatility (gap and fade we’ve seen recently) and get positioned for the weekend.

Forget about predicting. Knife-catching is not a good career path. Just follow the trend, respect support and resistance levels, and don’t chase the moves you missed.  Book your trade goals when you can and stick to your discipline.  If you keep locking in your profits when you have them, you’ll never go bust. Remember that trading is a marathon, not a sprint. You don’t have to trade every day and don’t try to get rich quick.  Do it in the long-run by hitting goals over and over again. Also, remember it’s Friday, so don’t forget to pay yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: DRI, SMAR, DOCU, H, MGM, KO, SAVE, CLSK, IQ, MU. 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

|607% in just 24 months |

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

Choppy Mixed Bag of Results

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Choppy Mixed Bag

With a choppy mixed bag of results on Wednesday, the bullish momentum seems to have run into a bit of uncertainty.  The DIA set a new all-time high as it defiantly rallied while SPY, QQQ, and IWM slipped modestly lower.  Today, we have another big day of data coming our way, and although the futures currently point to lower open, anything is possible as the market reacts to the news.  Keep an eye on the GameStop hearing in Congress as it could have market implications and news-related price reactions.

Overnight Asian markets traded mixed but mostly lower, and European markets flip-flop between modest gains and losses this morning.  Ahead of a big day of data that includes Housing Starts, Jobless Claims, and the Philly Fed traders should prepare for just about anything even though futures currently suggest a cautiously lower open.

Economic Calendar

Earnings Calendar

On the Thursday earnings calendar, we have more than 100 companies reporting quarterly results.  Notable reports include WMT, BCS, GOLD, BLMN, APRN, COG, CBB, CVA, CS, DBX, FE, FVRR, FTDR, GLPI, GLOB, HL, HRL, HST, IDA, LTC, NEM, OPI, OPK, PLNT, PPL, RXT, SO, TXRH, TTD, TPH, TRIP, VTR, WM, & WST.

News & Technicals’

Futures point to a lower open the day after a choppy mixed bag of results on Wednesday.  The DIA defiantly rallied to a new record high, with SPY, QQQ, and IWM indexes moving marginally lower.  Today Congress will hold a hearing to investigate the short squeeze inspired by the Reddit community.  Robinhood, Citadel, and Reddit CEO’s will testify as well as the Roaring Kitty the turn out hold a securities license and now faces fraud charges from the SEC.  Interactive Brokers chair says the financial system came dangerously close to failure during the GameStop mania.  Facebook has decided to block all news from Australia from being posted on the social platform even as Google reached a revenue-sharing agreement with news creators.  Facebook has also decided it will debunk climate change myths and will be the sole judge of truth.  Who else is getting tired of the truth filter of the all-knowing Facebook!

Though the choppy price action is raising some caution flags, index trends remain bullish.  That said, we seem to have lost some momentum, and a bit of uncertainty has crept into the mix.  Today we have another big day of earnings and economic data that includes Jobless claims.  Currently, futures suggest a lower open, but with so much data coming our way before the bell, traders should prepare for just about anything.

Trade Wisely,

Doug

Much News Today Including GME Hearing

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Markets gapped down about a third of a percent in the large-caps and about one percent in the QQQ on Wednesday.   However, after a little morning vacillation, the bulls stepped in and tried to drive price back up.  This left is with cap-down white candles across the board.  Of the 3, only the QQQ printed a candle signal and that was an indecisive Spinning Top.  On the day, SPY (+0.02%) was flat, DIA (+0.32%) was up and QQQ (-0.48%) was down.  VXX fell 2% to 15.58 and T2122 fell out of the overbought territory down to 71.83.  10-year bond yields fell a bit to 1.282% and Oil (WTI) rose a dollar to $61.14/barrel on the back of the winter storm demand.

The Dow was buoyed by VZ and CV, which saw major moves on reports that BRKB had taken a major stake in Q4.  (Everybody wants to follow Buffett.)   The afternoon rally was helped by FOMC minutes that showed that an easy money policy will be in place for longer than many expected.  The group’s focus was clearly on getting employment back to pre-pandemic levels regardless of the cost.  Retail Sales in January also surged 5.3%, blowing away the consensus estimate of +1.2%.  This seems to signal that people are spending their December stimulus checks and just the opposite of the FOMC, indicate a potential for inflation. 

The key players in the recent “social media short squeeze” will be testifying today in front of the House Financial Services Committee.  The CEOs of Reddit, Robinhood, Melvin Capital, Citadel and a key Reddit trade known as “Roaring Kitty” will all testify about GME stock price manipulation.  Conspicuously absent from the list are major brokerages who also temporarily banned the shorting or trading of GME stock, such as SCHW, eTrade, Fidelity, IBKR, etc.  So, perhaps they will have their turn in the barrel in a different hearing.

Related to the virus, US infections continue the recent trend of decreasing new cases.  The totals have risen to 28,453,526 confirmed cases and deaths have now passed half a million at 502,544 deaths.  However, the number of new cases continues to fall quickly and is back down to the October level as the average number of new cases are now 79,112 new cases per day.  Unfortunately, deaths remain stubbornly high at a level of 2,145 per day.  Related to this, the ports of Los Angeles and Long Beach (the two largest US ports) have begun diverting container ships to alternate ports because over 800 post workers are out sick with Covid.  Unload times at these ports have risen from less than 3 days to more than 8 days as stretched staff have seen a major increase in traffic since last fall. This will add cost and likely delays to incoming freight.

Globally, the numbers rose to 110,520,588 confirmed cases and the confirmed deaths are now at 2,442,946 deaths.  However, the trends are good.  The world’s average of new cases continues to fall quickly and is now down to 367,784 per day.  Mortality lags but is also falling, now down to 10,239 new deaths per day.  In England, the government reported that new infections have dropped by two-thirds from the peak. However, in some “bad actor” news, Belgium reported that they have caught 184,000 violations of pandemic rules since last March (on a country of 11.5 million), but only 97,000 people were issued fines.

Overnight, the few Asian markets were mostly red.  Hong Kong (-1.58%) and Malaysia (-1.22%) led the losses.  However, there were a couple of holdouts with Shanghai (+0.55%) and Taiwan (+0.38%) closing higher.  In Europe, markets are also mostly red so far today.  The FTSE (-0.70%) and CAC (-0.22%) are down, but the DAX (+0.13%) is staying just above flat.  As of 7:30 am, US Futures are pointing toward a lower open.  The DIA is implying a -0.31% open, the SPY implying -0.40%, and the QQQ implying a -0.74% open at this hour. 

The major economic news for Thursday includes Philly Fed Mfg. Index, Jan. Building Permits, Jan. Import/Export Index, Jan. Housing Starts, and Weekly Initial Jobless Claims (all at 8:30 am), Crude Oil Inventories (11 am), and a couple Fed speakers (Brainard at 8 am and Bostic at 10 am).  Major earnings reports on the day include AAWW, GOLD, BLMN, CFX, EPAM, FE, HRL, KELYA, LKQ, MAR, NEM, OMC, RS, SRE, SO, SYNH, TECK, TPH, VTR, VC, WAB, WMT, and WM before the open.  Then after the close, COLD, AMN, AMAT, ATR, ANET, CNDT, ED, CPRT, EBS, KEYS, QDEL, RXT, ROKU, TDS, TXRH, and USM report.

With a lot of economic news out this morning, especially Jobless Claims and Housing data, markets do not seem optimistic. The winter storm also continues to weigh on sentiment in much of the country. However, the bulls remain in control of the trend as the bears have not been able to get enough traction for even a small pullback. Still, there may be market-related news out of the Congressional Hearing today that may shake things up again.

Forget about predicting. Knife-catching is not a good career path. Just follow the trend, respect support and resistance levels, and don’t chase the moves you missed.  Book your trade goals when you can and stick to your discipline.  If you keep locking in your profits when you have them, you’ll never go bust. Remember that trading is a marathon, not a sprint.  Don’t try to get rich quick.  Do it in the long-run by hitting goals over and over again.

Ed

Swing Trade Ideas for your consideration and watchlist: DXCM, AIG, PFE, CB, SNAP, PENN, C, KR, UNG. 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.

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Rising Bond Rates

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Rising Bond Rates

Rising bond rates created a little uneasiness yesterday, robbing the bullish energy created in the morning gap to new highs.  This morning the rapid decline in mortgage applications due to the rising interest rates may also contribute to futures taking a wait-and-see approach.  We have a big day of earnings and economic reports with PPI and Retail Sales before the bell and the FOMC minutes later this afternoon.  I think it’s fair to say anything is possible with that much data for the market to digest. 

Asian markets traded mixed overnight, with Hong Kong surging more than 1%.  European markets show modest declines across the board as they track rising Treasury yields.  Ahead of a big day of data, the U.S. Futures point to flat but slightly lower open at the time of this report.  However, with a significant day reports, anything is possible. Stay focused and flexible.

Economic Calendar

Earnings Calendar

On the Wednesday earnings calendar, we have just short of 100 companies reporting quarterly results.  Notable reports include SHOP, ALB, ADI, AXTA, BIDU, SAM, BCOV, FUN, CAKE, CHH, CDE, CONE, ET, EQT, FSLY, GRMN, GPC, GOOD, HVT, HLF, H, IAG, IQ, JACK, MIC, MANT, MRO, NI, OC, PAAS, SNBR, STMP, RGR, SPWR, SKT, TLRY, TWLO, WCN, WING, & WIX.

News & Technicals’

While the DIA made a new record high yesterday, it was not the kind of price action that provided a lot of confidence.  I mentioned being careful of the possibility of a pop and drop pattern after the substantial gap up.  Although we did pullback after the open, there was no technical damage in the price action; in fact, it could have been much worse with the concerns of rising bond yields.  The bitter cold snap highlighted a significant deficiency in the U.S. power grid and exposed a massive deficiency in green energy efforts.  The rolling blackouts affected a large portion of the county, with Texas being the hardest hit from the winter storm.  According to reports, SpaceX raised another $850 million in funding, increasing the company valuation overnight.  The European-based game developer Epic Games filed an antitrust complaint against Apple as the attack on big tech continues.

Trends remain very bullish, but with concerns of rising bond rates, U.S. Futures seem to be taking a wait-and-see approach this morning.  Mortgage applications reported another decline in demand at the fastest pace in months as interest rates rise.  We have a busy economic calendar with PPI and Retail Sales before the bell.  The consensus expects an increase in retail numbers due to the last stimulus checks.  Also, keep in mind the industrial production numbers and the FOMC minutes later this afternoon.  If that’s not enough to create price volatility, toss in about 100 earings reports for the market to digest as well.  Anything is possible, so stay focused on price action.

Trade Wisely,

Doug