Wednesday saw divergence in the market again.  SPY gapped down 1.05%, QQQ gapped down 1.63%, and DIA gapped up 0.24%.  Those opens were an indication of the day ahead for all three major index ETFs.  DIA spent the day slowly and steadily rallying after the gap up.  Meanwhile, QQQ and SPY followed their gaps down with bearish follow-through.  However, all three did bob along their extremes the last couple hours (DIA along the highs and SPY/QQQ along the lows).  This action gave us a large body white candle with a small upper wick in the DIA, a gap-down black-bodied Inverted Hammer type candle that crossed below its T-line (8ema) in the SPY, and a very large gap-down, very-large, black-bodied candle that crossed far below its T-line in the QQQ.  (This was the QQQ’s worst day since 2022, hit by a double whammy of isolationist comments from Trump and a Bloomberg report that the Biden Administration may again tighten export restrictions on tech products being sold to China.)

On the day, six of the 10 sectors were in the red with Technology (-3.48%) way, way out front (by almost 2%) leading the market lower.  On the other side, the Consumer Defensive (+1.14%) sector held up better than the others.  At the same time, SPY fell 1.40%, DIA gained a 0.55%, and QQQ plummeted 2.94%.  VXX gained 3.27% to close at a still extremely low at 10.75.  T2122 fell again but remains in the top half of its overbought territory at 91.48.  On the bond front, 10-year bond yields dropped again to 4.157% and Oil (WTI) spiked 2.67% to close at $82.92 per barrel.  This happened on very heavy volume in QQQ, greater-than-average volume in DIA, and below-average volume in SPY.  So, again Wednesday we saw a divergent day.  DIA powered its way higher, meanwhile Trump’s comments helped crush the big tech stocks that tend to lead the SPY and QQQ.

The major economic news scheduled for Wednesday included June Building Permits, which were about as expected at 1.446 million (compared to a 1.400 million forecast and the May 1.399 million reading).  At the same time, the June Housing Starts were stronger than expected at 1.353 million (versus the 1.300 million forecast and the May 1.314 million reading).  Later, June Industrial Production (Month-on-Month) was down but higher than predicted at +0.6% (compared to a +0.3% forecast but lower than the May +0.9%). On an annual basis, June Industrial Production was up sharply at +1.58% versus May’s +0.34%.  Later, EIA Crude Oil Inventories showed a much larger drawdown than anticipated at -4.870 million barrels (compared to a forecasted -0.900 million barrels and the previous week’s -3.443 million barrels). 

In economic speak news, on Wednesday Fed Governor Waller indicated that a rate cut “is drawing closer.”  However, he also indicates that likely means September or later by saying, “I believe current data are consistent with achieving a ‘soft landing,’ and I will be looking for data over the next couple months to buttress this view.” Waller went on, “While I don’t believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted.”  He continued, saying that under the most optimistic scenario, “I could envision a rate cut in the not-too-distant future.”

After the close, AA, OZK, CCI, DFS, EFX, STLD, and SNV all reported beats on both the revenue and earnings lines.  Meanwhile, KMI, LBRT, and UAL missed on revenue while beating on earnings.  On the other side, FNB and WTFC beat on the revenue line but missed on earnings.

In stock news, on Wednesday, Information (Technology trade publication) reported that both GOOGL and MSFT are offering Chinese companies access to NVDA’s high-end chips (illegal to export to China due to sanctions) via cloud services.  At the same time, LLY (-3.82%) and NVO (-03.87%) stocks fell after private Swiss competitor Roche announced positive Phase 1 study results of its oral GLP-1 drug.  Later, DFS said it will sell its student loan portfolio to CG and KKR for up to $10.8 billion.  (This is a premium over the $10.1 billion principal owed on the loans but far below expected total payback if the loans are repaid with interest.  Meanwhile, the Wall Street Journal reported that BYND has initiated debt restructuring discussions with bondholders due to declining liquidity that has resulted from revenue declines.  After the close, DRI announced it has struck a deal to acquire CHUY for $605 million ($37.50 per share).  (CHUY closed at $25.27 per share.)

In stock legal and governmental news, on Wednesday, COF announced it will commit $265 billion over 5 years to “lending, philanthropy and investment” (read 99.9% to lending operations and investment).  This was done in an attempt to gain approval of its acquisition of DFS and included a promise to maintain lending operations to low- and-moderate-income communities.  Later, the NHTSA announced BMWYY will recall 1,145 US vehicles over air bag concerns.  At the same time, EU antitrust regulators are soliciting rivals’ opinions on a deal between GOOGL and Korean-based Samsung on AI chatbots.  Later, the NTSB announce it has scheduled 20 hours of hearings related to the BA 737 MAX 9 in-flight door plug blowout on an ALK flight in January.  Hearings will take place August 6-7, with 10 hours each day.

Overnight, Asian markets were mixed but leaned slightly to the green on breadth but with the biggest movers still reeling from Trump’s comments.  Japan (-2.36%) and Tiawan (-1.56%) remain scared of being left to the wolf (China) by a transactional and isolationist MAGA administration.  Meanwhile, India (+0.76%) was by far the biggest gainer in the region.  In Europe, the bourses are mostly in the green with only three of 15 exchanges showing red at midday.  The CAC (+0.48%), DAX (+0.19%), and FTSE (+0.58%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed start to the session.  The DIA implies a -0.16% open, the SPY is implying a +0.10% open, and the QQQ implies a +0.35% open at this hour.  At the same time, 10-Year bond yields are back up to 4.186% and Oil (WTI) is just on the red side of flat at $82.78 per barrel in early trading.

The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, and Philly Fed Mfg. Index (all at 8:30 a.m.), June US Leading Economic Indicators Index (10 a.m.), and the Fed’s Balance Sheet (4:30 p.m.).  We also hear from Fed member Daly (6:05 p.m.) and Fed Governor Bowman (7:45 p.m.).  The major earnings reports before the open include ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, and TXT.  Then, after the close, AIR, ISRG, NFLX, PPG, and SCHL report.

In economic news later this week, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, ABT, BKU, CBSH, CHI, HXL, INFY, KEY, MTB, MAN, NVS, TSM, TELNY, TLSNY, and VIRT all reported beats on both the revenue and earnings lines.  Meanwhile, DPZ, MMC, NOK, and TXT missed on revenue while beating on earnings.  On the other side, BX and TCBI beat on revenue while missing on earnings.  However, SNA missed on both the top and bottom line.

In miscellaneous news, Bloomberg reported Wednesday that US is suffering from a massive natural gas glut.  Projections now expect that by October, inventories are expected to reach the highest level since at least 2016.  This is the reason cited for the collapse of the October-January Futures spread.  Elsewhere, President Biden was diagnosed with COVID-19.  Later, the US Dept. of Education announced adjustments to a prior plan which will forgive another $1.2 billion in student debt (covering 35k public service workers).  Finally, at the RNC Convention, the newly appointed VP candidate Vance blamed US wage losses on China.  Felon Navarro also went directly from prison to the stage.  Rather than his previous anti-China talking points, this time (probably understandably) he continued his GOP victimhood agenda, lying about the 2020 election, his plan to steal it, the January 6 attack on the capital, and his conviction for defying a Congressional subpoena.

With that background, it looks as if the markets are indecisive this morning with none of the three major index ETFs showing a premarket candles that is more body than wick. Overall, the short-term trend is mixed (QQQ and SPY down while DIA is up). We are seeing continued rotation out of tech and into small-caps and the traditional mega-cap names. However, for the mid-term and longer-term, there is no way to look at markets except to say they are extremely bullish. In terms of extension, only DIA is stretched (to the upside). Meanwhile, the T2122 indicator remains well overbought. Therefore, the market may still be in need of more rest or a pullback. (Just remember, the market can stay over-extended longer than we can stay solvent predicting a turn too early.) With regard to those 10 big dog tickers, all 10 are in the green this morning. NVDA (+2.17%) and AMD (+1.88%) trying to mount a comeback by the AI chip leaders.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets jumped higher again on Tuesday.  SPY gapped up 0.25%, DIA gapped up 0.37%, and QQQ gapped up 0.29% to start the day.  From there, was saw divergence. SPY chopped its way sideways until 2:15 p.m. before rallying into the close.  At the same time, DIA rallied sharply from the open until 11:15 a.m.  Then it meandered sideways until 1:30 p.m. before rallying more modestly but steadily the rest of the day.  For its part, after the gap higher, QQQ immediately faded the gap and sold off to reach the lows of the day at 12:30 p.m.  The rest of the say saw a modest QQQ rally that got it back just above the prior close by the end of the session. This action gave us a huge, gap-up, white candle in the DIA (with tiny upper wick), a gap-up white-bodied candle in the SPY, and a black-bodied long-legged Spinning Top in the QQQ. DIA and SPY both printed new all-time highs and new all-time high closes.  Meanwhile, QQQ retested its T-line (8ema) from above and passed the test again.

On the day, all 10 sectors were in the green with Industrials (+2.72%) leading the market, but the gains were wide-spread with five sectors up more than 1.70%.  On the other side, Energy (+0.14%) was by far the laggard sector.  At the same time, SPY gained 0.58%, DIA gained a whopping 1.81%, and QQQ gained 0.04%. (It is worth noting that for the fourth consecutive day we have seen a rotation into small-caps with IWM (+3.76%) way out in front of the three major index ETFs.  VXX gained 0.97% to close at a still extremely low at 10.41.  T2122 spiked to the extreme top end of its overbought territory at 99.20.  On the bond front, 10-year bond yields dropped sharply to 4.161% and Oil (WTI) fell 1.31% to close at $80.84 per barrel.  This happened on very heavy volume (twice the average volume) in DIA, but less than average volume in SPY and QQQ.  So, Tuesday was a divergent day with a modest selloff in most of the tech names that have led markets for ages.  NVDA (-1.62%), GOOGL (-1.40%), and META (-1.28%) fell.  However, among the DIA names, UNH (+6.47%), CAT (+4.31%), BA (+3.91%), and HD (+2.97%) spiked.  (It is worth noting that 19 of the 30 were up more than 1.00%.) 

The major economic news scheduled for Tuesday included the June Import Price Index, which was flat and lower than expected at 0.0% (compared to a forecast of +0.2% but higher than the May -0.2% reading).  On the other side, the June Export Price Index was also lower than expected at -0.5% (versus a -0.1% forecast but not as far down as in May when the value was -0.7%).  At the same time, June Core Retail Sales were much stronger than predicted at +0.9% (compared to a forecasted +0.2% and a May reading of +0.4%).  For the headline number, June Retail Sales were flat at 0.0% (versus the forecast of -0.3% and the May value of +0.3%).  Later, May Business Inventories grew 0.5% (compared to a +0.4% forecast and April’s +0.3%).  At the same time, May Retail Inventories were flat at 0.0% (versus a 0.0% forecast and down from April’s +0.3%).  Then, after the close, the API Weekly Crude Oil Stocks report showed a significant drawdown of 4.440 million barrels (compared to the prior week’s -1.923-million-barrel drawdown). 

In economic speak news, on Tuesday, Fed Governor Kugler expressed cautious optimism that inflation is falling back to the FOMC’s 2% target.  She said, “We’re seeing more progress on all three categories now.” (She was referring to inflation on goods, services, and housing.)  Kugler continued, “I’m cautiously optimistic that we’re seeing progress and the type of progress that we need to get back to 2%.”  She indicated that the job market is rebalancing, saying, “This continued rebalancing suggests that inflation will continue to move down toward our 2% target.”  She also said that if current trends continue, “I anticipate that it will be appropriate to begin easing monetary policy later this year.”

After the close, HWC, IBKR, and OMC all reported beats on both the revenue and earnings lines.  Meanwhile, JBHT missed on both the top and bottom lines.

In stock news, on Tuesday, PM announced it would be expanding the production of its nicotine pouches (Zyn), investing $600 million to build a new CO plant to expand their production.  Later, Russian tech firm YNDX spun off a portion of its business called Nebius Group, located in Amsterdam, for $5.4 billion.  (EU sanctions against the founder of YNDX were lifted in March, allowing the deal to proceed.)  At the same time, Bloomberg reported that VZ is in talks over the possibly of selling 5,000-6,000 cell service towers across the US.  VZ is reportedly looking for $3 billion.  (In 2015, VZ sold 11,000 towers to AMT for $5 billion.)  Meanwhile, TCRT announced a 1-for-10 reverse split to take effect July 17 at 5 p.m.  At the same time, 28k flight attendants will vote on whether to authorize a strike as their AFA union will begin negotiating a new contract with UAL.  After the close, Bloomberg reported that TSLA is hiring hundreds of new employees for its yet to be approved robotaxi program.  (Each robotaxi must constantly be monitored by a human supervisor due to deficiencies in the long claimed “full self-driving” system.)

In stock legal and governmental news, on Tuesday, Reuters reported that the FTC has requested details on its deal to hire the top executives and researchers from AI startup Adept.  (Similar investigations are also ongoing related to MSFT and GOOGL hiring away the main talent from AI startups.)  At the same time, SKX filed suit against private brand LL Bean, alleging the latter infringe on two of SKX’s patents.  Later, Reuters reported that the European Commission has told VLKAF (Volkswagen) and BMWYY (BMW) that they may consider lowering the tariffs on those two carmakers’ imports from China of electric vehicles.  (The article said the EC is willing to classify the two automakers as “cooperating companies,” which would make them eligible for 20.8% tariffs compared to the general China EV tariff of 37.6%.)  Meanwhile, TRP said that an arbitration tribunal has thrown out its claim seeking to recover $15 billion from the US government related to the cancellation of the Keystone XL pipeline.  At the same time, a group of restaurants in the Houston area filed a $100 million lawsuit against CNP alleging the utility has displayed incompetence and negligence in efforts to restore power quickly following Hurricane Beryl. 

Overnight, Asian markets were evenly mixed. Taiwan (-0.95%) and South Korea (-0.80%) paced the losses while New Zealand (+0.88%) and Australia (+0.73%) led the gainers.  In Europe, with the notable exception of Russia (+1.39%) we see red across the board at midday.  The CAC (-0.57%), DAX (-0.81%), and FTSE (-0.33%) lead the region lower in early afternoon trade.  Meanwhile, in the US, markets are looking to gap lower on Trump’s statements that foreign nations (Taiwan and South Korea…and by implication Europe) should pay for US military facilities and expenditures).  The DIA implies a -0.34% open, the SPY is implying a -1.01% open, and the QQQ implies a -1.55% open at this hour.  At the same time, 10-Year bond yields are down to 4.172% and Oil (WTI) is up half a percent to $81.15 per barrel in early trading.

The major economic news scheduled for Wednesday includes June Building Permits and June Housing Starts (both at 8:30 a.m.), June Industrial Production (9:15 a.m.), EIA Crude Oil Inventories (10:30 a.m.), and Fed Beige Book (2 p.m.).  Fed Governor Waller also speaks at 9:35 a.m.  The major earnings reports before the open include ALLY, ASML, CFG, ELV, FHN, JNJ, NTRS, PLD, SYF, and USB.  Then, after the close, AA, CCI, DFS, EFX, KMI, LBRT, STLD, SNV, UAL, and WTFC report.

In economic news later this week, on Thursday, we get Weekly, Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, US Leading Economic Indicators Index, Fed’s Balance Sheet.  We also hear from Fed member Daly and Fed Governor Bowman.  Finally, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, Thursday, ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, TXT, AIR, ISRG, NFLX, PPG, and SCHL report.  Finally, on Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, ASML, ELV, JNJ, NTRS, SYF, and USB all reported beats on both the revenue and earnings lines.  Meanwhile, ALLY and ASAZY missed on revenue while beating on earnings.  On the other side, CFG and FHN beat on revenue while missing on earnings.  ASML and ALLY posted significant earnings beats.  However, ASML lowered forward guidance.

In miscellaneous news, BAC released the results of its survey of fund managers.  This time, the survey finds that fund managers are still bullish on stocks.  However, growth expectations are the lowest since March of 2022.  27% now expect a softening global economy over the next 12 months (up sharply from just 6% feeling that way in June).  Nonetheless, 68% still expect a soft landing in the US, with another 18% expecting no landing at all.  Only 11% are expecting a hard landing. In addition, 67% of the surveyed expect no recession in the next 12 months.  Meanwhile, Bloomberg reported that Wall Street’s biggest banks have pulled off a clean sweep this quarter, all reporting higher-than-expected gains. They have averaged an 18% increase in revenue during Q2. Finally, after the close, Cox Automotive reported car repossessions were up 23% in the first half of 2024 compared to the first half of 2023.

With that background, it looks as if the market is dropping and will be seeking shelter after the disgraced ex-President’s remarks. QQQ gapped down through its T-line (8ema), SPY gapped lower and is now retesting its T-line from above, but DIA is just giving a modest lower candle in the early session after a massive gain Tuesday. All three major index ETFs have printed a black-body candle since the start of the early session. Overall, the short-term trend remains bullish but perhaps under pressure. We are seeing rotation out of tech and into small-caps and the traditional mega-cap names. However, for the mid-term and longer-term, there is no way to look at markets except to say they are extremely bullish. In terms of extension, only DIA is stretched (to the upside). Meanwhile, the T2122 indicator remains extremely overbought. Therefore, the market may be in need of some rest or a pullback. (Just remember, the market can stay over-extended longer than we can stay solvent predicting a turn too early.) With regard to those 10 big dog tickers, nine of the 10 are in the red this morning. AMD (-4.51%), NVDA (-4.05%) and any other name that depends on Taiwan is down hard on Trump’s isolationist comments. Only INTC (+0.58%) has managed to stay on the green side of flat among those market leaders.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets jumped higher to start the week.  SPY gapped up 0.37%, DIA gapped up 0.57%, and QQQ gapped up 0.40% to start the day.  From there, SPY and QQQ rallied steadily to follow-through and reach the highs of the day at about 11:25 a.m. After that, both sold back off steadily into the gap again at 2:15 p.m.  At that point, both SPY and QQQ made a modest rally back above the opening level before selling sharply the last 30 minutes of the day.  Meanwhile, after its gap higher, DIA sold off for 30 minutes before following the two broader major market index ETFs higher until noon.  Then it followed the others, selling back into the gap and reaching the lows at 1:40 p.m. before rallying back above the open.  DIA finally got in-sync with its broader brothers selling off hard the last 30 minutes of the day.  This back-and-forth action gave us indecisive, black-bodied Doji candles in all three major index ETFs. SPY and DIA both printed new all-time highs and new all-time high closes.  QQQ retested its T-line (8ema) from above and passed the test.

On the day, the 10 sectors were split evenly Monday with five in the green and five in the red.  Financial Services (+1.35%), Energy (+1.19%), and Industrials (+1.12%) led the gainers while Utilities (-1.99%) was by far (by more than 1.20%) paced the losers. At the same time, SPY gained 0.28%, DIA gained 0.51%, and QQQ gained 0.27%. (It is worth noting that for the third day in a row, IWM (+1.90%) was well out in front of the three major index ETFs.  VXX gained 1.48% to close at a still extremely low at 10.31.  T2122 fell just a bit again, but remains in the top end of its overbought territory at 95.61.  On the bond front, 10-year bond yields popped to 4.23% and Oil (WTI) fell just a bit to close at $81.92 per barrel.  So, Monday was the volatile day where markets all gapped higher, rallied to the highs in the morning, sold off to the lows in the afternoon only to bounce the last few minutes.  This happened on above-average volume in DIA, average volume in the QQQ, and below-average volume in the SPY.

The major economic news scheduled for Monday was limited to NY Empire State Mfg.  Index, which came in slightly lower than expected at -6.60.  Compare this to a forecast of -5.50 and the June reading of -6.00.

In economic speak news, on Monday, Fed Chair Powell indicated that the recent CPI data had boosted FOMC confidence that inflation is falling.  When asked about Fed confidence, Powell said, “What increases that confidence in that is more good inflation data, and lately here we have been getting some of that.”  Powell went on to say that he does not expect the Fed to wait until inflation reaches the 2% target before cutting rates, because that could undercut economic expansion.  He said, “The implication of that is that if you wait until inflation gets all the way down to 2%, you’ve probably waited too long.”  Powell was also questioned about whether he will serve out his term, given the questioning of FOMC policies during his tenure.  Powell bluntly answered “Yes” (indicating he will serve his entire term).  Later, San Francisco Fed President Daly echoed Powell’s remarks on confidence.  She said, “Confidence is growing that we are getting nearer a sustainable pace of getting inflation back down to 2%.”  She continued, “I’m not going to tell you when the rate cut is, how many rate cuts might come,” … “Over time, as inflation comes down and the labor market slows, we have to make sure that we’re holding rates high enough that we don’t lose that inflation fight, but not hold them too long and risk worsening the labor market to a point where it’s challenging for people to get jobs.” 

In stock news, on Monday, CLF announced it is acquiring Canadian steel company Stelco for $2.5 billion.  At the same time, SEDG announced it would lay off 400 (7% of workforce) employees in Israel as it tries to improve profitability.  Later, M announced it had ended acquisition talks with two private equity firms.  (The talks had been ongoing for months.)  After the close, the Wall Street Journal reported that a “hacktivist” group (Nullbulge) has obtained and leaked data from DIS’s internal communication system. The released data included everything from computer code, to excerpts from financial reports, to assessments of job candidates, to photos of employee dogs.  At the same time, GM declined to reiterate its 2025 forecast of producing 1 million electric vehicles.

In stock legal and governmental news, on Monday, the French competition authority confirmed that it is investigating NVDA related to “anti-competitive practices.”  At the same time, UBER lost an appeal of its lower court victory (which had ruled UBER rival taxi operators would be charged a 20% tax on profits).  Later, PYPL was fined $27.3 million by the Polish antitrust agency for failing to spell out which activities may cause consumers to be fined (ambiguous contract fine print).  At the same time, VRTX sued the US Dept. of HHS, seeking a court declaration that the company’s financial support for some patients does not violate US anti-kickback laws.

Overnight, Asian markets had seven of 12 exchanges in the green.  However, Hong Kong (-1.60%) was the biggest mover while Shenzhen (+0.86%) led the gainers.  In Europe, the bourses lean heavily to the red side at midday with 12 of 15 exchanges in the red.  The CAC (-0.79%), DAX (-0.48%), and FTSE (-0.29%) are leading the region lower in early afternoon trade.  Russia (+1.39%) is again an outlier.  Meanwhile, in the US, as of 7:15 a.m., Futures are pointing to a modestly green start to the day.  The DIA implies a -0.10% open, the SPY is implying a +0.15% open, and the QQQ implies a +0.21% open at this hour.  At the same time, 10-Year bond yields are down sharply to 4.18% and Oil (WTI) is off just over one percent to $80.94 per barrel in early trading.

The major economic news scheduled for Tuesday includes June Import Price Index, June Export Price Index, June Core Retail Sales, and June Retail Sales (all at 8:30 a.m.), May Business Inventories and May Retail Inventories (both at 10 a.m.), and API Weekly Crude Oil Stocks report (4:30 p.m.).  The major earnings reports before the open include BAC, SCHW, MS, PNC, PGR, STT, and UNH.  Then, after the close, IBKR, JBHT, and OMC report.

In economic news later this week, on Wednesday, June Building Permits, June Housing Starts, June Industrial Production, EIA Crude Oil Inventories, and Fed Beige Book are reported.  Fed Governor Waller also speaks.  Then Thursday, we get Weekly, Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, US Leading Economic Indicators Index, Fed’s Balance Sheet.  We also hear from Fed member Daly and Fed Governor Bowman.  Finally, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, on Wednesday, ALLY, ASML, CFG, ELV, FHN, JNJ, NTRS, PLD, SYF, USB, AA, CCI, DFS, EFX, KMI, LBRT, STLD, SNV, UAL, and WTFC report.  On Thursday, ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, TXT, AIR, ISRG, NFLX, PPG, and SCHL report.  Finally, on Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, BAC and UNH have reported beats on both their revenue and earnings lines.  Meanwhile, PNC missed on revenue while beating significantly on the earnings line.  (SCHW, MS, PGR, and STT report closer to the opening bell.)

In miscellaneous news, Reuters reported Monday that the cost to transport a standard 40-foot shipping container from Shanghai to New York is pushing $10k ($9,387).  This is more than double the rate in February but still well below the early pandemic high of almost $16k.  The increase in costs is mostly attributed to attacks from Yemeni Houthi rebels (which have caused longer routes around the horn of Africa).  This increase in shipping costs will either pressure company margins, contribute to inflation, or both as the Israeli invasion of Gaza shows no signs of an Israeli withdrawal yet.  Elsewhere, the CDC sent a field team to CO to help the state deal with an outbreak of bird flu after four confirmed cases and a fifth suspected case were reported.  (Based on current information, the CDC said it believes the risk to people in the public are low.  However, farm workers and livestock herds are at significant risk.)  Meanwhile, Bolivia announced the discovery of the largest natural gas field found since 2005.  The single 1.7 trillion cubic feet field (located in northern Bolivia) is about 17.5% the size of the total US natural gas reserves. (However, bear in mind that it will take years to develop the field and build the infrastructure to transport the natural gas to global markets from the land-locked nation.)

With that background, it looks as if the SPY and QQQ are bullish again this morning while DIA is much more undecided. SPY and QQQ both opened the premarket slightly lower, but have put in white-bodied candles with only lower wick since that point. Meanwhile, DIA also opened slightly lower and also ran higher before backing down again to have a high-wick, Doji candle at this point. All three major index ETFs remain above their T-line (8ema). So, regardless of your timeframe, the market trend (short-term, mid-term, or longer-term) remains very bullish. In terms of extension, DIA remains the only one of the three that can be said to be stretched above its T-line. However, the T2122 indicator still remains in the top end of its overbought range. Therefore, the market may be in need of some rest or a pullback. With regard to those 10 big dog tickers, nine of the 10 are in the green this morning. TSLA (+1.29%) is again the biggest mover and also leading the market in premarket dollar volume traded. Only MSFT (-0.02%) is below break-even among those market-moving stocks.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

The Bears just couldn’t stand their success from the day prior and let the Bulls run on Friday. SPY gapped up 0.23%, DIA gapped up 0.30%, and QQQ opened up by 0.12%.  From there, all three major index ETFs rallied sharply until 11:30, took a one-hour rest and then rallied again to the highs of the day at 1:55 p.m.  At that point, we saw very modest profit-taking and a sideways grind until 3:30 p.m.  However, traders took profits hard the last 30 minutes, giving back half or more of the day’s gains.  This action gave us gap-up, white-bodied candles in all three with large upper wicks.  SPY and QQQ printed Bullish Harami candles with QQQ crossing back above its T-line (8ema).  SPY also printed another new all-time high.  Meanwhile, DIA also printed a new all-time high and new all-time high close.  This happened on well above-average volume in DIA, as well as just below-average volume in the SPY and QQQ.

On the day, all 10 sectors were in the green with Consumer Cyclical (+1.17%) out in front leading the rest of the sectors higher.  Meanwhile, Energy (+0.31%) was the laggard sector. At the same time, SPY gained 0.61%, DIA gained 0.68%, and QQQ gained 0.59%. VXX fell 1.74% to close at an extremely low at 10.16.  T2122 fell just a bit to remain in the top end of its overbought territory at 96.34.  On the bond front, 10-year bond yields dropped to 4.181% and Oil (WTI) was down almost half a percent to close at $82.24 per barrel.  So, Friday was the Bull’s day all day with significant profit-taking the last 30 minutes giving back a fair amount of the daily gains. It is worth noting that INTC (+2.96%), IBM (+2.55%), and AMGN (+1.77%) led the DIA to its new all-time highs…but it was a broad-based move with 22 of the 30 DIA tickers in the green.  Meanwhile, 401 of 501 of the SPY were green and 81 of 101 of the QQQ were above break-even.

The major economic news scheduled for Friday included June Core PPI, which came in hotter than expected at +0.4% (compared to a +0.2% forecast and May’s +0.3%).  This led to a June PPI of +0.2% (versus a forecasted +0.1% and May’s 0.0% value).  Later, Preliminary July Michigan Consumer Sentiment was lower than predicted at 66.0 (compared to the 68.5 forecasted and June’s 68.2 reading).  At the same time, the July Preliminary Michigan Consumer Expectations were also lower than anticipated at 67.2 (versus the 69.8 forecast and June’s 69.6 value).  On the forward-outlook side, the July Michigan 1-Year Inflation Expectations were 2.9% (in-line with the forecast and a tick better than June’s 3.0% number).  In the longer term, July’s Michigan 5-Year Inflation Expectations were better than predicted, also at 2.9% (versus a 3.0% estimate and June reading).

The US Dept. of Agriculture WASDE report also came out Friday.  It raised estimates for US corn production and reduced the soybean production estimate.  (Forecasts of large US crops in both have pushed both commodity prices down since the Spring.  The USDA also lowered its US national corn inventory (not growing, in storage) estimate by 8.4% from June.  (This could mean short-term prices may increase, which is what Friday’s market saw.) 

In stock news, on Friday, LUV and ACHR announced they have agreed to mutually develop operational plans for electric air taxis in CA and TX airports.  At the same time, Reuters reported exclusively that EADSY (Airbus) has launched a cost cutting program that includes a headcount freeze aimed tackling a problem with increased per jet cost of production.  (No layoff plans were reported, but “all costs” were on the table per the article.)  Meanwhile, the Financial Times reported that UL is planning massive layoffs in Europe, with layoffs of a third of officer workers (roughly 3,200) taking place between now and the end of 2025.  Later, T announced (after an SEC filing revealed) that it had suffered a massive hack, losing data from 109 million customer accounts (nearly all of its cellular or landline customers) text and calls from six months in 2022.  (The FBI is investigating and at least on person has been arrested so far.)  After the close, Reuters reported that BHP and LUNMF are in talks about making a joint bid for copper miner FLMMF.  Then, on Sunday, the Wall Street Journal reported that GOOGL is near to striking a deal to acquire cybersecurity firm Wiz for roughly $23 billion.  (If completed, it would be GOOGL’s largest acquisition ever.)

In stock legal and governmental news, on Friday, India’s antitrust regulator said AAPL exploited its position in the app market.  Later, Reuters reported that BG and GLNCY (Glencore)-backed Viterra have offered to sell off their assets in two EU countries in order to get European Commission approval of their $34 billion merger.  At the same time, a US District Court of Appeals rejected appeals made by DISH and an amateur astronomer group, upholding the lower-court decision in favor for FCC approval for SpaceX to deploy thousands (up to 7,500) of Starlink satellites.  Later, C asked a judge to dismiss a conservative racial discrimination lawsuit that alleged the bank violated civil rights law by waiving ATM fees for customers of minority-owned banks.  At the same time, Bloomberg reported that federal prosecutors are investigating ABR over allegations (that were made by short sellers) of lending practices and financial disclosures.  Later, a US Appeals Court has temporarily put the FCC’s reinstatement of net neutrality rules on hold until August 5.  The court will consider appeals by the telco companies.  (The rule which was set to go back into effect July 22 requires internet service providers to treat all network traffic equally, rather than throttling some and charging higher rates for certain types of traffic.)  At the same time, a NY Federal Judge ruled AMZN must comply with an EEOC subpoena related to its investigation into allegations that company discriminated against pregnant workers.

Overnight, Asian markets were evenly mixed, but the biggest movers were to the red side.  Japan (-2.45%) and Hong Kong (-1.52%) led half of the region lower.  In Europe, the bourses are much more bearish with only four of 15 exchanges in the green at midday.  Russia (+1.39%) is a notable outlier.  The CAC (-.044%), DAX (-0.21%), and FTSE (-0.23%) are leading the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a gap higher.  The DIA implies a +0.56% open, the SPY is implying a +0.43% open, and the QQQ implies a +0.49% open at this hour.  At the same time, 10-Year bond yields are up to 4.221% and Oil (WTI) is off slightly to $82.13 per barrel in early trading.

The major economic news scheduled for Monday is limited to NY Empire State Mfg.  Index (8:30 a.m.).  However, Fed Chair Powell speaks at noon and Fed member Daly speaks at 4:35 p.m.  The major earnings reports before the open include BLK and GS.  Then, after the close, there are no major reports scheduled.

In economic news later this week, on Tuesday we get June Import Price Index, June Export Price Index, June Core Retail Sales, June Retail Sales, May Business Inventories, May Retail Inventories, and API Weekly Crude Oil Stocks report.  On Wednesday, June Building Permits, June Housing Starts, June Industrial Production, EIA Crude Oil Inventories, and Fed Beige Book are reported.  Fed Governor Waller also speaks.  Then Thursday, we get Weekly, Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, US Leading Economic Indicators Index, Fed’s Balance Sheet.  We also hear from Fed member Daly and Fed Governor Bowman.  Finally, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, on Tuesday we hear from BAC, SCHW, MS, PNC, PGR, STT, UNH, IBKR, JBHT, and OMC.  Then Wednesday, ALLY, ASML, CFG, ELV, FHN, JNJ, NTRS, PLD, SYF, USB, AA, CCI, DFS, EFX, KMI, LBRT, STLD, SNV, UAL, and WTFC report.  On Thursday, ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, TXT, AIR, ISRG, NFLX, PPG, and SCHL report.  Finally, on Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, GS reported beats on both the revenue and earnings lines.  BLK missed on revenue while beating handily on earnings.

In miscellaneous news, Reuters reported that rating agencies (MCO and Fitch) said Friday that office and other commercial real estate loan delinquencies ticked up in June.  The report said that overall commercial mortgage-backed loans delinquency rate rose to 2.45% (from 2.42% in May).  (This is the rate of loans with payments at least 30-days in arrears.)  Elsewhere, Israeli PM Netanyahu reversed (reneged) on a previous major point in ceasefire negotiations with Hamas.  Israel now says it demands to control the flow of Palestinians back to the North during any ceasefire versus a prior concession of “free Palestinian movement” during a ceasefire.  This essentially ended the talks for now as Netanyahu tries to shore up his extreme right-wing alliances.  On Sunday, CNP (the main electric provider in the Houston area) said half a million residences and businesses remain without power going into the new week.

In way too early earnings season news, Friday saw the early reporting big bank stocks punished, despite all of them reporting beats versus consensus estimate. For example, WFC closed down 6.02%, C down 1.81%, and JPM down 1.21%.  Some analysts attributed this to the constituent details of the reports.  (For instance, WFC reported less interest income than expected although it did beat over overall revenue estimates by $440 million.)  Other analysts said they believed it had to do with forward outlook such as JPM’s Jamie Dimon warning that inflation and interest rates may stay higher than the market expects and may hurt the overall economy.  However, still others said it was pure profit-taking.  Whatever the reason, it was worth noting that only Energy underperformed the Financial Services sector on Friday, despite reports that were good at first glance.

With that background, it looks as if the Bulls want to run this morning. All three major index ETFs gapped higher to start the premarket and have printed white-body candles with no wicks since that start. DIA is testing Friday’s all-time high again in the early session. All three remain above their T-line (8ema). So, regardless of your timeframe, the market trend (short-term, mid-term, or longer-term) remains very bullish. In terms of extension, DIA is now the only one of the three major index ETFs stretched above its T-line. However, the T2122 indicator is in the top end of its overbought range. Therefore, the market may be in need of some rest or a pullback. With regard to those 10 big dog tickers, eight of the 10 are in the green this morning. TSLA (+4.07%) is the biggest mover and also leading the market in premarket volume. Only MSFT (-0.12%) and META (-0.21%) are below break-even among those market-moving stocks.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Thursday was a profit-taking day in the markets.  After, good CPI data, SPY opened +0.02%, DIA opened +0.09%, and QQQ opened +0.06%.  However, at that point we saw divergence with the broader SPY and QQQ selling off briskly before bobbling near the lows to close out the say.  Meanwhile, DIA rallied and sold off and meandered sideways in positive territory the rest of the day.  This action gave us large, black-body Bearish Engulfing candles in the SPY and QQQ.  QQQ also crossed back below its T-line (8ema) for the first time in nine days.  (SPY did print another all-time high, but not all-time high close.)  At the same time, DIA printed a modest gap-up, large-legged Doji.  This happened on above-average volume in QQQ and DIA, as well as modestly below-average volume in the SPY. 

On the day, nine of the 10 sectors were in the green with Basic Materials (+2.07%) out in front leading almost all of the rest of the sectors higher.  Meanwhile, Technology (-1.34%) was by far (by more than 1.80%) the weakest sector as we may have seen some rotation out of the big dog tech names that have led the market for a long, long time. At the same time, SPY lost 0.86%, DIA gained 0.09%, and QQQ lost 2.19%. VXX gained a little most than half a percent to close at a still extremely low at 10.34.  T2122 spiked for the second-straight day into extreme overbought territory at 97.97.  On the bond front, 10-year bond yields were down again to 4.207% and Oil (WTI) gained 1.08% to close at $83.00 per barrel.  So, Thursday was a major profit-taking day or rotation on good CPI news.  (Perhaps traders think the CPI data foreshadows a rate cut and/or change in economic cycle position.)  Regardless of the cause, all 10 of the big dog names were down more than 1% for the day, led by TSLA (-8.44%), NVDA (-5.57%), and META (-4.11%).

The major economic news scheduled for Thursday included June Core CPI (month-on-month), which fell and was below expectations at +0.1% (compared to a forecast and May reading of +0.2%).  On a Year-on-Year basis, June Core CPI was also down at +3.3% (versus a forecast and May value of +3.4%).  On the headline number, June CPI (month-on-month) actually fell and was below predictions at -0.1% (compared to a forecast of +0.1% and a May reading of 0.0%).  On the Year-on-Year basis, June CPI was also down and below what was anticipated at +3.0% (versus a +3.1% forecast and a May +3.3% number).  At the same time, Weekly Initial Jobless Claims were notably down at 222k (compared to a 236k forecast and a 239k previous week reading).  For the Weekly Continuing Jobless Claims, number was also down at 1,852k (versus a 1,860k forecast and the prior week’s 1,856k value).  Later, the June Federal Budget Balance was a bit better than expected at -$66.0 billion (compared to a forecast of -$71.2 billion and drastically down from May’s -$347.0 billion).  Then, after the close, the Weekly Fed Balance Sheet showed a modest increase of $2 billion at $7.224 trillion (versus the prior week $7.222 trillion).

In economic speak news, on Thursday, San Francisco Fed President said that the recent better inflation data area relief.  She said, “With the information we have received today, which includes data on employment, inflation, GDP growth, and the outlook for the economy, I see it as likely that policy adjustments, some policy adjustments, will be warranted.”  At the same time, St. Louis Fed President Musalem indicated that Thursday/s CPI data was encouraging.  He said, “The June Consumer Price Index points to encouraging further progress toward lower inflation.”  Later, Chicago Fed President Goolsbee told a group interview, “My view is, this is what the path to 2% looks like.”  He also indicated yesterday’s report was “excellent news” that indicate the stronger than expected May CPI data was just “a bump in the road.”  He went on to say, “The reason to be as restrictive as that and the reason to tighten in real terms would be if you thought the economy was overheating. This is not in my view what an overheating economy looks like.”

In stock news, on Thursday, MSTR announced it will undergo a 10-for-1 split for the holders of record on August 1.  Later, PFE announced it will move ahead with a pill form of its GLP-1 weight loss drug.  This comes after a 20-person study showed concerns over side effects from the pills.  At the same time, RTX was awarded a $1.2 billion contract to provide additional Patriot missile systems to Germany.  Later, QS said it has signed a strategic partnership with VLKAF (Volkswagen) to develop new battery technologies.  (QS closed up 30.50% on the day on this news.)  At the same time, BCSF announced it will buy ENV for $4.5 billion.  Later, IBATF announced it has become the first company to commercialize a lithium extraction technology, selling a license to its filtration technology to private miner US Magnesium.  (Beating RIO and SLI to this milestone.)   At the same time, GM announced plants to invest $900 million to retool an MI plant to build electric vehicles.  Meanwhile, Bloomberg reported that TSLA will delay the launch of its robotaxis until October.  (This was yet another delay from the previously announced August 8 unveiling.)

In stock legal and governmental news, on Thursday, the EU antitrust regulator said AAPL has agreed to open its “tap-and-go” payments system to rivals in order to avoid sanctions under one of three ongoing EU antitrust investigations of the company.  This came even as the head of the agency said “so far is that we have not seen a change in behavior on Apple’s side when it comes to our preliminary findings.”  Later, the Dept. of Energy awarded GM and STLA nearly $1.1 billion in grants to build electric vehicles and components.  Meanwhile, CVX and HES announced they expect the FTC to review their proposed merger in Q3.  (This announcement came after Bloomberg reported the FTC would delay its decision on the merger until Q4.)  At the same time, the EPA and Dept. of Justice announced MRO had agreed to a $241 million settlement (including a $64 million fine) for violations of the Clean Air Act.  Later, DG agreed to pay a $12 million penalty to the Dept. of Labor for alleged safety violations.

Overnight, Asian markets were mixed but leaned toward the green side.  Hong Kong (+2.59%) was by far the biggest gainer.  Meanwhile, Japan (-2.45%) and Taiwan (-1.94%) were by far the biggest losers, following Thursday’s US Tech selloff.  In Europe, we see mostly green at midday.  The CAC (+0.69%), DAX (+0.41%), and FTSE (+0.31%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed, flat start to the morning.  The DIA implies a +0.09% open, the SPY is implying a +0.01% open, and the QQQ implies a -0.09% open at this hour.  At the same time, 10-Year bond yields are back up a bit to 4.217% and Oil (WTI) is up almost another percent to $83.37 per barrel on hopes for economic stimulus from the Fed.

The major economic news scheduled for Friday include June Core PPI and June PPI (both at 8:30 a.m.), Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations (all at 10 a.m.), and the WASDE Ag report (noon).  The major earnings reports before the open include BK, C, ERIC, FAST, JPM, and WFC. However, there are no major reports scheduled for after the close.

In miscellaneous news, following Thursday’s CPI data, the CME Fedwatch tool shows that 8.8% of fed fund futures trades expect a rate cut at the July 31 meeting, but 91.2% expect no cut.  However, for the September 18 meeting, Fed Fund futures indicate a 92.7% probability of a rate cut.  Elsewhere, more than 1.2 million residences and businesses remain without power in South TX following hurricane Beryl and officials said 500k will remain without power into next week.  Finally, the EU said early Friday that Elon Musk’s former Twitter deceives users and breaches EU online content rules.  If confirmed, X (Twitter) could face a fine up to 6% of global annual turnover.

So far this morning, BK, JPM, and WFC all reported beats (easily) on both the revenue and earnings lines.  Meanwhile, FAST missed slightly on revenue while coming in in-line of earnings.  On the other side, ERIC beat easily on revenue while missing on the earnings line.  (C reports at 8 a.m.)

With that background, it looks as if markets have all moved modestly, but indecisively bullish in the premarket. SPY and DIA are printing Doji in the early session while QQQ has put in a white-body candle that recovered from a premarket opening gap lower. The SPY and DIA remain above their T-line (8ema) while QQQ seems just about ready to retest its own T-line from below this morning. So, regardless of your timeframe, the market trend (short-term, mid-term, or longer-term) remains very bullish despite yesterday’s big black candle. In terms of extension, DIA is now the only one of the three major index ETFs stretched above its T-line. However, the T2122 indicator is in the top end of its overbought range. Therefore, oddly after yesterday’s candle, the market may be in need of more rest or a pullback. With regard to those 10 big dog tickers, they are split 50-50 this morning with 5 in the green and 5 in the red. META (-1.76%) is the biggest mover while TSLA (-0.91%) has traded the most dollar volume in the early session. NVDA (+0.49%) is just behind TSLA in dollar-volume this morning.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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