While the severe cold is slowing down most of the country, the bulls remain undeterred, with the futures pointing more index records at the open. Although we have a short market week of trading, we have a week chalked full of earnings and economic reports for traders to digest. Expect price volatility to remain high as a result. Be careful chasing the morning record-setting gap with a fear of missing out. Please make sure we see follow-through buying and not the dreaded pop and drop that we can sometimes experience at market highs. Stay focused and flexible.
Overnight Asian markets rallied with lead by the HIS up nearly 2% on the day. However, European markets are trading nearly flat and have fluctuated throughout the morning, seemly concerned about the extending risk rally. The U.S. Futures don’t share that concern with the bulls charging forward, likely to set new records in the DIA, SPY, and QQQ at the open. Fasten your seatbelts as the buying frenzy continues.
Economic Calendar
Earnings Calendar
As we begin a short market week, we have about 80 companies stepping up to report quarterly results. Notable reports include AAP, A, ALX, ACC, AIG, ANDE, AN, CAR, BYD, CLR, DENN, DVN, ECL, ES, EXAS, EXPD, GEO, INVH, LZB, LPX, OXY, PLTR, RNG, TRU, VNO, YNDX & ZTS.
News & Technicals’
As ugly cold snap grips, the country’s oil hits pandemic highs, with rolling blackouts due to the massive demand for power. However, the cold has not dampened the spirit of the bulls as they pushed sharply higher overnight. The 30-year Treasury yield is holding above 2%, a level not seen in nearly a year. Not satisfied with the Trump acquittal, Speaker Pelosi has announced an independent 9/11-style commission on the Capitol riot. According to reports, Australia will support the proposed media law on Facebook and Google. The new law would require the media giants to pay for the news created by other agencies. Google has threatened to turn off its search app in the country should it pass. Should other countries join in with this tactic, it would have far-reaching impacts on social media.
Though the market experienced a little price weakness last week, the futures are fired up this morning. If current prices hold until the open, the DIA, SPY, and QQQ will set new record highs a the open, with a sharp gap-up move. Trends are decidedly bullish, but I suspect the T2122 indicator will suggest a very extended condition at the open. Before chasing in with a fear of missing out, let’s make sure we see follow-through buying rather than getting caught in a classic pop a drop price pattern. We have a busy week of earnings and economic calendar news, so continue to expect wild price volatility while trying to price in the next round of government stimulus.
Markets were dead most of the day Friday, but a strong rally on volume the last half hour took all 3 major indices on near the highs of the day. This created large-body Bullish Engulfing candles in the SPY and QQQ, while the DIA missed engulfing by 7 cents. On the day, SPY gained 0.51%, QQQ gained 0.56%, and DIA lagged at +0.11%. With that said, all 3 of the major averages closed at another all-time high close. The VXX fell over 3% to 15.74 and T2122 remains well into the overbought territory at 88.11. 10-year bond yields spiked to 1.205% and Oil (WTI) gained almost 2.5% to close at $59.66/barrel.
Also on Friday, ahead of their taking this week off, House Democrats pushed forward the parts of the relief plan that cover the $1,400 direct payments, payments to families with children (up to $3,600/child under age 6), and an extension of unemployment. These portions are out of committee and are still on track to be passed as a single “budget” bill to be reconciled with Senate versions by the end of the month. In unrelated news, President Biden called on Congress to pass “commonsense gun laws” on Sunday. The specifics called for are an elimination of immunity for gunmakers, universal background checks, and a ban on selling “assault-style” weapons and high-capacity magazines. This may well move gun stocks like RGR, SWBI, VSTO, etc.
Interesting news out of oil giant RDS. The Dutch company said on Monday that they believe the world hit “peak oil production” in 2019 with the Covid outbreak accelerating the move away from Oil. In fact, RDS said they main profit center will become liquified natural gas as time moves forward. With that said, the price of oil has hit a pandemic high this this last week, with WTI trading at $61.77 at one point, and is holding above $60 in the winter storm, which theoretically ought to stoke more production. Still, carmakers like GM are fast-tracking the move to electric vehicles with Chevy also adding 2 new electric models to their Bolt line on Monday.
Related to the virus itself, US infections continue to be of concern in the US. The totals have risen to 28,317,703 confirmed cases and 498,203 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 87,603 new cases per day. However, deaths remain at a stubbornly high level of 2,481 per day. While new cases are down 62% this week, the CDC also announced Sunday that they have identified 7 new US-originated variants. Still, PFE and MRNA are contracted to deliver another 130 million doses over the next 6 weeks (versus the 70 million that have been delivered so far). So, we may be turning a corner.
Globally, the numbers rose to 109,747,785 confirmed cases and the confirmed deaths are now at 2,420,609 deaths. In good news, the world’s average of new cases is down again to 379,868 per day, but mortality remains high at 11,084 new deaths per day. NVAX announced Monday that the Phase 3 trials for its own COVID vaccine are now fully subscribed. This comes as some countries are easing social distancing measures despite warnings about relaxing too early. The latest to follow this trend are Hong Kong, Netherlands, and Israel.
Overnight, the few Asian markets that were open were mostly green. Japan (+1.28%) and South Korea (+0.52%) led the way. In Europe, markets are mostly modestly green so far today. The FTSE (+0.24%), CAC (+0.05%), and DAX (+0.03%) are a typical spread with a few minor exchanges like Portugal (+1.57%) standing out. As of 7:30 am, US Futures are pointing toward a green open. All 3 major indices are implying a moderate gap higher lower of about +0.55% on average at the opening bell.
The major economic news for Tuesday is limited to NY Fed Empire State Mfg. Index (8:30 am) and a Fed speaker (Daly 3 pm). Major earnings reports on the day include AAP, ALLE, AN, BRKR, CVS, ECL, EXPD, JELD, LPX, TRU, USFD, VMC, and ZTS before the open. Then after the close, A, AIG, ANDE, CAR, BYD, CLR, DVN, MCY, and OXY report.
With Congress gone for the week and limited news today, it looks like the bulls are still in charge. The winter storm gripping most of the country is likely to dominate the news. Even earnings are limited today. So, over-extension seems to be the main thing that might slow the bulls stepping back in after the 3-day weekend.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. So, keep locking in your profits when you have them. Stick with your plan, maintain discipline and work your process. Remember it’s Friday and we have a 3-day weekend coming. So, pay yourself and get your portfolio set for the long weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: DAL, HYLN, UAL, VLO, WYNN, PENN, MRVL, ALLY, SOHU. 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.
🎯 DickCarp: 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.
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
We dedicate the entire E-learning session to reading a company balance sheet and fundamental analysis. We dig into the details and point out red flags for those wanting longer term positions.
In this E-Learning calls I talk about methods I use to hedge individual positions. I cover not only how I use options to reduce risk but also enhance profits of individual trades.
In this E-Learning session I discuss my method for hedging my entire portfolio using options. Markets don’t always go up and this method has saved my bacon many times turning an ugly correction into a profitable possibility.
Although most of the country will be dealing with cold conditions over this 3-day weekend, I would not rule out the possibility of light and choppy day as traders get way early to extend their time off. Even though indexes seemed to struggle to hold the bullish momentum, there was little to no fear that accompanied yesterday’s profit-taking. As we slide into the uncertainty of a long weekend, it would not be odd to see additional profit-taking with traders reducing risk. As long as index trends and support levels hold banking, some recent gains may be a wise move.
Asian markets we mostly closed to as they celebrate their new year. European markets trade mixed but mostly flat this morning as they react to the 9.9% economic slump reported in the U.K. U.S. futures currently suggest a slightly lower open with light earnings and economic calendars. Plan your risk carefully as we head into the weekend.
Economic Calendar
Earnings Calendar
On the Friday earnings calendar, we have just about 40 companies expected to reports quarterly results. Notable reports include D, ENB, FTS, MCO, NWL, & WPC.
News & Technicals’
Although there was little increase in fear, the indexes seemed to struggle to hold on to the bullish momentum. Perhaps it was a light recognition that the Jobless claims were higher than expected but, it may have been nothing more than the 3-day weekend and traders heading out early. The White House secures a deal for more than 200 million more Covid vaccine doses as the public finds it difficult to access the shot. The United Kingdom reported that its economy contracted by 9.9% in 2020, the worst performance since the Great Frost of 1709. Yesterday the U.S. reported a deficit expectation of more than 2 Trillion dollars for 2121, not including the 1.9 Trillion stimulus or the college loan forgiveness moving through Congress. That said, Speaker Pelosi intends to include the 15 dollars per hour Federal minimum wage mandate in the stimulus package.
We have a light day on the earnings calendar with only a Consumer Sentiment report for traders to react to at 10 AM Eastern. With a 3-day weekend ahead, price action could become relatively light and choppy as traders get away early to enjoy the extra time off. Recently, something of a rare event in the current market is seeing the U.S. futures pointing to a flat to slightly lower open this morning. Perhaps a little profit-taking is possible heading into the weekend? Plan your risk carefully.
Markets basically ground sideways on Thursday. The indecisive day left us with black-bodied Doji-type candles. However, even this indecisive trading left all 3 major indices at all-time high closes after a small morning gap higher. On the day, SPY gained 0.16%, DIA gained 0.06%, and QQQ gained 0.55%. The VXX lost a little over 2% to 16.28 and T2122 fell, but remains in the overbought territory at 86.76. Meanwhile, the 10-year bond yield rose to 1.165% and Oil (WTI) fell over a percent to $58.00/barrel.
After the close, DIS crushed on earnings ($0.32 vs. loss was expected) on a major revenue beat due to streaming. MWK did the same. However, both DVA and EXPE missed on both the top and bottom lines.
Bitcoin surged to a new record high Thursday as both MA and BNY joined the move toward acceptance of cryptocurrency. MA had previously partnered with cryptocard providers, but the new announcement was that they will be supporting so-called “stablecoins” which are cryptocurrencies that peg their value to some other asset (such as the dollar). Meanwhile, BNY said it would begin holding, transferring and issuing bitcoin on behalf of institutional customers. Markets saw both announcements as more evidence of the legitimization of bitcoin.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 28,002,240 confirmed cases and 486,922 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 105,798 new cases per day. Still, deaths remain stubbornly high at 2,818 per day. President Biden said Thursday that deals have been inked to provide an additional 200 million doses of the PFE and MRNA vaccines (raising the total order to 600 million doses). More importantly, he said the country was on track to have given 300 million vaccinations by the end of July. In that vein, RAD will begin administering vaccinations today.
Globally, the numbers rose to 108,380,746 confirmed cases and the confirmed deaths are now at 2,380,746 deaths. In good news, the world’s average of new cases is down again to 413,916 per day, but mortality remains high at 11,873 new deaths per day. In France, the Health Minister said that between 20% and 25% of all current cases in that country are of the UK variant. In Germany, they have imposed border checks and outright border closings to prevent mutations from arriving from the Czech Republic, Slovakia, and Tyrol. The UK said its economy contracted 9.9% in 2020 due to the virus and Brexit. However, there was slight hope with the Q4 seeing 1% GDP growth.
Overnight, Asian markets were mostly red, but many markets (and economies) are closed now for the Lunar New Year celebration. India (-1.34%) and Australia (-0.63%) led the way lower. In Europe, markets are mixed so far today. The FTSE (+0.12%) and CAC (+0.06%) are flat, but the DAX (-0.51%) is down with the rest of the continent in a similar situation. Amsterdam (+0.95%) and Denmark (+0.92%) lead gainers while Portugal (-2.46%) and Russia (-1.01%) lead the losses as of midday. As of 7:30 am, US Futures are pointing toward a red open. All 3 major indices are implying a small gap lower of about 0.15% at the opening bell.
The major economic news for Friday is limited to Michigan Consumer Sentiment (10 am) and a Feb. speaker (Williams at 10 am). Major earnings reports on the day include AXL, D, FTS, HUN, LECO, MCO, and NWL before the open. There are no reports after the close.
The Impeachment Trial continues to grab headlines, but with the GOP having decided before the trial that there would be no conviction, it should wind down and possibly end today. Even earnings are limited today. So, the driver of the market today may be trader positioning in front of the 3-day weekend.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. So, keep locking in your profits when you have them. Stick with your plan, maintain discipline and work your process. Remember it’s Friday and we have a 3-day weekend coming. So, pay yourself and get your portfolio set for the long weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: ASML, AMAT, MRVL, BYND, SOHU, CX, SPCE. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
A nasty intraday whipsaw likely quickened the pulse of traders and investors yesterday, but by the end of the day, the buying frenzy reengaged to squeak out a new Dow record high. With a busy day of earnings, a Jobless report before the bell amidst a backdrop of Congressional drama, we should plan for price volatility to continue. Stay with the trend but be willing to take profits quickly as the indexes stretch out in exuberance for the next round of stimulus.
Overnight Asian markets closed in the green with modest gains heading into the Chinese new year shutdown. Across the pond, markets trade cautiously bullish this morning, sporting modest gains. U.S. Futures point to a bullish open but have moderated slightly from the early morning highs. Plan your risk carefully as we head toward a 3-day weekend.
Economic Calendar
Earnings Calendar
Today we have our busiest day of earnings data for traders to digest this week, with just over 120 companies stepping up to report. Notable reports include TWOU, AEM, AB, MT, ARES, AZN, ACB, BJRI, BWA, BAM, CC, NET, DDOG, DBA, DLR, DUK, EXPE, FRT, FLO, GRNC, GDDY, HUBS, HII, ILMN, K, KIM, KHC, MAC, TAP, NNN, PEP, POOL, QSR, SSTK, TU, THS, TSN, VRSN, DIS, AUT, & YETI.
News and Technicals’
Once again, the bulls won the day after a nasty intraday whipsaw leaving uncertain candle patterns behind on the index charts, such as the hanging man pattern on the DIA. However, undaunted the premarket futures point possible record highs as the indexes stretch out with the hope of more stimulus on the way. Treasury yields fell yesterday after Jerome Powell said the U.S. is a long way from where it needs to be in terms of employment as he painted a gloomy picture of the economy. That said, the overall market seems to very little concerned about the jobs market or the overall economy as long as the government continues to print debt. It may be great for the short-term as exuberance pushes us higher, and traders need to stay with the trend capitalizing on the buying frenzy. Still, traders need to remain on guard for the danger this is likely to create in the long-term.
Trends remain bulls, and index prices are solidly above price support levels. Still, the wild whipsaw experienced yesterday likely quickened traders’ pulse, raising questions about the level of danger that exists. Today we face more D.C. drama with a boatload of earnings data and Jobless numbers to keep the tensions high and the prices volatile. The T2122 indicator continues to warn of a short-term overbought condition, so stay focused and willing to take profits quickly should the bears decide to wake up.
Markets gapped up at the open Wednesday, but sold off sharply about 10am and then spent the rest of the day roller-coastering in a tight range the rest of the day. As a result, all 3 major indices printed black-body candles. The QQQ was a sort of Dark Cloud Cover and while the DIA closed at another all-time high close, it printed a Hanging Man candle. On the day, SPY was flat at -0.04%, QQQ was down 0.23%, and DIA gained 0.18%. The VXX gained 1.65% to 16.67 and T2122 also gained further into the overbought territory at 95.83. Bonds fell significantly to 1.124% and Oil (WTI) was flat at $58.35/barrel.
Fed Chair Powell said the US employment situation was bleak, saying the headline jobs number was dramatically understated. He went on to mention the largest drop in workforce participation since 1948. So, he reassured markets that the Fed will remain “patiently accommodative” (because of lessons the Fed learned the hard way in the past) and requested a “society-wide push for full employment (Congress to get Fiscal Stimulus passed again). Despite this calming continuity of message, markets did not have a strong reaction. However, the comments did cause a slump in Treasury yields where an expectation of inflation was muted.
On the earnings front this morning, PEP beat on earnings with a surge in revenue in Q4. As we might expect, AZN posted their highest Q4 sales in many years and beat on earnings as well. TSN beat on earnings, but came in over half a billion light on sales for the quarter. KHC beat on both lines.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,897,214 confirmed cases and 483,200 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 105,798 new cases per day. Still, deaths remain stubbornly high at 2,818 per day. Los Angeles has had to temporarily close all vaccination locations due to a lack of vaccine. This comes as more states are relaxing restrictions, despite the CDC and other health experts warning against relaxing too early.
Globally, the numbers rose to 107,937,567 confirmed cases and the confirmed deaths are now at 2,367,122 deaths. In good news, the world’s average of new cases is down again to 423,410 per day, but mortality remains high at 12,091 new deaths per day. As expected, Germany extended their lockdown to March 7. In the UK, the Gov’t. Science Advisory Group warned that a new “Bristol” variant may well infect people who have have the virus before or been vaccinated. Fortunately, this new variant is not the UK variant that is sweeping the globe, at least yet. Mexico granted emergency use approval for 2 Chinese vaccines. The Eurozone lowered growth forecasts by four-tenths of a percent based on continued drag from COVID restrictions. The still expect positive 3.8% growth in GDP in the next year.
Overnight, Asian markets were mostly green again, but many markets (and economies) are closed now for the Lunar New Year celebration. In Europe, markets are mostly green so far today. The FTSE (+0.05%) and CAC (+0.00%) are flat, but the DAX (+0.49%) is up and is more typical of the rest of the continent. As of 7:30 am, US Futures are pointing toward a flat to modestly higher open. The DIA is implying a +0.24% open, the SPY implying a +0.29% open, and the QQQ implying a +0.41% open at this point.
The major economic news for Thursday is limited to Initial Jobless Claims (8:30 am), Fed Monetary Policy Report (11 am), and US Federal Budget (2 pm). Major earnings reports on the day include AB, MT, AZN, BWA, CIGI, UFS, DUK, ENS, FAF, FMCC, GNRC, HII, NSIT, K, KHC, LH, TAP, NUS, PTAK, PBF, PEP, POOL, QSR, R, SON, TPX, THS, TSN, VNT, WSO, and ZBRA. Then after the close CC, DVA, DLR, EXPE, FLO, GDDY, ILMN, MHK, TEX, DIS all report.
As the Impeachment Trial continues to grab headlines and earnings leads the economic news. However, New Jobless Claims may have an impact this morning. Again, markets look a little tired, but the wall of worry is something the bulls love to climb. So, don’t bet on a pullback until you see it happening.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. So, keep locking in your profits when you have them. Stick with your plan, maintain discipline and work your process. Also, remember we have a 3-day weekend coming. So, we may see some profit-taking the next couple days.
Ed
Swing Trade Ideas for your consideration and watchlist: IAG, WYNN, XLE, VLO, AMD, PSX, TSLA, BBBY. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
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
