With the bulls taking a little hiatus yesterday, we technically broke the six-day rally. Still, with the bears seemingly back in hibernation, the indexes merely drifted sideways the majority of the day. Both Congressional bodies busy expect some political news volatility as they move forward in the Trump trial and the 1.9 trillion dollar stimulus bill passage. Facing another big day of earnings data and the CPI numbers before the bell futures markets point to another bullish open. As we continue to extend the indexes, remember to take some profits.
Asian markets produced another bullish close overnight with modest gain across the board. However, European markets trade cautiously this morning with flat and mixed results. U.S. futures with the aroma of freshly printed stimulus money just about the corner, the bulls remain large and in charge. Still, don’t rule out the possibility of some wild price volatility as we digest all the earnings and economic news.
Economic Calendar
Earnings Calendar
On the hump day earnings calendar, we have just short of 100 companies reporting quarterly results. Notable reports include GM, IRBT, ELY, NLY, ARCC, BHF, BG, CDW, CINF, CME, KO, CXW, EFX, EQIX, EQR, EXEL, HP, IFF, IPG, IQV, KGC, MGM, ORLY, PAYC, PAG, SAVE, STAG, TEVA, TM, UBER, UAA, WU, WH, XPO, ZG, & ZMGA.
News & Technicals’
We broke a six-day rally yesterday with the bulls needing a little hiatus and, the bears showed no teeth as the index drifted mostly sideways. That said, stock pickers enjoyed nice rallies in more than enough stocks to make for a great trading day. With Senate occupied by the Trump trail and the House moving forward with the 1.9 Trillion dollar stimulus plan, it may be wise to keep an eye on the political news as it could create some price volatility. As President Biden pushes for herd immunity, anti-vaccine protesters could derail or delay efforts to combat the pandemic. The J&J CEO is now suggesting that people may need annual Covid vaccine short for several years. If true, we have a long way to go before returning to normal in light of virus new variants. Ugg!
Technically speaking, index trends remain bullish, albeit a little stretched in the short-term, but with another round of stimulus checks around the corner, it could stay that way. I know there is a lot of talk in the market about the possibility of a significant correction that could begin at any time. Though that may be correct, as traders, the best we can do is stay with and benefit from the wild enthusiasm as long as it lasts. However, we should avoid overtrading, chasing already extended stocks, and avoid the greed that often gets in the way of making profits. Remember, consistently profitable traders must get comfortable with taking profits consistently.
Markets gapped down and had a tiny follow-through the first few minutes of the day. However, bulls were having none of it and after a tiny rally markets ground sideways to close dead flat. This broke the string of 6 straight higher closes, but only barely and the DIA did eke out a 3-cent gain on the day (whee!). Despite this flat close, the bulls did show some weakness, with higher wicks (QQQ) and Spinning Top candles (SPY and DIA). On the day, SPY fell 0.07%, QQQ fell 0.02%, and DIA rose 0.01%.
However, small-caps diverged as the IWM closed up 0.40% at another all-time high close. The VXX was flat at 16.40 and T2122 fell slightly by remains deep in the overbought territory at 94.65. The dollar fell to a two-week low, which helped boost commodities Tuesday. It didn’t hurt bitcoin either, which traded near $50,000 before backing off to $47,000 at day end. 10-year bond yields fell slightly to 1.16% and Oil (WTI) rose again to $58.30/barrel.
AMZN workers at a warehouse in Alabama are voting (by mail) on whether to form a union. Tensions remain high as the company is staunchly against the move, sending texts, mail, and verbal messages warning workers against the idea. The 6,000 workers have nearly 2 months to cast their votes. Elsewhere, mortgage demand fell again as interest rates rose to a 3-month high. Refinancing fell 4% for the week and new home loan applications were down 5% on the week.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,799,946 confirmed cases and 479,772 deaths. However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 108,254 new cases per day. Still, deaths remain stubbornly high at 2,905 per day. JNJ’s CEO told CNBC that he thinks people may need an annual Covid-19 booster shot similar to how annual flu shots are recommended…at least for the next few years. In the meantime, the LLY antibody combination treatment received emergency use authorization from the FDA Tuesday night.
Globally, the numbers rose to 107,490,485 confirmed cases and the confirmed deaths are now at 2,353,256 deaths. In good news, the world’s average of new cases is down again to 430,323 per day, but mortality remains high at 12,139 new deaths per day. France has now extended their state of emergency until June. Germany is also set to extend their own lockdown amid fear over the UK and South African variants. In the UK, Transport Minister Shapps said it is far from clear whether UK tourists will be able to travel this summer. Yet in good news, the WHO says that global new case numbers fell 17% last week and a back below 500,000 per day for the first time in many months.
Overnight, Asian markets were mostly green. Hong Kong (+1.91%), Shenzhen (+1.75%), and Shanghai (+1.43%) led the bullish charge. Singapore (-0.32%) was the only appreciable loser on the day. In Europe, markets are mixed, but mostly green so far today on very modest moves. The FTSE (+0.27%), CAC (+0.01%), and DAX (-0.01%) are fairly typical of the modest trading. As of 7:30 am, US Futures are pointing toward a flat to modestly higher open. The DIA is implying a +0.29% open, the SPY implying a +0.33% open, and the QQQ implying a +0.34% open at this point.
The major economic news for Wednesday includes Jan Core CPI (8:30 am), Crude Oil Inventories (10:30 am), the Federal Budget (12:30 pm), Jan. Federal Budget Balance (2 pm) and a Fed speaker (Chair Powell at 1 pm). Major earnings reports on the day include BG, CDW, CME, KO, DBD, EEFT, GM, IPG, IQV, PAG, TMHC, TEVA, TM, and UAA before the open. Then after the close, ATUS, ASGN, BHF, CERN, CINF, DCP, EFX, EQIX, IFF, LUMN, MGM, MOH, ORLY, SSNC, TRMB, UBER, WU, XPO, ZG, Z, and ZNGA report.
As the Impeachment Trial continues to grab headlines, earnings and a speech by Fed Chair Powell are likely the strongest market drivers on the day. So far, KO beat on earnings and fell short on sales, UAA reported an unexpected profit, and PAG reported a blowout quarter this morning. However, GM warned that the current global chip shortage could reduce its 2021 earnings by $2 billion. It appears bonds and the dollar are waiting to hear from Chair Powell before they take a direction today.
The market looks toppy here. However, nobody ever built a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline. Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: ORCL, SOLO, BABA, BA, MOMO, ZM, CRBP. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 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
After a blistering six-day winning streak that lifted the Dow more than 1500 points, futures markets suggest a modest rest at the open today. Normally we would expect a pullback or, at a minimum, some consolidation after such a robust move. However, with the market hopeful of another 1.9 trillion-dollar deficit spend, we can’t rule out the possibility that indexes could continue to inflate. Today begins the Trump impeachment trial, and with a big day of earnings and the Job opening report, we have plenty to inspire substantial price action. Plan your risk carefully.
Overnight Asian markets closed green across the board with modest gains. European markets trade with modest declines this morning. U.S. Futures suggest a modestly lower open as the bulls take a little breather after the volatile stampede higher that set record highs in four indexes.
Economic Calendar
Earnings Calendar
On Tuesday’s earnings calendar, we have 90 companies stepping up to report. Notable reports include TWTR, CGC, AKAM, CNC, CSCO, CEIX, COTY, DD, ENOH, FISV, FOXA, IT, GLUU, GT, HAIN, HBI, HMC, INCY, J, LYFT, MAT, NRZ, PAA, REYN, SPGI, THC, TRVG, WELL, & YELP.
News & Technicals’
It was a big day for the bulls yesterday, pushing all four indexes to new record highs. After a six-day winning streak that saw the Dow rally more than 1500 points has the T2122 4-week new high/new low ratio suggesting a short-term overbought condition. However, with the Democrats intending to pass the 1.9 trillion stimulus package as soon as possible, the market could undoubtedly inflate higher. According to reports, this will not be a bipartisan effort as the President had suggested. They also plan to press ahead on a $15 an hour minimum wage despite deficit concerns, have unveiled a one-year plan to send up to $3,600 per child to all households, and proposed a plan to forgive up to $50,000 in student debt. Today also begins the impeachment trial of former President Trump, so we have a lot of potential political news to move the market this week.
As I write this report, the U.S. futures point to a modest pullback at the open after posting a robust six-day rally as the fear of the Reddit retail frenzy faded. Index trends are certainly bullish but don’t rule out the possibility of a little rest as we wait for the next stimulus deal. With so many stocks in an extended condition, it’s a little hard to be a buyer because of the additional risk to a logical stop-loss. Remember to take some profits and avoid overtrading. Today we have the Job openings report and a big round of earnings to us on our toes. Plan your risk carefully.
Markets gapped higher for the sixth day in a row and after a little volatility, the bulls took over to close us near the high in all 3 major indices. The large-dap indices printed large-body, white bullish candles and the QQ printed a white Hanging Man type. On the day, the SPY gained 0.72%, the DIA gained 0.75%, and the QQQ gained 0.67%. As a result, all 3 major indices closed at yet another all-time high close, which also marked the strongest run since August. The VXX lost about a percent to 16.33 and T2122 climbed even further into the overbought territory at 97.34. 10-year bond yields rose again to 1.176% and Oil (WTI) jumped 2.2% to $58.10/barrel.
In an interesting twist, TSLA disclosed in a filing that it has purchased $1.5 billion in bitcoin, in order to provide it with the liquidity to begin accepting bitcoin as a payment method. TSLA CEO Elon Musk also added the hashtag #bitcoin to his TWTR bio. These moves helped drive bitcoin to an all-time high of $44,000 on Monday.
Airline stocks also got a boost as documents revealed the Democratic relief plans should include $14 billion in aid for the industry. This comes a day after CNN reported that despite demanding relief, the airline industry had over $31.5 billion of cash on their balance sheets to end Q4. Another piece of the Democratic package is a $3,000/child ($3,600/child under 6) child credit to be paid to families by the IRS in monthly installments. It’s worth noting that votes on the various pieces of the Biden package begin in Committees on Tuesday.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,700,629 confirmed cases and 476,405 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 110,694 new cases per day. Still, deaths remain stubbornly high at 2,954 per day. New Sec. of Transportation Buttigieg says that the US is considering testing requirements for domestic air travel. CDC Director Walensky said that would be helpful, but stopped short of calling for such a plan. At the opposite end of the political spectrum Iowa’s Governor lifted the state’s mask mandate without even consulting her own health officials. Finally, as of now, just under 10% of the US populations has received at least one vaccine shot.
Globally, the numbers rose to 107,079,812 confirmed cases and the confirmed deaths are now at 2,338,319 deaths. In good news, the world’s average of new cases is down again to 438,996 per day, but mortality remains high at 12,322 new deaths per day. WHO researchers that have now toured and analyzed Chinese sites say COVID-19 is very likely to have come to humans through an intermediary species, but could not be sure what kind of animal. They also reported that the first cases at the Wuhan Seafood market very likely took place in early December, but were first identified as a non-flu virus at the end of December. This coincides with what was believed before and with the Chinese narrative.
Overnight, Asian markets were mixed but mostly green. Shenzhen (+2.43%) and Shanghai (+2.01%) were positive outliers, buoyed by both economic data and the release of WHO findings not being shocking. Australia (-0.86%) was an outlier to the downside. In Europe, markets are mostly red so far today on tepid trading. The FTSE (+0.04%) and CAC (+0.03%) are just on the green side of flat while the DAX (-0.40%) is modestly lower and more indicative of the rest of the continent. As of 7:30 am, US Futures are pointing toward a flat to modestly lower open. The DIA is implying a -0.17% open, the SPY implying a -0.12% open, and the QQQ implying a -0.07% open at this point.
The major economic news for Tuesday is limited to Dec. JOLTS (10 am) and a Fed speaker (Bullard at noon). Major earnings reports on the day include ARMK, AVYA, CARR, CNC, COTY, DD, FIS, FSV, FOXA, IT, GT, HBI, IIVI, INCY, JLL, LCII, MLM, MAS, SPGI, TDG, VSH, WCC, and WLTW all before the open. Then after the close, AMRK, AKAM, AIZ, CSCO, CCK, FISV, FMC, GPRE, MAT, NCR, NGL, OI, PAA, PAGP, REYN, THC, TWTR, and WELL report.
After the recent strong bullish run, markets are extended and need some rest. So far this morning, it looks like they may get it with a flat to mildly lower open. With very little economic or stimulus news expected and focus shifted to the Trump Impeachment Trial, it will be up to earnings to push. However, a lack of reason has never stopped the bulls before. So, don’t just expect a pullback. Wait to see it actually happening. The trend still favors those bulls.
Remember, nobody ever sustained a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline. Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: BLFS, CMCSA, ZM, GE, MU, INTC, VIAC. 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
Last week saw a tremendous bullish recovery, and the bears seemed to go back into hibernation. Hopes remain high for another 1.9 Trillion in stimulus, but I’m beginning to wonder if we’ve already priced it into the market. That said, stay with the trend but stay on your toes in case a profit-taking wave begins. Avoid overtrading and chasing already extended stocks, and remember we can’t be consistently profitable traders unless we consistently take some profits.
Asian markets were green across the board overnight, led by the NIKKEI up more than 2%. European markets are also pushing higher this morning with modest gains across the board. U.S. Futures markets point to a bullish open ahead of earnings, a busy week of political news, and a light economic calendar.
Economic Calendar
Earnings Calendar
On the Monday earnings calendar, we have 64 companies scheduled to report quarterly results. Notable reports include ACM, CHGG, ENR, RE, JKHY, KKR, LEG, L, NUAN, SPG, & TTWO.
News & Technicals’
We had another day of record highs on Friday, and with a quick look at the futures market, the bulls are ready to continue extending the indexes. Congress has a busy week attempting to move forward on the 1.9 Trillion dollar stimulus plan while running a Trump impeachment trial in the Senate. Stay on your toes over the next couple of weeks because the political news could create some price volatility. The rumor that Apple was close to a deal with Hyundai, Kia, to develop the Apple car is apparently not valid after the automaker announced they are not in talks. Hyundai, Kia shares are lower this morning as a result. Janet Yellen says the U.S. could return to full employment by next year if Congress passes the proposed trillion stimulus plan. Of course, there was no mention of how the U.S. plans to deal with the massive debt.
On the technical front, the bulls have reengaged the bullish trend, and it appears the bears have gone back into hibernation. I suspect the high hopes of additional stimulus will continue to supply market levity, but I am concerned that it may soon be fully priced into the market. The T2122 indicator continues to flash a short-term overbought condition, so traders will have to stay focused on the possibility that a profit-taking wave could begin anytime. However, stay with the bullish trend, but be careful not to overtrade or chase already extended stocks. As of February 5th, the SP-500 P/E Ratio was 79% above its historical average. How much longer this bull run can extend is anyone’s guess but be aware we could have some irrational exuberance at work here.
Markets gapped up about half a percent Friday to new all-time highs, but then put in indecisive action, undulating sideways the rest of the day. This left the QQQ with a gap-up Doji and both large-cap indices with gap-up, black-body spinning tops. As a result, the SPY and QQQ closed at all-time high closes and the DIA just missed. On the day, SPY gained 0.39%, QQQ gained 0.34%, and DIA gained 0.28%. This made for a big week and the longest winning streak since late August. The VXX was flat at 16.47 and T2122 (4-week now high/low ratio) rose further into the overbought territory at 93.33. 10-year bond yields rose significantly to 1.169% and Oil (WTI) rose about half a dollar to $56.85/barrel.
On the relief plan front, over the weekend President Biden said he believed the increase to a $15/hour minimum wage would not survive the reconciliation process. In related news, Senator Sanders said he opposes the tightening of eligibility for a $1,400 stimulus check (opposes tightening the income cap). Sunday Treasury Sec. Yellen told CNN that passage of the $1.9 trillion relief package could return the US to full employment in 2022. This came in response to former Treasury Sec. Summers raised questions over whether additional stimulus in that amount might cause a stock market bubble and bring inflation faster.
In regulatory filings Monday, Hyundai and Kia said they are not in talks with AAPL to make the autonomous “Apple Car.” The companies said they have gotten requests from multiple companies to partner on autonomous, electric vehicles, but no partnerships have been decided this early. Those South Korean stocks fell sharply on the news, but the announcement may have a follow-through effect even on AAPL. This may also be fallout from AAPL not being pleased that their secrecy was breached by earlier reports that AAPL was working with those two companies on the project.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,611,403 confirmed cases and 474,933 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 116,256 new cases per day. Still, deaths remain stubbornly high at 3,020 per day. A study published Sunday found that the number of UK variant cases is doubling in the US every 10 days. This coincides with the CDC model predicting it will be the most prevalent Covid-19 mutation in the US by March. Later in the day, President Biden answered CBS a reporter by saying that it will be very difficult to reach herd immunity by the end of summer.
Globally, the numbers rose to 106,751,887 confirmed cases and the confirmed deaths are now at 2,328,753 deaths. In good news, the world’s average of new cases is down again to 446,334 per day, but mortality remains high at 12,394 new deaths per day. Early data suggests the AZN vaccine offers only minimal protection against the South African variant (after 2 doses), even among young healthy adults, according to a study co-authored by Oxford University. The good news is that Oxford also said a new vaccine to tackle the South African variant should be in the autumn. In the meantime, South Africa has suspended AZN vaccinations.
Overnight, Asian markets were mostly green. The only significant loss was in South Korea (-0.94%). Meanwhile, Japan (+2.12%), India (+1.28%), Shenzhen (+1.21%), and Shanghai (+1.03%) led the gainers. In Europe, we see a similar story taking shape as only Denmark is in the red at this point. The FTSE (+1.01%), CAC (+0.71%), and DAX (0.26%) are typical of the bullish movement on the continent so far today. As of 7:30 am, US Futures are pointing toward a modestly green open. The DIA is implying a +0.40% open, the SPY implying a +0.32% open, and the QQQ implying a +0.28% open at this point.
There is no major economic news scheduled for Monday. Major earnings reports on the day include CNS, ENR, GTES, GPN, and HAS before the open. Then after the close, ACM, AMKR, BECN, BAP, KKR, LEG, OMF, RGA, SPG, TTWO, and TFII report.
With Stimulus now a done deal, the focus turns to whether any horse-trading can bring any Republicans onboard. However, that story really only has the day to play out as eyes will turn to the Impeachment Trial of ex-President Trump on Tuesday. Just more political theatre as GOP Senators have already voiced that they will not convict him. Earnings will be the other driver this week, but today is a relatively light day. At any rate, coming off the best week since November and with Futures pointing up this morning, the bulls have the upper hand.
Remember, nobody ever sustained a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline. Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: ABT, STX, CLF, GILD, NKE, ORCL, BOOT, KO, OSTK, SNAP, ZM, TGTX, MO, BCLI, SCHW, CAT. 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
New records across the board in the index ETF’s as the bull regain control of the trend. In an all-night session that included a blizzard of amendments, the Senate passed a budget resolution necessary to move forward with a $1.9 Trillion stimulus package. That has futures popping to new highs this morning as we wait for the Employment Situation numbers before the bell. The bulls are back in control of the trends, having cleared resistance levels, but after such a strong rally, it may be wise to take some profits heading into the weekend.
Asian markets closed mixed but mostly higher overnight, and European markets trade with modest gains this morning. As global stocks near record highs, the U.S. futures point to a bullish open ahead of the monthly Employment Situation report. How the market opens will depend on that report’s results, so traders should plan for a dose of price volatility heading into the open. Have a wonderful weekend, everyone!
Economic Calendar
Earnings Calendar
We get a little break today with about 40 companies reporting quarterly results. Notable reports include CAH, EL, ITW, JOUT, LIN, REGN, SNY, & SPB.
News & Technicals’
The bulls kept up the pressure yesterday, lifting the SPY, QQQ, and IWM to new record highs, with the DIA squeaking out a new high in a last-minute buying surge. After an all-night session, the Senate approved a budget resolution as with a slew of resolutions necessary to clear the path as Democrats rush to pass the hoped-for 1.9 Trillion Covid relief bill. Johnson & Johnson is attempting to move forward with its Covid vaccine asking the FED for emergency authorization. After Robinhood removed trading restrictions on GameStop and all other stocks, GME shares climbed 15% in the premarket. Perhaps the short-selling frenzy still has legs after all.
Yesterday’s rally cleared the index charts’ price resistance levels, and the VIX again saw a calming as the bulls regained control of the trend. Today before the bell, we will get the latest reading on the Employment Situation. Still, the futures point to a bullish open as Senate moves forward with a procedural vote as they hurry to pass the next stimulus bill. It would seem to hope more deficit spending means jobs data no longer matters to this market. That said, it would be wise to avoid overtrading and take some profits heading into the weekend with the T2122 indicator hinting at a short-term overbought condition.
Markets gapped modestly higher at the open Thursday. Then the bulls stepped in for a morning rally. Most of the day saw a grind sideways and then bulls made a push at the end of the day. As a result, the DIA printed a White Marubozu (Shaved Head) candle and the other two major indices printed large white candles themselves. All 3 closed at the highs of the day. So, on the day SPY gained 1.14% (closing at an all-time high), DIA gained 1.11%, and QQQ gained 1.18% (also closing at a new all-time high close). The VXX lost over 4% to 16.50 and T2122 rose deeper into overbought territory to 89.58. 10-year bond yields remains essentially flat at 1.136% and Oil (WTI) rose again to $56.23/barrel (over a 12mo. high).
After the close, Senate Republicans are announcing dozens (hundreds?) of amendments to the budget bill (relief package). These seem to be being offered as amendments as a way to force the process to vote on the amendments in hopes that it will fracture Democratic solidarity and/or force an item-by-item vote that can be used in later campaigning. However, the Senate plowed ahead along party lines to pass the budget bill. So, now reconciliation between the House and Senate versions begins and the package is still on track for signing before the current relief bill expires March 15.
After a meeting with Treasury Sec. Yellen on Thursday, the SEC and CFTC agreed to a timely study of the situation, including trading practices and the actions by brokers that temporarily prevented buying and forced selling of some tickers. However, they also made a boilerplate statement that “the infrastructure of the stock and commodities markets remains resilient, even during periods of extreme volatility.” In related news, it was revealed that the CEO of Robinhood is not licensed by FINRA. In other related news, the high-frequency trading firm Citadel sued the SEC to get the D-Limit method used by the IEX exchange (intended to discourage predatory front-running) prohibited. (In other words, they don’t want anything to prevent them front-running orders.) This is related because Citadel accounts for 40% of Robinhood’s revenue.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,273,890 confirmed cases and 466,988 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 129,894 new cases per day. Still, deaths remain stubbornly high at 3,100 per day. JNJ asked the FDA for emergency approval for their COVID-19 vaccine (66% effective, but requires only one shot). Then Thursday night, one of the Biden COVID advisors told CNBC that the 3 main mutations (UK, South Africa, and Brazil) may evade the immune response created after vaccinations with at least the two existing US vaccines (PFE and MRNA). White House Chief of Staff Klain said they hope to revive a Trump Administration idea that never got off the ground. That being the mailing of masks to all Americans. The original idea was scrapped because of the previous Admin’s fear it might cause “concern or panic.”
Globally, the numbers rose to 105,506,871 confirmed cases and the confirmed deaths are now at 2,296,567 deaths. In good news, the world’s average of new cases is down again to 485,014 per day, but mortality remains high at 12,969 new deaths per day. Countries are beginning to work on “Vaccine Passports” in many countries. Sweden is the latest of the EU nations who announced they are working on such a plan with hope of implementing it in the summer. The UK has announced it will implement mandatory hotel quarantine for incoming travelers from 33 “red list” countries as of mid-February. (The US is not on the list as of now.)
Overnight, Asian markets were mixed, but mostly green. The only loses were in Shanghai (-0.16%), Shenzhen (-0.88%), and Malaysia (-0.40%). The rest of the region was strongly in the green with Japan (+1.51%), Australia (+1.11%), and South Korea (+1.07%) leading the way. In Europe, a similar story is taking shape as the bulls are in charge in all but 3 exchanges. The FTSE (+0.09%) is flat, DAX (+0.29%) up modestly, and CAC (+1.11%) leading the charge. As of 7:30 am, US Futures are implying a moderate gap higher at the open. DIA is implying +0.47%, SPY implying +0.49%, and QQQ implying +0.37%.
The major economic news for Friday includes Jan. Avg. Hourly Earnings, Jan Nonfarm Payrolls, Jan Participation Rate, Dec. Trade Balance, and Jan Unemployment Rate (all at 8:30 am). Major earnings reports on the day include ADNT, AON, BERY, CAH, EL, HRC, ITW, LAZ, LIN, REGN, SNY, SPB, TT, and ZBH all before the open. There are no earnings reports after the close.
With Stimulus now a done deal, the focus turns back to earnings, and the recent so-called social-media volatility. It is worht noting that CNBC is reporting that the recent short-squeezes may not have been as much due to retail traders as had been thought. No exact numbers were given, but insitutional volume in those names apears to be significant. That said, we know it was likely the retail player who bore the brunt of being left holding the bag during this week’s 80% selloff in GME. At any rate, earnings have been better than expected so far this cycle (on average) and with vaccinations now gathering steam, there is a hope for returning to normal again by the summer. That optimism has spilled into markets as the bulls have the momentum again.
Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Remember, nobody ever sustained a career by picking reversals…so don’t do it. Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline. Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.
Ed
Swing Trade Ideas for your consideration and watchlist: No trade ideas for Friday. 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.
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The bears made some halfhearted attempts in yesterday’s early session, but the bulls won the day with modest gains still seemingly challenged by overhead price resistance. With a big day of earnings data to digest and jobless numbers on the way, U.S. futures point to mixed and flat open at the time of writing this report. Traders will need to remain nimble as we head into the Friday Employment Situation number, although government deficit spending appears more critical to the market nowadays.
Asian markets closed in the red across the board even as Hyundai shares rose with an Apple Car deal drawing closer. European markets trade mixed and cautiously as the Bank of England stands frim on interest rates. As morning earing roll out, the U.S futures trade mixed and mostly flat but prepare for price volatility as traders and investors digest all the data.
Economic Calendar
Earnings Calendar
Today is our busiest day on the earnings calendar this week, with nearly 120 companies fessing up to results. Notable reports include PTON, ABB, ATVI, APD, ALL, ABC, AINV, BLL, BDX, BMY, BEP, CG, CI, CLX, COR, CMI, DECK, DB, F, FTNT, GILD, GPRO, MRK, MCHP, MSGN, NWSA, NOLK, OIH, PENN, PM, PINS, POST, DGX, RL, SKK, SNAP, SNA, SU, TMUS, TPR, TDC, U, XYL, YUM & ZEN.
New & Technicals’
Although we had a modest day of price action, the bulls remain in control while still challenged by overhead price resistance levels. With a big day of earnings and economic news, traders will have to say on their toes, ready for just about anything. Apple and Hyundai-Kia said they are moving toward a deal to begin the development of the Apple Car. American Airlines is once again warning that 13,000 employees could be furloughed next month without additional federal aid. Senator Amy Klobuchar has unveiled a sweeping antitrust reform bill that could draw more risk and scrutiny to large tech firms if enacted. Google and Facebook already face federal and state lawsuits, with enforcers eyeing anticompetitive conduct accusations against Amazon and Apple as well.
The bulls-maintained control yesterday amidst some halfhearted attempts by the bears during the morning session. Overall the indexes are still challenged by overhead price resistance, and with a big day of data coming our way its anyone’s guess which side gains the upper hand, bull or bears. That said, the sharp decline in the VIX-X the last few days is a welcome sight even though it’s still remarkable to see markets poised to make new highs with the VIX over 20 handles. Stay focused and flexible with jobs data in focus for the rest of the week.
