Though considerably overextended in the short-term, the vaccine news and hopes of recovery continued to encourage the bulls as the tech sector bounced off support. Sadly, news of 144,000 new infections and possible business restrictions or lockdowns weigh heavy on this morning market. Facing a big day of data, the gap down in the Dow will challenge the support of Monday’s massive rally. Buckle up for another day of new-driven volatility.
Asian markets closed mixed but mostly lower in a relatively muted day of trading. European markets have a bearish attitude this morning, with the DAX and CAC trading more than 1% lower at the time of this report. As we wait on Jobless Claims, GDP, a Powell speech, and a big round of earnings reports, futures currently point to bearish open. Of course, the news events could quickly improve or worsen the current sentiment. Stay focused.
Economic Calendar
Earnings Calendar
We have our most important day of earnings this week, with more than 150 companies fessing up to quarterly results. Notable reports include DIS, AQN, AMAT, BZH, CSCO, DGLY, DLB, ENR, FTCH, GLOB, DGRX, HIMX, JAMF, MFG, PLTR, PDD, SBH, TK, TDG, U, & WIX.
News & Technicals’
A tech bounce led the market yesterday, with the SPY and IWM struggling to find direction, while the DIA ran into a little profit-taking. As the Presidential election saga drags on, the U.S. experienced another new record in COVID infections topping 144,000. That is the 9th straight day of more than 100k new infections, Ugg. Yew York has imposed a curfew on restaurants, bars, gyms and limited home gatherings to ten. The Biden Covid advisor is suggesting a lockdown of 4 to 6 weeks to control the surging pandemic. It looks like we’re in for a long winter and a tough holiday season. President Trump continues to allege fraudulent election activity, filing multiple lawsuits and appeals even as Biden moves forward with the transition appointing his close friend as Chief of Staff. The Republican state AG says it’s highly unlikely that Trump will win in Arizona, citing no fraud evidence. Georgia will do a hand recount of election ballots, but the Biden lead continues to grow, according to reports.
Though the T2122 indicator continues to warn of an overbought condition, the tenacious bulls hold firm fending off any attempt by the bears. Unfortunately, worry over pandemic numbers, and the threat of more lockdowns have the futures pointing to a gap down open this morning will test the support of Monday’s massive rally. With a big day of earnings and economic reports, price volatility could be high, and news-driven whipsaws and reversals are possible. Stay focused, and flexible.
Markets gapped up Wednesday and generally ground sideways the rest of the day. The DIA ground slightly lower, the QQQ slightly higher, and the SPY almost dead sideways. On the day, DIA was flat (-0.10%), SPY up (+0.76%), and QQQ led the way (+2.24%) on a bounce-back after a couple of days of rotation out of the high-tech names. VXX fell 2% again to 19.03 and T2122 fell slightly to 88.00. 10-year bond yields rose to 0.96% and Oil (WTI) was flat at $41.52/barrel.
The only major economic or business news revolves around the virus, methods to control the pandemic or vaccine trials. If you don’t like that sort of news, this post will not please you.
The virus continues its massive surge. Wednesday saw another record 142,906 new cases and 1,479 deaths. This raised the totals to 10,708,728 confirmed cases and 247,398 deaths. The 7-day average of new cases to 129,475 while the average deaths rose to 1,080/day. In sum, hospitals nationwide are coming under strain as they now are nearing capacity. As an example, El Paso Texas has 20 mobile morgues (refrigerated semi trailers) in place as their system is overwhelmed. In addition, that city has begun looking for suitable brick-and-mortar overflow capacity such as an ice rink.
Wednesday, one of President-elect Biden’s virus advisory group said that a 4-6 week national lockdown could control the pandemic until vaccines are available and the worst of flu season is passed. Obviously, Biden would not have any authority until at least January 20 and even then there would be massive resistance from business interests and groups. For example, polls (depending on whether you believe polls) show that fewer than half of Americans would comply with another lockdown order. However, this advisor’s talking point may still throw a scare into markets now. In positive news, MRNA has reached its own first threshold of cases so that preliminary efficacy data can be released. So in the next day or so, expect another announcement like the PFE announcement last week (an initial view of the effectiveness of the MRNA vaccine.
Overnight, Asian markets were mixed, but mostly red. Japan (+0.68%) and Malasia (+1.32%) led gainers while the losses were widespread, but moderate. In Europe, we see the same picture as markets are mostly red, with a couple minor spots of green. Among the 3 major bourses, the FTSE is down 0.60%, the Dax down 0.96%, and the CAC down 1.12% at this point in their day. As of 7:45 am, US futures are also pointing to small gaps at the open. The DIA is implying a -0.60% loss, the SPY implying a 0.32% loss, and the QQQ implying a +0.18% gain at the open as of now.
The major economic news for Thursday is limited to Oct. Core CPI and Weekly Jobless Claims (both at 8:30 am), Crude Oil Inventories (11 am), Oct. Federal Budget Balance (2 pm), and a Fed Speaker (Williams at 2 pm). Major earnings reports include ENR, IGT, MTOR, PDD, SBH, TCEHY, and TDG before the open. Then after the close AMAT, CSCO, and DIS report.
Volatility is likely to continue. A lack of hard news is likely to be filled with speculation over the pandemic. mitigation measures, and vaccine hopes. Remember to not get caught up chasing moves that you have missed. Fear of missing out (FOMO) is a deadly condition for traders. You don’t NEED to trade every day. There will always be either another stock setup down the road. So keep locking in profits and maintain your discipline. Stick to your trading rules, follow the trend, and respect support and resistance.
Ed
Swing Trade Ideas for your consideration and watchlist: SIRI, PZZA, MRNA, INTC, GILD, CRUS, ACMR, ABT. 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 rotation out of the high-flying tech sector into value and dividend-paying stocks seems to underway as we wait for the courts to weigh in the election. The pandemic numbers once again surged to new record hospitalizations and infection rates, raising concerns about possible negative economic impacts. With the indexes so extended from critical averages, traders have to take a considerable risk when entering new positions. Plan your risk carefully in be careful chasing with the fear of missing out.
Asian markets closed mixed but mostly lower, and concerns over new regulations push tech shares down 10%. European markets are edging higher again today, riding the wave of vaccine-related recovery hope. U.S. future point higher with yet another Dow gap even as pandemic numbers surge.
Economic Calendar
Earnings Calendar
We have just over 50 companies stepping up to report quarterly results on this hump day. Notable reports include APD, ATO, FOSL, LMND, REYN, SB, SPTN, SLGG, TTEK, VRM, & YPF.
News & Technicals’
Another day and more new records set on the pandemic, with national hospitalizations topping more than 61,000 and over 131,000 new infections. However, market futures continue to rise even as new rolls out of new city lockdowns going into place. The Supreme Court asked to weigh in on Obamacare yesterday and, according to reports, appears willing to leave the act in place. A decision from the high court is not scheduled until June of 2021. Although the election has yet to be certified, Joe Biden is calling for an expansion of Obamacare. Alibaba’s Singles Day event shattered records with sales topping $56 billion, but tech shares in China plunged 10% as new regulatory concerns mount. Here in the U.S., the tech sector is also showing some weakness as investors seem to be rotating toward value plays and dividend-paying stocks. Perhaps concerns over potential Covid impacts have traders seeking safety due to the likely difficult winter ahead.
Technically speaking, the DIA, SPY, and IWM remain quite extended from their 50-day averages. The fear of missing out is driving traders to take a considerable risk as they rush to buy stocks so far from key support levels. They may be right to do so, but this is not for the faint of heart. With such a new-driven market, the possibility of a sharp pullback remains high, or we could see a very choppy consolidation while we wait for the key averages to catch up. It’s easy to overtrade in this kind of environment, so make sure you follow your rules and carefully understand each position’s risk. The T2122 indicator remains in a short-term overbought condition, and the VIX above 24 handles as the indexes reach out to new records is extremely abnormal when compared to historical price action.
A historic market gap on a piece of hopeful vaccine news making new record highs in the DIA and SPY as recovery sentiment surged. Unfortunately, after the pop, profit-takers left behind a negative candle pattern raising the possibility of price pulling back to fill the massive gap. Big tech seemed to struggle while small-caps enjoyed a solid performance as traders looked for value and small businesses to begin recovering. With a very news-driven market and massive price fluctuations possible in the next story, plan your risk very carefully.
Asian markets traded mixed but mostly higher overnight, led by Hong Kong that surged more than 1%. European markets trade green across the board this morning in a choppy session as they grapple with the contradictions of shutdowns and hopeful virus news. U.S. futures have recovered from overnight lows; however, they still suggest a mixed open ahead of earnings and a very light economic calendar.
Economic Calendar
Earnings Calendar
We have more than 70 companies reporting 4th quarter results today. Notable reports include AAP, DOX, BRKS, DHI, DDOG, FUBO, LYFT, RXT, RKT,& ROK.
News & Technicals’
As virus numbers continue to rise across the country, there have been several stories about hopeful vaccines providing market confidence. Joe Biden talks about the possibility of a mandatory national mask policy to combat the virus should he be certified as the President-elect. However, President Trump refuses to concede, and the attorney general has started election investigations, which prevents funds from being made available for a transition team. The so-called Obamacare act faces a Supreme Court challenge today, but a decision is not expected until June. The EU launched antitrust charges against Amazon, suggesting they are distorting competition with online retail markets. AMZN shares are suggesting more than 2% lower this morning.
A day after a historic market gap, futures trade mixed but well off of overnight lows. The big pop and drop price action left behind some negative candle patterns, but they held above price support levels by the end of the day. The QQQ had the weakest performance, with many tech giants struggling to find buyers while the small-cap stocks in the IWM gained favor as vaccine hopes drove recovery sentiment. Oil prices surged about 8%, and the financial sector recovered substantially yesterday while stay at home stocks saw strong bearish attacks. The risk remains high in this very news-driven market, so plan your plan carefully because the next big gap or full reversal could be just one story away.
Markets gapped to all-time highs Monday on a combination of liking the Biden election victory and elation over the PFE / BTNX trial results. However, after the record-breaking and massive gap higher, markets faded that gap all day, which left us with big ugly black candles in all 3 major indices. The QQQ even printed a large Bearish Engulfing candle. On the day, SPY closed up 1.26%, DIA up 3.00%, and QQQ down 2.04%. VXX was down over 2% to 20.07 and T2122 remains deeply overbought at 91.39. 10-year bond yield made massive gains to 0.922% and Oil (WTI) gained 7.4% to $39.89/barrel.
Part of the day’s fade may have been related to realizing the PFE vaccine joy came on only preliminary data (94 cases), doesn’t include safety data yet, and the vaccine will not be widely available until Q2/Q3 (according to PFE Director Gottlieb). However, another potential cause could be Senator McConnell saying that with a vaccine now in sight, maybe we don’t need as much stimulus. CNBC also reported that with Senate runoff elections in January, it will be difficult for any deal to be done prior to those two seats being decided.
In miscellaneous business news, the EU has opened a second antitrust investigation of AMZN. Meanwhile, BABA is getting set for its Singles Day holiday Wednesday and expects that the addition of live-streaming events will raise the one-day sales to $125 billion. For reference, retail industry researchers estimate US sales on Black Friday were $7.4 billion and Cyber Monday another $9.4 billion.
The virus continues its massive surge. Monday saw another 125,000+ day for new cases, but only 632 deaths. Those numbers raised the 7-day average of new cases to 117,552 while the average of daily deaths is now 1,001/day. In positive news, last night the FDA gave emergency use authorization to the LLY antibody product which shows promise for having dropped the number of recipients who later contract the virus from 6.3% to 1.6%. LLY has a deal in place to provide 300,000 doses within 2 months of that approval. NVAX also gained approval to begin a phase 3 trial of its own vaccine candidate.
Overnight, Asian markets were mixed, but mostly green. China took the only hits, with Shenzhen (-1.05%), Shanghai (-0.40%), and Taiwan (-0.35%) all down. Hong Kong (+1.10%) paced the gainers among major markets, but smaller markets were up significantly more. In Europe, markets are mixed, but leaning red (mostly the smaller markets). Among the 3 major bourses, FTSE is up 1.32%, CAC up 1.03%, and DAX flat at +0.15% at this point in their day. As of 7:45 am, US market futures are also mixed. The DIA is pointing to a 0.71% gap higher, but the QQQ is pointing to a 1.51% gap down while the SPY is flat implying a -0.15% open.
The only major economic news for Tuesday is Sept. JOLTS (10 am) and a Fed speaker (Brainard at 5 pm). Major earnings reports include ADNT, APD, APG, and GIB before the open. Then after the close, ENS, HI, PTVE, REYN, SMICY, and SPTN report.
Volatility is likely to continue with the futures suggesting further unwind of the high-tech lockdown plays, but hope among the large-caps with a potentially effective vaccine on the horizon. Remember to not get caught up in moves you have missed. Fear of missing out (FOMO) is a deadly condition for traders. There will always be either another stock setup or the zig-zap motion of the market will bring the one you missed back when it consolidates. Keep locking in profits and maintain your discipline. Stick to your rules, follow the trend, and don’t chase the moves you have missed.
Ed
Swing Trade Ideas for your consideration and watchlist: RAD, WKHS, PSX, FOLD, OKE, MOMO. 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
Friday was a rest day for markets after an extremely hard rally all week. All 3 major indices printed indecisive Doji or Spinning Top type candles. With little change from the Thursday close. On the day SPY was flat at down 0.02%, QQQ was flat at up 0.07%, and DIA was the “big mover” at -0.24%. VXX lost almost another 7% to 20.52 and the T2122 4-week New High/Low Ratio fell back to mid-range at 68.11. 10-year bond yields spiked to 0.822% and Oil (WTI) lost another 3.5% to $37.40/barrel. As said, on the week QQQ was up 9.37%, SPY up 7.23%, and DIA up 6.85% in what was the best week for stocks since April.
Over the weekend, the election results became clearer with the majority of the country recognizing a Biden victory. President Trump refuses to accept this outcome and will continue lawsuits in hopes that recounts and the courts will reverse or nullify apparent results. Up to this point, markets seem to like the idea of a split government with the Administration, Senate and House in different party’s hands. However, January runoff elections for two Georgia Senate seats leave a little bit of uncertainty about this apparent split government scenario. Nonetheless, assuming GOP victory in at least one Georgia Senate seat, prospects of a “blue wave” leading to major tax changes now seems off the table. So, the next thing that the market needs to figure out is what these election results will mean for a stimulus package either in a lame duck session or late January.
However, the main market news at this point of the morning was an early morning announcement by PFE and BNTX that their vaccine candidate is more than 90% effective at preventing infection 7 days after a second dose is administered (28 days after initial dose). There is no data available yet on short-term side effects, long-term health risks, or how long the protection will last. Nonetheless, this is a major step, and markets absolutely love what they hear so far Monday.
The virus is raging all across the country. Friday, we had yet another record high of well over 132,000 new cases and even the normally lower weekend numbers remained in the mid-120,000s. In total, the numbers show we have had 10,292,492 confirmed cases and 243,771 deaths. This includes 42 states with at least a 10% increase in avg. daily new case counts since last week (30 reporting a record high), 8 holding steady, and none falling. This record surge has raised the 7-day average of new cases to 111,226 while the average of daily deaths to 979/day.
Globally, the numbers rose to 50,856,631 confirmed cases and the confirmed deaths are now at 1,263,784 deaths. Global record days on Friday and Saturday have led the 7-day average of new cases is 550,046 while the 7-day average virus deaths are 7,759/day. Obviously, this means more restrictions, lockdowns, and economic trouble, especially throughout Europe. Frankly, that should be in the cards again in the US but that does not seem to mesh with the desires of the administration.
Overnight, Asian markets were green across the board on the last-minute news of an effective vaccine from PFE/BTNX. mixed, but mostly green. Shenzhen (+2.25%) and Japan (+2.12%) led the rally, but the strength was wide-spread. In Europe, markets are even stronger as they have had more time to react to the news. At mid-day, the CAC (+6.41%), DAX (+5.31%), and FTSE (+4.48%) are all screaming higher. However, again the rally is widespread, with only small pockets of under-reaction like Denmark (+0.36%) so far today. As of 7:30 am US futures are also pointing to major gaps higher at the open. The DIA is implying a +5.06% gain, the SPY implying a 3.66% gain, and the lockdown technology-heavy QQQ implying only a 0.80% gain at this point.
The only major economic news for Monday are 2 Fed speakers (Harker and 12:20 pm and Mester at 1:30 pm). Major earnings reports include BRKB, HWM, MCD, SPG, and TGNA. Then, after the close IFF, NGL, and OXY report.
The virus, an effective vaccine, hope for more stimulus, and reduced fear of major changes from a split government have combined to make a very positive if volatile, environment for markets. Remember that gaps are gifts and very strong news is almost always tempered by a second thought at least in the short-term. Markets move in the zig-zap motion the vast majority of the time.
It looks like a screaming open today. You will be very tempted to chase, but unless you are already in, strongly consider waiting for some consolidation or pullback. Keep locking in profits and maintain your discipline. Stick to your rules, follow the trend, and don’t chase the moves you have missed.
Ed
Swing Trade Ideas for your consideration and watchlist: STAA, UPWK, CDAY, AAPL, SLV, GLD, SWBI. 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
As we wait on an election decision, the pandemic infection rate surged over 120,000 new cases on Thursday. One has to wonder, with job growth beginning to slow and more than 21 million Americans still requiring unemployment assistance, can this massive rally be sustained? That’s something to ponder as we head into the weekend, and you plan risk forward. With the Dow having gained more than 2200 points since last Friday’s low, a little profit-taking would not be out of the question.
Asian markets closed the week mixed but mostly higher. European markets are trading lower this morning as they continue to monitor the U.S. election uncertainty. U.S futures currently point to lower open, but as earnings results roll in and the Employment Situation number in focus, anything is possible as we slide toward the weekend.
Economic Calendar
Earnings Calendar
On this Friday, we have more than 100 companies stepping up to report. Notable reports include LNG, COTY, CVS, ENS, HSY, HMC, MAR, MYL, TU, TM & VIAC.
News & Technicals’
As counting votes continues to drag, and all the lawyers involved, it feels like we’re waiting on the judge decide who gets custody of us in the divorce. While our focus remains on the election results, the pandemic continues to spread rapidly, with more than 120,000 new cases reported yesterday. Even without government-mandated shutdowns, the concern is growing that business impacts could be severe throughout the winter months. Numbers show that job growth is slowing and more than 21 million Americans still requiring unemployment assistance. According to Moody’s report, the U.S. economy is at a high risk of backtracking due to the surge in pandemic numbers. Whoever wins the election will face the formidable challenge of avoiding a double-dip recession.
After rising more than 2200 points from last Friday’s low, the bulls recovered and held the 50-day average, vastly improving the technical picture of all the index charts. That said, the T2122 indicator shows an extreme short-term overbought condition making new long positions very high risk should profit-takers step in to capture gains ahead of the weekend. Currently, futures markets point to a lower open, but as earrings roll in and markets wait on the Employment Situation number, anything is possible.
Thursday saw another major gap up followed by a volatile day that left a significant upper wick (especially in the SPY) as markets gave back part of the gains at the end of the day. The SPY could certainly be seen as a Shooting Star type candle, while the QQQ was an indecisive Spinning Top Thursday. On the day the QQQ was up 2.61%, and both the SPY and DIA up 1.94%. The VXX was down again to 21.97 and T2122 climbed back deep into the overbought territory at 92.34. 10-year bond yields fell slightly to 0.765% and Oil (WTI) fell to $38.54/barrel.
Thursday afternoon the FOMC held rates at their near-zero level and said the economy continues to recover but remains well below pre-pandemic levels. Chairman Powell said that the Fed was not out of ammunition and will “remain accommodative” with loan and asset purchasing programs staying in place. He went on to continue urging more fiscal stimulus as pretty much every Fed speaker has done for months.
The election continues to be the main focus of talk and news. As the counts continue, a razor-thin margin has emerged in all the “swing states.” At the moment, it appears like Biden is winning with slight leads in Georgia and Nevada. However, enough votes remain to be counted that half a dozen states are still undetermined. And, of course, this is all before recounts and legal challenges to the validity of major groups of votes play out. All told, the market continues to rally, perhaps on the prospect of a split government with the Administration, Senate and House not all in one party’s hands. However, there is no word yet on the resumption of stimulus negotiations.
On the virus front, we had yet another record high of new cases Thursday (by over 10,000 cases) at 121,888 confirmed. In total, the numbers show we have had 9,926,637 confirmed cases and 241,026 deaths. This record day raised the 7-day average of new cases to 96,454 while the average of daily deaths to 905/day. In fact, the only two states trending down are AL and TN. As a result, more states have tightened mask mandates, imposed new restrictions on gatherings, and extended emergency proclamations. RI issued another stay-at-home advisory.
Globally, the numbers rose to 49,169,894 confirmed cases and the confirmed deaths are now at 1,241,870 deaths. This includes a global record day of 608,550 cases and 9,056 deaths, which has led the 7-day average of new cases to 523,344 while the 7-day average virus deaths is now at 7,338/day. Obviously, this means more restrictions, lockdowns, and economic trouble, especially throughout Europe.
Overnight, Asian markets were mixed but mostly green. India (+1.18%), Indonesia (+1.43%), and Malaysia (+1.21%) led the significant gainers. Meanwhile, Shenzhen (-0.77%) was the only significant loser among a handful of moderate losses. In Europe, markets are red across the board so far today. Among the big 3 bourses, DAX is down 0.86%, CAC down 0.71%, and the FTSE flatter at -0.16% as of mid-day. As of 7:30 am, US futures are also pointing to the red side. The DIA is implying a -0.48 open, the SPY implying a -0.67% open, and the QQQ implying a -0.96% open at this point.
The major economic news for Friday includes Oct. Avg. Hourly Earnings, Oct. Nonfarm Payrolls, Oct. Unemployment Rate, and Oct. Participation Rate (all at 8:30 am). Major earnings reports include AES, CLMT, CQP, LNG, COTY, CVS, DISH, UFS, ELAN, HSY, IEP, MGA, MAR, MYL, PRIM, TU, VTR, and ZBH before the open. There are no major reports after the close.
Election uncertainty remains as does a wild-fire virus. The politicians are still focusing on and/or absorbing the election results. So, stimulus measures are not yet back front and center in Washington. Expect more volatility and remember that this is Friday. After the run of the last few days, we may see more profit-taking and hedging going into the weekend.
Stick with your trading rules and maintain discipline. Keep taking your money when you reach goals and don’t let profits evaporate waiting on “just a little more.” Don’t chase the moves you have missed, follow the trend, and respect those support and resistance levels. Trading is a marathon, not a sprint.
Ed
Swing Trade Ideas for your consideration and watchlist: IVZ, DRI, HCA, IR, TUP, FLR, CFG. 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
Extraordinary bullishness pushed indexes above their respective 50-day averages yesterday, vastly improving the index charts’ technical picture. However, the extreme price move comes with the significant risk of a dramatic pullback as the pandemic infection rates surge to a new daily record, and hospitalizations reach critical levels in several states. As Italy enters a shutdown, the ECB announced another 150 billion in bond buying, helping boost market around the world this morning.
Asian markets surged overnight following the massive Wall Street rally on Wednesday. European markets are green across the board despite the rising economics of more lockdowns going into effect. The U.S. futures are once again flying high this morning ahead of a massive day of earnings reports and an FOMC rate decision at 2 PM Eastern.
As they continue to count votes is looking more and more like a Biden win is on the way. Still, some are saying we won’t have a definitive decision with multiple legal challenges until late November or early December. However, it looks as if whoever becomes President, the results in the Senate and House point toward gridlock, which the market appears to like gaging by its wildly bullish response yesterday. While everyone focused on election results, the pandemic infection rates soared to a new daily record of more than 100,000. Hospitalizations also surged at an alarming rate, reaching record levels in Missouri, Oklahoma, Iowa, Indiana, Nebraska, North Dakota, and New Mexico. Iowa and Missouri warned the hospital bed capacity could soon become overwhelmed. Senate Leader Mitch McConnell is now suggesting an urgency to come to a stimulus agreement by the end of the year, boosting futures markets. Also helping to boost market sentiment this morning, the ECB injected another 150 billion in bond buying as Italy enters lockdown.
Yesterday’s market surge was extraordinary as the bulls gapped the four major indexes above their respective 50-day morning averages. In a late-day selloff, the DIA drifted back down below it 50-day while the SPY, QQQ, and IWM held on to this key psychological support. Facing our biggest day of earnings reports so far this quarter as well as an FOMC rate decision, we can expect significant price volatility. With the indexes, so extended traders will have to shoulder the substantial risk of pullback to enter long positions. That said, with hopes of a stimulus deal on the horizon, entering short positions also carries substantial risk. Set aside emotion and plan carefully in this very news-driven market.
