The afternoon New Year’s eve record-setting rally looks to extend this morning as the bulls step on the gas on this first trading day of 2021. Trends remain bullish as vaccine results will produce a much better year for business. That said, hospitalizations hit new records as well over the holiday shutdown. One has to wonder what kind of restrictions will businesses have to face under a new administration should the surge continue. Long story short, have a plan of action to protect your capital should the market stumble.
Asian markets closed mixed but mostly higher overnight, and European markets are decidedly bullish this morning. U.S. futures point to bullish open ahead of PMI Mfg. and Construction Spending numbers with a very light day on the earnings calendar. Expect possible political news sensitivity as the tenuous transition of power begins.
Economic Calendar
Earnings Calendar
Although we have several small-cap stocks listed on the earnings calendar, their reports are unconfirmed, and thus no notable earnings.
News & Technicals’
On the first trading day of 2021, the U.S. Futures look to extend the late New Year’s eve record-setting rally. With an accommodative Fed, more Governmental stimulus rolling out, and high hopes that vaccines will put the pandemic behind us, there is a reason for all the bullishness. However, with indexes already at record highs, high unemployment, and substantial economic damage to businesses, traders will have to remain focused and ready to act should the market stumble. Market P/E valuations are very high as we enter the new year, and with economic restrictions still in place, will companies be able to produce healthy enough earnings to sustain current prices? Hospitalizations hit new records highs over the holiday and did post-pandemic travel. How will the new administration respond if infection rates continue to surge? A lot to ponder as we kick-off the new year.
One thing for sure at the moment is that the index trends remain bullish, and there seems to be a relentless willingness to buy up stocks no matter the valuation. Some suggest we are in a growing bubble, and while that may be true, bubbles can continue to extend for months. As traders, all we can do is stay with the trend as long as it lasts, follow our rules, and avoid overtrading. Always have a prepared plan should the bears suddenly have reason to come back to work. Trust me, they will, and it will likely occur very suddenly. With this morning gap up to new records, the T2122 indicator will once again show a short-term extended condition. The Absolute Breadth Index remains in a concerning decline, and keep in mind the VIX-X remains above a 20 handle as we set new records in the indexes.
Markets opened relatively flat on New Year’s Eve. However, after some normal volatility, the bulls won out. All 3 major indices closed at new all-time high Closes (but not above prior intraday highs). The large-caps both printed “Morning Star type” candle patterns and the QQQ printed a Bullish Harami (of the Spinning Top variety). On the day, the DIA gained 0.55%, the SPY gained 0.51%, and the QQQ gained 0.25%. VXX was flat at 16.79 and T2122 (4-week New High/Low Ratio) inched up just outside of the overbought territory at 79.59. 10-year bond yields were flat at 0.916% and Oil (WTI) was also flat at $48.42/barrel.
In business news over the long weekend, TSLA reported they just missed its goal of shipping 500,000 cars in 2020, coming up just 450 cars short of the milestone. Bitcoin also rallied above $34,000 for the first time. And the NYSE delisted 3 Chinese telecom companies as required by President Trumps November executive order. China vowed some unspecified retaliation on Saturday. In early Monday news, 226 GOOG employees have formed a union after ongoing disputes with management.
On the political front, the new Congress was sworn in. The Senate also completed the process by voting to override the President’s veto of the $740 billion Defense Spending bill (now law). The same leadership was re-elected on either side of the aisle in both Houses, while the President continues to pressure and plot ways to overthrown his election defeat. This runs against the backdrop of the GA Senate runoff elections that are likely to leave the Republicans in control of the Senate but are very close races according to most pundits. No legislative agenda (such as a vote on raising stimulus payments to $2,000) is likely to take place until after those results.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 21,113,528 confirmed cases and 360,078 deaths. The post-holiday surge is still not fully upon us. However, the 7-day daily average remains high at 216,886 new cases and 2,696 deaths per day. Three more states have identified cases of the new strain of COVID-19 over the weekend. Most experts have been saying they believe the new strain is already everywhere. On Sunday, the federal government said it is in talks with the FDA to possibly speed up the rate of vaccinations by giving half doses of the MRNA vaccine to twice as many people.
Globally, the numbers rose to 85,579,769 confirmed cases and the confirmed deaths are now at 1,852,389 deaths. As a reference, the world is averaging about 613,548 new cases and 11,066 new deaths per day. The new strain first seen in the UK has now been found in 37 countries as well as Hong Kong and Taiwan. Parts of Japan are going back into lockdown. There is also now a different mutation out of South Africa. Oxford scientists say this strain has substantial changes in the structure of the virus and is therefore concerning related to current vaccine effectiveness. British Health Minister Hancock said it is too early to tell, but he is incredibly worried about the new variant. In an interesting story, Bloomberg says France is approaching vaccinations in a very cautious way, having only completed 500 of the first round of shots to date, despite starting the same day as all other European countries.
Overnight, Asian markets were mostly green. Malaysia (-1.51%) and Japan (-0.68%) were outliers. However, South Korea (+2.47%), Shenzhen (+2.45%), and Australia (+1.47%) led the rest of the Asian exchanges higher. This came despite Chinese Dec. Mfg. PMI data coming in below expectations. In Europe, markets are solidly green across the board so far on Monday. Among the big 3 bourses, FTSE (+2.59%) leads the way with the CAC (+1.52%) and DAX (+1.08%) more typical across the continent. As of 7:30 am, US Futures are pointing to a moderate gap higher at the open. The DIA is implying a +0.47% gap, the SPY a +0.43% gap, and the QQQ a 0.41% gap higher.
The major economic news for Monday is limited to Dec. Mfg. PMI (9:45 am) and a Fed speaker (Bostic at 10 am). There are no major earnings reports on the day.
The bulls seem to want to start off the new year on a small gap higher. With much of the big money expected to return to the office today, we may see some optimism coming off their vacation. For whatever reason, Bitcoin has taken a major Monday hit (down 10%) after having reached all-time highs.
Focus on the chart and your trading process. Lock in those base hit profits and maintain your discipline. Follow the trend, respect support and resistance, and don’t chase moves you have missed. Remember that trading is a marathon, not a sprint. So, don’t try to get rich quick. Do it in the long-run by hitting goals over and over again.
Ed
Swing Trade Ideas for your consideration and watchlist: COMM, TFC, TXN, SWCH, JNPR, HON, ORBC, AVTR, WFC. 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
The bears decided to make an appearance yesterday, raising some concern in the IWM as it slipped below its uptrend. Although printing some bearish candles, the DIA, SPY, and QQQ uptrend remain intact as the bulls fight back in the premarket, suggesting a bullish open. Consider your risk carefully, as the volume could quickly diminish today, making it difficult for the bulls to sustain the opening pop. Plan your risk carefully as we slide into the holiday shutdown.
Overnight Asian markets traded mostly lower as China revised 2019 GDP growth lower. European markets trade flat to modestly lower this morning despite the positive vaccine news with stocks lacking momentum. The U.S futures bucking the trend point to a higher open as the bulls fight to regain record territory once again. Momentum could be a problem today, so stay focused and be careful not to get caught up in fear of missing out.
Economic Calendar
Earnings Calendar
There are no confirmed earnings reports today.
News & Technicals’
Vaccine is back in the news today, with the Oxford-AstraZeneca gaining approval in the U.K. McConnell blocks the $2000 direct payments approved just yesterday by the U.S. House. Then tied the bill to other legislation that includes election security as well as tech. McConnell also asked the Senate to approve the military spending bill that was vetoed by the President. Colorado has confirmed the first case of the new, more infectious strain of COVID discovered in the U.K. One of the newly elected Congress died yesterday in a Louisiana hospital from COVID-19 just days before being sworn in and taking his seat. He was only in his 40’s.
Although the bears came out to play yesterday, leaving behind some concerning daily candle patterns, yet three indexes remain in bullish trends. The very extended IWM index is of most concern following the Tuesday bearish engulfing candle to slip below its current uptrend. However, we once again see the futures pointing to a bullish open as the familiar morning pump begins. Yesterday’s selling relieved the pressure of overextended condition in the T2122 indicator, but the Absolute Breadth Index continues to decline, providing a reason for caution. Keep in mind volume is likely to drop quickly today, and the early pop higher may have trouble finding the momentum to sustain.
Markets gapped higher about half a percent again Tuesday. However, after the gap, the rest of the day saw a roller coaster selloff. This caused large black Bearish Engulfing candles in the large-cap indices and a Black Spinning-Top type candle in the QQQ. However, it is worth noting the QQQ also closed at yet another all-time high. Part of the reason behind the post-gap selloff might be that Tuesday was the last day to sell (or buy) and have the trade settled before year-end. On the day QQQ led at almost flat +0.09%, while the SPY (-0.19%) and DIA (-0.18%) were down slightly on the day. The VXX rose over 3.6% to 17.43 and T2122 fell to the low side of the midrange at 45.35. 10-year bond yields rose to 0.938% and Oil (WTI) also gained a percent plus to $48.23/barrel.
During the day, Senate Democrats moved for unanimous consent to the increase in direct payments to Americans to $2,000. However, that was showdown by Senate Majority Leader McConnell. The “consensus view” is that McConnell will block all attempts for a Senate vote on the direct payments until after the GA Senate runoff elections end next week. So, the only vote expected in the Senate this week will be a vote on overriding the President’s veto of the $740 billion Defense Spending bill.
Related to the virus itself, US infections continue the winter surge. The totals have risen to 19,977,704 confirmed cases and 346,579 deaths. The expected post-holiday surge is still a couple of weeks away. However, the 7-day daily average remains high at 184,221 new cases and the average number of deaths was raised by a record number of new deaths that brought the average to 2,250 deaths per day. Overnight, a LA Congressman-elect died of Covid. In CA, Governor Newsome extended the stay-at-home order for two regions of the state Tuesday and the new order will stay in place until those regions’ “available ICU bed capacity” rises to at least 15%. Elsewhere, CO has genetically verified the first case of the new strain of the virus (first seen in the UK) that appears much more contagious, but also has no worse a rate of hospitalizations and is no more deadly than the original strain. The more concerning point was that the case was found in a man who had no history of travel. This implies the case was locally transmitted.
Globally, the numbers rose to 82,446,401 confirmed cases and the confirmed deaths are now at 1,799,505 deaths. As a reference, the world is averaging about 563,575 new cases and 10,321 new deaths per day. In the UK, they approved the Oxford-AZN vaccine today. The AZN vaccine is less effective (70%), but also requires much less stringent storage temperatures. In Asia, countries continue to retighten their borders due to the new strain of virus. Taiwan and Hong Kong joined the list of countries prohibiting or tightening requirements for International travelers entering the country. In China, the state-owned pharma company Sinopharm announced data showing their own vaccine is 79.34% effective based on two doses.
Overnight, Asian markets were mixed yet again, but this time leaned to the green side. Hong Kong (+2.18%), South Korea (+1.88%), and Taiwan (+1.49%) led the gainers. The losses came from smaller exchanges like Indonesia (-0.95%), Thailand (-0.86%), and the larger Japan (-0.45%). There is a similar story in Europe so far today, but on much more moderate moves. Among the big 3 bourses, the FTSE (-0.06%) and CAC (-0.02%) are on the red side of flat, while the DAX (+0.08%) is just on the green side of flat. As of 7:30 am, US futures are pointing to a positive open. The DIA is implying a gain of +0.29%, the SPY implying a gain of +0.34%, and the QQQ implying a gain of +0.33%.
The major economic news for Wednesday is limited to Nov. Trade Balance and Nov. Retail Inventories (both at 8:30 am), Dec. Chicago PMI (9:45 am), Nov. Pending Home Sales (10 am), and Crude Oil Inventories (10:30 am). There are no major earnings reports on the day.
With the last day to sell (and get the sale settled before year-end) behind us, the Bulls should have a tailwind today. However, with no earnings and no major recent economic news catalyst, it may not be a strong wind. Also, keep in mind that volume is expected to remain on the light side.
Focus on working your process and keep your eye on the chart. Lock in those base hit profits and maintain your discipline. Follow the trend, respect support and resistance, and don’t chase the moves you have missed. Remember that trading is a marathon, not a sprint. So, don’t try to get rich quick. Do it in the long-run by hitting goals over and over again.
Ed
Swing Trade Ideas for your consideration and watchlist: MKC, HWM, NIO, RIOT. 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
Another record-setting day as the market celebrates the passage of the stimulus bill. With a very light day of earnings and economic news, you might want to keep an eye on the Senate today as they deliberate on the $2000 direct payments bill passed by the House yesterday. It could make for some interesting political drama, and their decision could have significant market ramifications.
Overnight Asian markets were mixed but mostly higher as the NIKKEI surged to price levels not seen since the early 1990s. European markets are green across the board this morning, and the U.S. futures point to more new record highs as the bulls continue to march higher. Remember, volume and momentum can quickly diminish as we approach the holiday shutdown plan your risk accordingly.
Economic Calendar
Earnings Calendar
On the last trading Tuesday of 2020, we have a light day of earnings with just one verified report coming from JRJC.
News & Technicals’
After a record-setting day, futures continue to push higher in reaction to the stimulus bill’s passage. Yesterday the U.S. House passed a bill to raise direct payments to $2000, and they easily gained the 2/3 vote required to override the President’s veto of the defense bill. The focus will now turn to the Senate as the legislative year draws to a close. Treasury yields continue to rise this morning and may well react depending on the Senate vote on stimulus checks. The Boeing 737 Max returns to the air here in the U.S., which may be good timing with investors seeing a bright near-term future for airlines anticipating a significant return to air travel post-pandemic environment.
Although the market remains in rally mode, it’s a bit difficult for me to be excited about the rally, with volume likely to shrink heading toward the New Year’s shutdown. The Absolute Breadth Index continued to decline yesterday, indicating fewer and fewer stocks are holding the market up. The T2122 indicator also supports that thought showing a modest decline yesterday as the market rallied. The tech giants AAPL, AMZN, GOOG, MSFT, did most of the work yesterday, enjoying strong buy-side pressure. Plan your trading carefully as volume and momentum can quickly fade as we approach the holiday.
Markets gapped up Monday on the signing of the Stimulus package. However, stocks then roller-coastered sideways the rest of the day. This left all 3 major averages with some soft of a gap-up Doji candle. The worst of those was the DIA which printed a high-wick Shooting Star tyle candle. On the day, SPY was up 0.86%, DIA up 0.66%, and QQQ up 1.01%. VXX was flat at 16.82 and T2122 fell just outside of overbought territory to 78.15. 10-year bond yields fell slightly to 0.923% and Oil (WTI) dropped a percent to $47.69/barrel.
After hours the House passed a bill (with 73% voting for the measure) calling for the $2,000 direct payments President Trump said he wanted. This will force the Senate Republicans to publicly vote for/against the matter that the President knows most GOP members oppose. The other vote of note was that the House overrode the President’s veto of the $740 billion Defense Spending bill. Again, this pushes the bill to the Senate where an override vote will be held today.
Related to the Chinese economy, a survey of Chinese executives done by China Beige Book said they do not expect their companies to return to 2019 profitability until after the first quarter of 2021. In related news, the IMF reports that the Chinese economy now has more purchasing power than the US economy and that Chinese GDP should pass that of the US within the next 6-7 years. Assuming the projections are correct, that would be the first time since the 1920s that the US did not have the largest GDP on the planet.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 19,781,718 confirmed cases and 343,182 deaths. As expected, there was a significant falloff in reported new cases and deaths over the long holiday weekend (as state and hospital offices were closed). However, the 7-day daily average remains 184,692 new cases and the average number of deaths are 2,247 deaths per day. The number of Covid-19 hospitalizations reached an all-time high of over 121,200 Monday. In Los Angeles, one hospital system CEO reports they will need to begin rationing care with the expected Christmas wave of new cases.
Globally, the numbers rose to 81,769,157 confirmed cases and the confirmed deaths are now at 1,784,070 deaths. As a reference, the world is averaging about 559,998 new cases and 10,143 new deaths per day. In Asia, travel bans are ticking up again due to the newest strain of the virus. Indonesia and the Philippines are banning foreigners from entering their countries as of January 1. In Europe, the Netherlands will demand a negative PCR test within 72 hours of all arrivals. In follow-up news, Chinese CDC researchers say a study of 34,000 people in Wuhan show a 4.43% prevalence of antibodies. This implies the number of cases in Wuhan was 10 times higher than officially reported. However, outside that city of 11 million, he rate is only 0.44%, which falls more or less in-line with Beijing totals.
Overnight, Asian markets were mixed again. Japan (+2.66%) again far out-paced other gainers with Hong Kong (+0.96%) next in line. Among losers, Indonesia (-0.94%), Shenzhen (-0.64%), and Shanghai (-0.54%) paced the losses. In Europe, markets are green across the board. The FTSE (+2.12%) made significant catch-up gains while the DAX (+0.28%) and CAC (+0.44%) are more typical as of this point in the day. As of 7:30 am, US futures are pointing to a positive open. The DIA is implying a gain of +0.45%, the SPY implying a gain of +0.48%, and the QQQ implying a gain of +0.44%.
The only major economic news for Tuesday is Conf. Board Consumer Confidence (10 am). There are no major earnings reports on the day.
Once again, with no economic or earnings data and still being in the holidays, the bulls may be able to keep prices drifting higher. However, beware of the possibility of year-end profit-taking and portfolio rebalancing that could lead to selling and rotation. Also, keep in mind that volume is expected to be light. The other potential driver would be the Senate vote on additional direct payments. While expected to be rejected, if passed that extra $1,400 in American pockets could help the bulls.
As usual, focus on the process and chart, keep locking in profits and maintain your discipline. Follow the trend, respect support and resistance, and don’t chase the moves you have missed. Remember that trading is a marathon, not a sprint. Don’t try to get rich quick. Do it in the long-run by hitting goals over and over again.
Ed
Swing Trade Ideas for your consideration and watchlist: LYFT, TJX, SBUX, AAOI, YUM, MGM. 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
With the signing of the stimulus bill, the bulls are bidding up the futures market this morning, suggesting a gap up open with the possibility of some new record highs as a result. However, there is a reason for some caution, with a significantly elevated T2122 indicator and the Absolute Breadth Index remaining in decline. Plan carefully and stay alert for the traditionally low volume that often accompanies the days between Christmas and New Year’s.
Asian markets closed mixed but mostly higher, with Hong Kong declining as Alibaba shares plunge nearly 8%. European markets are green across the board this morning, celebrating a Brexit trade deal and, in reaction, the $900 Billion stimulus spending. Here in the U.S., futures point to a bullish open and possible index records as we kick off the last 4-trading days of 2020.
Economic Calendar
Earnings Calendar
We have only four verified earnings this Monday. Notable reports include FDS and HEI.
News & Technicals’
After hinting that he may not sign the stimulus bill, President Trump finally signed it into law while still supporting the idea of $2000 direct payments rather than the $600 the bill provides. That news is inspiring European markets and U.S. futures markets higher at the open. Treasury yields trade higher this morning as well relieved by the avoidance of a government shutdown heading into the end of the year. With air travel hitting new post-pandemic highs over the Christmas Holiday, Whitehouse advisor Dr. Fauci warns of a likely surge in infection rates coming in the weeks ahead.
With the overnight surge of bullishness after news of the stimulus bill came out, the indexes point to gap up open and possible new record highs. However, traders will have to stay on their toes as the trading days between Christmas and New Year’s traditionally suffer from a lack of volume, meaning momentum may quickly fade. With a light day on the economic calendar and very little in the way of earnings, the market could be quite sensitive to political news. Stay focused and plan your risk carefully, as price action could quickly become light and choppy.
Thursday saw a flat open in the Market. Then after a sideways grind most of the day, a late-day “here comes a day off” rally in the afternoon saw an early close near the highs. The large-caps printed inside days and the QQQ printed a Bullish Harami on the day. At the close, SPYA was up 0.39%, QQQ up 0.44%, and DIA up 0.25%. The VXX was down almost 3% to 16.88 and T2122 (4-week new High/Low ratio) fell, but remains well inside overbought territory at 89.69. 10-year bond yields rose slightly to 0.926% and Oil (WTI) rose to $48.30/barrel.
In another bad sign for BA, one of its just-recertified 737 Max planed had to divert for an emergency landing during its delivery flight to Air Canada (from the Arizona storage facility where 737 Max have been moth-balled during the 18-month flight ban). The problem seemed to be an engine hydraulic warning, which forced the shutdown of the engine shortly after takeoff. In other corporate news, FB is shutting down the Irish holding companies that allowed it to shift billions of dollars to Ireland to avoid higher taxes in the US and other countries. Finally, Sunday BABA announced it is increasing its share buyback plan from $6 billion to $10 billion, but this has not helped the stock as Chinese regulators pressure the company o come in line with Chinese law.
The other major story of the weekend was President Trump’s continued calls for a more generous $2,000 per person direct payment and his not signing the stimulus bill which contains a $600 direct payment (and a lot of pork and unrelated spending). The net effect is that the unemployment and loan programs expired Saturday. However, on Sunday night, after strong-arming Republican Senators into agreeing to votes on an increase in the direct payments, his unfounded allegations of election fraud, and his desire to punish Social Media companies by repealing Section 230, he did sign the bill.
Related to the virus itself, US infections continue to rage as the US. The totals have risen to 19,573,847 confirmed cases and 341,138 deaths. As expected, there was a significant falloff in reported new cases and deaths over the long holiday weekend (as state and hospital offices were closed). However, the 7-day daily average remains 183,773 new cases and the average number of deaths fell to 2,238 deaths per day. The expectation is that cases will soar again in a couple weeks after holiday travel and gathering spread has incubated.
Globally, the numbers rose to 81,217,556 confirmed cases and the confirmed deaths are now at 1,773,724 deaths. As a reference, the world is averaging about 559,998 new cases and almost 10,128 new deaths per day. Over the weekend the EU began vaccinations with the PFE-BNTX vaccine. They are also expected to approve the AZN vaccine this week.
Overnight, Asian markets were mixed in modest trading moves. Among the exchanges, Japan (+0.74%) was the clear leader to the upside, while Thailand (-2.26%) was far and away the biggest loser. However, in Europe markets are green across the board so far today. Among the 3 major bourses, The DAX up 1.52%, the CAC up 1.15%, and the FTSE lags at a flat +0.10%. This was aided by an unexpected (and not yet ratified) Brexit trade deal. The UK Economic Minister reported that instead of a -6% GDP in 2021, the deal likely means only a -4% GDP. As of 7:30 am, US futures are pointing to a gap higher. The DIA is implying a gain of +0.52%, the SPY implying a gain of +0.68%, and the QQQ implying a gain of +0.73%.
There is no major economic news for Monday. The only major earnings report on the day will be WB before the open.
With no economic or earnings data and still being in the holidays, the bulls may be able to keep prices drifting higher. However, beware of the possibility of year-end profit-taking and portfolio rebalancing that could lead to selling and rotation. The resumption of the expired stimulus programs may help, but this came at the cost of more political theatre to come. Democrats plan to put the $2,000 direct payment to a vote today and the Republicans oppose the idea. (Many see this as a GOP power struggle between outgoing President Trump and rest of his party led by Senate Majority Leader McConnell.)
It looks like a strong open today. You will be very tempted to chase, but consider where markets are in general (near all-time highs) with political theatre ahead and expecting more bad virus news soon. As usual, my advice is to focus on the process and chart, keep locking in profits and maintain your discipline. Follow the trend, respect support and resistance, and don’t chase the moves you have missed.
Ed
Swing Trade Ideas for your consideration and watchlist: No Trade Ideas Today. 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
