Markets did very little Tuesday, perhaps waiting on either the Presidential Debate or on a stimulus package deal.  After a flat open, stocks traded flat to slightly lower on the day, printing black-body indecisive candles.  The SPY and DIA both failed to break through their 50sma and the QQQ failed to break through its 20sma.  On the day SPY was down 0.53%, DIA down 0.53%, and QQQ down 0.45%.  The VXX was down a bit to 24.91 and T2122 fell back to mid-range at 45.12.  10-year bond yields fell to 0.65% and Oil (WTI) dropped almost 4% to $38.99. 

House Democrats unveiled their $2.2 Trillion ($200 billion less than expected) stimulus plan early in the day as talks resumed between Treasury Sec. Mnuchin and Speaker Pelosi.  The Tuesday session was simply to outline the new Democrat proposal specifics with actual negotiation talks scheduled to resume Wednesday.  In related news, AAL unions and company officials said up to 19,000 employees will lose their jobs this week unless a deal is reached to support the airline industry.

After the close, DIS announced it will lay off 28,000 employees across its Theme Parks and Consumer Products divisions.  UNH also announced the purchase of an AMZN prescription mail-order service called DivvyDose.  GOOG has made a fresh round of concessions on data gathering as well as allowing third-party wearable device makers to work with Fitbit.  The concessions are likely to earn it the EU approval for its $2.1 billion purchase of Fitbit.

On the virus front, in the US, the numbers show we now have 7,406,729 confirmed cases and 210,797 deaths.  The 7-day average daily new case count is back up to 42,804, while the 7-day average of deaths is now 755.  New York City spiked to over a 3% positive test rate on Tuesday for the first time in months. The city may reintroduce restrictions as soon as today with the possibility of closing schools again next week if the rate does not fall.  This comes as Bloomberg reports a 40% increase in bankruptcy filings in the city compared to 2019.  In good news, REGN announced after the close that its 2-drug cocktail therapy for Covid-19 has shown to reduce the length symptoms in 275 non-hospitalized virus patients, with serious side-effects in just 2 patients in early testing.  At nearly the same time, MRNA also released its Phase 1 vaccine trial (done in April) findings of an “acceptable safety” level, with only moderate side effects found among the 40 study participants.

Globally, the numbers rose to 33,879,038 confirmed cases and the confirmed deaths passed a grim milestone, now at 1,013,241 deaths. Amidst surging R-naught numbers, the Dutch government tightened restrictions Tuesday, reducing restaurant/bar hours, reducing permissible visitors to homes, reducing maximum gathering sizes to 4, and reducing room occupancy to 30.  In Germany, Chancellor Merkel vowed to avoid another full lockdown by using immediate local and regional quarantines as soon as a flare-up is detected.   This all said, France and Spain still report double the new cases daily of the UK, which itself reports triple the number of the next closest country.  So, the immediate new surge seems far worse in the South of Europe.

Overnight, Asian markets were mixed again, but lean to the red.  Australia (-2.29%), Thailand (-1.61%), and Japan (-1.5%) pace the losers.  Meanwhile, South Korea (+0.86%) and Hong Kong (+0.79%) are the only significant gainers. In Europe the losses are much more widespread so far today.  The only green is in Portugal and Greece, but it should also be said that losses are moderate so far.  The CAC is down 0.44%, the DAX down 0.42%, and the FTSE down only 0.10%.  At 7:30am, US futures are all just on the red side, pointing to a gap down of about half a percent.  However, GDP numbers at 8:30 am may greatly influence the open.

The major economic news for Wednesday includes ADP Nonfarm Employment (8:15 am), Q2 GDP (8:30 am), Sept. Chicago PMI (9:45 am), Au. Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), and 3 more Fed speakers (Kashkari at 11 am, Bowman at 1:40 pm, and Kaplan at 6 pm).  There are no major earnings reports on the day Wednesday.

Resistance held Tuesday as markets seemed to have been waiting on the debate. The futures this morning appear to signal that they didn’t hear anything they loved. So, we are left waiting on more news (GDP or a stimulus deal) to push the markets one way or the other. The only thing we know for sure is that we do not yet have a bullish trend, but the September downtrend has been broken as volatility continues.

With this being month-end, it is possible we see some window dressing today, although they certainly didn’t start that process yesterday. Don’t try to predict or guess the direction. Mr. Market has a way of making forecasters sorry they played that game. Either sit on the sidelines or be small and quick in your trading, looking for a trend in a smaller timeframe chart.  If you do trade, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in those profits, because singles and doubles are the keys to success.

Ed

Swing Trade Ideas for your Consideration and Watchlist: TGT, NUAN, BYND, CARR, TWTR, SNAP, PENN. 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.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Monday saw a gap up open following upbeat remarks from Speaker of the House Pelosi as she was scheduled to speak to Treasury Sec. Mnuchin again during the day to renew negotiations on stimulus.  However, after the gap-up, both large-cap indices held in a tight range right at their 50-sma resistance level printing indecisive Spinning Top type candles.  Meanwhile, the tech-heavy QQQ gapped up even further and printed a much wider range, ending up at the highs of the day in a potential Hanging Man type candle.  On the day, the QQQ was up 2.08%, SPY up 1.68%, and DIA up 1.56%.  The VXX was flat at 25.41 and T2122 jumped clear up into the overbought territory at 82.26.  10-year bond yields were flat at 0.661% and Oil (WTI) was up a bit to $40.59/barrel.

In an interesting twist to the tech industry, GOOG announced Monday that starting in a year, all app-makers who distribute through their Google Play Store will be forced to use the GOOG billing system and pay GOOG a 30% fee off the top.  This falls in-line with the current AAPL policies regarding their app store, which they are being sued over by game-maker Epic Games, MTCH, and SPOT over supposed better deals that AAPL gives Netflix.

UAL pilots approved a pay cut to avoid furloughs of nearly 3,000 pilots through at least June 2021.  The 3,000 were set to be laid off on October 1^st prior to the announced deal.  However, the airline is still planning to cut 13,000 jobs next month.

On the virus front, in the US, the numbers show we now have 7,361,889 confirmed cases and 209,815 deaths.  The 7-day average daily new case count is now at 41,604, while the 7-day average of deaths is now 755.  Dr. Fauci (NIH) said Monday that he is worried about where the US is in terms of daily case count as we enter the Fall/Winter flu season.  This comes as 33 states report rising new case counts (especially Midwest and Western states).  Both Fauci and CDC Dir. Redfield also added their concern that the President is being misinformed by new Task Force Member Atlas (a mask detractor and proponent of herd immunity) added to the Task force after being found to align with the President’s views.  All this comes as VP Pence told a presser that Americans should expect a rise in cases soon based on the worrying testing trends.  Nonetheless, in Chicago Mayor Lightfoot further eased restrictions in the city Monday.

Globally, the numbers rose to 33,585,721 confirmed cases and the confirmed deaths passed a grim milestone, now at 1,007,196 deaths.  The WHO said Monday that the global Covid-19 death count is likely an underestimate.  This comes on top of a Journal of Amer. Medial Assn. (JAMA) study that found the US death count is undercounted by as much as 28%.  In Canada, the 2 largest provinces are applying broad restrictions as cases jumped 71% since August.  In Europe, the EU added 4 more countries to the red list (increased cases) including Netherlands, Denmark, Iceland and Hungary.  (Spain, France, Czech Republic, and Luxembourg were already listed).  At the same time German Chancellor Merkel is meeting with the leaders of Germany’s 16 states to discuss introducing tougher restrictions.

Overnight, Asian markets were mixed again, but closer to flat.  Shenzhen and South Korea paced the gainers while Hong Kong and most of the smaller economies all came in at half a percent to one percent loss.  In Europe markets are leaning to the down side, but the worst of these moves is just over a half percent loss.  Among the 3 major bourses, CAC is flat, DAX down 0.31%, and FTSE down 0.25%.   At 7:30am, US futures are all just on the red side of flat

The major economic news for Tuesday includes August Trade Balance and August Retail Inventories (both at 8:30 am), Conf. Board Consumer Confidence (10 am), and 5 different Fed speakers (Williams at 9:15 am, Harker at 9:30 am, Clarida at 11:40 am, Quarles at 1 pm, and William again at 1 pm).  Major earnings reports are limited to INFO and MKC before the open and MU and SNX after the close. 

Markets may press pause today as they wait on the outcome of the first Presidential Debate tonight. The bulls have strung together a couple of consecutive nice days, but we still sit at resistance after a pullback of the last four weeks. This is still a volatile market with quarter-end in a couple of days. Don’t try to predict. Either sit on the sidelines or be small and quick in your trading.  If you do trade, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in those profits, because singles and doubles are the keys to success.

Ed

Swing Trade Ideas for your Consideration and Watchlist: LB, ETSY, QCOM, MRVL. 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.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped down slightly Friday, but after bobbing around for an hour the bulls rallied the entire rest of the day.  This gave us “Morning Star Like” candle signals in all 3 of the major indices.  On the day SPY was up 1.62%, DIA was up 1.34%, and QQQ was up 2.32%.  However, none of the three have broken their downtrend as we saw a fourth straight week of lower closes in the SPY and DIA.  The VXX fell 2.48% to 25.54 and T2122 rose to 18.84, but remains just inside the oversold territory.  10-year bond yields fell slightly to 0.656% and Oil (WTI) fell back to $40.04/barrel.

Sunday Speaker of the House Pelosi said she is making another offer to Treasury Sec. Mnuchin in their negotiations while House Democrats move ahead with plans for a new $2.4 Trillion stimulus bill.  She told reporters that the new offer will be revealed shortly and that there is still a chance for a deal.  However, this seems like quite a mountain to climb with the Senate and White House focused on confirming ACB to the Supreme court and both parties heavily into campaign mode (doing their best to appease the extremes of their 2 bases).

In the ongoing TikTok saga, a Federal Judge blocked President Trump’s ban on TikTok and WeChat as unconstitutional Sunday evening.  However, the judge did not block a broader set of restriction set to go into place November 12 that might effectively make TikTok unusable in the US anyway.  Beyond the legal finding, the two sides to the deal (ORCL – WMT) and Byte Dance continue to argue over the terms of the deal, including ORCL claiming Byte Dance will retain no ownership of the new company, while all along it has been reported Byte Dance would retain 80% ownership.   

On the virus front, in the US, the numbers show we now have 7,321,465 confirmed cases and 209,454 deaths.  As usual, the weekend new case counts were down after seeing 55,000 on Friday.  The 7-day average daily new case count is now at 41,461. Deaths came back atypically low at 276 while the 7-day average number is now 759.  All this comes as FL Gov. Desantis did his Florida Man impression by completely opening the state and dropping restrictions.

Globally, the numbers rose to 33,342,965 confirmed cases and the confirmed deaths passed a grim milestone, now at 1,002,985 deaths.  In the UK, one of the government science advisors has told the press he supports a repeated “mini-lockdown” (14-day) approach as a way to reduce case growth as the UK saw a 60% increase in cases in the last week.  In France, intensive care admissions have more than tripled in the Southern region of the country.  Down under in Australia, an inquiry has found that a “quarantine hotel” failed to do the isolation demanded in May (visitors, including sex workers, having been allowed into the hostel), which led to over 18,000 infections and over 750 deaths in the state of Victoria.

Overnight, Asian markets were mixed, but leaned to the green side.  Japan (+1.32%), South Korea (+1.29%), and Taiwan (+1.88%) paced the gainers. China, Indonesia, and Australia led the losers.  However, in Europe stocks are strongly in the green across the board so far today.  The DAX is up 2.61%, CAC up 1.94%, and FTSE up 1.32%.  At 7:30am, US futures are also pointing to a gap higher at the open.  The QQQ is pointing to a 1.70% gap up, and both large cap indices are implying a 1.31% gap up as markets look to rebound after four straight down weeks and Quarter-end coming in a few days.

The only economic news of note for Monday is a Fed speaker (Mester at 2 pm). The only major earnings reports on the day are THO before the open and UNFI after the close.

The bulls are looking to rally at the open. This could be a response to the oversold conditions after 4 down weeks. Or it might be an attempt at quarter-end window-dressing. In either case, be wary of chasing gaps against the trend. All we can do is either sit on the sidelines or be very careful and quick in this market.  If you do trade, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in profits, because it’s the singles and doubles that add up to championships, not the occasional home runs. 

Ed

Swing Trade Ideas for your Consideration and Watchlist: SRNE, PINS, FSLY, GAME. 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.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped down about a half percent Thursday after a worse than expected Weekly Jobless Claims number.  However, the bulls stepped in and rallied markets much of the day.  Then about 2pm markets sold off again taking us back near Wednesdays close before a last-minute rally.  On the day, QQQ was up 0.47%, SPY up 0.28%, and DIA up 0.19% with all 3 leaving large upper wicks.  The VXX fell about 2% to 26.19 and T2122 stayed deeply oversold at 1.50.  10-year bond yields fell to 0.664% and Oil (WTI) rose three-quarters of a percent to $40.22/barrel.

Regardless of your political or economic philosophy, we know markets love “free money” coming from Washington. So, in a follow-up story to the Fed requests for more fiscal stimulus this week, House Speaker Pelosi has instructed her committee chairs to draft another relief package (which will undoubtedly look very similar to the previous package the House passed).  It will include additional enhanced unemployment, direct payments to Americans, small business loans, and aid to the airline industry. The House may vote on this new bill as soon as early next week and the new price tag is said to be $2.4 trillion (which is essentially exactly where the Democrats were when the talks collapsed, but $1 trillion below the last bill the House passed in May).  Last week White House Chief of Staff (and negotiator) Meadows had said the Administration would okay $1.5 trillion.  So, the hope is that this new bill will restart negotiations. However, it remains a longshot as the sides (and even factions on the Republican side) remain far apart.

Following-up to the “TikTok Deal” story (involving ORCL and WMT), things are still unclear.  The Chinese government has not approved the deal, but Byte Dance has applied for a Chinese export license which would allow a partial transfer.  In the US, a Federal Judge has asked the Administration whether it will defer the ban on TikTok and WeChat again or defend their policy in hearings over the weekend.  (No reply yet.)  Meanwhile the President’s claims that ORCL would get full access to all TikTok source code conflicts with Byte Dance’s statements that the new company would buy use of the algorithms, etc. from the Chinese-located parent company, which is where actual processing would occur. And, of course, the President’s claim that Byte Dance would pay $5 billion for an educational project have been denied by Byte Dance.  However, it is known the claim that the board of the new company would all be Americans is false.  The board would include 4 undetermined American Citizens and Chaired by Byte Dance founder Zhang Yiming (with Byte Dance holding 80% of the ownership).   

On the virus front, in the US, the numbers show we now have 7,185,915 confirmed cases and 207,540 deaths.  The daily new case count grew to 45,355, well above the 7-day average of new cases.  Deaths came back to typical numbers at 942 for Thursday, well above the average of 761 per day.

Globally, the numbers rose to 32,454,833 confirmed cases and 988,497 deaths.  As witnessed by the lockdown in Israel, there appears to be a surge in the middle east with Lebanon, UAE, Bahrain.  Oddly, Saudi Arabia, Egypt, and Qatar have all reported dramatic drops in the number of new cases over the last month.  In Europe, the spread continues with Poland, Russia, and the Czech Republic all seeing the highest increase in cases in several months.

Overnight, Asian markets were mixed with India, Australia, and Japan pacing the winners.  China, Taiwan, and Hong Kong paced the losers, though most losses were moderate.  However, stocks are decidedly bearish so far today in Europe.  The DAX is down 1.67%, CAC down 1.76%, and FTSE down 0.57%.  The rest of the bourses are all well into the red as well. At 7:30am, US futures are pointing to another gap down open.  The QQQ is pointing to a modest open 0.30% lower, but the large-cap SPY (-0.63%) and DIA (-0.78%) are implying a bigger gap down as markets are staring into a fourth straight losing week.

The major economic news for Friday is limited to August Durable Goods (8:30 am). There are also no major earnings reports for the day.

The bulls tried to come back on Thursday, but rolled over and gave back ground in the afternoon.  This left us with nothing but an indecisive day in a downtrend.  While this relative pause was expected after a brutal Wednesday, it does nothing to buoy spirits coming into Friday.  The bears continue to smell blood and volatility remains high.  All we can do is either sit on the sidelines or be very careful and quick in this market.  If you do trade, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in profits, because it’s the singles and doubles that add up to championships, not the occasional home runs.  Finally, remember it’s Friday.  So make a conscious decision about what positions and/or hedges you want to carry over the weekend news cycle.

Ed

Swing Trade Ideas for your Consideration and Watchlist: TZA, SDS, SQQQ. 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.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets opened mixed on small gaps, but then the bears took over for an all-day selloff with prices closing near the lows.  The SPY and DIA printed large Bearish Engulfing candles and the QQQ missed only due to a small gap-down open.  In particular, TSLA was hammered (-10.34%) over poor “Battery Day” announcements, but to be fair, all the FAANGM stocks were hit hard.  On the day, DIA was down 1.92%, SPY down 2.32%, and QQQ down 3.05%. The VXX gained over 5% and T2122 fell dramatically deep into the oversold territory at 1.11.  10-year bond yields were flat at 0.674% and Oil (WTI) was only down slightly to $39.55/barrel.

JPM agreed to pay a $1 billion penalty for manipulations (spoofing) of the metals and treasuries markets to end the ongoing investigations by the Commodities Futures Trading Commission and the SEC.  However, the settlement is not expected to result in any business restrictions against JPM.  (Spoofing is the practice of floor traders submitting orders to force prices one direction or the other and then canceling the orders before they are executed.) In either an odd coincidence or a case of PR, within an hour of that announcement, JPM also announced they are spending $1 billion to for a workplace diversity program.

A couple of quick tidbits:

• Fed Chair Powell again urged the Senate to provide more fiscal stimulus. This was more of a case of pleading than the prior day’s testimony before the House.

• In an interesting twist to the trade war, TSLA has sued the US government.  They are demanding an end to tariffs on parts they import from China as well as a refund of the tariffs they have paid since 2019 (plus interest).  They may have a point when companies like AAPL got exemptions after appeals directly to the President.

• IBKR signaled that they expect a big account default risk around the election.  In a message to account holders, they said they are raising Margin Requirements to 67.5% (from 50%) and the Maintenance Requirement to 33.75% (from 25%).  They specifically noted the options prices indicate huge volatility around the election, especially the increased probability of a contested election.

On the virus front, in the US, the numbers show we now have 7,140,137 confirmed cases and 206,598 deaths.  The daily new case count was at 41,616 Wednesday, just above the 7-day average of new cases, which is 41,293 per day (about double where they were when easing began).  Deaths came back to typical numbers at 1,112 for Wednesday, well above the average of 751 per day.  CDC Chief Redfield told the Senate that over 90% of Americans are still susceptible to the virus based on a preliminary study by the CDC.  Meanwhile, 22 states reported rising new case counts.  For his part, President Trump told reporters that he has the right to overrule the FDA and their guidelines for approving the use of any vaccine.  As reported in past weeks, the JNJ vaccine just now starting Phase 3 trials could be a game-changer.  Instead of needed 2-3 doses, it requires only 1 dose, and most importantly it does not need to be stored at 50 degrees below zero like the other candidates in Phase 3.  However, the JNJ Phase 3 trial is just starting and they need 60,000 participants (when it has taken 1-2 months for others to find 30,000-40,000).

Globally, the numbers rose to 32,134,999 confirmed cases and 982,698 deaths.  Israel has significantly tightened its second national lockdown as cases continue to rise.  The new measures call for total lockdown (closed non-essential business and government offices as well as all public spaces) for 2 weeks followed by 2 more weeks of “closure.”  In the UK, the government is mulling a plan to accelerate vaccine trials by deliberately exposing participants to the virus (which would greatly decrease the time it takes to reach statistically significant numbers for the trial).  Oddly, the UK also said that at the peak of the first wave they were seeing 100,000 new cases per day, but are now only seeing 10,000/day.  This is odd because they have reported only 412,000 total cases

Overnight, Asian markets were strongly red across the board.  Japan, China, and South Korea all lost 1.5% – 2.5%.  A similar story is shaping up in Europe, but so far the red is much more modest as of mid-day.   At 7:30 am, US futures are pointing to a flat to a slightly lower open.  Only the QQQ is pointing to more than a 0.15% gap down (at -0.40%) with markets possibly waiting on jobless data for a guide.

The major economic news for Thursday is limited to Initial Jobless Claims (8:30 am), August New Home Sales (10 am) and 3 speakers (Fed Chair Powell at 10 am, Tres. Sec. Mnuchin at 10 am, and FOMC member Williams at 2 pm).  However, there are several earnings reports with CAN, DRI, JBL, KMX, and RAD reporting before the open.  Then after the close COST reports.

The major economic news for Wednesday is limited to September PMI (9:45 am), Oil Inventories (10:30 am), and 3 Fed Speakers (Chair Powell testifies again at 10 am, Mester at 9 am, and Quarles at 2 pm).  However, there are major earnings reports with CTAS, GIS, and JKS before the open. Then FUL reports after the close.

Given Wednesday’s heavy selloff, the fact we are near potential short-term support, and the extreme oversold T2122, it is possible we see a rest day today.  However, the bears do smell blood and the high-flying FAANGM stocks that have dragged markets up for months are showing no signs of life.  Be careful of volatility and remember that you do not have to trade every day.  You won’t miss anything.  There will be another train coming into the station tomorrow.  If you do trade, as always, stick to your plans, follow the trend, and don’t chase moves you have missed.  Keep locking-in profits, because it’s the singles and doubles that add up to championships, not the occasional home runs. 

Ed

Swing Trade Ideas for your Consideration and Watchlist: BBBY, SQQQ, SQ, MAS, XRT, URI, NVR. 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.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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