Markets gapped up eight-tenths of a percent before grinding sideways for a few hours.  After a small mid-day rally, the ground sideways again the rest of the day, closing near the highs.  On the day, SPY closed up 1.34%, DIA up 1.18%, and the QQQ up 1.07%.  The VXX fell over 4.5% to 17.56 and T2122 spiked back up deep into the overbought territory at 95.41.   10-year bond yield rose again to 0.908% and Oil (WTI) rose over a percent to $47.54 (the highest since late February).

During the day, House Speaker Pelosi invited her 3 counterpart leaders (House Minority Leader McCarthy, Senate Majority Leader McConnell and Senate Minority Leader Schumer) to a meeting to discuss stimulus and a government funding extension.  The four met just after the close, adjourned and then reconvened at 7:30pm.  This meeting came after she completed a hour-long negotiation call with Treasury Sec. Mnuchin.  McConnell also told reporters Congress would not leave town until a Covid package was complete.  There was no report after the evening session, but the developments have raised hope for a deal.

In a follow-up to a previous story about a new EU Law which can fine tech companies up to 10% of their global revenue if they don’t act as good gatekeeper, FB attacked AAPL overnight in praising the new law.  A FB spokesman went on to say they hoped the new law will keep AAPL in check from harming consumers and developers.  This came after AAPL had previously said it was enabling a privacy feature to allow users to block apps from tracking them across different platforms. (Of course, AAPL will still track users over those platforms.)  AAPL responded that FB’s real problem was that its business model is about invasive tracking of consumers. So, this spat is not as much related to the law as it is over AAPL trying to assert dominance over which tech company controls all the data about user’s lives, habits, and preferences to enable it to sell better marketing to advertisers.  This will eventually become a hot topic in the US as well.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,143,942 confirmed cases and 311,073 deaths.  We are now seeing 7-day averages of 216,733 new cases and 2,528 deaths per day.  MRNA submitted the paperwork for approval of their vaccine Tuesday.  Also during the day, the FDA approved the first over-the-counter rapid home covid-19 test (from an Australian company).  FL reported that a PFE production problem has caused the next two weeks of vaccine shipments to that state to be placed on hold.  NYC Mayor DeBlasio says he expects another city-wide lockdown right after Christmas based on the current trends.

Globally, the numbers rose to 73,938,418 confirmed cases and the confirmed deaths are now at 1,644,775 deaths.  As a reference, the world is averaging about 628,000 new cases and almost 11,000 new deaths per day. In the UK, Health Minister Hancock announced a new mutation of the virus has been found, which is spreading faster than the original variants, especially in specific places like London.  In related news, London was placed under the country’s toughest tier of restrictions as cases spike in the city. In addition, two of the largest British Medical Journals have posted editorials pleading with PM Johnson to not relax restrictions over Christmas as he has promised he will. At the same time, in Northern Ireland, hospitals are beyond full capacity with at least one hospital using parked ambulances to hold dozens of over-flow patients.

Overnight, Asian markets were mostly in the green. Taiwan (+1.68%) was by far the leader among gainers with Hong Kong (+0.97%) and Australia (+0.72%) being more typical.  The only red seen was modest losses in Chinese exchanges.  In Europe, we see a similar picture so far today.  Only Belgium and Finland show any red (modest) as most exchanges are solidly bullish mid-day.  The FTSE (+0.98%) is u, as is the DAX (+1.54%), and the CAC (+0.61%).  As of 7:30 am, US futures are pointing to a modestly bullish open.  The SPY is implying a +0.26% open, the DIA implying a +0.23% open, and the QQQ implying a +0.17% open at this point in the premarket.  

The major economic news for Wednesday includes Nov. Retail Sales (8:30 am), Dec. Mfg. PMI and Dec. Services PMI (9:45 am), Oct. Business Inventories (10 am), Crude Oil Inventories (10:30 am), FOMC Interest Rate Decision, Fed Interest Rate Projections, and FOMC Statement (all at 2 pm), Fed Chair Press Conf. (2:30 pm).  Some financial news outlets are worrying over a possible disappointment by the Fed, saying we may see a lessening of the Doveish tone, which may spook markets. The major earnings reports on the day are limited to TTC before the open and both ABM and LEN after the close.

With a considerable amount of economic data today and hope for more progress on a stimulus deal, the bulls may have the edge, but markets may wait to see what the Fed tone is this afternoon before making any big moves. Just remember that it’s politicians that are behind stimulus news. So, anything that comes out are just as likely to be positioning as they are to be a deal announcement. The only edge a deal has remains time pressure as the lawmakers want to leave town as soon as possible. So, just be careful to not get carried away on market news.

Maintain discipline to your trading rules and focus on your process. As always, respect the trend, support and resistance, and price action. Put those singles and doubles in the bank when the market gives them to you. Don’t swing for the fences on every trade. As they say, Bulls make money and Bears make money, but pigs get slaughtered. So, leave the top and bottom picking to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: PLUG, WFC, NIO, BLNK, CPRI, EYE, CLF, SPWR. 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 up about 0.65% Monday and after a grind sideways for about an hour the large-caps sold off.  However, the QQQ maintained their sideways grind all day long.  At the close, the SPY and DIA printed ugly black candles while the QQQ left a high wick.  On the day the SPY was down 0.47%, the DIA was down 0.63%, and the QQQ gained 0.73%.  The VXX gained 2.3% to 18.42 and T2122 fell sharply back into the mid-range at 51.75.  10-year bond yields rose slightly to 0.895% and Oil (WTI) gained three-quarters of a percent to $46.94 (the highest close since March).

During the day, a bipartisan group from the Representatives proposed a $908 billion stimulus compromise bill in the House.  Interestingly, this bill essentially mirrors the bipartisan proposal made in the Senate a few weeks ago, but which Senate Majority Leader McConnell would not endorse and has said should be replaced by the White House’s late proposal.  The Senate bipartisan group plans to introduce their proposal as 2 bills later Monday.  One includes both the business immunity and $160 billion in aid for state and local governments.  The other includes all other provisions that have been essentially agreed in negotiations.

In Brexit news, there remains no deal with both sides saying they are far apart. All the deadlines for reaching a deal that can be debated in the respective Parliaments and implemented in time have now passed.  Still, the two leaders claim there is still hope with two weeks left until a crash-out of the UK-Europe trade deal.  Related to this, the UK has taken action similar to what President Trump wants in the US.  The British bill will hold websites (specifically social media) liable for what is posted by any of their users.  Fines range up to 10% of global revenue per incident of what the government then says is harmful content.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,942,980 confirmed cases and 308,091 deaths.  We are now seeing 7-day averages of 218,226 new cases and 2,527 deaths per day.  However, vaccinations did begin Monday in a relative handful of hospitals across the country.  The majority of states have received at least some doses of vaccine in a herculean logistics effort.  Sec. Azar (HHS) said that if vaccines from MRNA, AZN, and JNJ are all approved quickly, it may be possible for each American who actually wants one to get their first dose by the end of March.  This comes as GOOG pushed back the company’s return to offices until at least September. 

Globally, the numbers rose to 73,292,455 confirmed cases and the confirmed deaths are now at 1,630,581 deaths.  As a reference, the world is averaging about 627,000 new cases and almost 11,000 new deaths per day. In the UK, Health Minister Hancock announced a new mutation of the virus has been found, which is spreading faster than the original variants, especially in specific places like London.  In related news, London was placed under the country’s toughest tier of restrictions as cases spike in the city. In addition, two of the largest British Medical Journals have posted editorials pleading with PM Johnson to not relax restrictions over Christmas as he has promised he will. In Germany, the Health Minister urges the EU to follow the UK and US leads and approve a vaccine before Christmas.

Overnight, Asian markets were mixed and flatish, but leaned to the modestly red side.  Hong Kong (-0.69%) and Australia (-0.43%) paced the losing exchanges.  On the other side, Malaysia (+0.68%) and Shenzhen (+0.39%) led the gainers.  However, most Asian exchanges were moderately down on the day.  Meanwhile, in Europe, we are seeing a mixed but more active market.  The FTSE (-0.35%) is down with the CAC (+0.28%) modestly higher and the DAX (+0.71) bullish so far. However, the biggest moves are seen to the downside by smaller exchanges (Portugal -0.95% and Denmark -0.93%) so far today.  As of 7:30 am, US futures are pointing to a bullish open.  The SPY is implying a +0.71% open, the DIA implying a +0.63% open, and the QQQ implying a +0.60% open at this point in the premarket.  

The major economic news for Tuesday is limited to Import/Export Price Indices and NY Empire State Mfg. Index (both at 8:30 am) and Nov. Industrial Production (9:15 am).  There are no major earnings reports on the day.

With little economic and no major earnings data, the hope surrounding the beginning of vaccinations and hope for stimulus are likely to give the bulls an edge at the open. However, remember Monday, when a gap higher was met with a selloff by the end of the day. Also, keep in mind that politicians are involved in the stimulus and government funding extension negotiations. This just means that posturing and who knows what kind of news could pop-up at any time until the bills are signed. Also, remember we remain near all-time highs.  So, just be careful to not get carried away on either side of the market.

As always, respect the trend, support and resistance, and price action. Stay disciplined to your trading rules and trust your process. Keep taking those singles and doubles that the market offers you. Don’t try to wring every penny out of every last share. It’s better to sell into strength and book the sure profit. Leave “top picking” to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: EYE, PZZA, DKNG, AMBA, KO, FLEX, PENN, PTON. 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 half a percent Friday and then and after some grinding climbed back to more or less flat for the day.  The SPY fell 0.12%, the DIA roe 0.13%, and the QQQ fell 0.22%.  VXX gained the better part of 4% to 18.00 and T2122 was flat, but remains in overbought territory at 84.62.  10-year bond yields fell a bit to 0.896% and Oil (WTI) was also flat at $46.56.

Late night on Friday, the FDA approved the PFE-BTNX vaccine for emergency use.  This made it legal to ship the vaccine and shipment began on Sunday.  The CDC also approved the administration of the vaccine on that emergency basis on Sunday, which makes it legal to give the vaccine.  So, it is expected that the first vaccinations will begin at up to 145 sites across the nation Monday (there will eventually be up to 636 sites capable of storing and administering the vaccine).  The struggle now will be to gain wide public acceptance of the vaccine and finding ways to get 330 million Americans through the 636 sites. The most recent poll finds that 50% of the US public say they will not take the vaccine. Meanwhile, most epidemiologists say we need a 75%-80% vaccination rate in order to get the herd immunity effect that would allow life and the economy to return to unrestricted levels.

TSLA announced over the weekend that it is shutting down production lines for the S and X models for 18 days.  Employees will be paid for one week of the shutdown and the company urged the laid-off workers to either apply for fill-in shifts on other model production lines or to volunteer to work for other production lines during the remainder of their unpaid leave.  Analysts believe this move is a signal that demand is lower and sagging for the older models of their electric cars.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,737,267 confirmed cases and 306,459 deaths.  Friday saw another day of big spike in the US of almost 250,000 new cases.  This brings the 7-day average of new cases to 217,600 while deaths are averaging deaths rose to 2,519/day.  The last week focused on the PFE-BTNX vaccine.  This week it is the MRNA vaccine that will go through the same process of recommendation, approval, and then shipping.  The hope is that the first MRNA vaccinations could happen as soon as Dec. 21 if all goes as planned.

Globally, the numbers rose to 72,737,709 confirmed cases and the confirmed deaths are now at 1,620,676 deaths.  As a reference, the world is averaging about 627,000 new cases and almost 11,000 new deaths per day.  In Germany, the Chancellor announced the country would go on national lockdown over Christmas to stem the surge.  This came as the German Health Minister urged fast approval of the BTNX-PFE vaccine, based on the fact the UK and the US had already reviewed and approved the medicine. Meanwhile, in Asia, South Korean schools are closing again and their healthcare system is under strain (using shipping containers as field hospitals at this point).  In Japan, their own Covid-19 task force is meeting to consider stricter countermeasures as cases surge in the 4 largest cities.  In Africa, the Prime Minister of a tiny country (Eswatini) became the first head of state to die from Covid at age 52. 

Overnight, Asian markets were mixed but leaned to the green side.  Singapore (+1.29%), Indonesia (+1.25%), and Shenzhen (+1.07%) led the gainers.  Hong Kong (-0.44%) and Thailand (-0.44%) paced the losing exchanges.  Meanwhile, in Europe, we are very close to green across the board so far this morning.  The DAX (+1.28%), CAC (+1.11%), and FTSE (+0.42%) are typical of the continent with only a flat Switzerland (-0.04%) stopping a green sweep as of mid-day.  As of 7:30 am, US futures are pointing to a gap up to start the week.  The SPY is implying a +0.75% open, the DIA implying a +0.82% open, and the QQQ implying a +0.63% open at this point in the premarket.  

There is no major economic news for Monday.  There are also no major earnings reports on the day.

With no economic or earnings data, the hope surrounding PFE-BTNX vaccinations and likely MRNA vaccine approval are likely to lead to optimism to start the week.  Resumption of stimulus (and government funding extension) negotiations will also play a big role in front of the Congressional self-imposed deadline of Friday.  (They want to break and head home for the holidays.)  So, with that additional impetus, expect a deal on that front this week as well.   All-in-all, the bulls have a lot going for them this week.  However, we remain near all-time highs.  So, be careful.

As always, respect the trend, support and resistance, and price action. Stay disciplined to your trading rules and trust your process. Keep taking those singles and doubles that the market offers you. Don’t try to wring every penny out of every last share. It’s better to sell into strength and book the sure profit. Leave “top picking” to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: T, NUAN, NAT, CHWY, MTCH, KO, HON. CAT, BRMN, TPX, PINS, OMER, ZEN. 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 half a percent Thursday on a much higher than expected increase in Initial Jobless Claims (853,000 vs 730,000 expected) to a 3-month high.  However, a recovery came quickly and the rest of the day was a range-bound gyration back and forth.  At the end of the day, all 3 major indices printed indecisive candles (Doji, Spinning Top, and Large-wick candles).  The SPY was flat at -0.03%, the DIA flat at -0.11% and the QQQ gained 0.40%.  The VXX gained a percent to 17.39 and T2122 (4-week New High/Low Ratio) fell, but remains in overbought territory at 84.43.  10-year bond yields fall on stalled stimulus talks to 0.908% and Oil (WTI) gained 3% to $46.89/barrel.

Once again, the government failed to reach a deal on more stimulus as the market has been expecting.  Senate Majority Leader McConnell outright rejected the bipartisan proposal which had been the basis of negotiations the last couple of weeks, instead saying that plan should be thrown out and new discussions begun around the last-minute plan from the Administration.  (Business liability waivers is McConnell’s pet project and that seems to be the snag.) The Democrats felt he was just grandstanding and the change of starting point would be a waste of time. So, the House adjourned for the week (having already passed its one-week stopgap spending bill).  This means there is little likelihood of any progress in talks prior to the December 18 end of funding to keep the government open.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 16,042,537 confirmed cases and 299,703 deaths.  Thursday saw another day of 217,779 new cases and another grim record 2,974 new deaths (about one-third of world totals and we have only about 4% of the population).  This brings the 7-day average of new cases to 212,969 while deaths are averaging deaths rose to 2,407/day.  The FDA’s Vaccine Advisory Committee held a day-long public Zoom call to discuss, explain and then vote on recommending the vaccine. As expected, the vote was to recommend the PFE-BTNX be given approval for emergency use.  This is not a final approval vote, but the full FDA is expected take the committee’s recommendation and quickly approve the PFE-BTNX vaccine.

Globally, the numbers rose to 70,852,192 confirmed cases and the confirmed deaths are now at 1,591,300 deaths.  As a reference, the world is averaging about 625,000 new cases and almost 11,000 new deaths per day.  In Europe, France has extended its lockdown until January 8^th, though they are making an exception of Christmas day.  Germany also reported another record number of cases and deaths Friday as their Economic Minister told reporters the country must act now to shutdown the spread before it wrecks the economy.  Russia also reported a record increase in deaths, even though they are a week into mass vaccinations.  AZN announced it will collaborate with the makers of the Russian vaccine for trials and GSK announced their own vaccine will be delayed until late 2021.

Overnight, Asian markets were mixed again.  Malaysia (+1.82%) was a big outlier to the green side, with South Korea (+0.86%) as most green moves were very modest.  On the Downside Shenzhen (-1.31%) and Shanghai (-0.77%) were the big losers.  However, in Europe, markets are red across the board after the EU reached agreement on a $2.1 trillion Covid relief package.  Among the 3 major bourses, FTSE is down 0.99%, DAX down 1.72%, and CAC down 1.04% so far today.  As of 7:30 am, US futures are gap down to start the day.  The SPY is implying a -0.72% open, the DIA implying a -0.63% open, and the QQQ implying a -0.75% open at this point in the premarket.  

The major economic news for Friday is limited to Nov. PPI (8:30 am), Michigan Consumer Sentiment (10 am) and a Fed Speaker (Quarles at 12:40 pm).  There are on major earnings reports on the day.

Once again, the virus, vaccine news, and more delays in stimulus are top of mind in the market.  More bad news related to the Brexit deal has UK PM Johnson telling his country’s businesses and people to prepare for an “Australian-style” crash out of EU Trade. This while we sit near the all-time highs. So, continue to be careful and remember the market is overbought.

As always, respect support and resistance, the trend, and price action. Stay true to your trading rules and trust your process. Keep taking the singles and doubles the market offers you. Don’t try to sell every last share at the very top penny before the turn. Leave “top picking” to the traders who need their ego stroked more than they need to make money.

Ed

Swing Trade Ideas for your consideration and watchlist: STNG, MGM, HAL, JETS, UBER, NAT, ETSY. 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 essentially opened flat Wednesday and then sold off until 2 pm, possibly on discouraging news on the stimulus front.  From that point, all 3 major indices ground sideways the rest of the day.  This left large black candles that created a Bearish Engulfing signal in the SPY and a Dark Cloud Cover in the DIA.  On the day, the SPY fell 0.92%, the DIA fell 0.46%, and the QQQ fell 2.26%.  The VXX rose 3.68% to 17.20 and T2122 fell 5% but remains in overbought territory at 89.50.  10-year bond yields rose strongly again to 0.939% and Oil (WTI) was flat at $45.62/barrel.

As mentioned, Wednesday saw more bad news related to stimulus, as the major players found another reason to stall the deal.  This comes even though both sides agree on the top line numbers and most of the provisions.  Rather than continue to work on wording around the bipartisan proposal (the basis of the last couple of weeks), Senate Majority Leader McConnell criticized House Speaker Pelosi for not embracing the new Administration offer.  At the same time, Pelosi and Senate Minority Leader Schumer criticized the 11th-hour proposal from Treasury Sec. Mnuchin (who had been absent since before the election) and said negotiations should continue based on the bipartisan proposal.  So, as always, the important thing in Washington is who gets the credit, who loses face, and who can be blamed in the next election much more than it is about the need or available resources

In other federal news, the House has approved a 1-week stop-gap spending bill to avoid a government shutdown.  The extra week is intended to give more time to reach a longer-term spending agreement and the stimulus deal.  The idea is that a desire to leave for the holidays and a government shutdown right before Christmas will be enough pressure on lawmakers to get a deal done.  And finally, the Federal Government and dozens of State Attorneys General sued FB for anticompetitive behavior.  The suit seeks to force FB to divest Instagram and WhatsApp.

Related to the virus itself, US infections continue to rage in the US.  The totals have risen to 15,882,734 confirmed cases and 296,745 deaths.  Wednesday saw another day of 226,762 new cases and another grim record of 3,260 new deaths (about one-third of world totals and we have only about 4% of the population).  This brings the 7-day average of new cases is at 213,361 while average deaths rose to 2,400/day.  The White House Task Force leader Dr. Birx told CNBC overnight that people need to adjust their expectations and that vaccines will not significantly reduce either hospitalizations or deaths until at least late spring.  Until then, only behavior changes can reduce those two numbers.  This came as Dr. Fauci (NIH) again pleaded for the public to avoid gatherings with people outside their immediate family this holiday season.

Globally, the numbers rose to 69,369,386 confirmed cases and the confirmed deaths are now at 1,578,356 deaths.  As a reference, the world is averaging about 625,000 new cases and almost 11,000 new deaths per day.  In potentially concerning news, 2 UK Health Workers have suffered severer allergic reactions after their vaccination jab.  This has caused an immediate change in recommendations for who should and who should not be vaccinated.  For the market, the main gist is that this may cause even more public concern and resistance to vaccination, therefore prolonging the period it will take to reach herd immunity.   Beyond that, hospital beds are in short supply all around the world.  For example, South Korea has begun using cots in shipping containers to supplement its shortage as they are now down to 3% of bed capacity still available for new patients.

Overnight, Asian markets were mixed but leaned to the downside.  Taiwan (-0.98%) saw the worst action, but there was little green elsewhere in the region.  Malaysia (+0.48%) was the best bull outlier example with most Asian exchanges moderately red.  In Europe, markets are also mixed but leaning more heavily to the green side.  The 3 major bourses are typical with the FTSE up 0.78%, the DAX flat at +0.09%, and the CAC up 0.38%.  As of 7:30 am, US futures are pointing to a flat and mixed open.  The SPY is implying -0.01%, the DIA implying -0.13%, and the QQQ a slight drop at -0.33% at this point in the premarket.

The virus, vaccine hope (the PFE-BTNX approval decision is expected any day), and fear over more stimulus delays are fighting for the emotions of the market.  There was also another Brexit Trade Deal failure overnight with the year-end deadline fast approaching. Sitting near the all-time highs and having shown some semblance of resistance here, it feels like the market wants to be bullish, but is scared and waiting for another reason to make the next move.  So, be careful and remember the market is overbought.

Respect support and resistance, the trend, and price action. Stay true to your trading rules and trust your process. Keep booking those singles and doubles. It’s the profits you take that pay the bills, not bragging rights. So, leave “picking the very top” to the traders more interested in stroking their ego than making money.

Ed

Swing Trade Ideas for your consideration and watchlist: OMI, F, CAT, ZM, NVDA, SLM, EVRI. 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

On Monday the large-caps gave us a small gap down, followed by an indecisive, Doji type candle day.  The DIA was a Doji Bearish Harami.  The QQQ gave us a small gap up followed by more bullish follow-through. On the day, The QQQ gained 0.57% to close at yet another all-time high.  The SPY lost 0.21% and DIA lost 0.49%.  The VXX gained about half a percent to 17.21 and T2122 remains deep in overbought territory at 94.84.  10-year bond yields fell to 0.928% and Oil (WTI) fell a little over a percent to $45.63/barrel.  In an interesting sidebar, Fresh Water (H2O) began trading as a commodity Monday.

Monday was a bad day and night for stimulus.  Senate Majority Leader McConnell refused to endorse the bipartisan compromise bill and it appears Congress will need to pass a one-week spending extension on Wednesday to keep the federal government open until December 18.  This is being done because the two sides of the stimulus negotiation have agreed on the high-level numbers, but they are not agreed on the wording of the specifics of spending.  So, in order to roll this into an omnibus funding bill, they need to kick the can down the road another week. 

In corporate news, TSLA will offer another secondary stock sale to raise $5 billion.  This is the second time it has sold more stock in 3 months and may be an indication it is trying to squeeze every penny out of a very high market price for the stock.  Meanwhile, GS has agreed to buy out its Chinese partner (and has applied to Chinese Regulators for the right to have 100% ownership of a securities entity in mainland China).  This followed JPM taking 71% ownership in its own Chinese securities joint venture and CS announcing it would like to take 100% ownership of its mainland securities partnership.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 15,370,339 confirmed cases and 290,474 deaths.  Monday saw another record 200,000+ new cases and 1,539 new deaths.  This brings the 7-day average of new cases is at 206,259 while average deaths rose to 2,300/day.  This comes as Dr. Fauci (NIH) told CBS reporters that the “full brunt of Thanksgiving gatherings on the Covid surge” has not hit yet…but it’s coming soon. This came as Fauci and several other health experts were urging the public to cancel or dramatically change holiday gathering plans.

Globally, the numbers rose to 68,055,468 confirmed cases and the confirmed deaths are now at 1,553,155 deaths.  The big global news was that the UK has begun giving vaccinations using the PFE-BTNX vaccine.  Due to the extreme cold needed and logistics, at least at first, they are focusing on hospital workers and priority patients (like the elderly) who are already located at a major hospital for appointments. However, across the channel, Germany reached a new record high infection rate.  In Asia, Hong Kong increased restrictions on social distancing yet again while South Korea and Japan have called out their militaries to assist in medical staffing and contact tracing.

Overnight, Asian markets were mixed yet again.  Thailand (+2.01%) was an outlier as the gains were generally modest.  The same is true of South Korea (-1.62%) being abnormal while most losses were quite modest.  In Europe, markets are leaning more heavily to the downside so far today.  Only two minor markets are modestly green, but the 3 major bourses are typical with the FTSE down 0.48%, the DAX down 0.41%, and the CAC down 0.82%.  As of 7:30 am, US futures are pointing to a modest gap down.  The SPY (-0.56%), DIA (-0.47%), and QQQ (-0.39%) are all implying lower opens at this point in the premarket.

The major economic news is very limited for Tuesday. This includes Q3 Nonfarm Productivity and Q3 Unit Labor Costs (both at 8:30 am).  The major earnings releases are also limited and include AZO, GIII, and THO before the open.  Then after the close, CHWY and GME report.

Asia and Europe seem to be leading us lower on Tuesday, perhaps on at least a delay in any US stimulus or on the bad virus news from around the world. With limited economic news or earnings to change that lead, it looks like we may have a lower open. However, remember that hope springs eternal among bulls up near the all-time highs. The point being, it does not pay to fight the trend until it is broken. Just be careful.

Respect support and resistance, the trend, and price action. Remain true to your trading rules and trust your process. Keep booking those singles and doubles. It’s the profits you take that pay the bills. So leave “picking the very top” to the traders more interested in stroking their ego than making money.

Ed

Swing Trade Ideas for your consideration and watchlist: NAT, PINS, AAPL, XLC, COOP, AG, SOLO, BLNK, EGO. 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