Friday was a volatile day, opening with a half-to-three-quarters of a percent gap higher, riding the roller-coaster within a 2-3% range and closing with indecisive black candles.  On the day, DIA was up 0.47%, SPY flat at up 0.05%, and QQQ down 0.69%.  The dreaded-h pattern remains in place for all three indices with potential support at the breakdown level.  Oddly, the VXX was down hard (almost 6%) to 25.52 and T2122 remains well into the oversold area at 9.03.  10-year bond yields fell to 0.669% and Oil (WTI) was up slightly to $37.33/barrel.

On Sunday it was announced GILD will buy IMMU for $21 billion in order to add the IMMU breast-cancer treatments to their catalog.  In other takeover news, overnight NVDA bought British chipmaker ARM (from Japan’s Softbank).  The co-founder of ARM immediately attacked the deal as a disaster because inevitably NVDA would move the company to the US.  The deal is most noteworthy because AAPL recently announced they are dropping the INTC architecture in favor of the ARM architecture (rebranded as “Apple Silicon” as if AAPL had somehow designed or built the chips).

In trade war news, ORCL seems to be the winner in the TikTok forced-buyout deal as Byte Dance has rejected the joint MSFT / WMT bid.  However, over the weekend the Chinese government, which must approve the sale, said the TikTok algorithm would not be part of any sale and no official deal announcement has yet been made.  Still, this should be looked on favorably by US administration officials given ties to both the CEO and Chairman of ORCL.  If announced this week, the deal would beat the White House-imposed September 20 deal deadline.

On the virus front, in the US, the numbers show we now have 6,710,031 confirmed cases and 198,533 deaths.  As of Sunday, cases are growing by more than 5% on the weekly average in only 11 states, which is a big improvement over a couple weeks ago.  However, troublingly over the weekend is was reported that political appointees at HHS have been given the ability to review and demand changes to case and mortality data from the CDC.  In brighter news, on Sunday, PFE said they may have up to hundreds of thousands of doses (2 doses required per patient) of their vaccine by year-end…if it passes Phase 3 trials and if it is immediately approved by the FDA for emergency use.  Of course, in the same interview, PFE’s CEO also said “there was a good chance they would know IF their vaccine works, and how well, by the end of October.  Until then, all that can be done is to plan using the best-case scenario.”

Globally, the numbers rose to 29,216,069 confirmed cases, and 929,056 deaths.  On Saturday AZN resumed its Phase 3 trial (oddly just days after saying it would resume by year-end). Meanwhile, the case surge in France continues as their Health Minister said there was a “clear deterioration of the virus situation (especially hospitalizations),” although there was a slight dip in new cases on Sunday.  In the middle-east, Israel has approved a second general lockdown of their country.  And in Asia, South Korea is stockpiling PPE for Winter, while China announced there was no need to vaccinate the country’s entire population at this stage, (instead just focusing on frontline workers and other select groups).

Overnight, Asian markets were mixed but generally positive with Indonesia (+2.89%) far outpacing everyone, followed by South Korea (+1.3%) and Shenzhen (+1.15%).  All other Asian markets were either modest winners of modest losers.  In Europe, markets are also mixed but split more evenly at this point in their day.  The big 3 European indices are mixed with 2 modest losers and the CAC up 0.21% as of now.  In the US, at 7:30 am, the futures are pointing to a strong gap higher at the open.  The DIA is the laggard, showing an implied gap higher of 0.87%, but SPY is looking at +1.21% and QQQ at + 1.64% as of now.

There is no major economic news scheduled for Monday release.  And the only major earnings reports on the day is LEN after the close.

After a bull trap on Thursday and a less than stellar Friday, markets look to be charging into the new week.   The trend remains to the downside, but the 50sma area may have given support for all 3 major indices.  It certainly looks as though we will gap up through the downtrend. However, remember this is not the same thing as starting an uptrend.  In recent months it has been the mega-tech FAANG names that have led markets higher.  It is possible the TikTok and/or NVDA-ARM deal is helping them find their legs again.  Regardless, gaps are gifts, but otherwise, nothing we can take advantage of…and they are a signal of more volatility.

So, regardless of the open, stick with your plan.  Follow the trend and don’t chase moves you have missed…there will be another one soon. Stick to your rules and work to consistently lock-in profits and reduce risk. 

Ed

Trade ideas for Monday: XYL, IP, SYF, NIO, LYV, JCI, LYFT, DOW, FCX. 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

Stocks gapped more than a percent higher (2% in the QQQ) on Wednesday.  They then followed-through in the morning before grinding sideways until late-day selling closed all 3 major indices well off their highs.  On the day QQQ gained 2.94%, SPY gained 1.97%, and DIA gained 1.61%.  The VXX fell hard to 26.83 and T2122 climbed out of the oversold range up to 31.21.  10-year bond yields rose a bit to 0.698% and Oil (WTI) rose nearly 3% to $37.78/barrel.

CNBC reported that several economists have told them that $3 trillion of additional fiscal stimulus is needed to support the economy.  The economist interviewed said those funds should be used to incentivize remote working and help the unemployed.  At the same time in Congress, the Senate Republicans plan to vote on just $500 billion (Democrats say it will not pass) while the talks between the Administration and House Speaker Pelosi’s team are still stalled with the GOP side at $1 trillion and the Democrat side at $2 billion.

In the UK, PM Johnson is feeling great pressure after admitting there will very likely be no trade deal before the year end Brexit deadline.  Yesterday he proposed UK legislation that would break the withdrawal agreement (and other international trade agreements), by taking control over Irish, Scottish and Welsh foreign trade.  This was probably an attempt to use Ireland/Northern Ireland as negotiation leverage.  However, the act does jeopardize the UK-US trade agreement as well as the status of many global companies at risk as well.

On the virus front, in the US, the numbers show we now have 6,549,771 confirmed cases and 195,245 deaths.  The 7-day average of new cases has fallen to 37,248.  Meanwhile, deaths rose sharply to 1,209, well above the 7-day average of 753.  The Federal government has decided to drop testing for incoming International travelers.  

Globally, the numbers rose to 28,056,120 confirmed cases and 908,651 deaths.  In a surprising story, AZN says it should know by year-end if its vaccine trial can restart. This is potentially a much longer delay than markets had anticipated.  The Intl. Air Cargo Assn. reported overnight that even ignoring the temperature demands I reported yesterday, the world will still need 8,000 cargo jets the size of a BA 747 to distribute even a single dose of a vaccine worldwide.  (Of course, all the current vaccine candidates require 2 doses and it is undetermined how long that set of vaccinations would provide protection.)  In Europe cases continue to climb as France says they cannot rule out the need for more local lockdowns (although they will resist another national lockdown).  Meanwhile in Asia, India reported more than 95,000 new cases on the day and places like Indonesia have put the brakes on easing.

Overnight, Asian markets were mixed with Shenzhen down over 2% while Japan and South Korea were up about 0.88%.  In Europe, so far today markets are mostly in the red, led to the downside by the FTSE after the UK’s Trade news.  In the US, at 7:30 am, the futures are pointing modestly to the downside with large-caps looking toward a half-percent gap down and the QQQ a gap 0.20% open lower.

The only major economic news for Thursday is Aug. PPI and Weekly Jobless Claims (both at 8:30 am).  The only major earnings reports on the day come after the close when AMRK, CHWY, and ORCL report.

The bulls had a nice day Wednesday.  However, markets closed well off their highs and so far this week, all we are showing is a lower-high. So be careful getting to long on the “buy the dip” sentiment that has surrounded markets for some time.  We are swing traders, not long-term holders and currently the short-term trend is still down.  So, follow the trend, but don’t chase moves you have missed.  Stick with your rules and work to consistently lock-in profits and reduce risk. 

Ed

Trade ideas for Thursday: PENN, OTRK, GOLD, ETSY, DDOG, W, OSTK, PDD, GLW. 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 a brutal day in the markets, stocks gapped lower Tuesday, roller-coastered in a 1% range and then sold off into the close.  All 3 major indices closed near the lows with the QQQ sitting on its 50sma and both large-caps not far above their own.  On the day QQQ lost 4.81%, SPY lost 2.73%, and DIA lost 2.25%.  Oddly, the VXX also lost ground, closing at 28.28 and T2122 dropped hard to 6.03 (deep into the oversold territory).  10-year bond yields fell significantly to 0.68% and Oil (WTI) lost over 7% to close at $36.87/barrel.

In trading news, there has been much market talk recently about the impact of “Robinhood traders.”  Over the weekend Bloomberg reported a clue found in perplexing and worrisome options activity.  It appears (but isn’t known for sure) that retail (stuck at home) momentum traders have been piling into options causing over-sized moves…particularly in the high-flying high-tech names.  This inference is drawn from large volumes coming from small contract lot trades.  For example, CRM call open interest more than doubled on the day after its earnings release.  Another example is AMZN whose average daily call volume has spiked to the highest since the late 1990s.  The same is true across all the major FAANG names.  Finally, retail brokerages like AMTD, ETFC, SCHW, and IBKR have all reported record numbers of transactions.  The implication is that this may be a virus effect, but can also be a signal of irrational exuberance that has proceeded previous crashes.

Last night, AZN has paused its phase 3 vaccine trial in the UK after an unexpected and unexplained illness in a test subject.  Just to group the vaccine stories, PFE has been leaking that they believe their vaccine candidate may be ready to submit for emergency approval (prior to testing completion) in the US by late October.  However, that does not mean it would then be available widely or perhaps at all for quite a while beyond that point.

Last Weekend, articles in the Wall Street Journal and Barron’s said that freezers are the new hot commodity in the virus fight.  It seems the 2 vaccines furthest into Phase 3 testing in the US (from PFE and MRNA) both have strict storage needs.  One of them must be kept below -50 Fahrenheit (PFE) and the other must be kept at -5 Fahrenheit (MRNA).  Obviously, these temperature demands require high-end freezers and will reduce the amount that can be stored, the locations where they can be stored (freezer capacities), and even how they can be transported.  Given all these logistical hurdles, some experts were claiming that even best case there would be nothing beyond a paper rollout of these vaccines (even if everything goes perfectly in testing) until at least late Q1 2021.

However, it is worth noting that later vaccine candidates (like those from AZN and JNJ) are expected to have far less stringent temperature requirements.  As far as the vaccine Russia recently released, it can be freeze-dried.  This means it can be shipped and stored at room temperatures.  However, immunology experts say this also is an indication that the Russian vaccine is likely to be less effective.  (They guessed it might be 40% or less effective at producing antibodies with an even lower percent of users developing any significant immunity.)  Still, it’s available now and can be shipped/stored easily.)

On the virus front, in the US, the numbers show we now have 6,514,376 confirmed cases and 193,536 deaths.  The 7-day average of new cases has fallen to 38,101.  Meanwhile, average new deaths has also fallen to 737.  San Diego State and West Virginia are the most recent colleges to move to virtual classes only as 400 cases were found at the CA school, University of Tennessee announced 600 cases (especially among fraternities) and West Virginia University had 377 cases before moving to virtual.  On the bright side, Iowa has resumed athletic practices presumably in anticipation of a positive revote after political pressure on the B1G to restart fall sports seasons.

Overnight, Asian markets were red across the board as traders followed the US lead.  Shenzhen took the biggest hit (-3.22%) but losses were widespread with Japan, Shanghai, Korea and others all losing more than a percent.  In Europe, so far today markets are in the exact opposite is true.  There is green across the board with the big 3 bourses up strongly.  FTSE is up 0.76%, DAX up 0.86%, and a CAC up 0.38%. In the US, at 7:30 am, the futures are pointing to a gap higher (bull trap?) that includes big divergence.  The QQQ is implying an open up 1.30%.  Meanwhile, the SPY is looking toward a 0.50% gap up and the DIA just a 0.25% gap higher.

The only major economic news for Wednesday is July JOLTS (10 am) and Crude Oil Inventories (10:30 am).  Major earnings reports on the day include AEO, HDS, and NAV before the open.  After the close GME and RH report.

Volatility reigns as a much-needed correction has or is taking place. Remember that you do not need to trade every day to be successful. So pick your spots. That said, as always, follow the trend that fits with your trading horizon, stick to your rules, and always lock-in those profits as you go.

Ed

Rick is out with his son and new grandbaby. So, no new trade ideas for Wednesday. 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 and for the first time in months, the bears roared all day. This gave us the worst session since early June.  However, despite the ugly black candles, all three major indices did close up off the lows.  On the day, QQQ was down 5.07%, SPY was down 3.44%, and DIA was down 2.70%.  The VXX was up dramatically to 31.71 and T2122 dropped dramatically back to 16.67 (into the oversold territory).  10-year bond yields fell to 0.636% as money bid-up the safety trade and Oil (WTI) was off a bit to $41.28/barrel.

During the day chipmakers took a particular beating.  This came after news that China is implementing a broad range of policies aimed to develop a Chinese semiconductor industry.  While such an effort has been underway for some time, Chinese chips have always been decades behind their western counterparts. However, recently China made a bigger than expected step, significantly closing the gap with Western semiconductor performance. This seems to have given them the confidence to go all-in on a so-called third generation of chips aimed at being the equal of NVDA, AMD INTC, AVGO, and QCOM products by 2025.  All those western chip stocks were down hard on the day, though it is impossible to tell what portion of their loss was due to the overall market and how much was due to this news. It might be interesting to note that all western companies actually use TSM (in Taiwan) and Samsung (in Korea) to manufacturer their chips.

On the virus front, in the US, the numbers show we now have 6,335,653 confirmed cases and 191,060 deaths.  New cases rose back to about 3,000 above the 7-day average of 42,000.  Meanwhile deaths were also a couple hundred above the average at 1,094.  JNJ reported that one of their potential vaccine candidates prevented severe illness in a small group of hamsters, but did cause side effects such as weight loss.  This is the same candidate JNJ will begin a Phase 3 human testing program on later this month.

Globally, the numbers rose to 26,502,185 confirmed cases and 873,803 deaths.  The results of the Russian Sputnik-V Phase 1 and Phase 2 trials were published in the medical journal The Lancet today.  The results of the tests on 38 healthy subjects showed no known side-effects and produced some level of antibodies in all subjects.  Russia has faced criticism for distributing the vaccine well before the Phase 3 trials are complete, but that is exactly the plan that the US is now discussing.  Meanwhile, for the second consecutive day, India has reported over 83,000 new cases. 

Overnight, Asian markets were red across the board as traders followed the US lead.  However, it is worth noting that the Asian losses were more in the 1% range. In Europe markets are mixed with modest moves in either direction.  The FTSE and CAC are up 0.33% while the DAX is down 0.36%.  This mix is typical across remaining European bourses.  In the US, at 7:30 am, the futures are pointing to a continued bloodbath in the NASDAQ with an open down of 1.3%, but the SPY is implying a flat open and the DIA an open higher of 0.34% at this point.  It could be that markets still feel the need to punish Robinhood tech investors more, but large-cap investors are waiting on morning data before deciding a course.   

The major economic news for Friday includes August Avg. Hourly Earnings, August Non-farm Payrolls, August Unemployment Rate (all at 8:30 am).  There are no earnings reports on Friday. 

The selloff Thursday was real, but frankly, was an overdue lesson for the late money flooding into markets lately and may have more room to run.  Despite the bad day, you would be hard-pressed to say markets had truly started a downtrend or done much technical damage yet.  So, a little perspective is in order.

With that said, we are heading into a long weekend, a lot of the big money has already checked out for a holiday and there is some major Payroll data this morning.  This all just says we are likely to see more volatility, may see some follow-through, and even if we do, it’s not the end of the world.

Lighten-up in front of a long politics-laden weekend or at least hedge your positions to an appropriate level. Don’t forget to take a paycheck…those barbeque burgers and brats aren’t going to pay for themselves. However, as always, follow the trend for your trading timeframe, stick to your rules, and always lock-in those profits as you go. Have a great long weekend.

Ed

No new trade ideas for Friday. Enjoy your long weekend. 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

Wall street ignored surprisingly low ADP payroll data as the bulls gapped markets higher on Wednesday.  The large-caps saw the bulls follow-through on the gap and run hard all day.  Meanwhile, the QQQ sold off hard all morning (after the gap), but then also rebounded hard all afternoon.  On the day, the DIA was up 1.54%, the SPY up 1.45%, and the QQQ up 0.95%.  Once again the SPY and QQQ ended at all-time high closes and the DIA is now tantalizingly close as well. VXX also gained to 27.94 and T2122 is back just outside the overbought territory at 79.45.  10-year bond yields were down sharply to 0.648% and Oil (WTI) also fell nearly 3% to $41.58/barrel.

The non-partisan Congressional Budget Office reports that the federal budget deficit is larger than the economy for the first time since World War II.  The deficit is projected to be $3.3 trillion.  This comes as the Fed and Treasury say much more stimulus is urgently needed and the two parties are split on how much to give (Democrats at $2.2 trillion, Republicans at $1.1 trillion and some of GOP wanting just $500 billion and then to argue about the rest later).

UAL followed up its threat to lay off 3,200 pilots from last week. Now they announced 16,000 jobs will be cut next month. This came on top of AAL saying they would cut 19,000 jobs as soon as government aid ends. The industry says they need another $25 billion in aid to avoid the cuts and hold the industry together to March. However, analysts also say travel may not recover for multiple years. So, this may be just delaying the cuts.

On the virus front, in the US, the numbers show we now have 6,291,032 confirmed cases and 189,991 deaths.  New cases are back to the elevated flattened curve average of 42,000, but deaths remain above the 7-day average at 1,090.  During the Day Wednesday, Dr. Fauci (NIH) told Congress that the daily new case number is unacceptably high going into Labor Day weekend and the pled with the public not to behave carelessly as all too many did on Memorial Day and July 4^th, which led to the summer case spike.

Globally, the numbers rose to 26,209,390 confirmed cases and 868,034 deaths.  The UK announced $665 million for a rapid-testing program.  This comes after scientists told the UK Government that due to testing delays, the scientists estimate the UK is only identifying about 7% of total cases entering the country in travelers.  In India, the spread continues to rage as they reported the largest single-day new case count that has been seen anywhere (83,337).  However, on the bright side, South Korea saw the lowest number of new cases in the last two weeks today.

Overnight, Asian markets were mixed, with Japan and South Korea higher while China and Hong Kong paced the losers for the day.  However, Europe is leaning heavily to the bullish side at this point.  The CAC is up 1.82%, the DAX up 1.23% and the FTSE up 0.66% at mid-day.  In the US, at 7:30 am, the futures are pointing to a red open with the DIA flat, SPY pointing to a modest -0.43% open, and QQQ looking at a gap down of 1.05% to start the day.  

The major economic news for Thursday includes Imports/Exports, Trade Balance, Weekly Initial Jobless Claims, and Nonfarm Productivity (all at 8:30 am), August Markit Composite PMI and August Services PMI (both at 9:45 am), August ISM Non-Mfg. Employment and August Non-Mfg. PMI (both at 10 am).  Major earnings reports include GMS, MIK, PDCO, SIG, and TTC before the open.  Then after the close AVGO reports.

The bulls continue to run, but extension from averages is significant. So, as tempting as it might be, don’t predict reversals…follow the trend. And remember not to chase moves you have missed, because there will be another one any minute.  Stick with your rules and consistently lock-in profits and reduce your risk. 

Ed

The Daily Swing Trade Ideas for today: LKQ, IT, ALLY, YUM, MXIM, ABT, NLOK, MDT, MRK, UPS. 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

Tuesday saw a gap higher and early rally before markets ground sideways from 10:30 through the midafternoon.  A late rally took stocks out near the highs.  Once again the QQQ and SPY both printed new all-time high closes and the DIA managed to print a bullish engulfing signal.  On the day, QQQ gained 1.70%, SPY gained 0.94%, and DIA gained 0.91%.  The VXX gained a bit to 27.27 and T2122 also rose a little to 60.39 (still in mid-range).  10-year bond yields fell to 0.677% and Oil (WTI) rose slightly to $42.88/barrel.

During the day Treasury Sec. Mnuchin told Congress that the US economy urgently needs additional fiscal stimulus.  He did not offer a new proposal on the matter but did say he’d be calling Speaker of the House Pelosi after being prompted to do so by one of the Democratic committee members.  During his testimony, he specifically said that the Services and Travel industries, as well as small businesses, need a fresh round of funds.  Fed Speaker Brainard reiterated the same thing in his speech, adding that FOMC help will continue to be needed for years.

In a related story, White House Chief of Staff Meadows told reporters that the primary stumbling block in negotiations is emergency funding for states and municipalities.  As is normal in partisan negotiators, he went on to say that the starting point for resumed negotiations sholuld not be the Democrat $3 trillion plan from May, nor the Democrat $2 trillion offer of 5 weeks ago, nor the Republican $1 trillion offer from 5 weeks ago. Instead, he thinks they should start from a $500 billion level to negotiate.

On the virus front, in the US, the numbers show we now have 6,258,028 confirmed cases and 188,907 deaths.  New cases are back to the elevated flattened curve average of 42,000, but deaths remain above the 7-day average at 1,164.  On Tuesday a panel of NIH experts said that just as with hydroxychloroquine, the data does not support recommending the recently touted treatment of convalescent plasma therapy.  In separate news, while the CDC guidelines say a person can return to work 10 days after the onset of symptoms, a new study out of Britain suggests patients need to wait at least a month before going back to public exposure and that symptoms can last for many months.

Globally, the numbers rose to 25,935,511 confirmed cases and 861,900 deaths.  Global GDP numbers continue to trickle in showing what we all knew, Q2 was a bad quarter (how bad depends on the expectation-lowering done ahead of time) with Australia showing a 7% decline for the quarter and an annual GDP decline of 6.3%. A study out of Iceland shows that coronavirus antibodies stay in the body at least 4 months. This finding contradicts smaller studies that showed the antibodies fade more quickly.  It also does not address the cases of reinfection found recently…but does show we are gaining knowledge on the virus all the time now that we are studying it. 

Overnight, Asian markets were mixed, but mostly modestly green.  Shanghai, Hong Kong, and Taiwan were the only red and even they posted modest loses.  Europe is even more bullish with the big 3 bourses up sharply at mid-day.  The FTSE is up 1.71%, while the DAX and CAC are both up 2.35%.  The only red is in Norway and like Asia, that is only a minor loss.  In the US, at 7:30 am, the futures are pointing to another gap-up open with the large caps implying a 0.65% higher open and the QQQ implying a 1% higher open.   

The only major economic news for Wednesday is August ADP Nonfarm Employment (8:15 am), July Factory Orders (10 am), Crude Oil Inventories (10:30 am) and a trio of Fed speakers (Williams at 10 am, Mester at noon, and Kashkari at 2pm).  The only major earnings reports on the day are M before the open and PVH and SAIC after the close.

Like the Honeybadger, the bulls simply don’t give a damn, especially about extension from averages. The run continues and looks to be back in play for the open today. So, as tempting as it might be, don’t predict reversals…follow the trend. And remember not to chase moves you have missed, because there will be another one any minute.  Stick with your rules and consistently lock-in profits and reduce your risk. 

Ed

The Daily Swing Trade Ideas for today: TNA, PZZA, MOS, FB, AMD, MAS, LB, LEN, URI. 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.

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