A quarter percent higher open led to a roller-coaster morning.  However, an afternoon rally saw markets close near their highs, particularly on strength from the mega-cap tech stocks.  The QQQ gained 1.78%, SPY gained 0.74%, and DIA gained 0.48%.  The VXX closed down to 29.34 and T2122 settled right on the edge of overbought territory at 80.08.  10-year bond yields rose a bit to 0.610% and Oil (WTI) also rose slightly to $41.61/barrel.  It’s also worth noting that gold soared to a record high of $1,931.50/oz.

Last evening INTC announced their head of Engineering (who was widely expected to be the next CEO) will leave the company next Monday.  No word on if or how this relates to INTC’s announced engineering and manufacturing delays. Unrelated, but about the same time, T subsidiary Warner Brothers also announced that their widely-anticipated new high-budget film Tenet will be released internationally first and then a few weeks later in select US cities in an attempt to reduce virus impact. GOOG announced they are extending their work-from-home plan through at least July 2021.  Finally, MCD reported early this am with a 30% revenue drop and a same-store sales short-fall of just 2.3%.

In the US, the virus numbers show we have 4,433,532 confirmed cases and 150,450 deaths.  With new cases falling to 61,571 and deaths down to 596, there are signs of plateauing again in at least the 3 worst-hit states (FL, TX, and AZ).  Better yet, PFE announced that they had started their phase 3 trial in conjunction with German biotech partner BNTX.  This was a timeline acceleration to avoid falling behind MRNA whose own phase 3 trials also began on Monday.  It will take a couple of weeks to enroll enough participants in either study and the preliminary results ought to be available as soon as the end of October.

Globally, the number of cases has reached 16,672,852 confirmed cases and 657,270 deaths.  The numbers are worrying.  However, the real issue of concern is that even the countries that actually acted fast and decisively, and seemingly had the virus under control, are now seeing a resurgence.  Among these are China, Hong Kong, Vietnam, Japan, and South Korea.  The obvious question is if countries with extremely high mask compliance and fast, strict quarantines have trouble controlling this virus, what does that imply for much less compliant and much more economically-focused countries like the US?

Overnight, Asian markets were mixed again, but leaning more to the green side. China, South Korea, and India all put up gains of over 1%.   Japan, Australian, and Thailand were the losers on the day, but not down as much as the winners were up.  In Europe, markets are much more on the red side so far in the day.  The moves are modest, but the red is broad-based with only Greece, Belgium, and the FTSE on the green side.  In the US, as of 7:30 am futures are pointing to a gap lower a third of one percent at the open. 

The only major economic news for Tuesday is Conf. Board Consumer Confidence (10 am).  However, there are a lot of major earnings with ABG, BEN, CMI, CNC, DHI, DTE, ECL, GLW, HOG, HUN, IVZ, LH, LW, MCD, MDC, MLM, MMM, MO, OMC, PFE, PII, ROP, RTX, SPGI, SHW, XRX, and ZBRA are all among those reporting before the open.  After the close, AMD, AFL, AKAM, AMGN, CAR, CB, CHRW, CE, CYH, EBAY, EIX, FTV, THG, JNPR, MDLZ, MRC, NCR, OKE, PKG, SBUX, SSNC, STX, UNM, and V all report.

Monday gave us morning indecision and an afternoon rally (perhaps on Fed hopes). However, nothing really changed in the trend or chart.  While it was a decent candle in the QQQ, we still did not print a Morning Star, the bullish trend remains in place, and there remains work ahead if bulls plan to push up through the top again. 

Today is a light day on planned news and may well be driven by earnings, hopeful vaccine news, and politicking over stimulus. However, we could also sit on our hands for a day waiting on reassurance from the Fed.  

Keep an eye on those FAANG stocks as our “canary in the coalmine.”  Follow the trend, don’t chase or predict reversals, and always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: WU, XHB, COF, IBM, OIH, HAL, DFS, SLB, HPR, XLV, VXX. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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 Friday and then gave us indecision to end the week.  Both the SPY and DIA printed Doji and QQQ printed a White Spinning Top.  Only the SPY broke its uptrend line, but only the QQQ flipped its Volatility Stop (10. 1.5) from green to red.  For the day, the SPY lost 0.64%, the DIA lost 0.75% and the QQQ lost 0.95%.  VXX was also flat at 30.17 and T2122 fell back into the mid-range at 66.97.  10-year bond yield were flat at 0.587% and Oil (WTI) climbed slightly to $41.34/barrel.  For the week, we had indecisive trading that closed down a bit as once again the mega-cap tech names led markets by the nose all week.

This week has the potential to be the most news-filled of the summer (at least so far).  Republicans are expected to finally finish their relief plan so that negotiations can begin with Democrats, perhaps as soon as Monday.  Over the week, there will also be 1,200 major earnings reports released, including most of the huge FAANG stocks that truly drive market direction.  The CEOs of those FAANG stocks will also be testifying before Congress during an Antitrust hearing on Wednesday.  On that day, the Fed also ends its regular meeting and although no new announcements are expected, their statement and the Q/A will be important.  Lastly, on Thursday the first read of Q2 GDP will come out, giving us as idea how bad the economy crashed during the first belated shutdown.  On top of all this, we know virus and virus impact news will continue hot and heavy.

On Sunday, Bloomberg reported the big banks such as BAC, GS, and JPM now expect the EU’s economic recovery to be larger and faster than that of the US.  The overall theme is that leadership and fast action breed public confidence and the EU scores much better at this than the US.  Those experts point to July PMI data, where the EU PMIs handily beat analyst expectations, while the US PMI came in below expectations.  In the longer-term, the EU will also have much less debt to pay off.  The US has spent a bit more than $10 Trillion (so far) in combined fiscal and monetary stimulus (not including state spending).  By contrast, the supposedly socialist EU, with a 50% larger population, has spent a fourth of that number even including individual EU-member spending. The bottom line is that companies focused on EU markets may be favored over those that focus on US markets in the short to medium-term timeframes.

In the US, the virus numbers show we have 4,371,992 confirmed cases and 149,852 deaths.  Over the weekend, the country saw the 7-day averages rise to 69,000 new cases and 937 new virus deaths. On Friday, MCD and CMG both also joined the long list of retailers now requiring all customers to wear masks.  Thankfully, TX and AZ saw a reduction in new reported cases.  However, this may be less a trend and more about the hurricane and normal weekend activities impacting numbers.

Globally, the numbers have reached 16,446,932 confirmed cases and 652,852 deaths.  It took just over 4 days for the world to go from 15 million to 16 million cases and that pace continues.  This came as new outbreaks were found in China, Hong Kong, Vietnam, Japan, Spain, Sweden, Romania, and Bulgaria.  The Chinese outbreak was the largest since the initial Wuhan eruption. The W.H.O. also reported rampant spread throughout sub-Saharan Africa.  Finally, Latin American has become the current epicenter with Brazil, Mexico, Peru, and Chile now all among the top 8 most-infected countries.

Overnight, Asian markets were mixed but generally close to flat.  The exception was Thailand, where in addition to other news items, they are experiencing public demonstrations related to both government response and social problems.  (Not a great atmosphere in a country prone to military dictatorships.)  In Europe, markets are following Asia. The major bourses are all within a quarter percent on either side of flat so far today. In the US, as of 7:30 am futures are pointing to a gap higher of between a third (DIA) and one percent (QQQ) at the open. 

The only major economic news for Monday is June Durable Goods Orders (8:30 am).  However, Monday is the slow kickoff of an otherwise heavy week of earnings.  Before the bell Monday, we’ll get reports from AVY, CX, EQT, HAS, RPM, and SAP (SAP announced a spinoff IPO of a division as well).  After the close, AMKR, BRO, CINF, FIX, CR, EHC, FFIV, NOV, NXPI, OMF, PFG, TFII, and UHS report.

Friday gave us indecisive follow-through to Thursday’s ugly candles, but the uptrend has not been broken and we have potential support below.  So, the fight is still on between the bulls and bears in the short-term.  We have a lot of news coming this week, which leaves open the possibility of either a lot of volatility or a flat market too overwhelmed by conflicting news to make a move. 

That said, remember that the market has only paid attention to good news for months now. The point is we may see a pause to get more assurance, but the lean is definitely still in the bulls favor.  So, watch those FAANG stocks as our “canary in the coal mine,” but follow the trend.  Don’t chase or predict reversals, and always take profits as you go.  Remember, consistent singles and doubles win championships, not occasional home runs.

Ed

The Daily Swing Trade Ideas for today: BBY, LULU, AA, FDX, WEN, KO, TGT, TCOM, DNKG. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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 Thursday on worse than expected Initial Jobless Claims (1.4mil vs. 1.3mil expected).  However, prices bobbed around flat until Noon, when a strong selloff took us to the lows where prices remained the rest of the day.  All 3 major indices put in ugly black candles but did manage to close up off the lows a bit.  So, despite the bad day, the bullish trend was not broken.  On the day SPY lost 1.19%, DIA lost 1.22%, and QQQ lost 2.61% as the mega-cap tech names led markets lower.  The VXX closed up to 30.07 and T2122 fell a bit to 89.47, which is still well into overbought territory.  10-year bond yields fell again as money chased bond safety, closing at 0.577%.  Oil (WTI) was also down, closing at $41.06/barrel.

The GOP continues to haggle over their stimulus proposal.  Late Thursday Senate Majority Leader McConnell said Senate Republicans will release their plan sometime next week.  The Republican plan is expected to be in the $1-1.5 Trillion range and the Democratic plan proposed $3.5 Trillion.  So, we’d expect the final number to be in-between the two extremes.

After the close, INTC beat on the top and bottom lines, but guided down for Q3 and announced yet another delay in their next-generation chips (which is already a couple years behind schedule and had been planned for a release 2021).  INTC now plan for that 7nm chip release to be in late 2022 or even 2023.  (INTC still uses 14nm and competitor AMD has been shipping 7nm chips since 2019.) After-hours, INTC stock was hammered and AMD was up by about the same amount that INTC was down.

In the very suspiciously-timed US-China relations story, the Trump Administration continued to ramp up the “good guy vs. bad guy” theme in yet another scathing speech overnight by Sec. of State Pompeo.  Of course, as promised, China retaliated over the US closing the Chinese Houston Consulate by forcing the closure of the US Chengdu consulate.  Asian and European markets reacted poorly to these escalations, which traders fear could lead to another trade war.

On the COVID story, in the US, the virus numbers show we have 4,170,333 confirmed cases and 147,342 deaths.  The country saw just over 69,100 new cases and 1,150 new virus deaths on Thursday.  DIS also announced it is pushing back the release of several major movie franchises for a year over virus fears.  These include Mulan, Star Wars, and Avatar.  Not coincidentally, AMC theatres also have pushed back their reopening until at least mid-Aug. in light of the current surge in cases nationwide. 

Globally, the number of cases has reached 15,684,371 confirmed cases and 637,222 deaths.  Brazil had its second-highest number of cases Thursday as the outbreak continues in that country.  Cases in that South American country have tripled in the last 30 days.  A little further North, China offered Latin American and Caribbean countries a $1 billion low-interest loan to help them finance the purchase of a Covid-19 vaccine.  In Asia, both India and Japan again reported their highest number of daily infections on Thursday.

Overnight, Asian markets were down on the US-China tensions.  Prices were off significantly across the board, but Shanghai (-3.86%) and Shenzhen (-5.00%) took the hardest hit.  In Europe, a similar case is taking shape.  All the European bourses are down significantly, with the sole exception of Russia, which is just on the green side of flat so far today. In the US, as of 7:30 am futures are pointing to a modest gap lower of about three-tenths of a percent with the exception of the QQQ which is looking at three-quarters of a percent gap down.  

The major economic news for Friday includes July Mfg. PMI and July Services PMI (both at 9:45 am) as well as June New Home Sales (10 am).  Major earnings releases include AXP, BLMN, FMX, HON, NEE, SLB, and VZ all before the open.

Thursday’s ugly candles still managed to maintain the uptrend, but we are right there.  So, it will be important to see whether the bears can get some follow-through or the bulls can bounce us up off trend and back into the green for the week.   Continue to expect volatility as virus news, stimulus rumors, earnings, and the US-China stories are all likely to make headlines today.

As Swing Traders, all we can do is watch the chart and follow the trend.  Remember to keep an eye on those FAANG stocks as our “canary in the coalmine.”  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  In earnings season, be wary of both reactions and re-reactions.  And don’t forget it’s Friday.  So take some profits and be prepared to weather the weekend news cycles.

Ed

The Daily Swing Trade Ideas for today: LABD, XLF, XOP, ITB, XHB, XLE, XLI, XLB, XRT, VXX. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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

We saw a gap down in the large caps and a small gap up in the QQQ on Wednesday.  However, most of the day was a rollercoaster until a late-afternoon rally closed markets near their highs.  This gave us a Bull Engulfing candle in the SPY and DIA as well as a Bullish Doji Harami in the QQQ.  On the day SPY gained 0.56%, DIA gained 0.63%, and QQQ gained 0.35%.  VXX was down a tad to 29.16 and the T2122 4-week High/Low Ratio remained deep in over-bought territory at 94.80.  10-year bond yields fell slightly to 0.599% and Oil (WTI) was flat, closing at $41.89.

The GOP continued to haggle over what their own proposal for the next stimulus bill will be, but they appear to be making progress. Among the key areas of disagreement is whether (and how) to extend “enhanced unemployment insurance.” There are GOP camps fighting for $400/week, $200/week, and $100/week as well as some who want to drop it altogether.  Still, the Senate Republicans announced overnight that they have reached a “fundamental agreement” on the basics on their side of the table. (Reportedly a $1 Trillion bill proposal.) So, now negotiations with the Democrats (whose own $3.5 Trillion proposal has been in place since May) can now actually get in gear. (As mentioned yesterday, Congress is not going to want to hang around DC long since most of them want to go home for politicking.)

In the US, the virus numbers show we have 4,101,308 confirmed cases and 146,192 deaths.  The country saw just under 72,000 new cases and a little over 1,200 new virus deaths on Wednesday.  CA also surpassed NY for the dubious honor of becoming the state with the most confirmed cases to date. IN, MN, OH, and Washington DC all joined the group of states ordering a statewide mask mandate in lieu of a Federal mandate.  The head of FEMA also told CNBC that the Federal Government still does not have enough PPE gear and his agency as well as the states are still aggressively trying to buy more.  He said that due to logistics issues and overall short supply, it is possible that virus hot-spots could run out on a temporary basis, but the continue to work on it.

Globally, the number of cases has reached 15,405,069 confirmed cases and 631,015 deaths.  Brazil reported a record of almost 68,000 new cases Wednesday, days after the WHO had said new cases had reached a plateau.  India’s exponential growth curve for new cases continues.  In Tokyo, they also saw a new record-high number of cases today, although the Japanese number is hardly worth mentioning in comparison to Brazil or the US.  South Korea also announced Thursday that it has fallen into a technical recession as of Q2 due to the virus.  Australia had said overnight that the virus had shrunk its GDP by 5%.

Overnight, Asian markets were mixed and showed a move of less than a percent both directions.  China, Japan, and Korea were down while Hong Kong and Australia were up.  In Europe, markets are mixed, but also broadly “modestly green” with just a few stragglers so far today.  In the US, as of 7:30 am futures are pointing to a modest gap higher of about a third of a percent with the exception of the QQQ which is looking at three-quarters of a percent gap higher. 

The only major economic news for Thursday is Weekly Initial Jobless Claims (8:30 am).  However, once again there are a massive number of major earnings reports, including AAL, AB, ADP, ADS, ALK, ALLE, AN, BX, CVE, CTAS, CTXS, DGX, DHR, DOW, FAF, FITB, FCX, GWW, HBAN, HSY, KMB, MTB, MTRN, NUE, ORI, PHM, PNR, POOL, RS, T, TECK, TSCO, TRV, TWTR, UNP, and WSO.  Then after the close ETFC, EW, FE, INTC, RHI, SKX, SWKS, and SIVB report.

Wednesday’s rollercoaster and late-day rally did nothing to break the bullish trend.  We should expect volatility to continue as virus news remains bad (but bulls will see only the rosy scenario) and stimulus negotiations are now beginning.  However, earnings news continued to be generally good as of last night (against extremely reduced expectations) and there will be more of that this in morning’s reports.  US-China relations remain the wild-card since the ball is in China’s court at the moment.  

In this sort of environment, all we can do is watch the short-term chart and follow the trend.  Remember to keep an eye on those FAANG stocks as our “canary in the coalmine.”  Remain focused on your trades and don’t chase, don’t predict, and always take profits as you go.  Also remember that in earnings season, we should be wary of both reactions and re-reactions.

Ed

The Daily Swing Trade Ideas for today: AMD, NVAX, GDOT, WU, ABT, COF, MA, XRT, ALGN, CVX. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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 strongly higher at the open Tuesday on the EU recovery deal, general recovery optimism, and good earnings.  However, the huge tech names sold off immediately, and the rest of the market could not fight that wave, finally following suit in the afternoon.  The QQQ closed down 1.04%, but the large-caps eked out gains as SPY closed up 0.18% and DIA closed up 0.57%.  The VXX was flat at 29.48 and T2122 climbed all the way to the top of overbought territory at 96.49.  10-year bond yields fell slightly to 0.604% and Oil (WTI) climbed 2% to $41.76/barrel.

Republicans met and began cobbling together their proposal for the next stimulus bill, a necessary precursor for the start of negotiations with Democrats (whose plan has been passed and, on the table, since May).  As of Tuesday, the GOP has agreed amongst themselves that businesses need more PPP loans, other grants, and liability protection at a minimum. They also will ask for $105 billion for schools.  However, the Payroll Tax Cut that the President demanded didn’t appear to make the list since it is being opposed by even some Republicans.  Later, House Minority Leader McCarthy told CNBC he does not expect a final deal to be negotiated and passed until August.  Still, Congress will want to adjourn again and get back home to begin their reelection campaigns.  So, early August is probably as late as it will be allowed to go.

The other major storyline overnight is the ratcheting up of trade tensions with China.  This may be a legitimate confrontation about the activity or something that would always be legitimate but is done now for unrelated purposes.  In any event, the US charged (in absentia) 2 Chinese men for hacking and attempted (but unsuccessful) theft of medical data. The US also abruptly forced the closure of the Chinese Consulate located in Houston.  The Chinese have vowed retaliation for both through their state-run media.  Regardless of the true reasons behind these moves or their validity, it does stir up fear of another round of trade war.

In a one-off story snuck out overnight, Citadel Securities announced it has agreed to be was fined by FINRA for front-running client orders in a settlement agreed July 16, but announced in a Tuesday press release.  The fine was a paltry $700,000. However, this case had been dragged out so long that the activity covered dates from way back in 2012-2014.  So, apparently it pays to hire top FINRA and SEC officials as your General Counsel as Citadel had done.

In the US, the virus numbers show we have 4,028,733 confirmed cases and 144,958 deaths.  This includes 67,000 new cases Tuesday.  TX and FL continue to report record-high 7-day average new deaths.  However, at least for the first time in over a week, FL reported under 10,000 new cases with 9,400).  LA Governor Edwards announced Tuesday the state will remain in phase 2 of reopening for at least another 2 weeks (rather than move to phase 3 on Friday as previously scheduled).  On the business side there was good news as BBY announced that sales are returning (up about 2.5% in Q2) and they have brought back about half of the employees furloughed in April. 

Globally, the number of cases has reached 15,120,686 confirmed cases and 620,263 deaths.  Asia is again becoming a hot spot.  For example, India continues to see a surge as they reported over 39,000 new cases on the day in their very underwhelming testing program (given their huge population).  The outbreak in Australia also continues, especially in its two largest states.  Japan also is back near their record-high in cases although the last 2 examples are tiny relative to US numbers, due to the tiny Australian population and Japan’s overwhelming acceptance of mask-wearing.  Closer to home, Mexico surpassed 40,000 deaths as their 7-day average of new cases also sits at an all-time high.

Overnight, Asian markets were in the red with the exception of China and Taiwan, which were mildly green.  These moves came mostly in response to trade fears.  The same is true in Europe, with only Russia above break-even (barely) at this point in their day.  In the US, as of 7:30 am futures are pointing to a modest gap lower of about a quarter percent. 

The major economic news for Wednesday is limited to June Existing Home Sales (10 am) and Crude Oil Inventories (10:30 am).  The major earnings reports on the day include ABB, APH, BIIB, BKR, CP, CSTM, DOV, HCA, IQV, KEY, KNX, LAD, NQAD, NTRS, NVR, RCI, SLGN, and TMO before the open.  Then after the close, CMG, CSX, EFX, KMI, LSTR, LVS, MSFT, MTH, PLXS, RJF, RUSHA, SU, TRN, TSLA, UFPI, and WHR.

Tuesday’s fading of the gap higher did nothing to break trend.  We simply printed a black candle in an uptrend.  The sentiment drivers are likely to be earnings (since we are in silly season), stimulus bill negotiations, and US-China relations.  Remember to watch those FAANG stocks as they proved again yesterday that it’s very hard for the market to buck any move they make as a group.  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  In earnings season, be wary of both reactions and re-reactions.

Ed

The Daily Swing Trade Ideas for today: NBL, CWH, WDC, PENN, OIH, AIG, XOP, WFC, DKNG, X, MRO, SLB. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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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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.

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