Protests Sweep Country

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Friday was a day mostly of fear and waiting on a firestorm from the White House, only to realize it was nothing but a little hot wind.  After the China presser amounted to nothing but “We’ll take action to eventually eliminate Hong Kong’s special treatment” markets rallied hard up off the lows the last hour of the day.  At the close, the SPY was up 0.45%, the DIA flat at negative 0.02%, and the QQQ up strongly at +1.47% as tech issues rallied hardest off the non-event.  The VXX closed down to 33.13 while the T2122 4-week High-Low Ratio fell slightly, but remains overbought at 85.29.  The 10-year bond yield fell to 0.653% and Oil (WTI) rallied yet again to $35.32/barrel. With that said about the day, it is also important to recognize that markets rose about 5-6% during May.

The big story this weekend was coast-to-coast protests and some riots. Some businesses and traffic have been temporarily disrupted in a large number of places.  The only major business responses have been that TGT (Minneapolis-based) and AAPL both closed stores, while AMZN closed distribution hubs located near protests.  These protests have mainly been peaceful dissent to racial injustice and killings of blacks by police.  But, some of the protesters have turned into rioters causing property damage, looting, injuries, and even a couple of deaths. 

Government responses have been declarations of curfews, unlawful assemblies, and no-go zones, as well as the use of tear gas, knight sticks, and rubber bullets.  There have been hundreds of arrests. Many states have also called out the National Guard.  Atty. Gen. Barr and President Trump claimed that rioters are “far-left extremists.”  So, on Sunday Trump declared ANTIFA to be terrorists.  However, there has been no evidence produced yet of any organized group organizing or leading riots locally, let along nationally. (Side note: This whole episode must give the Chinese leadership a belly laugh.  The US has denounced the Chinese for crack-downs, labeling protesters as terrorists, mass arrests, and employing similar tactics against public protests and riots over civil rights.)

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On the Virus front, the global headline numbers are 6,290,758 confirmed cases and 374,335 deaths.  On Saturday India reported a record jump in new cases, extended its lockdown in “containment zones” through June 30, while also allowing retail, restaurant and religious buildings to open in the other parts of the country.  The EU adjusted its Steel Import Controls (the ones enacted in response to new US tariffs).  The new measures fall short of import quota cuts (as had been requested by European Steelmakers), but are aimed at prohibiting any stockpiling of foreign steel while European makers are not back to capacity. Finally, Russia claims to have an effective treatment drug for the virus (mentioning that the only other potentially-effective drug to their own is the GILD drug remdesivir).

In the US, we have 1,837,578 confirmed cases and 106,198 deaths reported to date. CNBC reports that AAPL data shows Americans are driving at almost the same rate they did prior to the shutdown (based on navigation map requests and geo-data from phones).  However, mass transit and restaurant bookings have barely recovered at all.  Hotel bookings are in between, having recovered about 35% of the reduction caused by the shutdown. 

An interesting tidbit from the supply chain.  Since the stimulus checks hit in the US, the demand for computers and PC components has skyrocketed.  Demand is as high now as at a normal December (Xmas season) and 25% higher than a normal May.  So, it seems the economic pain of the shutdown has been exaggerated and a bunch of that money is going straight to computer upgrades and purchases.  Combine this demand with a shipping bottleneck caused by port closures and the no passenger air flights (every passenger flight carries cargo in addition to people) and you get a May shortage of Motherboards, Graphics Cards, and Power Supplies (all sourced from China).  This should abate sometime in June as transport capacity works through the backlog.

Overnight, Asian markets were in the green across the board as May factory numbers overrode the US-China trade war fears.  However, European stocks are mixed, but mostly green so far today.  As of 7:30 am, US futures are flat and mixed, with the country preoccupied by the protests/riots and government responses.

Major economic news on Monday is limited to May Mfg. PMI (9:45 am) and May ISM Mfg. PMI (10 am).  There are also no major earnings reports on Monday.

The bulls continue to have the momentum and trend, but big intraday swings continue to be the norm.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

Trade ideas for your watchlist and consideration. PFE, ORCL, PANW, ENB, JNJ, SNAP, KHC, INTC, NDAQ, JNPR, ABBV. 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

|607% in just 24 months |

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

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

News Conference “on China.”

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News Conference “on China.”
Trade War

After a bit of morning price volatility, the bulls resumed there march higher despite the jobless number that now affects 1 in 4 working Americans.  Then late in the day, the President announced a news conference “on China,” and the bears suddenly woke up, swinging the markets sharply lower into the close.  There are very little to no details on what will or will not be said or done in this new conference, so not surprisingly, the market is a bit apprehensive waiting for the next shoe to drop.  Also, facing another big day of economic data, traders have a lot to grapple with as we head into the weekend.

Asian markets closed mixed but mostly lower with Hong Kong not surprisingly have the most significant bearish reaction to the new China law.  European markets are modestly lower across the board in response to the rising US-China tensions.  US Futures point to slightly lower open ahead of several economic reports and more comments from Jerome Powell.  Anything is possible, so plan carefully with an uncertain weekend approaching.

Economic Calendar

Earnings Calendar

On the Friday earnings calendar, we have 60 companies reporting results today, but looking through the list, we only CGC is particularly notable.

Technically Speaking

After a rather quick pop and drop crating some morning price volatility, the bulls regained control and began a steady climb.  After yesterday’s jobless number, we have nearly ¼ of working Americans standing in unemployment lines. However, the market seems to have absolutely no concern about unemployment choosing to focus on the hopes of recovery.  Then at the end of the day, the President announced a new conference on China, and suddenly the bears woke up, worried about the uncertainty of what happens next.  Countries around the world have including have joined in to chastise China’s new security law.  That may be the straw that broke the back of the recent cautious US approach to China.  At this time, there are very few details about what may or may not occur during this new conference, so naturally, the market is a bit on edge, making about anything is possible in the day ahead.

Although index trends remained bullish yesterday, price action left behind candle patterns raising the need for a little caution.  We also have a busy economic calendar today with International Trade, Personal Income and Outlays, Chicago PMI, Consumer Sentiment, and another speech from Jerome Powell.  Consider your risk carefully as we approach a weekend that may include new China-related uncertainties.

Trade Wisely,

Doug

China Presser and Morning Data

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The bulls rallied all day Thursday (they love those big Jobless Claims numbers), right up until it was announced the President will hold a Friday press conference on China.  At that point, markets fell off the cliff the rest of the afternoon, closing lower.  For the day, SPY closed down 0.20% on a Shooting Star type candle, DIA was down 0.56% on a Dark Cloud Cover candle, and QQQ was flat at down 0.13% while leaving a high upper wick.  The VXX gained a bit to 34.48 and T2122 fell, but remains in overbought territory at 90.27. 10-year bond yields rose slightly to 0.697% and Oil (WTI) also climbed to $33.56/barrel.

During the day, the President signed his Executive Order targeting social media (after being fact-checked by Twitter). His appointee Atty. Gen. Barr attended the press event to also say his Dept. will also sue social media firms (the timing must be purely coincidental).  While the President’s threats will have no practical short-term impact without legislation and court cases, the message did hit TWTR (- 4.5%) and FB (-1.6%) stock on the day. These events may also restart an interesting conversation in America on freedom of speech vs. censorship, facts vs. deception, viewer ignorance vs. editorial responsibility, and the use of government power for personal purposes.

Meanwhile over on Capitol Hill, the House passed a bill to ease the loan forgiveness rules of the PPP program.  The bill lets companies put less of the loan amount into payroll, extends the window when they can use the loan funds, and pushes back the date by which they must rehire workers in order to qualify for loan forgiveness.  The Senate has discussed similar measures and will likely pass a very similar bill.

$97 for the next 100 subscribers, then $147

On the Virus front, the global headline numbers are 5,931,867 confirmed cases and 362,613 deaths.  Spain began further easing on Friday.  France and Turkey also announced comprehensive openings to take place the first two days of June.  The UK joined the chorus as well, announcing it will begin opening bars and restaurants “under strict conditions” as of Monday.

In the US, we have had 1,768,608 confirmed cases and 103,341 deaths reported to date. Texas reported a 3.2% increase in new cases this week, twice the previous week’s rate and the increase was higher than the 2.9% increase in testing over the period.  Elsewhere UAL followed AAL, but taking a different tactic.  UAL will offer early retirement and buyouts to reduce their workforce, but similar goal of around a 30% staff reduction. It is also noteworthy that US corporations have raised $1 Trillion in the bond market in the last month with the Fed backstop reassuring corporate bond buyers.

Overnight, just like yesterday, Asian markets were mixed again as the US-China tension leads to trade war fears.  However, Europe stocks are red across the board so far today.  As of 7:30 am, US futures are flat and mixed, with the President’s China press conference later today. 10-year bond yields also plunged overnight on trade fear related to the China press conference.

Major economic news on Friday includes Apr. Core PCE, Apr. Trade Balance, Apr. Personal Spending, and Apr. Retail Sales (all at 8:30 am), May Chicago PMI (9:45 am), Michigan Consumer Sentiment (10 am), and Fed Chair Power speech (11 am).  Major earnings reports are limited to BIG, CIR, CGC, and SOL all before the open.

A lot of economic data comes before the open again today.  However, it is likely to be the China press conference (likely sanctions and raised rhetoric) that impacts markets most.  The bulls continue to have the momentum and trend, but intraday swings continue and Thursday’s candles show that there is uncertainly about the rally.  So, keep your eye on the short-term chart and don’t hesitate to lock in profits.  Remember, it’s Friday so put some gains in your pocket and consider weekend hedges.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

No Trade ideas for your watchlist on Friday. 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

|607% in just 24 months |

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

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

Bulls Surge

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The bulls surge at the end of the day with the financial and retail sectors sharply gaining ground as wall street hopes grow as business across the country begins to reopen.  Sadly the Beige Book report cited a different story with business leaders pessimistic about recovery and workers reluctant to return to their jobs.  Before the open today, we have a big data dump, including jobless claims with consensus suggesting more than two million joined the historic number of unemployed.

Asian markets closed mixed with Hong Kong moving lower after China pass new security measures cracking down on the country.  European markets see green across the board as the monitor escalating tensions between the US and China.  US Futures point to another bullish gap up open ahead of a busy day of earnings and economic data.  An extra dose of price volatility is likely this morning as we react to data.

Economic Calendar

Earnings Calendar

On the Thursday earnings calendar, we have 87 companies reporting quarterly results.  Notable reports include DG, COST, ULTA, ANF, BURL, CM, CSIQ, DLTR, MOMO, NIO, JWN, OLLI, CRM, SAFM, SHOO, TD, & VMW.

Technically Speaking

For the 3rd day this week, the bulls charged forward on hopes of the country reopening its economy.  Interestingly, the Fed Beige Book said economic activity declined across the country, falling sharply in most regions.  It also cited that workers are reluctant to go back to their jobs due to safety concerns, child care, and the very generous unemployment benefits provided by the government.  The report also stated that business leaders were pessimistic about the potential pace of the recovery.  Tensions between the US and China are growing.  Last night Chana approved the new security measures for Hong Kong, although many countries have come out against the law as limiting free speech.  The US House yesterday sent a bill to the president’s desk to sanction China for human rights violations.  Hong Kong may lose its special status with the US, which could have ramifications for investors in the coming weeks.  Today we have big data dump on the economic calendar with Durable Goods, GDP, Jobless Claims, Home Sales & Petroleum Status.  Consensus suggests that more than 2-million Americans applied for unemployment last week even as the business tries to reopen across the country.   Boeing announced layoffs for nearly 7000 employees yesterday, and American Airlines plans a 30% reduction of management and administrative staff as the industry continues to struggle.

The Financial and Retail sectors had a very good day yesterday, pushing the indexes higher will in a late-day surge of buying.  The Dow has rallied more than 1000 points in just two trading days, and the SP-500 closed above its 200-day average for the first time since early March.  US Futures once again indicate a bullish open the suggesting a Dow gap up of more than 100 points ahead a big day of economic data.  I would not be surprised to see an extra dose of price volatility ahead of the market open.  The T2122 indicator continues to warn of an extreme overextended condition in the indexes. Still, the bulls seem to be in a relentless buying mood no matter what the numbers suggest about the economy.  Hang on tight anything is possible and be prepared for the possibility of profit-taking that could begin at any time.

Trade Wisely,

Doug

Econ Data Plus Trade and TWTR Tension

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After a 1% gap higher at the open and an immediate strong selloff, the bulls stepped in at 10:45 am and never looked back.  The rest of the day was a steady climb to recover the losses of the morning and close the day at the highs.  On the day, the SPY was up 1.48%, the DIA up 2.21%, and the QQQ up 0.55%.  VXX fell again to 33.15 and the T2122 rose again to a very overbought 98.11.  10-year bond yields fell slightly to 0.685% and Oil (WTI) fell for a change, closing at $32.08/barrel.

During the day, BA announced they will lay off 7,000 workers this week, part of their plan to cut 10% of their workforce.  The cuts come on the same day BA restarts the production of its fiasco 737 Max plane and are major order cancellations the company blames on the virus.  In related news, the CEO of AAL told an investor conference they will not declare bankruptcy, because that would mean admitting defeat. However, AAL does plan a 30% reduction in staff.

In tech news, still furious over having his tweets fact-checked for a change, President Trump has lumped TWTR in with everything else he considers “fake news.”  So, he is expected to order a review of a law protecting online outlets against liability from any lies spread by users.  (I don’t know how that works exactly.  It was passed by Congress and signed by a President.  So, I’m not sure how a different President can order it changed.  Still, he is expected to sign the review order today.)  TWTR is obviously on the “enough lies” side of the argument, while FB is on the opposite side because they don’t want to check any of the posts made by their users.

$97 for the next 100 subscribers, then $147

The other big non-economic story today is likely to be China.  After the close, the House sent a China sanctions bill to the White House for signature.  This comes on the same day Sec. of State Pompeo told Congress Hong Kong is not autonomous and no longer deserves special trade status.  Finally, overnight China ratified the new security law (ahead of schedule to spite the US) that has caused the latest uproar.  So, another round of trade war seems quite possible, if not likely.

On the Virus front, the global headline numbers are 5,813,289 confirmed cases and 357,896 deaths.  The ECB said they expect the Eurozone economy to contract 8-12% for 2020.  At the same time, their just proposed $827 billion stimulus fund has not been ratified (and will not be voted on for months) as it apparently has some opposition from countries fearing the tranfer of wealth from rich to poor countries (although notably not from the richest, Germany or France who had proposed the fund.)

In the US, we have 1,745,911 confirmed cases and 102,114 deaths reported to date. The Healthcare Cost Institute (an independent no-profit) released data Wed. showing that the number of daily deaths in the US between April 1 and now is 10% higher than the same days in previous years (2014-2019).  On the legal side, President Trump and other Republicans have attacked and threatened lawsuits over the idea of mail-in ballots.  Their claim is that it would increase the threat of voter fraud, while the counter-claim is that mail-in voting has been in-place for centuries in the US for many groups.

Overnight, Asian markets were mixed again as the US-China tension leads to trade war fears.  However, Europe stocks are green across the board so far today.  As of 7:30 am, US futures are mixed, with the President’s threat keeping the QQQ  red while the S&P looks at a half percent gap up and the DIA at almost a percent gap up at the open.

Major economic news on Thursday includes Apr. Durable Goods, Q1 GDP, and Weekly Jobless Claims (all at 8:30 am), Apr. Pending Home Sales (10 am), Oil Inventories (11 am), and a FOMC Speaker (Williams at 11 am). Major earnings reports include ANF, BURL, CSIQ, DG, DLTR, MOMO, SAFM, SHOO, and TECD before the open.  COST, CRM, DELL, DXC, JWN, MOD, MRVL, TCOM, ULTA, VMW, and WSM all report after the close.

A lot of economic data comes before the open today. It seems the bulls are in control, but US-China and TWTR-Trump tensions could dampen the mood of traders.  Keep in mind that gap and fade (and yesterday re-rally) have been the norm. So, volatility remains the market constant.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

Trade ideas for your watchlist and consideration: PLAY, CAKE, PENN, MU, SHAK, VALE, AAP, AG, SLV, OKE, ASML. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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

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

Breached Benchmarks

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Breached Benchmarks

In Tuesday’s session, the SP-500 briefly breached the 3000 benchmark and the Dow topped 25,000.  However, at the close of the day, there was a bit of uncertainty as to the bears defend these levels, and the tech sector left behind a bearish dark cloud cover pattern.  The bulls squelched those closing concerns suggesting yet another overnight gap bringing the 2-day rally in Dow of more than 850 points just in the morning gaps!  The question now is will there be follow-through buying or will it attract profit-takers and bears?

Asian markets closed mixed as US/China tensions grow.  European markets, however, don’t seem at all concerned this morning with their indexes approaching 2% increases this morning.  US futures point another substantial gap up open reaching well above yesterday’s high prints ahead of a light day on the economic calendar and earnings reports.  Buckle up for another wild day in the market.

Economic Calendar

Earnings Calendar

On the Hump Day earnings calendar, we have 64 companies fessing up to quarterly results.  Notable reports include UHAL, ADSK, BMO, BGFV, BOX, HPQ, NTAP, NTNX, RL, RY, TOL, VIPS & WDAY.

Technically Speaking

Yesterday’s gap up and run pulled back, leaving behind some concerning candle patterns; however, the futures once again point to a substantial gap up.  The bullishness pushed the indexes through 3000, and the Dow breached 25,000 during the day.  Although they failed to hold these levels into the close, today’s morning gap will recover the benchmark levels with a substantial cushion.  According to the news reports, the bullishness is due to optimism about the economy reopening.  Once again, it would seem possible the largest price move of the day may occur in the overnight session.  Reports that COVID-19 related hospitalizations on the rise in several states continue to raise concerns about the second wave of infections.  Yesterday’ the US death toll topped 100,000, but the only thing the market seems to be in infected with is a ravenous desire to buy risk overnight.  Hum?  The T2122 indicator continues to signal an over-extended condition, but on a positive, the Absolute Breadth Index finally broke through the downtrend.  That would suggest we finally see a broader-based rally.

At the close yesterday, the QQQ left behind a bearish dark cloud cover pattern creating a little uncertainty as the trading day wound down.  However, this morning the morning gap suggests a test of all-time highs in the tech sector remains viable.  The SPY found itself unable to hold the 200-day moving average at the close yesterday, yet this morning we are gapping above yesterday’s high.  Once again, traders could easily find themselves influenced to chase into the morning gap with the fear of missing out.  Remember, big gaps can, at times, attract profit-takers and bring out the bears.  Watch the price action closely after the open to make sure you see follow-though buying before jumping.  Look before you leap, so to speak.  If you have long positions with nice gains as I currently hold, it may be wise to bank some of the gains consider the Dow 2-day rally of about 850 points at the open today. 

Trade Wisely,

Doug

Bulls Looking to Gap Again

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Markets gapped higher on hopes that a vaccine will have some sort of preliminary data from a small human safety trial in July.  From there markets ground and faded the rest of the day, maybe on news of another ratcheting of tension between the US and China.  Although reported over the weekend, Tuesday afternoon news that the White House is considering specific sanctions on China, which preceded the late-day fade.  The SPY closed up 1.23%, the DIA up 2.19%, and the QQQ printed an ugly big black candle to close down 0.27% after its almost 2% gap higher to open.  The VXX closed down slightly to 33.83 and T2122 rose again to the nose-bleed area at 96.32.  10-year bond yield rose to 0.695% and Oil (WTI) rose to $34.25/barrel.

During the afternoon Senate Majority Leader McConnell said Congress will “probably” need to pass another coronavirus relief bill.  This comes after 10 days of declaring the Democrats bill DOA.  Among key Republican demands are liability immunity for those businesses whose workers contract coronavirus at work.  McConnell’s statement falls in-line with President Trump acknowledging the need for another round of stimulus.

$97 for the next 100 subscribers, then $147

On the Virus front, the global headline numbers are 5,709,551 confirmed cases and 352,753 deaths.  In China, the city of Wuhan has completed 6.5 million tests in 9 days as fear of a second wave in the city are being taken seriously.  Meanwhile, in Europe, France announced a $9 billion fund to aid its auto industry.  Germany also extended their social distancing rules through June, but reduced travel restrictions to many countries at the same time.  The EU unveiled the French/German plan to borrow $827 billion for a recovery fund to lend member states.  This is in addition to the original bailout program which still has $600 billion of unemployment, loan and investment funds available.

In the US, we have 1,725,808 confirmed cases and have broken the 100k level in deaths with 100,625 reported to date.  F was forced to pause production at a Kansas City plant after another employee was diagnosed and a “deep cleaning” of the plant must be done.  CA also announced after the close that it will allow barbershops to open in most counties.  On the other side of the country NY Governor Cuomo said they will move forward infrastructure projects like subway expansion, Train Station redesign, etc. in an effort to stimulate the economy.

Overnight, Asian markets were mixed, but tended to be closer to flat except for a very green India.  Europe also shows a little red, but in general is leaning heavily to the green side, especially in the three major bourses (FTSE, CAC and DAX), which are up 1.5-2%.  As of 7:30 am, US futures are also pointing to a mixed gap higher at the open (QQQ 0.7%, SPY 1.4% and DIA 1.65%).

Major economic news on Wednesday is limited to an FOMC Speaker (Bullard at 12:30 pm) and the Fed Beige Book (2 pm).  Major earnings reports are also limited to RL and VIPS reporting before the open.  Then ADSK, HPQ, NTAP, SPTN, TOL, and WDAY report after the close.

It seems the bulls are very hopeful about the economic recovery.  So, we could see them run again today.  However, don’t forget yesterday’s gap was met with a selling fade (especially in the QQQ).  So, “gap and chop” remains real.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

Trade ideas for your watchlist and consideration: M, NIO, UAL, DUST, DXC, UCO, CBOE, BP. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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

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

Hopeful Vaccine

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Hopeful Vaccine

The majority of price action over the last week of trading occurred in the overnight gap, and it appears that it will continue this morning as the market reacts to a hopeful vaccine beginning a Phase 1 clinical trial.  The Covid-19 death toll here in the US is likely to top 100,000 today, and health officials continue to warn of fall resurgence.  Be careful chasing such a huge gap and remember tensions continue to grow between the US and China.

Asian markets closed the day higher across the board on vaccine hopes, and European markets are bullish this morning with travel stock surging over 5%.  Ahead of earnings and several economic reports, the price resistance that has held the indexes down for more than a month looks to break with the overnight futures gap.  The question remains, will there be follow-through buying at the open?

Economic Calendar

Earnings Calendar

As we begin a short trading week, the Tuesday earnings calendar has 69 companies reporting results today.  Notable reports include BNS, BAH, HEI. HIBB, OOMA, STNE, & VSAT.

Technically Speaking

The overall market closed little changed on Friday with very light volume as we moved into the long weekend.  There was, however, some slight selling pressure as China issues new crackdown rules on Hong Kong restricting freedoms.  Not surprisingly, tensions between the US and China continue to grow a may present more of a market threat than the coronavirus in the long-term.  This morning US Futures are leaping higher on hopes of a vaccine from Novavax that is beginning a Phase 1 Trial with plans to begin Phase 2 as early as July depending on results.  Today the US is likely to reach a grim milestone with Covid-19 related deaths topping 100,000.  As the country tries getting back to normal health officials, warn of a possible resurgence of the virus this fall.

The big push in the overnight futures will finally breach the resistance that has held the indexes.  Amazingly the biggest part of price movement over the last week of trading has occurred in the overnight session with little to no price action during the typical retail session.  If you have ever needed proof that its institutions that move the market, take note of the 500 point gap this morning with rental unable to participate.   As always, be careful, chasing a vast opening gap.  Moves such as this easily create the fear of missing out, but let us make sure we see some follow-through buying remembering the possibility of a pop and drop if profit-takers take advantage of the price surge.  Although earnings season is winding down, there are still notable reports to be aware of this week as well as a busy economic calendar.

Trade Wisely,

Doug

US Partiers and More Talk of Vaccines

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Markets were generally listless on Friday as many traders had apparently already left for the long weekend. The major indices opened flat and that’s largely how they stayed all day.  The only real take-away from the daily chart is that resistance held again.  At the close, the SPY was up 0.19%, the DIA down 0.06%, and the QQQ up 0.35%.  VXX was down slightly to 34.35 and the T2122 4-week High-Low Ratio climbed further into overbought territory at 90.98.  The 10-year bond yield fell slightly to 0.657% and Oil (WTI) fell slightly to $33.25/barrel.

As had been predicted, HTZ filed for bankruptcy over the weekend.  The White House also threatened US sanctions on China and revocation of Hong Kong’s special trade status with the US.  This was in reply to a new Chinese security law which impacts Hong Kong.  China responded with a statement this means we are entering a new cold war.  The latest development has both sides now blocking flights from the air carriers of the other country, including DAL and UAL.

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On the Virus front, the global headline numbers are 5,611,540 confirmed cases and 348,328 deaths.  Brazil has become the new epicenter of the pandemic with a runaway infection rate and now has the second most number of cases to the US.  As a result, over the weekend the US had to impose travel restrictions on people who are from or who have visited Brazil.  Elsewhere, an ex-officio member of the ECB said they are likely to add more stimulus on top of the recently announced $817 billion plan.  (The next ECB meeting is on June 4.)  In Germany, Lufthansa received a $10 billion bailout from the government, which also gives the German government a 20% stake in the airline.  Finally, the UK also began easing Monday.

In the US, we have 1,706,226 confirmed cases and 99,805 deaths.  All 50 states have reopened at least partially now.  On Sunday, data showed that for average daily new case counts, 19 of the states have rising rates, 23 states are holding relatively steady, and 8 states have rates trending downward. Meanwhile, Boston Fed Pres. Rosengren announced the Fed will begin its lending program to mid-sized companies over the next 2 weeks.  This is similar to the PPP loan/grant program, but focused on larger companies (15,000 employees or less).   This came as a White House Economic Advisor told reporters the US Unemployment rate may still be over 10% in November.

Overnight, Asian markets were strongly green as vaccine hopes overrode fear from China/US tensions.  Europe is also green for the most part, but not quite as strongly so far today.  As of 7:30 am, US futures are also pointing to a 1.5%-2% gap higher at the open.

Major economic news on Tuesday is limited to conf. Board Consumer Confidence and April New Home Sales (both at 10 am).  Major earnings reports are also light with AZO, BNS, BAH, and ESLT reporting before the open.  KEYS and VSAT report after the close.

Everybody feels good after a long weekend and that rings true for the markets as well. With hope for a vaccine and seeing crowds shopping and partying again all weekend, Tuesday is looking like a bullish start to the week. However, the “gap and chop” has been real for months. There is also no evidence for any of the vaccines (just hope that we may see some evidence in several months). And while America revels in its freedom, it does so despite the best advice of experts (not because of it).  So, the only guarantees are uncertainty and volatility.  Watch the short-term chart and don’t hesitate to lock in profits.  Above all, don’t chase or predict, and remain cautious about longer-term swing trades.

Ed

Trade ideas for your watchlist and consideration: INSG, TWLO, ETSY, RRC, AR, TFX, EBAY, BCRX, GRUB, ILMN, DXCM, KMX, CSX. Trade smart, take profits along the way and trade your plan. 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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China cracks down!

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China cracks down

China cracks down on Hong Kong with new security laws causing a nasty selloff of more than 5.5% overnight.  Tensions between the US and China appear to be growing with the US Senate passing legislation the could restrict Chinese companies from listing and raising money in the US.  As we slide into a 3-day weekend, plan your risk carefully and expect lighter volume as investors pack up early to take advantage of the time off.

Asian markets close in the red across the board as they reacted to a sharp selloff in Hong Kong due to a China crackdown.  European markets are also seeing red this morning as they monitor the rising US-China tensions.  US Futures point to modest declines this morning with ahead of light earnings and an economic calendar.  Plan your risk carefully as we slide into what could be a news-driven weekend.

Economic Calendar

Earnings Calendar

On the Friday earnings calendar, we have a light day with just 29 companies reporting.  Notable reports include BKE, DE, and FL.

Technically Speaking

Yesterday turned out to be just another day of choppy price action near price resistance levels with a slightly bearish lean.  Tensions appear to be once again in the rise between the US and China.  The Senate passed legislation on Wednesday to could restrict Chinese companies from listing on US exchanges.  They will also find themselves restricted in raising money from US investors unless they conform to regulatory and audit standards.  Hong Kong had big selloff overnight falling more than 5.5% because Beijing is planning a crackdown that many say take away freedoms, personal safety, and the rule of law.  China calls the new security law “highly necessary” to prohibit secession, subversion of state power, terrorism activities, and foreign interference. 

As we slide into a 3-day weekend, the bulls may find it challenging to continue to press for a resistance breakout as traders are likely packing up to head out early to enjoy the holiday.  We may, in fact, experience a bit of profit-taking to reduce risk and avoid the uncertainty of the long weekend.  I, for one, will we heading out to start my weekend early shortly after today’s open.  I wish you all a great day of trading and a wonderful weekend.  Stay safe, my friends.

Trade Wisely,

Doug