ADP Job Loss Numbers for May came in better than expected and that was all the bulls needed to control the market on the day.  We saw a 0.70% gap higher at the open and steady follow-through until the last 10 minutes of the day, when minor profit-taking caused us to close off the high.  On the day the SPY gained 1.30%, the DIA gained 2.06%, and the QQQ gained a mild 0.45%.  In all 3 cases, the bears could at least make a case that resistance is temporarily holding (all-time highs in the case of the QQQ), but there is no doubting who is in-charge in the marketplace.  VXX closed down to 31.11 and T2122 is even higher than the prior close at 97.98.  10-yr. bond yields rose to 0.751% and shockingly Oil (WTI) closed basically flat at $36.72/barrel.

During the day the next step in US-China tensions (trade war fear) took place as the US banned Chinese passenger airlines from flying to US destinations.  This is a tit-for-tat response to China’s ban of US airlines (DAL and UAL), which was itself a response to US moves in reaction to the Hong Kong Security Law situation. 

In business news, the CEO of PPC and executives of a smaller chicken producer (Claxton Poultry) were indicted for poultry price-fixing on Wednesday afternoon.   PPC stock was hammered as a result and the impact spilled over into TSN, which had no executives named in the indictments.

On the Virus front itself, the global headline numbers are 6,596,713 confirmed cases and 388,424 deaths.  In Europe, the ECB is set to increase stimulus (buying Euro country bonds) as and when the economic impact numbers dictate according to the ECB President.  Mexico has overtaken the US in terms of new daily cases of the virus, which is worrying for a country with far less than half the population and much less medical infrastructure.

In the US, we have 1,902,101 confirmed cases and 109,146 deaths reported to date. New cases in the state of TX were reported to be rising, now at +2.6% for the week.  In fact, new case numbers are rising again across the South (with Louisiana being an interesting exception).  DAL also announced it will cap plan capacity at 60% of pre-virus levels through September.  However, on the positive side, GM announced they will be at pre-virus vehicle production rates by the end of June.  Las Vegas has also opened its casinos and hotels at 50% capacity again as of today.

Overnight, Asian markets were mixed, but mostly green again.  However, European stocks are red across the board as of midday.  (The FTSE rebalanced the members of its indexes, which may have some impact in the UK.)  It is also worth noting that both Saudi Arabia and Russia are not backing away from production cuts previously announced now that oil demand has risen again. At 7:30 am, US futures are also pointing to a gap lower of 0.3%-0.5%.  

Thursday’s major economic news includes Apr. Imports/Exports, Initial Jobless Claims, Q1 Nonfarm Productivity, Apr. Trade Balance, and Q1 Unit Labor Cost (all at 8:30 am).  Major earnings reports are limited to CIEN, GIII, MIK, NAV, SJM, and TTC before the open.  Then after the close AVGO, CAL, COO, GPS, RH, and SAIC all report.

The bulls are still in control, but resistance and extension are very real at this point.  After an impressive 4-day run-up, a pause may be in the cards.  However, the trend and momentum are both in the bull’s favor.  Even protest tensions have eased as the non-peaceful episodes have died out.  Continue to stay focused on the short-term chart and don’t hesitate to lock in profits.  However, don’t bet against the trend unless you’re doing it to hedge.  Above all, don’t chase or predict.

Ed

Trade ideas for your watchlist and consideration. BA, MGM, WYNN, DRI, ERI, JPM, OIH, ORCL. 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

Once again, the bullish run continued Tuesday led by Energy as bulls have their eyes focused out on the future post-recovery.  After a small gap higher at the open markets ground sideways most of the day.  However, a strong late-day rally closed the market very near its highs.  On the day, the SPY was up 0.83%, the DIA up 1.02%, and the QQQ up 0.67%.  The VXX fell to 32.49 and T2122 remains very high at 96.59.  Oil (WTI) closed up over 4% to $36.90/barrel and 10-year bond yields climbed a bit to 0.684%.

In business news, WFC is worried about loan defaults.  As a result, they have stopped making loans to and through independent car dealerships, who they perceive to be servicing riskier customers than major brand dealerships.  In the process, WFC has had to drop hundreds of independent dealership customers.

The SBA announced that over $120 billion of PPP funds remain untapped.  After an initial rush in the second round, demand for the loans/grants dried up.   Small business organizations cited a fear of potential audits if a company takes the loans.  Meanwhile, IL became the first state to tap the Fed loan fund, requesting $1.2 billion for a one-year loan after their bond yields rose.

On the Virus front itself, the global headline numbers are 6,474,784 confirmed cases and 382,922 deaths.  In Japan, the government issued another “stay home” alert for Tokyo after a “jump” in cases.  (They had lifted restrictions on May 25.)  Italy proved that the US isn’t the only place with conspiracy theorists as hundreds of protesters gathered in Rome to shout “Liberty” (calling for complete opening and dropping of restrictions) while their leaders claimed the pandemic never existed and is some global conspiracy.

In the US, we have 1,881,256 confirmed cases and 108,062 deaths reported to date. CNBC reported an industry group that cited a survey of restaurants found the number of transactions was only down 18% (year on year) as of the end of May.  Of course, carryout and fast food in particular are bouncing back fast, with full-service still down just over 40%.  Meanwhile, Amazon has announced plans for a major sale date (similar to Black Friday) for June 22 with the goal of “jumpstarting sales.”  It is likely that other retailers will join the movement rather than yield all the sales to AMZN.

Overnight, Asian markets were in the green across the board yet again.  European stocks are following suit with the major bourses each up 1-2% as of midday.  At 7:30 am, US futures are also pointing to gap higher of 0.3%-0.6%.

Wednesday’s major economic news includes May ADP Non-farm Employment (8:15 am), May Service PMI (9:45 am), Apr. Factory Orders and May ISM Non-Mfg. Employment (both at 10 am), and Crude Oil Inventories (10:30 am).  The only earnings reports of note are AEO, CNK, EXPR, GOOS, CPB and VRA before the open.  Then after the close CLDR, FOSL and GEF report.

The bulls still see nothing but blue skies and optimism as they look past protests and pandemic damage.  The trend, momentum, and a bit of room up to next resistance in the charts should give the bulls the edge again Wednesday.  Even intraday swings have lessened very recently.  Continue to stay focused on the short-term chart and don’t hesitate to lock in profits.  However, don’t bet against the trend unless you’re doing it to hedge.  Above all, don’t chase or predict.

Ed

Trade ideas for your watchlist and consideration. M, EOG, HAL, CF, MGM, HD, CB, AJG, NCLH, INO. 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

The bulls just kept on chugging Monday.  A slight red open was met with steady, but slow buying until 2 pm.  From there, stocks ground sideways to slightly down into the close.  On the day, the SPY gained 0.41%, the DIA gained 0.39%, and the QQQ gained 0.30%.  VXX was essentially flat at 33.42 and T2122 climbed further into the overbought territory at 93.18.  The 10-year bond yield climbed a bit to 0.667% and Oil (WTI) also gained slightly to $33.56/barrel.

Markets seem to be focusing on the impending (and further out) economic recovery, regardless of current civil unrest and government reactions.  UBER, LYFT, and SBUX are the latest to say the unrest is impacting their operations, as they are city-focused companies. In Silicon Valley, CEO Zuckerberg will address a company “town hall” for FB after several hundred employees staged a “virtual walkout” partially related to this on Monday. 

On the trade war front, China has apparently ordered state-controlled companies to stop ordering US farm products (particularly soybeans).  This seems to come in retaliation for the US response to a new security law covering Hong Kong.  However, it is likely just the renaming of an actual lack of need that will reverse once China’s economy has fully recovered and their Pork producers have herds re-established.  (China has been fighting African Swine Fever for close to a year and soybeans are a primary hog feed.)

On the Virus front, the global headline numbers are 6,394,415 confirmed cases and 377,971 deaths.  While Brazil remains the epicenter of the current wave, Rio de Janeiro will begin opening its economy today.  Meanwhile in Europe, Spain, Italy, and the UK all reported their lowest number of new cases or deaths since early in the outbreak.

In the US, we have 1,859,693 confirmed cases and 106,927 deaths reported to date.  In a worrying sign, CA reported that their number of new cases has risen 11% in the last 5 days.   On the other side of the country, the NY and NJ numbers continue to improve as they are opening further.  The Congressional Budget Office released estimates Mondays that coronavirus will cost the US 3% of its economic growth (over the course of 10 years).

Overnight, Asian markets were in the green across the board again.  So far Tuesday, European stocks are following suit with the major bourses each up 1-4% at midday.  As of 7:30 am, US futures are pointing to gap higher of 0.6%-0.7%.

There is no major economic news on Tuesday.   Earnings reports are also very light with only a few that could be considered major companies. On tap for the day are DBRL, DCI, and DKS before the open as well as CRWD and ZM after the close.

Once again, the bulls see nothing but blue skies and optimism.  They certainly continue to have the momentum and trend.  However, we still see big intraday swings remain on most days.  Keep your eye on the short-term chart and don’t hesitate to lock in profits.  However, don’t bet against the trend unless you’re doing it to hedge.  Above all, don’t chase or predict.

Ed

Trade ideas for your watchlist and consideration. MAR, RCL, FAS, GRUB, DISH, ALGN, TLRY, HLF, JD, ADP. 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

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.)

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

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

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.

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

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