Markets gapped slightly lower Thursday on the news that we have had over 30 million new unemployment claims in the last 6 weeks (3.84 million this week) and consumer spending had fallen 7.5% year-over-year in March.  After that half percent gap down markets ground sideways and then lower to close about twice as far down as the open on indecisive candles. The SPY fell 0.93%, the DIA fell 1.31%, and the QQQ was flat at down 0.04%.  The VXX gained a bit to close at 37.87 and the TC2122 4-week High-Low Ratio fell slightly to still overbought 91.09.  10-year bond yield rose to 0.646% and Oil (WTI) jumped almost 27% to get back to $19.09/barrel.

After hours, the Justice Dept. said they are seeing initial indications of fraud in the SBA Payroll Protection Program and that it has begun an investigation.  Elsewhere, CA, NY, TX, IL, CT, and MA states have all applied for federal loans as their unemployment trust funds are running out of money.  These are among the 21 states that are now below federal recommended solvency guidelines.  CA, TX, NY, IL, OH, HI, and PA are all below half of the recommended minimum solvency.

On earnings, AMZN told shareholders they may want to take a seat before reporting a huge miss ($5.01 act. vs. $6.25 est.) on higher than expected revenue.  It also said the company expects to spend all operating profits from Q2 on COVID related expenses.  However, AAPL reported an earnings beat on flat revenue, but dropped guidance and said it had also burned through some of its massive cash hoard during the quarter. (iPhone revenue was down 7% year over year.)

On the Virus front itself, the global headline numbers are 3,325,957 confirmed cases and 234,501 deaths.  In Russia as numbers climb the PM (theoretically President Putin’s number two) has tested positive.  At the same time, UK PM Johnson said his country was “past the peak,” but he did not want to risk a second peak and was thus not ready to announce a roadmap to lift restrictions and he will ask the public to wear masks when they do open.

In the US, we have breached the million-case mark, with 1,095,304 confirmed cases and 63,871 deaths.  Despite these numbers, 31 states will be at least partially open by this weekend.  However, Dr. Fauci says he is worried that states are moving too fast and large portions of the public are also not following distancing guidelines.  At the same time, the White House has not signed off on CDC guidelines that require altered ways of life.  Instead, the President said he wants things to be “the way they were” because he doesn’t want half-empty restaurants, stadiums, or other businesses.  Time will tell, but that approach does not model well.

Overnight, both Asian and European markets were closed for the May Day worker celebration.  However, the US will be open and as of 7:30 am, US futures are pointing to a significant gap lower at the open. 

The major economic news for Friday is limited to Apr Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  In earnings, ABBV, AON, CBOE, CHTR, CVX, CLX, CL, EL, XOM, HON, HUN, IMO, JCI, LYB, NWL, PCG, PSX, and WY all report before the open.  Only BRK.B reports after the close.

The uptrend continues with even down days being nothing but black candles in an uptrend.  However, profit-taking after window-dressing April may be in-store today. The bulls clearly continue to focus on the good (and hope) and ignore the bad news.  Still, gaps and volatility remain the norm and we should expect bad economic news to continue.  All we can do is remain focused and trade the chart in front of us.  Just bear in mind we either need to be fast (day trade) or slow (longer-term holds) in a market that does not match the data.  Be very cautious about swing trades, unless you can handle significant short-term pain.  Finally, it is Friday.  So, take some profits and reduce your risk going into the weekend ahead. 

Ed

No Trade Ideas for today 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

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 bulls ignored bad news and latched on to questionable hope.  The Q1 GDP shrank by 4.8%, but futures spiked on the news.  Markets opened with a 2% gap higher and then rallied on news of encouraging results from a preliminary trial of a treatment drug for COVID-19.  On the day, the SPY was up 2.60%, the DIA up 2.22%, and the QQQ up 3.55%.  VXX fell to 36.72 (the lowest level it has seen for nearly two months) and the T2122 remains pegged at 99.06. Oil (WTI) rebounded 23% on hope of renewed demand to close at $15.20/barrel and the 10-year bond yield also rose slightly to 0.625%.

During the day, the government jumped on the GILD (remdesvir) news as the FDA isn’t waiting for more proof and announced it will make the drug available to patients just as soon as possible.  This is quite the leap considering the trial showed an improvement in only 50% of patients and even then, only at a certain treatment course (not as much with longer length of treatment).  However, Dr. Fauci (NIH) said it was “quite good news” that the drug can reduce hospitalization from 15 days to 11 days on average and may (data less certain) reduce the mortality rate (from 11.6% to 8%), even if only effective in half the cases.  So, no magic bullet, but a step in the right direction.

The Fed also left rates unchanged and they will continue buying bonds.  This was as expected and the more important point was the forward guidance where Fed Chair Powell said the economy will continue to need Fed support for some time and the Fed will act forcefully to do more as needed.  He also pledged to keep rates near zero until full employment and inflation come back.

On earnings, FB soared after-hours on reporting stable ad revenue and a 18% year-on-year revenue growth, this in spite of a 4 cent earnings miss.  MSFT also rose on a 15% increase in sales and a beat on both top and bottom lines.  The same was true of QCOM, which also beat on both lines, but warned they forecast a 30% drop in phone shipments in Q2.  Bear in mind that many major financial news outlets report that the analyst estimates are worthless this quarter and of even less value for next quarter as most companies have completely dropped forward guidance and major Wall Street Industry Analysts have given up with the gaming.  So, don’t focus on earnings reports as an indication of anything but a news event.  Trade the chart alone and be fast.

On the Virus front itself, the global headline numbers are 3,235,722 confirmed cases and 228,605 deaths. In Italy, 12.4 million workers have asked for emergency funds from their government.  In good news, in China, road traffic in Beijing and Shenzhen is heavier now than it was a year ago while Shanghai is almost the same.  This implies that s economic activity (and oil demand) has resumed at the same pace as before the virus shutdowns.  Meanwhile, in Japan, the government has extended the national emergency for another month (originally to end May 6) as their outbreaks continue.

In the US, we have breached the million-case mark, with 1,064,572 confirmed cases and 61,669 deaths.  However, the priority is now no longer the virus, but economic recovery.  Toward this, the President said that the federal social distancing guidelines will “fade out” when asked about extending them. The VP said they were “very much incorporated” into the voluntary reopening guidelines (that many states and even more people haven’t adopted as they move to reopen more quickly). Still, the President said he is “very much in favor of what they (Governors who are opening up their states) are doing” as you’d expect him to be with his changed focus.

Overnight, Asian markets were green, with the lone exception of India.  However, in Europe, the opposite is true as markets are in the red so far today, with the exceptions of Finland and Denmark.  As of 7:30 am, US futures are mixed, pointing to a 1% gap up in the QQQ, but flat opens in the DIA and SPY. 

The major economic news for Thursday includes Mar. PCE, Q1 Employment Cost Index, Mar. Personal Spending, and Initial Jobless Claims (all at 8:30 am) and April Chicago PMI (9:45 am).  On the earnings front, MO, AAL, ABMD, BAX, CHD, CI, CMCSA, COP, DAN, DOW, ETN, BEN, GPN, HBI, ICE, IDXX, IP, K, KHC, LKQ, MMC, MCD, TAP, MCO, NLSN, PH, PNR, PWR, RMD, SO, SWK, TPR, TFX, TXT, TWTR, VMC, WLTW all report before the open.  Meanwhile, AMZN, AMGN, AAPL, AJG, BMRN, COG, CXO, EMN, EIX, FBHS, FTV, GILD, HP, ILMN, MGM, MOH, PRGO, PSA, SGEN, SYK, UAL, V, WDC, WHR, X all report after the close.  

The 6-day uptrend remains intact, as Bulls clearly are seeing the good and ignoring the bad news.  Gaps and volatility remain the norm and we should expect bad economic news to continue.  So, all we can do is remained focused and trade the chart in front of us.  Just bear in mind we either need to be fast (day trade) or slow (longer-term holds) in a market that does not match the data.  Be very cautious about swing trades, unless you can handle significant short-term pain. 

Ed

No Trade Ideas for today 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

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 gapped markets higher at the open Tuesday, but after that, the bears were in control.  The big dogs of tech (GOOG, AMZN, FB, MSFT, AAPL) led markets lower all day, with some of the strongest selling taking place the last 15 minutes. On the day the SPY printed a Dark Cloud Cover and the QQQ an Evening Star.  Both signals coming at resistance levels.  At the close, the SPY was down 0.47%, the DIA down 0.12%, but the QQQ down a big 1.88%.  The VXX was only up slightly to 39.07 while the T2122 4-week High-Low Ratio remains in nose-bleed territory at 97.82.  Oil (WTI) closed down only slightly to $12.71/barrel while the 10-year bond yield also fell a bit to 0.611%.

During the day the President issued an executive order to force meat processing plants to remain open using the Defense Production Act.  He mentioned TSN in particular after their call for help, but the idea is to force meat supplies to remain intact, while also removing any liability problems from the companies (his words).  The move also helps the large livestock producers who were facing massive culls (about 160,000 animals per day) if they had no place to ship market-ready animals.

After the close the Fed reached out to banks to discuss how they should implement their own $600 billion “small business” (up to 10,000 employees and $2.5 billion in revenue) loan program.  GOOG/GOOGL also posted a 13% revenue increase and also beat reduced earnings estimates for the quarter.  Still, they also said their major cost-cutting efforts will remain in place (due to an expected dramatic reduction in advertising demand in Q2).  For its part, AMD posted a miss on both the top and bottom lines.  Meanwhile, F warned of a 15% revenue decline and said that it expects to lose $5 billion during the second quarter.  However, F also said it thinks it has sufficient cash to make it through the virus/recession without seeking to raise more money.

On the Virus front itself, the global headline numbers are 3,152,556 confirmed cases and 218,491 deaths. In Europe, Greece, Portugal, Austria, and France all announced plans to begin slow economic reopening in the next week.  However, Russia admitted to shortages of protective gear and President Putin said the country faces a new and grueling phase of the pandemic. Ominously, Germany’s “R-nought” (how many people each infected person then infects) is now back up to 1 (from 0.75) after a week of reopening. Any value over 1 means the spread is out of control again.

In the US, we have breached the million-case mark, with 1,035,765 confirmed cases and 59,266 deaths.  Dr. Fauci (NIH) told CNN that everyone who needs a test will be able to get one in another 5-6 weeks (early June), but he stressed there is a difference between “needs” and “wants.”  Meanwhile, the President indicated he would block federal aid to states unless they take action against “sanctuary cities” in an attempt to use the crisis to get his way on the immigration issue.

Overnight, Asian markets were mixed, but mostly green.  In Europe, the same is true as markets are wavering on either side of flat so far today.  And as of 7:30 am, US futures are pointing to an uneven gap higher at the open, with DIA up 0.85%, SPY up 1.1%, and QQQ looking at a 1.5% gap up. 

The major economic news for Wednesday includes Q1 GDP (8:30 am), Mar. Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), the FOMC Rate Decision and Statement (2 pm) and the FOMC Chair Presser (2:30 pm).  On the earnings front, ADP, AMT, ANTM, AVY, BA, BSX, CME, GRMN, GD, GE, HAS, HLT, HUM, LHX, LH, MKTX, MAS, MA, NSC, NOC, R, ROL, SHW, VLO, and YUM all report before the open.  Then after the close, AFL, ALGN, ADM, CCI, DRE, FB, HIG, HOLX, MSFT, QCOM, RJF, TSLA, URI, VRTX, and EBAY all report.

The 5-day uptrend remains intact, but resistance may be proving itself in the major indices.  Gaps and volatility remain the norm and we can expect bad economic news.  However, the Bulls clearly have had the desire to ignore bad news and look toward a rosy future down the road.  Remain focused and either trade fast (day trade) or slow (long-term holds).  Be very cautious about swing trades, unless you can handle significant short-term pain.  

Ed

Trade Ideas for your consideration and watchlist: GIS, CAT, NUE, AMAT, PGR, ZTS, CDNS, CTXS, MSI. 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

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 were in charge again Monday, apparently on optimism as various states are now reopening parts of their economies.  Markets gapped about 0.75% at the open and meandered upward slowly most of the rest of the day.  Interestingly, the tech-heavy Nasdaq lagged on the day as it traded sideways and down from its gap slightly.  On the day, the SPY gained 1.46%, the DIA gained 1.43%, and the QQQ gained 0.80%.  The VXX fell back to 38.44, but the T2122 4-wk. High/Low Ratio is now very high into overbought territory at 97.32.  The 10-year bond yield rose slightly to 0.664%.  All this occurred while Oil (WTI) got crushed again, losing 24% to close at $12.88/barrel.

After the close, the Fed announced it is expanding its municipal bond-buying program to include states, counties, and smaller municipality community bonds.  This is seen as a necessary stop-gap since there is at least some opposition (notably Sen. Majority Leader McConnell) on Capitol Hill to relief for states and then Monday the President publicly asked why the federal government should bail out the “poorly-run Democratic states.”

In business news, TSLA reversed itself from early in the day and cancelled their plans to request workers to resume work at their California plant this week.  On the food front a third of American pork processing capacity is closed and 20% of beef and chicken capacity is shit as well.  One major plant was forced to kill 2 million birds earlier this month due to a lack of workers to process them.  TSN CEO had said Sunday that he feels the US food supply chain is close to breaking as millions of pounds of meat will simply disappear from stores as a result of closures.

On the Virus front itself, the global headline numbers are 3,081,502 confirmed cases and 212,337 deaths. The WHO reminded the public that the pandemic is far from over.  They said they were specifically concerned about new case trends in Eastern Europe, Latin America, and Africa.  Meanwhile, Russia said that any call for a reopening date would be nothing but a “shot in the dark” at this point.  In the UK, PM Johnson said it is still too risky to relax their COVID-19 lockdown.

In the US, we have breached the million-case mark, with 1,010,507 confirmed cases and 56,803 deaths.  The administration announced guidelines where it hopes to see tests reach just 2% of the public.  These guidelines require states to provide the vast majority of tests while the federal government acts as the “supplier of last resort” for testing that 2% of people.  At the same time, the President claimed the federal parts of the plan are mostly done, since they will just be a back-stop. 

Overnight, Asian markets were mixed, but lean to the green side.  In Europe, markets are strongly green across the board so far today.  And as of 7:30 am, US futures are pointing to another one percent gap higher at the open. 

The major economic news for Tuesday is limited to Mar. Trade Balance and Mar. Retail Inventories (both at 8:30 am) and Conf. Board Consumer Confidence (10 am).  However, on the earnings front, MMM, CAT, CNC, GLW, CMI, DHI, DTE, ECL, HOG, IQV, MRK, MSCI, NUE, OMC, PEP, PFE, ROK, ROP, SPGI, SIRI, LUV, TROW, TEL, UPS, WAT, and XRX report before the open.  Then after the close, AKAM, AMD, GOOG, GOOGL, BXP, CHRW, CERN, CSGP, DXCM, F, JNPR, MXIM, MDLZ, OKE, and SBUX all report. 

The uptrend remains intact.  However, resistance remains just above and gaps remain the norm.  Bulls clearly want to run and are in ignore bad news more again.  Still, there are just as many bad economic reports, dividend and guidance cancellations, and potential for another new wave of infections than ever.  In this environment, traders need to continue to remain focused and either quick (day trade) or slow (long-term holds).  Be very cautious about any swing trades you take in this market, unless you can handle significant short-term pain. 

Ed

Trade Ideas for your consideration and watchlist: KSS, GL, WYNN, DLTR, FIVE, SNAP, SCHW, GS, FDX, STZ, MKC, HAL 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

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 saw a half percent gap higher at the open, fading back down to the previous close and then from 11am into the close a strong rally that saw us close near the highs.  For the day, the SPY was up 1.39%, the DIA up 1.17%, and the QQQ up 1.58%.  The VXX closed down to 41.52 and the T2122 4-week High-Low Ratio slid back down to the edge of overbought territory at 79.82.  The 10-yr bond yield fell slightly to 0.606% and Oil (WTI) kept its rally going, closing at $17.18/barrel.  However, for the week, we saw large Doji candles that were down for the first time in 3 weeks across all three major averages.

Over the weekend several major analysts and fund managers commented that they feel the market is over-valued and due for a drop.  These include people like Mohamed El-Erian, Carl Icahn, David Tepper, and others.  They point to four premises for their stance.  First, they feel the market simply has not and cannot grasp how much damage has been done to the economy.  Second, they believe a major debt default crisis is still in the offing.  Third, they feel outbreaks are inevitable during “reopening” and, even if contained, these will cause market fire sales.  Finally, they point to the wrong groups leading the market for a “real” recovery.  (According to them, it should be financials, durable goods, and retail leading the way, not healthcare, technology, and utilities as we’ve actually seen.)  For those reasons, they expect more downdrafts in the short-term and, in the longer-term, feel it will take 3 years to return to “peak earnings” again. Whether these “experts” are right, wrong, or just trying to talk themselves into a better position is irrelevant.  However, the ideas are worth considering when deciding how much of your account to have invested in this market.

On the Virus front itself, the global headline numbers are 3,017,776 confirmed cases and 207,722 deaths.  In Europe, food prices are a concern as Russia has halted wheat exports for now and drought is impacting the current growing season.  However, in Spain there was a ray of hope as they began to allow limited outdoor exercise and say, if the number of new cases keeps falling, it will ease further on May 1.  In Asia, Japan now has the largest number of new daily cases as some of its cities and prefectures have now reinstated lockdowns.  However, India has eased a bit, opening residential-area shops under certain restrictions. 

In the US, we are approaching the million-case mark, with 987,322 confirmed cases and 55,415 deaths.  It’s worth noting that Friday saw the largest number of new cases reported so far in the US.  However, the epicenters of New York and New Jersey continue to show a decline in their new case rate.  Over the weekend, Dr. Fauci (NIH) said that the US needs to double testing before wide-spread reopening happens, but also that he hopes we can do this doubling in the next couple weeks.  In the supply chain, 2 more major meat processing facility closed. So, now about 25% of US meat production is shut due to the virus.  On the other hand, a number of states (mostly along political lines) like Georgia, Mississippi, Oklahoma, and Texas that have started reopening many businesses and up to 20 will have a partial opening by the end of the coming week.

Overnight, Asian markets were mostly green with the exception of India which was just on the red side of flat (-0.25%).  In Europe, markets are strongly green across the board so far today.  And as of 7:30 am, US futures are pointing to a one percent gap higher at the open. 

There is no major economic news scheduled for Monday.  However, on the earnings front, AMG, AWI, CMS, CHKP, CNX, DORM, LECO, IR, report before the open.  Then AVT, AMAT, AMKR, CE, CINF, CNI, FFIV, KDP, NOV, NXPI, PFG, PPG, PKG, SANM, and UHS report after the close.

The uptrend remains intact.  So far, earnings have been “good” against dramatically lowered expectations, but companies continue to cancel guidance and report lower year-on-year earnings.  However, with over 140 of the S&P reporting and the Fed meeting again this week, we may see a holding pattern Monday and Tuesday as traders wait to see which direction the wind is blowing. 

All this is to say we still have a bullish market, at or near resistance, and facing volatile news-driven intraday swings and overnight gaps.  In this environment, traders need to continue to remain focused and either quick (day trade) or slow (long-term holds).  Be very cautious about any swing trades you take in this market unless you can handle significant short-term pain. 

Ed

Trade Ideas for your consideration and watchlist: HII, ABT, ROP, SCHW, DOMO, NLOK, EXPD, CSCO, INTC, HD, TSN. 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

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

Thursday was a bit of a roller coaster ride.  Markets gapped higher half a percent, despite the new unemployment claims.  It then rallied until about 10:45 am when the leak was reported by the UK publication Financial Times that said the GILD drug Remdesivir has failed its first random clinical trial.  The bears sold that news the rest of the day to close near Wednesday’s close.  This produced ugly candles in all 3 major indices, with high wicks and closes near the lows.  For the day the market was flat with the SPY down 0.01%, the DIA up 0.13%, and the QQQ down 0.21%.  The VXX also lost slightly to 44.06 while the 10-yr bond yield fell to 0.603% and Oil (WTI) rallied again, up 22.5% to $16.87/barrel.

Jobless claims came in at 4.4 million (4.3 estimated).  That takes the 5-week total to over 26 million claims, which corresponds to a 23% unemployment rate.  However, after the close, the House passed the $484 billion “Relief Bill 3.5.”  This came after a largely party-line vote to create a new panel with the authority to investigate the federal response to the pandemic.  (Republicans seem to prefer to just trust the Administration, while Democrats have no such trust.)

On the Virus front itself, the global headline numbers are 2,745,786 confirmed cases and 191,806 deaths.  In Germany, shoppers did not come out in numbers even though PM Merkel lifted their restrictions.  The number of new cases in Europe continues to reduce in rate.  However, in Asia, a second wave seems to be picking up steam in places as Indonesia reported its largest jump in new cases as did Singapore (mainly foreign workers the keep in dormitories).

In the US we now have 886,709 confirmed cases and 50,243 deaths.  During the day, Dr. Fauci said he is not overly confident at the moment that we have what it takes (in terms of the testing capacity to support a successful reopening) and that we need to continue significantly ramping up testing and tracing capability.  However, at the daily presser, President Trump said he disagrees with Dr. Fauci (his chief infectious disease expert) and that we’re doing great on testing. Still, he also said he may extend the social distancing guidelines into early summer and possibly beyond.  This all comes as the first major openings start today in the state of Georgia.

Overnight, Asian markets were re across the board with the exception of Australia (+0.49%).  In Europe, markets are also in the red so far today, with odd exceptions like the Swiss and Greeks).  However, as of 7:30 am, US futures are pointing to an open a half percent on the green side of flat. 

Friday’s major economic news is limited to Mar. Durable Goods (8:30 am) and Mich. Consumer Sentiment (10 am).  However, on the earnings front, AXP, FCX, PSG, SNY, VTR, and VZ report before the open. 

The uptrend of the last couple days continues begrudgingly.  Maybe this means we are climbing a wall of worry.  However, oil has stabilized nicely, gaining back quite a bit from its Tuesday massacre (strongly negative price) and this is a calming factor for markets.  Earnings continue to be “good” against dramatically lowered expectations, but companies continue to cancel guidance and cut budgets.  For example, GOOGL cut their advertising budget in half after the close and instituted a hiring freeze for both permanent and contract workers. 

All this is to say we still have an uncertain and volatile market, filled with gaps and news-driven intraday swings.  In this environment, traders need to continue to be very focused, and either be fast (day trade) or slow (long-term holds).  Be very cautious about any swing trades you take in this news-driven market.  Also remember it’s Friday, which is a great time to lock-in some profits and reduce risk going into 2 days of news cycle that cannot be addressed before Monday.

Ed

No Swing Trade Ideas for your consideration and watchlist for Friday. 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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