On Friday, concerns over coronavirus spread led to a rough day on Wall Street.  The major indices all gapped lower and saw follow-through as the bears were in control most of the day.  At the close, the SPY was down 1.03%, the DIA down 1.04%, and the QQQ down 1.92%.  The VXX climbed on the day but closed back below 15 while the T2122 remains in the mid-range.  None of the 10 sectors were in the green, but Technology, Consumer Cyclical, and Energy took by far the worst beatings.  This all gave us the first Weekly black candle in the QQQ since November.

However, it is worth noting that the bulls did push markets up off the lows during the last half hour.  So, the 50sma held in the DIA and potential support levels held in the SPY and QQQ.  The point is that we were extended to start and due for some pullback.  However, we didn’t see a lot of bulls jumping out of windows and we are still within about three percent of all-time highs.

After the close Friday, it was announced that WFC had agreed to pay $3 billion in a settlement with the Federal government to avoid criminal charges over their decade-long fraudulent sales practices.  GOOGL also reached a settlement with all 50 state attorneys general to allow outside consultants to dig into Google business practices (as part of an anti-trust investigation), but force some confidentiality agreements on the consultants.  This will pave the way for the antitrust investigation to proceed.

Over the weekend the coronavirus outbreak continued.  The count is now at 80,000 confirmed cases and 2,600 deaths attributed to the virus.  However, these numbers are suspect as China has revised the methods they use to count cases three times since the original report.  In addition, both the Chinese and some other governments are still downplaying the impact.  For example, at the G20 Summit, the I.M.F. said the outbreak would only trim 0.1% off their global growth forecast.  China went so far as to urge businesses to reopen and ease restrictions on travel in Wuhan.  (The easing of travel lasted less than three hours before they had to lock things down again.) 

However, the W.H.O. is reporting an alarming jump in cases outside of China.  For example, South Korea saw exponential growth in cases this weekend, with a 20-fold increase to over 750 cases and 12 deaths as of Sunday night.  Iran and Italy have also seen outbreaks.  The Italian outbreak (160 confirmed cases) has seen Austria close its border with Italy…and both are inside the EU.  The same is true for Iran (61 cases and 12 deaths) with Turkey closing its Iranian border.  Ominously, the W.H.O.  says the Iranian cases are a particular concern because their cases come from different areas of Iran and all from people with no direct connections to China.

Overnight, Asian markets were red across the board, with South Korea (-3.87%) and Australia (-2.25%) taking major hits.  Europe is also bright red from end to end so far, with all the major bourses down well over 3.5% at this point.  As of 7:30 am, U.S. futures are also pointing toward a large gap lower of between one and two percent in the major indices.

There is no major economic news scheduled for Monday.  On the earnings front, there are no major reports before the open.  However, HPQ, INTU, KEYS, and OKE all report after the close.

The bears did create some follow-through on Friday, but the bulls didn’t throw in the towel.  However, the spread of the virus impacts far beyond Chinese borders may finally be negativity that the bulls cannot ignore. The weekend business and especially virus news are heavily in the bear’s favor.  So, we remain not too far from all-time highs, but it looks like a very rocky morning coming up for the bulls.

Unless you are extremely quick, nimble and experienced, this market is not the river you should be trying to swim.  Manage the trades you are in and think twice about chasing anything in such a volatile market.  Use caution. Take profits and keep moving stops.  Remember that sitting on your hands can sometimes be the best move you can make.  Whatever you do, DO NOT CHASE and don’t lose your discipline.  Our job is to just rack up consistent gains, not find winning lottery tickets.

Ed

Due to market conditions this morning, there will be no trade ideas today. Manage the trades you are in now. 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

After a mild open, there was a sharp and strong selloff in the late morning.  Some sellers may have been reacting to a rumor of a spike in coronavirus cases in Beijing (away from Wuhan).  Regardless of the cause, this spike downward put the bears in control for the day.  However, as usual, the bulls spent the rest of the day slowly and steadily working to recover.  That whipping action took its toll on many traders.

At day end, the SPY was down 0.41%, the DIA down 0.45%, and the QQQ down 0.93%.  All three major indices printed indecisive candles with large lower wicks.  While the VXX remains very low (essentially no market fear), at 14.04, Gold and Bonds were both higher on risk-haven trades.

In coronavirus news, the headline numbers are now 77,000 confirmed cases and 2,250 deaths.  (Beware the numbers as there was a third round of debate and change in China’s reporting methods overnight.)  While that rumor of a spike in cases in the Chinese Capital was unconfirmed, there definitely has been an outbreak in South Korea, which has now placed two provinces under “special authority” due to health emergencies and also reported its first death.  Japan also reported two deaths and growth in the number of new cases.  Iran also reports an outbreak with 13 deaths, over 500 confirmed cases, and their national health agency said it is likely the virus now exists in all major Iranian cities. Still, the vast majority of cases remain in China. 

However, the W.H.O. held a news Conference Thursday to say that while this is true now, it may not be the case for long.  They also called for more global funding to fight the disease.  In addition, they cast more doubt on Chinese data by flat-out saying that most of the “new” cases and deaths being reported daily are actually days to weeks old.

Overnight, Asian markets were mixed but mostly in the red.  Europe is also mixed, but may be leaning just a little to the green side at this point.  As of 7:45 am, U.S. futures are also pointing toward a lower open by three-tenths of a percent in the major indices.

Friday’s major economic news includes Feb. Mfg. PMI and Feb. Services PMI (both at 9:45 am), Jan. Existing Home Sales (10 am), and four Fed speakers throughout the day.  The only major earnings on the day are DE and PNW, both before the open.

While there was a brief pounce by the bears mid-day Thursday, the bulls refused to give ground easily.  So, we remain very near all-time highs, but showing some signs of consolidation or even an early glimpse of pullback.  However, so far at least, it hasn’t paid for those who bet against the bulls and the trend still remains bullish.

Remember that Friday is payday.  So, take profits and keep moving those stops.  It pays to plan the trade and trade the plan.  Don’t chase or get complacent and let a profitable position head South.  Do not forget that as traders, our job is to keep racking up base hits.

Ed

No Trade Ideas for Friday. It’s payday, so take some profits and make sure you are set for weekend headline risk. 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 are just relentless.  A gap higher (strong one in the QQQ) led to a green day in the markets.  The DIA was up only 0.39%, the SPY up 0.48%, and the QQQ up a strong 0.96%.  The led to another new all-time high close in both the SPY and QQQ.  While the SPY and DIA were not decisive, the QQQ put in a strong white-body candle.  Again, the VXX shows no fear in the market at 13.56 and the T2122 remains in the mid-range at 61.13.  The long and short of it is that nothing has slowed the bulls much in this run.  This is the case despite the NASDAQ being well extended and the large-cap indices having consolidated or even looked toppy recently.

On the news front, the Producer Price Index for January came in much higher than expected (highest in 18mo), but Building Permits were also higher than expected.  The Fed speakers and FOMC Minutes both confirmed that no rate changes are expected this year.  However, it also confirms that the Fed does see coronavirus as a global economic threat.  Both Bloomberg and CNBC report that other analysts and firms also think the market is underestimating the virus impact, but so far the bulls could not seem to care less.

On the coronavirus front, the headline numbers are over 76,000 confirmed cases and about 2,150 deaths worldwide.  With that said, new cases reported in China continue to show a trend toward slowing growth.  However, China has changed the way they report cases again, which dramatically lowered the numbers from yesterday.  In terms of impact, there were rumors of the Chinese government either pumping money into or simply buying out their airline industry, which has been decimated by over least six weeks without flights.  In addition, 10 days after it was supposed to restart, Foxconn (AAPL main iPhone supplier) said it will cautiously restart production in its larger plants.

Overnight, Asian markets were mixed.  On the other hand, Europe is red across the board at this point in their day.  As of 7:45 am, U.S. futures are also pointing toward a mildly lower open, looking to open down less than two-tenths of a percent in the major indices.

Thursday’s major economic news includes Weekly Jobless Claims and the Feb. Philly Fed Mfg. Index (both at 8:30 am) and Oil Inventories (11 am).  On the earnings front, AEP, CPB, HSIC, HFC, HRL, LKQ, NEM, NCLH, PWR, SO, TFX, VTR, and VIAC all report before the open.  LNT, COG, ED, and SBAC report after the close.

The bulls haven’t even hesitated over coronavirus so far.  It certainly hasn’t paid for those who bet a pullback must take place.  However, more and more analysts are expecting that pullback to come.  Meanwhile, the markets just keep climbing that wall of worry.  This, of course, leads to a concern about overextension, especially in the QQQ.

So, the trend remains bullish and the major indices are all at or very near their all-time highs.  However, we need to keep in mind that the large-caps have been indecisive for a few days now, overextension is real, and Logic would tell us there will eventually be some market impact from a global event (particularly one devastating the second largest economy in the world).

So, remain cautious and continue to be nimble or hedged.  Just keep consistently taking profits and moving stops.  Plan the trade and trade the plan.  Don’t chase or get complacent and let a profitable position (or several) go South.  As traders, our job is to keep producing those singles and doubles, hit an occasional home run among a string of strikeouts.

Ed

Swing Trade Ideas for your consideration and watchlist: ZTS, MSI, CTSH, ALL, CLX, KO, WRB, ZBH, DHI, EHC, MSFT, ROL, CSX, MS, INFO. 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

After bad weekend news from PIR and AAPL, WMT missed expectations in the premarket Tuesday.  This caused a gap down at the open.  However, after a sideways grind in the morning, the bulls slowly climbed back up all afternoon.  The SPY closed down 0.26%, the DIS down 0.54%, and the QQQ up 0.04%, which was another all-time high close for the NASDAQ.  The SPY and DIA printed indecisive candles, while the QQQ was more bullish.  However, all three major indices are looking at least like they are consolidating, if not even a little toppy over the last four candles.

On the news front, CNBC reported that company stock repurchases (buybacks) are down so far this year in the slowest start since 2013.  This indicates companies are holding on to their cash, which is usually an indication of their own concern or at least uncertainty over their future performance.  As a point of reference, buybacks are down 30% from 2019 levels.  However, to be fair, 2019 was a record-breaking year for buybacks.

After hours, GS reported a study that found that almost all of the entire market’s earnings growth for Q4 came from the five mega-cap tech companies (AMZN, AAPL, MSFT, FB, and GOOG).  Russell 2000 earnings fell 7%, the S&P 500 earnings grew 2% on average…but those 5 companies (which are included in the S&P) were up 16%.  The report went on to say that those 5 stocks now comprise 18% of the S&P500 market cap and the growth has not been this concentrated since the 2000 tech bubble burst.

On the coronavirus front, MDLZ reopened some of its manufacturing plants in China as did GM and FCAU.  However, the W.H.O. continues to say it is too early to determine whether the spread is slowing inside China.  As another example, Adidas says seen an 85% drop in their business activity (sales and manufacturing) in the last month.  The impact numbers themselves continue to grow as now more than 75,000 confirmed cases have been reported and the death toll has risen to over 2,000 globally. Bear in mind that most of those cases are in China.

Overnight, Asian markets were green across the board.  In Europe, the bulls are running as well with green in all the major bourses.  As of 7:45 am, U.S. futures are also pointing toward a higher open of between a quarter and half a percent in the major indices.

Wednesday’s major economic news includes Jan. Building Permits, Jan Housing Starts, and Jan. PPI (all at 8:30 am), as well as the FOMC Minutes release (2 pm).  There are also a number of Fed speakers during the day.  On the earnings front, ADI, ETR, GRMN, GPC, and DISH all report before the open.  ALB, CAR, XEC, ES, HST, MOS, PXD, O, SNPS, and WMB report after the close.

The bulls have seemed to be running low on energy for the last few days.  However, there is has been no evidence that the bears can take advantage of this lack of bullish momentum.  This morning it looks like the bulls may try another little push.  The trend certainly remains bullish and all the major indices are still very near their all-time highs.  However, we need to keep in mind that markets have been indecisive for a few days now.

So, remain cautious and continue to be nimble or hedged.  Just keep consistently taking profits and moving stops.  Plan the trade and trade the plan.  Don’t chase or get complacent and let a profitable position (or several) go South.  As traders, our job is to keep producing those singles and doubles, hit an occasional home run among a string of strikeouts.

Ed

Swing Trade Ideas for your consideration and watchlist: BYND, HOME, TWTR, CNC, IPG, AKAM, BLL, CTSH. 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

In front of the long weekend, markets put in an indecisive sideways grind all day on Friday.  All three major averages printed Doji type candles with the SPY gaining 0.16%, the DIA losing 0.09%, and the QQQ gaining 0.29%.  This made for another new all-time high close in the SPY and QQQ.  The VXX was down again, closing at 13.52 and the T2122 rose a bit but remains in the mid-range at 71.59. 

Among the news stories that may have helped markets in the afternoon was a CNBC report that the White House is considering tax incentives to encourage more investing in the stock market.  This may have helped offset slightly worse than expected Industrial Production numbers from before the open.  The only Friday news on the coronavirus was that China had “sharply tightened” the already strict quarantine in Wuhan.  However, after the close, CNBC reported that 20% of the S&P 500 members had already warned that the virus would have an impact on operations, financial performance or both.

Over the weekend, PIR declared bankruptcy, but also released a statement that they had reached an agreement with lenders to provide it with $256 million to keep it afloat while it tries to find a buyer.  This comes six weeks after it reported both a loss and sales that were down over 11% from the prior year.  This may or may not provide a read-through to competitors like BBBY.  It is also worth noting that WMT missed it’s earnings on both the top and bottom line when it reported this morning.

On the coronavirus front, in some positive news, Macao reopened its casinos on Tuesday following a two-week shutdown.  In addition, the W.H.O. reported that the trends outside of China seem promising (whatever that means exactly).  However, the numbers continue to grow as more than 72,400 confirmed cases have been reported and the death toll has risen to nearly 1900 globally.

In terms of impacts, the event cancellations (such as annual conventions in Geneva, Switzerland) and new quarantines and travel restrictions (780 million people in China are subject to lock-down or some form of travel restriction related to virus prevention) continue.  AAPL also warned that it will not meet its January-released guidance for the second quarter.  They blamed iPhone supply chain constraints (China Foxconn operations) and reduced Chinese demand as the reasons.

Overnight, Asian markets were mixed, with Japan, Korea, Australia, and Hong Kong deeply in the red.  Meanwhile, Shenzhen was strongly green.  However, as of this point in their day, Europe is in the red across the board.  As of 7:45 am, U.S. futures are pointing toward a gap lower of half a percent across the major indices.

Tuesday’s major economic news is limited to NY Empire State Fed Mfg. Index (8:30 am).  However, there are some earnings, with AAP, ALLE, ECL, EXPD, MDT, VMC, WMT, and WAB all reporting before the open.

As we come back from a long weekend, it’s time to see if the bulls are ready to run again or we might see some pullback.  The trend continues to be strongly bullish and all the major indices are very near all-time highs (including even the IWM).  It certainly has not paid to fight the trend recently.  However, we are still a bit extended from averages and earnings news is not great. 

Just maintain your consistency. Keep locking in profits, being cautious and remaining nimble or hedged.  Remember, make the trade come to you, plan the trade and trade the plan.  Don’t get complacent and let a profitable position (or several) go South on you.  Our job is to keep producing singles and doubles, not a string of strikeouts and an occasional home run.

Ed

Swing Trade Ideas for your consideration and watchlist: NWL, SPGI, PYPL, FLO, FLDM, VSH, QRVO, BKE, DIOD, VIVE, IRWD. 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