Wednesday was another brutal, roller-coaster day in the market.  After futures went limit-down overnight, US markets opened on a 5% gap down.  The volatile intraday moves covered a 9% range and caused a trading halt when the circuit-breaker was tripped mid-morning.  However, prices closed up off the lows, with the SPY down 4.94%, the DIA down 6.60%, and the QQQ down 3.04%.  The VXX rose almost 18% to 69.00.  Oil was crushed during the day, closing down 24% at $20.37/barrel. 

The 10-year bond yield spiked sharply to 1.198% by day end, as overall interest rates rose.  This seems counter-intuitive with the Fed spending hundreds of billions of dollars to drive yields down.  However, Bloomberg reported the likely cause is the fact the federal government is increasing national debt just as fast or faster in order to provide relief, stimulus, and bailouts.  In addition, the public is selling everything, including bonds, to raise cash.  Regardless of the cause, rising rates are not good news for an economy starting into a big shock. So, we might expect Fed programs to increase pace even further in an effort to over-power the new government spending effect.

Late in the day, stocks did come up off their lows as the Senate finally passed the House-White House relief deal from last week.  (This isn’t the major stimulus bill, but rather the one to guarantee paid sick leave, paid family leave and increased funding for food programs and Medicaid.)  The larger stimulus bill(s) are still being haggled over between Republicans, Democrats and the White House.  Expect that larger stimulus plan to be the lead story for a couple of days as what is finally included is negotiated.

In ominous news, at the daily presser, Dr. Deborah Birx pleaded for Millennials to respect social distancing and quarantine measures.  This was prompted by data out of Europe showing that more young people are getting sick from the virus than had been previously believed.  In addition, the WHO report that 6% of infected children have had severe or critical symptoms from COVID-19 (as opposed to 19% for adults).

The global headline virus numbers rose to 221,450 confirmed cases and 9,000 deaths.  In Europe, Italy now has 35,720 cases with 3,000 deaths. Spain has 15,000 cases with 640 deaths, France has 9,150 cases with 265 deaths, Germany has 13,100 cases and 31 deaths. On this continued spread, Automakers and other industries closed all of their operations across Europe and the US on Wednesday.  In the UK, the country prepares for lock-down with closures of transit systems, schools, and businesses.  The ECB also announced an $819 billion dollar stimulus package (this caused US futures to jump well over 500 points from negative to positive on this news).

In the US, confirmed infections continue to grow, following the same exponential growth rate seen in Europe.  The totals are now 9,425 cases and 150 deaths.  Last night, NYC again lobbied the NY Governor to approve a shelter-in-place quarantine order for the city.  This came less than a day after the Governor said he wouldn’t allow this measure.  The NYSE also announced it will be closing floor operations as of Monday the 23^rd and go to fully-electronic trading due to a pair of infections found among floor traders trying to enter the floor.  

Overnight, Asian markets were down, with South Korea hammered 8.4%.  Europe is mixed, but the majors (FTSE, DAX, CAC) all down 1-2% so far in their day.  In the US, futures were volatile again overnight, swinging up and down repeatedly.  As of 7:45 am, the futures were pointing to another gap down of between 1% and 2%. 

On Thursday, the major economic news is limited to Weekly Initial Jobless Claims, the Mar. Philly Fed Mfg. Index, and Q4 Current Accounts (all at 8:30 am).  In earnings news, ACN and DRI report before the open, while LEN and CTAS both report after the close.

While the worst is yet to come in terms of cases, deaths and economic damage, it is important to keep in mind that we have fallen very far, very fast.  We are more than 40% off the mid-February highs in the SPY and almost 50% off those highs in the DIA.  So, expect the funds (who can handle pain) to start picking up some deals soon as long-term holds for their portfolio and suggesting the public do the same (maybe to protect their own moves?).

We remain in a very erratic and over-reacting market with a strong bias still to the downside.  Again, this is not a market to be Swing Trading.  Use this time to really learn the trading setups and vehicles (like option strategies) you will be using.  Refine your trading plans, put the time to work…but don’t be chasing trades.  Remember the market can stay extremely oversold a lot longer than any retail trader can stay solvent being too early.  Wait for trades to come to you.  For now, continue to either be very fast (day trade), very slow (long-term holds) or just wait.

Ed

Sorry, but due to extreme volatility there are 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

Tuesday was another roller-coaster ride for markets.  A 2% gap higher was met with immediate selling down to the lows of the day.  However, from 10 am to noon was a hard rally.  The massive waves continued all day until a close near the highs.  Once again, we had an 8% intraday range, but the SPY closed up 5.63%, the DIA up 5.42%, and the QQQ up 7.58%.  The VXX only lost 1.18% to 58.51, which points to intraday volatility.  Oil was down 6% on the day, closing at $26.84/barrel (WTI) on fear of a global recession and even further Saudi supply increases.  However, the 10-year bond yield was back up above 1%, closing at 1.064% on the day as Fed bond-buying ramps up.

During the daily press conference, the President kept his tone for a second straight day, announcing desires to have fiscal stimulus. This includes deferring April 15 income tax payments for 90 days and a check sent to every American home.  At the time of the presser, the administration hadn’t yet spoken to Congress on the plan specifics, but their hope was to have the checks cut and mailed within two weeks. Note that it took 2 months after signing the bill in 2009.  Nonetheless, markets liked something they heard. 

The House and Senate Democrats also put forth packages of their own and as said, were in mid-day negotiations with Treasury Sec. Mnuchin (who left the President’s press conf. early to start those negotiations).  Subsequently, it leaked that they were talking about a $1.2 trillion relief package including over $250-$500 billion in immediate checks to family homes, $200-$300 billion in small business assistance, $200-$300 billion in tax cuts, and $50-$100 billion in relief for the airline industry.  It also came out that during discussions with Congress, Mnuchin said he was worried unemployment could hit 20% due to the virus. 

Not to be outdone, Majority Leader McConnell told the press that the Senate would not adjourn again until they had passed a relief package larger than the House passes.  (A somewhat odd statement for a “Fiscally Conservative” party leader, but I guess these are different times.)  In addition, during the day the Fed extended its $500 billion/day repo operations (to aid banks) through at least the end of the week and announced a new lending facility for US businesses (beyond banks).  So, the government is now firing all their guns.

The global headline virus numbers rose to 203,500 confirmed cases and 8,225 deaths.  In Europe, Italy now has 31,500 cases with 2,503 deaths. Spain has 13,720 cases with 600 deaths, France has 7,750 cases with 175 deaths, Germany has 9,920 cases and 26 deaths. On this continued spread, the EU closed its exterior borders to all non-EU people for 30 days.  In addition, the UK announced a 400-billion-pound relief package.  Both the UK and France said they will start fining and may jail anyone infected who is out in public.  Italy, France and Belgium all also banned selling short for 3 months in their stock markets.

In the US, all 50 states (plus D.C. and Puerto Rico) have confirmed infections as the virus is following exactly the same exponential growth rate seen in Europe.  The totals are now 6,525 cases and 116 deaths.  Again, more states have ordered public venues, bars and restaurants closed.  Schools were closed across 37 states.  NYC also gave warning that they will soon join San Francisco in closing the city and ordering shelter-in-place quarantines.  

Overnight, Asian markets were down, with South Korea down 6.5% and Australian down almost 5%.  Europe has continued to the downside, with another acceleration today.  So far in their day, the major European bourses are all down more than 5%.  In the US, futures were volatile again overnight.  However, as of 7:30 am, U.S. futures were pointing to another 5% gap down. 

On Wednesday, the major economic news is limited to Feb. Building Permits and Feb. Housing Starts (both at 8:30 am) and Crude Oil Inventories (10 am).  The only earnings of note for the day are GIS before the open and TCOM after the close

The US numbers will continue to rise exponentially (especially once testing really starts ramping up), more businesses will report the impacts, and the life of the public will halt.  So, volatility and gaps are not going anywhere.  We are simply in a massively erratic and over-reacting market with a bias still to the downside right now.  Again, this is not a market to be Swing Trading.  Keep reminding yourself, you do not have to trade every day, week, or month! 

Needing action is the worst reason in the world to take trades.  So, remember there will be another day.  Keep preparing your list of strong companies you will want to own WHEN THE TIME IS RIGHT.  Then wait for those trades to come to you.  Don’t chase.  Don’t trade on emotion.  Don’t think you can predict turns.  Let price tell you when we have a more stable price action, less volatile trend and see proven support below us.  Until then, get very fast (day trade), very slow (long-term holds) or stay out.

Ed

Sorry, but due to extreme volatility there are 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

Another day, another ride through the meat grinder for traders.  After Sunday evening’s Fed move, markets made a massive 12.5% gap down at the open. This triggered an immediate halt.  After the 15-minute break, the daily whipsaw continued with more than 8% intra-day range but ended near the lows.  The SPY closed down 11.11% (off the lows), the DIA down 12.76% (near the lows), and the QQQ down 11.98% (very near the lows).  The VXX spiked 38.87% to close at 59.99.  The 10-year bond yield closed down to 0.758% and Oil closed at $28.67/barrel (WTI).  This is significant because shale companies cannot stay in business at that oil price.

During the day markets were panicked and manic as news came fast.  Toward the end of the market day, the President held another press conference, where he changed his tone again.  This time he accepted that the virus is out of control.  In fact, he said “if we do a good job,” the COVID-19 outbreak may be under control by July or August.  He also said he may implement “lockdowns” (quarantine) for certain areas, is calling for social distancing by all ages, and for all Americans to avoid any gathering of more than 10 people.  In addition, he pledged to bailout the airline, cruise, and hospitality industries. 

On Monday, the Senate did not take up the relief bill that was passed early Saturday in the House with Presidential support.  Majority Leader McConnell reported that Senate Republicans cannot accept the paid sick leave in the House bill (although House GOP members and the President had, and the bill exempts smaller companies).  However, Senators on both sides of the aisle have already staked out positions offering various forms of payments to be sent to every American home.  The G7 also held a teleconference.  While European leaders were hoping it would result in announcement of specific coordinated economic action, all that came from the meeting was a vague promise to do “whatever is necessary to support global trade and economies.”

Last night the global headline virus numbers rose to 185,500 confirmed cases and 7,330 deaths.  In Europe, Italy now has 28,000 cases with 2,160 deaths. Spain has 11,200 cases with 491 deaths, France has 6,650 cases with 150 deaths, Germany has 7,640 cases and 20 deaths. Many countries have closed their borders to foreigners and implemented virtual shelter-in-place rules by closing businesses and banning public gatherings. Automakers such as Fiat-Chrysler and Volkswagen have closed all of their operations across Europe.

In the US, 49 states (plus D.C. and Puerto Rico) now have confirmed cases as the virus is following exactly the same exponential growth rate seen in Europe.  The totals are now 4,740 cases and 95 deaths.  More states have ordered public venues, bars and restaurants closed.  San Francisco has also ordered shelter-in-place quarantines across most of the Bay area.  Some states have also canceled or postponed primary elections to avoid crowds. However, not all the news was bad.  With all the demand from online-shoppers, AMZN announced it is trying to hire 100,000 new employees for distribution centers and delivery operations.

It was reported Monday that MRNA began the first trial of a potential vaccine candidate.  However, even if this is the perfect vaccine, it will take 12-18mo before it would be ready to go to manufacturing for wide distribution.  It is also worth noting that in the history of the world, only 1 virus (Hepatitis-C) has ever been cured.  So, traders should be very careful not to latch-on to every report of a miracle drug as an immediate massive opportunity.

Overnight, Asian markets were mixed.  Europe has continued to the downside so far in their day.  In the US, futures were all over the place overnight. They went “Limit up” at one point only to turn around and go negative. As of 7:45am, they are pointing to a bounce after the ugly day yesterday. 

On Tuesday, the major economic news is limited to Feb Core Retail Sales (8:30 am), Feb. Industrial Production (9:15 am), and Jan. Business Inventories and JOLTS (both at 10 am).  The only earnings of note are from FDX, which reports after the close.

Expect volatility and gaps to continue.  We are simply in an erratic and over-reacting market with a bias to the downside.  Not a good market to Swing Trade.  Keep reminding yourself, “I do not have to trade.”  Needing action is possibly the worst reason in the world to take a position.  So, remember there will be another day.  Keep preparing your list of strong companies you will want to own WHEN THE TIME IS RIGHT.  Then wait for the trades to come to you.  Don’t chase.  Don’t trade on emotion.  Don’t think you can predict turns.  Let price tell you when more stable action, less volatile trend and proven support are in place.

Ed

Sorry, but due to extreme volatility there are 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 roller coaster continued Friday with a gap higher at the open, a run back down near the Thursday lows and then a strong rally into the close.  In contrast to the Wednesday night speech, the bulls loved what they heard from the President’s press conference at day end. As a result, the SPY closed up 9.20%, the DIA up 9.43%, and the QQQ up 8.47%.  Interestingly, the VXX was only down 8.78% to 43.20.  Oil (WTI) also closed higher at $32.93/barrel and the 10-year bond yield also climbed to 0.983%.

In the presser, the President declared a national emergency as well as steps that will soon be taken to triage potential cases and direct people to a nearby testing center. Later, Dr. Fauci (NIH) clarified that it’s more complicated some stated at that event.  He told BBC that temporary facilities need to be built, supplied, and tens of thousands of testers will need to be trained. In addition, newly added labs need to be set up to process the samples as well as supplied with reagents. So, millions of tests will not be available (let alone done) this week.  That said, he noted the US was on a much better testing trajectory Friday evening than it had been on Thursday. 

The event was serious, but also oddly congratulatory.  The President, VP, Task Force members, and a parade of CEOs were all praised, thanked and asked to speak. While I personally didn’t like that tone, this seemed to be exactly what traders wanted to hear.  It had a very lifting effect on markets, which perhaps sensed the government finally recognizes the scope of the problem, is now serious about it, and that major testing efforts are being planned to begin.

Over the weekend, the global headline virus numbers rose to 173,000 confirmed cases and 6,665 deaths.  In Europe, Italy now has 24,750 cases with 1,810 deaths. Spain has 8,800 cases with 300 deaths, France has 5,500 cases with 130 deaths (but they have not reported number updates in over a day), Germany has 6,220 cases and 13 deaths.  France, Spain, and Germany also all followed Italy in closing all public venues, closing non-essential businesses, as well as stopping non-critical travel.

In the US, 49 states (plus D.C. and Puerto Rico) have confirmed infections as the virus is following exactly the same exponential growth rate seen in Europe.  The totals are now 3,800 cases and 69 deaths.  As far as impact, things got ugly this weekend as groceries were stripped bare many places, major retail chains closed (or were ordered closed), hospitals began canceling elective surgeries, and unpaid employee furloughs escalated.  Food and household goods makers also warned of supply chain disruptions caused by hoarding and loss of workers.  In addition, a number of states banned large gatherings.  Ominously, NY state reported that it is nearly out of ICU beds and may authorize hospitals to take over hotels.

Still, on Saturday Sec. Mnuchin echoed the President when said he still did not expect a recession.  Nonetheless, on Sunday, in the 2nd emergency move in just days, the Fed cut the Fed Funds rates a full percent to 0.25% (while extending the repayment period to 90 days), cut bank reserve requirements to zero, launched $700 billion in additional QE (for a total of $2.25 trillion) and said “they were prepared to use its full range of tools” as needed.

In a separate event, the President reverted to his form telling the daily press briefing the virus is “something we have tremendous control of.”  Another flatly false statement.  Fortunately, real experts were also on stage to give us the real sitrep.  After Trump left, Dr. Fauci told the press “the worst is yet to come…we are at a critical point now.”  Earlier in the day, the CDC had recommended that for at least the next 8 weeks, people cancel or postpone any gathering of 50 people or more.

Overnight, Asian markets were down hard again across the board despite moves by the Fed and other Central Banks.  Europe has continued the slaughter down 6%-9% across every bourse at this point in their day.  In the US, futures went limit-down shortly after the Fed moves and were halted overnight.  As of 7:45 am, U.S. futures are pointing to a huge gap down, which will very likely cause a circuit-breaker at the open. 

On Monday, the scheduled major economic news is limited to the NY Empire Mfg. Index (8:30 am).  Once again, there are no major earnings reports on the day. However, there are very likely to be economic news from the Fed, President, Congress, etc.

Heavy volatility and gaps are likely to continue.  Remember, that there is no rule saying you must be trading.  In fact, avoiding heavy volatility environments is a great idea for most traders.  So, remember there will be another day.  Prepare a list of tickers you will look to buy when the time is right.  Then wait for the trades to come to you.  Don’t chase.  Don’t trade on emotion.  Don’t think you can predict turns.  Let price tell you when a less-unstable trend and proven support are in place.

Ed

Swing Trade Ideas for your watchlist: AAPL, KR, UNH, CPB, EVBG, ZM, CHTR, PYPL, MSFT, DPZ, REGN, ATVI, ABBV, GOLD, INTC, WMT. 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 another roller-coaster day, the bears roared and the bulls got slaughtered.  Futures plummeted after the 9 pm speech and we woke to a 7% gap down.  Shortly after the open, this led to a halt.  After the restart, markets got a roller-coaster ride.  This lasted until shortly after 1 pm.  From there, the rest of the day was a jagged slide lower.  Just before the close, markets fell off a cliff, closing near the lows.  This left the SPY down 9.57%, the DIA down 10.06%, and the QQQ down 9.17% on the day, which was the worst performance since Black Monday in 1987.  As you’d expect, the VXX flew higher to end at 47.36, while Oil (WTI) closed down again to $30.90/barrel.  The 10-year bond yield also sold off near the close after being up in the afternoon.  It closed at 0.809%.  Interestingly, banks raised mortgage rates in an effort to curb refinancing.

The most shocking event of the day was that the Fed threw their full weight into the fight, but came up short.  Fed Chair Jerome Powell announced $1 trillion in additional easing through repo operations ($500 billion in 1-month and $500 billion in 3-month).  That raises total Fed QE efforts to $1.5 trillion overall.  However, that additional $1 trillion only bought markets a 6% mid-day gain that lasted 15 minutes. As soon as the euphoria wore off, markets sold off hard again for the rest of the day.

Meanwhile, the global headline virus numbers have risen to 137,700 confirmed cases and 5,080 deaths.  In Europe, Italy now has 15,100 cases with 1,020 deaths. Spain has 3,900 cases with 90 deaths, France has 2,900 cases with 61 deaths, Germany has 3,060 cases and 6 deaths.  In the middle east, Iran has 11,400 cases with 520 deaths.  In Asia, South Korea has 7,980 cases with 71 deaths and Japan has 700 cases with 19 deaths.  Perhaps the worst virus news of the day went under-reported.  A study that was published in the Journal Lancet (191 patients), found that people remained contagious a median of 20 days after diagnosis with the longest being 37 days.  This means that long after symptoms are gone and a 14-day quarantine expires, people can still spread the virus

In the US, 47 states (plus D.C.) have confirmed infections of the virus for a total of 1,762 cases and 41 deaths.  All major sporting events, concerts, conventions, etc. have been canceled and many states have banned any gathering of over 250-1,000 people (varies by locale).  Many more companies also laid-off workers without pay due to a loss of business. Shortages and hoarding have begun, although those instances are not completely out of hand now.

However, not all the virus news was bad.  In China, only 18 new cases (7 of which were travelers from abroad) and 11 new deaths were reported Thursday.  So, with as much as 80% of their workforce back to work, they are now reporting the peak of the epidemic is behind them.  While this is a very hopeful sign, we do have to remember that they had a good testing regime, had strictly-enforced quarantines, and a socially compliant population, which the US lacks (as of now).  Still, it is a positive sign.  

Overnight, Asian markets were down again across the board.  (Down hard in the case of Japan, which lost over 6%.)   However, Europe has gone the other direction with every bourse up strongly, including the 3 majors being up over 6% at this point in their day.  As of 7:30 am, U.S. futures are pointing to a large gap higher (4-5%), after having reached the 5% “limit up” circuit-breaker overnight.  So, instead of Mr. Hyde, the markets may give us Dr. Jeckyl today.

On Friday, the major economic news is limited to Feb. Import/Export Price Index (8:30 am) and Michigan Consumer Sentiment (10 am).  Once again, there are no major earnings reports on the day.

With the incredible volatility and heavy selling that has gone on this week, it will take a braver man than me to take positions into the weekend.  (And that’s true regardless of what happens Friday.)  The headline risk is on both sides, with the possibility of a stimulus package and/or more Fed actions on one side.  On the other side, there is a likelihood of large increases in the numbers of cases and deaths, as well as more weekend announcements from businesses.  There are also too many wildcards to count.  So, my advice is to get flat or at least delta-neutral going into the weekend. 

If you have to trade, trade small (nimble), fast, and lock in profits every chance you get. Remember, this won’t last forever and there will be another day.  Prepare for the eventual bottoming, but don’t expect a V-shape. Have a list of tickers you will look to buy and a price pattern where you’d be interested in buying.  Then wait on the trades to come to you.  Say it with me…  Don’t chase.  Don’t trade on emotion.  Don’t think you can predict turns.  Let price tell you when a trend and support are in place.

Ed

Sorry, but due to market volatility there will be no Swing Trade Ideas 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.

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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