Let’s look at GE found on the LTA scanner. We’ll discuss what I like about it, what potential I see and how I might trade it. If you aren’t already in the room, you might think about taking a 60-day trial for just $49.
DISCLAIMER: The stocks we talk about are not recommendations to buy or sell. You must evaluate the risks and rewards yourself. 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 financial or trading advice. All information provided is intended for educational purposes only. You are advised to thoroughly test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
After a very exuberant Thursday rally, a US airstrike in
retaliation for the embassy attack is sending shock waves through the world
markets this morning. What a difference
a day makes as uncertainty once again raises its ugly head as we move toward
the weekend. As traders face an
uncertain weekend, it could easily trigger some profit-taking and increase the
overall price action volatility. Watch closely
if index price supports can stave off this initial knee-jerk reaction. If they begin to fail, profit-taking could
quickly increase.
Asian markets closed the day lower across the board but rather
subdued overall. European markets are
all in the red this morning in reaction to the Iranian tensions. US Futures point to a sharply lower open this
morning with the Dow indicating a gap down of more than 250. Buckle up; it could be a bumpy ride.
On the Calendar
On the Friday Earnings Calendar, we have 18 companies listed
as reporting, but just one confirmed report from LW and it happens to be the
only one that’s noteworthy on the day.
Action Plan
A day after an exuberant rally that set new records, the
market has a very different attitude this morning. During the evening in response to the invasion
of the US Embassy in Iran, a strategic killed one of Iran’s top generals
sending shock waves throughout the middle east and possibly escalating the
conflict. Qasem Soleimani is tied directly
to the deaths of over 600 Americans and was a very popular military leader in
Iran. What comes next is anyone’s guess,
and that uncertainty is evident with a quick look at the futures market.
Lettering design poster, banner.
The strong bullish trend over the last three months may
still hold after this morning’s knee jerk reaction, but overall, the market
hates uncertainty, and we can expect the VIX will respond to show some
fear. Keep a close eye on price supports
within the index trends. Failure of
supports heading into an uncertain weekend could set off a wave of
profit-taking. Remember, we have the
ISM, Petroleum Status and the FOMC minutes on the economic calendar along with
a parade of Fed speakers.
In economic news Thursday, the biggest story of the day came prior to the US market open. The Chinese Central Bank lowered the amount of capital Chinese Banks must hold. This move will inject between $800 billion and $1 trillion into the Chinese economy, with world markets hoping that stimulus will cause a world-wide rebound. Thus we got a gap up.
So, Markets gapped higher to start the new year. This was met with sideways grind until the bulls kicked it into gear again after 2 pm. There were significant surges about 2:30 pm and again at 3:50 pm. The net result was that the SPY closed up 0.94%, DIA up 1.23% and QQQ up 1.67%…all closing at new all-time high closes. This happened on above-average volume. As you’d expect, the VXX fell dramatically as well, down to 14.51. There simply is no fear in this market.
Overnight last night, the potentially most significant story of the day came out of Iraq. President Trump apparently ordered the targeted killing of Iran’s top military General, while he was in Iraq. (Akin to some other country killing the Chairman of the US Joint Chiefs of Staff.) This is the second US airstrike in Iraq targeting Iran or Iranian allies in the last couple of days. Iran is vowing revenge, the US State Department has ordered Americans out of Iraq and Iraqis are, understandably, not pleased with US actions or the prospect of another war.
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This action may betray US administration policy. Obviously it has the potential to spiral into another middle eastern War for the US. (This is conjecture, but based on forward-positioning of tens of thousands of US Troops into Saudi Arabia in recent months, Administration actions against Iran since Trump took office, and the fact that no sitting US President has lost an election during wartime…it seems plausible.) In any event, Dow futures dropped 350 points on this news overnight. Oil prices also spiked four percent.
Friday’s major economic news includes Dev. ISM Mfg. PMI (10 am), Crude Oil Inventories (11 am), and a couple of Fed speakers in the afternoon. The only earnings report of note is LW.
Overnight, Asian markets were mixed but mostly red on the news out of Iraq. In Europe, markets are also mixed but mostly red at this point. As of 7:30 am, U.S. futures are down sharply (greater than 1%) following Thursday’s stellar start to the year.
Favorite Charting Software
The year was off to a great start and the bulls seem to be focusing on optimism over a trade deal with China and potential for some recovery based on Chinese economic stimulus. However, this military situation with Iran now takes center stage and will bring fear and uncertainty back into markets. I had intended to say that over-extension and the unknown are the only things to fear early this year. However, at least one of those unknowns now has a name…Iran.
With that said, we cannot predict geopolitics, US politics or market reactions. All we can do is add hedges or get flat until things settle. So, continue to plan your trades, and trade your plans. Don’t chase the new year rally. Trade charts you have analyzed and chosen to meet your criteria. As always, keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you.
Ed
Swing Trade Ideas for your consideration and watchlist: AMD, GE, TWLO, IEF, MPLX, INTC, CSCO, NKE, INFO, CGC, VXX. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
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.
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’s close saw a little selling coming into the market with
the VIX bouncing up 6% by the close, but overall, the index trends remain bullish. Heading into another mid-week holiday with a
nasty winter storm spreading across the east coast low volume algo-driven chop
could be the bulk of price action after the opening rush. Trade and Housing numbers could provide some short-lived
inspiration, but our time may be better spent reviewing this year’s results and
preparing goals & plans for 2020.
Happy New Year
Asian markets closed the day mixed but mostly higher waiting
on November Hong Kong data. European markets
this morning are trading lower across the board but on light holiday volumes. US Futures suggest a flat to ever so slightly
bullish open ahead of the International Trade in Goods and Pending Home Sales November
results.
On the Calendar
On the 2nd to last trading day of 2019, the Earnings
Calendar indicates there are just eight companies reporting today but seven of
the report are unconfirmed and I don’t see a single notable report among them.
Action Plan
A New Beginning with Right Way Options in 2020
With a nasty winter storm spreading across the east coast
and another mid-week holiday facing the market trading volume is likely to diminish
quickly after the morning rush. We have little
to nothing on the earnings calendar for the market to react to, so it will likely
look to the economic calendar for some inspiration. Consensus expects a widening of the gap in November’s
reading on International Trade in Goods number at 8:30 AM Eastern and an
increase in the 10:00 AM Pending Home Sales report. Of course, news events could temporarily fire
up some price action, but most likely, the next couple of days will see a lot
of algo-driven chop.
There is always the possibility of a little end of month
window dressing but there is also the chance we could see some end of year
profit-taking. Last Friday saw a slight
increase in the VIX, but so far this morning the US Futures are suggesting a
flat to ever so slightly bullish open.
Rather than trading, the next few days may be better spent reviewing
this year’s results looking for improvements to trading rules and plans. Perhaps, start by setting goals for 2020 and building
watchlists so that you can jump-start the New Year as a better, more prepared
trader.
Markets took a rest Friday with gaps higher across the board, met with a fade of the gap selling. The end result was a flat day with the SPY (down 0.02%) and QQQ (down 0.008%) on the red side of flat and the DIA (up 0.09%) just on the green side of flat. However, this still leaves markets right at all-time highs. It’s worth noting that volumes were near average across all indices.
For reference, this was the fifth straight week of gains as Santa Claus continues his rally. Interestingly, the VXX climbed 2% Friday to a still-low 15.23. In addition, T2122 fell out of the overbought territory, down to 73.04.
Over the weekend, there was no major news. North Korea apparently did not follow through on its threatened “Christmas Present for the US.” However, the US did attack apparently Iranian-aligned militias in both Iraq and Syria. Other than that, there was just a now-normal church shooting and knife attack on a Hanukkah celebration. So, just a standard, low-key weekend…nothing to rile markets
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Monday’s major economic news includes Trade Balance and Auto Inventories (8:30 am), Dec. Chicago PMI (9:45 am), and Nov. Pending Home Sales (10 am). With another holiday upon us, again this week there are no major earnings reports.
Overnight, Asian markets were mixed. In Europe, markets are all in the red at this point. As of 7:30 am, U.S. futures are flat, sitting on either side of Friday’s closing value.
Favorite Charting Software
All-in-all, we are wrapping up another great year for stocks as markets have gained close to 30%, despite trade fears, on the back of three Fed cuts (even with a strong domestic economy). With those gains in their pocket, it is doubtful bulls will be willing to allow any of their profits to evaporate in the last two days of the year. So, the bulls have both the momentum and reason to defend the highs the next couple days.
At this point, it seems over-extension and the unknown are the only things to fear early this week. With that said, remember that volumes will likely continue to be light as many traders take more time off for the holidays. So, continue to plan your trades, and trade your plans. Don’t chase (there will always be another trade, I promise), keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you.
Ed
Swing Trade Ideas for your consideration and watchlist: FTCH, PSX, BX, KO, MA, CPB. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
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.
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
Although Santa has returned to the North Pole and his jolly
Ho, Ho, Ho, has faded into memory, the big guys’ influence continues as the strong
retail numbers continue to inspire the bulls.
Lead by AMZN’s record-breaking sales results, there were new record
highs achieved in the DIA, SPY and QQQ on relatively low holiday volume. As we head into the weekend and the New Year,
the bulls seem to have plenty of momentum on their side, but be careful not to become
too complacent.
The count down has begun.
Asian markets finished the week mixed but mostly lower. European markets this morning see only green following
the optimistic lead of Wall Street. US
Futures point to a gap up open on this last Friday of 2019, fulled by momentum
with very little on the earnings or economic calendar to provide inspiration.
On the Calendar
On the Earnings Calendar, we have 18 companies reporting but
none are particularly notable.
Action Plan
Strong holiday retail sales continued to inspire markets
higher yesterday as it seems Santa’s influence remains strong this year. Once again, the DIA, SPY and QQQ reached out
for new record highs yesterday on low holiday volume. There is no doubt this has been an amazing
quarter to top off a truly remarkable decade for the market. As we slide into the weekend with just three
trading days left in 2019, the momentum is certainly with the bulls and there are
no indications in the price action they are ready to stop just yet.
Finish Strong!
However, we all know that what goes up must eventually come
down, so we must not get complacent and be ready to act if and when the bears
decide to reassert themselves. Futures
this morning point currently point to a mixed open with the Dow suggesting a
substantial gap up at the open. Gap up
opens at new market highs make me watchful of the dreaded pop and drop possibility
so be careful not to chase the open, wait to see if there are buyers that
follow-through. With such a strong trend
and momentum, follow-through may not be much of a wait even though there will
be very little inspiration in the earnings and economic calendar today.
Santa always seems to have some influence over the market during
this time of year but this year we have experienced an exceptional Santa Claus rally. A better than expected quarter of earnings, a
dovish FOMC, strong employment, and the Phase One tariff relief has made it pretty
easy for the jolly old man and reindeer to pull out record highs day after
day. With China now in the news
following through on tariffs cuts, the bullish trend shows no clues of stopping
just yet.
An RWO Membership is a great last minute Gift!
Asian markets closed mixed but with very modest gains and losses overall. European markets are trading mixed and mostly flat as traders seem to be taking profits and cutting risks heading into the holiday. US Futures point to modest gains this morning ahead of Durable Goods and New Home Sales numbers. After the morning rush, it would not be a surprise to light and choppy price action as traders head out for holiday plans. I would not rule out the possibility of some profit-taking at some point in the day.
On the Calendar
On the Earnings Calendar, we have just 13 companies
reporting on Monday. Ten scheduled on Tuesday
and with the market closed for Christmas on Wednesday, there will be no earnings
reports. Of the companies reporting, their none that are particularly notable the
entire week!
Action Plan
Santa’s Coming to Town!
With Santa’s reindeer pulling hard, the markets continue to rally
setting new records nearly every day. News
that China is cutting tariffs as part of the Phase One trade deal may allow
this Santa rally to continue on this eve of Christmas Eve. Today may be the best day of volume this week,
but traders should carefully consider the risks of the typical very low volume
that could easily continue right into the New Year. I would not be too surprised to see volumes
drop quickly after the morning rush of activity as traders head for their
holiday plans.
With nothing much to react to the earnings calendar, the market
will likely turn to the economic reports to find some inspiration. Keep an and eye on the Durable Goods report
at 8:30 AM Eastern and the New Home Sales numbers at 10:00 AM. As a reminder, Right Way Options trading room
will be open Tuesday and Thursday for chat only; there will not be a moderator. Of course, on Christmas day, the room is
closed. As a result, there will be no morning blog
post or Morning Market Prep Video until Friday.
I wish you and your family a very Merry Christmas!
Friday was an indecisive day at the highs as the SPY closed just on the red side of flat, the DIA dead flat, and the QQQ posted a 0.40% gain. This gave the QQQ another new all-time high close on the strength of its gap higher at the open. Beyond the open, all three major indices printed Doji-type candles on the day. The VXX did gain 1.21% but remains at historical lows as fear does not seem to exist in markets now.
In US news this weekend Congress approved and President Trump signed the new spending bill to prevent a government shutdown. This bill raised spending to $1.4 Trillion and in the process eliminated taxes used to pay for some of the ACA (Obamacare) programs. It also avoids the possibility of another government shutdown until at least Sept. 30 2020. (However, it’s hard to imagine anyone allowing a government shutdown a week before any election, let alone a Presidential election.)
In International news, China announced that next year it will reduce its tariffs on 144 new products (706 products were already in this program in 2019). This means a total of 850 products will be charged import tariffs below the WTO “most-favored-nation” tariff rates. Crucial to President Trump this will include Frozen Pork. However, it should be noted that we are talking only a 4% cut (from 12% to 8%). So, the impact on demand is unknown. However, it is another trade olive branch.
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Monday’s major economic news is limited to Nov. Core Durable Goods (7:30 am) and Nov. New Home Sales (10 am). There are no significant earnings reports slated for the entire week.
Overnight, Asian markets were mixed but mostly green. In Europe, markets are also mixed at this point. As of 7:30 am, U.S. futures are pointing toward a quarter-percent gap higher at the open.
Favorite Charting Software
The bulls seem to have cleared a path for Santa to continue his rally into year-end. The Fed continues to quietly pump tens of billions of dollars of liquidity into markets daily through QE. Meanwhile, a Phase-one Trade Deal seems done, earnings are out of the way and markets are ignoring impeachment. So, at this point, it seems over-extension and the unknown are the only things to fear.
With that said, remember that volumes will be light this week as most traders take time off for the holidays. Continue to plan your trades, and trade your plans. Don’t chase (there will be another trade, I promise), keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you.
Ed
Sorry, but no Swing Trade Ideas this week. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
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.
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
Markets ignore impeachment of the President and power higher
once again, setting new record highs. Santa
Claus has done well this year! Now the
question on trader’s minds is, can this rally continue right into the weekend
or will there be some profit-taking as trade reduce risk ahead of the
holiday. With a light earnings calendar,
the market will likely look to the big reports on the economic calendar for inspiration. As of now, the bulls are solidly in control
of the bullish trends, and the bears seem to no willingness to fight back as
the VIX continues to decline.
Membership is a great Gift!
Overnight Asian markets closed the week mostly lower as
Japan’s automakers fall after the US House passed the North American trade
agreement. European markets see only
green this morning as the rally continues after the Phase 1 trade deal lifted
spirits. Here in the US, the Futures
currently point to a flat slightly bullishly leaning open ahead of GDP, Personal
Income and Outlays, & Consumer Sentiment reports.
On the Calendar
On the Friday Earnings Calendar, we have just 14 companies fessing
up to their results. Notable reports,
BB, CCL, & KMX.
Action Plan
Markets defied the Presidential impeachment by the House
rallying to new record highs confident that the Senate will respond with an
acquittal. With the mid-week holidays
just around the corner, Santa has delivered the market a very nice rally without
the wild volatility. Perhaps this
bullishness can continue right on through the new year, but being a little more
conservative, I’m likely to go to the bank today, lowering my risk into the
weekend. Don’t get me wrong; there is
nothing in the charts at this point that suggests bearishness but anything can
happen over the weekend and I’m happy with a bird in the hand.
Five Golden Rings!
With a relatively light day on the earnings calendar, I
would expect the market to look to the economic reports of GDP, Personal Income
and Outlays, & Consumer Sentiment to find inspiration today. Consensus estimates suggest the reports will remain
strong so a surprise reading could upset the apple cart, so as always, stay focused
on price action for clues. If you’re
traveling this weekend to join family and friends to celebrate Christmas, I
wish you all safe travels and a Very Merry Christmas!
The bulls pushed markets steadily higher all day Thursday. All three major indices printed new all-time high closes with the SPY up 0.41%, the DIA up 0.44%, and the QQQ up 0.63%. This move was made on roughly average volume and good breadth as T2122 remains at the 84 level. Meanwhile, the VXX fell again to 14.86 as there is no fear at all in stock markets now.
Economic data was mixed on Thursday as Jobless claims fell, but fell less than expected. In addition, the Philly Fed Mfg. Index was much lower than expected. However, MU, CAG, and DRI all posted strong earnings before the session.
That said, the main news story of the day was impeachment again. Markets seem to have discounted it, probably seeing it as a stalemate that can do little economic harm. The Democrats got an indictment, but the Republicans refuse to recognize those charges and intend to acquit the President regardless of evidence/testimony. The only question remaining seems to be what the January Senate “trial” will look like. Regardless, the market has not taken this as bad news, at least as things stand now.
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After hours Thursday NKE posted beats on both the top and bottom lines. Friday’s major economic news includes Q3 GDP (8:30 am) and Michigan Consumer Sentiment (10 am). The only major earning report on the day is KMX, which reported a miss on earnings but a beat on sales already this morning.
Thursday’s major economic news includes Weekly Jobless Claims and the Dec. Philly Fed Mfg. Index (both at 8:30 am) and Nov. Existing Home Sales (10 am). Earnings before the open include ACN (beat on both lines), CAG (beat on both lines), and DRI (beat on earnings, missed on revenue). Meanwhile, NKE reports after the close.
Overnight, Asian markets were mixed, with Hong Kong a bit higher while the others were flat or in the red. In Europe, markets are also mixed at this point. As of 7:30 am, U.S. futures are just on the green side of flat all pointing to less than a tenth of a percent gain at the open.
Favorite Charting Software
Fed rates remain paused (and heavy QE is underway). A phase-one Trade Deal also seems in hand and there are no major earnings or news events souring moods at this point. So, the bulls continue to have the momentum heading toward the year-end holidays. The only fly in the ointment now is fear of over-extension and the unknown. As I’ve said (continuously) continue to plan your trades, and trade your plans. Keep taking profits without being too greedy, move your stops to protect yourself and wait for the trade to come to you (don’t chase).
Ed
Sorry, but no Swing Trade Ideas for your watchlist on Friday. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: 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.
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.
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
