Markets gave us a head fake at the open Tuesday with a half-percent gap higher followed by a minute of momentum that took markets up an additional half percent.  However, this was met by a sharp reversal a couple of minutes into the day that turned into a brutal all-day selloff.  There is no mistaking the decisive, large-body black candles printed across all the major indices on the day.  The SPY closed down 3.05%, the DIA down 3.15%, and the QQQ down 2.72%.  As you’d expect the VXX jumped again and is now at 19.38, a level it has not seen since October. 

Coronavirus remains the main story as it seems the possibility of economic impacts has just dawned on many traders in the last few days.  That said, governments do continue to downplay this story.  For example, both China and South Korea “predict” a turning point in the outbreak in their countries this week.  Meanwhile, President Trump and his economic advisor Larry Kudlow said again Tuesday that the virus has been well contained in the US and economic growth will not be significantly impacted.

The headline numbers have now risen to 81,250 confirmed cases and about 2,800 deaths globally.  Of course, the vast majority of cases have been inside China.  However, looking at major economic centers outside China, South Korea now reports more than 1,260 cases, Japan about 200 cases, Germany 20 cases, France 20 cases, the UK 15 cases, and Italy more than 375 cases. 

In terms of impact, many major companies have lowered forecasts.  This includes key indicators of consumer activity like MA warned they will miss 2020 revenue forecasts by at least 2-3% (even though those original forecasts were published less than a month ago) as a result of the virus.  The European Automaker Groupe PSA warned the entire auto industry worldwide is now working with extremely short supplies of parts.  In other indications, the Dept. of Health and Human Services said the virus is “likely to cause a global pandemic” and “it’s just a matter of time before the outbreak starts spreading in the US.”  The CDC spokesman agreed with that assessment and went so far as to predict disruption to daily lives in the US.

Overnight, Asian markets were all in the red again.  Europe is slightly mixed, but shows losses across most, including the 3 major (FTSE, DAX, CAC), bourses at this point.  As of 7:45 am, U.S. futures are pointing to a flat open, but they have been very volatile all night.

The major economic news for Wednesday is limited to Jan. New Home Sales (10 am), Crude Oil Inventories (10:30 am), and a couple more Fed speakers. In terms of major earnings reports, SJM, LOW, NI, PEG, and TJX report before the open.  ANSS, APA, BMRN, BNKG, CCI, LB, MAR, NTES, FTI, TCOM, and UHS report after the close.

The bears are firmly in control, but the drop has moved so far, so fast that it certainly looks like chasing to add shorts here, unless you are a very short-term trader.  Yes, Asia and Europe continued to slide, but that doesn’t mean we can’t see an up day in a downtrend.  Be careful to not let your emotions get the better of you.  No revenge trading.  No chasing.  No reversal picking.  Keep that discipline.

Remember that cash and sitting on your hands is a valid position and sometimes the best move you can make.  Be cautious, follow the trend, listen to price action and trade consistently.  Keep reminding yourself, trading is a job/business and sometimes, calling in sick for a couple of days is the only way to avoid burnout.

Ed

Sorry, but there are no trade ideas for today. Markets need to settle before we can plan out quality swing trades. 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

US markets followed the rest of the world lower on Monday.  The day started with a large gap lower and then volatility reigned as all three indices printed large-wick, indecisive candles.  The SPY ended down 3.32%, the DIA down 3.51% (1031 points), and the QQQ down 3.86%.  These losses caused the SPY and DIA to give up all their gains since the end of November.  In the process, all three indices also gave up some support levels, although the QQQ was able to hold on to its 50sma.  As you’d expect, the VXX spiked to 17.67 and the T2122 plummeted into oversold territory at 5.15.

Most voices among analysts and financial journalism are expecting this bearish move to continue.  It seems that all the bad news (especially the coronavirus) that the bulls have been ignoring has suddenly caught their attention.  As a result, a full flight to safety is on with Gold at levels it has not seen since 2013 and Bonds at all-time highs (extremely low yield).  With that said, any continued move lower does not have to happen Tuesday.  A dead-cat bounce is possible, if not probable, after a 3-4% single-day drop.

On the coronavirus front, the headline numbers are now 81,000 confirmed cases and more than 2,700 deaths.  As of Tuesday, in addition to China and South Korea (1,000 cases), now major portions of Northern Italy (300 cases) are under quarantine.  There has also been an expansion in cases in the middle east, with Iran, Kuwait, Egypt, Lebanon, and UAE all reporting cases.  In addition, after the close, MA said they are lowering their 2020 revenue forecasts 2-3% from the levels announced on its January 29 conference call.  UAL also withdrew its 2020 forecast, again citing the virus impacts.

Overnight, Asian markets were mixed, but Japan taking a major hit as the NIKKEI (-3.34% on Tuesday) was closed Monday for a holiday.  For the second straight day, Europe is bright red across the board at this point.  As of 7:45 am, U.S. futures are pointing toward a bounce-back Tuesday as all three major indices are looking at an open half to one percent higher.

The major economic news for Tuesday is limited to the Conf. Board Consumer Confidence (10 am) and a couple of FOMC speakers during the day.  In terms of major earnings reports, AEE, AMT, HD, and M all report before the open.  Meanwhile, CSGP, CRM, MATX, and PSA report after the close.

Once again, the bears had control yesterday.  That makes three days in a row, which was a first going all the way back to the end of November.  More companies are decrying the impact of the coronavirus on their operations or sales every day.  This means the bears are likely to maintain control, in general, at least until markets have repriced to reflect a large drop in earnings.  However, we know markets don’t tend to move in straight lines for long.  So, expect more volatility, including up days in the downtrend.

Don’t let your emotions get the better of you.  No revenge trading!  The market doesn’t owe you a damn thing and chasing to get back to even fast is likely to see you buy just before another reversal lower.  Also, bear in mind that volatile markets mean traders need to be quick or hedged if they don’t want to endure serious pain.  Believe me, I’ve been there and taken those beatings.

I know it’s boring and you are tired of hearing us say it.  However, don’t try to lead the chart. Follow the trend, listen to price action and trade consistently or Mr. Market will punish you.  Trading the same pattern over and over, taking profits for base hits and consistently moving your stops is how successful traders work…regardless of how boring you might think that sounds.  Keep reminding yourself, trading is a job/business.  It is not a lottery ticket.

Ed

Swing Trade ideas for your watchlist and consideration: BMY, TDOC, GDOT, BBY, PETS, DOV, RH, PRVB. 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

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