Bulls Bang-out more New Records!

by
New Records
Quietly Waiting in the wings.

The bulls bang-out more new records pushing GOOGL into the 1 trillion market cap club and price to earnings growth hits the highest level since Bank of America started recording the metric in the ‘80s.  How much further can you go?  That’s anyone guess, but as retail traders, we must guard ourselves against getting caught up in the exuberance over-trading or chasing trades already up several days in their bull run.  With a 3-day weekend approaching, it may be wise to take some profits and reducing risk in case sentiment happens to shift over the weekend.

Asian markets closed the trading week, seeing green across the board after China reported their economy grew as expected.  European markets have also reached out to new record highs this morning in reaction to the big gains in the US and China news.  This morning US Futures continue to climb, suggesting a modest gap up open ahead of earnings and economic reports. 

On the Calendar

On the Friday earnings calendar, we have 21 companies reporting results.  Notable reports include CFG, FAST, JBHUT, KSU, RF, SLB, & STT.

Action Plan

More new records attained as the bulls continue to surge higher with wild abandon.  Bank of America reported that Price to Earnings Growth is now 1.8 hitting the highest level since they began recording the number in the ’80s.  For reference, a reading 1.0 PEG is considered an overbought condition.  That said, nothing seems to stop the bulls from stretching this rally that pushed GOOGL to a 1 Trillion market cap during yesterday’s bullish session.  With a three-day weekend approaching, futures currently suggest another gap up open and more record highs today with no sign of slowing down just yet.

Trading such an overbought condition requires a strong adherence to your trading rules.  It’s very easy with all the bullish exuberance to get caught up, tossing caution to the wind and over-trade.  I have no idea when the tide will change, but believe me when it does; you don’t want to be over-invested because the reversal can be swift and extreme.  Stick to your rules, size your trades properly, don’t chase stocks well into their run or when they are testing price resistance levels, have an exit plan if you’re wrong and remember to take some profits along the way!  I wish you all a wonderful 3-day weekend.

Trade Wisely,

Doug

Bulls Run, But 3-day Weekend Ahead

by

The bulls gapped markets higher perhaps on a huge earnings beat by MS.  Regardless of the reason, after that gap markets traded sideways in a tight range until late afternoon.  Sometime after 3pm the bulls took over again and drove prices higher right into the close.  The SPY closed up 0.81%, the DIA up 0.89%, and the QQQ up 0.96%.  As you’d expect, the VXX fell 2.42% again to 13.29.  T2122 jumped higher well into overbought territory at 93.97.

Among the market news for the day was Bloomberg report a panel that seems to contradict the reports from Wednesday’s signing coverage of Phase One of the China Trade Deal.  The consensus from the Chief Economists from all the major US banks is that the trade deal would not have a strong impact on the US economy, at least in 2020.  They’ve concluded that growth will slow to 1.8%-1.9% this year (well below the 2.5% touted during the signing ceremony and in the Administration’s post-signing interviews Wed.).  Time will tell, but economists seem skeptical.

On the cheerier side, DataTrek Research reported that US pickup truck sales (an indicator of small business activity) ended 2019 on a high note.  Those sales ended the year 2.3% higher than in 2018.  The other news was that GOOG has now joined AAPL and MSFT in the “More Than $1 Trillion Market Cap” club. The Fed keeps saying their mass Repo purchases are not stimulus, but the market sure keeps treating them that way.

Friday’s major economic news includes Dec. Building Permits and Dec. Housing Starts (both at 8:30 am), Dec. Industrial Production (9:15 am), JOLTS and Univ. of Michigan Consumer Sentiment (both at 10 am) and a few Fed speakers throughout the day.  Major earnings before the open include CFG, FAST, KSU, MTB, RF, SLB, and STT. There were also CNBC reports that BA will need to take another massive charge related to their 737 Max debacle. So watch that one for gapping as well.

Overnight, Asian markets were green across the board.  In Europe, the same is true as the rest of the world follows our lead from Thursday.  As of 7:45 am, once again U.S. futures are pointing to a gap higher of between a quarter and a third of a percent.

$50.00 discount with code: Privilege

The bulls continue their incredible run with new all-time highs seeming to come daily.  Over-extension, earnings and headline risk over a 3-day weekend are all very real issues at this point.  However, markets can remain overbought longer than bears can hold out while being too early.  So, consider caution and/or hedges on Friday, but don’t bet against the trend. Look for long opportunities near support but don’t chase. Keep taking profits on a regular basis, moving your stops to protect yourself, and wait for the trade to come to you.   

Ed

Sorry, but no Swing Trade Ideas on a Friday before a 3-day weekend. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. 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

|607% in just 24 months |

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

Dow closes above 29,000

by

The Dow closes above 29,000 setting new records amidst a volatile afternoon of price action that required a last-minute rally regain that key psychological level.  With the Phase 1 trade deal finally signed skeptics of the deal seem to have inspired the bears to begin probing for weaknesses creating a little price volatility, but so far, the bulls have proved to defend each attack.  Although stocks are rising, so many appear very stretched out or testing resistance highs traders, have to be very careful not to over-trade and chase entries.

Good Morning! Do I smell Friday on the way?

Asian markets closed mixed but mostly higher seesawing around the flat-line most of the session.  European markets are lower across the board being less than impressed with the partial trade deal with China.  However, here in the US, there appears to be no tepidness whatsoever with the Futures pointing to yet another significant gap up that will set new records.  Over exuberance like this can sometimes end badly, so plan your risk carefully and have an exit plan ready to go if sentiment reverses.

On the Calendar

On the Thursday earnings calendar, we have 29 companies fessing up to quarterly results.  Notable reports include BK, SCHW, CSX, MS, PBCT, PPG, & TSM.

Action Plan

For the first time, the Dow closed above 29,000 amidst a volatile afternoon session after the signing of the Phase 1 trade deal.  In the deal, China has agreed to buy 200 billion of Ag products based on market conditions over the next two years.  As you might imagine, skeptics abound that China intends follow-through on the deal.  Next week the Senate begins the impeachment trial of President Trump.  Although the Senate is expected to acquit the president of all charges, it’s likely to serve as a major distraction next week with a wall-to-wall media circus.

Index trends continue to remain bullish though the price action indicates that the bears are probing for weaknesses creating a little volatility.  That being said, the bulls seem to have relentless energy recovering from a late afternoon selloff in the last couple minutes of the day.  Today we have a few potential market-moving earnings events and a big morning of economic data to inspire the bulls or bears.  I suspect the Retail Sales figures will be the biggest focus today after TGT reported holiday toy sales were lower than expected.  Ahead of all this data, the futures once again point to a substantial gap up open.  As always, guard yourself against the fear of missing out emotion by waiting to see if actual buyer follow-through after the gap before committing to additional risk.

Trade Wisely,

Doug

Bulls Still in Control

by

On a bullish day, some afternoon volatility left the SPY (up 0.20%) and DIA (up 0.39%) closing at all-time highs.  The QQQ had a more indecisive day closing up 0.04%.  The VXX closed down again at 13.62, while the T2122 stepped back just below overbought to 75.07.  It seemed that markets generally took the second day of earnings and the Phase-One Trade Deal with China in stride. 

Speaking of the trade deal, details released Wed. point to China apparently committing to purchase an additional $200bil of good/services over the next two years, meaning roughly an additional $100bil in 2020.  That would be a massive increase over the past where the 2017 base against these gains was about $130bil/yr. total exports to China.  China also pledged to crack down on intellectual property theft. 

Time will tell if these materialize, or how this shakes out globally (purchases from the US, mean less from elsewhere and both have ripple effects), but it certainly appears to be a big win for the US on a headline level.  Of course, on the downside, tariffs on Chinese goods will remain in place for at least another 10 months before review again.

Beyond follow-up on trade deal details, earnings are now front and center for markets. Already this morning, MS posted a massive beat and had pre-markets soaring.

Thursday’s major economic news includes Dec. Retail Sales, Philly Fed Mfg. Index, and new Jobless Claims (all at 8:30 am), Business Inventories (10 am) as well as another Fed speaker.  Beyond MS, other major earnings reports include BK, BLK, CSX, KMI, SWKS, SYF, and TFC.

Overnight, Asian markets were mixed but mostly green.  In Europe, markets are also mixed, but mostly red, especially the FTSE, DAX, and CAC, so far in their day.  As of 7:30 am, once again U.S. futures are pointing to an open higher of between one-tenth and one-third of a percent at this point.

$50.00 discount with code: Privilege

Despite some push-back by the bears, the bulls maintained control on signing day for Phase-One of a China Trade deal.  This leaves at or very near of all-time highs across all major indices.  Over-extension and earnings remain the obvious risks.  However, the moves, while relentless, are not over-exuberant.  So, continue to trade with the trend, while employing some caution.  Always look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: ANGI, BLDR, VRTX, OTEX, LDOS, ALLE, ANET, ZAYO, TRIP, AMCX, OSTK, LYFT. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs 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.

🎯 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

|607% in just 24 months |

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

Is the Bull Weakening?

by
Is the Bull Weakening

Is the bull weakening or just taking a break hoping to find inspiration in big bank earnings and the signing of the Phase 1 trade deal.  With a push in very select stocks, the Dow once again pushed through the 29,000 barrier but was unable to hold it through the close after being reminded that tariffs will remain in place for the immediate future.  As always, during earnings season, anything is possible, so set aside bias and focus on the price action for clues. 

Asian markets closed in the red overnight ahead of the signing of the Phase 1 deal.  European markets are mixed this morning trading very near the flatline, cautiously as they monitor earnings results.  US Futures traded in the red overnight but have paired most of the losses ahead of earnings, economic, and the Phase 1 signing ceremony that seems to have lost its luster among the bulls. 

On the Calendar

On the Hump day earnings calendar, we have just 22 companies reporting today but there are several potential market-moving reports.  Among the notable are UNH, AA, BAC, BLK, GS, KMI, PNC, USB, & PNC.

Action Plan

After a little struggle, the Dow finally found the inspiration to rally breaking temporarily above 29,000 but was unable to hold it by the close.  While we have the signing of the Phase 1 deal, later today, tariffs will stay where they are until there is confirmation of China’s compliance with the agreement, and Phase 2 negotiations begin.  Most agree that it will likely be after the Presidental election.  Although there was a bit of a bull/bear struggle in the price action yesterday, the bullish trends remain intact.

Today we have several potential market-moving earnings reports and an economic calendar that includes PPI, Empire State MFG., Petroleum Status numbers and the Beige Book.  Futures traded lower all night, but the morning pump has already begun now pointing to a flat open before we get the reports from BAC & GS.  As of yesterday, it looked as if the bulls started running low on energy but perhaps they can be reenergized this morning by strong bank earnings.  Stay focused on price and guard yourself against over-trading while price deals with resistance while working to hold trend.

Trade Wisely,

Doug

Earnings and Deal Day Part 1

by

Markets had a somewhat volatile day that ended little changed.  The SPY ended the day down 0.15%, the DIA up 0.07% and the QQQ down 0.39%.  It seems that despite great beats by the big banks (C and JPM) and DAL in the pre-market, traders were leery of earnings season at the current market all-time highs.  There was also a fear that the phase one of the China trade agreement may disappoint markets as details come front and center Wednesday during the signing. 

The latter fear stemmed from Bloomberg reports that the existing tariffs are remaining in place and all provisions of the deal are already known by the public.  CNBC also reported that both sides understand that the US will not review the existing tariffs any sooner than 10 months after the phase one signing (i.e. after the election).  In addition, there is no agreed path toward eventual reduction of existing tariffs or even for new “phase two” talks.  So, the economic drag of the trade war on both economies is here for at least another year.  (Side note: Reports say the existing tariffs are costing the average American $800/year although details were not provided.)

In more cheery news, Amazon has lifted the prohibition on its Marketplace sellers using FedEx ground transport.  In addition, retail sales are coming in at 5% greater than 2018…which may read through to expectations of upcoming earnings reports.

Wednesday’s major economic news includes Dec. Core PPI and Jan. NY Empire Mfg. Index (both at 8:30 am), Oil Inventories (10:30 am) as well as two more Fed speakers.  Earnings reports before the open include BAC, GS, PNC, USB, CSX, TGT, and UNH. (GS beat and TGT missed so far this morning.)

Overnight, Asian markets were red across the board.  In Europe, markets are mixed, but mostly red so far in their day.  As of 7:30 am, once again U.S. futures are pointing to a flat open, just on either side of break-even at this point.

$50.00 discount with code: Privilege

Even on a rest day, the bulls have maintained control of the trend and we are within spitting distance of new highs.  However, over-extension and disappointment (over earnings or the partial trade deal) risks remain real.  Continue to use caution while still trading with the trend.  Look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: PCG, NKE, BMRN, MPLX, NXPI, DAR, HZNP, RS, OSTK, BLUE, CNQ. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs 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.

🎯 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

|607% in just 24 months |

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

Earnings Season Begins

by
Earnings Season

With a choppy overnight futures session and very high price-to-earnings multiples, the first earnings season of a new decade officially begins today!  Yesterday the bull run continued with new record highs in the SPY and QQQ even as analysts expect sub-par year-over-year earnings performance.  The question on everyone’s mind is, will it matter or will the tenacious bulls continue to lower their head and push even higher.  Only time will tell.  In such a strong bull market, it’s very easy to become complacent and over-trade.  Plan your risk carefully, and even though the trend remains strong, make sure you have an exit plan and understand the risks you are taking in case the bears come out of hiding and begin to impose their will.

Asian markets overnight closed mixed but mostly lower as the Yuan rose ahead of the Phase 1 deal signing.  As I write this report, European markets are trading modestly lower across the board.  US Futures markets have been choppy ahead of the big bank earnings that will likely set the stage for today’s market. 

On the Calendar

Today is the official beginning of the 1st quarter earnings season, which seems to extend almost all the way into the 2nd quarter.  Make sure your checking when a company reports before making a trading decision as part of your trade planning to avoid possible unfortunate surprises.  We have 20 companies reporting today, with the most notable being DAL, C, JPM, SPHA, INFO, WFC, & WIT.

Action Plan

We have seen rather choppy futures overnight heading into the official beginning of 2020 earnings.  Trends have been incredibly bullish ahead of a week outlook for earnings results, but the big question is, will it matter?  Year over year, comparisons show that companies are making less; consequently analysts lower the expectations bar making it easier for the company to leap over the target.  With price-to-earnings multiples going higher and higher as stocks continue to race higher, we have to question how long this condition can continue.

Analysts seem to suggest a market pullback is likely, but the very strong bullish trend would seem to suggest the bulls don’t care what the analysts think.  Another imbalance we currently see in the market is that only 5-companies, AAPL, GOOGL, AMZN, MSFT, and FB make up 18% of the total market cap of the entire S&P-500.  According to Morgan Stanley, this is unprecedented dominance, while Bank of America is warning the “rising correlation and concentration risks’ for the market.  So what is the retail trade to do?  Set aside your bias, focusing on the price action on the indexes and the stocks you choose to trade.  Plan your trades, understand the risks before entering and trade your plan with the knowledge that Price is King!

Trade Wisely,

Doug

Banks Kick-Off Earnings Again

by

Once again, the markets gapped higher on Monday.  There was also follow-through as news came that the US is removing China from the “Currency Manipulators” list and this helped the bulls continue to run all day.  At the end of the day SPY was up 0.69% and QQQ up 1.16%, while the DIA was up only 0.27% (held down by UNH).  As you’d expect, the VXX fell to the extremely low value of 13.78 while T2122 climbed back just barely into the overbought region at 81.71.

In addition to the China news, two other stories made news on financial outlets Monday.  The first of these was that the US Budget Deficit topped $1 trillion in 2019.  This was a 17% increase from 2018 and led the National Debt to climb to $23.2 trillion.  The second story was that the Impeachment trial of President Trump is likely to start Tuesday, January 21.

$50.00 discount with code: Privilege

However, today (the current Tuesday) another earnings season kicks off as the big banks report before the open today.  As this process starts, FactSet is reporting that earnings are expected to have fallen 2% in the fourth quarter.  This would be the fourth straight quarter of reduced earnings.  Still, as always, the companies have sand-bagged their numbers by guiding down forecasts during last quarter’s reports. So, it’s anyone’s guess as to whether Mr. Market “goes with the flow” or “registers protest over the trend.”

Tuesday’s major economic news includes Dec. Core CPI (8:30 am) and Dec. Federal Budget Balance (2 pm) as well as another Fed speaker.  As mentioned above, C, JPM, WFC, DAL, and INFO all report before the open.

Overnight, Asian markets were mixed.  Europe is mixed but mostly red so far in their day.  As of 7:30 am, U.S. futures are pointing to a flat open, just on either side of break-even at this point.

Markets remain at their all-time highs, with the bulls in control of the trend.  However, over-extension remains a risk and earnings kick-off again today.  So, continue to use some caution while trading with the trend.  Look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: LHX, DAR, AMD, VRNT, INTC, MYL, UMPQ, KSU, TEL, AMCX, GRUB, BURL. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs 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.

🎯 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

|607% in just 24 months |

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

Bullish Trends Continue

by
Bullish Trend

After briefly breaching 29,000 with a very narrow large-cap leadership, Friday’s price action ultimately left behind bearish engulfing candle patterns while still solidly holding onto bullish trends.  With earnings season kicking off on Tuesday with big bank reports, the expected signing of the Phase 1 trade deal on Wednesday, and a busy economic calendar, traders will have to be ready for almost anything.  In such a strong bullish run, it’s easy to become complacent, but with stocks trading at such high multiples, that would be unwise.   Plan careful, and never forget the market can quickly shift direction.

Asian markets closed green across the board last night as they await the signing of the Phase 1 trade deal.  European markets, however, are trading cautiously this morning with indexes flat to mostly lower focused on developing geopolitical tensions with Iran.  US Future this morning seems to be tossing caution to the wind pointing to a gap open.  With Friday’s bearish engulfing pattern, be very careful chasing into this morning gap.

On the Calendar

On the Earnings Calendar, we have just 12 companies reporting results but there is only company SJR that’s particularly notable today.  However, keep in mind 1st quarter earnings season kicks off on Tuesday with several big bank reports.

Action Plan

There was a very interesting weekend of news with talking heads issuing very contradictory predictions of the future direction of the market.  Protestors hit the streets in Iran after the government admitted to downing the Ukrainian 737 passenger plane.  The President has come out in support of the Iranian protestors noting their courage is inspiring.  At the same time, the Iranian leadership continues to threaten additional retaliation.  Scheduled for Wednesday this week is the expected signing of the Phase 1 trade deal with China, that’s to provide some protection for US intellectual property as well as large Ag purchase commitments from China.

With markets already at very high multiples and expectations of slower earnings growth, reports indicate that GS, BAC and other large investment banks are advising their clients to move assets to a more passive dividend collection strategy as they expect only a 2% market growth in the coming year.  At the same time, others are suggesting 2020 could be a solid earnings growth year and projecting substantial market growth.  I think all the contradiction would suggest that no one can predict the future and the best we can do as retail traders is to setaide our bias, focus on the charts, and price action within.  Up, down or sideways price action will lead the way to a profit.

Trade Wisely,

Doug  

New Week – New Highs?

by

Markets gapped higher again Friday.  However, they sold off steadily the remainder of the day (perhaps to avoid weekend headline risk).  While we closed up off the lows (and frankly still very near all-time highs), the SPY lost 0.29%, the DIA lost 0.46% and the QQQ lost 0.26%.  All three of the major indices printed Bearish Engulfing signals but did not fall back into the recent trading range that we broke out of Thursday.  Interestingly, the VXX fell again as well, to 14.12.  The T2122 also fell but remains in the mid-range at 44.62.

In a follow-up to last week’s main story, Iranians (mostly students) are protesting their own government after Iran publicly accepted the blame for shooting down the Ukrainian Passenger Jet.  Those protests turned violent overnight. President Trump made statements in support of the protesters and veiled threats against Iran cracking down on the protests.  He also threatened Iraq, saying they would lose their account at the New York Fed Bank if US troops are forced to leave Iraq.  (That account is used for processing Iraqi oil sales and to pay their government salaries and contracts.)

$50.00 discount with code: Privilege

This coming week we will see the signing of Phase One of the China trade deal Wednesday (only Vice Premier Li will attend from China, so President Trump may not take that victory lap yet).  The impeachment “trial” is also likely to start, if not finish this week. 

There is no major economic data or earnings reports on Monday. We’ll also see some more economic data starting Tuesday.  Finally, earnings season kicks back into gear again Tuesday with the big banks reporting.

Overnight, Asian markets were mixed, but mostly in all the green.  Europe is even more mixed with a split between red and green on their boards so far today.   As of 7:45 am, U.S. futures are pointing to a quarter to a third of a percent gap higher at this point.

Overall, markets remain at unprecedented heights and the bulls still control the trend.  However, over-extension remains a risk and we are just a day from truly starting a new earnings season.  So, all we can do is trade with the trend, look for opportunities, and use hedges.  Most importantly, remember to plan your trades, and trade your plans.  (Don’t let emotions jerk you around.) Take 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: ZS, ETSY, GRUB, PFE, BMRN, LHX, NIO, FTCH, ANGI, CGC. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs 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.

🎯 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

|607% in just 24 months |

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