More Charging Bulls

by

On Tuesday, the bulls gapped markets strongly higher (about 1.25% gap) and got some follow-through until noon.  Then we saw three hours of sideways grind followed by a selloff the last 30 minutes.  The tech giants which had suffered so much fear related to coronavirus impact seemed to lead the way.  In addition, TSLA was notable for following up their almost 20% gain Monday with almost another 14% gain Tuesday.  As a result, the QQQ closed 2.29% higher (a new all-time high close), the SPY gained 1.52%, and the DIA ended the day up 1.43%.  As you’d expect, the VXX was down hard to 14.83 and the T2122 returned to mid-range at 61.30.  This latter fact would seem to indicate we are still not over-bought.

The coronavirus story continues even while it remains unclear how much global impact will result. Confirmed cases are now up to 25,000 and deaths have risen close to 500.  The Chinese Health Minister told reporters that the virus has already mutated into a stronger and more communicable variant.  There have also now been babies born with the virus when the mother was infected. However, Fed speakers seem to indicate this entire outbreak will not have a significant impact on the US fiscal outlook.  In addition, Larry Kudlow told CNBC coronavirus is not a disaster for the US economy. On top of this, world markets have risen the last two days in hopes of a cure and vaccine.

Nonetheless, in after-hours reports, NKE warned that the virus will have a significant financial impact on their business, especially in their China operations and market (their primary product source and largest growth market).  Foxconn (a key AAPL supplier) also cut its outlook for the year.  The Chinese government has announced lower tax rates and eliminated fees to banks offering low-rate business loans and to at least some businesses involved in fighting off coronavirus impacts.

In the US Tuesday night, M also said they will close 125 stores and cut 2000 corporate jobs.  In addition, F reported a $1.7 billion loss and GILD reported a miss for the quarter.  On the other side, Disney beat (on 28.8 million DIS+ subscribers, but they did not update their streaming service guidance). Other beats included CB and CMG among others. 

Overnight, Asian markets continue to rebound with green across the board again.  The same is true in Europe, with strong gains in all the major bourses.  As of 7:30 am, U.S. futures are also pointing to another gap higher of between eight-tenths and one percent. 

$50.00 discount with code: Privilege

The bulls look to be continuing their charge this morning. Just bear in mind, the second-largest economy in the world seems to be in trouble from the virus and much of Asia is already feeling economic impacts. It seems logical that there would be some sort of impact on the US as well, but leaders say no. So, be careful chasing as it sure feels like more shoes will drop.

As I have relentlessly preached, a trader’s job is to consistently take profits and reduce risk (manage trades). So, don’t chase or give in to Fear of Missing Out. Make the trade to come to you…plan your trade and trade your plan. Or as Rick puts it: See it, Plan it, Trade it.

Ed

Swing Trade Ideas for your consideration and watchlist: BX, OKTA, VRTX, GE, TEAM, LLY, INTC, INFO, BLK. 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

|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 Charge!

by
Bullish Charge

A GOOGL revenue miss, an outbreak continuing to expand, and a sputtering conclusion to the Iowa caucuses remarkably and somewhat confusingly inspires a bullish charge this morning.  We have a very big day of earnings and this huge gap up is likely to trigger a painful short squeeze for traders caught short.  As we seemly shake off any concerns of the outbreak economic impacts focus on the price action and the fact we are gaping right into price resistance levels.  Chasing this creates a large risk to support levels if, like yesterday virus new spoils the bullish party.

Asian markets close in the green overnight with the Shanghai composite bouncing 1.34% after yesterday’s plunge.  European markets also advance this morning, reacting to earnings and shaking off virus concerns.  As we approach the open US Futures, continue to climb ahead of a big day of earnings and economic news.  Hang on today would be a wild ride!

On the Calendar

On Tuesday earnings calendar we have a big day with 153 companies reporting quarterly results,  Notable reports include CMG, DIS, AFL, AGN, ALL, ATO, BOOT, BP, CNC, CB, CLX, COP, CMI, EMR, FISV, F, GILD, LHX, LII, MTCH, MCK, PBI, PAA, RL, RCL, SBH, STX, SPG, SIRI, SNAP & SNE.

Action Plan

Futures created a big gap and steep rally, and then virus fears once again brought in the bears after a report that a cruise ship passenger contracted the disease 6-days after departing the ship maybe infecting other passengers.  After the bell, yesterday GOOGL somewhat disappointed investors beating earnings estimates but missing on revenues falling about $45 a share.  Despite the disappointment and the virus deaths reaching 425 with nearly 20,500 infected futures are flying high this morning as markets choose to shake off and ignore previous concerns.  

As I write this report, US Futures point to a 300 point gap!  I can’t find anything in the news that justifies such a gap, but clearly the institutions what a return to bullishness.  This mornings gap could easily trigger a short squeeze rally forcing the markets higher still.  I don’t understand where the bullishness is coming from but the good news is I don’t have too.  My job is not to understand the wild emotional swings this market makes.  My responsibility is to maintain focus & discipline to my rules and my trade plan.  Unfortunately, a gap of 300 points is likely to create increased risks that may prevent me from entering trades.  I will not chase with a fear of missing out as the market gaps into price resistance. 

Trade Wisely,

Doug

Bulls Looking to Charge Again?

by

The bulls gave us a little rebound Monday, coming off the worst week in 6 months.  After a small gap higher, the bulls pushed but were driven back in the large-caps leaving large upper wicks.  The SPY gained 0.74%, the DIA gained 0.55%, and the QQQ was strongest up 1.51%.  This caused the VXX to fall to 15.68.

Coronavirus continues to lead the news.  Among related stories, in the afternoon CCL reported that one of its passengers had tested positive for the virus 6 days after leaving one of their cruise ships.  Oil also fell to the lowest price in more than a year on fear of the virus’ impact on demand. As of this morning, the count has risen to 21,000 confirmed cases and 425 confirmed deaths. However, US markets now seem to expect this outbreak will end up having little impact on the US and global economies.

After the close, Alphabet reported earnings, beating expectations on earnings by 20%, but apparently disappointing on ad revenue.  As a result, both GOOG and GOOGL were down 4.5% in after-hours trading.  The other Monday night story was the Iowa Caucuses and their debacle of not releasing results.  Pete Buttigieg (widely seen as a moderate) claimed victory, but the Democratic Party announced nothing after finding inconsistencies in the data from the App they used to roll up precinct results.  A hand recount of the tallies will be done today.

Overnight, Asian markets rebounded after their beating yesterday and there was green across the board Tuesday.  The same is true in Europe, with strong gains being made in all the major bourses at this point.  As of 7:30 am, U.S. futures are also pointing to a large gap higher.

Tuesday’s major economic news is limited to Dec. Factory Orders (10 am).  Of course, although not economic or even usually news, the President Trump will deliver the State of the Union speech tonight. However, again there are many earnings reports.  Reporting before the bell are CNC, CLX, COP, CMI, ETN, EMR, IT, J, MCK, RL, RCL, SPG, SIRI, TDG, WAT, and ZBH.

$50.00 discount with code: Privilege

The bulls seem to be making another push this morning. However, the primary economic story (coronavirus impact) has not changed and I’m not aware of any unexpectedly good earnings stories that changes the outlook.  So, be careful trading in either direction. Remember what happened to Monday’s candle after the gap and morning run.

Keep in mind that our job as traders is to consistently take profits and cut risk. Don’t chase or act on emotion. Make the trade to come to you…plan your trade and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: OPGN, EZPW, PLAN, NFLX, LULU, IR, ALLE, SVRA. 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

|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

1.3 Trillion Yuan Injected

by
1.3 Trillion Yuan

Although it likely helped significantly, the freshly printed 1.3 Trillion yuan injected into the Chinese market last night did not stop the Shenzhen from falling more than 7% by the close of the session.  Other Asian markets saw their 8th straight day of declines with the outbreak reaching more than 17,000 infections and 361 deaths.  With the Iowa caucuses set to begin and a big week on the earnings and economic calendar, the stage is set for continued volatility and challenging price action for traders to navigate.  Plan your risk carefully as big daily gaps and overnight reversals are likely to continue as the uncertainty continues to unfold.

Asian markets had a rough night with the reopening of the Shanghai composite but the HSI managed a modest gain of 0.17% by the close.  European markets are cautiously and modestly higher across the board this morning as they track Brexit & virus outbreak developments.  US Futures are putting on a brave face this morning, indicating a Dow gap up of more than 100 points ahead of earnings and economic reports.  Be careful not to chase into price resistance levels.

On the Calendar

On the Monday earnings calendar, we have 64 companies set to report quarterly results.  Notable reports include ACM, GOOGL, HIG, HP, LEG, NXPI, ON, SYY, & VVV.

Action Plan

Fear and uncertainty brought out the bears on Friday, wiping out all gains year-to-date.  Let’s hope the old saying, ss January goes, the year.  As the virus outbreak continues to weigh on the on investors, my major concern was how the reopening of trading in Shanghai would affect today’s open.  It’s not a big surprise that the index fell more than 7% but it could have been much worse without the 1.3 trillion yuan they injected into the economy.  Dumping all that cash all at once into the system also sent the yuan sharply lower against the greenback during the night.  Over the weekend, the confirmed cases of infection grew to more than 17,200 with 361 deaths creating the 8th straight day of selling in some Asian markets.

With Iowa caucuses just around the corner, the market could react to the outcome depending upon the strength of the results and the candidates that emerge on top.  We also have a very big week of earnings to keep us on our toes as if we didn’t already have enough factors injecting price volatility.  This morning the US Futures are pointing to a gap up open of more than 100 Dow points.  Perhaps recognizing Friday’s price action was an overreaction, and of course, the market loves freshly printed money no matter where the injection originates.  Just keep in mind this morning’s gap up will not be challenged by price resistance levels above.  Be careful chasing.

Trade Wisely,

Doug

Coronavirus Is Still The Lead Story

by

Coronavirus really put it on the markets Friday.  A brutal all-day selloff was only slowed by bulls rallying the last 15min of the day in a futile effort to make January end as a net gain.  Unfortunately, markets still closed lower for the month.  On the day the SPY lost 1.81%, the DIA lost 2.12%, and even the QQQ (buoyed by a massive AMZN earnings beat) lost 1.59%.  In the process, the SPY held support, but the DIA gave up the 50sma and a potential support level.  Obviously, the VXX spiked to a still-low 16.27

Over the weekend, the death toll from the virus topped 360, with well over 17,000 confirmed cases in China alone.  In response, China has extended the Lunar New Year shutdown (holiday) across at least 24 provinces (which account for 80% of the Chinese GDP) until at least Feb. 10 (some until Feb. 14).  They also said the holiday may be extended again if deemed appropriate. 

In potentially good news, Thailand reported good results using a mixture of two antiviral drugs.  The success saw a significant improvement in the condition within 48hr after treatment.  However, this success was on a single patient.  So, it is way too early to claim a solid treatment has been found.  Still, this is promising news.

For now, China has announced a range of measures to help businesses hit hard by the virus.  In addition, the People’s Bank of China said the equivalent of a $173 billion (including $21 billion today alone) extra liquidity will be injected into their markets using the same repo mechanism the Fed uses to pump money into US Markets.  This was intended as an emergency backstop as the Chinese stock market reopened for the first time since January 23.  Nonetheless, Chinese markets still gapped down almost 9% at its open.  (Bear in mind that in addition to virus fears, Chinese markets have been closed for 10 days and have not had a chance to adjust.  So, gap moves on the first day back from the Lunar New Year holiday are typical…just not this severe.)

Overnight, Asian markets took the weekend virus news hard with red across the board.  The only possible bright spot is that Hong Kong got back to the green side of flat.  However, China’s first day back to trading ended down 8%.  In Europe, markets are mixed, but mostly green at this point.  As of 7:45 am, U.S. futures are pointing to a half percent gap higher after Friday’s beating. 

Monday’s major economic news is limited to Jan. Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  And while earnings do resume this week, today is a light day.  Among the major names reporting before the bell are AMG, CHKP, and SYY.  After the close ARE, GOOG, GOOGL, HIG, LEG, and NXPI all report.

$50.00 discount with code: Privilege

The bulls seem to be trying to find support this morning.  However, the bears have the momentum and nothing has changed for the better on the coronavirus story.  Be careful trading either direction as it’s likely to be a volatile day.

Keep in mind that nobody ever went broke taking profits (small or not) and reducing risk. Above all, wait for the trade to come to you…plan your trade and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: VXX, SDOW, TZA, KKR, LABD, GDOT, SHAK, GWRE, CTXS, PRGO. 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

|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

Emotional Price Fluctuations

by
Emotional Price Fluctuations

The coronavirus is a flu virus, but the market’s emotional price fluctuations due to the uncertainty is instead making feel seasick.  Rallying strongly after the WHO declared a global health emergency, the US Futures appears ready to strip all back as the confirmed cases near 10K.  With the Shanghai market scheduled to reopen Sunday night, traders must carefully consider the risk they carry into the weekend.  Later tonight, the UK will leave the EU and begin a year-long trade negotiation.  Just another thing to weigh as the weekend approaches.

Asian markets closed mixed overnight as manufacturing numbers met expectations, but virus impacts continue to grow.  European markets are modestly red across the board ahead of the UK exit and the virus uncertainty continues to weigh on investor’s minds.  Here in the US, futures point to a gap down reversing yesterday’s end of day rally, ahead of earnings & economic reports. 

On the Calendar

On the Friday earnings calendar, we have just 60 companies reporting but there is no time to relax as we will hear from several potential market-moving companies.  Notable reports include BAH, CAT, CVX, CHD, CL, XOM, HON, ITW, KKR, LYB, PSX & WY.

Action Plan

If your beginning to get a little seasick with the wild price action of the index as the uncertainty of the virus outbreak continues to effect the emotions of the market.  At the end of the day, we had an incredibly bullish rally after the WHO declared a world health emergency.  However, the news of the death toll rising to 213 and the confirmed cases climbing above 9800 the futures market appears ready to take it all back with a nasty gap down.  It will be very interesting to see the impact when China begins resumes trading Sunday night.  Consider your risk carefully as we head into the weekend.

https://goo.gl/kkuu9T

On the impeachment front, the left wants to call more witnesses extending the trial another week but the right is pushing to wrap it and put it behind them today.  Extending another week could have a minor market affect to keep us on our toes.  Later tonight the UK is signing the divorce papers with the EU but will begin and year-long transition period where they will attempt to work out a trade agreement.  Though there could be some currency fluctuations, how this decision will impact the overall market is anyone’s guess.  One thing for sure is there is a lot to consider heading into the weekend.

Trade Wisely,

Doug

Earnings vs. Coronavirus

by

Markets gapped lower Thursday as coronavirus fear resumed.  However, the bulls were having none of that as they rallied most of the day with the close coming near the highs.  For example, the Dow erased a 244 gap down to end the day 124 points higher.  The SPY gained 0.32%, the DIA gained 0.44%, and the QQQ gained 0.36%.  The VXX fell to 14.60 while the T2122 remains in mid-range at 39.69.

During the day, the World Health Organization reversed its decision from last week and declared coronavirus a global health emergency.  Oddly, at the same time, they did not recommend travel to China to be restricted.  In other coronavirus news, the Centers for Disease Control confirmed the first person to person transmission inside the US. Globally the death count continues to rise and the confirmed cases is now about 10,000.

After the close, AMZN absolutely crushed their earnings report.  Prices soared in after-hours trading on that report that was 60% higher than expected.  It remains to be seen whether this will “lift all boats” on Friday.  Again, other earnings reports were too numerous to mention. 

Overnight, Asian markets were mixed, with only the NIKKEI green as virus fear grows.  In Europe, markets are red across the board at this point in the day.  As of 7:45 am, U.S. futures are mixed with the SPY and DIA pointed to gap down, while the QQQ (bolstered by AMZN) pointing to a half percent gap higher. 

Friday’s major economic news includes Dec. Personal Consumption-Expenditures (8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  The earnings list is somewhat smaller since it is Friday.  Among those reporting before the bell are AON, BR, CAT, CHTR, CL, CVX, CHD, XOM, HON, IDXX, ITW, JCI, LYB, PSX, and WY.

In impeachment news, the vote on whether or not to call witnesses is scheduled for Friday afternoon.  It appears the White House now has the votes to block witnesses.  If so, Senate Majority Leader McConnell is expected to call the votes to acquit (as has always been expected) as soon as Friday evening.  Speculation is that this might move markets even just on the expectation of an acquittal.  However, the way markets react to news, especially in advance, is never a sure thing.  So, as with other news, be careful betting on such an outcome.

$50.00 discount with code: Privilege

As mentioned, the bulls closed markets higher, but this also happened to be near resistance.  The US futures are mixed at this point and there are a number of major earnings reports this morning.  In addition to this, we have a weekend full of virus news coming.  So be careful relying on whatever happens today to be an indicator beyond today’s close.

Be cautious when considering any new positions.  And remember, nobody ever went broke taking profits and reducing risk. Above all, wait for the trade to come to you…plan your trade and trade your plan.

Ed

No Swing Trade Ideas for your consideration and watchlist for Friday. 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

|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

Viral Economic Impacts Grow

by
Viral Economic Impacts

We have our biggest day of earnings reports this week, but the market’s attention seems to have shifted this morning the viral economic impacts that continue to grow.  As more and more companies close their doors, food shortages have spiked prices, and supply chains are breaking down.  The numbers of infected continue to grow and markets around the world are reacting to the potential impacts of the outbreak.  Volatility and uncertainty make for a challenging trading environment so plan your risk carefully.

Overnight Asian markets not closed due the extended lunar holiday fell sharply during the night with Taiwan dropping nearly 4%.  This morning European are decidedly bearish across the board in reaction to the rising death toll from the virus.  Ahead of the huge round of earning reports and GDP numbers, US Futures point to a nasty gap down at the open. 

On the Calendar

On the Thursday earnings calendar, we have our biggest day of reports this week with over 190 companies reporting.  Notable earnings include but are not limited to AMZN, MO, AMGN, ABC, BIIB, BX, KO, DHR, DOV, DD, EA, LLY, EPD, BEN, GWW, HSY, LEVI, NOC, DGX, RTN, SHW, UPS, X, VLO, VZ, V, WDC, & WYNN.

Action Plan

After gaping up into price resistance, the bears eventually won the day, producing a pop and drop pattern and raising concerns of a possible lower high in the indexes.   The FOMC made no changes to the interest rates and said that business investment is declining.  Of course, the President continues to say the rates should be zero as continues to berate them on in the press.  MSFT extended its gains after the bell, producing solid earnings and growth in its cloud business.  TSLA beat analysts estimate also rising even though the company lost 861 million last year but better than the more than 900 million loss the year before.

New virus fears are creeping back into the market this morning as deaths rise to 170, and the confirmed cases continue to expand.  Food shortages in China are causing prices to spike with producers closed as more and more businesses close.  Asian markets that are open fell sharply overnight, adding pressure to markets around the world.  With a big day of earnings that includes an after the bell report from AMZN, anything is possible and traders should expect volatile price action to continue.  As of the time of writing this report, the Dow Futures point to a substantial gap down of nearly 200 points but that could change substantially as morning earning roll out.  Remember, Price is King, remain focused on that set-aside bias and trade the chart.

Trade Wisely,

Doug

Bears Finding Strength?

by

Stocks gapped higher Wednesday, as markets looked to good earnings and tried to ignore coronavirus for a second straight day.  However, this gap woke up the bears and the rest of the day was a selloff back down to Tuesday’s closing levels.  The DIA ended the day dead flat, the SPY closed down 0.09%, and the QQQ gained 0.16% (after coming back after a morning swoon).  The VXX gained slightly to 14.85 and the T2122 fell back to 33.90, so it remains in the mid-range.

AAPL helped markets after their Tuesday evening beats resulted in them printing another all-time high on Wednesday.  Oddly, BA rallied 2% on the day even though it reported its first loss in decades before the open.  Other earnings reports were too numerous to mention. 

Another story during the day was the Fed leaving rates unchanged and saying it plans to continue adding liquidity via REPO operations through at least April.  Chairman Powell also stressed the need to reach a 2% inflation target, meaning the Fed will be slow to raise rates in the foreseeable future.

Despite the earnings and Fed news, the coronavirus story remains at the top of mind.  The death toll has now topped 170 with 7,700 confirmed cases globally. (There are also tens of thousands of potential cases/patients being tracked.)  Business shutdowns, flight cancellations, city quarantines and major companies telling employees to work from home (for example Google and Microsoft) continue to pile up, especially focused on China.

Thursday’s major economic news is limited to Final Q4 GDP and Weekly Jobless Claims (both at 8:30 am).  However, once again there will be way too many earnings reports to list the tickers all here.

Overnight, Asian markets were heavily in the red as virus fear grow and traders returned from their holiday.  In Europe, markets are also red across the board at this point in their day.  As of 7:45 am, U.S. futures are pointing to a gap lower of three-quarters of a percent.

$50.00 discount with code: Privilege

Wednesday’s close near the lows implies that we will see a lower-low Thursday.  The US futures seem to be confirming this signal.  So, virus fear may be coming back into the forefront.   However, a large number of earnings have the power to jerk us around. 

Be cautious when considering any new positions.  Look for opportunities, but hedge your risks, keep taking profits and move your stops to protect yourself. Above all, wait for the trade to come to you…plan your trade and trade your plan. Remember, it’s the consistent base hits, not the occasional home run, that wins the pennant.

Ed

Swing Trade Ideas for your consideration and watchlist today: ERI, MU, STX, CVS, LULU, MUSA, AGN, KLAC. 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

|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

Big day of Earnings and Economic Reports.

by
Big Day

Today brings another big day of earnings and economic reports punctuated by the FOMC rate decision at 2:00 PM Eastern.  AAPL reported strong earnings results yesterday, but by in large the yesterday’s round of earnings was rather disappointing with PFE, MMM, SBUX, AMD, & EBAY moving lower after reporting.  Even with the virus outbreak cases rising above 6000, futures markets are still pushing for a bullish open on the back of the AAPL result and in hopeful anticipation of better reports today.  Anything is possible, so plan your risk carefully.

With the extended lunar holiday, China’s market remains closed but Hong Kong fell as much as 3% overnight in reaction to the virus economic impacts.  European markets are cautiously shaking off the coronavirus concerns sporting modest gains across the board this morning.  US Futures opened trading positive last night and has managed to maintain the bullishness all night.  Futures point to a gap up open ahead of earnings reports and economic news and the FOMC.

On the Calendar

On the hump day earnings calendar, we have 150 companies fessing up to quarterly results.  Notable reports today include but not limited to TSLA, ANTM, ADM, ADP, AVY, APRN, BA, EAT, CP, CRUS, GLW, DOW, DRE, ESS, FB, GD, GE, ILMN, LRCX, LVS, MPC, MKTX, MA, MCD, MSFT, MAA, MDLZ, NSC, NVS, PYPL, PGR, ROK, RCL, NOW, SWK, & TROW.

Action Plan

Although yesterday’s round of earnings was a bit disappointing, AAPL’s beat seems to be enough to inspire the bulls in the future markets higher.  There also seems to be a lot of bullish anticipation for the huge round of earnings today.  The coronavirus outbreak has now surpassed the 2003 SARS outbreak, with now more than 6000 confirmed cases with 132 deaths as this health crisis continues.  The President has now stopped all flights between the US and China, and SBUX was the first company to admit the outbreak will negatively affect future earnings.  Interestingly enough, the market appears unconcerned with the futures currently pointing to modest gap up open.

The market will also have plenty to digest on the economic calendar with International Trade in Goods, Pending Home Sales, Petroleum Status, and of course, the FOMC rate decision at 2:00 PM eastern.  With yesterday’s rally, the indexes are testing or near price resistance levels.  As I looked through my watchlists yesterday, the majority of the stocks were also pushing up into resistance levels providing relatively high-risk trades.  Traders should guard themselves against overtrading at price resistance and avoid chasing with the fear of missing out guiding your decision making.

Trade Wisely,

Doug