Markets ignore impeachment of the President and power higher
once again, setting new record highs. Santa
Claus has done well this year! Now the
question on trader’s minds is, can this rally continue right into the weekend
or will there be some profit-taking as trade reduce risk ahead of the
holiday. With a light earnings calendar,
the market will likely look to the big reports on the economic calendar for inspiration. As of now, the bulls are solidly in control
of the bullish trends, and the bears seem to no willingness to fight back as
the VIX continues to decline.
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Overnight Asian markets closed the week mostly lower as
Japan’s automakers fall after the US House passed the North American trade
agreement. European markets see only
green this morning as the rally continues after the Phase 1 trade deal lifted
spirits. Here in the US, the Futures
currently point to a flat slightly bullishly leaning open ahead of GDP, Personal
Income and Outlays, & Consumer Sentiment reports.
On the Calendar
On the Friday Earnings Calendar, we have just 14 companies fessing
up to their results. Notable reports,
BB, CCL, & KMX.
Action Plan
Markets defied the Presidential impeachment by the House
rallying to new record highs confident that the Senate will respond with an
acquittal. With the mid-week holidays
just around the corner, Santa has delivered the market a very nice rally without
the wild volatility. Perhaps this
bullishness can continue right on through the new year, but being a little more
conservative, I’m likely to go to the bank today, lowering my risk into the
weekend. Don’t get me wrong; there is
nothing in the charts at this point that suggests bearishness but anything can
happen over the weekend and I’m happy with a bird in the hand.
Five Golden Rings!
With a relatively light day on the earnings calendar, I
would expect the market to look to the economic reports of GDP, Personal Income
and Outlays, & Consumer Sentiment to find inspiration today. Consensus estimates suggest the reports will remain
strong so a surprise reading could upset the apple cart, so as always, stay focused
on price action for clues. If you’re
traveling this weekend to join family and friends to celebrate Christmas, I
wish you all safe travels and a Very Merry Christmas!
The bulls pushed markets steadily higher all day Thursday. All three major indices printed new all-time high closes with the SPY up 0.41%, the DIA up 0.44%, and the QQQ up 0.63%. This move was made on roughly average volume and good breadth as T2122 remains at the 84 level. Meanwhile, the VXX fell again to 14.86 as there is no fear at all in stock markets now.
Economic data was mixed on Thursday as Jobless claims fell, but fell less than expected. In addition, the Philly Fed Mfg. Index was much lower than expected. However, MU, CAG, and DRI all posted strong earnings before the session.
That said, the main news story of the day was impeachment again. Markets seem to have discounted it, probably seeing it as a stalemate that can do little economic harm. The Democrats got an indictment, but the Republicans refuse to recognize those charges and intend to acquit the President regardless of evidence/testimony. The only question remaining seems to be what the January Senate “trial” will look like. Regardless, the market has not taken this as bad news, at least as things stand now.
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After hours Thursday NKE posted beats on both the top and bottom lines. Friday’s major economic news includes Q3 GDP (8:30 am) and Michigan Consumer Sentiment (10 am). The only major earning report on the day is KMX, which reported a miss on earnings but a beat on sales already this morning.
Thursday’s major economic news includes Weekly Jobless Claims and the Dec. Philly Fed Mfg. Index (both at 8:30 am) and Nov. Existing Home Sales (10 am). Earnings before the open include ACN (beat on both lines), CAG (beat on both lines), and DRI (beat on earnings, missed on revenue). Meanwhile, NKE reports after the close.
Overnight, Asian markets were mixed, with Hong Kong a bit higher while the others were flat or in the red. In Europe, markets are also mixed at this point. As of 7:30 am, U.S. futures are just on the green side of flat all pointing to less than a tenth of a percent gain at the open.
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Fed rates remain paused (and heavy QE is underway). A phase-one Trade Deal also seems in hand and there are no major earnings or news events souring moods at this point. So, the bulls continue to have the momentum heading toward the year-end holidays. The only fly in the ointment now is fear of over-extension and the unknown. As I’ve said (continuously) continue to plan your trades, and trade your plans. Keep taking profits without being too greedy, move your stops to protect yourself and wait for the trade to come to you (don’t chase).
Ed
Sorry, but no Swing Trade Ideas for your watchlist on Friday. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
You can’t make this stuff up! While the market consolidates at record highs,
the House votes to impeach the president while he takes the stage at a packed
out campaign rally. Thus far, the market
seems to have taken the vote in stride as the bullish trend remains intact. With several earnings and economic reports this
morning, perhaps the market can find some inspiration to break out of the
consolidation that began after the Monday morning rally. However, with the Holiday’s just around the
corner volume is likely to remain light after the morning burst of energy.
Asian markets closed mixed but mostly lower overnight, with
the central bank holding rates steady. European
indexes trade mixed but slightly lower this morning after the Bank of England announces
no rate changes. US Futures have bounced
around the flat-line this morning with an ever so slight bullish lean ahead of
an economic calendar data dump.
On the Calendar
On the Thursday Earnings Calendar, we have our biggest day this
week, with 26 companies reporting. Among
the notable reports are RAD, ACN, CAG, DRI, SAFM, FDS & NKE.
Action Plan
As expected, the market wandered sideways in consolidation, waiting
for some inspiration. During the evening,
the full House voted to impeach President Trump. The tally showed that not one of the President’s
party voted in favor of the impeachment with just a few from the opposing party
not voting to impeach. So far, the
overall market has seen no reaction to the vote. Overall the bullish trends remain intact and
the bulls have the upper hand although there was a tiny hint fear with the VIX
rising ever so slightly at the close yesterday.
After the bell yesterday MU reported better than expected
earnings lifting the stock and this morning, we have a few reports that may
help the market find some inspiration.
However, it’s more likey it will be the economic reports, Jobless
Claims, Philly Fed Survey, & Existing Home Sales that will fuel the bulls
or bears this morning. With the Holiday’s
rapidly approaching, don’t be too surprised if a morning burst of energy quickly
fades into light and choppy price action.
Once again Wednesday, markets made a small gap higher only to fade the gap in a small range. The SPY (by 2 cents) and QQQ (by 16 cents) both eked out new all-time high closes again while the DIA closed down just 0.07% from its own all-time high close. This action the last two days is certainly a consolidation and it does look a little bit “toppy.” However, the trend remains bullish and breadth continues with T2122 now at 84.39, which is barely in overbought territory.
After hours MU beat estimates on both the top and bottom lines. It also reported that it had now received all required licenses for supplying Huawei. This had been a massive overhang for MU, because the Chinese company is Micron’s largest customer.
Also, a federal appeals court ruled in favor of a petition supported by the Trump Administration. They told a lower court that the “individual mandate” of the Affordable Care Act (Obamacare) was unconstitutional. However, instead of striking down the entire law themselves, they ordered the original lower court to consider whether or not the whole Act, including coverage for pre-existing conditions, should be killed. This “half a loaf” ruling virtually guarantees the case will be appealed to the Supreme Court (maybe by both sides) and is unlikely to be decided before the 2020 election. In turn, this also means Healthcare and Health Insurance will be political hot topics again and that the longer-term Insurance industry outlook is likely to remain in doubt for at least another year.
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However, the biggest overnight news story was impeachment. After another day of alternate narrative (reality?), the House voted to impeach President Trump on both counts (Abuse of Power and Obstructing Congress). The next step will be to send the indictments to the Senate for trial. Luckily for the President, Republicans have flat out stated they don’t intend to conduct a fair trial (as constitutionally mandated). Instead, they say they intend to simply acquit the President of all charges. And they have plenty of votes to do just that since conviction requires a supermajority. To me, the interesting question will be Chief Justice Robert’s (who will preside) position on the Senate process and the idea of declaring a verdict before the charges or evidence is even delivered.
Thursday’s major economic news includes Weekly Jobless Claims and the Dec. Philly Fed Mfg. Index (both at 8:30 am) and Nov. Existing Home Sales (10 am). Earnings before the open include ACN (beat on both lines), CAG (beat on both lines), and DRI (beat on earnings, missed on revenue). Meanwhile, NKE reports after the close.
Overnight, Asian markets were all slightly in the red. In Europe, markets are mixed at this point. And as of 7:30 am, U.S. futures are pointing toward another slight gap higher of between 1/10th and 1/4th percent.
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With Fed rates on pause (and heavy QE underway), a phase one Trade Deal in hand, and earnings out of the way, there doesn’t seem to be many obstacles in the bull’s path. Despite this, the rally has been on pause for a couple of days on consolidation. All we can do is continue to trade the chart we get and focus on the swings. So, continue to work the cliché…plan your trades, and trade your plans. Keep taking profits without being too greedy, move your stops to protect yourself and wait for the trade to come to you (don’t chase).
Ed
Swing Trade Ideas for your watchlist and consideration: NEO, PINC, THO, SKX, TWTR, CREE, SPLK, DXC, WCG, VXX. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Consolidate Word Combining Companies Consolidation Organization
The trends remain bullish but since Monday afternoon, the market
seems very comfortable with the price level has slipped into a choppy
consolidation. With the VIX registering
little to no fear and light earnings and economic calendars, we may see much of
the same today. News on Brexit could
create some volatility. Although the market has largely ignored the impeachment
drama, there is the outside possibility of a market reaction once the official
vote occurs later today.
An RWO Membership is a Great Gift idea!
Asian markets closed mixed overnight as the monitored Brexit developments. European indexes are trading mixed and cautious on the revived fears of a no Brexit deal. US Futures this morning hover around the flat-line, looking for some inspiration that may not occur until the bigger economic reports scheduled on Thursday and Friday.
On the Calendar
On the Hump Day Earnings Calendar, we have 15 companies stepping
up to quarterly results. Notable reports
today include MU, PAYX & GIS.
Action Plan
Today the House is likely to vote to impeach the president with
votes falling across party lines. Thus
far, the political has been little more than a distraction but we should not
rule out the possibility of price reaction after the vote. It may or may not occur but it’s better to prepare
than being caught flat-footed in the heat of the moment. Brexit is now back in the news as the Prime
Minister risks a No Deal exit from the Euro block by the end of the year. After the bell yesterday, FDX missed on
earnings and guided lower as the bad blood with AMZN continues to grow.
With a light day of earnings reports and only the Petroleum
Status number to react to on the Economic Calendar bulls and bears my find it
difficult to find inspiration. I would
not be surprised to see light choppy price action continuing the consolidation
that began Monday afternoon. That said,
the trends remain bullish, and with the VIX showing little to no fear the bears
seem unable to mount much of an attack. In
this environment, stocks with momentum can continue to higher or lower but as always
keep an eye on support and resistance levels for profit opportunities.
Markets gapped slightly higher again Tuesday, then they proceeded to fade and end the day flat, if mildly in the green. Still, as a result, all three major indices eked out a new all-time high close on indecisive candles. The bottom line is that while the bulls maintain control, they do not show great enthusiasm.
After hours Tuesday, FEDX missed earnings estimates and lowered their 2020 guidance. This may reflect the feud with Amazon although they also blamed the impacts of China tariffs. That said, it may provide some read-through to general economic activity.
Overnight the Auto industry saw a couple deals. Fiat Chrysler and Peugeot signed a binding merger agreement. This will create the world’s fourth largest auto company. In addition, Isuzu bought Volvo’s small truck division.
Early this morning, the Mortgage Bankers Association reported that mortgage applications fell 5% last week as rates flattened out (stopped falling). However, that number of applications remains 65% higher that the same week in 2018. In addition, both GIS and CTAS reported a quarterly beat with revenues in-line with expectations.
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The only major economic news for Wednesday are Oil Inventories (10:30 am). However, there will also be the House Impeachment vote (9 am), but that is not likely to be a big market-mover. The only earnings of note after the close are from MU.
Asian markets were in the green overnight. In Europe, markets are mixed, major labor strikes going on in the UK (Heath Service workers) and France (Transport workers). As of 7:30 am, U.S. futures are again mixed on either side of flat.
Favorite Charting Software
The Santa rally remains in place. However, we are not seeing a raging bull run, just a drift higher at the moment. This is not necessarily bad, because it slows the rate at which we get over-extended. Despite the optimism, remember that markets move in a zig-zag motion. So, the next pullback is not an “if” question, but rather a “when” question. Keep taking profits, moving stops, and trade your plans while we enjoy the Santa sleigh ride.
Ed
Swing Trade Ideas for your watchlist and consideration: ALLK, NKTR, TGT, CLR, FTCH, GT, KBH, WLL, LYB, PSX, IMMU, CHGG. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
In a display of force, the bulls rushed into the morning
session seeming buying with both hands quickly pushing the Dow up 200
points. However, about an hour into the
day, a switch flipped and, buying fatigue seemed to settle over the market giving
back half of the Dow gains by the close.
Overall breadth was strong as stock all over the market reached out to
new 52 week highs and inking new record index highs. With a light day on the earnings calendar this
morning, perhaps the Housing numbers can provide some inspiration.
The Gift of Membership!
Asian markets closed green across the board last night but
European markets are trading modestly in the red this morning after their
record-breaking rally yesterday. US Futures traded in the red most of the night,
and this morning continues to suggest a modestly bearish open ahead of earnings
and economic reports.
On the Calendar
On the Tuesday Earnings Calendar, we have 17 companies
fessing up to quarterly results. Notable
reports include CTAS, FDX, JBl & NAV.
Action Plan
11 Pipers Piping
In the morning session yesterday it seemed traders could not
buy stocks fast enough as the Dow surged more than 200 with good overall breadth. Then suddenly it seemed we hit a point of
buyer exhaustion and the rest of the day the market drifted sideways and south giving
up 100 of the Dow points previously gained.
The strong breadth would suggest there is more bullishness to come but
price action itself suggests a little caution with the Dow having left behind a
shooting star pattern while the IWM appears stalled at price resistance. The QQQ remained strong through the close,
but the SPY printed a hanging man suggesting a little caution is warranted.
Perhaps we can find some inspiration in the Housing Starts
number at 8:30 AM which according to consensus estimates, should remain strong. Also, keep an eye on the Industrial Production
and JOLTS reports. Futures trading in
the red most of the night and at the time of writing this report still suggest
a modestly lower open, but that could easily change based on earnings and
economic reports. Although the price
action is giving us contradictory signals, the overall index trend remains bullish,
and thus far, the bears don’t seem to have sharp teeth.
Markets gapped higher and were volatile on the day with all three major indices ending at all-time high closes. (SPY up 0.69%, DIA up 0.34%, and QQQ up 1.00%.) However, the SPY printed an indecisive Doji and the DIA printed a Shooting Star (or at least Gravestone Doji) type candle. The bottom line is that while the bulls clearly have control, there are some warning signs. In addition, T2122 is not in the overbought area at 83.46.
Among the major business news on Monday was that BA will halt 737 Max production in January. This comes due to the delays in FAA recertification, the loss of new sales and cancellations of existing orders have been mounting. For example, LUV (the largest US customer for 737 Max aircraft) canceled another month of 737 Max flights (300 per day), pushing the earliest they will fly those planes out again until at least April.
Another story was that the fight between FEDX and AMZN has heated up again. It seems Amazon announced it will no longer permit Amazon Marketplace Sellers to use FEDX for ground deliveries, effective immediately. In addition, AMZN has announced they will launch their own air delivery service, including 50 aircraft and an air delivery hub opening in Kentucky during 2021.
Overnight in the UK, British press reports that PM Boris Johnson is adding a clause to his Brexit Bill (which now has plenty of votes to pass). The new clause explicitly rules out any extension of the transition period (the post-breakup period when trade deal was to be negotiated). This means the EU-UK trade deal must be negotiated, written and passed by both sides within 11 months. While this sounds reasonable, it took the parties 3+ years just to agree to terms of the break-up and the trade deal has always been seen to be the much more complicated task. The UK Pound fell one and a quarter percent on the news.
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More China trade deal details also came from China overnight. It seems that part of their additional “Ag purchases” will be in the form of ethanol. They will also reclassify all trade with Hong Kong to be part of the Chinese portion of the phase one deal. (This Hong Kong move immediately wipes out $10 billion of their additional $40 billion in purchases from the US.)
The major economic news for Tuesday includes Nov. Building Permits and Nov. Housing Starts (both at 8:30 am), Nov. Industrial Production (9:15 am), and JOLTS (10 am). The only earnings of note are CTAS and FDX, both after the close.
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Overnight, Asian markets were green. In Europe, markets are mixed, but mostly in the red on the new hard EU-UK trade deal deadline. As of 7:30 am, U.S. futures are mixed on either side of flat.
The Santa Claus rally into year-end sure seems like a high probability. However, we all know the market psyche is fragile and that we worry about extension at these highs. All we can do is trade the market we are given and focus on short-term swings. We all know market move in zigs and zags. So, continue to take profits, move stops, plan your trades, and trade your plans.
Ed
Swing Trade Ideas for your watchlist and consideration: CTXS, FIVN, CROX, WCG, ENBL, WWE, GRUB. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
NWL Puts up 37.8 for us, KO Calls up 8% and we bought a little VXX today as well as CHGG. I know everyone wants a Santa Clause rally and we may or may not get one, you just never know.
But I do know if we stay consistent with our strategies and listen to the charts we can make our own Christmas.
Check it out Ed Carter will be hosting a small group (10 traders only) coaching class on December 28, 2019. Ed also asked if I would explain the steps I plan to take to double my “Road To Wealth” Account! Of Course, I said yes. Click Here to see More
✅ Like I said only (10 traders max) 3 spots left, we are very serious about this. We want to keep it small so we can make sure you completely understand what we teach. Only 3 Spots Left
Rick Saddler
$50.00 discount with code: PrivilegeFavorite Charting Software
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Let’s look at another chart I found in the LTA scanner and we discussed in the trading room. We’ll discuss what I like about it, what potential I see and how I might trade it. If you aren’t already in the room, you might think about taking a 60-day trial for just $49.
DISCLAIMER: The stocks we talk about are not recommendations to buy or sell. You must evaluate the risks and rewards yourself. Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is financial or trading advice. All information provided is intended for educational purposes only. You are advised to thoroughly test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
