Earnings Overshadowing Virus Story

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Coronavirus remains the lead, but bulls around the world decided two consecutive days of fear was enough.  Likewise, the US major indices gapped higher and found a little follow-through on Tuesday.  The SPY closed up 1.05%, the DIA up 0.68%, and the QQQ up 1.54%.  None of these were new all-time highs, but the relief was palpable.  All 10 major sectors were up on the day and the VXX fell to 14.83.

Despite the market action on the day, the coronavirus remained the lead story overall. During the day there were many reports of new government travel advisories, airline flight cancellations and companies closing Chinese operations and/or evacuating staff.  In addition, there have now been confirmed human-to-human transmissions outside of China.  Meanwhile, the US has “fast tracked” a vaccine, but it will be at least three months before the early-stage clinical trials can even begin.

In other news, the defense completed their presentation in the Impeachment trial of President Trump and the Senate Majority Leader said he did not have the votes to block witnesses at this point. However, he has two more days to wrangle enough votes while Senators ask their questions. We should find out Friday whether the trial will continue.

On the earnings front, the most noteworthy was the AAPL report after the close.  It posted large beats on both top and bottom lines.  However, it did not skyrocket in after-hours reaction. Meanwhile, SBUX (which also beat expectations), became the first company to warn that the coronavirus may materially impact their fiscal 2020 results. So far this morning, BA reported a loss on the 737 Max debacle while MCD and GE posted beats.

Overnight, Asian markets are mixed, but mostly red.  In Europe, markets are green across the board at this point in the day.  As of 7:45 am, U.S. futures to a half percent gap higher on earnings news.

Wednesday’s major economic news is limited to the Dec. Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), the FOMC Rate Decision (2 pm), and the FOMC Press Conference (2:30 pm).  There are too many major earnings, both before the open and after the close, to list here.  Needless to say, it will be a heavy earnings day.

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As mentioned yesterday, it’s going to be a long time before the coronavirus story is over.  However, in the grander scheme, and as SBUX proved last night, it’s really just an excuse for markets.  We have been rallying for months without breaking trend or even closing below the T-line until last Friday.  In short, the bears were long past due a little time in the sun.

Tuesday may just have been Mr. Market reminding the bears not to get too cocky about their new momentum.  It could also be that the bulls had just needed rest and earnings has now given them the new energy to take back control.  Since we don’t know which it was, use some caution before getting too far into either camp.

Look for opportunities, but hedge your risks, keep taking profits and move your stops to protect yourself. As always, 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: SHOP, PLAN, GE, CIEN, YNDX, CDAY, PLNT, VG, UTHR, NWL. 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

Outbreak Fears

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The virus outbreak fears sent investors running for cover yesterday wiping out this year gains in the biggest point decline since October last year.  A parade of talking heads hit the financial news yesterday, trying to convince the reaction was overblown and some even talked up the idea of buying the pullback.   Although very self-serving as they talked up their book, the most certainly could be right even though the confirmed cases more than doubled to 4500 overnight.  Set that aside, and we still have to deal with broken trends and price supports, which now place some resistance above.  Stay focused on price for clues.

Asian markets not closed for the holiday struggled last night with South Korea stocks falling 3% as the virus deaths climbed over 100.  European markets are modestly green across the board as cautious investors monitor earnings and virus news.  US Futures, on the other hand, point to a gap up open with Dow suggesting about a 100 point gain ahead of several market-moving earnings and economic reports.  Be careful chasing the gap and consider your risk carefully when we reach up to test price resistance.

On the Calendar

On the Tuesday earnings calendar, we have a big day with nearly 100 companies reporting their profit or loss results.  Notable reports include AAPL, MMM, AMD, ALK, AOS, BXP, CNI, CIT, EBAY, EQR, HOG, HCA, LEA, LMT, MKC, NUE, NVR, PNR, PFE, PII, PHM, SBUX, UTX, XRX, & XLNX.

Action Plan

Fears around the coronavirus outbreak put substantial pressure on the major averages wiping out the year’s gains in one fell swoop.  The question is it justified or has virus fear lept over common sense?  That’s hard to tell with the number of individuals with the illness more than doubling overnight to 4515 confirmed cases.  With just five confirmed cases in the US and the CDC monitoring possibilities in 26 states, it seems to pretty contained at least at the moment.  The industry sent a string of talking heads out yesterday trying to convince the investors there is no need to panic with several trying to convince folks this is a buying opportunity.  While appearing very self-serving talking up their book of business, they most certainly could be current.

Although the drama of the Trump impeachment trial continues to grow, the market itself seems to have very little concern about the proceedings at this point.  Focus today will be on the big round of earnings reports punctuated by the APPL results coming after the bell today.   Durable Good’s, Case-Shiller, and Consumer Confidence numbers will also have some influence on the sentiment of the day as the FOMC meeting begins.  Technically speaking, index trends and price support levels broke with yesterday’s selloff.  That means as the buy the dip crowd rushes back in, it would be wise to remember, we now have price resistance levels above that must be recovered before moving higher.  Certainly doable but never forget that is also the place to watch for potential failures if virus fears remerge or key earnings reports happen to disappoint.

Trade Wisely,

Doug

Markets Calming For The Moment?

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Coronavirus racked up another win Monday, taking down US markets just as they had Asian and European markets before the US opening bell.  After the gap-down of over 1.5%, the rest of the day was a grind as the bulls tried to fade the gap and the bears said not so fast.  At the end of the day, we were left with indecisive candles with large upper wicks with the SPY down 1.60%, the DIA down 1.57%, and the QQQ down 2.07%.  The VXX gapped higher and after volatility ended near the highs, up 10.39% to a still low 15.72.  However, the T2122 has now fallen well into oversold territory at 8.26.

The economic impacts of coronavirus led the news all day Monday.  It is now reported that many US companies are suspending retail as well as production operations as a result of the threat.  (Bear in mind that the production part of this is not yet a real impact as pretty much all operations in China are normally shut down for many weeks at this time of year.)  Other news included reports that over 100 deaths and 4500 diagnosed cases have been reported worldwide.  In the US, the CDC has confirmed at least five cases, while 110 patients across 26 states are being monitored as possible cases.

In other news, Huawei has been officially allowed to be part of the UK’s 5G infrastructure, defying US pressure to exclude the company on security grounds.  BA was able to secure $12 billion in financing to get it through the 737 Max crisis.  Finally, President Trump’s impeachment defense will rest today. The rumors are that the Sunday bombshell about John Bolton may have changed the math in favor of the demand for witnesses. If true, this would very likely drag the trial on past the date of State of the Union speech.

Tuesday’s major economic news is limited to the Dec. Durable Goods Orders (8:30 am) and Conf. Board Consumer Confidence (10 am).  Major earnings on the day include MMM, AOS, HCA, HOG, LMT MKC, NUE, PCAR, PNR, PFE, PHM, UTX, and XRX before the open.  After Tuesday’s close the market hears from ALK, MXIM, SBUX, EBAY, AMD, AAPL, BXP, CHRW, EQR, PFG, SYK, XLNX.

Overnight, Asian markets are mostly closed (Lunar New Year), but the NIKKEI was green as it shook off virus fear.  In Europe, markets are also green across the board at this point, as fear seems to have subsided for now.  As of 7:30 am, U.S. futures are pointing to a significant gap higher of between half and eight-tenths of a percent.

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It looks like market fears may be calming a bit after a rough couple days. However, nothing has improved on the coronavirus front and that story is very likely to get worst before it gets better. So, be careful and don’t assume the market has moved on from the story once and for all. Still, the bulls have remained very resilient for months. 

Regardless of what happens, all we can do is stick with the trends.  In this case, that may well mean stepping aside, hedging more or getting small until markets settle. If you do look for trades, hedge your risks, keep taking profits and move your stops to protect yourself. Above all, wait for any new trade to come to you…plan your trade and trade your plan.  

Ed

Sorry, but no Swing Trade Ideas for your consideration and watchlist today. 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

The perfect storm for Price Volatility

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A spreading virus threat, a big week of earnings, economic data including an FOMC rate decision as well as an ongoing impeachment trial, could prove to be the perfect storm for price volatility.  Markets around the world are reacting to the quickly spreading threat of the coronavirus that’s injecting a huge economic uncertainty to its potential impacts.  Markets hate uncertainty and not much that creates more fear than a spreading contagion with no cure. Plan your risk very carefully as quick news-driven reversals and large morning gaps are possible during this uncertainty.

Japan traded lower in response to the virus, while most Asian markets remain closed for the lunar holiday.  European markets are falling sharply this morning as virus fears grow, and US Futures are reacting sharply lower this morning as well.  At one point, Dow futures fell 500 points but have recovered slightly this morning now suggesting a gap down around 400 points at the open.  Hold on for a bumpy ride!

On the Calendar

On the Monday earnings calendar, we have over 70 companies reporting.  Notable earnings include ARNC, CR, DHI, GGG, HMST, JNPR, & WHR.

Action Plan

We all knew there was an overextended condition in the market, but who could have guessed it would be a microscopic virus that would bring out the bears.  With now five confirmed cases here in the US, nearly 2900 cases worldwide and over 450 people now listed as critical worries of severe economic impacts rose dramatically over the weekend.  Oil prices dropped into the low 50’s as travelers are choosing to reduce their movements.  In China, more than 25 million people are locked down in cities where public travel has stopped operating and many businesses have closed during their biggest holiday session.  During the evening, the Dow futures dropped 500 points as markets around the world react to the quickly spreading virus.

We have a huge week of earnings with some of the biggest companies reporting this week along with and FOMC rate decision and a big week of economic reports.  Combine all of that with virus jitters and ongoing impeachment trial, we have the conditions for the perfect storm of price volatility.  Plan your risk very carefully!  Inexperienced traders might want to consider sitting this out and protecting your capital until this uncertainty passes.  Expect quick news generated price reversals and large morning gaps that could be up or down, and the market reacts to the unknown.

Trade Wisely,

Doug

Coronavirus Has Markets Spooked

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Markets took a hit Friday as the spread of coronavirus spooked the bulls.  From a candlestick perspective, all three indices printed Bearish Engulfing signals on the day.  At the close, the SPY had lost 0.89%, the DIA lost 0.60%, and the QQQ lost 0.84%.  As you’d expect, the VXX rose 3.87%, but to a still historically-low 14.24.  Meanwhile, the T2122 fell closer to, but still not in oversold territory at 28.09.  With this all said, all the indices sit only about one percent from their all-time highs.

The spread of coronavirus has accelerated over the weekend, with the death toll now at 80+, about 2,900 cases confirmed and the WHO estimating some 100,000 people worldwide have the virus.  The US Center for Disease Control (CDC) now says there are 5 confirmed cases in the US and they are tracking close to 100 other suspected cases across 22 states. The biggest concern is that China says they have learned it can take up to 14 days for the virus to exhibit symptoms (like the fever which is being used to screen for it) and in the meantime, the virus can still be transmitted between people before those symptoms even show up.

While this is concerning and global markets are spooked at the thought of a pandemic, we do need to keep this in perspective. So far, the standard flu kills more than 100 times as many people each year as this virus has killed. And we haven’t seen “panic in the streets” over the flu.

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In the US, the main story continues to be the impeachment trial.  The House Managers (Prosecution) wrapped up their 3-days of presentation on Friday. The President’s Counsel then began by using entertainment language as they classified their Saturday presentation as a “trailer.” They resume Monday, with the speculation now being their portion will be shorter since the facts are essentially undisputed. In related news, it was leaked Sunday night that the President’s former National Security Advisor John Bolton claims the President told him directly that aid to Ukraine was linked to them investigating the Bidens (this claim to be made in his upcoming book). Time will tell whether he ever gets asked that under oath.

Monday’s major economic news is limited to the Dec. New Home Sales (10 am).  Major earnings on the day include ARNC, BMY, and DHI before the open.  After Monday’s close the market hears from FFIV, JNPR, PKI, and WHR.

Overnight, Asian markets are mostly closed (Lunar New Year), but those open are in the red.  In Europe, markets are strongly red across the board at this point in their day.  As of 7:45 am, U.S. futures to a large gap down on between one and a half and two percent.

As of Friday, even with a bad day, the trend remained bullish. However, as the coronavirus story escalates markets seem spooked across the world. A major gap-down to start the week could definitely give the bears the upper hand for a bit. However, the bulls have remained very resilient for months.  Regardless of what happens, all we can do is stick with the trends.  In this case, that may well mean stepping aside, hedging more or getting small until markets settle. If you do look for trades, hedge your risks, keep taking profits and move your stops to protect yourself. Above all, wait for any new trade to come to you…plan your trade and trade your plan.  

Ed

Swing Trade Ideas for your consideration and watchlist: Short: SCHW, KEY, TGT, GPC. Long: VTR, SSRM, ETSY, FSS, FSM, ULTA, JNJ, GDXJ. 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

Coronavirus roused the sleeping bears.

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Coronavirus roused the sleeping bears

The worry over the spreading coronavirus roused the sleeping bears temporarily but calming words from the World Health Organization allowed them to drift back into dreamland.  By the end close of the day, the bulls were solidly back in control and with the big earnings beat out of INTC new records in the NASDAQ are likely at the open today.  During the night, the WHO held off on declaring a global health emergency for now but it will be interesting to see how the market deals with that pending possibility as we head into the weekend. 

Asian market rallied from early lows to close the week mixed but mostly bullish after the WHO decision.  European markets are decidedly bullish this morning in reaction to the WHO holding off on a global declaration.  US Futures also saw a strong bullish reaction during the night, now pointing to a solid gap higher ahead of morning earnings reports and the latest reading of the PMI number at 9:45 AM Eastern.

On the Calendar

On the Friday earnings calendar, we get a little break with just 36 companies stepping up to fess up to their results.  Among the notable for the day are NEE, APD, AXP, SYF, & SNV.

Action Plan

After a rather volatile day of price action, while the market expressed its concern for the spreading coronavirus, those tenacious bulls came charging back.  During the early evening, the futures traded positively but with rather modest gains until the WHO decided to hold off on declaring a global health emergency at least for now.  After their decision, Asian markets found their footing climbing out of the negative with following European indexes following suit and US futures extending their bullishness.  The big earnings beat from INTC after the bell looks to not only recover yesterday’s modest selling but open at new record highs this morning.

Now with 25 lives claimed by the virus and those infected expanding to over 800, it will be interesting to see how the market responds heading into the weekend.  Next week some of the biggest tech companies report such as MSFT, AAPL, FB, and AMZN.  At current prices, there will be a lot of pressure to perform, so let’s hope none of them stumble and that the health officials begin to win the fight against corona and we can avoid the major economic impacts of travel restrictions.  As normal, I will be looking to reduce my risk heading into the weekend, tucking in gains for a restful and relaxing weekend.

Trade Wisley,

Doug

Bulls Less Worried After WHO

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After a rocky start (likely on coronavirus epidemic fears), markets rebounded in the afternoon to close near their highs Thursday.  The SPY (up 0.25%) and the QQQ (up 0.32%) both closed at new all-time high closes, while the DIA closed slightly lower (down 0.09%), dragged lower chiefly by TRV, even after beating earnings expectations.  The VXX also fell to 13.49 and the T2122 remains in mid-range at 50.74.

In the afternoon, the World Health Organization said it was a bit too early to consider the coronavirus a public health emergency worldwide, saying it remains a “local” Chinese emergency for now.  As mentioned above, this seemed to help markets.  However, this story continues to lead global news as China has locked down (quarantined) more cities each with millions of inhabitants (at least 40 million at this point) and banned public transportation in those areas.  They have also banned the annual Lunar New Year celebration events that had been scheduled in Beijing. 

While apparently most of the 26 deaths from this virus have so far been elderly patients with pre-existing ailments, the concerning news Thursday was that some of the confirmed cases have shown no fever.  This is significant because the only screening tool available at the moment is measuring the temperature of travelers.  So, any cases not showing a fever would slip through transport hub screening undetected.

$50.00 discount with code: Privilege

In the US, the main story continues to be the impeachment trial.  The House Managers (Prosecution) wrap up their pre-determined 3-days of presentation on Friday. The President’s Counsel then begins their presentation Saturday, with the speculation now being it will be shorter since the facts don’t seem to be disputed.

For markets, earnings still hold major sway as INTC posted a big beat (after rallying the last couple days, almost as if that was expected).  Others posting beats after the close included DFS, TEFC, SIVB, SWKS, and ISRG. On the other side, ASML and RJF both posted misses.

On Friday, the major economic news is limited to Jan. Mfg. and Services PMIs (both at 9:45 am).   Major earnings reports are limited to APD, NEE, and WAT before the open, as well as AXP and SYF after the close.

Overnight, Asian markets were in the green.  In Europe, markets are mixed, but mostly in the green at this point in their day.  As of 7:45 am, once again U.S. futures are pointing to another gap higher of between a quarter and a half a percent.

The bulls remain resilient as the trend continues higher.  Still, the charge is not head-long, perhaps with some combination of fear over Coronavirus, Impeachment, weekend news leading to a little caution. Regardless, the trend remains intact.  So, while caution is warranted, don’t fight the trend.  Look for long opportunities, 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.  

Ed

No Swing Trade Ideas for your consideration and watchlist on Friday. Remember to take profits and hedge your risks. It’s a long way to Monday with at least political and health headline risks in play. 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

Just a Pause or Toppiness?

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Markets gapped higher Wednesday, but then drifted back toward flat the rest of the day.  At day end, the SPY gained 0.01%, the DIA lost 0.01%, and the QQQ gained 0.26%.  The VXX gained 0.82% to a still-low 13.54 and the T2122 remains in the mid-range at 49.57.

The Coronavirus story continues to grow.  China now reports 17 deaths, nearly 600 confirmed cases and it has both quarantined the city and stopped public transport in the city where it was first confirmed.  This threat is complicated by the Chinese New Year (traditional travel period) which is happening right now.  Bloomberg reports literally hundreds of millions of Chinese are expected to travel this week and in 2019 nearly 3 billion trips were taken by Chinese in the 40 days from the Lunar New Year and the Spring Festival (the period that starts this week).  And those trips are not all local.

$50.00 discount with code: Privilege

In the US, the main story continues to be the impeachment trial.  Still, BA also continues to make the wrong kind of news as UAL told reporters it does not expect the 737 Max to fly before the end of summer, the FAA head said there is no timeline for reapproval of that plane and BA’s new CEO told Reuters that it is shelving a new mid-market aircraft project (a $15-$20bil  project) due to the 737 Max crisis. 

However, for markets, it seems that it’s all about earnings versus lowered expectations right now.  After hours last night ASML, BKR, KMI, and RJF all reported misses.  There will also be a number of major earnings reports Thursday, with CMCSA, PG, AAL, KEY, KMB, MTB, MKC, LUV, SWK, TRV, and UNP reporting before the open.  After the close AEP, DFS, HBAN, RMD, SIVB, SWKS, TXN, VFC, INTC, and ISRG all report.   

Other major economic news is limited to Weekly Jobless Claims (8:30 am) and Oil Inventories (11 am).  Dec. Home Sales (10 am).  CNBC feels there is a small bearish risk for US Markets from the ECB rate decision due Thursday about 7:45 am.  However, the most likely scenario is that this is a non-event.

Overnight, Asian markets were mostly in the red.  In Europe, major bourses are also in the red at this point in their day.  As of 7:45 am, once again U.S. futures are pointing to an open that is flat to lower by two-tenths of a percent.

Markets are showing a little hesitance this week. Perhaps this is due to being priced for perfection at the all-time highs. Or it could be some combination of fear over Coronavirus, Impeachment, or maybe even (gasp) less than thrilling earnings. Regardless, the trend has not been broken. It just seems to be in a lull so far this week. Keep reminding yourself that we are extended, but the trend remains bullish. So, while caution is warranted, don’t fight the trend. Look for long opportunities near support but don’t chase. Hedge your risks, keep taking profits on a regular basis and move your stops to protect yourself. Above all, wait for the trade to come to you…plan your trade and trade your plan.  

Ed

Swing Trade Ideas for your consideratoin and watchlist: FMC, HOMB, MYL, ABBV, UTHR, VG, URI, CDW, SHOO, SKX, CAH, ACAD. 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

Wild-eyed bullish charge slowed.

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bullish charge slowed

The wild-eyed bullish charge slowed the last couple days as early rally’s struggled to hold onto the highs.  However, the bears seem to be in hibernation with little to no willingness to even test index price supports.  Trends remain bullish as we head into the biggest day earnings reports this week.  The impeachment trial in the Senate seem to be little more than a distraction during the spreading coronavirus is stealing the media attention from the political drama.  As earnings roll out anything is possible so stay focused on price and plan your risk carefully.

Asian markets closed seeing only red as China locked down two cities attempting to slow the spread of the virus that has now infected nearly 600.  European markets keeping an eye out for an ECB decision and new worries about trade with the US currently have their indexed mixed but mostly lower this morning.  Even the US Futures are displaying caution this morning with mixed but slightly bearish results ahead of a big day of earnings reports.

On the Calendar

We have our biggest day of earnings reports this week and the 1st quarter reports with more than 100 companies in the hot seat today.  Some of the notables include AAL, CMCSA, DFS, ETFC, FCX, INTC, ISRG, JBLU, KEY, KMB, MTB, ORI, SWKS, LUV, TRV, UNP & VFC.

Action Plan

The little rally yesterday ended the day little changed with the Dow closing down less than 10 points.  Although the indexes appear overbought and stretched away from key moving averages, the bears seem to be hibernating with little to no interest in attacking at the moment.  During the night, China put 2 of its cities on lockdown as the coronavirus continues to spread with nearly 600 confirmed cases and 17 deaths so far.  As a result, Asian markets were red across the board as the fear spread amongst investors.  European markets are trading flat to slightly bearish this morning as they wait and ECB decision and the worry of trade issues rising after tough Presidential talk.

Overall index trends remain bullish and thus far, no daily price support levels have breached.  To find anything remotely bearish in the indexes, you have to look at 15 min. charts to see downtrends possibly developing.  With a big of earnings reports, anything is possible but futures are trading mixed to slightly lower this morning choosing a little caution rather than the wild-eyed bullishness we have experienced the last several weeks.  I would not be at all surprised to see a surge of volatility this morning as earnings roll out.

Trade Wisely,

Doug