Bulls Bang-out more New Records!

by
New Records
Quietly Waiting in the wings.

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

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

On the Calendar

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

Action Plan

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

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

Trade Wisely,

Doug

Relentless Bulls

by
Relentless Bulls

Bad news at Boeing and a spreading coronavirus roused the bears for a 150 point Dow pullback yesterday, but the futures point to gap up open this morning as the relentless bulls keep buying with no regard to the extended prices and historically high price to earnings ratios.  As we begin our biggest day of earnings reports this quarter, it looks like the lowered analyst’s estimates could continue to fuel the markets even higher.  However, a word of caution.  With stocks priced well beyond perfection compared to earnings growth, keep in mind just one stumble could trigger a quick reversal, so plan your risk carefully.

That is Question?

Asian markets shook off concerns of travel restrictions due to the spread of the coronavirus to close green across the board overnight.  European markets are however, muted at this hour showing mixed and cautious trading.  US Futures tossed caution to the wind rising sharply overnight and continue to point to a substantial gap up as ravenous bulls can’t seem to buy up high priced stocks fast enough. 

On the Calendar

On the Hump day earnings calendar, we have the largest number of reports so far this season, with over 80 companies fessing up to their quarterly results.  Notable reports include ABT, ALLY, BKR, CTXS, FITB, JNJ, KMI, LVS, RJF, RCI, SLM, STLD, TER, & TXN.

Action Plan

A bit of nervousness about the coronavirus temporarily woke up the bears yesterday with concerns that this contagious and very deadly virus could damage the economy restricting travel around the world.  Of course, the news that Boeing expects further delays before getting approvals to put the 737 Max back in the air aided in the selling yesterday after the company broke down below a key price support level.  After the bell, NFLX posted better than expected earnings but disappointed on subscriber number particularly in the US and Canada.  The initial price reaction was lower, but this morning NFLX is indicated modestly higher.  IBM, after reporting five straight quarters of decline, finally found the right stuff to top analysts estimates as their acquisition of Red Hat helped them turn the corner.

Even with the 152 point decline in the Dow, yesterday index trends remain intact with no break of price supports in the daily charts.  Futures have been in bullish mode all night long as we head into the biggest round of earnings so far this season.  In an interview, the President proclaimed the Dow would be 10,000 points higher if not for the Fed and indicated he was in pursuit of another tax cut to help it along even more.  Stay bullish but remember that many stocks are priced well beyond perfection.  Any stumble could create a quick and substantial pullback so carefully plan your risk carefully and resist chasing stocks already running.

Trade Wisely,

Doug

Bulls Seem Ready to Run Again

by

Markets held their ground Tuesday, off the absolute highs but not falling far.  The SPY closed down 0.20%, the DIA down 0.49%, and the QQQ down only 0.04%.  T2122 has fallen back to the mid-range at 57.57 and the VXX gained only a fraction to close at a still historically-low 13.43.

On the news front, the CDC confirmed the first case of coronavirus had made its way from China to the US in the short time it has even had a name (about a week).  In other news, BA took another beating as it said it does not expect regulators to allow the 737 Max to fly again until at least mid-2020.  Finally, the impeachment trial began with wrangling over trial rules. It seems the Republicans are still leaning toward just a summary presentation of House findings and then a vote to acquit. They blocked a Democrat call to subpoena documents the White House refused to give the House and both sides are arguing over witnesses.

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The interesting news out of Davos was almost all made by President Trump, as is his want.  While the need to adapt to Climate Change and the need to work together globally was the theme (and near-universal opinion of attendees), President Trump remains vocally opposed on both counts.  Once again, he pooh-poohed climate change as not proven and unneeded drag on the economy. He also urged all countries to employ trade policies that are in their own countries’ internal best interests.  He also attacked the Fed again (saying the economy would be at a 4% growth rate except for the Fed dragging it down). And Finally, he announced an attempt to reform the WTO (which he neutered last year by removing a quorum among the Trade Dispute Judges).

Wednesday’s major economic news is limited to Dec. Home Sales (10 am). However, there will be a number of earnings reports, with APH, GD, JNJ, NSC, NTRS, TEL, and TXT all reporting before the open.  After the close ASML, CCI, DFS, FFIV, KMI, RFJ, SLG, and VAR report.

Overnight, Asian markets were green across the board.  In Europe, markets are mixed, but mostly higher at this point in the day.  As of 7:45 am, once again U.S. futures are pointing to a hefty gap higher of between four-tenths and a two-thirds of a percent.

It appears the bulls are back for more this morning. The generally good earnings and lack of major bearish news seems to have them ready for another leg up this morning. Just remember that we are still extended. For example, the Put-Call Ratio is at it’s lowest mark in years. So, caution is warranted, but don’t fight the trend. Look for long opportunities near support but don’t chase. Keep taking profits on a regular basis, moving your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideratoin and watchlist: LW, GRMN, EYE, OSTK, TUP, VG, URI, MHK, MGM, MYL, MU. 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

Extension Caution or Impeachment Fear?

by

The bulls refused to back off on Friday.  Once again all three major indices gapped higher.  It was an indecisive day after the gap, but still, the SPY gained 0.37%, the DIA gained 0.12% and the QQQ gained 0.49%.  All three closes were at the all-time high.  The VXX remains historically low at 13.32 and the T2122 remains in overbought territory but did back off slightly to 82.99.

In economic news Friday, the Treasury Department had to bring back the 20year bond (last issued in 1986) to help cover the ballooning budget deficit costs.  This had the short-term effect of steepening the yield curve.  In addition, Bloomberg reported that Larry Kudlow reports that the Trump Administration will seek to scrap a 1977 law that prohibits US companies from bribing foreign governments.  This issue was reported to have been a point of contention between the President and his previous Secretary of State.

Among stocks, BA took a hit when a new software problem for the 737 Max was announced.  In addition, JBHT took a major hit on their earnings miss.

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There is no major economic news Tuesday following the holiday, but the President is in Davos and is telling other countries to follow his protectionist path of “Insert Country Here First” approach. That itself is a first, coming from the leader of the country that led the free-trade and global market movements. In non-economic news, the Presidential impeachment trial begins today. In the market, there will be a number of earnings reports.  Among those reporting before the open are CMA, HAL, HBI, NUE, PGR, and ROL.  After Tuesday’s close IBM, ITW, NFLX, UAL, and VFC will report.

Overnight, Asian markets were strongly red across the board.  In Europe, the same is true red across the board.  As of 7:45 am, U.S. futures are pointing to third or a percent gap lower.

The bulls have been relentless for a long time. The long weekend, amount of extension and upcoming impeachment trial may have changed the tune to one that is a little more cautious. However, the trend is still the trend (until it is broken), so don’t overreact. Look for long opportunities near support but don’t chase. Keep taking profits on a regular basis, moving your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideratoin and watchlist: ANGI, LOW, WYND, ENPH, LW, MU, M, TUP, SNDL, YNDX. 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

Bulls Bang-out more New Records!

by
New Records
Quietly Waiting in the wings.

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

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

On the Calendar

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

Action Plan

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

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

Trade Wisely,

Doug

Bulls Run, But 3-day Weekend Ahead

by

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

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

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

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

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

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

Ed

Sorry, but no Swing Trade Ideas on a Friday before a 3-day weekend. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Dow closes above 29,000

by

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

Good Morning! Do I smell Friday on the way?

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

On the Calendar

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

Action Plan

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

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

Trade Wisely,

Doug

Bulls Still in Control

by

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

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

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

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

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

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

$50.00 discount with code: Privilege

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

Ed

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

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Is the Bull Weakening?

by
Is the Bull Weakening

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

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

On the Calendar

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

Action Plan

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

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

Trade Wisely,

Doug

Earnings and Deal Day Part 1

by

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

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

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

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

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

$50.00 discount with code: Privilege

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

Ed

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

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

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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