House of Mouse

by
House of Mouse
10 Million – 1-Day!

The House of Mouse (DIS) surprised the market yesterday, reporting it had gained 10 million new subscribers on the first day of service, pushing the stock up more than 7% on the day and taking the Dow to record highs in the process.  FOMC Chairman Jerome Powell testified yesterday they will back off on rate cuts adopting a wait and see approach siting a strong economy led by solid jobs growth.  Mr. Powell speaks today with the House Budget Committee giving us a one day reprieve from the impeachment hearings.

Asian markets closed the day mixed and mostly lower on trade war tensions as they demand more tariff cuts.  European indexes are trading flat to mostly lower this morning in reaction to the apparent stalemate in US/China trade talks.  US Futures currently suggest a flat open but have improved after WMT reported an earnings beat this morning.  Jobless Claims and PPI numbers are out 8:30 AM Eastern as well as a big round of earnings reports, so stay focused on price action for clues.

On the Calendar

On the Thursday Earnings Calendar, we have just over 275 companies reporting quarterly results.  Notable reports include WMT, NVDA, AMAT, BAM, CGC, DDS, FTCH, HP, IGT, SCVL, SINA, VIAB, WB, WIX, & WSM.

Action Plan

The Dow powered to new record highs after DIS reported their new streaming service gained 10 million subscribers on its very first day of service.  However, this morning, futures are pointing slightly bearish with China not wanting to commit to a level of farm purchases and demanding removal of tariffs.  The Congressional impeachment hearing had a huge viewership but seemed to have very little if any impact on the market.   We have break in that regard today, but the hearings resume on Friday.

Mr. Powell testified yesterday that after 3-rate cuts, the FOMC is comfortable taking a wait and see approach with future rate cuts unlikely in the near future.  The chairman will continue his testimony before the House Budget Committee at 10 AM Eastern today.  We have a big day earnings with the retail giant WMT reporting before the bell and NVDA as the most notable after the bell.  CSCO disappointed the market yesterday afternoon and is indicated to open substantially lower this morning.

Trade Wisely,

Doug

DIS and Done Deal Not Done

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Markets gapped down a bit Wednesday on trade fears prompted by President Trump’s Tuesday speech and threats of new tariffs.  However, the bulls stepped in as usual and drove the indices quickly back to flat.  Fed Chair Powell made no waves with his Congressional testimony and there were no major twists in the Impeachment hearings.  So, markets treaded water most of the mid-day before the SPY, DIA and QQQ all closed at new all-time record highs again.

Among the news driving markets Wednesday was DIS reporting very good subscriber sales for their new streaming service and NKE saying it will no longer sell directly to AMZN.  On the trade front, China reported that it will not be buying $50bil in US grain (as President Trump has repeatedly touted) and don’t want to set a specific amount on what they will buy.  Moreover, they also repeated that tariff reductions are needed for the so-called “Phase One” of a deal. This may have just been another tit-for-tat reply to the President’s tariff threats from Tuesday. Regardless, this news stream is likely to continue as a Deal our President says was done appears to be anything but done.

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At the end of the day, the EU reported that it “expected” President Trump to postpone tariffs on European Autos (as was done in May).  However, there was no word of another postponement out of the White House.  (Wed. was the deadline to postpone them.)  Then after hours, CSCO and NTWP both reported beats.

Thursday economic news includes PPI and Weekly Jobless Claims (both at 8:30 am).  Fed Chair Powell also testifies before Congress again at 10 am, but Impeachment Hearings will likely grab the spotlight.  The only major earnings Thursday will be WMT and VIAB before the bell and AMAT and NVDA after the close.  (WMT already reported a beat this morning.)

Overnight, Asian markets were all in the red.  In Europe, markets are mixed with the FTSE, DAX, and most others in the red, but the CAC and a couple others in the green.  As of 7:30 am, U.S. futures are all just on the red side of flat.

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The Impeachment hearings are likely to drive markets Thursday.  (Fed Chair Powell is very unlikely to say anything to the Senate that he did not say to Congress on Wed.)  However, more twists on the China Trade War front may also occur.  Regardless of what shocks that may come, remember that the bulls have been extremely resilient in recent months.  So, don’t over-react to temporary whiplash.  Try to follow the trend.  Be cautious and continue to take profits and move stops. 

Ed

Swing-Trade Trade ideas for your consideration. Long – KHC, ALLE, ARNC, IFF, CVX, CDW, K, MAS, KLAC, SWKS, PNR, SYY, FBHS, AMP, UTX. Short – TGT, STZ, CINF, JCI, F, MOS. 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.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 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.

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

All Eyes on Capitol Hill

by
Capitol Hill

We could have an interesting market day as the events on Capitol Hill unfold.  We have the Jerome Powell testifying in Congress as the House begins the Presidential impeachment hearings.  We can expect a belly full of political drama and possibly news-driven price action to keep us on our toes.  If that’s not enough for the market to digest trade war uncertainty has once again raised its ugly head bring out the bears this morning ahead of the 8:30 AM CPI report. 

Asian markets closed in the red across the board as the civil unrest in Hong Kong, and trade uncertainty woke up the bears.  European markets are also decidedly bearish this morning, seeing nothing but red across their major indexes.  US Futures point a gap down open this morning ahead of earnings reports, CPI, and full-day of Capitol Hill drama.  Stay focused on price action and prepare for the possibility of new driven reversals.

On the Calendar

On the Earnings Calendar, we have more than 160 companies reporting results.  Notable reports include CAE, CSCO, CPA, ENR, FVRR, LK, NTAP, QIWI, SSYS, TNK, TSEM, and VIPS.

Action Plan

Today will be a very busy day on Capitol hill and could spill over into market price action.  Chairman Powell will testify before the Joint Economic Committee just a day after the President suggests the US should have negative rates like other countries have.  That could set the stage for some interesting conversation and questioning by the committee.  Meanwhile, in the house chamber they Nancy Pelosi will begin the presidential impeachment hearings that are not only likely to move the market but also provide Saturday Night Live plenty of comedic inspiration.

Technically speaking, the bulls continue to demonstrate their resiliency in spite of all the political lunacy and uncertainty it faces.  This morning it would appear that the bears are trying to reengage as trade war uncertainty once again floats to the surface affecting prices in Asia and Europe during the night.  After the morning gap down I would not be surprised to see the price action become light and choppy as we wait for the news-driven events of the day come to light.  Remain focused on price action and flexible as market direction could quickly shift in reaction.

Trade Wisely,

Doug

New Highs, Hesitant Candles

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Markets gapped slightly (+0.10%) and then rallied early, maxing out about half a percent above the Monday close.  However, the bulls faltered at that level and traded back lower leaving upper wicks.  Nonetheless, the SPY, DIA, and QQQ all managed to close the day Tuesday at new all-time high closes…but on candles that were very indecisive.

Among the news drivers Tuesday was a mid-day speech by the President.  Market Analysts had hoped it would be a positive speech on trade and China negotiation success.  Others had expected an announcement of another postponement of European Auto tariffs.  (Wed. is the deadline for another postponement, and this being an economic and trade speech the announcement was expected.) 

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However, instead, President Trump took the opportunity to say the Fed has been holding the US economy back.  He also again said China had been cheating the US for decades (and that the prior US Presidents must not have understood trade).  And while he said a phase-one deal with China was now “close,” he went on to threaten substantial increases in tariffs if no deal is reached.  (Rather than being “a done deal” as he has said in the past, this posturing clearly indicates negotiations are still underway.)  Finally, he also failed to mention the postponing of the tariffs on European Automobiles.  This was decidedly NOT the kind of speech markets had hoped to hear.

Beyond the speech, the President also threatened the World Trade Organization on Tuesday.  (Bloomberg reports say he is threatening to block the WTO budget approval, which requires unanimous consent by member states, unless the WTO falls in-line with his views on trade.)   So, all in all, this was a bad day for anyone with any concerns about International Trade.

In addition to the US Market pullback, overnight Asian markets were all in the red.  In Europe, markets are also all strongly down at this point.  As of 7:30 am, U.S. futures were on track for a 0.3% to 0.4% percent gap lower across the board.

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Wednesday’s economic news includes CPI (8:30 am) and Fed Chair Powell testifies before Congress at 11 am.  The only major earnings events will take place after the close as CSCO, NTAP, and TCOM all report.

Fed Chairman Powell’s testimony is very likely to be the large market-driver today.  However, Impeachment testimony (and off-setting events designed to distract) will also fill the news.  Regardless of any shock markets may get, remember the bulls have been extremely resilient in recent months.  So, don’t over-react to temporary whiplash.  Try to follow the trend.  Be cautious and continue to take profits and move stops. 

Ed

Swing-Trade Trade ideas for your consideration. Long – CARS, KHC, ARNC, CDW, MAS, K, DOV, PNR, AMD, FBHS, VLO, AMP, UTX, MS, KEY. Short – ETR, SO, CINF, STZ, CTAS, DG, TGT, CPB. 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.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 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.

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

BA Inspires the Bulls

by
Bulls

News from BA that the 737 may be back in the sky by January inspired the bulls to shake off the trade fears that began the day to close the DIA at a new record high close.  Relentlessly the bulls have pushed past bad news to move up and if that bad news eventually finds resolution the surges even higher.  This morning there is speculation the President will delay European tariffs by 6-months on Wednesday, lifting futures off of overnight lows.  Expect news-driven price action to continue with he Powell speech on Wednesday and the Impeachment hearing also scheduled to begin.

Asian markets recovered from early lows closing in the green despite trade concerns and Hong Kong unrest.  European are also green across the board this morning on hope of an auto tariff delay.  US Futures continue to fluctuate this morning with more than 300 earnings reports to digest.  That said, I expect a modest gap up at the open with the bulls still in control.

On the Calendar

On the Earnings Calendar, we have over 300 companies reporting today.  Notable reports include DHI, TWOU, ADT, AAP, ACM, CBS, BREW, DF, OSTK, ROK, SWKS, TLRY, TSN, and YY.

Action Plan

The bullishness of this market has been truly remarkable.  As issues continue to swirl around trade and Hong Kong, the bulls relentlessly surge forward.  Although yesterday’s rally was not broad-based, a new record high closing high in the DIA was inked mostly on the back of BA news.  With an upcoming speech by the President on Wednesday with speculation that he is going to dealy European tariffs for 6-months markets this morning a once again surging higher.  Jerome Powell is also scheduled to speak on Wednesday.

All the while, the Presidential impeachment hearings will begin, and we can count on a barge of political rhetoric and spin to captivate the public and potentially move the market.  News-driven price action can be challenging to trade, but it could also turn out to be a non-event if the bulls remain as relentless as they have been over the last month of trading.  No matter what happens, as traders, it’s our job to focus on the price action and follow the clues they present without bias or prediction.

Trade Wisely,

Doug

Resilient Bulls

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The indices gapped down about half a percent on Monday (on Hong Kong unrest, the contraction of GDP in the UK and a lack of positive spin to offset Friday’s bad news on the Trade War front).  However, the bulls continue to be resilient and they rebounded to cut the losses by more than half, leaving white candles across all major markets.

Among the news that helped were reports that BA will begin deliveries of its 737Max again in December and that KKR has formally asked WBA about purchasing it (in an unknown type of deal).  On this news, the DIA even managed to put in a new all-time high close (by a few cents).  This leaves us in a tight consolidation in the latest stair-step of the bull run.

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There is no US economic news on tap again Tuesday, but there are three Fed speakers during the day.  The only earnings of note are DXC.

However, President Trump does make a mid-day speech today on Trade and International Commerce , which will likely touch on his China Trade War. It was also reported after-hours Monday by Politico that he may announce another six-month postponement of tariffs on European Autos. (Those tariffs were already postponed once in May.)

Favorite Charting Software

Overnight, Asian markets were mixed.  In Europe, markets are also mixed, but mostly green at this point.  As of 7:30 am, U.S. futures were pointing to a flat open, barely on the green side of even.

With the vast majority of earnings behind us, fear of global recession, twists in the China Trade War and (Impeachment-related or meant to distract from the Impeachment) political news are likely to drive news cycles and markets again this week.  Remember to be cautious and continue to take profits and move stops.

Ed

Swing-Trade Trade ideas for your consideration. Long – CARS, BHC, ARNC, SNA, MAS, DOV, PCAR, AMD, VLO, DD, FBHS, AMP, UTX, MS. Short – EFX, ETR, SO, KO, ATVI, SBUX, STZ. 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.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 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.

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

Bears Claw Back Gains

by
Bears Claw Back Gains

Closing at new record highs on Friday, the bears have decided they have something to say this morning trying to claw back a good portion of the move.  The good news is with the banks closed in honor of Veterans Day, the bears may find it difficult to find enough energy to create much technical damage.  Although it’s always disappointing to see a weekend reverse a strong close of the previous week, the volume is likely to be light and price action choppy due to the holiday.

Asian markets closed the day seeing only red with trade tensions growing over the weekend, and Hong Kong protests flare up once again.  European markets are also bearish this morning as they watch trade developments, and the US Futures are following the same path the Dow pointing to a triple point gap down this morning. 

On the Calendar

There are no events on the Economic Calendar with the banks closed due to Veterans Day.

We have over 140 companies reporting earnings results today.  Notable reports include FOLD, FNV, TME, and TERP.

Action Plan

Having taken a few days off, I feel a bit out of the sorts this morning trying to catch up, so this blog post will well be short.  Although the DIA, SPY, and QQQ closed at a new record high on Friday it was interesting to note that T2122 slightly declined.   That often suggests the rally was not broad-based with just key stocks rising to finish the week strong.

This morning futures are decidedly bearish looking to take back a sizeable portion of Friday’s rally at the open.  However, with the banks closed for Veterans Day, this pullback may not create any serious technical damage.  In fact, after the morning rush expect price action to become light and choppy.

Trade Wisely,

Doug