With heavy corporate buybacks pushing U.S. markets, Asia-Pacific markets respond to that bullish energy and experienced a positive start to the week. China’s central bank preserved the one- and five-year loan prime rates at 3.45% and 3.95%, respectively. Hong Kong’s Hang Seng index saw a modest increase of 0.18%. Chinese CSI300 index advanced 0.35%, closing at 3,690.96.
European markets experienced a modest uptick on Monday. The Stoxx 600 index was up 0.17% at 11 a.m. London time. Sector-wise, mining stocks outperformed, registering a 0.8% increase, which could be attributed to rising commodity prices or favorable industry forecasts. On the other hand, banking stocks saw a minor decline of 0.2%, possibly reflecting market adjustments or sector-specific news.
U.S. stock futures saw a slight increase on Monday, after the Dow Jones Industrial Average surpassed the 40,000 milestone for the first time. The Dow futures up 11 points. Meanwhile, S&P 500 futures climbed by 0.1%, and the tech-heavy Nasdaq 100 futures advanced by 0.2%.
Economic Calendar
Earnings Calendar
Notable reports for Tuesday before the bell include GLBE, LI, & WIX. After the bell include KEYS, NDSN, PANW, & ZM.
News & Technicals’
The untimely demise of Iranian President Ebrahim Raisi in a helicopter crash has plunged Iran into a period of uncertainty. The nation, grappling with a severe economic downturn, widespread public dissatisfaction, and escalating geopolitical strains, now faces a pivotal moment. As the world watches, questions arise about the future of this influential Middle Eastern nation, which boasts a population of nearly 90 million and wields considerable clout through its support of various regional proxy factions. Analysts are predicting a likely continuation of the current political trajectory, yet they also highlight the potential for the IRGC, Iran’s formidable revolutionary guard, to tighten its grip on the nation’s governance. This event could mark a significant shift in Iran’s political landscape, with the IRGC poised to steer the country through its complex and challenging circumstances.
The United States’ national debt has soared to a staggering $34.5 trillion, marking an increase of approximately $11 trillion since March 2020. This significant rise has sparked widespread discussion among policymakers and financial experts, with a notable Wall Street firm raising concerns about the potential impact of debt-related expenses on the ongoing stock market rally. The Congressional Budget Office (CBO) projects that the ratio of public debt to GDP will reach unprecedented levels, surpassing any previously recorded in the country’s history. Echoing the urgency of the situation, Federal Reserve Chair Jerome Powell has emphasized the need for prompt action by elected officials to address the burgeoning debt, underscoring the critical nature of the fiscal challenge ahead.
The recent escalations along the Russia-Ukraine border have intensified the conflict, with both nations engaging in military strikes against each other’s border regions. On Sunday, the northeastern Ukrainian region of Kharkiv and the adjacent Russian region of Belgorod experienced significant attacks. In the aftermath, Kharkiv declared Monday a day of mourning to honor the victims of the shelling, which targeted a frequented leisure area and several villages. The assault resulted in the tragic loss of at least 11 civilian lives and left numerous others injured. This surge in violence underscores the deepening humanitarian crisis and the urgent need for de-escalation in the region.
Microsoft’s Build developer conference, set to commence this Tuesday in Seattle, is poised to be a pivotal event for the tech community. The conference is anticipated to unveil Microsoft’s vision for integrating AI capabilities into the Windows operating system, potentially transforming the user experience of personal computing. Furthermore, there is speculation that Qualcomm’s advanced chips will be at the heart of several upcoming Windows-powered devices. This collaboration could herald a new era of computing, combining Qualcomm’s prowess in chip design with Microsoft’s software expertise to create powerful, AI-enhanced PCs for the next generation of technology users.
The United States’ national debt has soared to a staggering $34.5 trillion, marking an increase of approximately $11 trillion since March 2020. This significant rise has sparked widespread discussion among policymakers and financial experts, with a notable Wall Street firm raising concerns about the potential impact of debt-related expenses on the ongoing stock market rally. The Congressional Budget Office (CBO) projects that the ratio of public debt to GDP will reach unprecedented levels, surpassing any previously recorded in the country’s history. Echoing the urgency of the situation, Federal Reserve Chair Jerome Powell has emphasized the need for prompt action by elected officials to address the burgeoning debt, underscoring the critical nature of the fiscal challenge ahead.
Though the Friday market trade was lethargic it remains bullish due to the massive corporate buybacks exceeding all other buy volume. With a light day on the both the earnings and economic calendars another choppy day is likely unless the Fed speakers add to the their hawkish stance.
Markets opened flat on Thursday. SPY opened 0.02% higher, DIA opened up 0.11%, and QQQ opened down 0.02%. From there, all three major index ETFs rallied steadily, reaching the highs of the day at 11:10 a.m. At that point, all three sold off more slowly, recrossing the open and reaching a low at 2:20 p.m. Then SPY and QQQ bounced modestly for 30 minutes before selling off again. Meanwhile, DIA bounced with more strength but then also sold off harder. In all three major index ETFs, the biggest candle of the day was a sharp drop the last 5 minutes. This action gave us black, inverted Hammer type candles (not Shooting Stars because there was no gap higher) in all three of those ETFs. This gave us new all-time highs, but not new all-time high closes in the SPY, DIA, and QQQ. This happened on less than average volume in all three.
On the day, eight of the 10 sectors were in the red with Basic Materials (-0.59%) and Industrials (-0.57%) out front leading the majority of sectors lower. Meanwhile, the Consumer Defensive (+1.12%) sector was the biggest mover and held up far better than any other sector. At the same time, SPY lost 0.21%, DIA lost 0.02%, and QQQ lost 0.20%. VXX was flat to close at 11.51 and T2122 dropped but remains well into its overbought territory to close at 88.64. At the same time, 10-year bond yields rose to 4.379% and Oil (WTI) gained 0.84% to close at $79.29 per barrel. So, Thursday was a mostly “dead money” day with a modest morning move higher followed the a slightly stronger selloff in the afternoon.
The major economic news scheduled for Thursday included April Building Permits, which came in lower than expected at 1.440 million (compared to a forecast of 1.480 million and the March 1.485 million reading). On the start side, April Housing Starts were up but lower than predicted at 1.360 million (versus the forecast of 1.420 million but up from March’s 1.287 million value). At the same time, the April Import Price Index was up sharply to +0.9% (compared to a +0.2% forecast but up less from the March +0.6% reading). The other side of trade, the April Export Price Index, was also higher than anticipated at +0.5% (versus a +0.4% forecast and well up from March’s +0.1% value). On the Unemployment front, Weekly Initial Jobless Claims were a bit higher than predicted at 222k (compared to a 219k forecast but also down from last week’s 232k reading). As far as ongoing claims are concerned, Weekly Continuing Jobless Claims were higher than expected at 1,794k (versus a 1,780k forecast and 1,781k number the prior week). Meanwhile, the Philly Fed Mfg. Index came in lower than anticipated at 4.5 (compared to a +7.7 forecast and down significantly from April’s +15.5 number). Later, April Industrial Production (month-on-month) was lower than predicted at 0.0% (versus a +0.1% forecast and March reading). After the close, the Fed Balance Sheet was down $49 billion from $7.353 trillion to $7.304 trillion.
In Fed speak news, on Thursday, NY Fed President Williams acknowledged and said that he welcomes the CPI data. He also discounted the idea of any rate hike. However, he also said wants to see more before any cut in rates. Williams said, “I don’t see any need to tighten monetary policy today … Monetary policy is restrictive and is in a good place.” Later, Cleveland Fed President Mester echoed other FOMC comments saying, “I now believe that it will take longer to reach our 2% goal than I previously thought.” She added, “We will need to accumulate further data over the coming months to have a clearer picture of the inflation outlook (before cutting rates).” Later, Atlanta Fed President Bostic said he sees the ongoing disinflation leading to a potential rate cut. However, he said nothing was locked in, there was no timetable, and many things could happen. Bostic said, “one data point is not a trend, and said there are a number of different scenarios that could yet play out on the inflation front.”
After the close, AMAT, CPRT, DXC, GLOB and TTWO all reported beats on both the revenue and earnings lines. Meanwhile, FLO missed on both the top and bottom lines.
In stock news, on Thursday, SPR (a primary supplier to BA) announced it is laying off 450 employees in the next few weeks. (This is about 3.6% of the company’s workforce as of year-end 2023.) Later, after the close, RDDT announced a partnership deal with OpenAI. The deal will allow OpenAI to train its AI models (like ChatGPT) on content from the Reddit platform.
In stock legal and governmental news, on Thursday, the US Dept. of Justice took the next step in easing restrictions on marijuana by proposing the rule that would reclassify that drug as a “class III” (as opposed to its current “class I” category). The statement said that the FDA had found credible evidence marijuana can be beneficially medically uses and had no safety concerns that should prohibit medical use. However, class I drugs (like heroin and LSD), pose major safety risks and have no proven medical uses. Marijuana stocks soared on the news, even though it has been expected since April. The announcement (rule proposal) begins 60 days of public comment. Later, the US Supreme Court ruled 7-2 that the CFPB is not funded unconstitutionally. This kills one attack on federal agencies by an extreme conservative group, famous for challenging agencies, federal regulations, and private diversity programs. (This is a very significant ruling because the Fed, FDIC, Social Security, and Medicare/Medicaid could have all potentially been unfunded had the decision gone the other way.) At the close, the FDA approved AMGN’s treatment for the most-deadly form of lung cancer.
Overnight, Asian markets were mixed but leaned toward the green side again as eight of the 12 exchanges in the region were positive. Shenzhen (+1.10%) and Shanghai (+1.01%) were by far the biggest gainers while South Korea (-1.03%) was by far the biggest loser on the day. Meanwhile, in Europe, markets were mostly in the red. The CAC (-0.34%), DAX (-0.38%), and FTSE (-0.37%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a second-straight flat open. The DIA implies a dead flat unchanged open, the SPY is implying a +0.01% open, and the QQQ implies a +0.08% open at this hour. At the same time, 10-year bond yields are up a bit to 4.398% and Oil (WTI) is on the red side of flat at $79.09 per barrel in early trading.
The major economic news scheduled for Friday is limited to the April US Leading Economic Indicators Index (10 a.m.). We also hear from Fed member Waller (10:15 a.m.) and Daly (12:15 p.m.). Major earnings reports scheduled for before the open is limited to HTHT. There are no reports scheduled after the close.
So far this morning, HTHT beat on revenue while missing on earnings.
In miscellaneous news, the SEC (in a hat-tip to the efficiency of government) voted unanimously to update data breach rules for brokers, investment advisors, and other investment companies. In vote, approved rule changes first proposed under the Clinton administration in 2000. The new rules will require the regulated firms to have and maintain data breach programs to detect, respond to, and recover from cybercrime that accesses their customer’s personal information. The rule also creates mechanism for companies to share attack data. However, rather than be hasty, regulated firms now have between 18 and 24 months to come into compliance. (So, it only took 27 years to get this done…unless the 2025 administration reverses the decision.)
In late-breaking news, the UK Competition and Markets Authority announced the MSFT and Mistral AI partnership “does not qualify” for investigation under British antitrust law. This avoids a widely-speculated hurdle for the deal. Elsewhere, after antitrust regulators nixed the acquisition of Figma (cloud-based design software) by ADBE, Figma has told employees they can sell their Figma shares at a company valuation of $12.5 billion. (That is up 25% from the valuation Figma used in fundraising in 2021.) Finally, online retailer W announced it will open a 150k-square-foot brick-and-mortar store in the Chicago area.
With that background, it looks as if the market is continuing Thursday’s indecisive action, at least early. All three major index ETFs opened the premarket near flat and have strayed little since then in the early session. It is worth noting that all three are printing a white-body candle in the early session, but none of those bodies are significant enough to show any real strength. With that said, all three remains very near the all-time highs from early Thursday and are obviously well above their T-line (8ema). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish. And the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, as mentioned, the SPY, DIA, and QQQ are all well above their T-lines, but only QQQ might be considered too extended. The T2122 indicator pulled back a bit Thursday but remains well into the overbought area. So, more pause or pullback are probably needed, if for nothing else than just to take profits and gather a new group of Bulls (FOMO money?) for a next wave higher (if that is the direction). With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, seven of the 10 are in the green at this point this morning with only META (-0.41%) and NVDA (-0.30%), which is the biggest dog of all, really dragging on the QQQ. Keep in mind that its Friday, pay day, and time to prepare your account for the weekend news cycle.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Wednesday was the Bulls’ Day from open with markets popping and following through on slightly better than expected CPI data. (It was actually much better than was expected after Tuesday’s worse than expected PPI data.) SPY gapped up 0.49%, DIA gapped up 0.42%, and QQQ gapped up 0.57%. From there, all three major index ETFs followed through with a steady rally that lasted all day. (DIA was a shallower rally than the other two, but steadily gained all the same.) This action gave us gap-up, large, white-bodied candles in all three. It is worth noting that all three printed new all-time highs and also closed at new all-time high closes. Obviously, this means all three remain well above their T-lines (8emas). This happened on less-than-average volume in the SPY, DIA, and QQQ.
On the day, eight of the 10 sectors were in the green with Technology (+1.99%) way out in front leading the gainers higher. Meanwhile Energy (-0.26%) was the laggard and only appreciable losing sector. At the same time, SPY gained 1.23%, DIA gained 0.94%, and QQQ gained 1.56%. VXX dropped 3.92% to close at 11.52 and T2122 spiked up into the top end of its overbought territory to close at 95.44. At the same time, 10-year bond yields fell sharply to 4.342% and Oil (WTI) gained another 1.1% to close at $78.88 per barrel. So, Wednesday was a big win for the Bulls surging higher from the premarket release of CPI data and continuing strong all day. (There were no even appreciable breaks in the all-day rally). With that said, having achieved the new all-time highs, markets are extended now.
The major economic news scheduled for Wednesday included April Core CPI (month-on-month), which came in exactly as expected at +0.3% (compared to a +0.3% forecast and down from March’s +0.4% reading). On an annual basis, April Core CPI was also down exactly as expected at +3.6% (versus a +3.6% forecast and March’s +3.8% value). On the headline side, April CPI (month-on-month) was better than was expected at +0.3% (compared to a +0.4% forecast and +0.4% March reading). On the annualized basis, April CPI was in line with predictions at +3.4% (versus the +3.4% forecast and down from March’s +3.5% value). At the same time, April Core Retail Sales were just as anticipated, down at +0.2% (compared to a +0.2% forecast and far down from March’s +0.9% reading). On the headline side, April Retail Sales were flat at +0.0% (well down from the +0.4% forecast and March’s +0.6% value). Meanwhile, the NY Empire State Mfg. came in lower than expected at -15.60 (versus the -9.90 forecast and even from the April -14.30 reading). Later, March Business Inventories were better (lower) than predicted at -0.1% (compared to a 0.0% forecast and well below the February +0.3% value). At the same time, March Retail Inventories were also better (lower) than expected at -0.2% (versus the -0.1% forecast and February reading). On the oil front, EIA Weekly Crude Oil Inventories showed a much larger than expected drawdown of 2.508 million barrels (compared to a 0.400-million-barrel drawdown forecast and even from the previous week’s 1.362-million-barrel drawdown).
In Fed speak news, on Wednesday, Minneapolis Fed President Kashkari added his voice to the “higher for longer” FOMC chorus. Kashkari said, “The biggest uncertainty in my mind is how much downward pressure is monetary policy putting on the economy…that’s an unknown.” “That (uncertainty) tells me we probably need to sit here for a while longer, until we figure out where underlying inflation is headed.” He continued, “It seems like there is more resilience in the economy than I had expected.”
After the close Wednesday, BKKT, CSCO, and CPA all reported beats on both the revenue and earnings lines.
In stock news, on Wednesday, NFLX announced that its ad-supported subscription tier had reached 40 million users. (That is up from 5 million one year ago.) NFLX also said that ad-tier subscribers account for more than 40% of all new sign-ups. (NFLX has 270 million overall subscribers.) Elsewhere, it was made public that BRKB has been buying CB stock “secretly” over the last two quarters and now holds a $6.7 billion stake with apparent intentions of buying more of the insurer.
Overnight, Asian markets were green across the board. New Zealand (+1.75%), Australia (+1.65%), Hong Kong (+1.59%), and Japan (+1.39%) led the region higher. However, in Europe, markets are much more mixed with only six of 15 bourses in the green at midday. The CAC (-0.39%), DAX (-0.17%), and FTSE (-0.23%) are leading the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures are now pointing toward an open just on the green side of flat. The DIA implies a +0.05% open, the SPY is implying a +0.07% open, and the QQQ implies a +0.15% open at this hour. At the same time, 10-year bond yields are down to 4.34% and Oil (WTI) is just on the red side of flat $78.58 per barrel in early trading.
The major economic news scheduled for Thursday includes April Building Permits, April Housing Starts, April Import Price Index, April Export Price Index, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, and Philly Fed Mfg. Index (all at 8:30 a.m.), April Industrial Production, (9:15 a.m.), and Fed Balance Sheet (4:30 p.m.). We also hear from Fed members Vice Chair Barr (10 a.m.), Harker (10:30 a.m.), Mester (11:30 a.m.), and Bostic (3:50 a.m.). Major earnings reports scheduled for before the open include BIDU, DE, IQ, JD, NICE, UA, UAA, and WMT. Then, after the close, AMAT, CPRT, DXC, FLO, GLOB, and TTWO report.
In economic news later this week, on Friday, April US Leading Economic Indicators Index is reported and we hear from Fed member Waller.
In terms of earnings reports later this week, on Friday, HTHT reports.
So far this morning, WMS, BIDU, DE, DDS, JD, NICE, and WMT all reported beats on both the revenue and earnings lines. (WMT is of note, specifically reporting gains in online sales and noting an increase of higher-income shoppers.)
In late-breaking news, the European Commission announced META is now under investigation over whether or not the Facebook and Instagram platforms are built to cause addiction related to child safety risks. (This action specifically noted the “rabbit-hole effect” built into content feeds and algorithms. This being the case, it is hard to believe that GOOGL is not next in line related to YouTube with TikTok and the former Twitter to follow.)
With that background, it looks as if the market wants to follow-through on Wednesday’s blowout rally, but is just too uncertain. All three major index ETFs opened the premarket higher. However, all three have also put in flat, indecisive candles since the start of the early session. (Perhaps traders are waiting on Jobless Claims?) As mentioned above, all three are at new all-time highs and well above their T-line (8ema). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish. And the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, the SPY, DIA, and QQQ are all now extended above their T-lines. The T2122 indicator has also pulled back up well into the overbought area. So, a pause or pullback (at the least) are due, just to take profits and gather a new group of Bulls (FOMO money?) for a next wave higher. With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, nine of the 10 are in the green at this point this morning with only META (-0.51%) falling on its EU investigation news. Remember, there will be 4-5 Fed members speaking today. So, while they tend to follow the party line, any of them could cause a knee-jerk in the market.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Ahead fo the U.S. consumer price report Asia-Pacific stock markets showed varied performances, mirroring the overnight advances on Wall Street where the Nasdaq Composite rallied, undeterred by hot inflation figures. Trading floors in South Korea and Hong Kong remained closed in observance of a holiday. Meanwhile, investors digested the details of Australia’s latest annual budget, unveiled late Tuesday. The People’s Bank of China maintained its one-year medium-term lending rate at 2.5%. The mainland’s benchmark CSI 300 index experienced a slight downturn, dropping 0.85% to end the session at 3,626.06.
European stock markets experienced a modest uptick on Wednesday, with investors’ attention turning to the forthcoming inflation data from the U.S. By mid-morning in London, the Stoxx 600, which spans across Europe, had climbed by 0.3%, with the majority of sectors showing positive momentum. The utilities sector saw a 1% gain, contrasting with a 0.8% decline in household goods.
U.S. futures trade with minimal movement as investors anticipate the release of the consumer price index for April. The Dow Jones Industrial Average futures saw a modest increase of 14 points, while the S&P 500 and Nasdaq-100 futures were nearly unchanged. The much-awaited CPI data is expected at 8:30 a.m. Eastern Time. According to forecasts by Dow Jones analysts, the index is likely to reflect a 0.4% rise for the month and a 0.3% uptick when excluding food and energy costs. For the annual headline CPI, a 3.4% increase is projected, slightly down from the 3.5% increase observed in March.
Economic Calendar
Earnings Calendar
Notable reports for Tuesday before the bell include ARCO, DOLE, DT, MNDY, & RSKD. After the bell include CSCO, CPA, GRAB, MAXN, & ZTO.
News & Technicals’
Jamie Dimon, the CEO of JPMorgan Chase, emphasized the importance of the United States addressing its fiscal deficit promptly in a statement on Wednesday. He highlighted the urgency following a series of swift interest rate increases, tax reductions, and substantial stimulus measures implemented to bolster the world’s predominant economy amidst the COVID-19 crisis. “It’s bound to become an issue eventually, so why delay dealing with it?” Dimon questioned during a Sky News interview.
Federal prosecutors have stated that Boeing did not adhere to a 2021 agreement which shielded the company from criminal charges related to two deadly 737 Max accidents. The aerospace giant has been given a deadline of June 13 to present its response to the U.S. Department of Justice. According to the DOJ, Boeing breached the terms of the settlement by not establishing and implementing a robust compliance and ethics framework aimed at identifying and preventing breaches of U.S. fraud statutes.
On Tuesday, Federal Reserve Chairman Jerome Powell emphasized that the decline in inflation is progressing more sluggishly than anticipated, suggesting that high interest rates may persist for a longer duration. Speaking in Amsterdam, Powell remarked, “The path to lower inflation was never anticipated to be without challenges. However, the recent inflation figures have surpassed expectations.” He further indicated that the current situation requires perseverance and a commitment to allowing the stringent monetary policies to take effect. Compounding these concerns, the latest data revealed an unexpected uptick in the producer price index, which climbed by 0.5% in April.
For April, the CPI is anticipated to register a monthly increase of 0.4%, mirroring the rise seen in March, yet the yearly inflation rate is predicted to dip slightly to 3.4%. Excluding volatile items like food and energy, the core CPI is expected to rise by 0.3%, a notch below the 0.4% increase of the previous month, with the annual core rate forecasted to decrease to 3.6% from 3.8%. Analysts on Wall Street will scrutinize the details of Wednesday’s inflation report, seeking indicators of the potential duration of the current high inflation trend. A particular area of interest will be the housing sector’s influence on inflation.
Traders will have a lot of economic data to digest including consumer price report. Plan for considerable price volitility and watch for posible big point whipsaws. With record highs so close a gap though to blue skys is possoble but be cautious of chaising this already extended market condiion for the classsic pop and drop.
Markets gapped up modestly on Monday. The SPY opened 0.33% higher, DIA gapped up 0.33%, and QQQ gapped up 0.44%. From that point, the two large-cap index ETFs slowly faded the gap recrossing it by about 11:30 a.m. Meanwhile, QQQ immediately recrossed the gap (by 9:50 a.m.). After the recross, all three ground sideways in a tight range until 1 pm. At that point, we got a 15-minute selloff before the sideways grind in a tight range resumed. This action gave us black body candles in all three major index ETFs. The QQQ could be called a Black Hanging Man while the DIA printed a Bearish Engulfing candle. All three remained well above their T-line (8ema). This all happened on below-average volume in all three (far-below-average in the SPY and QQQ).
On the day, five of the 10 sectors were in the green with Consumer Cyclical (+0.65%) leading the gainers higher while Industrials (-0.39%) was the laggard sector. At the same time, SPY gained 0.01%, DIA fell 0.18%, and QQQ gained 0.23%. VXX gained 1.08% to close at 12.19 and T2122 fell to just outside the lower edge of its overbought territory to close at 75.00. At the same time, 10-year bond yields fell slightly to 4.487% and Oil (WTI) gained another 1.19% to close at $79.19 per barrel. So, Monday was a gap-up, trade down, and then just grind sideways ahead of Tuesday’s PPI data. One notable thing that happened is that “Meme stocks” trading came back in vogue. GME gapped up 52%, was up as much as 120% at one point, traded in a 55% range, and it closed up 74 percent. Following suit, AMC gapped up 20%, traded in an 86% range, and ended the day up 78.35%.
The major economic news scheduled for Monday was limited to the NY Fed’s 1-Year Consumer Inflation Expectations, which came in at 3.30% (compared to a April’s 3.00% reading).
After the close, NATL reported beats on both the revenue and earnings lines. At the same time, TLNE missed on revenue while beating on earnings. On the other side, AHR beat on revenue while missing on earnings. However, STNE missed on both the top and bottom lines.
In stock news, on Monday, as expected OpenAI released a new AI model called GPT-4o. The new model reportedly is capable of realistic voice conversation and able to interact across text and vision. (This comes a day ahead of GOOGL’s developer Conf. where that company is expected to announce its own new AI tools.) Giving GPT-4o a search engine-like capability to compete directly with Google Search is the next step according to Reuters reports. Later, GM announced its Cruise autonomous vehicles have resumed testing on public roads with its robotaxis in AZ. (GM had suspended all operations in October after one of its robotaxis dragged a pedestrian, who was already knocked down by a human-driven car, in San Francisco.)
In stock legal and governmental news, on Monday, AAL, DAL, UAL, JBLU, HA, ALK and an airline industry group files suit against the US Dept. of Transportation alleging the agency’s new rule requiring airlines to disclose their fees in addition to just airfares is beyond the department’s authority. At the same time, the 5th-Circuit Court of Appeals dismissed a Republican-led State lawsuit that had sought to block the SEC’s requiring investment funds to categorize and disclose their proxy votes on issues, including ESG matters. (The three-judge panel concluded that none of the states had any standing to challenge the agency’s rules over listed company reporting.) Later, META was sued by RFK Jr. and his superPAC, claiming Facebook was guilty of election interference for blocking a political ad. (META claims the blocking, which lasted less than two days was a result of a mistake and was quickly restored as soon as the issue was found.)
Overnight, Asian markets leaned toward the green side with only five of the region’s 12 exchanges in the red. Taiwan (+0.61%), India (+0.51%), and Japan (+0.46%) led the region higher on the day. Meanwhile, in Europe, the bourses are more evenly split with seven green and eight in the red at midday on very modest moves. The CAC (-0.06%), DAX (-0.18%), and FTSE (+0.06%) are typical of a region likely waiting on US data to drop. In the US, as of 7:30 a.m., Futures are just on the green side of flat. The DIA implies a +0.09% open, the SPY is implying a +0.05% open, and the QQQ implies a +0.02% open at this hour. At the same time, 10-year bond yields are just on the red side of flat at 4.479% and Oil (WTI) is likewise down slightly at $78.99 per barrel in early trading.
The major economic news scheduled for Tuesday includes April Core PPI and April PPI (both at 8:30 a.m.), and API Weekly Crude Stocks (4:30 p.m.). We hear from Fed Governor Cook (9:10 a.m.) and Fed Chair Powell (10 a.m.). Major earnings reports scheduled for before the open include BABA, BKKT, CGAU, HD, IGT, MNSO, ONON, SE, SONY, and TCEHY. Then, after the close, NXT and NU report.
In economic news later this week, on Wednesday, April Core CPI, April CPI, April Core Retail Sales, April Retail Sales, NY Empire State Mfg., March Business Inventories, March Retail Inventories, and EIA Weekly Crude Oil Inventory are reported. We also hear from Fed member Bowman speaks. On Thursday, we get April Building Permits, April Housing Starts, April Import Price Index, April Export Price Index, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, April Industrial Production, Fed Balance Sheet and we hear from Fed members Vice Chair Barr, Mester, and Bostic. Finally, on Friday, April US Leading Economic Indicators Index is reported and we hear from Fed member Waller.
In terms of earnings reports later this week, on Wednesday, ARCO, DOLE, CSCO, CPA, GRAB, and ZTO repot. On Thursday, we hear from BIDU, DE, IQ, JD, NICE, UA, UAA, WMT, AMAT, CPRT, DXC, FLO, GLOB, and TTWO. Finally, on Friday, HTHT reports.
So far this morning, HBM, IGT, and ONON reported beats on both the revenue and earnings lines. Meanwhile, HD and MNSO missed on revenue while beating on earnings. On the other side, BABA beat on revenue while missing on earnings. However, CGAU and SE missed on both the top and bottom lines.
In miscellaneous news, on Sunday, Chinese April Inflation numbers (CPI up 0.1% while PPI fell 2.5%) were released which, in turn, boosted Oil on Monday. Markets interpreted the Chinese data as a recovery in progress…albeit a slight recovery so far. Elsewhere, the Federal Energy Regulatory Commission (FERC) voted to overhaul the national electrical grid system. The new rules are expected to expand transmission (by defining how to cover the cost of transmission), encourage more renewable energy, and require regional planning and cost allocations which have been woefully absent for decades. The changes are expected to improve the resilience of the grid by allowing more transmission between regions, as needed (reducing brow and blackouts).
With that background, it looks as if the market is waiting on PPI data (or maybe even waiting on Wednesday’s CPI data) before committing one way or the other. All three major index ETFs are within spitting distance of flat and on either side at this moment. In addition, all three have printed very indecisive candles so far in the early session. However, all three major index ETFs do remain above their T-line (8ema). So, the short-term trend remains bullish. Meanwhile, the mid-term is modestly bullish again now. The longer-term market remains very Bullish as all three major index ETFs have returned within a percent (give or take) of all-time highs. In terms of extension, the SPY, DIA, and QQQ are all back near above their T-lines. The T2122 indicator has also pulled back to just outside the overbought area. So, both sides have room to run, if they can gain the momentum to do it. However, the Bears have more slack to play with in that regard. In terms of those 10 big dog tickers, eight of the 10 are in the red this morning with only INTC (+0.69%) appreciably in the green. Remember, regardless of what knee-jerk we may get from PPI data, Fed Chair Powell speaks at 10 a.m. and he always has the ability to reverse markets or cause volatility. Also bear in mind, CPI data comes tomorrow and traders may be waiting on that number more than PPI.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
While waiting on U.S. producer price data, Asia-Pacific stock markets displayed finished mixed though mostly lower. Asian investors digested the latest inflation figures from India, where the consumer price index rose by 4.83% annually, aligning closely with the 4.8% forecast by Reuters-polled economists. Meanwhile, the Bank of Japan’s data indicated that corporate inflation remained unchanged in April on an annual basis, while import prices surged by 6.4% compared to the previous year, likely influenced by the significant drop in the yen’s value.
The Stoxx 600, a pan-European benchmark, experienced a slight decrease of 0.02%, reflecting a mixed performance across various sectors. The travel and leisure segment saw a decline of 1.1%, while the automotive sector gained an equivalent percentage. Early trading saw Delivery Hero’s shares soar by more than 21% following the news that Uber would acquire its Foodpanda operations in Taiwan, as part of a broader transaction valued at $1.25 billion.
U.S. stock futures hovered close to the break-even point as investors awaited crucial inflation data releases. The S&P 500 futures remained unchanged, while a slight uptick was observed in the Nasdaq 100 futures. Futures for the Dow Jones Industrial Average saw a modest increase of 12 points. According to a New York Federal Reserve report, there was an uptick in consumer inflation expectations for both the near and distant future in April, exerting downward pressure on the major stock indices and affecting overall market sentiment.
Economic Calendar
Earnings Calendar
Notable reports for Tuesday before the bell include BABA, HIS, IGT, JACK, ON, RISHA, HD, SE, SFL, & SDHC. After the bell include BOOT, CSWC, DHT, SLO, LGF.A, NXT, PBH, & SLF..
News & Technicals’
In the first quarter, Home Depot reported earnings that surpassed forecasts, despite revenues falling short of projections. The company has observed a trend of customers postponing significant home renovations, a shift attributed to the prevailing high interest rates. In response, Home Depot is intensifying its efforts to expand its professional customer base, a strategy bolstered by its recent acquisition of SRS Distribution.
Walmart is undergoing a significant restructuring, which includes the elimination of numerous corporate positions. The company is also transitioning most of its remote workforce to in-office roles, as reported by the Wall Street Journal on Monday. Additionally, employees from Walmart’s satellite offices in Dallas, Atlanta, and Toronto are being relocated to major centers, including the corporate headquarters in Bentonville, and other key locations in Hoboken and Southern California.
President Joe Biden is set to introduce a series of tariffs targeting imports from China, including a 100% tariff on electric vehicles, a 50% tariff on solar cells, and a 25% tariff on select steel and aluminum products. This move follows persistent cautions from White House officials urging Beijing to revise trade practices deemed detrimental to international supply chains. Despite the significant tariffs, administration officials anticipate that these measures will not contribute to inflation.
Following a federal agency’s probe, the Biden administration has mandated a divestment of property by a cryptocurrency mining firm with Chinese investment, situated in proximity to a U.S. nuclear missile facility. This directive is part of a broader array of stringent policies towards China, initiated by the White House to safeguard American national security interests. According to the presidential decree, the firm’s premises were found to house specialized equipment of foreign origin, which could potentially be utilized for intelligence-gathering operations.
Producer price data and comments for Jerome Powell will drive today’s market and likely create price action whipsaws and considerable volatility as traders and investors react. The outcome is anyone’s guess so plan your risk carefully. After the morning reaction keep in mind we have a very big day of data on Wednesday that will include the CPI report.
Friday gave us another gap higher to start the day. SPY gapped up 0.30%, DIA gapped up 0.32%, and QQQ gapped up 0.36% at the open. Then, after about 20 minutes of follow-through to the upside, all three major index ETFs sold off. The SPY and QQQ recrossed their opening gaps at 10:55 a.m. while DIA sold more slowly and did not recross the opening gap until 11:45 a.m. After their recross of the gap, all three traded sideways inside the gap for the rest of the day. This action gave us a gap-up, indecisive candles in all three major index ETFs. The DIA and QQQ printed Black Doji type candles while the SPY printed more of a black-bodied Spinning Top candle. All three remain well above their T-line (8ema) and the SPY and DIA are both less than 1% below their all-time high (not all-time high close).
On the day, five of the 10 sectors were in the green with Communications Services (+0.46%) and Consumer Defensive (+0.40%) leading the gainers higher while Energy (-0.65%) was by far the laggard sector. Meanwhile, SPY gained 0.13%, DIA gained 0.30%, and QQQ gained 0.24%. VXX fell another 1.39% to close at 12.06 and T2122 fell but remains just inside the lower edge of its overbought territory to close at 80.47. At the same time, 10-year bond yields rose to 4.500% and Oil (WTI) fell another 1.14% to close at $78.36 per barrel. So, Friday was another bullish day where the gains again came from the opening gap and the rest of the day was meandering back inside that gap area. This all happened on just-below average volume in the DIA and far-less-than-average volume in the SPY and QQQ.
The major economic news scheduled for Friday included May Preliminary Michigan Consumer Sentiment, which came in lower than expected at 67.4 (compared to a forecast of 76.0 and an April reading of 77.2). At the same time, May Preliminary Michigan Consumer Expectations were also lower than predicted at 66.5 (versus a 75.0 forecast and the April value of 76.0). Meanwhile, the May Preliminary Michigan 1-Year Inflation Expectations were higher that anticipated at +3.5% (compared to a +3.2% forecast and a previous reading of +3.2%). At the same time, May Preliminary Michigan 5-Year Inflation Expectations also rose a tick to +3.1% (versus a forecast and previous value of +3.0%). Finally, the April Federal Budget Balance came in positive but weaker than expected at a surplus of $210.0 billion (compared to a forecast of +$244.5 billion but far better than the prior month’s -$236.0 billion).
In Fed speak news, there were a raft of FOMC speakers Friday. Atlanta Fed President Bostic said the FOMC is likely to cut rates this year as the economy slows. Bostic said, “I still have that belief” (that interest rates can be lowered this year). He continued, “There is an expectation for most of the employers I talk to that they will get back to pre-pandemic wage growth, and we’re hearing from pretty much everyone that their pricing power is pretty much at its limit.” In terms of timing, Bostic only said, “I don’t think we’re going to know that for at least a couple of months.” Later, Dallas Fed President Logan was less optimistic about a rate cut. In fact, Logan said it was not clear to her that monetary policy was tight enough to bring inflation down to 2%. Logan commented, “There are also important upside risks to inflation that are on my mind, and also uncertainties about how restrictive policy is and whether it’s sufficiently restrictive to keep us on this path.” She continued, “As I think about appropriate policy, I think it’s just too early to think about cutting rates.”
Meanwhile, Chicago Fed President Goolsbee said he thinks US monetary policy is “relatively restrictive” (meaning that borrowing costs are putting downward pressure on inflation). He continued, “There isn’t at this time much evidence in my view that inflation is stalling out at 3%.” However, he continues to worry about housing inflation, saying “We’ve been saying for some significant time now, ‘oh, housing inflation is about to come down.’ If that happens at the rate at which we think, I think we will start to see overall improvement, and it will be fairly clear that there’s an optimistic lane that we could ride overall inflation back toward 2%…If it doesn’t happen, then we’ve got problems.” Elsewhere, Minneapolis Fed President Kashkari told CNBC that there is “a high bar” for any consideration of another rate hike. He continued, saying there was no hurry, saying “I’m in a wait and see mode.”
In stock news, on Friday, DELL reported its customer portal was hacked and the data of 49 million customers (including name, address dell equipment, and order information had been stolen). Later, AAPL apologized for its latest ad, showing a hydraulic press crushing many different types of electronics saying that its new AI-enabled iPad Pro would crush all other forms of content creation. (This apparently upset content creator customers.) At the same time, TSLA CEO Musk said that after the recent layoffs and elimination of its “Supercharger” group, the company will spend well over $500 million on expanding its fast-charging network in 2024. (This comes 1 day after media reports that BP is interested in acquiring the TSLA charging network.) Later, Reuters reported that sources in MCD said the company is considering launching a cheaper “meal deal” to draw in more “inflation-hit” customers.
Elsewhere, Reuters reported Friday that OpenAI will announce its own Google search engine competitor (based on its AI models) today. After the news broke, OpenAI CEO Altman tweeted that this will not be a “gpt-5 (a new version of its AI model), not a search engine, but something that ‘feels like magic’.” Then, on Saturday, unionized workers at an AAPL store in MD voted to authorize a strike. However, no date for the work stoppage has been announced yet. On Sunday, PFE and AZN announced new investments in France that combined will be worth $1 billion. Then AMZN rounded out the nice Sunday for France by announcing its own new $1.3 billion investment in facilities in that country.
In stock legal and governmental news, on Friday, the NHTSA officially announced it has opened a investigation into 211k F trucks with fuel leaks from a secondary fuel filter that has been shown to have caused 12 fires among 27 complaints. (This was separate from F’s recent recall of 42k SUVs with fuel leaks from injectors.) At the same time, MRNA said it had been informed by the FDA that a decision on approval of its RSV vaccine has been delayed but a decision should be reached by the end of the month. Later, Reuters reported that sources tell it the Biden Administration would implement new tariffs on Chinese-made electric vehicles, solar products, and medical devices (such as syringes and protective equipment) this week. At the same time, the CFTC proposed a rule Friday that would ban derivatives used to bet on US elections, natural disasters, and other major real-world events. Later, a federal appeals (two GOP-appointed and one Dem-appointed judge) court panel dismissed a lawsuit brought by Republican-led states that sought to block the SEC rule requiring investment funds to categorize and disclose proxy votes on ESG matters. (The panel ruled the states had no standing to sue the SEC.)
Elsewhere, MSFT was hit with a $242 million ruling by a federal jury in DE in a patent infringement case brought by IPA Technologies. The case was related to MSFT’s Cortana virtual assistant software. At the same time, the Treasury Dept. announced Friday that it will hold an auction the week of June 3, to sell the stock warrants the government was given by airlines (AAL, DAL, UAL, and LUV) in exchange for $54 billion in financial assistance during the COVID pandemic. Later, the USPS said it will seek a 25% rate increase for high-volume package shippers wanting last-mile regional delivery as of July 14. At the same time, a federal judge in Texas blocked the Consumer Financial Protection Bureau’s new rule that capped credit card late fees at $8. (US consumers pay $800 million per month in card late fees.) This ruling was expected since the American Banker’s Assn. and Chamber of Commerce chose that district to file the suit based on the business-friendliness of judges there. The next step is likely appeal to the New Orleans-based 5th Circuit Court of Appeals (also very conservative).
Overnight, Asian markets were mixed but leaned toward the green side in modest trading. Hong Kong (+0.80%) and Taiwan (+0.72%) led the seven gaining exchanges higher. Meanwhile, New Zealand (-0.88%) and Shenzhen (-0.60%) led the five losers lower. In Europe, things are more on the red side of flat at midday with only five of the 15 bourses in the green so far. The CAC (-0.23%), DAX (-0.20%), and FTSE (-0.17%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a modestly green start to the day. DIA implies a +0.09% open, the SPY is implying a +0.19% open, and the QQQ implies a +0.30% open at this hour. At the same time, 10-year bond yields are down to 4.485% and Oil (WTI) is up another half percent to $78.70 per barrel in early trading.
The major economic news scheduled for Monday is limited to NY Fed 1-Year Consumer Inflation Expectations (11 a.m.). We also hear from Fed member Mester at 9 a.m. The major earnings reports scheduled for before the open include CEPU, DDL, FTRE, HUYA, TME, and VTRU. Then, after the close, AHR, PBR, STNE, and TLNE report.
In economic news later this week, on Tuesday we get April Core PPI, April PPI, API Weekly Crude Stocks and we hear from Fed Chair Powell. Then, on Wednesday, April Core CPI, April CPI, April Core Retail Sales, April Retail Sales, NY Empire State Mfg., March Business Inventories, March Retail Inventories, and EIA Weekly Crude Oil Inventory are reported. We also hear from Fed member Bowman speaks. On Thursday, we get April Building Permits, April Housing Starts, April Import Price Index, April Export Price Index, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, April Industrial Production, Fed Balance Sheet and we hear from Fed members Vice Chair Barr, Mester, and Bostic. Finally, on Friday, April US Leading Economic Indicators Index is reported and we hear from Fed member Waller.
In terms of earnings reports later this week, on Tuesday we hear from BABA, BKKT, CGAU, HD, IGT, ONON, SE, SONY, NXT, and NU. Then on Wednesday, ARCO, DOLE, CSCO, CPA, GRAB, and ZTO repot. On Thursday, we hear from BIDU, DE, IQ, JD, NICE, UA, UAA, WMT, AMAT, CPRT, DXC, FLO, GLOB, and TTWO. Finally, on Friday, HTHT reports.
So far this morning, TME reported a beat on both the revenue and earnings lines. At the same time, HUYA missed on revenue (huge miss) while beating on earnings. However, DDL and FTRE missed on both the top and bottom lines.
In miscellaneous news, Israel began the next phase of its ground offensive in Rafah with tanks after intense artillery and air attacks. US Sec. of State Blinken reiterated Sunday that Israel has no credible plan to protect civilians during their invasion of the city where Israel has driven millions of refugees. This comes after Friday afternoon’s vote where 143 UN-member nations voted to recognize Palestine as a member state. (25 countries abstained and only 9 voted against, including Israel and the US.) In other news, China is gearing up for the first of its $139 billion ultra-long bond sale on Friday. (That will be only the fourth offering of 30-year bonds by China in the last 26 years.) Finally, Meme Stocks are back in the news as the Reddit poster who started that craze under the pseudonym “Roaring Kitty” posted again for the first time in nearly three years. GME (+32.70%) stock is soaring in premarket on that news.
With that background, it looks as if the Bulls are pushing to follow through on last week’s gains. All three major index ETFs opened not far from flat, but have printed white-body candles with almost no wick since that start to the early session. All three major index ETFs remain well above their T-line (8ema). So, the short-term trend remains bullish. Meanwhile, the mid-term is modestly bullish again now. The longer-term market remains very Bullish as all three major index ETFs have returned within a percent (give or take) of all-time highs. In terms of extension, the SPY, DIA, and QQQ are all getting a bit stretched above their T-lines. The T2122 indicator is also just at the edge of the overbought area. So, we should expect a pullback or at least a pause soon, to relieve the overextension if nothing else. (Just remember the market can remain extended longer than we can remain solvent predicting a turn that hasn’t come yet.) In terms of those 10 big dog tickers, eight of the 10 are in the green this morning with only GOOGL (-1.71%) really providing any drag on the market. Remember, we get more inflation data this week and have a number of Fed speakers. Any of that could potentially turn markets in at least he short-term.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
As the world waits on the pending inflation data from the U.S., the majority of Asia-Pacific stock markets experienced declines, reacting to the unexpectedly robust inflation figures from China for the month of April. The consumer price index in China saw a year-over-year increase of 0.3%, surpassing the 0.2% increment projected by Reuters. Conversely, the producer price index witnessed a year-over-year decrease of 2.5%, which exceeded the forecasted decline of 2.3%.
European markets displayed a varied performance. Investors are attentively monitoring the forthcoming inflation data from the U.S. As of 11:15 a.m. London time, the pan-European Stoxx 600 index had marginally dipped, registering a slight increase of 0.05%, with sectoral performance showing a diverse range. The automotive sector experienced a rise of 0.9%, in contrast to the construction and materials sector, which saw a decline of 0.8%.
Recovering from an overnight lows, futures see a modest uptick in stock futures as investors on Wall Street set their sights on the upcoming inflation figures. S&P 500 futures saw a slight increase of 0.1%, and Nasdaq 100 futures ascended by 0.2%. Futures for the Dow Jones Industrial Average advanced by 30 points, equivalent to 0.1%. This movement comes as the Dow, with its 30 stocks, is emerging from its eighth consecutive session of gains last Friday, marking its most successful week of the year.
Economic Calendar
Earnings Calendar
Notable reports for Monday before the bell include AS, HUYA, PSFE, TME, & MDRX. After the bell include AGYS, ALLO, AHR, KYTX, & STNE.
News & Technicals’
“Firstly, a transparent and believable strategy for civilian protection is essential, which is currently lacking. Additionally, there’s a need for a post-conflict plan for Gaza, which remains unseen,” stated U.S. Secretary of State Antony Blinken. These remarks are made amidst escalating tensions between Israel and its principal ally. The Biden administration is against an Israeli incursion into Rafah, which is presently providing refuge to over 1.2 million displaced Palestinians.
Elon Musk’s platform X received a judicial respite on Monday when an Australian federal court declined to prolong a provisional mandate aimed at obstructing the dissemination of footage depicting a stabbing incident at a Sydney church. The court rejected the eSafety Commissioner’s request to maintain an injunction that would mandate the removal of content on X related to the violent assault on a priest that occurred in April, as reported by local news outlets. This event has sparked a heated dispute involving Musk and the Australian authorities, including Prime Minister Anthony Albanese.
On Monday, U.K. Prime Minister Rishi Sunak is set to announce that the nation stands at a pivotal juncture. He aims to bolster the diminishing allegiance to his Conservative Party as the general election looms. During a forthcoming address in central London, Sunak will articulate that the forthcoming years will pose some of the sternest challenges in the annals of British history, and he will position himself as the most capable leader to steer through them. The fate of Sunak’s political career is uncertain after the Conservatives’ lackluster performance in the recent local elections and the subsequent defections of several Tory MPs to the Labour Party.
Approximately 1,500 homebuyers are expressing frustration over not having received their apartments they purchased nearly eight years prior, amidst ongoing difficulties within China’s real estate market. They were assured that their homes would be completed by 2019, yet the bulk of these properties remain incomplete, shared by five buyers under the condition of anonymity due to concerns of backlash. “It feels as though I’ve been deceived all along,” lamented a purchaser on Monday, with their sentiments conveyed in Mandarin and interpreted by CNBC.
Although the Dow had a good day on Wednesday all the indexes were lacking in momentum, as volume was noticeably weak. Perhaps the huge number of earnings or the weekly jobs numbers can provide some inspiration to the bulls or bears today. Plan your risk carefully and continue to watch for substantial point moves.
Anything is possible with pending inflation data combined with corporate buyback numbers of more than 550 billion. Expect uncertainty to rule today as we wait for the Tuesday PPI with choppy price action unless the buybacks energize markets seeking all-time highs. Plan carefully, it could be wild.
