Friday saw stocks open modestly lower on stronger-than-expected May Payroll data.  SPY opened down 0.18%, DIA started down 0.10%, and QQQ opened 0.11% lower.  At that point, all three major index ETFs rallied, recrossing that modest gap and getting to highs at 10:50 a.m.  Then all three sold off for 20 minutes part way back to the lows before meandering sideways with a slight bullish trend reaching highs at about 1:25 p.m.  From there, all three had another sharp 20-minute move back lower and then bounced before selling off again the last hour.  This action gave us indecisive, Doji-like candles in all three major index ETFs.  The SPY and QQQ printed white-body, high-wick Doji while the DIA printed a black-body, high-wick Doji.  All three remained above their T-line (8ema) with only DIA retesting.  However, SPY and QQQ also gave us new all-time highs.

On the day, all 10 sectors were in the red with Basic Materials (-1.92%) way out in front leading the market lower.  At the same time, Financial Services (-0.32%) held up better than the other sectors.  Meanwhile, SPY lost 0.12%, DIA lost 0.23%, and QQQ lost 0.09%.  VXX fell 1.24% to close at a very low 11.11 and T2122 dropped into oversold territory, closing at 13.54.  On the bond front, 10-year bond yields surged higher to reach 4.434% and Oil (WTI) dropped 0.37% to close at $75.27 per barrel.  So, Friday was a non-committal day that essentially was flat, near the all-time highs in SPY and QQQ. At the same time, DIA continued its begrudging uptrend with its own flat day. On the week, SPY gained 1.25%, DIA gained just 0.26%, and QQQ gained 2.72%.

In other market news, Gold fell by the most in two years on Friday, closing down 3.34%.  However, that was nothing compared to Copper which fell 4.94% and Silver which was down 6.69% on the day.

The major economic news scheduled for Friday include May Avg. Hourly Earnings (Month-on-Month) came in a tick hotter than expected at +0.4% (compared to a +0.3% forecast and April’s +0.2% value). On a Year-on-Year basis, May Avg. Hourly Earnings were also up to 4.1% (versus the +3.9% forecast and the April +4.0% reading).  At the same time, May Nonfarm Payrolls showed much stronger job growth than predicted at +272k (compared to the +182k forecast and the April +165k number).  On the private side, May Private Nonfarm Payrolls were also stronger than anticipated at +229k (versus a forecast of +170k and the April +158k reading).  Meanwhile, we saw the May Participation Rate fall to 62.5% (compared to the previous value of 62.7%).  This all led to a May Unemployment Rate that ticked higher to 4.0% (versus the forecast and April number of 3.9%).  For context, that breaks an all-time record of 27 straight months with Unemployment under 4.0%.  Despite conspiracy theorists mistaken beliefs, this sure seems to check out since the recent JOLTs data also showed job openings at a 3-year low.  Later, April Consumer Credit came in much lower than predicted at $6.40 billion (compared to a $9.30 billion forecast but far above the March -$1.10 billion value).

In stock news, on Friday, TSLA released a software update for Chinese customers giving them detailed navigation information, including lane-level guidance.  (It was reported that BIDU was the supplier of the detailed map data TSLA used.)  At the same time, Korean giant Samsung Electronics suffered its first ever strike walk-out by employees.  28k employees rallied on the day, but it was nothing but a PR event since it was held on a public holiday in order to not impact the operations.  Later, SAVE said, perhaps ominously, Friday that it is not considering Chapter 11 bankruptcy and is encouraged by its own plan following the JBLU deal being killed.  At the same time, Bloomberg reported that WBA had shelved its plans to IPO the Boots portion of its business.  However, WBA is still in talks to sell that Boots unit.  After the close, it was announced that KKR, CRWD, and GDDY will join the S&P 500 before the market open on June 24.  At the same time, RHI, CMA, and ILMN will be dropped by the S&P 500.

In stock legal and governmental news, on Friday, the NHTSA issued a warning to owners of 463k KIA 2020-2024 Telluride SUVs, warning the customers to park outside and away from structures until KIA can complete recall repairs.  (The NHTSA said there are reports of under seat fires and melting engines as well as many reports of smoke.)  At the same time, a UK Court ruled that V and MA must face a set of lawsuits over the fees it charges British retailers.  Later, TSLA filed court documents seeking to pay only a tiny fraction of the legal fees of the lawyers who sued (first in 2018 with the case running until 2023) to reduce CEO Musk’s pay.  Those lawyers won, throwing out Musk’s $56 billion pay package.  The lawyers billed for $5.6 billion but TSLA is fighting the fees, seeking to pay only $13.6 million.  TSLA claims there was no value to the company since Musk has re-submitted his $56 billion pay package and seems to have the votes to get it past by shareholders.  (In other words, we are too stupid to take advantage of the court decision, so we should not need to pay the lawyers who won it.)  At the same time, a federal court ruled GOOGL will pay a paltry $2.3 million (which will be tripled per law) to cover damages and, as a result, won’t have to stand jury trial in its digital advertising antitrust case. Instead, the antitrust trial over GOOGL dominance of the digital ad market will be heard by the judge (not jury) on Sept. 9. 

Meanwhile, a federal judge ruled YELP may sue (for trademark infringement and unfair competition) a business review website that claimed businesses could pay Yelp to get artificially higher star ratings.  Later, after months of lobbying by automakers, the NHTSA said on Friday that it will increase federal truck and SUV fuel economy requirements only to 50.4 mpg (fleet average for each carmaker) for 2031.  This is BARELY above the previous 49mpg that was requirement for 2026.  (The NHTSA original proposal was to hike it to 58 mpg by 2031.)  It should be noted that cars will have to average 38 mpg by 2031, which is a 2% per year increase (not starting until 2027) from the current standard.  At the same time, the FCC requested a change of venue for the case challenging its reinstitution of net neutrality.  (The case was filed by the major telecom companies in Cincinnati, OH with the 6^th Circuit and the FCC has now requested moving the case back to Washington DC.)  After the close, the FDA approved GSK’s treatment for RSV for patients 50-to-59-years in age.  This expands the market which was previously limited to patients 60 and older.

Overnight, Asian markets were mostly in the red with only three of 12 exchanges holding onto green territory.  Thailand (-1.06%), Shenzhen (-0.90%), and South Korea (-0.79%) led the region lower.  In Europe, the picture is even more bearish with all 15 bourses in the red at midday.  The CAC (-1.76%), on EU election results and PM Macron dissolving Parliament to call for snap elections, DAX (-0.66%), and FTSE (-0.34$) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a start just on the red side of flat.  The DIA implies a -0.17% open, the SPY is implying a -0.09% open, and the QQQ implies a -0.04% open at this hour.  At the same time, 10-year bond yields are popping higher to 4.465% and Oil (WTI) is up 0.26% to $75.75 per barrel in early trading.

There is no major economic news scheduled for Monday.  There are no major earnings reports scheduled for before the open or after the close Monday.

In economic news later this week, on Tuesday, we get the EIA Short-Term Energy Outlook and API Weekly Crude Oil Stocks report.  Then Wednesday, May Core CPI, May CPI, EIA Weekly Crude Oil Inventories, NY Fed 1-Year Consumer Inflation Expectations, May Federal Budget Balance, FOMC Interest Rate Decision, Fed Statement, FOMC Economic Projections, Q2 Current Interest Rate Projection, Q2 1^st Year Interest Rate Projection, Q2 2^nd Year Interest Rate Projection, Q2 3^rd Year Interest Rate Projection, and Fed Chair Press Conference are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, May Core PPI, May PPI, Fed Balance Sheet, and we hear from Fed member Williams.  Finally, on Friday, May Import Price Index, May Export Price Index, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations, and the Fed Monetary Policy Report are reported.

In terms of earnings reports later this week, on Tuesday ASO, CSAY, and ORCL report.  Then Wednesday, we hear from AVGO and PLAY.  On Thursday, KFY, SIG, ADBE, and RH report.  Finally, on Friday, there are no reports scheduled.

In miscellaneous news, C changed its Fed rate cut forecast on Friday.  Previously, C had expected a first cut in July, but after the May Payrolls Report, C moved that date to the September meeting.  Meanwhile, the Fedwatch tool showed that traders are pricing in only a 49% chance of a September rate cut with November having a 65% probability and December showing an 84.5% chance of a rate cut.  Elsewhere, Federal Reserve data released Friday showed that US Household Wealth hit a record $160 trillion in Q1 2024.  This was a 3.2% (or $3.8 trillion) increase over Q4’s record value.  Most of the gain came from the stock market rally. Separately, CNBC reported that the US created 600,000 new millionaires in 2023, a 7.3% increase in the total to 7.5 million people. (This was using the definition of millionaire as those with $1 million in investible assets, excluding primary residence, collectibles like art, or consumer durables.)

In other news, the Dept. of Energy announced Friday that it has sped up the purchase of oil to replenish the Strategic Petroleum Reserve to take advantage of current lower oil prices.  The DoE issued two solicitations to buy 6 million barrels for September – December delivery.  This is a massive money-maker by the Biden administration which sold oil in 2022 for an average of $95 per barrel and is replenishing at an average of $77 per barrel.  (Current prices are well below that, so the new solicitations should lower the average even more.)  This is one of the few times the government ever made money.  Furthermore, it makes perfect sense since the US is the world’s largest oil producer, meaning we have much less reason to have a strategic reserve than when we were importing most of our oil in the 1970s.  Finally, the Port of Baltimore fully reopened on Saturday for the first time since the Francis Scott Key bridge was struck and collapsed, closing the main channels in the process.

With that background, it looks as if the market is tepidly bearish but largely undecided in the premarket. QQQ made the biggest move, gapping down a bit to start the early session but has rallied the most on a white-body candle. Meanwhile, SPY and DIA are printing Doji-type candles not too far below Friday’s close. The DIA has given back its T-line (8ema) at this point, but not by much. With that said, only the DIA is below its T-line as the other two, broader, index ETFs remain above theirs. So, the Bulls have the upper hand in the short-term but not decisively. At the same time, the mid-term remains bullish in all three major index ETFs and the longer-term market remains very Bullish in trend. In terms of extension, none of the three are too stretched from their T-line (8ema). However, the T2122 indicator is in oversold territory. The bottom line is that the market has room to run in either direction but the Bulls have a little more slack to play with here. With regard to those 10 big dog tickers, they are evenly split. AMD (-2.33%) is the biggest mover of that group. Also, don’t forget that today is NVDA’s first day of trading at the new 10-for-1 split price. (TC2000 still is not reflecting it correctly. It has the correct price, but is indicating a 90% move lower rather than this was a split.)

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.

🎯 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.

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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

Markets were indecisive on Thursday.  SPY opened up 0.06%, DIA opened +0.04% higher, and opened up 0.16%.  From that point, all three major index ETFs meandered sideways the rest of the day.  This action gave us indecisive, Spinning Top candles in all three.  The SPY printed a small-body, black-body, Spinning Top that stayed well above its T-line (8ema).  SPY also printed a new all-time high.  DIA printed a white-body Spinning Top that retested but stayed above its T-line.  Meanwhile, QQQ gave us a bit larger-body, black-body Spinning Top that stayed well above its T-line.  QQQ also printed a new all-time high.  This all happened on well-below average volume in all three major index ETFs.

On the day, six of the 10 sectors were in the green with Energy (+0.41%) and Basic Materials (+0.40%) leading the market higher.  At the same time, Utilities (-0.98%) was by far the laggard sector.  Meanwhile, SPY lost 0.03%, DIA gained 0.20%, and QQQ lost 0.06%.  VXX fell 0.53% to close at a low 11.25 and T2122 fell but remains in the center of its mid-range, closing at 43.61.  On the bond front, 10-year bond yields fell from the premarket highs to gain only slightly 4.283% and Oil (WTI) gained 2.01% to close at $75.57 per barrel.  So, Thursday was very much a wait-and-see day. Traders seem to have been waiting on the May Payrolls reports…or maybe the Fed meeting next week. 

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in higher than expected at 229k (compared to a 220k forecast and the prior week’s 221k).  This resulted in Weekly Continuing Jobless Claims that were also higher than anticipated at 1,792k (versus a forecast and prior week reading of 1,790k).  At the same time, April Imports were up to $338.20 billion (compared to the March value of $327.00 billion).  Meanwhile, April Exports were also up to $263.70 billion (versus a previous reading of $257.60 billion).  Together, that gave us an April Trade Balance with an increased but lower than expected deficit of $74.60 billion (compared to forecast of -$76.20 billion but up from the March -$68.60 billion).  In terms of productivity, the Q1 Nonfarm Productivity was up but a tick lower than was predicted at +0.2% (versus a +0.3% forecast and far less than March’s MASSIVE +3.2% value).  We also saw a Q1 Unit Labor Cost that came in significantly below the estimates at +4.0% (compared to at +4.7% forecast but far above Q4’s +0.4%).  Then, after the close, the Fed’s Balance Sheet showed a $28 billion decrease from $7.284 trillion to $7.256 trillion. 

After the close, DOCU reported beats on both the revenue and earnings lines.  At the same time, MTN and NGL missed on both the top and bottom lines.  It is worth noting that MTN also lowered its forward guidance.

In stock news, on Thursday, NIO (Chinese electric vehicle maker) announced it now expects Q2 vehicle deliveries to more than double from the same quarter in 2023. (NIO said sales revenue will also more than double to about $2.3 billion.)  Later, stock analysts at JPM reported that AVGO has won a chip design contract for GOOGL’s next generation AI chips.  Those JPM analysts expect this to result in a 125% increase in revenue for AVGO’s TPU program in 2024 (to $8 billion).  At the same time, BA’s Starliner capsule safely docked with the International Space Station.  However, the event did not exactly go flawlessly as several of the capsule’s guidance thrusters failed during the docking.  Later, Swiss giant Nestle (NSRGY) announced it will buy the rights to MRCB’s first-ever “fecal transplant pill” (yeah, you read that right) for an undisclosed sum.  (The pills are an alternative to invasive surgery to transplant biotic fecal materials.)  After the close, Bloomberg reported HTZ is close to closing a deal to get $700 million in secured debt to offset the company’s electric vehicle debacle.  Later, META’s WhatsApp unit announced AI tools for businesses as it tries to monetize the popular encrypted chat service.  At the same time, PIPR announced it has agreed to buy a smaller competitor (Aviditi) for an unspecified sum.  Elsewhere, EMR announced it has agreed to sell its remaining 40% stake in a Copeland joint-venture with BX for $3.5 billion. Later, EADSY (Airbus) announced its May plane deliveries fell 16% from the same month in 2023, down to 53 aircraft. 

In stock legal and governmental news, on Thursday, AMZN was hit with a $1.3 billion lawsuit by an organization representing small British retailers.  The suit alleges AMZN misused data from small retailer sales on its online marketplace to boost AMZN market share and profits from its own competing products.  Later, the FDA rescinded its June 2022 ban on Juul Lab’s e-cigarettes.  The move does not approve the products (final approval is still pending) but the move does place the Juul products back under scientific review.  At the same time, the NFL, and by relationship GOOGL, was hit with a multi-billion-dollar antitrust lawsuit over the legality of “NFL Sunday Ticket.”  The case started Thursday.  The basis is that NFL sold the rights to the package (out of market game viewing) to GOOGL for $2 billion and GOOGL’s YouTube unit sells the package to viewers for $449/year.  The plaintiffs claim the low cost of streaming, each team selling the package separately would offer a fairer market rather than the NFL having and giving a monopoly on the broadcasts to GOOGL. 

Elsewhere, the FTC and US Dept. of Justice reached a deal on Thursday that clears the way for antitrust investigations into MSFT, NVDA, and OpenAI related to artificial intelligence.  (NVDA has about 80% market share in the very lucrative AI chip market, allowing margins of 70%-80%.  Meanwhile, MSFT owns about 49% of OpenAI, which is the undisputed leader in the AI services space.)  Later, the US 6^th District Court of Appeals announced it will hear a series of telecom industry legal challenges to the FCC reinstatement of net neutrality, which is set to take effect on July 22.  At the same time, a federal jury acquitted British tech billionaire Mike Lynch who was accused of fraud related to his selling of his Autonomy company to HPQ for $11 billion in 2011.  After the close, the NTSB cited “incorrect assumptions” by an air traffic controller was the cause of a near-collision between jets owned by FDX and LUV in Austin TX in February 2023.  (The planes came within 170 feet of each other with the FDX jet forced to fly over the LUV jet on the runway.)

Overnight, Asian markets were mixed but leaned toward the green side.  Five of the 12 exchanges in the region were in the red, most notably New Zealand (-0.97%) and Shenzhen (-0.90%).  However, India, (+2.05%) and South Korea (+1.23%) led gainers and the region higher.  In Europe, we see a much weaker picture at midday.  Russia (+1.73%) stands out as the leading gainer (by 1.5%), while the CAC (-1.00%), DAX (-0.95%), and FTSE (-0.63%) lead 11 of the 15 bourses lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed, flat start.  The DIA implies a -0.04% open, the SPY is implying a -0.08% open, and the QQQ implies a +0.02% open at this hour.  At the same time, 10-year bond yields are up a touch to 4.301% and Oil (WTI) is up 0.58% to $75.99 per barrel in early trading.

The major economic news scheduled for Friday include May Avg. Hourly Earnings, May Nonfarm Payrolls, May Private Nonfarm Payrolls, May Participation Rate, and May Unemployment Rate (all at 8:30 a.m.), and April Consumer Credit (3 p.m.).  There are no major earnings reports scheduled for either before the open or after the close on Friday.

In miscellaneous news, the US Dept. Of Agriculture announced that cattle infected with avian flu (N5H1) have died in five states.  Bird flu has infected cattle in 80 herds in the US, across 10 states, since late March.  The worst of these seems to be MI, where 10% of infected herds did not recover and died.  Elsewhere, the leader of the “Meme stock” short-squeeze craze (who goes by the moniker “Roaring Kitty”) scheduled a YouTube livestream event for noon on Friday.  Keith Gill (Roaring Kitty’s real name) recently announced a $116 million investment in GME.  GME shares popped 47% on the day and another 17% in afterhours trading on this news.

So far this morning, GME did report misses on both the top and bottom lines.  This led to a huge move lower in the premarket, even after the massive gains on anticipation of the Roaring Kitty livestream today. (As of this report, GME is down 9.26% from Thursday’s close, but that is 30% off the afterhours highs.)

In other news, the Israeli invasion of Gaza (and Rafeh) continues as it appears Israeli PM Netanyahu is doing his best to kill the cease-fire / peace deal.  Thursday, Israel bombed another UN school (the 108^th UN facility Israel has bombed since the October 7 attacks by Hamas).  The IDF claimed to have killed three Hamas leaders and as many as “20 or 30” Hamas militants.  However, reporters only saw 14 children and a dozen women among the dead with a similar number of women and children among the injured arriving at the hospital afterward.  (For what it is worth, those arriving at the hospital for aid reported that only refugees were in the school which was converted into a shelter.)  Israel also stopped more than 1,000 aid trucks (food, medical supplies, tents and diapers, and fuel type cargos) at the border as they use food as a weapon.  Predictably, Palestinian supporters, including the Houthi who have disrupted Red Sea and Suez Canal trade routes with attacks on commercial shipping, vowed to meet the Israeli escalations with their own escalation.  Needless to say, it does not look like the shipping problems (and skyrocketing container rates that result) will abate anytime in the near future.

With that background, it looks as if the market is undecided ahead of the May Payrolls and Unemployment data. All three major index ETFs have wobbled around the break-even area. All three are just on the green side of flat at the moment but not by a substantial amount. All three are also sporting indecisive candle types. With that said, all three are above their T-line (8ema). So, the Bulls are in control of the market in the short-term. At the same time, the mid-term remains bullish in all three major index ETFs and the longer-term market remains very Bullish in trend. In terms of extension, none of the three are too stretched from their T-line (8ema). The T2122 indicator also remains in the center of its mid-range. The bottom line is that the market has room to run in either direction. With regard to those 10 big dog tickers, eight of the 10 are green, led by META and INTC (both +0.36%). However, the two biggest dogs NVDA (-24%) and TSLA (-0.42%) are the red names on that list. Also, keep in mind that this is Friday and next week will have another Fed meeting. So, prepare your account for the weekend news cycle and don’t be surprised if markets give us a “Wait on the Fed” look after the May data report.

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.

🎯 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

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

Wednesday gave us a gap higher as traders liked the weaker-than-expected May ADP Employment report.  (Presumably, this was because they interpret that as a slowing economy and that moves us closer to a Fed rate cut.)  SPY gapped up 0.45%, DIA gapped up 0.28%, and QQQ gapped up 0.81%.  From there, SPY and QQQ ground to the side with a modest bearish bent for 45 minutes before starting a steady rally that lasted until all day and accelerated the last 10 minutes, closing at the highs. This action took SPY and QQQ to well above their T-line (8ema) and new all-time highs and new all-time high closes.  Meanwhile, DIA sold off from the open for the same 45 minutes, but recrossed its gap and more before starting its own weaker rally that lasted until 2:30 p.m. with a very modest selloff the last 90 minutes of the day.  This action gave us significant gap-up, large-body white candles with small lower wicks in the SPY and QQQ.  At the same time, DIA printed a gap-up, long-legged Doji that also closed back up above its T-line.

On the day, eight of the 10 sectors were in the green with Technology (+2.59%) way out in front leading the rest of the market higher.  At the same time, Utilities (-0.32%) was the laggard and only appreciable down sector.  Meanwhile, SPY gained 1.18%, DIA gained 0.26%, and QQQ gained 2.02%.  VXX fell 1.82% to close at a low 11.31 and T2122 rose but remains in the center of its mid-range, closing at 59.57.  On the bond front, 10-year bond yields dropped sharply again to 4.281% and Oil (WTI) gained 1.23% to close at $74.15 per barrel.  So, Wednesday was a strong day for the Bulls with markets appearing to embrace a lower ADP number (possibly believing that brings a Fed rate cut closer).  Then other data seemed more positive and that too was met with buying.  However, the other driver was NVDA (+5.16%), which surpassed $3 trillion in market cap, passing AAPL to become the second most valuable company behind MSFT (+1.91%).  This happened on just below-average volume in the SPY and QQQ but well below-average volume in the DIA. 

The major economic news scheduled for Wednesday included May ADP Nonfarm Employment Change, which came in lower than expected at +152k, a four-month low (compared to a forecast of +173k and April’s +188k).  Later, the May S&P Global Services PMI was up and as expected at 54.8 (versus a 54.8 forecast and an April reading of 51.3).  At the same time, the May S&P Global Composite PMI was a tick higher than anticipated at 54.5 (compared to the 54.4 forecast and up from April’s 51.3 value).  Later, the May ISM Non-Mfg. Employment Index was a tick lower than predicted at 47.1 (versus the 47.2 forecast but up from April’s 45.9 reading).  The headline May ISM Non-Mfg. PMI was stronger than anticipated at 53.8 (compared to a 51.0 forecast and April’s 49.4 value).  At the same time, the May ISM Non-Mfg. Price Index was lower than expected at 58.1 (versus the 59.0 forecast and also versus the April 59.2 reading).  Later, the Weekly EIA Crude Oil Inventories showed an unexpected inventory build of 1.233 million barrels (compared to a forecasted drawdown of 2.100 million barrels and the prior week’s 4.156-million-barrel drawdown). 

After the close, GEF and LULU reported beats on both the revenue and earnings line.  Meanwhile, VSCO missed on revenue while beating on earnings.  However, FIVE missed on both the top and bottom lines.  It is worth noting that LULU raised its forward guidance while FIVE lowered guidance. 

In stock news, on Wednesday, HBI announced a deal to sell its Champion unit to AHRO in a deal worth up to $1.5 billion.  (HBI shares spiked 10%, but closed up 4.95% on the news.)  At the same time, the CFO of ASML suggested he is positive on orders coming from their top customer TSM (world’s largest chipmaker).  This could suggest a strong market in coming quarters for chipmakers and that might mean they expect their customers to buy chips. (ASML shares closed up 9.52% on the day.)  Meanwhile, CPB raised its annual forecast, citing expectations for growth in the eat-at-home market.  Later, the Wall Street Journal reported that the NBA is nearing a $76 billion broadcast rights deal with AMZN, DIS’s ESPN, and CMCSA’s NBC.  At the same time, Reuters reported that DLTR is exploring the sale or spinoff of its Family Dollar unit.  (DLTR is trying to sell at a premium while economic conditions are helping discounters.)  Later, Reuters reported that LMT has signed a deal to buy 25 space launches by 2029 from private firm Firefly Aerospace for an undisclosed amount.    

Elsewhere, At the same time, reports indicated that an WM acquisition of GFL may be just a matter of time after WM bought SRCL for $7.2 billion Monday.  Later, WMT announced it will pay bonuses of up to $1,000/year to 700k hourly store workers. The bonuses will cover both full and part-time employees.  In addition, WMT store managers will be eligible to earn bonuses of up to 200% of their annual salary.  At the same time, AAL offered its flight attendants an immediate 17% raise and an improved profit-sharing plan as part of long-running negotiations.  (AAL flight attendants have not had any raise for 5 years and the union was seeking an immediate 33% increase.)  After the close, AMZN announced its Zoox unit will begin testing robotaxis in Austin TX and Miami FL. (The announcement comes as an NHTSA investigation into crashes by Zoox robotaxis.)  Later, BA finally launched its Starliner spacecraft with a manned crew and reached orbit Wednesday.  Finally, note that NVDA will split 10-for-1 on June 7 for owners as of June 6 (due to the T+1 settlement, a buyer must buy Thursday to be an owner prior to the split, which happens at the close Friday and will begin trading at the split price Monday).

In stock legal and governmental news, on Wednesday, the FAA granted a certificate to begin commercial operations to ACHR (electric air taxi company). (ACHR, which is now backed by BA, UAL, and STLA, is the second electric air taxi firm to be approved, behind JOBY which received the approval in 2022.) At the same time, META was sued by a former engineer who alleges he was fired for fixing bugs that exposed company bias because it suppressed Palestinian Instagram posts.  Later, MCD lost exclusive rights to the term “Big Mac” for poultry-based products in the EU.  Judges ruled against MCD and in favor of an Irish food chain which has long used the term “Supermac” in relation to their poultry products. 

Elsewhere, after the close, the FDA Adviser panel unanimously voted to recommend that the 2024-2025 COVID-19 vaccines should target the JN.1 variant (currently the dominant strain).  This was good news for NVAX, which could not have sold a vaccine this year if the decision went the other way.  However, the final decision will be made by the full FDA in early August (the FDA rules the same way as their advisory panel 88% of the time).  At the same time, telecom industry groups filed suit against the FCC seeking to overturn the agency’s recent ruling to reinstate net neutrality (which prevents the telcos like T, VZ, CMCSA, etc.) from charging different rates for and slowing bandwidth of certain classes of internet traffic compared to other classes of traffic.  Later, the FAA extended its “minimum NYC flight requirements” at NYC airports through October 2025.  The reduction benefits AAL, DAL, and LUV, which have cited a shortage of air traffic controllers and airline staff as the reason they are not using at least 80% of their allotted takeoff/landing slots.  At the same time, BRKB’s NetJets luxury plane unit sued its 3,400-member pilot union, alleging defamation related to comments about safety and pilot training.

Overnight, Asian markets were mixed but leaned toward the green side with eight of the 12 regional exchanges above break-even.  Taiwan (+1.94%), South Korea (+1.03%), and India (+0.89%) led the region higher.  In Europe, we see a heavily green picture at midday with only two of 15 bourses in the red (and only Russia’s -0.65% showing any appreciable loss).  The CAC (+0.45%), DAX (+0.72%), and FTSE (+0.34%) lead the region higher in early afternoon trade on this D-day.  Meanwhile, in the US, as of 7:30 a.m., Futures are flat and mixed early.  The DIA implies a -0.04% open, the SPY is unchanged, and the QQQ implies a +0.08% open at this hour.  At the same time, 10-year bonds are up to 4.297% and Oil (WTI) is up six-tenths of a percent to $74.50 per barrel in early trading.

The major economic news scheduled for on Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, April Imports, April Exports, April Trade Balance, Q1 Nonfarm Productivity, and Q1 Unit Labor Cost (all at 8:30 a.m.), and Fed’s Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open are limited to ABM, BIG, CIEN, GIII, SJM, NIO, and TTC.  Then, after the close, DOCU, NGL, and MTN report.  

In economic news later this week, on Friday, May Avg. Hourly Earnings, May Nonfarm Payrolls, May Private Nonfarm Payrolls, May Participation Rate, May Unemployment Rate, and April Consumer Credit.

In terms of earnings reports later this week, on Friday, there are no major reports.

So far this morning, ABM and CIEN reported beats on both the revenue and earnings lines.  Meanwhile, GIII and SJM missed on revenue while beating on earnings.  However, BIG and NIO missed on both the top and bottom lines.  It is worth noting that ABM, GIII, and NIO raised their forward guidance.  (TTC reports at 8:30 a.m.)

In miscellaneous news, BLK and major short-seller Citadel Securities announced they are backing an effort to launch a new stock exchange in TX.  The completely online exchange would be based on the idea that corporations are too regulated on NYSE and NASDAQ.  The actual term used was “more CEO-friendly.” (Yeah, what the market needs is less oversight of company reporting and transparency.)  At the same time, Canada became the first G7 nation to cut interest rates as the Bank of Canada cut rates a quarter percent to 4.75%.  Meanwhile, a US appeals court struck down an SEC rule intended to give investors more transparency into hedge funds.  Elsewhere, Dec. of Energy Granholm told an interview that the US could revive some recently-retired nuclear power plants to help meet demands for electricity.  (About a dozen reactors have closed since 2013, but some have been offline too long to be restarted.  Still, some are in a state where restart could quickly be accomplished.)

In other news, GS told clients Wednesday that a “flood of passive equity allocations” will pile into the stock market in early July.  The GS trading desk said this will tend to cause a market rally. In addition, GS said they believe seasonal trends and increasing retail investor interest in the market will also buoy stock prices this summer.  Elsewhere, the CDC reported that the JN.1 strain of COVID-19 is spreading fast across the US and is now killing hundreds of people each week.  Meanwhile, the World Health Organization reported that bird flu (H5N1) has killed one and hospitalized another man in Mexico.

With that background, it looks as if the market is undecided ahead of the ECB Rate decision (almost universally expected to be a cut) at 8:15 a.m. Eastern and US Weekly Jobless numbers at 8:30 a.m. SPY and QQQ gapped up just a bit and DIA gapped down just a bit to start the premarket. However, since then, all three have printed small indecisive Doji-type candles. All three are above their T-line (8ema). So, the Bulls are back in control of the market in the short-term. At the same time, the mid-term remains bullish in all three major index ETFs and the longer-term market remains very Bullish in trend. In terms of extension, none of the three are too stretched from their T-line (8ema). The T2122 indicator is also back in the center of its mid-range. So, the bottom line is that the market, has room to run. With regard to those 10 big dog tickers, seven of the 10 are red, but none more than a half percent down, in premarket. However, that biggest dog of all, NVDA (+1.89%), is pulling the rest higher as the huge Computex event continues in Taiwan.

Don’t forget to give the Army and Navy their due as we observe the 80th anniversary of D-day. The President is in Normandy paying our respects today along with other leaders and dignitaries from around the world. Cherish any WWII vet you meet, because they won’t be with us long.

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.

🎯 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

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

Markets opened higher to start the day Monday.  SPY gapped up 0.31%, DIA opened 0.10% higher, and QQQ gapped up 0.63%.  However, these were Bull traps on a volatile day.  DIA immediately sold off after the open, recrossing its open gap in the first 5 minutes and continuing South to the lows of the day at 1:15 p.m.  Meanwhile, SPY and QQQ held onto their open gaps for 15 minutes before following DIA.  They too reached the low of the day at 1:15 p.m.  At that point, the volatility switched and the Bulls rallied all three major index ETFs the rest of the day (including a strong push the last 5 minutes).  This action gave us black-bodied Hammers in the SPY and DIA with a similar candle in the QQQ (only with a small upper wick).  The SPY retested the T-line (8ema) from above and passed the test on the day.  QQQ gapped above its T-line then retested that level from above…nearly, but not quite, pushing back above at day end.  At the same time, DIA moved toward its T-line but didn’t really test the level Monday.

On the day, seven of the 10 sectors were in the red with Energy (-2.43%) way out in front leading the rest of the market lower (on OPEC+ economic pessimism).  At the same time, Healthcare (+0.59%) held up better than the other sectors.  Meanwhile, SPY gained 0.08%, DIA lost 0.33%, and QQQ gained 0.154%.  VXX fell 0.61% to close at a low 11.46 and T2122 dropped back to the center of its mid-range to close at 46.92.  On the bond front, 10-year bond yields dropped sharply to 4.392% and Oil (WTI) plummeted 3.70% to close at $74.14 per barrel.  So, Monday was a V-shaped whipsaw day that bounced up off a support level from the March/April highs after the morning post-gap selloff.  This happened on well below-average volume all three major index ETFs. 

The major economic news scheduled for Monday included May S&P Global Mfg. PMI, which came in a bit stronger than expected at 51.3 (compared to a 50.9 forecast and a 50.0 April reading).  Later, April Construction Spending was lower than predicted at -0.1% (versus a +0.2% forecast but better than March’s -0.2% value). At the same time, May ISM Mfg. Employment was stronger than anticipated at 51.1 (compared to the 48.5 forecast a 48.6 April reading).  However, the May ISM Mfg. PMI was down at 48.7 (versus the 49.8 forecast and 49.2 April value).  The May ISM Mfg. Prices Index was also down at 57.0 (compared to the 60.0 forecast and 60.9 April reading).   

In significant market news, the NYSE (owned by ICE) found and resolved a major “technical issue” Monday.  This was found to be due to a software update at a data center of the Consolidated Tape Assoc. (which is responsible for distributing real-time price data).  The problem included at least 40 tickers, including the major names BRKB and GOLD (which were both shown to be down more than 99% at one point.  (While NYSE reimbursed traders for losses due to a glitch in February 2023, there was no word on that for this case yet.)

After the close, LVRO reported misses on both the revenue and earnings lines.

In stock news, on Monday, the trade association representing the major airlines said industry revenue forecasts had risen to just under $1 trillion, with profits on target to reach $30.5 billion for 2024.  (This is up from $27.4 billion in 2023 and up dramatically from the group’s $25.7 billion profit forecast released in December.)   At the same time, Saudi Aramco sold $12 billion in stock within hours as it raised funds.  Later, SAM fell Monday after Japanese Brewer Suntory denied it was in talks to acquire SAM.  (SAM was down 10% at one point, but closed down 3.48%.)  At the same time, ADSK said it has concluded its audit / internal investigation that led to restatement of prior financial reports.  (ADSK popped and was up 10% at one point, closing up 4.57%.) Later, SPOT announced it will raise prices in the US for its premium plans as part of a program to increase profit margins.  At the same time, trade publication Beverage Digest reported Monday that the Dr. Pepper (owned by KDP) passed Pepsi (PEP) to become the second most popular soda in the US.  Both have about 8% of market share while Coke (KO) has more than 19% share.  Diet Coke (7.8%) and Sprite (8.1%) are in fourth and fifth pace and are also owned by KO.    

Elsewhere, HZO shares popped Monday on reports that ONEW is in talks to acquire the company.  Later, AMKAF (Maersk, the world’s second largest shipping company) said that significant congestion in Singapore and Dubai ports are causing delays.  As a result, the company will skip two westbound sailings from China and South Korea that had been scheduled to depart in early July.  (This congestion is due to a surge in cargo shipments as well as diversions to avoid the Red Sea because of Houthi attacks.)  Still, AMKAF raised its 2024 guidance on the strong shipping demand.  After the close, MSFT announced it is cutting hundreds of jobs (as many as 1,500 possible) from its Azure cloud computing and augmented reality divisions.  PARA agreed to merger (read acquisition) terms with Skydance.  Shareholders will receive $15/share (PARA closed at $12.80) while PARAA voting shares receive $23/share (closed at $22.14). Finally, GOOGL laid off 100 employees from its cloud computing division.

In stock legal and governmental news, on Monday the New York Times reported that MSTR and its founder (Michael Sayler) agreed to a $40 million settlement with the District of Columbia.  The settlement ends the largest income tax fraud case in D.C. history.  Later, the FDA announced it will vote on whether or not COVID-19 vaccines for 2024-2025 should target the JN.1 variant (currently the most dominant strain).  The news was greeted by a rally in NVAX (which had said last month it would only be able offer its vaccine in the US if the FDA accepted the one it is now manufacturing that is based on JN.1.  (MRNA, PFE, and BNTX are able to more quickly respond due to a different vaccine type.)  At the same time, the Chairman of TM apologized to the government of Japan for years of cheating (manipulating data) on collision safety tests. (At the same time, TM announced they have halted production of Corolla Fielder, Corolla Axio, and Taris Cross models, which were three of the models that TM fudged data to get certified.)  TM competitor MZDAF (Mazda) acknowledged the same type of cheating and also halted production on two of its models. 

Elsewhere, the US Dept. of Transportation fined four foreign airlines $2.5 million in civil penalties for delays in refunds for flights disrupted by COVID-19.  (Thousands of US passengers were forced to wait months for refunds for flight cancellations.)  At the same time, Bloomberg reported that a former TD bank employee in FL is under inquiry by the US Dept. of Justice.  The report says the employee took $200 bribes to open accounts in order to help move millions of dollars to Columbia while skirting money laundering laws.  (This probe is part of a $653 million drug money laundering probe by the DOJ of TD and other banks.)  Later, AAL told a US Appeals Court that it will consider a new partnership venture with JBLU if it wins its appeal of the case that ended the alliance of the two in the Northeast corridor.  At the same time, PacifiCorp (owned by BRKB) agreed to pay $178 million to resolve 403 claims arising from two 2020 fires (caused by the utility’s equipment).  The NHTSA announced an investigation into 75,000 NSANY (Nissan) 2015 Rogue Select vehicles over unintended deployments of side airbags.

Overnight, Asian markets were mixed with five exchanges in the green and seven in the red. India (-5.93%) was the massive mover while Malaysia (+1.17%) and Shenzhen (+1.05%) were the only other moves of more than a percent.  (Indian markets were spooked by early returns from their long national election process. So far, it is looking as if PM Modi will win again, as he should given the way he stacked the deck, but his party’s margins are looking to be lower than expected.) In Europe, we see red across the board at midday.  The CAC (-0.80%), DAX (-1.05%), and FTSE (-0.49%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.39% open, the SPY is implying a -0.45% open, and the QQQ implies a -0.41% open.  On the bond front, 10-year bond yields are down to 4.383% and oil (WTI) is down nearly 2% to $72.78 per barrel in early trading.

The major economic news scheduled for on Tuesday includes April Factory Orders and April JOLTs Job Openings (both at 10 a.m.), and Weekly API Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open are limited to BBWI, CNM, DBI, DCI, and FERG. Then, after the close, CRWD, HPE, and PVH report.   

In economic news later this week, on Wednesday, May ADP Nonfarm Employment Change, May S&P Global Services PMI, May S&P Global Composite PMI, May ISM Non-Mfg. Employment, May ISM Non-Mfg. PMI, and May ISM Non-Mfg. Prices, and Weekly EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, April Imports, April Exports, April Trade Balance, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, and Fed’s Balance Sheet.  Finally, on Friday, May Avg. Hourly Earnings, May Nonfarm Payrolls, May Private Nonfarm Payrolls, May Participation Rate, May Unemployment Rate, and April Consumer Credit.

In terms of earnings reports later this week, on Wednesday we hear from BF.A, CPB, DLTR, DOYU, HIBB, OLLI, REVG, THO, UNFI, FIVE, GEF, LULU, and VSCO.  On Thursday, ABM, BIG, CIEN, GIII, SJM, NIO, TTC, DOCU, NGL, and MTN report.  Finally, Friday, there are no major reports.

So far this morning, BBWI, DCI, and FERG have all reported beats on the revenue and earnings lines.  Meanwhile, DBI missed on both the top and bottom lines.  IT is worth noting that DCI raised its forward guidance.

In miscellaneous news, President Biden is expected to announce an Executive Order that will effectively close the US Southern border immediately.  The order would halt taking asylum requests at the US-Mexico border once the average daily “encounters” at ports of entry hits 2,500.  Taking of the requests would not resume until the average drops to 1,500. Since encounters are well above 2,500 (hitting 4,300 in April) the move would end asylum now. It is worth noting that the last time encounters fell to 1,500 was at the height of the COVID-19 pandemic during the previous administration.)  At the same time, the Associated Press reported that CEO pay increased 12.6% on average in 2023.  (This compares to a 4.1% increase for the average worker.)  This moves the average CEO pay to almost 200 times that of the average employee.  (That data is based on a survey of 382 CEOs from S&P 500 companies.)

With that background, it looks as if the large cap index ETFs gapped down to start the premarket while QQQ opened the early session flat. All three have traded lower since that start, printing black-bodied candles so far this morning. (QQQ is retesting and so far failing its T-line from above in Premarket.) With that said, the Bears are still in control of the market in the short-term. At the same time, the mid-term remains bullish in all three major index ETFs and the longer-term market remains very Bullish in trend. In terms of extension, none of the three are too stretched from their T-line (8ema). The T2122 indicator is also back in the center of its mid-range. So, the bottom line is that the market, has room to run. With regard to those 10 big dog tickers, eight of the 10 are red in premarket with only INTC (+1.58%) making an appreciable move on new AI chip announcements at Computex. (The new Intel Xeon chips are better than their predecessors in performance and power use and will be priced lower than NVDA and AMD competitors. This makes sense since the Xeon chips still are not in the same performance or power efficiency categories as those competing chips.)

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.

🎯 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

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

On Friday, markets started higher (in the premarket), perhaps on the Trump conviction news or just reversal of the week’s action, and then got another boost when PCE inflation came in as expected and even down a tick from March.  However, this initial optimism began to fade as we approached the open.  SPY then gapped up 0.20%, DIA opened 0.17% higher, and QQQ started flat at +0.04%.  From there, the Bulls followed-through for 15 minutes.  However, the Bears took over at that point selling off the SPY and QQQ until the lows of the day were hit at 12:25 p.m.  Meanwhile, the DIA started selling at 9:45 a.m. sold off until 10:15 a.m., recrossing its opening gap in the process.  Then it traded sideways until 12:25 p.m.  When we hit 12:25 p.m., all three major index ETFs began to rally modestly all the way until 3:40 p.m.  From there, the Bulls rampaged with a furious rally the last 20 minutes.  This action gave us a large, white-bodied candle (even a Morning Star if you squint) in the DIA, SPY printed a large, white-bodied Hammer candle that retested and crossed above its T-line (8ema), and QQQ gave us a long-handle, black-bodied Hammer. 

On the day, nine of the 10 sectors were in the green with Communication Services (+2.14%) out in front leading the rest of the market higher.  Meanwhile, Technology (-0.20%) was the only red sector.  At the same time, SPY gained 0.87%, DIA gained 1.59%, and QQQ lost 0.19%.  VXX dropped 3.03% to close at a low 11.53 and T2122 climbed all the way into the top part of its mid-range to close at 73.10.  On the bond front, 10-year bond yields dropped to 4.502% and Oil (WTI) fell 0.83% to close at $77.26 per barrel.  So, Friday was a U-shaped day in the SPY and QQQ while DIA led by virtue of not selling off (instead grinding sideways) all morning.  The most notable portion of the day was the furious (and massive relative to the rest of the day’s move) rally in the last 20 minutes.  Whether this was month-end trades, short covering, share buyback action or what is unknown.  However, it happened like a light switch being turned on and there was no stopping the Bulls once they saw that light. This happened on average volume in the SPY and DIA as well as above-average volume in the QQQ.

The major economic news scheduled for Friday included the Fed’s preferred inflation measure, PCE, which was mostly flat (slowest monthly pace of the year).  The April Core PCE Price Index (month-to-month) came in a tick lower than expected at +0.2% (compared to a +0.3% forecast and March reading).  For the year-on-year basis, April Core PCE Price Index came in flat and exactly as predicted at +2.8%.  The headline numbers (both month-on-month and year-on-year) were also exactly as anticipated at +0.3% on the month and +2.7% annually.  At the same time, April Personal Spending were both down and lower than expected at +0.2% (versus a +0.3% forecast and a +0.7% March value). Later, May Chicago PMI was down and lower than predicted at 35.4 (compared to a 41.1 forecast and 37.9 April reading).  

In a broader sense, SPY was down 0.39% for the week but up 5.06% on the month.  At the same time, DIA was down 0.80% on the week but up 2.49% for the month of May.  For its part, QQQ had the roughest week, down 1.58% but up 6.15% for May. Even the small-cap IWM had a similar pattern, rising 0.84% on the day, falling 0.16% for the week but up 5.04% on the month.

In “the Meaning of May” news, for what it is worth, the Trader’s Almanac reported Friday that a strong May increases the odds of a bullish remainder of the year.  May 2024 was the 10^th best May since 1950.  In addition, only twice during that 73 years did the SPY see greater than 3% gain and then end the year in the red.  During that time, Presidential Election years in 1980 and 2020 saw dramatic gains during the last seven months (up 22% and 23% respectively).  Trader’s Almanac predicts a 70% probability of S&P 500 returns of 8.6% for the rest of the year.  Elsewhere, in T+1 trade settlement news, it was reported the “trade failure” rate for the market was 2.71% Thursday.  This is up significantly from the 1.90% rate for both Tuesday and Wednesday.  The daily average trade failure rate for May (prior to the change to T+1) was 2.01%. SEC Chair Gensler said that despite the increased number of failed trades, “The historic conversion from T+2 to T+1 has gone smoothly thus far.” 

In stock news, on Friday, MDLZ announced that, after months of repair, it had restarted production of Oreo cookies in a Ukrainian plant. (The plant serves Eurasian countries, as well as Ukraine itself but not Russia.)  Later, Reuters reported that EADSY (Airbus) is facing problems in its attempt to ramp up production as the BA-competitor struggles with parts and labor shortages.  (The article said it is unclear whether this puts plane delivery targets at risk or not, but the pressure and potentially costs are increasing.) At the same time, reports claimed the SUZ bid to acquire IP is increasingly more likely to go through as financing options were being lined up.  Later, Reuters reported that US oil refineries plan to operate at more than 90% of capacity for the remainder of the quarter as summer driving season hits.  MPC (largest US refiner) plans to run at 94% of its capacity (which is 2.9 million barrels-per-day).  This is up from MPC’s 82% of capacity on average in Q1.  Meanwhile, VLO (second largest refiner) plans to operate at 95% of its capacity the rest of Q2.  At the same time, GPS stock soared almost 29% after the retailer lifted its full-year guidance.  Later, Bloomberg reported that activist investor Carl Icahn has taken a significant position in CZR.  (In 2019, Icahn had a 10% stake when he began pushing for the casino to sell itself.  This resulted in the spinoff of CZR resorts for $8.5 billion to ERI.)      

Elsewhere, as a reminder, NVDA will split 10-for-1 on June 7 for owners as of June 6.  Later, the Wall Street Journal reported that PARA’s board special committee had now agreed to recommend the Skydance Media acquisition deal to PARA shareholders.  (The recommendation would come over deal offers from APO and SONY as well as a $30 billion bid from media mogul Byron Allen.)  It is worth noting that Shari Redstone controls 77% of the PARA voting stock and the deal will let shareholders cash out at $15/share (PARA closed at $11.91 on Friday).  At the same time, the Wall Street Journal also reported the SAM is in talks to sell itself Suntory (Japanese brewing and distilling company).  The two companies have partnered on products since 2021.  Later, after the close, META announced its Facebook app is attracting the highest number of young adults that it has attracted in three years.  (META said more than 40 million US and Canadian adults between 18 and 29 now check Facebook daily.)  After the close, LYV disclosed that a hacker has stolen and is seeking to sell Ticketmaster customer data on the dark web.  (LYV says the hack took place on May 20.)  On Saturday, BA scrubbed (for the fourth time) the launch of its first crewed spaceflight of its Starliner spacecraft. The same thing happened Sunday as NASA and BA cancelled another attempt at launching Starliner.

In stock legal and governmental news, on Friday it was confirmed that the FAA still will not allow BA to increase production of its 737 MAX planes.  However, the head of the agency said the 3-hour BA quality improvement plan “checked all the agency’s boxes” (without comment on whether the plan will work).  At the same time, the NHTSA said that TSLA has agreed to recall more than 125k vehicles due to a malfunction in the that could increase the probability of injury in the event of a collision.   Meanwhile, the Dept. of Labor sued HYMLF (Hyundai) over violations of child labor law, including the illegal employing of 13-year-old children that had been kept working 60 hours per week.  Later, the USPS will increase its first-class stamp price to $0.73 (from the current $0.68), effective July 14. The requested 25% rate increase for high-volume shippers (letters and parcels) has not been decided, or at least announced, as of Friday.  Meanwhile, the NTSB announced it has opened an investigation into the Wednesday near-collision between an AAL jet and a smaller airplane at Reagan Washington National Airport.  After the close, Bloomberg reported that TSLA CEO Musk was sued by a shareholder, alleging that Musk had inside information about TSLA production and delivery goal misses when he sold $7.5 billion of stock in 2022. The suit requests that Musk return the proceeds of the sale from his allegedly improper trading.

Overnight, Asian markets were mostly green with nine of the 12 exchanges strongly above break-even.  India (+3.25%), New Zealand (+2.68%), Hong Kong (+1.79%), South Korea (+1.74%), and Taiwan (+1.71%) led the region higher.  In Europe, we see 14 of the 15 bourses in the green at midday.  Only Denmark (-0.11%) is in the red as the CAC (+0.36%), DAX (+0.75%), and FTSE (+0.10%) lead the region higher.  (Note that France had its credit downgraded over the weekend.)  In the US, as of 7:30 a.m., Futures are pointing toward a flat to modestly green start to the day.  The DIA implies a +0.02% open, the SPY is implying a +0.18% open, and the QQQ implies a +0.46% open at this hour.  At the same time, 10-year bond yields are down to 4.467% and Oil (WTI) is just on the green side of flat at +0.14% or $77.10 per barrel.

The major economic news scheduled for on Monday includes May S&P Global Mfg. PMI (9:45 a.m.), April Construction Spending, May ISM Mfg. Employment, May ISM Mfg. PMI, and May ISM Mfg. Prices (all at 10 a.m.).  The major earnings reports scheduled for before the open are limited to SAIC.  There are no major reports set for after the close.      

In economic news later this week, on Tuesday we get April Factory Orders, April JOLTs Job Openings, and Weekly API Crude Oil Stocks.  Then on Wednesday, May ADP Nonfarm Employment Change, May S&P Global Services PMI, May S&P Global Composite PMI, May ISM Non-Mfg. Employment, May ISM Non-Mfg. PMI, and May ISM Non-Mfg. Prices, and Weekly EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, April Imports, April Exports, April Trade Balance, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, and Fed’s Balance Sheet.  Finally, on Friday, May Avg. Hourly Earnings, May Nonfarm Payrolls, May Private Nonfarm Payrolls, May Participation Rate, May Unemployment Rate, and April Consumer Credit.

In terms of earnings reports later this week, on Tuesday BBWI, CNM, DBI, DCI, FERG, CRWD, HPE, and PVH report. Then Wednesday we hear from BF.A, CPB, DLTR, DOYU, HIBB, OLLI, REVG, THO, UNFI, FIVE, GEF, LULU, and VSCO.  On Thursday, ABM, BIG, CIEN, GIII, SJM, NIO, TTC, DOCU, NGL, and MTN report.  Finally, Friday, there are no major reports.

So far this morning, SAIC beat on revenue while missing on earnings.

In miscellaneous news, the Associated Press reported that Panama will begin vacating an island off its coast this week in the face of sea level rise. The small island is only home for 300 families, but it is the first of 63 islands on Panama’s coast that experts expect to need to be evacuated over the next 5-10 years.  This is a story that US (and all global countries) should learn to expect as the climate keeps warning and ice melt continues to accelerate.  (Theoretically, this might have a small positive effect on the Panama Canal.  Higher oceans require less lift through locks for passage between.)  On Sunday evening, the Wall Street Journal reported that WM is close to a deal to buy SRCL for about $7 billion (which will include debt acquired).  Elsewhere, OPEC+ voted to extend their 3.66 million barrels per day production cuts (which were scheduled to end after December 2024) to the end of 2025.  It also extended the additional 2.2 million bpd cuts by eight members another three months, through September 2024.

In late-breaking news, Taiwan is the focus of the tech industry (and to a lesser extent markets) as the annual big event Computex takes place. NVDA jumped the gun by starting their own presentation separately on Sunday, where CEO Wang announced more corporate-focused (server farm) AI chips as well as free software AI-focused apps that can run on NVDA’s consumer and high-end chips (anything Cuda-enabled). This would let individuals have AI apps that run locally for specific purposes such as chatbots or any of a host of other use cases. This is notable, because it is less than three months since NVDA announced its previous Blackwell version of AI chips. Then overnight (Monday Taiwan time) AMD followed suit by announcing new AI chips (codename Rubin, AMD likes to use artist names). AMD CEO Lisa Su told the audience that AI is the number one priority at AMD. However, unlike NVDA’s focus on corporate cloud-farm AI chips (that are massively profitable, selling in the $30k-$40k range), AMD announced AI-capable laptop (in partnership with MSFT and using the Co-Pilot AI application) and desktop CPUs. AMD alsu unveiled its next version (9000 series) of desktop CPUs, which will be the fastest CPUs for consumer computers (as is typical for AMD). Both AMD consumer product lines will ship starting in July. On the corporate side, AMD also announced corporate-focused chips to compete with NVDA’s cloud-AI offerings which will hit the market in Q4. Elsewhere, meme stock GME is rocketing early after “Roaring Kitty” posted that he has taken a $116 million long position.

With that background, it looks as if the large cap index ETFs opened the premarket flat with SPY moving higher since then. Meanwhile, QQQ opened the early session with a gap up and has followed through since that start to the morning. (QQQ is retesting its T-line from below in Premarket.) With that said, the bears are still in control of the DIA and QQQ in the short-term. At the same time, the mid-term remains bullish in all three major index ETFs and the longer-term market remains very Bullish in trend. In terms of extension, none of the three are too stretched from their T-line (8ema). The T2122 indicator is also in the mid-range, albeit toward the top of that range. So, the bottom line is that the market, has room to run. With regard to those 10 big dog tickers, nine of the 10 are green in premarket with the AI chip names NVDA (+2.97%), AMD (+1.57%), and INTC (+0.52%) leading the way higher.

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.

🎯 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

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

Wednesday was the Bear’s Day from the start.  SPY gapped down 0.78%, DIA gapped down 0.85%, and QQQ gapped down 0.91%.  From there, all three major index ETFs rallied until 10 a.m.  For its part, QQQ continued to rally until 10:55 a.m.  At that point (10 a.m. in SPY and DIA and 11 a.m. in the QQQ), all three meandered sideways with a modest Bearish trend the remainder of the day.  This action gave us a gap-down, white-bodied Doji or Spinning Top type candle with high upper wick in the SPY.  DIA printed a gap-down, black-bodied Spinning Top.  Finally, the QQQ printed a gap-down, white body Inverted Hammer.  Spy gapped down through its T-line (8ema) and failed a retest from below.  QQQ held above its T-line and DIA is now very stretched below its own 8ema.  Once again, this all happened on well-below-average volume in all three major index ETFs.

On the day, all 10 sectors were in the red with Basic Materials (-1.68%) and Energy (-1.58%) out in front leading the rest of the market lower.  Meanwhile, Communications Services (-0.72%) held up better than the other sectors.  At the same time, SPY lost 0.69%, DIA fell 1.00%, and QQQ lost 0.70%.  VXX popped another 3.83% to close at a still low 11.93 and T2122 dropped well into its oversold territory to close at 9.97.  On the bond front, 10-year bond yields spiked again to 4.614% and Oil (WTI) dropped 1.01% to close at $79.02 per barrel.  So, Wednesday was really all about the open as markets gapped down across the board.  After that, we saw that modest rebound rally and then the rest of the day was a drift sideways as traders look ahead to the GDP print on Thursday.  

The major economic news scheduled for Wednesday was limited to API Weekly Crude Oil Stocks, which showed a much larger drawdown than expected at -6.490 million barrels (compared to a -1.900-million-barrel forecast and the prior week’s 2.480-million-barrel increase).   

In Fed news, on Wednesday, the Fed announced that Cleveland Fed President Mester (who steps down on June 30) will be replaced by GS executive Beth Hammack as of August 21.  This means the FOMC will be short one voter at the July 30-31 meeting.  Hammack, who has served the bulk of her career working for the Fed, is GS’s Co-head of Global Financing.  Elsewhere, the Fed Beige Book showed that consumers grew “somewhat more pessimistic.”  However, the report said, “National economic activity continued to expand from early April to mid-May,” though overall outlooks “grew somewhat more pessimistic amid reports of rising uncertainty and greater downside risks.”  The majority of (Fed) districts noted “better labor availability, though some shortages remained in select industries or areas.”  In terms of wages, the report said, “Several (Fed) districts reported that wage growth was at (back down to) pre-pandemic historical averages or was normalizing toward those rates.”  The report concluded by saying, “price growth is expected to continue at a modest pace in the near term.”

After the close, HPQ, NTNX, OKTA, and PSTG reported beats on both the revenue and earnings lines.  Meanwhile, A, AEO, NOAH, and CRM reported misses on revenue while beating one earnings.  On the other side, UHAL beat on revenue while missing on the earnings line.  However, CPRI missed on both the top and bottom lines.  It is worth noting that NOAH had an absolutely massive miss on revenue.  It is also worth noting that A and NTNX lowered their guidance.  At the same time, OKTA and CRM raised their forward guidance.

In stock news, on Wednesday, Canadian firm AET.V (Aethon) announced it would buy the upstream assets of TELL for $260 million.  Aethon also signed a deal to buy two million tons of LNG per year from TELL.  At the same time, Reuters reported that XOM and SHEL are close to an agreement to sell their jointly-owned North Sea natural gas fields to British producer Viaro Energy.  (This comes at a time when major competitor CVX is also divesting from North Sea assets.)  Later, BITF rejected an acquisition offer of $2.30 per share in cash and stock from RIOT.  At the same time, MRK announced it has agreed to buy private biotech EyeBio for $3 billion ($1.3 billion in cash and $1.7 billion in future milestone payments).  Later, UNH shares fell 6% after an unnamed executive told an industry conference that they see a “disturbance” coming in its Medicaid business.  At the same time, BA announced it had reached a tentative deal with the firefighter’s union.  The union is expected to vote Thursday, which may end the company’s lockout of firefighters from its Seattle plant.  Later, ARM announced new chips and chip design tools to help smartphones handle AI tasks. 

Elsewhere, BHP announced it had ended its efforts to acquire AAUKF and walking away from its $49 billion offer for the London-based rival.  At the same time, Reuters reported that NABL is exploring a sale after attracting acquisition interest.  Later, MCD President (Erlinger) denounced viral reports of “runaway Big Mac prices.”  Erlinger said that such reports frustrate him and are vastly distorted, saying the average menu item had risen only 40% since 2019.  (The viral report had complained of an $18 Big Mac and 100% increases since 2021.)  At the same time, META announced it had identified networks that are pushing deceptive AI-generated content (such as praising Israeli actions in Gaza) onto social media feeds including those of US lawmakers.  These bad actors include Israeli-based political marketing firm STOIC.  Later, GD announced it is opening a new plant in Mesquite, TX to produce 100k 155mm artillery shells per month.  (The US Army will actually own the plant equipment and lease it to GD.)  After the close, WMT announced a technical issue in mid-March had caused self-checkout kiosks to overcharge customers at 1,600 of its 5,000 stores.

In stock legal and governmental news, on Wednesday, the NHTSA told owners of 84,000 older NSANY (Nissan) vehicles to stop driving them due to unrepaired Takata air bags.  At the same time, AAL was sued for racial discrimination for temporarily removing three black men from a January Phoenix to NYC flight.  The suit alleges that the plaintiffs and five other black men were removed from the flight when a white flight attendant complained about offensive body odor.  Later, the EU announced it will hold a closed-door meeting with car battery makers (including BANR) where the companies will defend themselves against charges of operating as a cartel to fix battery prices.  At the same time, the NHTSA said it’s seeking TSLA records as part of the investigation into 334k 2023 Model 3 and Model Y vehicles losing power steering while in motion.  (There have been 2,388 complaints on this issue as of February.)  Later, Reuters reported that FDA sources tell it that the agency has determined that nicotine and nicotine-like chemicals in vape products may be more potent (and addictive) than those in tobacco products.  This puts MO and BTI in the investigative crosshairs. 

Elsewhere, a US district judge in Seattle rejected an AMZN motion to dismiss an FTC lawsuit that alleges the company enrolled consumers into Amazon Prime without the consumer’s consent.  (The trial remains scheduled to start in October 2026.)  Later, the FAA announced that the agency chief (FAA Administrator Whitaker) is scheduled to meet with the BA CEO and other company executives to be presented the company’s quality improvement plans, which was demanded 90 days ago after the most recent spate of BA quality issues.  After the close, a settlement was announced in a class action case against V and MA.  The two companies will pay a $197 million settlement to end the case of millions of consumers alleging they colluded to keep cash access fees artificially high.  (V will pay $104.6 million and MA will pay $92.8 million.)  Later, the conservative activist group known for filing DEI lawsuits sent open letters to TSN and the US Dept. of Justice alleging the company is illegally hiring immigrants and children rather than adult US citizens.

Overnight, Asian markets were mostly red with only two of 12 exchanges able to hold onto green territory.  Meanwhile, South Korea (-1.56%), Taiwan (-1.38%), Hong Kong (-1.34%), and Japan (-1.30%) led the region South.  In Europe, we see a much brighter picture taking shape at midday with 10 of 15 bourses in the green, albeit on modest moves.  The CAC (+0.17%), DAX (-0.01%), and FTSE (+0.21%) lead the region higher in early afternoon trade.  In the US, as of 7 a.m., Futures are pointing toward mixed but bearish follow-through to yesterday’s selling.  The DIA implies a -0.83% open, the SPY is implying a -0.38% open, and the QQQ implies a -0.28% open at this hour.  At the same time, 10-year bond yields are back down a bit to 4.594% and Oil (WTI) is off a half of a percent to $78.85 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, April Goods Trade Balance, April Retail Inventories, Preliminary Q1 GDP, Preliminary Q1 GDP Price Index, and Preliminary Q1 PCE Prices (all at 8:30 a.m.), April Pending Home Sales, (10 a.m.), EIA Crude Oil Inventories (11 a.m.), and Fed Balance Sheet (4:30 p.m.).  We also hear from Fed member Williams (12:05 p.m.).  The major earnings reports scheduled for before the open are limited to BBY, BIRK, BURL, CAL, CM, CBRL, DG, FL, HRL, KSS, RY, and SPTN.  Then, after the close, COO, COST, DELL, GPS, GES, MRVL, NTAP, JWN, ULTA, VEEV, and ZS report.    

In economic news later this week, on Friday, we get April Core PCE Price Index, April PCE Price Index, April Personal Spending, and May Chicago PMI.  We also head from Fed member Bostic.

In terms of earnings reports later this week, on DOOO reports.

So far this morning, BIRK, BURL, BWLP, CM, DG, and RY all reported beats on both the revenue and earnings lines.  Meanwhile, BBY, CAL, FL, HRL, and SPTN all missed on revenue while beating on earnings.  (FL had a huge +83.3% earnings beat.) However, unfortunately, KSS missed on both the top and bottom line.  It is worth noting that only KSS changed guidance, lowering its outlook.

In miscellaneous news, the White House said Wednesday that it is taking measures to support new US nuclear power plants.  This is part of the administration push for more carbon-free electricity to battel climate change.  (Nuclear plants account for 19% of US electric production currently.)  Elsewhere, the new T+1 trade settlement process went mostly smoothly in its first day.  Major clearing houses report that 92.76% of Tuesday’s trades were settled, which was up from Friday’s 89.59%.  (However, it is worth noting that both Friday and Tuesday were low-volume trading days in the market.  So, the new process has not been “stress tested” quite yet.)  Meanwhile, a federal judge in TX transferred a suit brought against the CFPB by the US Chamber of Commerce (who had shopped for a conservative court) to Washington. This is a major win for the CFPB and loss for banks and the Chamber of Commerce.  (This came after the 5^th Circuit Appeals Court had prevented the original transfer.  So, the judge had to reconsider and document the reasons for the transfer again.)  Finally, in interesting geopolitical news, BABA stopped all deliveries to customers in Russia and will no longer do transactions in Russian Rubles.  BABA said it will return funds already received from customers located in that region for unfilled orders.  (This seems to indicate the company, if not China itself, are seeking to avoid US or Western sanctions.)

In late-breaking news, activist investor Nelson Peltz announced Wednesday evening that he had sold his enter 30 million share holdings of DIS (at $120/share) after losing his proxy war with DIS CEO Iger.  (DIS now trades at $100/share.)  Then this morning, AMZN announced that it has added a GRUB subscription ($120/year value) to its Amazon Prime membership ($139/year) service. Also this morning, FL posted better than expected results as its CEO said he said average selling prices increased in Q1 and he still sees consumers willing to pay full price.

With that background, it looks as if markets continue their bearish mood this morning in the premarket. (The DIA in particular fell out of bed again.) However, so far, all three major index ETFs are printing small, indecisive candles after the gap lower to start the early session. (SPY and QQQ are printing white body candles with QQQ retesting its T-line from below in Premarket. DIA is printing a small black-body candle.) Bear in mind that we get a second pass at GDP data later in the premarket and then PCE inflation data on Friday morning. With that said, the bears are in control of all three major index ETFs in the short-term. At the same time, the mid-term remains bullish and the longer-term market remains very Bullish in trend. In terms of extension, DIA is now extremely stretched to the downside below its T-line (8ema). The other two major index ETFs are not over extended from their T-lines. The T2122 indicator is back in the oversold range. So, the bottom line is that the market, especially the DIA names, is now in need of at least a rest or pull up to relieve pressure. With regard to those 10 big dog tickers, they are evenly split this morning with the five green names led by AMD (+0.82%) and the five red names led by MSFT (-0.84%).

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.

🎯 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

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