On Thursday, with the exception of DIA, the Bulls were in charge.  SPY opened 0.18% higher, DIA gapped up 0.37%, and QQQ gapped up 0.32%.  From there, both SPY and QQQ rallied steadily to new highs by about 10:45 a.m.  At that point, both went through a modest midday slump that took them back toward (but not reaching) the opening level by 1:20 p.m.  However, then the Bulls stepped back in to lead another steady rally to new highs all the way into the last few minutes.  For its part, after the open, DIA immediately sold off back to the prior close level before meandering sideways until 1:20 p.m.  From there, just as in the SPY and QQQ, DIA rallied strongly and steadily, but unlike the other two, DIA slumped the last 30 minutes.  This action gave us large, white-bodied candles that crossed above the T-line in SPY and QQQ (gapped above in QQQ).  Meanwhile, DIA printed a white, Spinning Top candle that crossed above its T-line during the day.

On the day, all 10 of the sectors were in the green with Communications Services (+1,82%) out in front leading the market higher. On the other side, Industrials (+0.12%) was by far the worst-performing sector.  At the same time, SPY gained 1.06%, DIA gained 0.82%, and QQQ gained 1.44%.  Meanwhile VXX fell 1.89%, closing at 42.06 and T2122 popped into the top half of the mid-range, closing at 72.22.  On the bond side, 10-Year Bond yields dropped to 4.535% and Oil (WTI) was just on the green side of flat, closing at $71.40 per barrel.  So, Thursday saw the market lay a classic Bear Trap.  The Bears over-reacted to news, gapping stocks lower across the entire market.  Then the Bulls stepped in to immediately fade that gap and the Bears never regained their footing.  By the time the damage was done to the Bears, markets took profits and meandered sideways in the afternoon.  This all happened on below-average volume in all three major index ETFs.

The major economic news on Thursday included Weekly Initial jobless Claims, which came in slightly lower than expected at 213k (compared to a 217k forecast but down from the prior week’s 220k reading).  On the ongoing front, Weekly Continuing Jobless Claims were also down to 1,850k (versus a 1,880k forecast and the previous week’s 1,886k number).  In terms of Producer Prices, the January Month-on-Month Core PPI was as expected at +0.3% (compared to a +0.3% forecast but down a tick from the December +0.4% value).  For the headline number, January Month-on-Month PPI was +0.4% (higher than the +0.3% forecast but down a tick from December’s +0.5% number).  Then, after the close, the Fed’s Balance Sheet was reported and broke trend by growing $3 billion to $6.814 trillion.   

In Fed news, on Thursday, the NY Fed released a report saying that consumer credit only rose modestly in Q4.  The report said, “Consumers are in pretty good shape in terms of the household debt landscape, largely driven by stable balances and solid performance in mortgage loans.  However, for auto loans, higher car prices combined with higher interest rates have driven monthly payments upward and have put pressure on consumers across the income and credit score spectrum.”  In terms of numbers, the report said credit card balances rose $45 billion from the prior quarter to $1.21 trillion, while mortgage balances ticked up $11 billion to $12.61 trillion amid a rise in mortgage creation during the quarter. The report said that auto loan balances rose by $11 billion to $1.66 trillion versus the prior quarter.

After the close, AEM, AL, ABNB, AMAT, BFAM, CAE, COIN, DVA, GT, LEG, MSI, ROKU, and WYNN all reported beats on both the revenue and earnings lines.  At the same time, AEE, DXCM, GDDY, PANW, RWT, and TWLO reported beats on revenue while missing on earnings.  On the other side, DLR, IR, and RSG missed on revenue while beating on earnings.   However, BIO and DKNG missed on both the top and bottom lines.

Overnight, Asian markets were mixed with six of the 12 exchanges green and the other half red.  Hong Kong (+3.69%) was by far the biggest mover and led the gainers while Taiwan (-1.05%) paced the losses. In Europe, the bourses are mostly green at midday.  The CAC (+0.42%), DAX (-0.27%), and FTSE (-0.16%) lead the nine green to five red exchange ratio higher in early afternoon trade.  Meanwhile, in the US, Futures are pointing to a down start to the day.  DIA implies a -0.26% open, the SPY is implying a -0.15% open, and QQQ implies a -0.17% open at this hour.  At the same time, 10-Year Bond Yields are up to 4.537% and Oil (WTI) is up three-quarters of a percent to $71.86 per barrel in early trading.

The major economic news scheduled for Friday includes Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, and Jan. Import Price Index (all at 8:30 a.m.), Jan. Industrial Production (9:15 a.m.), Dec. Business Inventories and Dec. Retail Inventories (both at 10 a.m.).  The major earnings reports scheduled for before the open include AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS.  Then after the close, there are no reports scheduled. 

So far this morning, ENB, FNMA, MGA, MRNA, POR, and TRP reported beats on both the revenue and earnings lines.  Meanwhile, FTS beat on revenue while missing on the earnings line. On the other side THS missed on revenue while beating on earnings. However,  AMCX missed on both the top and bottom lines.

With that background, it looks like the market is modestly lower to start the morning. All three major index ETFs are printing black candles. However, only DIA has a significant candle body, but even it has not quite retested its T-line (8ema) yet.  So, at this time, all three remain above their T-line, meaning the short-term trend is modestly bullish. The mid-term trend remains a choppy sideways mess. At the same time, the long-term trend remains bullish.  In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the upper half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, six of the 10 are in the red with AMZN (-0.35%) pacing the losses.  On the other side, INTC (+1.95%) is by far the biggest mover and leads the gainers.  As far as liquidity goes, TSLA (+1.36%) has traded twice as much dollar volume as NVDA (-0.05%), which itself has traded twice as much as INTC (which has traded three times as much dollar-volume as the next most active ticker). However, it is worth noting that this is still a light volume early session overall.  Finally, remember this is Friday…ahead of a 3-day Weekend.  So, prepare your account for the layoff.

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 turned into a Bear Trap. After hot CPI numbers, SPY gapped down 1.00%, DIA gapped down 0.84%, and QQQ gapped down 1.06%.  However, from there, all three major index ETFs rallied.  QQQ recrossed its gap by noon before chopping sideways along the Tuesday close level for the rest of the day.  After the open, SPY rallied to almost cross its gap by 1 p.m. before it too meandered sideways in the top half of its gap the rest of the day.  Meanwhile, DIA was the weakest of the three.  After its gap lower, it chopped sideways around that opening level until noon, rallied for an hour and then chopped sideways again in the lower half of its gap the rest of the day.  This action gave us white candles in all three.  QQQ printed the strongest (largest white candle with tiny wick on both ends.  It gapped below and then crossed back above its T-line (8ema) during the day.  SPY printed a large-body candle with an upper wick that retested its T-line from below, after gapping down through it, only to close just below that average.  DIA gave us the most indecisive candle gapping down through its T-line and printing a white Spinning Top candle that never quite retested from below.

On the day, six of the 10 of the sectors were in the red with Energy (-2.02%) far out in front leading the market lower.  On the other side, Communications Service (+0.13%) was again the strongest sector and led the four that managed to hang on to green territory. At the same time, SPY lost 0.32%, DIA lost 0.56%, and QQQ eked out a gain of 0.06%.  Meanwhile VXX was just on the red side of flat, closing at 42.87 and T2122 dropped into the lower half of its mid-range, closing at 32.74.  On the bond side, 10-Year Bond yields popped up to 4.629% and Oil (WTI) dropped 2.81%, closing at $71.25 per barrel.  So, Wednesday saw the market lay a classic Bear Trap.  The Bears over-reacted to news, gapping stocks lower across the entire market.  Then the Bulls stepped in to immediately fade that gap and the Bears never regained their footing.  By the time the damage was done to the Bears, markets took profits and meandered sideways in the afternoon.  This all happened on below-average volume in all three major index ETFs. 

The major economic news on Wednesday included Month-on-Month January Core CPI, which came in higher than expected at +0.4% (compared to a forecast of +0.3% and a December reading of +0.2%).  On the annual side, Year-on-Year January Core CPI also came in higher than expected at +3.3% (versus a +3.1% forecast and the December +3.2%).  On the headline side, Month-on-Month January CPI was two ticks higher than expected at +0.5% (compared to a +0.3% forecast and December’s +0.4% reading).  On the annual basis, Year-on-Year January CPI came in with a 3-handle at +3.0% (versus a +2.9% forecast and December value).  Later, EIA Weekly Crude Oil Inventories showed a bigger build than predicted at +4.070 million barrels (compared to a +2.400-million-barrel forecast but down from the prior week’s +8.664 million barrels.  Meanwhile, the January Federal Budget Balance was also worse-than-expected at -$129.0 billion (versus a forecasted -$88.1 billion and the December reading of -$87.0 billion). 

In Fed news, on Wednesday, Atlanta Fed President Bostic said, “We had a little pop of a number today, which is something we got to watch.”  Bostic went on to say he is not comfortable with any more rate cuts until the uncertainty around Trump Administration policy and actions on inflation become clearer.  Bostic said, “It’s going to take a while to just figure out what is going on.”  He continued, saying “(The next rate cut) is going to happen later than it would have otherwise…it may be that complexity increases and the fog stays with us.”  Later, Chicago Fed President Goolsbee commented to the New York Times about the latest CPI numbers, saying that the January inflation data “was sobering.”  He continued by saying that the FOMC should consider more than just a single report, but he said, “There’s no question, if we got multiple months like this, then the job (reducing inflation) is clearly not done.”  Later, Fed Chair Popwell testified before the House, saying, “We are close but not there on inflation. Today’s inflation print…says the same thing.”  He went on to say, “we’re not quite there yet. So we want to keep policy restrictive for now.”  He continued, “The economy is strong, the labor market is solid and we have the luxury of being able to wait and let our restrictive policy work to get inflation coming down again. And that’s what we’re doing.”  When questioned about the Fed Balance Sheet and quantitative tightening, Powell said “I think we have a ways to go” (meaning more balance sheet reduction to do).  He went on to say there is no sign yet that market liquidity has shrunk too much.

After the close, APP, CSCO, CW, FAF, GXO, HUBS, MGM, MKSI, PAYC, PEGA, PPC, QDEL, HOOD, RGLD, ROL, SCI, TYL, VTR, and WFG all reported beats on both the revenue and earnings lines.  Meanwhile, AR, CRBG, EQIX, MSA, TTD, and WMB all missed on revenue while beating on earnings.  On the other side, KGC, MTW, TSE, and WCN beat on revenue while missing on earnings.  However, ALB and TROX missed on both the top and bottom lines.

Overnight, Asian markets were mixed with six exchanges in the green, five in the red, and one unchanged.  South Korea (+1.36%) and Japan (+1.28%) led the gainers while Shenzhen (-0.77%) paced the losses.  In Europe, the picture is brighter with only 3 of the 14 bourses in the red.  The CAC (1.25%), DAX (+1.45%), and FTSE (-0.59%) are leading the region higher in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a mixed flat start to the day.  DIA implies an unchanged open, SPY is implying a -0.08% open, and QQQ implies a +0.02% open at this hour.  At the same time, 10-Year Bond Yields are back down to 4.599% and Oil (WTI) is off 1.26% to $70.47 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial jobless Claims, Weekly Continuing Jobless Claims, January Core PPI, and January PPI (all at 8:30 a.m.), and the Fed’s Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open include ALNY, ATUS, AEP, HOUS, AVNT, CBRE, CROX, DDOG, DE, DTE, DUK, GEHC, GPN, HBI, HRI, HTZ, HMC, HWM, H, IRM, KNF, LECO, TAP, MCO, DNOW, OGN, PBF, PAG, PCG, PHIN, PPL, SBH, SN, SONY, TU, TIXT, TRU, USFD, WEN, YETI, ZBRA, and ZTS.  Then after the close, AEM, AL, ABNB, AMAT, BIO, BFAM, CAE, COIN, DVA, DXCM, DLR, DKNG, GDDY, IR, LEG, MSI, PANW, RSG, ROKU, TWLO, and WYNN report. 

In economic news later this week, on Friday, Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, Jan. Import Price Index, Jan. Industrial Production, Dec. Business Inventories, and Dec. Retail Inventories are reported.

In terms of earnings reports later this week, on Friday, AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS report.

With that background, it looks like the market is undecided again early this morning. The SPY and DIA are printing small Doji-like candles near their Wednesday close level.  Meanwhile, QQQ gapped up to start the premarket, but has printed a large black candle that rand down to retest the T-line and then has rebounded back to be basically flat from the prior close.  With that said, at the moment, SPY and DIA are below their T-line awhile QQQ is above.  So, the short-term trend is mixed this morning.  The mid-term downtrend (if you want to call it a trend) remains a choppy mess. At the same time, the long-term trend remains bullish.  In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the lower half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, seven of the 10 are in the red with AAPL (-0.37%) and AMZN (-0.35%) pacing the losses.  On the other side, TSLA (+2.20%) is by far the biggest mover and leads the gainers.  As far as liquidity goes, TSLA has traded twice as much dollar volume as NVDA (-0.13%), which itself has traded almost seven times as much as the next most active premarket name. However, it is worth noting that this is a light volume early session overall.

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 lower on Tuesday.  SPY gapped down 0.39%, DIA gapped down 0.31%, and QQQ gapped down 0.62%.  From there, all three major index ETFs rallied to recross their opening gap shortly before 11 a.m.  At that point, DIA ground sideways above the gap, SPY bobbed sideways along its opening level, and QQQ sold off back into the gap and then meandered sideways in that area.  All three kept those trends up the rest of the day.  This action gave us white-bodied candles in all three major index ETFs.  SPY gapped below and then crossed back above its T-line (8ema) during the day on a white candle with only a tiny upper wick.  DIA also gapped down and the printed a Bull Engulfing candle that crossed above its T-line as well.  Finally, QQQ printed a white Inverted Hammer type candle that retested its T-line (and passed) from above.  This happened on well-below-average volume in SPY, DIA, and QQQ.

On the day, five of the 10 of the sectors were in the green, led by Communications Service (+1.00%).  On the other side, the five red sectors were led lower by Consumer Cyclicals (-0.61).  At the same time, SPY gained 0.08%, DIA gained 0.32%, and QQQ lost 0.24%.  Meanwhile VXX was just on the green side of flat, closing at 42.90 while T2122 dropped slightly, but remains in the top half of its mid-range, closing at 57.30.  On the bond side, 10-Year Bond yields rose to close at 4.501% and Oil (WTI) popped 2.07%, closing at $72.47 per barrel.  So, Tuesday Saw markets essentially undecided. They major index ETFs all gapped down and then gained that ground back before doing some version of a wobble sideways around the prior close level.   was a gap-up and then diverging sentiment day on low volume.  This may indicate traders waiting on Powell’s testimony, Trump Tariff details, or other news.     

The only major economic news on Tuesday was limited to the API Weekly Crude Stocks report, which showed a MUCH larger-than-expected inventory increase of +9.043 million barrels (compared to a +2.800-million-barrel forecast and the prior week’s +5.025-million-barrel build).

In Fed news, on Tuesday, Cleveland Fed President Hammack told a KY audience that the FOMC needs to hold rates flat.  She said, “Given current economic conditions, it will likely be appropriate to hold the funds rate steady for some time.” Hammack went on to say, “A patient approach will allow us to assess the health of the labor market, whether inflation is returning to 2% on a sustained basis, and how the economy is performing in the current rate environment.”  Later, NY Fed President Williams said, “Monetary policy is well positioned to achieve maximum employment and price stability.”  He continued, “The modestly restrictive stance of policy should support the return to 2 percent inflation while sustaining solid economic growth and labor market conditions.”   Finally, he added, “it’s important to note that the economic outlook remains highly uncertain, particularly around potential fiscal, trade (tariffs), immigration, and regulatory policies.” 

In other Fed news, during his semi-annual testimony before the Senate, Fed Chair Powell noted that the economy is “strong overall and has made significant progress toward the Fed’s dual goals over the past two years.”  He said “We are attentive to the risks on both sides of our mandate.”  During questioning. Powell said he did not think unelected, vetted, or cleared Elon Musk (or his “DOGE” team) have tried to access any Fed systems.  However, if this happens, Powell said he would report it to Congress. In other questions, Powell indicated there is no hurry to reduce interest rates fast given the strong economy, saying, “We know that reducing policy restraint too fast or too much could hinder progress on inflation.”  When asked, Powell said, “The standard case for free trade logically still makes sense … (But) it’s not the Fed’s job to make or comment on tariff policy…Our (job) is to try to react to it in a thoughtful, sensible way.”  Trying not to insult the new administration, he indicated there was uncertainty and said “tariffs, immigration, fiscal and regulatory policy…Those will all go into a mix and we (FOMC) will try to make sense of it.”

After the close, ALSN, AIG, AIZ, EW, ES, EXEL, GILD, LYFT, PBI, PRI, ST, and WELL all reported beats on both the revenue and earnings lines.  Meanwhile, CAR, BHF, MCY, and ZG all missed on revenue while beating on earnings. On the other side, DASH, ECG, IAC, and Z beat on revenue while missing on earnings.  However, ET missed on both the top and bottom line.

Overnight, Asian markets were mostly green with just two of the 12 exchanges below break-even.  Hong Kong (+2.64%), Shenzhen (+1.43%) and Thailand (+1.06%) led the region higher.  In Europe, we see a similar situation with just three of 14 bourses in the red as of midday.  The CAC (+0.06%), DAX (+0.32%), and FTSE (+0.01%) lead the region on volume in early afternoon trading. Meanwhile, in the US, Futures are pointing toward a mixed, basically flat start to the morning (ahead of CPI data).  DIA implies a a-0.16% open, the SPY is implying a -0.07% open, and QQQ implies a +0.10% open at this hour.  At the same time, 10-Year Bond Yields are up to 4.547% and Oil (WTI) is down 1.23% to $72.43 per barrel in early trading.

The major economic news scheduled for Wednesday includes January Core CPI and January CPI (both at 8:30 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.) and the January Federal Budget Balance (4:30 p.m.)  Fed Chair Powell also testifies again at 10 a.m. and Fed members Bostic (noon) and Waller (5:05 p.m.) speak.  The major earnings reports scheduled for before the open include Wednesday, GOLD, BIIB, BAM, CHEF, CME, CNDT, CVS, DBD, D, EXC, GNRC, IPG, KHC, LAD, MLM, COOP, NI, QSR, R, SITE, SW, SAH, SPTN, TMHC, THC, VRT, WAB, and WAT.  Then after the close, ALB, AR, APP, CSCO, CPA, CRBG, CW, EIX, EQIX, FAF, GXO, HUBS, KGC, MTW, MGM, MKSI, MSA, NBR, PPC, QDEL, HOOD, ROL, RGLD, SCI, SLF, TTD, TSE, TROX, TYL, VTR, WCN, WFG, and WMB report. 

In economic news later this week, on Thursday, we get Weekly Initial jobless Claims, Weekly Continuing Jobless Claims, January Core PPI, January PPI, and the Fed’s Balance Sheet. Finally, on Friday, Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, Jan. Import Price Index, Jan. Industrial Production, Dec. Business Inventories, and Dec. Retail Inventories are reported.

In terms of earnings reports later this week, on Thursday, we hear from ALNY, ATUS, AEP, HOUS, AVNT, CBRE, CROX, DDOG, DE, DTE, DUK, GEHC, GPN, HBI, HRI, HTZ, HMC, HWM, H, IRM, KNF, LECO, TAP, MCO, DNOW, OGN, PBF, PAG, PCG, PHIN, PPL, SBH, SN, SONY, TU, TIXT, TRU, USFD, WEN, YETI, ZBRA, ZTS, AEM, AL, ABNB, AMAT, BIO, BFAM, CAE, COIN, DVA, DXCM, DLR, DKNG, GDDY, IR, LEG, MSI, PANW, RSG, ROKU, TWLO, and WYNN.  Finally, on Friday, AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS report.

So far this morning, BIIB, CHEF, CME, CVS, D, EXC, GNRC, LAD, COOP, NI, QSR, SAH, SPTN, SLVM, TMHC, VRT, and WAT have all reported beats on both the revenue and earnings lines.  Meanwhile, GOLD, KHC, MLM, R, and THC missed on revenue while beating on earnings.  On the other side, IPG and SITE beat on revenue while missing on earnings.  However, SW and WAB missed on both the top and bottom lines.

With that background, it looks like the market is undecided and basically flat early in the premarket.  All three major index ETFs have printed small-body candles with significant wicks and all three have retested their T-line (8ema) from above in the early session.  With that said, at the moment, all three remains above their T-line, meaning the short-term trend is slightly bullish this morning.  The mid-term downtrend (if you want to call it a trend) remains a choppy mess. At the same time, the long-term trend remains bullish.  In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the upper half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, six of the 10 are in the green with INTC (+5.58%) far out in front leading the gainers higher.  On the other side, AMZN (-0.24%) is pacing the four laggards.  As far as liquidity goes, TSLA (+2.12%) is far out in front with NVDA (+0.38%) having traded only a tenth as much as TSLA.  (This is an extreme oddity for NVDA since TSLA volume is strong, but not abnormal.)

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.

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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

Monday saw markets open higher and then we saw some divergence. SPY gapped up 0.54%, DIA gapped up 0.60%, and QQQ gapped up 0.82%. From there, QQQ rallied steadily higher until 10:50 a.m. before trading sideways along the highs the rest of the day. Meanwhile, after the open, SPY meandered around that opening level all day. For its part, DIA met the opening gap higher with an immediate sharp selloff that leveled off after 15 minutes and finally touched the prior close level about noon before drifting back up into the mid-gap the rest of the day. This action gave us a Bullish Harami (with upper wick) in the QQQ. At the same time, SPY and QQQ printed indecisive Spinning Top candles with SPY printing a gap-up white version and DIA giving us a gap-up black-body version. All three major index ETFs gapped up above their T-line (8ema), with QQQ never retesting, SPY retesting and passing, and DIA retesting and failing that test. This happened on well-below-average volume in all three (especially SPY).

On the day, eight of the 10 of the sectors were in the green with Energy (+2.13%) well out in front leading the market higher.  On the other side, Financial Services (-0.59%) and Healthcare (-0.32%) lagging far behind the other sectors.  At the same time, SPY gained 0.68%, DIA gained 0.37%, and QQQ gained 1.21%.  Meanwhile VXX fell 2.53% to close at 42.85 while T2122 popped back into the top half of its mid-range, closing at 61.07.  On the bond side, 10-Year Bond yields rose to close at 4.501% and Oil (WTI) popped 2.07%, closing at $72.47 per barrel.  So, Monday was a gap-up and then diverging sentiment day on low volume.  This may indicate traders waiting on Powell’s testimony, Trump Tariff details, or other news.   

The only major economic news on Monday was the January NY Fed 1-Year Consumer Inflation Expectations, which came in as expected at 3.0% (in-line with the forecast and December reading of 3.0%). 

After the close, ACGL, MEDP, SSD, and WTS reported beats on both revenue and earnings.  Meanwhile, AMKR and CINF missed on revenue while beating on the earnings line. On the other side, VRTX beat on revenue while missing on earnings.  However, COTY and NGL missed on both the top and bottom lines.

Overnight, Asian markets were mixed but leaned toward the red side.  India (-1.32%) and Hong Kong (-1.06%) were by far the biggest losers.  On the other side, Thailand (+1.06%) and South Korea (+0.71%) led the gainers.  In Europe, we see a similar picture taking shape at midday with seven of the 14 bourses in the green and the other half in the red.  The CAC (-0.06%), DAX (+0.03%), and FTSE (-0.03%) lead the region on volume 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 -0.22% open, the SPY is implying a -0.33% open, and the QQQ implies a -0.52% open at this hour.  At the same time, 10-Year Bond yields are up to4.535% and Oil (WTI) is up another 1.34% to $73.31 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to the API Weekly Crude Stocks report (4:30 p.m.).  Fed Chair Powell also testifies (10 a.m.) and Fed members Bowman and Williams (both at 3:30 p.m.) speak.  The major earnings reports scheduled for before the open include AN, BP, CG, CARR, KO, DD, ECL, FIS, GFS, HUM, LCII, LDOS, MAR, MAS, RPRX, SPGI, SHOP, SUN, WCC, and KLG. Then after the close, ALSN, AMX, AIG, AIZ, BHF, BN, DASH, EW, ET, ES, ECG, EXEL, GILD, IAC, LYFT, MCY, PBI, PRI, ST, WELL, ZG, and Z report. 

In economic news later this week, on Wednesday, January Core CPI, January CPI, EIA Weekly Crude Oil Inventories and the January Federal Budget Balance are reported.  Fed Chair Powell also testifies and Fed member Bostic reports.  On Thursday, we get Weekly Initial jobless Claims, Weekly Continuing Jobless Claims, January Core PPI, January PPI, and the Fed’s Balance Sheet. Finally, on Friday, Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, Jan. Import Price Index, Jan. Industrial Production, Dec. Business Inventories, and Dec. Retail Inventories are reported.

In terms of earnings reports later this week, on Wednesday, GOLD, BIIB, BAM, CHEF, CME, CNDT, CVS, DBD, D, EXC, GNRC, IPG, KHC, LAD, MLM, COOP, NI, QSR, R, SITE, SW, SAH, SPTN, TMHC, THC, VRT, WAB, WAT, ALB, AR, APP, CSCO, CPA, CRBG, CW, EIX, EQIX, FAF, GXO, HUBS, KGC, MTW, MGM, MKSI, MSA, NBR, PPC, QDEL, HOOD, ROL, RGLD, SCI, SLF, TTD, TSE, TROX, TYL, VTR, WCN, WFG, and WMB report.  On Thursday, we hear from ALNY, ATUS, AEP, HOUS, AVNT, CBRE, CROX, DDOG, DE, DTE, DUK, GEHC, GPN, HBI, HRI, HTZ, HMC, HWM, H, IRM, KNF, LECO, TAP, MCO, DNOW, OGN, PBF, PAG, PCG, PHIN, PPL, SBH, SN, SONY, TU, TIXT, TRU, USFD, WEN, YETI, ZBRA, ZTS, AEM, AL, ABNB, AMAT, BIO, BFAM, CAE, COIN, DVA, DXCM, DLR, DKNG, GDDY, IR, LEG, MSI, PANW, RSG, ROKU, TWLO, and WYNN.  Finally, on Friday, AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS report.

So far this morning, AN, KO, DD, GFS, HUM, LCII, LDOS, MAR, and SPGI all reported beats on both the revenue and earnings lines. Meanwhile, CG, SHOP, and WCC beat on revenue while missing on earnings. On the other side, CARR, FIS, MAS, and RPRX missed on revenue while missing on earnings.  However, BP and SUN missed on both the top and bottom lines.

With that background, it looks like stocks are moving lower in a fairly indecisive manner in the premarket.  All three major index ETFs opened lower and have printed black-body, but tiny, indecisive (Doji or Spinning Top-like) candles so far in the early session. SPY is retesting its T-line (8ema) from above.  QQQ is headed that direction but remains a little above that level.  Meanwhile, Dia is moving lower away from its T-line.  So, the short-term trend is mixed but leans slightly bearish this morning.  The mid-term downtrend (if you want to call it a trend) remains a choppy mess. In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the upper half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, all 10 are in the red with AMZN (-0.65%) leading a tightly grouped pack lower.  MSFT (-0.25%) has held up best of the 10, but is in that pack headed South.  As far as liquidity goes, NVDA (-0.33%) leads with TSLA (-0.64%) slightly behind and the next-closest trading 10 times less than TSLA.  However, it is worth noting that this is a very low-volume premarket, at least so far.

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 slightly higher before the Bears stepped in.  SPY gapped up 0.10%, DIA opened 0.07% higher, and QQQ opened 0.09% higher.  All three major index ETFs then followed-through to the upside for 30 minutes.  However, then President Trump announced he is planning reciprocal tariffs on US trading partners, which he will announce next week.  (In other words, meaning we are likely to see across-the-board tariffs.)  That caused the entire market to sell off fast at first and then just steadily the rest of the day.  This action gave us large black-bodied candles with modest upper wicks, which crossed back below their T-line (8ema) in all three major index ETFs. SPY and QQQ printed Bearish Engulfing candles in the process.  This happened on just below average volume in all three index ETF.

On the day, all 10 of the sectors were in the red with Consumer Cyclical (-1.40%), Basic Materials (-1.08%), and Healthcare (-1.01%) leading the market lower.  On the other side, Energy (-0.21%) and Utilities (-0.28%) holding up better than other sectors.  At the same time, SPY lost 0.90%, DIA lost 0.95%, and QQQ lost 1.26%.  Meanwhile VXX popped 3.36% to close at 43.96 while T2122 dropped back into the lower half of its mid-range, closing at 36.78.  On the bond side, 10-Year Bond yields rose to close at 4.487% and Oil (WTI) gained 0.51%, closing at $70.97 per barrel.  So, Friday saw very modest gains on January Payroll data, which was then crushed by Trump talk and his proposed protectionism.    

The major economic news on Friday included January Month-on-Month Avg. Hourly Earnings, which came in sharply higher at +0.5% (compared to a +0.3% forecast and December reading).  On an annual basis, January Year-on-Year Avg. Hourly Earnings, stayed flat at +4.1% (versus a predicted lower +3.8% but in-line with December’s 4.1% value).  For the headline number, Jan. Nonfarm Payrolls were down at +143k (versus a +169k forecast and far down from December’s +307k reading).  On the private side, Jan. Private Nonfarm Payrolls were also sharply lower at +111k (compared to a +141k forecast and much lower than December’s +273k number).  The January Participation Rate rose a tick to 62.6% (versus December’s 62.5%).  Altogether, this gave us a Jan. Unemployment Rate which fell to 4.0% (versus a 4.1% forecast and December value). Later, Michigan Consumer Sentiment fell to 67.8 (compared to a 71.9 forecast and the January 71.1 reading).  On the forward-looking side, Michigan Consumer Expectations were also down to 67.3 (versus a 70.0 forecast and 69.3 January value).  In terms of inflation outlook, the Michigan 1-Year Inflation Expectations SKYROCKETED to +4.3% (up a full percent from the 3.3% forecast and January reading).  Looking further out, the Michigan 5-Year Inflation Expectations increase was less, now at 3.3% (up a tick from the 3.2% forecast and January value).  Later, December Consumer Credit spiked massively to $40.85 billion (dramatically higher than the $17.70 billion forecast and November’s -$5.37 billion number). 

In Fed news, on Friday, Minneapolis Fed President Kashkari told CNBC he expects the Fed Funds rate to be “modestly lower” by the end of 2025.  However, he said that for now the FOMC is in “wait and see” mode due to the uncertainty caused by the Trump administration policies (mainly tariffs since immigration arrests and deportations are on the same pace as the Obama administration).  Kashkari said, “we’re in a very good place to just sit here until we get a lot more information on the tariff front, on the immigration front, on the tax front, etc.”  He continued, “Barring something really surprising on the tariff front, immigration front, or fiscal policy front — so taking off some extreme outcomes there — I think inflation will continue to come down over this year.”  At the same time, Fed Governor Kugler said she also feels there is “considerable uncertainty about the economic impact of new policy proposals.”  She went on to say, “The prudent step is to hold the federal funds rate where it is for some time, given that combination of factors.”

Overnight, Asian markets were mixed with six in the red, five in the green, and one unchanged.  Hong Kong (+1.84%) leading the gainers while Taiwan (-0.96%) and Thailand (-0.90%) paced the losses.  In Europe, we see a brighter picture taking shape at midday with 11 of the 14 bourses in the green.  The CAC (+0.23%), DAX (+0.22%), and FTSE (+0.60%) lead the region higher in early afternoon trade.  Meanwhile, in the US, as of 7:15 a.m., Futures are pointing toward a green start to the day.  DIA implies a +0.37% open, the SPY is implying a +0.44% open, and QQQ implies a +0.69% open at this hour.  At the same time, 10-Year Bond Yields are up slightly to 4.497% and Oil (WTI) is up 1.31% to $71.93 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include CNA, INCY, NSP, MCD, ON, and ROK.  Then after the close, AMKR, ACGL, CINF, CMP, COTY, BAP, MEDP, NGL, VRTX, and WTS report. 

In economic news later this week, on Tuesday we get the API Weekly Crude Stocks report.  Fed Chair Powell also testifies and Fed member Williams speaks.  Then Wednesday, January Core CPI, January CPI, EIA Weekly Crude Oil Inventories and the January Federal Budget Balance are reported.  Fed Chair Powell also testifies and Fed member Bostic reports.  On Thursday, we get Weekly Initial jobless Claims, Weekly Continuing Jobless Claims, January Core PPI, January PPI, and the Fed’s Balance Sheet. Finally, on Friday, Jan. Core Retail Sales, Jan. Retail Sales, Jan. Export Price Index, Jan. Import Price Index, Jan. Industrial Production, Dec. Business Inventories, and Dec. Retail Inventories are reported.

In terms of earnings reports later this week, on Tuesday we hear from AN, BP, CG, CARR, KO, DD, ECL, FIS, GFS, HUM, LCII, LDOS, MAR, MAS, RPRX, SPGI, SHOP, SUN, WCC, KLG, ALSN, AMX, AIG, AIZ, BHF, BN, DASH, EW, ET, ES, ECG, EXEL, GILD, IAC, LYFT, MCY, PBI, PRI, ST, WELL, ZG, and Z.  Then Wednesday, GOLD, BIIB, BAM, CHEF, CME, CNDT, CVS, DBD, D, EXC, GNRC, IPG, KHC, LAD, MLM, COOP, NI, QSR, R, SITE, SW, SAH, SPTN, TMHC, THC, VRT, WAB, WAT, ALB, AR, APP, CSCO, CPA, CRBG, CW, EIX, EQIX, FAF, GXO, HUBS, KGC, MTW, MGM, MKSI, MSA, NBR, PPC, QDEL, HOOD, ROL, RGLD, SCI, SLF, TTD, TSE, TROX, TYL, VTR, WCN, WFG, and WMB report.  On Thursday, we hear from ALNY, ATUS, AEP, HOUS, AVNT, CBRE, CROX, DDOG, DE, DTE, DUK, GEHC, GPN, HBI, HRI, HTZ, HMC, HWM, H, IRM, KNF, LECO, TAP, MCO, DNOW, OGN, PBF, PAG, PCG, PHIN, PPL, SBH, SN, SONY, TU, TIXT, TRU, USFD, WEN, YETI, ZBRA, ZTS, AEM, AL, ABNB, AMAT, BIO, BFAM, CAE, COIN, DVA, DXCM, DLR, DKNG, GDDY, IR, LEG, MSI, PANW, RSG, ROKU, TWLO, and WYNN.  Finally, on Friday, AMCX, AEE, AXL, BGC, ENB, FTS, MGA, MRNA, NMRK, POR, TRP, and THS report.

So far this morning, CAN, L, and ROK have reported beats on both the revenue and earnings lines.  Meanwhile, INCY beat on revenue while missing on earnings.  However, EPC and MCD missed on both the top and bottom lines.

With that background, it looks like the market is modestly positive in the early premarket.  All three major index ETFs opened higher and have printed white-bodied candles since that point in the early session.  SPY gapped back above its T-line (8ema), but retested it from above and has, so far, passed that test.  However, it is printing a tiny hammer candle.  QQQ similarly gapped back above its T-line, has retested from above and has passed that test.  However, it has printed a long-handle (wide-range) Hammer in the early session.  Meanwhile, DIA made the smallest gap up and remains just below its T-line.  However, it has printed the strongest premarket candle a White Marubozu (Shaved Head) candle that has just not quite reached its T-line from below. So, the short-term trend is mixed but leans slightly bullish this morning.  The mid-term downtrend (if you want to call it a trend) remains a choppy mess.  In terms of extension, as mentioned, all three are back close to their T-line.  Meanwhile, T2122 sits in the bottom half of its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, nine of the 10 are in the green with META (+0.75%), NFLX (+0.73%), and GOOGL (+0.73%) leading a tightly bunched performance.  TSLA (-1.53%) I by far the biggest loser and only Big Dog in the red.  As far as liquidity goes, NVDA (+0.08%) leads with TSLA right on its heels and the next-heaviest trading Big Dogs having traded only about one-seventh as much dollar-volume as TSLA.   

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

Thursday saw a modest start and then a divergence. SPY gapped up 0.29%, DIA gapped up 0.16%, and QQQ opened 0.03% higher.  From there, SPY and QQQ chopped sideways all day with one modest “selloff about 2 p.m. and then a rally back that lasted the rest of the day.  Meanwhile, DIA sold off steadily until after 2:30 p.m. before it too rallied modestly the rest of the day.  This action gave us white candles in the SPY and QQQ and a black candle in DIA.  SPY printed something like a Dragonfly Doji that retested and bounced up off its T-line (8ema).  QQQ printed a white, mostly-body candle with a modest lower wick.  At the same time, DIA gave us a black-bodied Hammer-type candle that also retested and bounced up off its T-line.  This happened on well-below-average volume in all three major index ETFs.

On the day, seven of the 10 of the sectors were in the green with Financial Services (+0.82%) and Consumer Defensive (+0.79%) in front leading the market higher.  On the other side, the Energy (-1.39%) and Healthcare (-1.17%) were by far the biggest losers and two of the only three red sectors.  At the same time, SPY gained 0.35%, DIA lost 0.28%, and QQQ gained 0.52%.  Meanwhile VXX lost two-thirds of a percent to close at 42.53 while T2122 dropped back out of the overbought territory, into the top half of its mid-range, closing at 69.48.  On the bond side, 10-Year Bond yields rose to close at 4.44% and Oil (WTI) dropped 0.70%, closing at $70.53 per barrel.  So, Thursday was a bit of a Bear trap with a move lower, followed by a sharp reversal and the Bulls not giving up the momentum the rest of the day. 

The major economic news on Thursday includes Weekly Initial Jobless Claims, which came in a bit higher than expected at 219k (compares to a forecast of 214k and the prior week’s 208k value).  On the ongoing side, Weekly Continuing Jobless Claims were also higher than expected at 1,886k (versus a 1,870k forecast and the previous week’s 1,850k reading).  At the same time, Preliminary Q4 Qtr.-on-Qtr. Nonfarm Productivity was down sharply to +1.2% (versus at +1.5% forecast but down sharply from Q3’s +2.3% value). On the cost side, Preliminary Q4 Qtr.-on-Qtr. Unit Labor Costs was up sharply but lower than predicted at +3.0% (compared to a+3.4% forecast and Q3’s +0.5% reading).  Then, after the close, the Fed Balance Sheet showed a $7 billion decline to $6.811 trillion.

In Fed news, on Thursday, Chicago Fed President Goolsbee clarified his remarks from earlier this week.  He said, “We (economy) have kind of settled in at full employment. Inflation is looking better. If conditions keep like that (they are), rates will be lower (at the end of 2025) than they are today.”  However, he continued to say that uncertainty brought by Trump administration proposals (and their lack of clarity or consistency) will mean a slower pace of cuts. “The more dust we (Trump administration) throw in the air…that makes it hard for us to calibrate what the conditions actually are (and) the more we have to wait and see. We (FOMC) just want to be confident we are not overheating and that the job (reducing inflation) is in fact done.” Later, the Boston Fed released a report that said “the full suite of tariffs sought by the Trump administration would create notable upward pressure on inflation.”  The reports estimate that upward inflation due to the tariffs to be as much as 0.8% (based on the PCE Index).  After the close, Dallas Fed President Logan indicated she was prepared to hold the Fed Funds Rate steady (no cuts) “for quite some time”…even if inflation continues to drop closer to the FOMC’s 2% target.  She said that recent data “would strongly suggest that we’re already pretty close to the neutral rate, without much near-term room for further cuts.” She indicated that she was looking at the labor market as her signal for further rate cuts, saying, “if the labor market or demand cools further, that could be evidence it’s time to ease.”

After the close, AFRM, AMZN, BYD, CNO, EHC, EXPE, LION, FTNT, G, LGF.B, MTD, MHK, MPWR, OTEX, SENEA, and SSNC all reported beats on both the revenue and earnings lines.  Meanwhile, AMRK, ILMN, PINS, PFG, and ULH beat on revenue while missing on earnings.  On the other side, ATR, HUBG, MTX, POST, and TTWO missed on revenue while beating on earnings.  However, FBIN, MCHP, NBIX, RGA, SKX, VSAT, and WERN missed on both the top and bottom lines.

Overnight, Asian markets were mixed but leaned toward the green side.  Shenzhen (+1.75%), Thailand (+1.59%), Hong Kong (+1.16%), and Shanghai (+1.10%) led the region higher.  At the same time, South Korea (-0.59%) was by far the worst loser on the day.  In Europe, the bourses are mixed, but lean toward the red side at midday in modest trading.  The CAC (-0.09%), DAX (+0.02%), and FTSE (-0.35%) lead a mixed region in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a mixed, flat open ahead of January Payroll data.  The DIA implies a +0.08% open, the SPY is implying a dead-flat open, and the QQQ implies a -0.01% open at this hour.  At the same time, 10-Year Bond Yields remain at 4.44% and Oil (WTI) is up 0.75% to $71.14 per barrel in early trading.

The major economic news scheduled for Friday includes Jan. Avg. Hourly Earnings, Jan. Nonfarm Payrolls, Jan. Private Nonfarm Payrolls, Jan. Participations Rate, and Jan. Unemployment Rate (all at 8:30 a.m.), Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations (all at 10 a.m.), and Dec. Consumer Credit (at 3 p.m.).  The major earnings reports scheduled for before the open include AVTR, CBOE, ROAD, FLO, FTV, ULCC, GPRE, KIM, NWL, PAA, and PAGP.  Then after the close, there are no earnings reports scheduled. 

So far this morning, ROAD, KIM, and UI have reported beats on both the revenue and earnings lines.  Meanwhile, AVTR, FLO, and NWL missed on revenue while beating on earnings.  However, GPRE, PAA, and PAGP missed on both the top and bottom lines.

With that background, it looks like the market is undecided again this morning ahead of the January Payrolls data.  All three major index ETFs are little moved from Thursday’s close and have printed small-body, white-bodied candles in the premarket.  All three are above their T-line (8ema), meaning the short-term trend is bullish.  The mid-term downtrend (if you want to call it a trend) remains a mess.  In terms of extension, as mentioned, all three are back close above their T-line.  Meanwhile, T2122 in its mid-range.  So, both sides have room to work today if they can find momentum. In terms of the Big Dogs, seven of the 10 are in the red with AMZN (-2.79%) far out front leading the losses (as it is being punished for a poor forecast in Thursday night’s report). On the other side, META (+0.31%) leads the three green Big Dogs.  As far as liquidity goes, NVDA (+0.15%) leads with TSLA (-0.74%) and AMZAN having traded about one-third less and then the next closest being 12 times less dollar volume.  However, bear in mind that it is light premarket in terms of liquidity. Also, remember that its Friday and we need to prepare 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.

🎯 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