Markets opened mixed and flat on Monday.  SPY and QQQ both opened 0.02% higher while DIA opened down 0.08%.  At that point, SPY and QQQ followed through rallying for 30 minutes.  From there QQQ traded sideways the rest of the day.  SPY traded the same way until 11:45 a.m., sold off slowly until 2 p.m. and then traded sideways just above the open the rest of the day.  Meanwhile, DIA did not begin its rally until 10 a.m. reaching the highs of the day about 11:40 a.m. and the it too sold off until 2 p.m. more than recrossing the open gap and then trading sideways at the lows from 2 p.m. into the close.  This action gave us a large, white-bodied candle in the QQQ that gave us both a new all-time high and a new all-time high close.  At the same time, SPY printed a white-body Inverted Hammer candle that could easily be seen as a Tweezer Double Top along with Thursday’s candle.  However, DIA gave us a black-bodied, high wick candle that did not quite make it to the all-time high (Thursday) and closed below Friday’s low.  All three major index ETFs also remain well above their T-line (8ema).

On the day, five of the 10 sectors were in the green with Technology (+0.89%) leading the green half higher.  At the same time, Financial Services (-0.70%) and Consumer Defensive (-0.69%) were way out front leading the red sectors lower. Meanwhile, SPY gained 0.12%, DIA lost 0.46%, and QQQ gained 0.70%.  VXX gained very slightly to close at 11.38 and T2122 dropped a bit, falling just outside of its overbought territory to close at 79.01.  At the same time, 10-year bond yields rose to 4.445% and Oil (WTI) fell half of a percent to close at $79.67 per barrel. So, Monday was a day of divergence with the Dow 30 moving lower, QQQ driving higher, and SPY in the middle just on the green side of flat.  This all happened on well below-average volume across all three major index ETFs.

There was no major economic news scheduled for Monday.

In Fed news, on Monday, Atlanta Fed President Bostic told Bloomberg that interest rates are likely to stay above the levels of the past decade.  Bostic said he expects inflation to fall throughout the rest of 2024 and 2025.  However, the labor market (while weaker than it was a year ago) “is not soft” and will force the Fed to keep rates higher for longer.  Later, Vice Chair Barr said, “Inflation readings in the first quarter of this year were disappointing.  These results did not provide me with the increased confidence that I was hoping to find to support easing monetary policy.”  He continued, “We will need to allow our restrictive policy some further time to continue its work.”  At the same time, Fed Vice Chair Jefferson told a NY audience that it is too early to tell if the slowdown in the disinflationary process will be long lasting.  He went on to say the Fed viewed determining whether it will be long lasting or if inflation will resume its decline as a necessary precondition for the Fed to start cutting rates.  Meanwhile, Cleveland Fed President Mester told Bloomberg that she also believes inflation will continue to fall the rest of this year, although more slowly than she had been expecting.  In an article published Monday afternoon, San Francisco Fed President Daly reiterated that she sees no evidence of the need for rate hikes.  However, Daly was also quoted as saying that at the same time she is “not confident” is falling to 2%.  So, she also sees no need to cut rates yet.

On another topic, Vice Chair Barr said the Fed was reconsidering how much liquidity banks should be made to keep on hand.  He was quick to point out that these “adjustments” were targeted at larger banks and that by increasing he amount they must hold at the Fed Discount Window it would increase the capital available for the Fed to act as “the buyer of last resort” for smaller banks that may fail.  (No timetable or specifics on the “adjustments” was mentioned.) 

After the close, KEYS, PANW, TCOM, and ZM all reported beats on both the revenue and the earnings line.  Meanwhile, NDSN and JHX missed on revenue while beating on earnings.  It is also worth noting that KEYS and NDSN lowered forward guidance while ZM raised its guidance.

In stock news, on Monday, GOOGL announced it has invested $1.1 billion into the expansion of its Finnish data center, aimed at driving growth of its AI business unit in Europe.  At the same time, AAPL slashed its iPhone prices in China (offering up to $318 in discounts on some models) amidst fierce competition from Huawei.  Later, MSFT introduced a new category of personal computer with AI features.  It calls this new line of PCs “CoPilot+” and the initial launch came from OEM computer makers Acer and Asustek.  At the same time, Reuters reported that Soroban Capital Partner has taken a $500 million position in JCI.  This news came after Sunday’s revelation that Elliott Investment Mgmt. had taken more than a $1 billion position in JCI.  (The motives and timing behind the moves are not known.)  Later, SSB announced it will buy smaller rival bank IBTX for roughly $2 billion, creating a combined bank with $65 billion in total assets.  At the same time, TGT announced it has cut prices on 5,000 items in an attempt to lure back inflation-drained shoppers.  The reductions will take place over the course of the summer.  Meanwhile, Bloomberg reported that HIMS is taking on the Big Pharma giants by offering a generic version of the same active ingredient in the how weight loss drugs from LLY and NVO.  This $199/month product undercuts the pharma giants by as much as 85%.

In stock legal and governmental news, on Monday the NHTSA announced it opened an investigation into 51,500 electric vehicles from VLKAF (Volkswagen) over concerns of the door opening while the cars were driving.  At the same time, NHTSA also closed its probe into more than 100k TSLA Model X after the company issued a recall to fix a front seat belt problem (failure due to faulty bolt installation).   Later, the US Senate Finance Committee issued a report alleging that BMWYY (BMW) imported at least 8,000 Mini Cooper cars which contained parts from a banned Chinese supplier.  BMWYY said it had halted import and will conduct service action to remove and replace the electronic components in question.  At the same time, an independent lab from CT sued GSK, alleging the drugmaker had defrauded the US government and taxpayers by concealing the cancer risks of Zantac for nearly four decades.  (The lab found during testing in 2019 the Zantac forms a cancer-causing compound and is unfit for human consumption.  The lawsuit alleges GSK found the same thing in 1983 and has suppressed that finding from the FDA, Medicare, Medicaid, and other agencies. 

Elsewhere, the NHTSA announced Monday it is investigate a VFS electric vehicle crash in late April which killed a family of four.  Meanwhile, DJT disclosed that it had been cooperating with a FINRA investigation related to the company’s “blank check merger.”  After the close, a trade group representing nearly all automakers filed its support of two key parts of the recent EPA emissions rules.  The group said automakers support the EPA plan to include electric vehicles in fleetwide average emissions calculations and also in excluding upstream emissions, such as emissions from manufacturing plants, from those calculations.  (The new rules have been challenged by a lawsuit from 25 GOP-led states while 22 states and five major cities support the new rules.  The rules call for a 49% cut in fleetwide average emissions between 2026 and 2032.  This was watered down from the originally proposed 56% cut over that period after carmaker pushback.)  Also after the close, the same conservative legal activist group behind myriad DEI lawsuits, filed another suit, this time suing LUV over a two-decade old program that awarded free round-trip flights to certain Hispanic college students.

Overnight, Asian markets were nearly red across the board.  Only India (+0.12%) was able to hang onto green territory.  Meanwhile, Hong Kong (-2.12%) was BY FAR (by 1.5%) the biggest loser as Chinese Real Estate support measures disappointed.  In Europe, we see a similar picture taking shape with only one of 15 bourses in the green while the CAC (-0.99%), DAX (-0.40%), and FTSE (-0.37%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed and flat start to the day.  The DIA implies a +0.02% open, the SPY is implying a +0.03% open, and the QQQ implies a -0.06% open at this hour.  At the same time, 10-year bond yields are down to 4.428% and Oil (WTI) is off 1.57% to $78.55 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to API Weekly Crude Oil Stocks (4:30 p.m.).  However, we also get another raft of speakers including Treasury Sec. Yellen (4 a.m.), Fed Governor Kroszner (4:20 a.m.), Fed member Waller (9 a.m.), Williams (9:05 a.m.), Bostic (9:10 a.m.), Vice Chair Barr (11:45 a.m.), Bostic again (7 p.m.), and Mester (7 p.m.).  The major earnings reports scheduled for before the open is limited to AS, AZO, EXP, LOW, M, OCFT, XPEV, and ZIM.  Then, after the close, MOD, SKY, TOL, URBN, VSAT, and XP report.

In economic news later this week, on Wednesday, April Existing Home Sales, EIA Weekly Crude Oil Inventories, and FOMC Meeting Minutes are reported.  On Thursday, we get Building Permits, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, April New Home Sales, Fed Balance Sheet.  Fed member Bostic also speaks again.  Finally, on Friday, April Core Durable Goods, April Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations are reported and Fed member Waller speaks.

In terms of earnings reports later this week, on Wednesday, ADI, DY, GOGL, HOV, WOOF, PDD, TGT, VIPS, WSM, BBAR, SQM, ENS, PLUS, SUPV, NVDA, SNOW, SNPS, TBBB, and VFC report.  On Thursday, we hear from ATAT, BILI, BJ, BEKE, MDT, NTES, PSNY, RL, TD, TITN, CVCO, DECK, INTU, ROST, and WDAY.  Finally, on Friday, BAH reports.

So far this morning, AS, LOW, and M have reported beats on both the revenue and earnings lines.  Meanwhile, AZO and XPEV missed on the revenue line while beating on earnings.  On the other side, ZIM beat on revenue while missing on earnings.  However, EXP missed on both the top and bottom lines.  It is worth noting that XPEV lowered guidance while ZIM raised its forward guidance.

In miscellaneous news, the embattled Chair of the FDIC, Gruenberg, said he will step down as soon as a successor is confirmed.  Gruenberg and the FDIC have been under a months-long scandal over allowing an environment of sexual misconduct and other misogyny at the agency.  (Gruenberg has been on the FDIC board since 2005 and is in his second term as board Chair.)  Elsewhere, BA shareholders voted to keep departing CEO Calhoun on its board, even after stepping down.  Meanwhile, Bloomberg reported that JPM is putting every new employee through AI training.  This is being done to better prepare for what CEO Dimon says will be a revolution similar to the printing press of steam engine.  On a separate note, Dimon told the JPM annual meeting that his retirement is “less than five years away.”  (This is of note because Dimon has given the same “retirement is always five years away” answer for several years before this change.) 

Finally, as a reminder, make note the US securities market will soon begin its new 1-day settlement of trades, called “T+1”, which is down from the current 3-day settlement.  This change begins Tuesday, May 28.  (Also note that some analysts are nervous over the stress on the systems of clearinghouses and brokerages. They fear the “all or nothing” rollout is a high-risk event. However, officials at the exchanges, clearing houses, and brokers say they expect the transition to be smooth.)

With that background, it looks as if markets are flat and indecisive so far in the premarket. All three major index ETFs opened flat and have printed small, indecisive (more with than body) candles so far in the early session. All three remain at new or very near the all-time highs from last week and are obviously well above their T-lines (8emas). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish and the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, yesterday’s candle allowed the T-line to “catch up” some in the large-cap index ETFs (especially DIA on its black candle). So, only the QQQ could be considered stretched too far above its T-line. However, more rest is probably needed in all three. The T2122 indicator pulled to the very top end of its mid-range, just outside the overbought area. So, while the market has room to run (if either side can find momentum), more pause or pullback are probably needed for a healthy rally to continue or for a trend break to happen. With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, six of the 10 are in the green at this point this morning with NVDA (+0.65%), the biggest dog of all, leading the gains while TSLA (-0.62%) is the biggest drag on the market.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

🎯 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

On Friday, markets opened flat.  SPY opened up 0.02%, DIA opened down 0.01%, and QQQ opened up 0.04%.  From that point, the SPY and DIA meandered sideways until about 1:50 p.m.  At that point, both sold off for half an hour before rallying the rest of the day, closing on their highest 5-minute candle of the day. Meanwhile, after the open, QQQ ground sideways until noon.  Then the high-tech index ETF sold off, reaching the lows of the day at 2:25 p.m.  From that point, QQQ also rallied into the close, but from a much lower starting point and not quite reaching the opening level again.  This gave us a white-bodied Hammer Harami in the SPY, a white-bodied Bullish Engulfing candle in the DIA, and a black-bodied long-legged Doji type candle in the QQQ.  This led DIA to close and another all-time high close.  All three major index ETFs also remain well above their T-line (8ema).

On the day, six of the 10 sectors were in the green with Basic Materials (+1.32%) well out front leading the majority of sectors higher.  Meanwhile, the Consumer Defensive (-0.23%) and Healthcare (-0.22%) sectors led the laggards lower. At the same time, SPY gained 0.14%, DIA gained 0.18%, and QQQ lost just 0.05%.  VXX fell 1.30% to close at 11.36 and T2122 dropped but again remains in its overbought territory to close at 84.86.  At the same time, 10-year bond yields rose to 4.42% and Oil (WTI) gained just under one percent to close at $79.97 per barrel.  So, Friday did not see any significant moves but the larger-cap index ETFs (especially the DIA) continued its march North while QQQ did really just pause indecisively.  This all happened on below-average volume across all three major index ETFs.

The major economic news scheduled for Friday was limited to the April US Leading Economic Indicators Index, which fell more than expected at -0.6% (compared to a forecast and March reading of -0.3%).

In Fed news, on Friday, Fed Chair Powell tested positive for COVID-19 Thursday and said he will be working from home and isolating for the next week or so. (He delivered his Sunday Georgetown Law School commencement address via prerecorded video.)

In stock news, on Friday, MSFT asked hundreds of employees in China (working on both machine learning and cloud computing) to relocate outside China amid increases in China-US trade tensions.  Later, BA delayed the launch of its first-crewed Starliner rocket.  This is the third delay of the launch due to a helium leak and will now take place no sooner than May 25.

In stock legal and governmental news, on Friday, the NLRB announced that the AL plant of MBGAF (Mercedes Benz) voted against unionizing by 56%-44%.  At the same time, C was sued for racial discrimination over its policy of waiving its ATM fees for the customers of minority-owned banks at C ATMs in the state of FL.  (This suit was filed by the same right-wing group which has legally challenged DEI programs at companies across the country.)

Overnight, Asian markets were nearly green across the board.  Only Thailand (-0.29%) was in the red.  Meanwhile, Japan (+0.73%), Malaysia (+0.67%), and South Korea (+0.64%) led the region higher on broad, but modest gains. In Europe, we see a similar picture taking shape at midday with only three of the 15 exchanges in the red.  The CAC (+0.54%), DAX (+0.45%), and FTSE (+0.27%) lead the region higher in early afternoon trade.   In the US, as of 7:30 a.m., Futures are pointing toward a very modest green start to the day.  The DIA implies a +0.07% open, the SPY is implying a +0.17% open, and the QQQ implies a +0.27% open at this hour.  At the same time, 10-year bond yields are down to 4.416% and Oil (WTI) is off a third of a percent to $79.77 per barrel in early trading.

The major economic news scheduled for Monday is limited to a number of fed speakers.  First, Fed Chair Powell speaks Sunday afternoon.  Then Monday, Fed members Bostic (8:45 a.m.), Vice Chair Barr and member Waller (both at 9 a.m.), and Bostic again (7 p.m.) speak.  The major earnings reports scheduled for before the open is limited to QFIN, LI, and RYAAY.  Then, after the close, JHX, KEYS, NDSN, PANW, TCOM, and ZM report.

In economic news later this week, on Tuesday, we get API Weekly Crude Oil Stocks and many Fed speakers (Kroszner, Williams, Bostic, Vice Chair Barr, Bostic, and Mester).  Treasury Sec. Yellen also speaks.  Then Wednesday, April Existing Home Sales, EIA Weekly Crude Oil Inventories, and FOMC Meeting Minutes are reported.  On Thursday, we get Building Permits, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, April New Home Sales, Fed Balance Sheet.  Fed member Bostic also speaks again.  Finally, on Friday, April Core Durable Goods, April Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations are reported and Fed member Waller speaks.

In terms of earnings reports later this week, on Tuesday, we hear from AS, AZO, EXP, LOW, M, OCFT, XPEV, ZIM, MOD, SKY, TOL, URBN, VSAT, and XP.  Then, Wednesday, ADI, DY, GOGL, HOV, WOOF, PDD, TGT, VIPS, WSM, BBAR, SQM, ENS, PLUS, SUPV, NVDA, SNOW, SNPS, TBBB, and VFC report.  On Thursday, we hear from ATAT, BILI, BJ, BEKE, MDT, NTES, PSNY, RL, TD, TITN, CVCO, DECK, INTU, ROST, and WDAY.  Finally, on Friday, BAH reports.

So far this morning, ULS beat on both the revenue and earnings lines.  Meanwhile, RERE beat on revenue while missing on earnings.  On the other side, LI missed on revenue while beating on earnings.  However, QFIN missed on both the top and bottom lines.

In miscellaneous news, the US military pier in Gaza is completed and began operation on Friday.  Humanitarian aid will travel through Cypress, then a mid-Mediterranean trans-shipment point and the smaller ships will deliver to the pier.  The pier will deliver 90 truckloads of aid per day initially with plans to reach a maximum of 150 trucks per day within months.  (At maximum, this would be nearly as much as a open border crossing.)  Meanwhile, AI industry leader OpenAI, eliminated its “AI Safety” (officially called the Superalignment Team) less than a year after creating the team to study and ensure AI risks/threats are controlled.  In addition, OpenAI’s cofounder and chief research scientist, who said “safety culture and processes have taken a backseat to profits” on his way out.  Elsewhere, Bloomberg reported Friday that childcare for two children now exceeds the average rent by 25% IN EVERY STATE.

On Saturday, Bloomberg reported that the US beef cattle supply is at its lowest level since 1961.  The report said Dairy farmers are not just breeding for herd replacement, but are now cross-breeding Dairy cows with beef cattle (artificially).  This allows Dairy farmers to ship calves off to feed-out and slaughter. (A big windfall for an industry that just last summer had to dump milk due to a surplus of supply.) Elsewhere on Saturday, China announced $42 billion to help fix its property crisis.  In addition, it will prop up its Real Estate Sector by relaxing mortgage rules and providing guidance to local and provincial governments to buy up unsold homes to be turned into affordable housing.  In geopolitical news, the US military announced that Yemeni Houthi rebels hit a Greek-owned oil tanker with a missile early Saturday.  (Interestingly, the ship was recently docked in Russia and was headed to China with its cargo.)  The ship lost propulsion and has some flooding, but no casualties were suffered and the ship was later able to get back underway under its own power.  The attack came hours after the Houthi claimed to have shot down a US MQ-9 Reaper drone.  Elsewhere, a helicopter that was carrying the hard-liner Iranian President Raisi as well as Iranian Foreign Minister Amirabdollahain made what was called a “unexpected and hard landing” (crashed) near the mountainous border of Iran, Armenia and Azerbaijan.  Heavy fog and cold slowed the search effort.  However, two people from the helicopter have been in contact with rescuers.  On Monday, Iran announced that both men died in the crash.  This will unsettle oil markets and put many eyes on the Middle East, the succession election in 50 days (a caretaker government is already in place), and the impact on Israeli and Saudi relations.

With that background, it looks as if the Bulls are trying to cautiously edge higher in the premarket. All three major index ETFs opened up slightly and have printed small, white-bodied candles so far in the early session. All three remain at or very near the all-time highs from last week and are obviously well above their T-lines (8emas). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish. And the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, as mentioned, the SPY, DIA, and QQQ are all well above their T-lines and probably need more rest. The T2122 indicator pulled back a bit Friday but still remains in the overbought area. So, again, more pause or pullback are probably needed for a healthy rally if for nothing else. With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, nine of the 10 are in the green at this point this morning with only APPL (-0.45%) dragging on the QQQ. Meanwhile, the biggest dog of them all, NVDA (+1.41%) is out front pulling the market higher during the early session.

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 flat on Thursday.  SPY opened 0.02% higher, DIA opened up 0.11%, and QQQ opened down 0.02%. From there, all three major index ETFs rallied steadily, reaching the highs of the day at 11:10 a.m.  At that point, all three sold off more slowly, recrossing the open and reaching a low at 2:20 p.m.  Then SPY and QQQ bounced modestly for 30 minutes before selling off again.  Meanwhile, DIA bounced with more strength but then also sold off harder. In all three major index ETFs, the biggest candle of the day was a sharp drop the last 5 minutes.  This action gave us black, inverted Hammer type candles (not Shooting Stars because there was no gap higher) in all three of those ETFs.  This gave us new all-time highs, but not new all-time high closes in the SPY, DIA, and QQQ.  This happened on less than average volume in all three.

On the day, eight of the 10 sectors were in the red with Basic Materials (-0.59%) and Industrials (-0.57%) out front leading the majority of sectors lower.  Meanwhile, the Consumer Defensive (+1.12%) sector was the biggest mover and held up far better than any other sector.  At the same time, SPY lost 0.21%, DIA lost 0.02%, and QQQ lost 0.20%.  VXX was flat to close at 11.51 and T2122 dropped but remains well into its overbought territory to close at 88.64.  At the same time, 10-year bond yields rose to 4.379% and Oil (WTI) gained 0.84% to close at $79.29 per barrel.  So, Thursday was a mostly “dead money” day with a modest morning move higher followed the a slightly stronger selloff in the afternoon. 

The major economic news scheduled for Thursday included April Building Permits, which came in lower than expected at 1.440 million (compared to a forecast of 1.480 million and the March 1.485 million reading).  On the start side, April Housing Starts were up but lower than predicted at 1.360 million (versus the forecast of 1.420 million but up from March’s 1.287 million value).  At the same time, the April Import Price Index was up sharply to +0.9% (compared to a +0.2% forecast but up less from the March +0.6% reading).  The other side of trade, the April Export Price Index, was also higher than anticipated at +0.5% (versus a +0.4% forecast and well up from March’s +0.1% value).  On the Unemployment front, Weekly Initial Jobless Claims were a bit higher than predicted at 222k (compared to a 219k forecast but also down from last week’s 232k reading).  As far as ongoing claims are concerned, Weekly Continuing Jobless Claims were higher than expected at 1,794k (versus a 1,780k forecast and 1,781k number the prior week).  Meanwhile, the Philly Fed Mfg. Index came in lower than anticipated at 4.5 (compared to a +7.7 forecast and down significantly from April’s +15.5 number).  Later, April Industrial Production (month-on-month) was lower than predicted at 0.0% (versus a +0.1% forecast and March reading).  After the close, the Fed Balance Sheet was down $49 billion from $7.353 trillion to $7.304 trillion.

In Fed speak news, on Thursday, NY Fed President Williams acknowledged and said that he welcomes the CPI data. He also discounted the idea of any rate hike. However, he also said wants to see more before any cut in rates.  Williams said, “I don’t see any need to tighten monetary policy today … Monetary policy is restrictive and is in a good place.”  Later, Cleveland Fed President Mester echoed other FOMC comments saying, “I now believe that it will take longer to reach our 2% goal than I previously thought.”  She added, “We will need to accumulate further data over the coming months to have a clearer picture of the inflation outlook (before cutting rates).”  Later, Atlanta Fed President Bostic said he sees the ongoing disinflation leading to a potential rate cut.  However, he said nothing was locked in, there was no timetable, and many things could happen. Bostic said, “one data point is not a trend, and said there are a number of different scenarios that could yet play out on the inflation front.” 

After the close, AMAT, CPRT, DXC, GLOB and TTWO all reported beats on both the revenue and earnings lines.  Meanwhile, FLO missed on both the top and bottom lines.

In stock news, on Thursday, SPR (a primary supplier to BA) announced it is laying off 450 employees in the next few weeks.  (This is about 3.6% of the company’s workforce as of year-end 2023.)  Later, after the close, RDDT announced a partnership deal with OpenAI.  The deal will allow OpenAI to train its AI models (like ChatGPT) on content from the Reddit platform.

In stock legal and governmental news, on Thursday, the US Dept. of Justice took the next step in easing restrictions on marijuana by proposing the rule that would reclassify that drug as a “class III” (as opposed to its current “class I” category).  The statement said that the FDA had found credible evidence marijuana can be beneficially medically uses and had no safety concerns that should prohibit medical use.  However, class I drugs (like heroin and LSD), pose major safety risks and have no proven medical uses.  Marijuana stocks soared on the news, even though it has been expected since April.  The announcement (rule proposal) begins 60 days of public comment.  Later, the US Supreme Court ruled 7-2 that the CFPB is not funded unconstitutionally.  This kills one attack on federal agencies by an extreme conservative group, famous for challenging agencies, federal regulations, and private diversity programs.  (This is a very significant ruling because the Fed, FDIC, Social Security, and Medicare/Medicaid could have all potentially been unfunded had the decision gone the other way.)  At the close, the FDA approved AMGN’s treatment for the most-deadly form of lung cancer.

Overnight, Asian markets were mixed but leaned toward the green side again as eight of the 12 exchanges in the region were positive.  Shenzhen (+1.10%) and Shanghai (+1.01%) were by far the biggest gainers while South Korea (-1.03%) was by far the biggest loser on the day.  Meanwhile, in Europe, markets were mostly in the red.  The CAC (-0.34%), DAX (-0.38%), and FTSE (-0.37%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a second-straight flat open.  The DIA implies a dead flat unchanged open, the SPY is implying a +0.01% open, and the QQQ implies a +0.08% open at this hour.  At the same time, 10-year bond yields are up a bit to 4.398% and Oil (WTI) is on the red side of flat at $79.09 per barrel in early trading.

The major economic news scheduled for Friday is limited to the April US Leading Economic Indicators Index (10 a.m.).  We also hear from Fed member Waller (10:15 a.m.) and Daly (12:15 p.m.).  Major earnings reports scheduled for before the open is limited to HTHT.  There are no reports scheduled after the close. 

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

In miscellaneous news, the SEC (in a hat-tip to the efficiency of government) voted unanimously to update data breach rules for brokers, investment advisors, and other investment companies.  In vote, approved rule changes first proposed under the Clinton administration in 2000.  The new rules will require the regulated firms to have and maintain data breach programs to detect, respond to, and recover from cybercrime that accesses their customer’s personal information.  The rule also creates mechanism for companies to share attack data.  However, rather than be hasty, regulated firms now have between 18 and 24 months to come into compliance.  (So, it only took 27 years to get this done…unless the 2025 administration reverses the decision.)

In late-breaking news, the UK Competition and Markets Authority announced the MSFT and Mistral AI partnership “does not qualify” for investigation under British antitrust law.  This avoids a widely-speculated hurdle for the deal.  Elsewhere, after antitrust regulators nixed the acquisition of Figma (cloud-based design software) by ADBE, Figma has told employees they can sell their Figma shares at a company valuation of $12.5 billion. (That is up 25% from the valuation Figma used in fundraising in 2021.)  Finally, online retailer W announced it will open a 150k-square-foot brick-and-mortar store in the Chicago area.

With that background, it looks as if the market is continuing Thursday’s indecisive action, at least early. All three major index ETFs opened the premarket near flat and have strayed little since then in the early session. It is worth noting that all three are printing a white-body candle in the early session, but none of those bodies are significant enough to show any real strength. With that said, all three remains very near the all-time highs from early Thursday and are obviously well above their T-line (8ema). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish. And the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, as mentioned, the SPY, DIA, and QQQ are all well above their T-lines, but only QQQ might be considered too extended. The T2122 indicator pulled back a bit Thursday but remains well into the overbought area. So, more pause or pullback are probably needed, if for nothing else than just to take profits and gather a new group of Bulls (FOMO money?) for a next wave higher (if that is the direction). With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, seven of the 10 are in the green at this point this morning with only META (-0.41%) and NVDA (-0.30%), which is the biggest dog of all, really dragging on the QQQ. Keep in mind that its Friday, pay day, and time to prepare your account for the weekend news cycle.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

🎯 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 Bulls’ Day from open with markets popping and following through on slightly better than expected CPI data.  (It was actually much better than was expected after Tuesday’s worse than expected PPI data.)  SPY gapped up 0.49%, DIA gapped up 0.42%, and QQQ gapped up 0.57%.  From there, all three major index ETFs followed through with a steady rally that lasted all day.  (DIA was a shallower rally than the other two, but steadily gained all the same.)  This action gave us gap-up, large, white-bodied candles in all three.  It is worth noting that all three printed new all-time highs and also closed at new all-time high closes.  Obviously, this means all three remain well above their T-lines (8emas).  This happened on less-than-average volume in the SPY, DIA, and QQQ.

On the day, eight of the 10 sectors were in the green with Technology (+1.99%) way out in front leading the gainers higher.  Meanwhile Energy (-0.26%) was the laggard and only appreciable losing sector.  At the same time, SPY gained 1.23%, DIA gained 0.94%, and QQQ gained 1.56%.  VXX dropped 3.92% to close at 11.52 and T2122 spiked up into the top end of its overbought territory to close at 95.44.  At the same time, 10-year bond yields fell sharply to 4.342% and Oil (WTI) gained another 1.1% to close at $78.88 per barrel.  So, Wednesday was a big win for the Bulls surging higher from the premarket release of CPI data and continuing strong all day.  (There were no even appreciable breaks in the all-day rally).  With that said, having achieved the new all-time highs, markets are extended now.

The major economic news scheduled for Wednesday included April Core CPI (month-on-month), which came in exactly as expected at +0.3% (compared to a +0.3% forecast and down from March’s +0.4% reading).  On an annual basis, April Core CPI was also down exactly as expected at +3.6% (versus a +3.6% forecast and March’s +3.8% value).  On the headline side, April CPI (month-on-month) was better than was expected at +0.3% (compared to a +0.4% forecast and +0.4% March reading).  On the annualized basis, April CPI was in line with predictions at +3.4% (versus the +3.4% forecast and down from March’s +3.5% value).  At the same time, April Core Retail Sales were just as anticipated, down at +0.2% (compared to a +0.2% forecast and far down from March’s +0.9% reading).  On the headline side, April Retail Sales were flat at +0.0% (well down from the +0.4% forecast and March’s +0.6% value).  Meanwhile, the NY Empire State Mfg. came in lower than expected at -15.60 (versus the -9.90 forecast and even from the April -14.30 reading).  Later, March Business Inventories were better (lower) than predicted at -0.1% (compared to a 0.0% forecast and well below the February +0.3% value).  At the same time, March Retail Inventories were also better (lower) than expected at -0.2% (versus the -0.1% forecast and February reading).  On the oil front, EIA Weekly Crude Oil Inventories showed a much larger than expected drawdown of 2.508 million barrels (compared to a 0.400-million-barrel drawdown forecast and even from the previous week’s 1.362-million-barrel drawdown).

In Fed speak news, on Wednesday, Minneapolis Fed President Kashkari added his voice to the “higher for longer” FOMC chorus.  Kashkari said, “The biggest uncertainty in my mind is how much downward pressure is monetary policy putting on the economy…that’s an unknown.”  “That (uncertainty) tells me we probably need to sit here for a while longer, until we figure out where underlying inflation is headed.”  He continued, “It seems like there is more resilience in the economy than I had expected.” 

After the close Wednesday, BKKT, CSCO, and CPA all reported beats on both the revenue and earnings lines. 

In stock news, on Wednesday, NFLX announced that its ad-supported subscription tier had reached 40 million users.  (That is up from 5 million one year ago.)  NFLX also said that ad-tier subscribers account for more than 40% of all new sign-ups.  (NFLX has 270 million overall subscribers.) Elsewhere, it was made public that BRKB has been buying CB stock “secretly” over the last two quarters and now holds a $6.7 billion stake with apparent intentions of buying more of the insurer.

Overnight, Asian markets were green across the board.  New Zealand (+1.75%), Australia (+1.65%), Hong Kong (+1.59%), and Japan (+1.39%) led the region higher.  However, in Europe, markets are much more mixed with only six of 15 bourses in the green at midday.  The CAC (-0.39%), DAX (-0.17%), and FTSE (-0.23%) are leading the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are now pointing toward an open just on the green side of flat.  The DIA implies a +0.05% open, the SPY is implying a +0.07% open, and the QQQ implies a +0.15% open at this hour.  At the same time, 10-year bond yields are down to 4.34% and Oil (WTI) is just on the red side of flat $78.58 per barrel in early trading.

The major economic news scheduled for Thursday includes April Building Permits, April Housing Starts, April Import Price Index, April Export Price Index, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, and Philly Fed Mfg. Index (all at 8:30 a.m.), April Industrial Production, (9:15 a.m.), and Fed Balance Sheet (4:30 p.m.). We also hear from Fed members Vice Chair Barr (10 a.m.), Harker (10:30 a.m.), Mester (11:30 a.m.), and Bostic (3:50 a.m.).  Major earnings reports scheduled for before the open include BIDU, DE, IQ, JD, NICE, UA, UAA, and WMT.  Then, after the close, AMAT, CPRT, DXC, FLO, GLOB, and TTWO report. 

In economic news later this week, on Friday, April US Leading Economic Indicators Index is reported and we hear from Fed member Waller.

In terms of earnings reports later this week, on Friday, HTHT reports.

So far this morning, WMS, BIDU, DE, DDS, JD, NICE, and WMT all reported beats on both the revenue and earnings lines.  (WMT is of note, specifically reporting gains in online sales and noting an increase of higher-income shoppers.)

In late-breaking news, the European Commission announced META is now under investigation over whether or not the Facebook and Instagram platforms are built to cause addiction related to child safety risks.  (This action specifically noted the “rabbit-hole effect” built into content feeds and algorithms.  This being the case, it is hard to believe that GOOGL is not next in line related to YouTube with TikTok and the former Twitter to follow.)  

With that background, it looks as if the market wants to follow-through on Wednesday’s blowout rally, but is just too uncertain. All three major index ETFs opened the premarket higher. However, all three have also put in flat, indecisive candles since the start of the early session. (Perhaps traders are waiting on Jobless Claims?) As mentioned above, all three are at new all-time highs and well above their T-line (8ema). So, the short-term trend remains very bullish. Meanwhile, the mid-term is also bullish. And the longer-term market remains very Bullish as all three major index ETFs have returned to “fresh air” with no overhead resistance. In terms of extension, the SPY, DIA, and QQQ are all now extended above their T-lines. The T2122 indicator has also pulled back up well into the overbought area. So, a pause or pullback (at the least) are due, just to take profits and gather a new group of Bulls (FOMO money?) for a next wave higher. With that said, we have to remember that markets can, and sometimes do, remain overextended longer than we can stay solvent betting on a turn. In short, don’t predict, follow. With regard to those 10 big dog tickers, nine of the 10 are in the green at this point this morning with only META (-0.51%) falling on its EU investigation news. Remember, there will be 4-5 Fed members speaking today. So, while they tend to follow the party line, any of them could cause a knee-jerk in the market.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

🎯 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 gapped up modestly on Monday.  The SPY opened 0.33% higher, DIA gapped up 0.33%, and QQQ gapped up 0.44%.  From that point, the two large-cap index ETFs slowly faded the gap recrossing it by about 11:30 a.m.  Meanwhile, QQQ immediately recrossed the gap (by 9:50 a.m.). After the recross, all three ground sideways in a tight range until 1 pm.  At that point, we got a 15-minute selloff before the sideways grind in a tight range resumed.  This action gave us black body candles in all three major index ETFs.  The QQQ could be called a Black Hanging Man while the DIA printed a Bearish Engulfing candle.  All three remained well above their T-line (8ema).  This all happened on below-average volume in all three (far-below-average in the SPY and QQQ). 

On the day, five of the 10 sectors were in the green with Consumer Cyclical (+0.65%) leading the gainers higher while Industrials (-0.39%) was the laggard sector.  At the same time, SPY gained 0.01%, DIA fell 0.18%, and QQQ gained 0.23%.  VXX gained 1.08% to close at 12.19 and T2122 fell to just outside the lower edge of its overbought territory to close at 75.00.  At the same time, 10-year bond yields fell slightly to 4.487% and Oil (WTI) gained another 1.19% to close at $79.19 per barrel.  So, Monday was a gap-up, trade down, and then just grind sideways ahead of Tuesday’s PPI data.  One notable thing that happened is that “Meme stocks” trading came back in vogue.  GME gapped up 52%, was up as much as 120% at one point, traded in a 55% range, and it closed up 74 percent.  Following suit, AMC gapped up 20%, traded in an 86% range, and ended the day up 78.35%.

The major economic news scheduled for Monday was limited to the NY Fed’s 1-Year Consumer Inflation Expectations, which came in at 3.30% (compared to a April’s 3.00% reading).  

After the close, NATL reported beats on both the revenue and earnings lines.  At the same time, TLNE missed on revenue while beating on earnings.  On the other side, AHR beat on revenue while missing on earnings.  However, STNE missed on both the top and bottom lines.

In stock news, on Monday, as expected OpenAI released a new AI model called GPT-4o.  The new model reportedly is capable of realistic voice conversation and able to interact across text and vision.  (This comes a day ahead of GOOGL’s developer Conf. where that company is expected to announce its own new AI tools.)  Giving GPT-4o a search engine-like capability to compete directly with Google Search is the next step according to Reuters reports.  Later, GM announced its Cruise autonomous vehicles have resumed testing on public roads with its robotaxis in AZ.  (GM had suspended all operations in October after one of its robotaxis dragged a pedestrian, who was already knocked down by a human-driven car, in San Francisco.)

In stock legal and governmental news, on Monday, AAL, DAL, UAL, JBLU, HA, ALK and an airline industry group files suit against the US Dept. of Transportation alleging the agency’s new rule requiring airlines to disclose their fees in addition to just airfares is beyond the department’s authority. At the same time, the 5^th-Circuit Court of Appeals dismissed a Republican-led State lawsuit that had sought to block the SEC’s requiring investment funds to categorize and disclose their proxy votes on issues, including ESG matters.  (The three-judge panel concluded that none of the states had any standing to challenge the agency’s rules over listed company reporting.)  Later, META was sued by RFK Jr. and his superPAC, claiming Facebook was guilty of election interference for blocking a political ad.  (META claims the blocking, which lasted less than two days was a result of a mistake and was quickly restored as soon as the issue was found.)

Overnight, Asian markets leaned toward the green side with only five of the region’s 12 exchanges in the red.  Taiwan (+0.61%), India (+0.51%), and Japan (+0.46%) led the region higher on the day.  Meanwhile, in Europe, the bourses are more evenly split with seven green and eight in the red at midday on very modest moves.  The CAC (-0.06%), DAX (-0.18%), and FTSE (+0.06%) are typical of a region likely waiting on US data to drop.  In the US, as of 7:30 a.m., Futures are just on the green side of flat.  The DIA implies a +0.09% open, the SPY is implying a +0.05% open, and the QQQ implies a +0.02% open at this hour.  At the same time, 10-year bond yields are just on the red side of flat at 4.479% and Oil (WTI) is likewise down slightly at $78.99 per barrel in early trading. 

The major economic news scheduled for Tuesday includes April Core PPI and April PPI (both at 8:30 a.m.), and API Weekly Crude Stocks (4:30 p.m.).  We hear from Fed Governor Cook (9:10 a.m.) and Fed Chair Powell (10 a.m.).  Major earnings reports scheduled for before the open include BABA, BKKT, CGAU, HD, IGT, MNSO, ONON, SE, SONY, and TCEHY.  Then, after the close, NXT and NU report. 

In economic news later this week, on Wednesday, April Core CPI, April CPI, April Core Retail Sales, April Retail Sales, NY Empire State Mfg., March Business Inventories, March Retail Inventories, and EIA Weekly Crude Oil Inventory are reported.  We also hear from Fed member Bowman speaks.  On Thursday, we get April Building Permits, April Housing Starts, April Import Price Index, April Export Price Index, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, April Industrial Production, Fed Balance Sheet and we hear from Fed members Vice Chair Barr, Mester, and Bostic.  Finally, on Friday, April US Leading Economic Indicators Index is reported and we hear from Fed member Waller.

In terms of earnings reports later this week, on Wednesday, ARCO, DOLE, CSCO, CPA, GRAB, and ZTO repot.  On Thursday, we hear from BIDU, DE, IQ, JD, NICE, UA, UAA, WMT, AMAT, CPRT, DXC, FLO, GLOB, and TTWO.  Finally, on Friday, HTHT reports.

So far this morning, HBM, IGT, and ONON reported beats on both the revenue and earnings lines.  Meanwhile, HD and MNSO missed on revenue while beating on earnings.  On the other side, BABA beat on revenue while missing on earnings.  However, CGAU and SE missed on both the top and bottom lines.

In miscellaneous news, on Sunday, Chinese April Inflation numbers (CPI up 0.1% while PPI fell 2.5%) were released which, in turn, boosted Oil on Monday.  Markets interpreted the Chinese data as a recovery in progress…albeit a slight recovery so far.  Elsewhere, the Federal Energy Regulatory Commission (FERC) voted to overhaul the national electrical grid system.  The new rules are expected to expand transmission (by defining how to cover the cost of transmission), encourage more renewable energy, and require regional planning and cost allocations which have been woefully absent for decades.  The changes are expected to improve the resilience of the grid by allowing more transmission between regions, as needed (reducing brow and blackouts). 

With that background, it looks as if the market is waiting on PPI data (or maybe even waiting on Wednesday’s CPI data) before committing one way or the other. All three major index ETFs are within spitting distance of flat and on either side at this moment. In addition, all three have printed very indecisive candles so far in the early session. However, all three major index ETFs do remain above their T-line (8ema). So, the short-term trend remains bullish. Meanwhile, the mid-term is modestly bullish again now. The longer-term market remains very Bullish as all three major index ETFs have returned within a percent (give or take) of all-time highs. In terms of extension, the SPY, DIA, and QQQ are all back near above their T-lines. The T2122 indicator has also pulled back to just outside the overbought area. So, both sides have room to run, if they can gain the momentum to do it. However, the Bears have more slack to play with in that regard. In terms of those 10 big dog tickers, eight of the 10 are in the red this morning with only INTC (+0.69%) appreciably in the green. Remember, regardless of what knee-jerk we may get from PPI data, Fed Chair Powell speaks at 10 a.m. and he always has the ability to reverse markets or cause volatility. Also bear in mind, CPI data comes tomorrow and traders may be waiting on that number more than PPI.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

🎯 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