Asian markets experienced a positive trend last night, buoyed by the previous week’s tech rally on Wall Street. Despite the closure of Tokyo’s market for a national holiday, other key indexes saw notable gains. Sydney’s S&P/ASX 200 rose by 0.8%, South Korea’s Kospi surged 1.2%, Hong Kong’s Hang Seng edged up 0.5%, and the Shanghai Composite increased by 0.8%. The optimism was tempered by caution as investors await the Federal Reserve policy meeting later this week.
European markets opened on a positive note this morning, continuing the upward momentum from the previous sessions. The FTSE 100 index in the UK opened 50 points higher at 8,124, while Germany’s DAX was up 62 points at 17,980. France’s CAC saw an increase of 38 points, opening at 8,049, and Italy’s FTSE MIB rose by 185 points to 33,857. This optimistic start is attributed to the positive closure of the tech rally on Wall Street and the anticipation of corporate releases from major companies like L’Oreal, TotalEnergies, and NatWest.
Economic Calendar
Earnings Calendar
Notable reports for Monday before the bell include DPZ, BEN, JKS, ON, RVTY, & SOFI. After the bell reports include AMKR, ACGL, BRX, CHGG, COUR, CCK, CVI, PLOW, ESI, EG, FFIV, FLS, HLIT, KFRC, LSCC, LTC, MED, MSTR, NXPI, PARA, PCH, QGEN, RMBS, SANM, SBAC, ST, SUI, WELL, WWD, & YUMC.
News & Technicals’
In Monday morning’s trading session in Asia, the Japanese yen experienced a notable depreciation, reaching a level of 160 against the U.S. dollar. This weakening trend has been consistent since the Bank of Japan’s decision to terminate its negative interest rate policy back in March, with the yen hovering around the 150 mark or lower when paired with the dollar. Despite this downward pressure, Japanese authorities have consistently issued warnings against precipitous fluctuations in the currency’s value. However, as of yet, they have refrained from making any definitive statements or taking concrete actions to support the yen, leaving market participants watching closely for any signs of intervention.
Over the weekend, the geopolitical landscape was marked by significant developments. The United Nations Secretary-General Antonio Guterres highlighted the transition into a new multipolar era characterized by the highest level of major power competition in decades. He emphasized the growing challenges such as complex conflicts, potential nuclear threats, and the climate emergency, all exacerbated by the ongoing tensions resulting from Russia’s invasion of Ukraine. Guterres’ remarks were part of his “New Agenda for Peace,” which calls for a renewed commitment to multilateralism and collective action to address these pressing global issues.
The financial world is poised on the edge of its seat as the U.S. Federal Reserve gears up for its latest interest rate announcement this Wednesday. This highly-anticipated update comes on the heels of a U.S. inflation report that delivered figures higher than many had forecasted last Friday. While the consensus among market analysts is that the Fed will hold the borrowing cost steady, investors are nonetheless preparing to scrutinize every word from Chair Jerome Powell’s post-announcement press conference. The market’s reaction to this delicate balance of anticipation and prediction could set the tone for economic trends in the coming months.
The hope for a continued tech rally coupled with worry of stubron inflation, bond yields and the pending FOMC is likely to keep traders on edge this week so look for continued big point swings as the bulls and bears battle for domance near the overhead price and technical resistance.
Markets diverged at the open Wednesday. SPY opened 0.18% higher, DIA opened down just 0.04%, and QQQ gapped up 0.71%. However, at that point all three major index ETFs sold off modestly with DIA reaching its low of day at 11:50 a.m., QQQ reaching that low level by 12:35 p.m., and SPY doing so at 12:50 p.m. From there, the SPY and QQQ meandered back-and-forth between the open and lows the rest of the day. DIA did something similar, but rallied to a new high of the day at 2 p.m. This action gave us black-bodied, indecisive, Spinning Top candles in all three major index ETFs. QQQ crossed above its T-line (8ema), so all three closed above their T-lines after a retest from above during the day. This all happened on below-average volume in all three, with well-below-average volume on the SPY.
On the day, six of the 10 sectors were in the red with Industrials (-0.72%) out in front leading markets lower. At the same time, Consumer Defensive (+0.49%) and Utilities (+0.42%) held up better than the other sectors. Meanwhile, SPY lost 0.04%, DIA lost 0.15%, and QQQ gained 0.34%. VXX fell another 1.02% to close at 13.57 and T2122 climbed again dropped back to the center of its mid-range at 51.16. 10-year bond yields rose to 4.646% and Oil (WTI) was down 0.56% to close at $82.89 per barrel. So, Wednesday was an indecisive day. It could be seen as rest after a couple decent days of gained or maybe as the relief rally petering out. bullish day with DIA breaking up out of its consolidation while SPY and DIA turned higher. However, the downtrend has only been broken in the DIA with the two broader index ETFs still below that falling line. None of the three has put in a higher low yet. So, for now this must be considered a relief rally at the moment.
The major economic news scheduled for Wednesday included March Core Durable Goods Orders came in lower than expected at +0.2% month-on-month (compared to a forecast of +0.3% but still up from February’s +0.1%). At the same time, March Durable Goods Orders were stronger than predicted at +2.6% month-on-month (versus a +2.5% forecast and well above the February +0.7% value). Later, Weekly EIA Crude Oil Inventories were far lower than anticipated, drawing down 6.368 million barrels (compared to a +1.600 million forecast and well down from the prior week’s +2.735 million barrels).
After the close, ALGN, NLY, AR, ASGN, CACI, CCS, CLS, CMG, CHDN, CYH, EHC, F, ICLR, KALU, LRCX, LSTR, MTH, MEOH, META, MOH, ORLY, PLXS, ROL, SLM, SEIC, NOW, STC, TER, TX, TYL, URI, UHS, WCN, WU, and WHR all reported beats on both the revenue and earnings lines. Meanwhile, AGI, BMRN, CHX, DBOEY, IBM, SNBR, and WM missed on revenue while beating on earnings. On the other side, CHE, CP, NBR, and RJF all beat on revenue while missing on earnings. Unfortunately, GGG, FAF, KNX, and OII missed on both the top and bottom lines.
In stock news, on NVDA announced it had agreed on a deal to acquire Run:ai a cloud workload management software provider. (Finances were not released, but reports said the deal was around $700 million.) At the same time, HUM withdrew its forward guidance, citing disappointing Medicare reimbursement rates (but not mentioning its hack that shut down operations at it CHNG unit). Later, BAC shareholders rejected a proposal to split the CEO and Chairman roles. At the same time, LUV flight attendants ratified their new union contract, with 81% voting to approve. The contract gives them an immediate 22% raise and 3% annual raises until May 2028. Later, the Wall Street Journal reported that WHR will cut 1,000 jobs globally (out of 59,000 employed). No timetable was provided. At the same time, Reuters reported that BX is buying the” Tropical Smoothie Café” restaurant chain in a deal that sources say will be for about $2 billion. Tropical Smoothie currently has 1,400 cafes. Later, SPWR announced it was cutting 1,000 jobs in coming weeks, mostly from its direct sales channel, as part of a restructuring. After the close, Bloomberg reported that BHP is considering a buyout bid for AAUKF. (AAUKF has a $36.71 billion market cap.) Also after the close, F disclosed that is lost $1.3 billion on its electric vehicles, which is $132,000 for each of the 10,000 electric vehicles it sold in Q1. (That 10,000 was down 20% from the number it sold in Q1 2023.)
In stock legal and governmental news, on Wednesday, the US Dept. of Transportation announced finalized rules requiring upfront disclosure of airline fees and immediate refunds for canceled flights, delayed (more than 12 hours) baggage delivery, and inoperative services. Later, the US Dept. of Justice announced it will decide in May whether BA violated the agreement (consent decree) the company made to avoid prosecution over the 2018 and 2019 737 MAX crashes. This came as family members of the crash victim families met with DOJ officials Wednesday to urge prosecution after the FAA and DOT investigations into the mid-air loss of a door plug revealed broad and deep quality issues at BA stemming back to the time of that agreement. At the same time, Bloomberg reported that the FDIC is in talks with buyers to sell FRBK which was seized in 2023. Later, the USAF chose two unlisted finalists (General Atomics and Anduril) to compete for its unmanned combat aircraft design, production, and testing. (This means that BA, LMT, and NOC were eliminated and if they wish to push toward somehow overturning the decision, they would have to foot their own bills for all efforts past today on the project.) A final choice and production decision is scheduled for 2026. At the same time, a US appeals court revived a lawsuit against Whole Foods (AMZN) which alleges the company illegally fired an employee for refusing to remove her “Black Lives Matter” facemask during covid restrictions. The suit alleges she was fired over racism. The court ruled 3-0 that the company had “arguably deviated” from its internal disciplinary process in firing the worker. After the close, a TSLA shareholder who successfully sued to have CEO Musk’s $56 billion pay package thrown out filed a motion with the Delaware court who made that ruling, asking that the court prevent TSLA from dodging the ruling by moving its headquarters to TX.
Overnight, Asian markets were evenly mixed but leaned to the downside on strength of moves. Japan (-2.16%), South Korea (-1.76%), and Taiwan (-1.36%) led the region lower. In Europe, markets are more firmly red at midday with only four of 15 bourses showing gains at the half-way point. The CAC (-0.93%), DAX (-0.75%), and FTSE (+0.62%) lead the region on volume, as always, in early afternoon trade. Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a gap down to start the day. DIA implies a -0.58% open, the SPY is implying a -0.68% open, and QQQ implies a -1.04% open at this hour. At the same time, 10-year bond yields are at 4.65% and Oil (WTI) is just on the green side of flat at $82.92 per barrel in early trading.
The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, and March Retail Inventories (all at 8:30 a.m.), March Pending Home Sales (10 a.m.), and the Fed Balance Sheet (4:30 p.m.). The major earnings reports scheduled for before the open include AOS, ADT, ALFVY, ALLE, MO, AAL, HOUS, AIT, ARCH, AMBP, ABG, AZN, BFH, BMY, BC, CARR, CAT, CBZ, CX, CHKP, CMS, CMCSA, CFR, DAR, DOV, DOW, DTE, EQNR, FCNCA, FCFS, FCN, GTX, GEV, HOG, HP, HTZ, HES, HON, IP, KDP, KEX, LH, LAZ, LECO, HZO, MRK, NDAQ, NEM, NOC, ORI, OSK, PCG, PHIN, POOL, RS, RCL, SPGI, SNY, SAH, LUV, SRCL, STM, FTI, TECK, TXT, TSCO, TRU, TPH, UNP, VLO, VC, GWW, WST, WEX, WTW, and XEL. Then, after the close, AEM, AB, ALSN, GOOGL, ATR, AJG, TEAM, AVB, BYD, COF, CSL, CINF, COLM, DXCM, EMN, EW, EGO, ERIE, FE, GILD, GOOG, TV, HIG, HUBG, INTC, JNPR, KLAC, LHX, MSFT, MTX, MHK, NOV, DOC, PFG, RMD, RHI, ROKU, SKX, SKYW, SNAP, SSNC, TMUS, TDOC, TS, TEX, TFII, TBBB, TPC, WDC, WY, and WKC report.
In economic news later this week, Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.
In terms of earnings reports later this week, on Friday, ABBV, AON, ALV, AN, AVTR, BALL, CNC, CHTR, CVX, CL, XOM, FMX, GNTX, HCA, IMO, LYB, NWL, PSX, POR, ROP, SAIA, and TROW report.
So far this morning, ADT, MO, AIT, ARCH, AZN, CHLP, CMCSA, DOV, DOW, EQNR, FCNCA, HOG, HON, KDP, KEX, LH, LAZ, MRK, NEM, NOC, ORI, OSK, RNECY, RCL, SPGI, SNY, SWDBY, FTI, TRU, TPH, and WST all reported beats on both the revenue and earnings lines. Meanwhile, AOS, ALLE, AMBP, CARR, CAT, CMS, DAR, FCFS, GTX, PCG, SAH, SRCL, VLO, and XEL all missed on the revenue line while beating on earnings. On the other side, ASX, BFH, BMY, IP, NDAQ, VLY, and WEX beat on revenue while missing on earnings. Unfortunately, AAL, ABG, BC, CBZ, DTE, HZO, POOL, RS, LUV, STM, TECK, TXT, and VC all missed on both the top and bottom lines. Notable was BMY, which better have a good story to tell since they had higher than expected revenue but still missed earnings estimates by $6 per share. It is also with nothing that AIT, RS, RCL, WST, and WEX all raised their guidance. However, HZO lowered forward guidance.
In miscellaneous news, on Thursday, the CEO of DJT (former Congressman Nunes) complained publicly, urging his former House GOP friends to launch an investigation of short-sellers as “market manipulators.” While the House has no regulatory power, I suppose it could pass a law banning short sales. As usual, the threat of being attacked by MAGA types and the hassle of being subpoenaed and testifying is meant to bully short-sellers into not shorting DJT stock in particular. (We all know some people feel they need to be treated by different rules.) However, large short-sellers like Citadel called those demands “losers trying to blame someone else for their falling stock price.” Elsewhere, CT lawmakers advanced the state’s first-in-the-nation “paid sick leave” law. The 2011 law was revised to overcome legal challenges and it will require employers (down to a single-employee in size) to provide paid sick leave (one hour for every 30 hours worked) by 2027. While the passage was not technically party line, it was close to being so, with Democrats supporting the law. Meanwhile, GOP members in both CT houses decried the law as an unfounded mandate on business that will be abused by employees who will “take a day off to go to the beach.” Finally, the US Chamber of Commerce (and other business groups) sued the FTC over the rules passed Tuesday which ban most types of non-compete clauses in employment contracts. As expected, the suit was filed in the Eastern district of TX, where all the Federal judges are extremely conservative.
With that background, it looks as if the bears have control of the market early as all three major index ETFs gapped lower to start the premarket. However, they have reacted a bit differently since then. DIA is giving us a decent sized black candle since that gap-down premarket open. However, SPY is very flat with no body on its candle and QQQ is giving a modest white body candle after the gap-down start to the early session. SPY and QQQ are back below their T-line (8ema) while DIA is retesting that level as I write. So, the short-term trend is uncertain to bearish. Meanwhile, the mid-term remains bearish but under pressure from Bulls. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is back in the center of its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, six of the 10 are in the red with META (-14.63%) leading markets lower on bad forward guidance after an earnings beat. However, it is worth noting that the two biggest dogs, NVDA (+0.78%) and TSLA (+0.31%) are both on the green side and although META has traded more dollar volume in premarket, it will not trade more than those two over the day. With that all said, continue to be careful. We’ve see a lot of those widowmaker reversales lately.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
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Meta’s recent quarterly report has cast a shadow of concern over the upcoming earnings releases of other tech giants, particularly Microsoft and Alphabet, which are expected to announce their earnings after the market closes on Thursday The apprehension stems from Meta’s shares tumbling by 17% in after-hours trading, despite the company beating revenue and earnings-per-share. This reaction is attributed to Meta’s forward-looking statements, which indicated higher-than-anticipated spending, especially in AI and the. The market’s response to Meta’s report could be a bellwether for how investors might react to the financial disclosures of Microsoft and Alphabet, with particular attention being paid to their guidance and investment strategies.
In addition to corporate earnings, traders are also bracing for the release of key economic data. The U.S. Bureau of Economic Analysis is scheduled to publish the first-quarter GDP reading at 8:30 a.m. ET on Thursday, with Dow Jones economists predicting a 2.4%. Concurrently, the latest weekly jobless claims data will be released, providing further insight into the labor market’s health. These economic indicators are crucial as they will influence the Federal Reserve’s monetary policy decisions. Currently, the Fed funds futures market is signaling the possibility of an interest rate cut at the September Fed meeting, as per the CME FedWatch Tool. This anticipation of a policy shift reflects the market’s expectations that the central bank may pivot in response to evolving economic conditions.
In a significant legal development, a Russian court has ruled in favor of VTB Bank, a state-controlled lender, in its legal battle to recover $439.5 million from JPMorgan Chase. The U.S. bank had reportedly frozen these funds following the invasion of Ukraine. The court’s decision mandates the confiscation of JPMorgan’s funds held within Russian jurisdiction, as well as its tangible and intangible assets, which notably include the bank’s equity in a Russian subsidiary. This ruling comes on the heels of VTB’s lawsuit filed in a St. Petersburg arbitration court, which sought restitution for the funds frozen by the U.S. financial institution. VTB’s legal move was partly driven by JPMorgan’s announcement of its planned withdrawal from the Russian market, prompting the state-run bank to seek judicial intervention to reclaim the blocked capital.
The Japanese yen has experienced a notable depreciation of 4.2% since the Bank of Japan’s (BOJ) meeting in March, a trend exacerbated by the strengthening of the U.S. dollar this weakness is partly attributed to the persistent inflation in the United States, which has led Federal Reserve Chair Jerome Powell to hint that rate cuts may not be on the horizon for the next few months]. Analysts are calling for decisive measures to bolster the yen, yet there is widespread skepticism that such actions will emerge from the upcoming BOJ meeting on FridayThe market’s anticipation of continued low-interest rates in Japan, contrasted with the U.S.’s higher rates, has put additional downward pressure on the yen, leaving investors and policymakers alike watching for any potential shifts in the BOJ’s stance that could impact the currency’s trajectory.
During Meta’s recent quarterly earnings call, CEO Mark Zuckerberg emphasized the company’s commitment to long-term investments in artificial intelligence (AI) and the metaverse, a strategy that appeared to unsettle investors. Despite the potential of these emerging technologies to revolutionize digital interaction and business models, the immediate market reaction was negative, with Meta’s shares plunging by up to 19% in after-hours trading. Zuckerberg acknowledged the market’s response, noting that such volatility is not uncommon for Meta during periods of significant product development and innovation. His comments suggest a focus on future growth and transformation, even as current shareholders grapple with the implications of these ambitious projects on short-term financial performance.
The Meta disappointment makes today’s reports a significant moment for the tech industry as both Apple and Alphabet are set to report their earnings after the market closes. This event is highly anticipated by investors and market analysts alike, as the financial performance of these tech giants often serves as an indicator of the sector’s overall health and future direction. The results will be closely scrutinized for insights into consumer demand, advertising revenue trends, and the companies’ ability to navigate the current economic landscape. With the global economy facing various challenges, the outcomes of these reports could have substantial implications for market sentiment and tech stock valuations moving forward. Expect significant volatility, whipsaws. Anything is possible!
Tuesday saw another gap higher to start the day. SPY gapped up 0.43%, DIA gapped up 0.37%, and QQQ gapped up 0.50%. From three, all three major index ETFs gave us follow through, which was stronger for 90 minutes and then slowed, but continued higher until 2:45 p.m. From there, all three took profits very modestly into the close, to end the day not far below the highs. This action gave us gap-up, white bodied candles with modest upper wicks in all three. SPY crossed back above its T-line (8ema) while QQQ retested its own from below but came up just short of crossing. DIA remained up above its 8ema. If you squint, you might call the QQQ a Morning Star like pattern. This all happened on less-than-average volume in all three major index ETFs.
On the day, all 10 sectors were in the green with Technology (+1.96%) well out in front, followed by Healthcare and Consumer Cyclical (both +1.53%) leading markets higher. At the same time, SPY gained 1.19%, DIA gained 0.69%, and QQQ gained 1.56%. VXX fell another 3.92% to close at 13.71 and T2122 climbed again toward the upper end of its mid-range at 70.87. 10-year bond yields fell to 4.602% and Oil (WTI) was up 1.72% to close at $83.31 per barrel. So, Tuesday was a bullish day with DIA breaking up out of its consolidation while SPY and DIA turned higher. However, the downtrend has only been broken in the DIA with the two broader index ETFs still below that falling line. None of the three has put in a higher low yet. So, for now this must be considered a relief rally at the moment.
The major economic news scheduled for Tuesday included Building Permits, which came in stronger than expected at 1.467 million (compared to a forecast of 1.458 million but still down from the March reading of 1.524 million). Later, S&P Global Mfg. PMI was lower than predicted at 49.9 (versus a 52.0 forecast and a March value of 51.9). At the same time, S&P Global Services PMI also came in low at 50.9 (compared to a forecast of 52.0 and a March 51.7 value). This gave us an S&P Global Composite PMI of 50.9 that was down from March’s 52.1 reading. Later, March New Home Sales were a bit better than anticipated at 693k (versus a 668k forecast and a 637k February value). Finally, after the close, API Weekly Crude Oil Stocks showed an unexpected drawdown of 3.230 million barrels (compared to a forecast calling for an increase of 1.800 million barrels and the prior week’s 4.090-million-barrel increase).
After the close, BKR, CNI, CB, CSGP, EWBC, ENVA, EQR, MTDR, RUSHA, LRN, TXN, VLTO, V, WFRD, and WFG all reported beats on both the revenue and earnings lines. Meanwhile, AGR, EQT, IEX, MAT, RRC, STX, STLD, all missed on revenue while beating on earnings. On the other side, HA beat on revenue while missing on earnings. Unfortunately, TSLA missed big (the steepest revenue decline since 2012) on both the top and bottom lines. However, the master marketer Musk did immediately promise things for next year that made the stock soar. It is worth noting that LRN raised its forward guidance.
In stock news, on Tuesday, GOOGL announced it will invest $640 million in a new data center in Netherlands. At the same time, Reuters reported that FSRN may file for bankruptcy sometime in the next 30 days if it is unable to get enough relief from creditors or otherwise raise capital. Later, SPWR announced that its previous financials should not be relied upon and it will need to restate some 2022 and 2023 financial statements. At the same time, LHX announced it will cut 5% of its workforce during 2024 (about 2,500 employees) as part of a cost-savings push. Later, JDSPY agreed to buy HIBB for $1.08 billion ($87.50/share, almost a 21% premium on Monday’s close). Meanwhile, protest organizers say that GOOGL increased the number of employees fired over last week’s protests (over a deal with the Israeli military), bringing the total to 50. At the same time, TLSA said it will lay off 6,020 employees (3,322 in CA and the rest in TX). Later, the Wall Street Journal, reported that IBM is close to closing a deal to buy HCP. At the same time, MSFT announced it had launched a “lightweight AI model” that will be more cost-effective for customers with more limited requirements.
Elsewhere, SPR announced that it had reached a deal with BA and will receive $425 million in advanced payments to give it the capital to address higher inventories due to the slowdown of BA production amidst quality probes and concerns. Later, TSLA said it will introduce “new models” by early 2025, which will include lower-cost vehicles to better compete. (TSLA stock soared in after-hours trading on the news.) Also after the close, SQ announced it is expanding its Bitcoin mining operation by developing its own mining system. (Previously, SQ had just designed Bitcoin mining chips.)
In stock legal and governmental news, on Tuesday, the US Supreme Court heard the arguments on SBUX appeal against lower court rulings that it violated employee rights and must reinstate union organizing employees the company fired in retaliation for their union organization. (Questioning by the Justices seemed to indicate the Conservative super-majority sides with the company and wants to rule against the NRLB…or any other agency…can dictate to companies.) Later, in Canada, the merger of US-based BG with Viterra is facing pushback from the country’s Competition Bureau on anti-trust concerns. At the same time, Bloomberg reported that JPM, C, and BAC are under investigation by the CFTC related to forcing would-be whistleblowers from speaking out by threatening civil penalties under company NDA policies. In unrelated news, the FTC approved a ban on common NDA agreements required by companies preventing employees from joining or launching firms the company deems to be competitors. (The rule will take effect in August and business groups have said they will sue to stop the rule.) Later, Reuters reported that the FAA has opened an investigation into BA for having retaliated against two employees who had insisted (in 2022) that the company re-evaluate prior engineering work on 777 and 787 jets. The investigation came after their union filed a complaint with the NRLB.
Overnight, Asian markets were nearly green across the board with the lone exception of Australia (-0.01%) which was barely in the red. The big bullish move was led by Taiwan (+2.72%), Japan (+2.42%), Hong Kong (+2.21%), and South Korea (+2.01%). Meanwhile, in Europe, markets are much more mixed at midday with six of 15 bourses in the red. Still, the CAC (+0.36%), DAX (+0.31%), and FTSE (+0.49%) lead the region higher in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a mixed start to the day. DIA implies a -0.05% open, the SPY is implying a +0.16% open, and QQQ implies a +0.58% open at this hour. At the same time, 10-year bond yields are up to 4.644% and Oil (WTI) is down three-quarters of a percent to $82.75 per barrel in early trading.
The major economic news scheduled for Wednesday include March Core Durable Goods Orders and March Durable Goods Orders (both at 8:30 a.m.), and EIA Crude Oil Inventories (10:30 a.m.). The major earnings reports scheduled for before the open include APH, T, AVY, BIIB, BA, BSX, BG, CME, KOF, CSTM, ETR, FTV, GD, GPI, HAS, HLT, HUM, IPG, LII, LAD, MHO, MAS, COOP, EDU, NSC, ODFL, OTIS, OC, PRG, RCI, SABR, SYF, TEL, TDY, TMO, TNL, UMC, VRT, WAB, and WSO. Then, after the close, AGI, ALGN, AR, BMRN, CACI, CP, CLS, CCS, CHX, CHE, CMG, CHDN, CYH, EHC, F, GGG, ICLR, IBM, KALU, KNX, LRCX, LSTR, MTH, META, MEOH, MOH, NBR, ORLY, OII, PLXS, RJF, ROL, DEIC, NOW, TER, TX, TYL, URI, UHS, VALE, WCN, WU, WHR, and WM report.
In economic news later this week, Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet. Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.
So far this morning, AVY, BA, BXMT, BSX, CME, HAS, HELE, HLT, HUM, IPG, COOP, NKYDY, OC, RCI, TEL, TMO, TNL, VIRT, and WAB all reported beats on both the revenue and earnings lines. Meanwhile, T, BIIB, BG, LII, MAS, ODFL, OTIS, and VRT missed on the revenue line while beating on earnings. On the other side, CSTM, GD, GPI, EDU, SF, SYF, and WNC all beat on revenue while missing on earnings. Sadly, ETR, EVR, LAD, TDY, and UMC all missed on both the top and bottom lines. It is worth noting that BSX, EDU, and WAB raised their guidance. However, HELE and TEL lowered their forward guidance.
In miscellaneous news, on Tuesday, Reuters reported that State Dept. officials have said the Biden Administration are discussing sanctions on Chinese banks, but are not looking at imposing them in the near-term. However, the Wall Street Journal reported late Monday that sanctions were being drafted to stop Chinese banks from supporting Russia’s military production. Elsewhere, JPM CEO Dimon said Tuesday the economy “is booming” and the strength is “unbelievable.” He went on to say, “Even if we go into recession, the consumer’s still in good shape.” However, he also warned about the potential (longer-term) impacts of the national debt and (shorter-term) harms of inflation and geopolitical conflicts. Finally, in political news, the Senate passed the 4-bill package of foreign aid and TikTok forced sale or ban. The bill passed 79-18 and was forwarded to the President for signature.
With that background, it looks as if the market remains undecided so far this morning. The bulls opened the premarket higher in the QQQ and SPY but also slightly lower in the DIA. Since then, all three major index ETFs are giving us small and very wicky candles, showing uncertainty. The bias is on the Bulls’ side this morning, but just barely. All three are back above their T-line (8ema) showing that the Bulls have retaken the short-term trend. Meanwhile, the mid-term remains bearish but is under pressure. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator remains in its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, seven of the 10 are in the green with only AAPL, GOOGL, and NFLX in the red this morning. The oddity is TSLA, which is up more than 12% on a huge miss…but as the huckster is wont to do, Musk promised new models early next year (things are always just around the corner with him) that are going to make TSLA cars more affordable and revolutionize the EV market. (The same was said last year about this year.) With that all said, be careful. We’ve see a lot of those widowmaker whipsaws lately.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Markets were indecisively bullish on Monday. The SPY gapped up 0.56%, DIA gapped up 0.50%, and QQQ gapped up 0.68%. At that point, all three major index ETFs faded the gap, reaching the lows of the day at 11:20 a.m. From there, all three rallied strongly and steadily to the highs at 2:30 p.m. However, the SPY, DIA, and QQQ then all sold off the last 90 minutes of the day. This whipsaw action gave us gap-up, white-bodied, Spinning Top candles in all three. SPY and QQQ printed Bullish Harami Cross candles while DIA printed a Spinning Top that gapped up through, retested and stayed above its T-line (8ema). This all happened on below average volume in all three major index ETFs.
On the day, nine of the 10 sectors were in the green with Financial Services (1.35%) and Technology (+1.21%) out in front leading the market higher while Basic Materials (-0.13%) was by far the worst performing sector. At the same time, SPY gained 0.92%, DIA gained 0.68%, and QQQ gained 1.01%. VXX plummeted 7.70% to close at 14.27 and T2122 jumped back up to the center of its mid-range at 53.77. 10-year bond yields fell to 4.611% and Oil (WTI) was just on the red side of flat at $83.02 per barrel. So, Monday was a bullish, but indecisive and very volatile day. We saw a gap higher two different down waves of more than half a percent and a 1.4% up wave in the middle. Not a market for the faint-hearted
There was no major economic news scheduled for Monday.
After the close, AGNC, AMP, BRO, CADE, CR, and PKG reported beats on both the revenue and earnings lines. Meanwhile, ARE, CDNS, HXL, and MEDP missed on revenue while beating on earnings. On the other side, SAP and SSD beat on revenue while missing on earnings. Unfortunately, CLF, GL, LU, and NUE missed on both the top and bottom lines. It is worth noting, MEDP raised their guidance. However, NUE and PKG both lowered forward guidance.
In stock news, on Monday, auto supplier ADNT announced its restructuring its Europe business unit and will lay off an unspecified number of workers. (42% of ADNT’s 70k workers are located in Europe.) At the same time, UAE-based G42 (an AI firm) said it had agreed to a partnership with QCOM related to QCOM’s cloud AI products. Later, CAH announced that it had lost contracts from UNH (one of CAH’s largest customers, contributing 16% of revenue in 2023) as the deal will not be renewed at the end of June. (Industry analysts expect MCK to gain the contracts.) At the same time, the New York Times reported AAPL is very close to finalizing a worldwide TV rights deal for FIFA’s month-long club tournament. Later, Reuters reported that an internal memo from BA said the company expects a slower increase in the production and delivery rates for 787 jets. The memo cited parts shortages from “a few key suppliers.”
In stock legal and governmental news, on Monday EXPR filed bankruptcy (Chapter 11) protection and said it will close more than 100 stores. Later, the US Supreme Court rejected an appeal from VNDA, which had hoped to revive patents that had been declared invalid by a lower court in the company’s legal dispute with TEVA. At the same time, the FAA announced it is finalizing rules to require commuter, charter, tour, and aircraft manufacturers to implement a set of safety policies and procedures (akin to a quality management system). Up to this point, those types of commercial aircraft operators were not required to do so the way major airlines were. Later, the FTC said it would be filing suit to clock the TPR $8.5 billion acquisition of CPRI. The agency said the merging of ownership of the two company’s various luxury brands would reduce competition significantly in that industry. At the same time, KR and ACI said they would be selling off 166 more grocery stores than previously announced as the companies work to get regulatory approval for the $15 billion “merger.”
Overnight, Asian markets were mixed but leaned toward the green side again. Hong Kong (+1.92%), Singapore (+1.47%), and Taiwan (+0.97%) led the region higher. In Europe, with the sole exception of Russia (-0.40%) we see green across the board at midday. The DAX (+1.12%), CAC (+0.67%), and FTSE (+0.43%) lead the region higher in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward another green start to the day. The DIA implies a +0.22% open, the SPY is implying a +0.29% open, and the QQQ implies a +0.33% open at this hour. At the same time, 10-year bond yields are up to 4.637% and Oil (WTI) is down 0.53% to $81.47 per barrel in early trading.
The major economic news scheduled for Tuesday includes Building Permits (8 a.m.), S&P Global Mfg. PMI, S&P Global Services PMI, and S&P Global Composite PMI (all at 9:45 a.m.), March New Home Sales (10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.). The major earnings reports scheduled for before the open include DHR, FI, FCX, GE, GM, HAL, HRI, IVZ, JBLU, KMB, LKQ, LMT, MSCI, NEE, NVS, OPCH, PNR, PEP, PII, BPOP, PHM, DGX, RTX, R, SHW, SPOT, UPS, WRB, WBS, and XRX. Then, after the close AGR, BKR, CNI, CB, CSGP, EWBC, ENVA, EQT, EQR, HA, IEX, MTDR, MAT, RRC, STX, STLD, LRN, TSLA, TXN, VLTO, V, WFRD, and WFG report.
In economic news later this week, Wednesday, March Core Durable Goods, March Durable Goods, and EIA Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet. Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.
So far this morning, DHR, FI, GE, GM, HAL, KMB, LMT, NEE, NVS, OPCH, PNR, PEP, PHM, DGX, RTX, R, and SPOT have all posted beats on both the revenue and earnings lines. Meanwhile, BANC, HRI, IVZ, NJDCY, and WBS all reported beat on revenue while missing on earnings. On the other side, JBLU, MSCI, PM, PII, and UPS all missed on revenue while beating on earnings. Unfortunately, LKQ, SHW, and XRX missed on both the top and bottom lines. It is worth noting that JBLU has lowered its forward guidance. However, GM has raised guidance after a blowout quarter.
In miscellaneous news, on Monday, the Communist Party Central Economic Planner said the global EV price war will continue the rest of 2024. The economist said he expects 2.1 million EVs to be sold this year. However, the three main Chinese EV brands plan to produce 2.3 million themselves. This does not count TSLA or any other non-Chinese manufacturers. Later, the Equipment Leasing and Finance Assn. (ELFA) said that US companies borrowed 7% less in March 2024 than they had one year prior. However, March was also up 18% over February of this year.
With that background, it looks as if the bulls are making another indecisive move higher in the premarket. All three major index ETFs gapped higher to start the early session. However, since that point, all three have also given us more wick than (still white) body in the premarket. DIA remains back above its T-line (8ema). However, the SPY and QQQ remain below their T-line. So the short-term trend remains bearish to mixed. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is now back in its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, eight of the 10 are in the green with only AAPL and INTC barely in the red this morning. With that all said, be careful. This week is packed with economic data (PCE) and a ton of earnings. Plus we’ve see a lot of those widowmaker whipsaws lately.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Today investors find themselves at a crossroads of anticipation and caution. The market has witnessed a rebound, with Big Tech companies poised to release their earnings, sparking a collective breath of optimism. This week is particularly crucial as it sees the convergence of financial disclosures from approximately 30% of the S&P 500 entities, setting the stage for potential market reassurance.
However, the recent past has painted a more sobering picture. Wall Street experienced a sharp decline, marking its worst performance since October, as the S&P 500 fell by 1.5%. This downturn was part of a broader trend, with the S&P 500 extending its losing streak influenced by slumps in major tech firms like Nvidia and Netflix.
Economic Calendar
Earnings Calendar
Notable reports for Tuesday. Before the bell, BANC, DHR, EWBC, FBP. FCF. FI. FCX. GATX. GE. GM, HAL, IVZ, JBLUE, KMB, LMT, MSCI, NEE, NEP, PNR, PEP, PM, PII, PHM, DGX, RTX, R, SHW, SPOT, UPS, WRB, WBS, & XRX. After the bell reports includeTSLA, BKR, CNI, CB, CGSP, ENPH, EQT, EQR, HA, IEX, MTDR, MAT, RRC, STX, STLD, LRN, TXN, TRMK, VBTX, VICR, V, WSBC, & ZWS.
News & Technicals’
The upcoming days are set to be a defining moment for the U.S. technology sector as industry giants such as Tesla, Meta, Microsoft, and Google’s parent company Alphabet are on the cusp of revealing their latest financial figures. The earnings week is set to ignite with Tesla, the electric vehicle pioneer led by Elon Musk, announcing its results after Tuesday’s market close. This series of disclosures follows a tumultuous period for the tech market, evidenced by a 5.5% drop in the Nasdaq Composite last week. The sentiment in the market is one of cautious scrutiny, as noted by Nicolai Tangen, CEO of Norges Bank Investment Management, who highlighted the presence of speculative “froth” in the tech sector during his interview with CNBC. The true measure of this speculation, however, remains to be seen, casting a veil of uncertainty over the impending earnings announcements.
The dichotomy between hope and reality is further accentuated by the mixed results of the current reporting period. While a majority of companies have exceeded expectations, the overall growth for Q1 remains tepid, with FactSet data indicating a flat year-on-year trajector. This stands in stark contrast to the more than 3% growth that analysts had projected at the onset of the earnings season.
As investors navigate this complex environment, they remain vigilant, weighing the potential impact of upcoming earnings reports against the backdrop of recent market volatility. The question on everyone’s mind is whether the forthcoming financial revelations will serve as a catalyst for recovery or contribute to ongoing market trepidation.
Today’s stock market is an interplay of various economic forces with trader at the corssroads of hope and uncertainty. From the anticipation surrounding Big Tech earnings to the cautious reflection on recent downturns, investors are reminded of the inherent uncertainties that define the financial world. As we look ahead, it is clear that the market’s trajectory will be shaped by a multitude of factors, likely to create considerable emotion and price volitility.
Friday saw markets open modestly. SPY opened flat a -0.01%, DIA opened +0.22%, and QQQ gapped down 0.25%. From there, SPY and QQQ sold off in a wavy manner the rest of the day. At the same time, DIA meandered sideways above the open all day. This action gave us large black-body candles with small wicks on both ends for the SPY and QQQ. Meanwhile, the DIA printed a white-bodied Spinning Top candle that retested but failed it s T-line (8ema). This happened on well above-average volume in all three major index ETFs.
On the day, eight of the 10 sectors were in the green with Utilities (1.51%) leading the market higher while Technology (-2.21%) was war and away (by 1.6% more than the other red sector) the biggest loser. The big drag on technology was SMCI (-23.14%) which announced its earnings date, but did not include a prerelease of preliminary results as has been their custom. This led to panic that the SMCI and the broader tech industry is in trouble. The worst part for the market was that this spread to NVDA (-10.00%) which is by far the biggest market-mover, normally trading 2-3 times as much dollar volume as the next closes ticker. However, Friday, NVDA traded five times as much dollar-volume than the next closes ticker.
This led to the SPY losing 0.87%, DIA gaining 0.52%, and QQQ losing a whopping 2.07%. VXX gained 3.27% to close at 15.46 and T2122 climbed but remains just inside of its oversold territory at 19.15. 10-year bond yields fell a bit to 4.623% and Oil (WTI) was higher by 0.54% at $83.14 per barrel. So, Friday was a story of fear. SMCI made the market fear that the AI craze was ending leaving nothing but an abyss for the broader tech sector (which has driven markets for years now). In addition to the two already mentioned, NFLX (-9.09%), AMD (-5.44%), and META (-4.13%) were also hammered and led the way lower.
There was no major economic news scheduled for Friday.
In FOMC speak, Chicago Fed President Goolsbee said that progress on inflation has been stalled this year. Gone are his mentions of being on a “golden path.” For now, he is counseling that the Fed stand pat, saying, “Given the strength of the labor market and progress on easing inflation seen over a longer arc, I believe the Fed’s current restrictive monetary policy is appropriate,” … “I think we have to recalibrate and we have to wait and see.” He continued, “We’re just trying to figure out what is necessary, how restrictive do we need to be” … “We have weeks, months to find out.” Finally, and as always, he said “Ultimately the proper policy going forward will depend on the data.”
In stock news, on Friday, Invetstin.com reported that the sale of PARA to Skydance Media may fall through as a competing big of $29 billion is in the works from the joint efforts of SONY and APO. This news comes as the clock ticks on a 30-day exclusive negotiating rights period ticks away from Skydance. Later, GOOGL announce they are rolling back requirements that suppliers and staffing firms pay their employees at least $15/hour and provide health benefits. The move is designed to help suppliers avoid bargaining with unions. At the same time, Reuters reported that an internal memo shows that NKE will lay off 740 employees at its headquarters. Later, LULU announced it will close id WA state distribution center and lay off 128 employees. Meanwhile, TSLA announced it is cutting prices on Y, X, and S models by $2,000 and will end its customer referral benefits program on April 30.
Elsewhere, the UAW won the employee vote at the VLKAF (Volkswagen) TN plant in a landslide vote with 73% for joining the union. This was a big deal in that it is the first automaker plant in the South to unionize. Later, a Swiss newspaper reported that the first of five planned waves of layoffs at UBS will begin in June. This comes after the absorbing of CS and will be a cost-cutting and duplication reduction program. The report expects 50%-60% of former CS staff to be laid off in one of the five waves. On Saturday, TSLA cut the price of its “Full Self Driving” feature from $12k to $8k. Then on Sunday, TSLA cut the price of some models in Europe, Africa, and the Middle East.
In stock legal and governmental news, on Friday, the FAA issued new rules that will require air traffic controllers to have at least 10 hours between shifts and 12 hours off prior to a midnight shift. The new rules take effect in 90 days. At the same time, SWBI and RGR appealed to the US Supreme Court to hear their appeal of a $10 billion suit brought by Mexico. The Mexico suit alleges the gun makers are responsible for misuse of their products in that country among others by drug cartels. The appeal comes after the 1st Circuit Court of Appeals ruled in favor of Mexico, overturning the district court. Later, the NHTSA announced that STLA is recalling 38k 2023-2024 vehicles over a steering column issue that may prevent the driver’s airbag from deploying. At the same time, the World Health Org. issued a broader warning over contaminated JNJ children’s cough syrup (now owned by KVUE). The original problem was found in Nigeria, but cases have now been found around Africa, Asia, and Eurasia. Later, the Wall Street Journal reported that China has ordered AAPL to remove META WhatsApp and Threads along with other messaging apps from their app store. At the same time, the US Dept. of Energy announced that ALB, CMI, SMNEY (Siemens), BLBP, and MP will receive a total of $1.93 billion in tax credits related to 35 clean energy projects.
Elsewhere, the NHTSA announced that TLSA will recall 3,900 Cybertrucks to fix an accelerator pedal that can come loose and get lodged in the trim causing unintentional acceleration. At the same time, the US Interior Dept. announced it will limit oil and gas drilling as well as mining on public lands in Alaska. Oil companies and AK politicians decried the decision as hurting jobs and the economic growth. Later, WFC was hit with a sex discrimination lawsuit from one of their bond saleswomen. The suit alleges the company operates an “unapologetically sexist” workplace where male managers routinely having sexual relations with subordinate women, men often make degrading jokes, and accounts are handled through an “old boy network” which cost the plaintiff millions in commissions and forced her to wait nine years for promotion to director (from Vice President).
Overnight, Asian markets were mostly green with just three of the 12 exchanges in the red. Hong Kong (+1.77%), Singapore (+1.53%), and South Korea (+1.45%) led the region higher but the gains were broad with half of the region’s exchanges up more than one percent. In Europe, we see a similar picture at midday with 13 of 15 bourses in the green. The FTSE (+1.59%), CAC (+0.18%), and DAX (+0.48%) lead the region on volume in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a gap higher to start the day. The DIA implies a +0.52% open, the SPY is implying a +0.56% open, and the QQQ implies a +0.63% open at this hour. At the same time, 10-year bond yields are up to 4.66% and Oil (WTI) is flat at $83.15 per barrel in early trading.
There is no major economic news scheduled for Monday. However, the major earnings reports scheduled for before the open include ACI, KSPI, SDVKY, TFC, VZ, and ZION. Then, after the close, ARE, AMP, BRO, CDNS, CLF, CR, GL, HXL, LU, MEDP, NUE, PKG, SAP, and VLRS report.
In economic news later this week, Tuesday we get Building Permits, S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, March New Home Sales, and API Weekly Crude Oil Stocks. Then Wednesday, March Core Durable Goods, March Durable Goods, and EIA Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet. Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.
So far this morning, TFC reported beats on both the revenue and earnings lines. At the same time, VZ missed on revenue while beating on earnings.
In miscellaneous news, on Friday, the USDA confirmed that bird flu can be transmitted between cattle. This just adds another vector to be accounted for in attempting to control the virus. However, as of now, pasteurization still kills the virus, leaving the cattle’s milk still viable for humans and the bird flu is not deadly to cattle. Elsewhere, Bitcoin finished its fourth “halving” on Friday. This means that Bitcoin miners only get half as much Bitcoin in return for the same mining effort. (These “halvings” happen every four years and are designed to make existing Bitcoin even more valuable. In other news, China slapped an 43.5% anti-dumping tariff on an acid from the US, which is widely used in food, feed, pesticides, and medical fields. The move comes as trade tensions between Beijing and Washington increase.
With that background, it looks as if the bulls want to make a run this morning. All three major index ETFs gapped up to start the premarket and have put in strong white-bodied candles with no wicks since then. DIA has even crossed back above its T-line (8ema). However, the SPY and QQQ remain well below their T-line. So the short-term trend remains bearish to mixed. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, the QQQ is extended below their T-line but the DIA is fine and SPY is somewhere between those two. Still, the T2122 indicator remains just inside its oversold range. So, again, a rest would seem in order at the very least for the Bears. (Just remember markets can remain oversold a lot longer than we can stay solvent predicting a reversal.) In terms of those 10 big dog tickers, eight of the 10 are in the green with the huge dog NVDA (+1.80%) looking to rebound after the weekend to reconsider the “sky is falling” Friday panic. TSLA (-3.82%) is down hard again as it is hit from its weekend price cuts and other news. With that all said, be careful. This week is packed with economic data (PCE) and a ton of earnings.
As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!
See you in the trading room.
Ed
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
