Monday saw a modest gap higher in the markets.  SPY gapped up 0.35%, DIA gapped up 0.22%, and QQQ gapped up 0.51% with TSLA dragging markets higher on China FSD approval news.  From there, all three major index ETFs chopped sideways the entire day, meandering back and forth around that modest gap.  All three ended on an upswing the last 50 minutes.  This action gave us gap-up indecisive candles in all three with a Doji in the SPY and QQQ and more of a white-bodied Spinning Top in the DIA. All three closed above their respective T-lines (8ema).  This happened on well below-average volume in all three major index ETFs.

On the day, eight of the 10 sectors were in the green again with Utilities (+1.44%) way out in front leading the rest of the market higher. At the same time, the only red sectors were Financial Services (-0.12%) and Technology (-0.06%).  Meanwhile, SPY gained 0.35%, DIA gained 0.39%, and QQQ gained 0.41%.  VXX fell 1.71% to close at 13.20 and T2122 climbed but remained in the upper end of its mid-range at 75.00.  10-year bond yields fell to 4.609% and Oil (WTI) dropped 1.31% to close at $82.75 per barrel.  So, Monday was a typical indecisive pre-Fed day.  The TSLA news popped stocks higher at the open.  However, from there it was an all-day meander back-and-forth in and slightly above the opening gap.  At the end of the day, all three major index ETFs were little changed from their opens.

There was no major economic news scheduled for Monday.

After the close, AMKR, ACGL, CLW, FLS, ST, SUI, WELL, WWD, and YUMC all reported beats on both the revenue and earnings lines.  Meanwhile, CNO beat on revenue while missing on earnings.  On the other side, CCK, CWK, ESI, EG, FFIV, NXPI, PARAA, PARA, SBAC, and RIG missed on the revenue line while beating on earnings.  However, CVI and SANM missed on both the top and bottom lines.  It is worth noting that WWD raised its forward guidance.

In stock news, on Monday, UMBF announced a deal to acquire HTLF in a $2 billion all stock deal.  (Analysts expect the deal to create a strong regional bank with operations spanning 13 states.)  Later, Bloomberg reported that KO is gearing up to IPO its $8 billion African bottling operation.  At the same time, Reuters reported that BA tapped the debt market to raise $10 billion after burning through almost $4 billion of cash in Q1 amidst slowing production and sluggish sales.  Later, the CA New Car Dealers Assn. reported TSLA vehicle registrations in CA fell 8% during Q1, the second consecutive quarterly decline in those registrations (sales).  (CA is one of the most important EV markets.)  At the same time, MBGAF (Mercedes), BMWYY, RIVN, and HYMTF (Hyundai) saw increases in EV vehicle registrations.  Later, LUV announced it has launched a “delay compensation” program.  (This was part of the airline’s $140 million settlement with DOT over the airline’s December 2022 holiday debacle.)  The airline said the program actually launched April 16 and it has already heard from thousands of customers seeking compensation for delays.  After the close, PARA announced the widely-expected resignation of CEO Bakish as the board works on a merger/sale to Skydance.  Bakish will be replaced by a triumvirate of internal executives.

In stock legal and governmental news, on Monday, PHG announced it had reached a $1.1 billion settlement (many, many times smaller than the expected $4-$10 billion) to resolve all personal injury claims due to its respiratory devices.  Later, the Financial Times reported that the European Commission is opening an investigation into how META is handling Russian disinformation in political advertising on Facebook and Instagram.  (However, the investigation report is not expected to single out Russia, instead calling the sources “foreign actors.”)  At the same time, US House and Senate negotiators said they had reached a deal to boost air traffic controller staffing. However, the deal will not increase the mandatory airline pilot retirement age.  (Airlines had lobbied to increase the age of mandatory retirement to 67 from the current 65.)  Later, EU antitrust regulators announced that AAPL’s iPad operating system has been designated a “gatekeeper.”  This makes AAPL subject to the EU’s recent landmark DMA legislation for iPad users in addition to phone and Mac users.  At the same time, the NHTSA announced it is opening a probe into 130k F vehicles equipped with the company’s “hands-free driving” technology BlueCruise after two fatal crashes of those vehicles striking parked cars.  Later, the FCC fined T ($57 million), VZ ($47 million), and TMUS ($92 million) for illegally sharing phone service customer location data.  The TMUS fine included $80 million for T-Mobile and $12 million for Sprint.  The wireless carriers protested and said they would appeal.  At the same time, a US District Judge threw out challenges by BMY and JNJ, which had filed lawsuits challenging the law that requires them to negotiate prices with Medicare.  (This was the fourth federal judge to rule in favor of the Biden administration requirement that pharma companies negotiate price with Medicare in the same way it negotiates with insurers and foreign market entities.  The conservative 5^th-circuit Court of Appeals will hear an pharma trade group appeal to revive suits to challenge the law later this week.)

Overnight, Asian markets were mixed but leaned toward the green.  Japan (+1.24%) was by far the biggest mover in the region followed by Shenzhen (-0.90%) and the rest of the region was at least a half of a percent closer to even on the day.  In Europe, we see a similar mixed market leaning slightly to the red side with seven of the 15 bourses in the green.  Once again, the CAC (-0.04%), DAX (-0.33%), and FTSE (+0.59%) lead the region by far on volume in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a start just on the red side of flat.  The DIA implies a -0.04% open, the SPY is implying a -0.10% open, and the QQQ implies a -0.18% open at this hour.  At the same time, 10-year bond yields are back up to 4.626% and Oil (WTI) is up four-tenths of a percent to $82.97 per barrel in early trading.

The major economic news scheduled for Tuesday includes Q1 Employment Cost Index (8:30 a.m.), Chicago PMI (9:45 a.m.), Conf. Board Consumer Confidence (10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include MMM, APD, ATI, AEP, AMT, ARCB, ADM, BGC, EAT, CNP, KO, GLW, DAN, ETN, ECL, LLY, EPD, FELE, IT, GEHC, GPK, HSBC, HUBB, ITW, INCY, KBR, LEA, LDOS, MPC, MLM, MCD, MLCO, TAP, MPLX, NOG, OMF, PCAR, PYPL, PAG, PNM, PEG, QSR, RITM, SIRI, STLA, SCL, SYY, TMHC, THC, TKR, TT, and UFPI.  Then, after the close, ABRA, AMD, AMZN, AMCR, ASH, EQH, BXP, CZR, CC, CHK, CLX, FANG, EIX, EXR, FBIN, HI, INVH, LEG, LFUS, LPLA, LUMN, MATX, MCY, MDLZ, NGD, OI, OKE, PK, PINS, PSNY, PRU, PSA, QUAD, RNR, RSG, RYI, SWKS, SBUX, SYK, SMCI, UNM, and WERN report. 

In economic news later this week, on Wednesday, ADP Nonfarm Employment Change, March Construction Spending, April S&P Global Mfg. PMI, ISM Mfg. Employment, ISM Mfg. PMI, ISM Mfg. Price Index, March JOLTs Job Openings, EIA Weekly Crude Oil Inventories, FOMC Rate Decision, FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, March Factory Orders, and Fed Balance Sheet.  Finally, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Wednesday, AER, ARCC, ADP, AVA, AVT, AXTA, GOLD, BLCO, CG, CRS, CDW, COR, CVE, CENX, GIB, CHEF, CLH, CNDT, CVS, DD, ENTG, ESAB, EL, EEFT, FLEX, FTS, GRMN, GTES, GNRC, GSK, GPN, IDXX, NSP, JCI, KKR, KHC, DRS, LTH, MAR, MA, NBIX, NCLH, OGE, PSN, PFE, PPL, SMG, SLGN, SR, STGW, TRN, TTMI, UTHR, VRSK, WEC, WLK, YUM, ACHC, AFL, ALB, ALL, AFG, AIG, AWK, ANSS, CAR, AXS, BALY, BBSI, BZH, BV, CHRW, CWH, CVNA, CF, CMPR, CTSH, CODI, CTVA, CW, DLX, DVN, DASH, EBAY, ENSG, NVST, ETSY, ES, EXPI, FLSR, FNV, GFL, GIL, THG, HLF, HST, JAZZ, KMPR, MRO, MKL, MET, MGM, MAA, MOS, MUSA, MYRG, PGRE, PTEN, PAYC, CNXN, PTC, QRVO, QCOM, RHP, SIGI, SCI, SFM, SUM, TTEK, TWI, TROX, UGI, VMI, VTR, VICI, ZG, and Z report.  On Thursday, we hear from AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, ZTS, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC.  Finally, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, MMM, ATI, AMT, EAT, KO, ETN, ECL, EPD, IT, HUBB, KBR, LEA, LDOS, LKNCY, MPC, TAP, OMF, PYPL, QSR, RITM, SIRI, TMHC, THC, TKR, TT, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, APD, ADM, CNP, GLW, LLY, GEHC, GPK, MLM, and SCL all missed on revenue while beating on earnings.  On the other side, ARCB, DAN, and PEG beat on revenue while missing on earnings.  However, AEP, INCY, MCD, MPLX, PAG, and PNM all missed on both the top and bottom lines.  It is worth noting that KO, LLY, LDOS, and TMHC all raised their forward guidance.

In geopolitical news, on Monday, the Yemeni Houthi rebels fired missiles at a British-owned, Panamanian-flagged ship in the Red Sea.  At least one missile struck the vessel, causing unknown damage.  At the same time, the Houthi fired three missiles at a Malta-flagged container ship which was in the Gulf of Aden travelling from Djibouti to Saudi Arabia.  This comes after the Houthi shot down a US military MQ-9 Reaper drone on Saturday.  In short, the Houthi threat to Red Sea and Suez Canal merchant traffic has ticked up the last few days.

In miscellaneous news, on Monday S&P reported that margins shrank at all five of China’s top banks in Q1.  This came as those banks are under pressure, supporting weak property developers while new loan demand is weak.  Elsewhere in Asia, the Japanese Yen surged Monday on speculation that the Bank of Japan will intervene to support the currency, which was at a 34-year low versus the US Dollar.  Ban in the US, the Philly Fed released data Monday showing that only one in 50 employees changed employers in March (going directly from one employer to another).  This is near the historic lows of 2020 and 2010-2011.  (This suggests employees may be unsure of the job market and headhunting firms are less active.  Both potential forerunners of a weakening labor market…which is what the Fed is looking to cause with high rates.)

With that background, it looks as if the markets are opening indecisive and just on the red side of flat. QQQ is showing us the largest premarket candle body and its still just a small, black-body, Spinning Top candle. The two large cap index ETFs are tru Doji at this point. All three major index ETFs remain above their T-line (8ema), although the DIA is just barely so. So, the short-term trend is bullish but under pressure. 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. Therefore, in general we can say we have a choppy, undecided market. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is in its mid-range, although now at the top end. So, both sides have 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 red with TSLA (-1.95%) out front leading the way lower. Keep in mind that we’ve seen a lot of whipsaw lately. So, be careful not to chase a gap. Also remember that this is a Fed week and the last day of April, meaning we’ll get April Jobs data on Friday as well as a ton of earnings over the week. There will be a tendency to “wait and see” and a ton of ammunition for over-reaction on news this week. Just be careful.

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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On Friday, markets diverged at the open.  SPY gapped up 0.60%, QQQ gapped up 0.77%, but DIA opened 0.03% lower.  From there, all three major index ETFs saw some follow-through, with DIA rallying until 10:15 a.m. and then meandering sideways the rest of the day.  Meanwhile, SPY and QQQ continued their rally until about 1:45 p.m. before starting their own sideways meanders for the remainder of the session. This action gave us white-bodied candles in all three major index ETFs.  SPY printed a Spinning Top type crossing back above its T-line (8ema).  QQQ could be called a fat body Spinning Top that also gapped up above, retested and stayed above its T-line.  DIA had the weakest candle, with a larger upper wick, but also crossed back above its T-line and closed just a few cents above.  This all happened on below-average volume in all three.

On the day, eight of the 10 sectors were in the green with Technology (+2.14%) way out in front (by more than one percent) leading the rest of the market higher.  At the same time, Utilities (-0.78%) lagged far behind the other sectors.  Meanwhile, SPY gained 0.95%, DIA gained 0.36%, and QQQ gained 1.54%.  VXX fell another 3.24% to close at 13.43 and T2122 climbed but remained in its mid-range at 61.21.  10-year bond yields rose to 4.663% and Oil (WTI) was just on the green side of flat to close at $83.66 per barrel.  So, Friday, the market thumbed its nose at conventional wisdom and took the PCE reading as Bullish.  Or perhaps traders just ignored that data while focusing on strong earnings from MSFT and a great report (a beat), first-ever dividend, and raised forward guidance from GOOGL.  In either case, it was the Bulls’ Day and ended the strongest week for the markets (SPY and QQQ) since November.

The major economic news scheduled for Friday included March Core PCE Index Year-on-Year, which was flat at 2.8% (higher than the forecast 2.6% but in-line with the February 2.8% value).  On a Month-on-Month basis the March Core PCE Price Index was flat as expected at +0.3% (compared to a +0.3% forecast and prior reading).  On the headline number, March PCE Price Index Year-on-Year was hotter than predicted at +2.7% (versus a forecast of +2.6% but up two ticks from February’s +2.5%).  For the Month-on-Month basis, the PCE Price Index was flat, as predicted and seen the prior month, at +0.3%.  At the same time, March Personal Spending remained flat at +0.8% (compared to a forecast of +0.6% and a February reading of +0.8%).  Later, Michigan Consumer Sentiment was down to 77.2 (versus a 77.8 forecast and the previous value of 79.4).  At the same time, Michigan Consumer Expectations were also low at 76.0 (compared to a 77.0 forecast and a previous value of 77.4).  In terms of forward-looking, the Michigan 1-Year Inflation Expectation if up to 3.2% (versus a forecast of 3.1% and well up from the prior +2.9% value).  On the longer-term, the Michigan 5-Year Inflation Expectations are +3.0% (in-line with the forecast of +3.0% but up two ticks from the previous +2.8% reading).

In stock news, on Friday, SBUX and US worker’s union met for contract negotiations.  In other labor news, Reuters reported that MBGAF (Daimler Truck) faces an imminent strike at six US facilities by 7,300 UAW workers if a deal was not reached by 10 p.m. Friday. At the same time, the staff of a Las Vegas CVS facility voted to join a pharmacy union by an overwhelming 87% vote. (The was the first CVS facility to unionize.)  Later, GM announced it is closing manufacturing operations in Columbia and Ecuador. With plans to lay off 850 workers in Columbia and an unspecified number in Ecuador.  At the same time, AAL announced it will have to adjust flights and routes in the second half to adjust for BA 787 jet delivery delays.  (This comes one day after LUV said it will need to shut down operations at some airports for the same reason.)  Later, GOOGL filed a motion with a federal court in VA, asking the court to reject the US government lawsuit accusing it of anticompetitive online advertising practices.  At the same time, LHX confirmed earlier reports that the company will cut 5% of its workforce in a bid to streamline.  After the close, Bloomberg reported that AAPL has re-opened its talks with OpenAI in a bid to catch up to its peers in the AI race.  The talks are aimed toward brining generative AI features to iPhones.  (AAPL is also in talks with GOOGL to license its AI technology named Gemini.)  Late Friday evening, MBGAF did reach a new contract agreement with the UAW.  (Daimler workers will get an immediate 10% raise, with an additional 3% increase in 3-months, then at 6-months, and finally at 12-months after ratification.  There will also be additional cost-of-living increases and profit-sharing. 

In stock legal and governmental news, on Friday, the BRKB subsidiary real estate brokerage reached a $250 million settlement on antitrust litigation related to how realtors are paid.  Later, the NHTSA announced it is investigating TSLA’s 2023 recall related to “Full Self Driving” software, after 20 crashes attributed to that feature have been reported after the software patch.  (The hypothesis is that TSLA’s system meant to ensure the driver remains attentive and in control of the vehicle is lax or faulty.)  The re4call covered 2 million TSLA vehicles (every one ever sold).  Later, by a 2-1 vote a federal appeals court revived a NY state law requiring the provision of affordable high-speed internet to low-income families.  (T, VZ, and industry trade groups had sued to block the 2021 law and r in the original trial.)  At the same time, FAA investigators are looking into an incident Friday where a DAL jet had its emergency slide fall off the plane after takeoff from NY.  The jet involved was a BA 767 enroute to Los Angeles.  Later, the FDIC announced it had sold seized bank FRBK (closed by PA state banking regulators Thursday night) to FULT in order to protect depositors and continue bank operations.   On Saturday.  MBGAF (Mercedes-Benz) announced that the US Dept. of Justice has closed its probe into the company over emissions test manipulation on its diesel engines.

Overnight, Asian markets were green across the board.  Shenzhen (+2.22%), Taiwan (+1.86%), and South Korea (+1.17%) led the region higher.  In Europe, we see a similar picture taking shape with only three of 15 bourses in red at midday.  (Greece at -0.44% was the only appreciable red bourse.)  The CAC (+0.12%), DAX (-0.04%), and FTSE (+0.48%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a green start to the day.  The DIA implies a +0.16% open, the SPY is implying a +0.23% open, and the QQQ implies a +0.33% open at this hour.  At the same time, 10-year bonds are down to 4.624% and Oil (WTI) is flat at $83.88 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include ARLP, BBVA, DQ, BEN, HNI, JKS, ON, RVTY, PHG, and SOFI.  Then, after the close, AMKR, ACGL, CNO, CCK, CWK, CVI, ESI, EG, FFIV, FLS, LOGI, NXPI, PARAA, PARA, SANM, SBAC, ST, SUI, RIG, WELL, WWD, and YUMC report. 

In economic news later this week, on Tuesday we get Q1 Employment Cost Index, Chicago PMI, Conf. Board Consumer Confidence, and API Weekly Crude Oil Stocks.  Then on Wednesday, ADP Nonfarm Employment Change, March Construction Spending, April S&P Global Mfg. PMI, ISM Mfg. Employment, ISM Mfg. PMI, ISM Mfg. Price Index, March JOLTs Job Openings, EIA Weekly Crude Oil Inventories, FOMC Rate Decision, FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, March Factory Orders, and Fed Balance Sheet.  Finally, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Tuesday, we hear from MMM, APD, ATI, AEP, AMT, ARCB, ADM, BGC, EAT, CNP, KO, GLW, DAN, ETN, ECL, LLY, EPD, FELE, IT, GEHC, GPK, HSBC, HUBB, ITW, INCY, KBR, LEA, LDOS, MPC, MLM, MCD, MLCO, TAP, MPLX, NOG, OMF, PCAR, PYPL, PAG, PNM, PEG, QSR, RITM, SIRI, STLA, SCL, SYY, TMHC, THC, TKR, TT, UFPI, ABRA, AMD, AMZN, AMCR, ASH, EQH, BXP, CZR, CC, CHK, CLX, FANG, EIX, EXR, FBIN, HI, INVH, LEG, LFUS, LPLA, LUMN, MATX, MCY, MDLZ, NGD, OI, OKE, PK, PINS, PSNY, PRU, PSA, QUAD, RNR, RSG, RYI, SWKS, SBUX, SYK, SMCI, UNM, and WERN.  Then on Wednesday, AER, ARCC, ADP, AVA, AVT, AXTA, GOLD, BLCO, CG, CRS, CDW, COR, CVE, CENX, GIB, CHEF, CLH, CNDT, CVS, DD, ENTG, ESAB, EL, EEFT, FLEX, FTS, GRMN, GTES, GNRC, GSK, GPN, IDXX, NSP, JCI, KKR, KHC, DRS, LTH, MAR, MA, NBIX, NCLH, OGE, PSN, PFE, PPL, SMG, SLGN, SR, STGW, TRN, TTMI, UTHR, VRSK, WEC, WLK, YUM, ACHC, AFL, ALB, ALL, AFG, AIG, AWK, ANSS, CAR, AXS, BALY, BBSI, BZH, BV, CHRW, CWH, CVNA, CF, CMPR, CTSH, CODI, CTVA, CW, DLX, DVN, DASH, EBAY, ENSG, NVST, ETSY, ES, EXPI, FLSR, FNV, GFL, GIL, THG, HLF, HST, JAZZ, KMPR, MRO, MKL, MET, MGM, MAA, MOS, MUSA, MYRG, PGRE, PTEN, PAYC, CNXN, PTC, QRVO, QCOM, RHP, SIGI, SCI, SFM, SUM, TTEK, TWI, TROX, UGI, VMI, VTR, VICI, ZG, and Z report.  On Thursday, we hear from AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, ZTS, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC.  Finally, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, ARLP, DPZ, HNI, RVTY, and SOFI all reported beats on both the revenue and earnings lines.  Meanwhile, JKS and PHG missed on revenue while beating on earnings.  Unfortunately, DQ missed on both the top and bottom lines.

In miscellaneous news, on Saturday, the China International Capital Corp (one of China’s largest banks) announced it had cut the base pay of 2,000 investment bankers by 25%.  This comes after the bank cut banker bonuses by 40% last year.  On Sunday, TSLA CEO Musk travelled to China to lobby their government for approval to roll out Full Self Driving in that country.  Musk gained approval to remove restrictions (such as automated lane changes) from TSLA vehicles in China, despite safety concerns. Reports are that the large amount of data collected by the cars will be held in China (the key hurdle was approval for “data security”) and the cars will use BIDU’s mapping technology.

With that background, it looks as if the Bulls are gapping all three major index ETFs higher in the premarket. However, all three are also putting in small, indecisive candles since that higher open in the early session. SPY, DIA, and QQQ are all back above their T-line (8ema) at this moment. So, the short-term trend is bullish but not strongly so. 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 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 green with only GOOGL (-1.54%) and META (-1.25%) appreciably lower so far. MEanwhile, TSLA (+11.46%) is soaring on the China FSD approval while that biggest dog (NVDA +0.17%) is just on the green side of flat. Keep in mind that we’ve seen a lot of whipsaw lately. So, be careful not to chase a gap. Also remember that this is a Fed week and end of April, meaning we’ll get April Jobs data on Friday as well as a ton of earnings over the week. There will be a ton of ammunition for “wait and see” and over-reaction on news this week. Be careful.

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 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.

🎯 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

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.

In terms of earnings reports later this week, on Thursday, we hear from 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, XEL, 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.  Finally, 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, 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.

🎯 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 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.

In terms of earnings reports later this week, on Wednesday 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, WSO, 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.  On Thursday, we hear from 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, XEL, 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.  Finally, 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, 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.

🎯 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