Tuesday gave us some divergence between DIA and its broader index ETF peers.  SPY opened down 0.14%, DIA gapped down 0.42%, and QQQ opened up 0.05%.  At that point, SPY and QQQ started a long, slow, but steady rally that lasted until the end of the day.  During that last 30 minutes SPY and QQQ saw some profit-taking.  For its part, after the gap down, DIA rallied (more sharply than the others) to recross its gap by 10:15 a.m. and hitting the high of the day 15 minutes later.  From there, DIA gave us a long, slow, but steady selloff the rest of the day that took it back down into its gap area.  This action gave us white candles with significant wicks in all three major index ETFs.  SPY printed a white, Piercing Arrow, Spinning Top that gapped below and then closed back above its T-line (8ema).  DIA gave us a gap-down, white-bodied, Inverted Hammer candle that retested and failed its T-line from below.  Finally, QQQ printed a large-body white candle with wicks on both ends which retested and passed the test of its T-line from above. This happened on below-average volume in all three of the major index ETFs.

On the day, nine of the 10 sectors were in the red with Utilities (-1.60%) well out in front leading the way lower.  On the other side, Technology (+1.22%) was by far (by more than 1.4 percent) the strongest sector.  Meanwhile, SPY gained 0.16%, DIA lost 0.37%, and QQQ gained 0.96%.  VXX was down slightly to close at 52.48 and T2122 climbed just a little, but remains in the lower-end of its mid-range at 27.06. At the same time, 10-Year bond yields fell back to close at 4.256% while Oil (WTI) was just on the green side of flat to close at $67.49 per barrel. So, Tuesday was a divergent day where Tech drove the QQQ higher on the strength of AMD (+3.96%), META (+2.62%), and AVGO (+4.20%).  Meanwhile, SPY was little changed and poor DIA was dragged lower by bluebloods like HD (-1.94%), KO (-1.66%), and TRV (-1.47%).

The major economic news scheduled for Tuesday included Preliminary September Goods Trade Balance, which came in worse than expected at -$108.23 billion (versus a forecast of -$95.90 billion and the August reading of -$94.22 billion).  At the same time, Preliminary September Retail Inventories showed slower growth than the prior month at +0.1% (compared to August’s +0.5% value).  Later, the October Conference Board Consumer Confidence was much stronger than anticipated at 108.7 (versus a forecast of 99.5 and a September reading of 99.2).  Meanwhile, September JOLTS Job Openings were down (fewer open jobs) to 7.443 million (compared to a forecast of 7.980 million and August’s 7.861 million reading).  Then, after the close, API Weekly Crude Oil Stocks showed an unexpected drawdown of 0.573 million barrels (versus a predicted inventory build of 2.300 million barrels and the prior week’s 1.643-million-barrel inventory increase.)

After the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXC, BXP, EXE, EIX, EXEL, EXR, FMC, GOOG, IEX, LBTYA, LFUS, MCY, MTH, MOD, MDLZ, QRVO, RUSHA, SNAP, SYK, UMBF, and V all reported beats on both the revenue and earnings lines.  Meanwhile, CAKE, CMG, CB, EQT, NGVT, NGD, PK, RSG, and UNM missed on the revenue line while beating on earnings.  On the other side, DVA, FE, RYI, and UIS beat on revenue while missing on earnings.  However, CZR, CHE, EA, FSLR, LSTR, OI, OKE, and WERN missed on both the top and bottom lines. (AMD disappointed with its forward guidance. However, GOOGL’s beat gave hope to all the big tech names as Ad revenue surged and the stock price went up almost 6% in after-hours trading.)

In stock news, on Tuesday, Reuters reported that VLKAF (Volkswagen) Audi division is in talks with a potential investor for its troubled Brussels plant.  (VLKAF announced in July it is considering closing the plant and laying off the 3,000 employees that work at that facility.)  At the same time, ADDYY (Adidas) announced that it saw strong growth in China during Q3 in contrast to rival brands.  The company said that as a result of demand, they have opened 200 new stores in smaller Chinese cities with a goal of getting to 300 stores by the end of year.  Later, Reuters reported that AVGO is working with OpenAI and TSM to create new AI chips.  (This was a relief for AVGO supporters that had been under pressure from fear that OpenAI would create competition for AVGO chips.)  At the same time, the Wall Street Journal reported that V is planning to lay off about 1,400 employees and contractors by the year end. Later, an SEC filing showed that Meme-stock influencer Keith Gill (Roaring Kitty) has liquidated his entire stake in CHWY.  This comes after he took a 6.6% ownership stake of the company in July.  (CHWY was down more than 10% in after-hours trading on the news.)

In stock legal and governmental news, on Tuesday, the news got worse for BA as the Dept. of Defense Office of Inspector General released a report alleging that the company overcharged the Air Force nearly 8,000% for soap dispensers and $1 million for a dozen spare parts.  Later, the US State Dept. approved the sale of $744 million of RTX-made medium-range air-to-air missiles to Denmark.  At the same time, MCD was sued in what is proposed to be a class-action lawsuit stemming from last week’s E.coli outbreak linked to onions on MCD’s Quarter Pounder burgers.  After the close, Reuters reported that BAC is in talks with the CFPB in an effort to settle the agency’s charges related to fraud and scams on the bank-owned Zelle payment app.  (The report said BAC is also considering litigation against the CFPB if a settlement can’t be reached.)

In miscellaneous news, on Tuesday, Reuters reported that sources tell it China is now considering approving $1.4 trillion in additional debt in the next few years, with money earmarked for reviving its economy.  Other news out of the same Chinese government meetings said President Xi urged provincial officials to pursue the reform initiatives that were identified for them.  Xi also “urged” those officials to meet their assigned social and economic targets.  Elsewhere, in Canada, Canadian deputy foreign minister Morrison told Parliament that Indian Home Affairs Minister Shah was the one who authorized a wave of violence (including homicide) while attempting to suppress Sikh activists on US soil. 

In Middle East news, on Tuesday, Hezbollah named cleric Naim Qassem as its new leader.  The Israeli Defense Minister responded by saying that it was a “Temporary appointment…not for long.”  In the streets, Isael conducted 150 airstrikes on Tuesday.  To the north, Israeli strikes killed 82 and wounded many times that number in Lebanon.  Further South, in Gaza, an IDF air attacks killed 110 with dozens more still missing as it collapsed a five-story residential building.

Overnight, Asian markets were almost red across the board.  Only Japan (+0.96%) was in the green, while Hong Kong (-1.55%), South Korea (-0.92%), and Australia (-0.83%) led the region lower.  In Europe, we see the same picture taking shape with only Norway (+0.46%) in the green at midday.  The CAC (-1.39%), DAX (-0.84%), and FTSE (-0.26%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed open.  The DIA implies a -0.20% open, the SPY is implying a +0.12% open, and the QQQ implies a +0.23% open at this hour.  At the same time, 10-Year bond yields are down sharply to 4.218% and Oil (WTI) is up 1% to $67.89 per barrel in early trading.

So far this morning, AER, ADP, AXTA, BLCO, BIIB, EAT, BG, CRTO, EXC, GRMN, GEHC, HUM, JKS, KEX, LKNCY, OMF, OPCH, OSK, PSN, REYN, TEL, TEX, TT, UMC, UTHR, VRSK, and XPO all reported beats on both the revenue and earnings lines.  Meanwhile, CHEF, KHC, and NI missed on revenue while beating on earnings. On the other side, ARCC, CWEN, GPN, GPI, NBIX, SITE, SW, and ZBH beat on revenue while missing on earnings.  However, CAT, CDW, DAN, LLY, MLM, OTIS, and SLGN missed on both the top and bottom lines.

The major economic news scheduled for Wednesday include October ADP Nonfarm Employment Change (8:15 a.m.), Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index (all at 8:30 a.m.), September Pending Home Sales (10 a.m.), and EIA Weekly Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, and ZBH.  Then, after the close, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

With that background, it looks like the market is undecided early this morning. QQQ gapped higher on the strength of GOOGL (+6.64%) earnings and despite the drag from AMD (-7.95%). However it has printed a Doji since that premarket gap. For their part, SPY and DIA opened closer to flat and have also printed indecisive candles in the early session. With QQQ and SPY above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom portion of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green again this morning. As mentioned, AMD is by far (by more than 7%) the anchor on that group while GOOGL is 4% out in front leading the gainers higher in premarket. GOOGL has also surpassed normal leader NVDA (-0.37%) in terms of leading dollar-volume trading. Once again, premarket volume is very light today.

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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Markets opened higher across the major market index ETFs. SPY gapped up 0.60%, DIA gapped up 0.59%, and QQQ gapped up 0.63%.  From there, ground sideways in the top half of its gap, DIA chopped sideways not too far above its opening level, and QQQ was a Bull Trap as it slowly and steadily sold back toward the prior close. This went on the rest of the day.  This action gave us decidedly black-bodied candles in the SPY and QQQ but a white-bodied indecisive candle in the DIA.  SPY gapped up and then printed a black-body candle that approached, but did not retest its T-line (8ema) from above.  QQQ gapped up and then traded back toward its prior close on a large, black-body candle.  Meanwhile, DIA printed a cap-up, white-bodied, Bullish Harami candle that is mostly upper wick.  This happened on well-below-average volume in the SPY and QQQ, but just below-average volume in the DIA.

On the day, nine of the 10 sectors were in the green with Financial Services (+1.43%), Basic Materials (+1.07), and Consumer Cyclical (+1.01%) well out in front leading the way higher.  On the other side, Energy (-0.85%) was by far (by more than 1.2 percent) the weakest sector.  Meanwhile, SPY gained 0.31%, DIA gained 0.70%, and QQQ gained 0.02%.  VXX plummeted 4.67% lower to close at 52.71 and T2122 was dead flat, just outside its oversold territory, to remain at the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields jumped again to close at 4.28% while Oil (WTI) plunged 5.36% on to close at $71.65 per barrel. So, Monday was a blah day in the market where most of the action came at the open (from exuberance over the end of the current round of Israel-Iran direct conflict) but then it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

There was no major economic news scheduled for Monday.

After the close, BRO, CDNS, CWH, CR, ESI, EHC, FFIV, F, QUAD, SKY, UCTT, WELL, and WM all reported beats on both the revenue and earnings lines. At the same time, SBAC and VFC both missed on revenue while beating on earnings. On the other side, AMKR and FLS beat on revenue while missing on earnings.  However, CVI and LEG missed on both the top and bottom line.

In stock news, on Monday, T announced it had signed a $1 billion multi-year deal with GLW to buy fiber and other products.  At the same time, TTE announced it had sold a 50% stake in its Iraqi 1.25-gigawatt solar project to QatarEnergy.  (Financial terms of the deal were not disclosed.)  Later, Bloomberg reported that RUN is in discussions with several datacenter developers to provide solar power.  (RUN is currently strictly in the residential solar business and this would be its entry into the commercial market.) At the same time, Reuters reported that META is building its own AI-based search engine to compete with GOOGL, MSFT (Bing), and ChatGPT’s AI-search.  Later, the head of the VLKAF (Volkswagen) labor union told Reuters Monday that the company has told the union it plans to close three German plants, lay off tens of thousands of workers, and shrink the size of other non-German European plants.

Meanwhile, MCD announced it has begun selling Quarter Pounder burgers again at more than 900 stores across 13 states where they had been pulled from the menu for a week. MCD says the burgers are now being sold without onions and the company has cut ties (at least temporarily) with the vendor of the contaminated onions. At the same time, AAPL released a new phone operating system, an update that includes its previously announced Apple Intelligence AI system.  (This included versions for iPad, iPhone, and Mac.)  At the same time, Reuters reported that RPD has now engaged investment bankers due to buyout talks with private equity firms that have advanced.  The suitors of RPD include EQT, Advent, and BCSF.  Later, WMT announced it is cutting in half the price (from $98 to $49) of its “Walmart Plus” subscription service in an attempt to make up ground on rival AMZN with their Prime service.  After the close, NEE announced it will sell shares to raise $1.5 billion to fund new energy projects. At the same time, Japanese publication Nikkei reported that TM and NPPXF (Nippon Telegraph and Telephone) will jointly invest $3.26 billion in R&D toward AI software for self-driving cars.

In stock legal and governmental news, on Monday, Reuters reported that Indonesia has blocked the sale of AAPL’s iPhone 16 in the country.  The reason is that Indonesia requires that smartphones sold in the fourth-largest population country must have at least 40% locally-manufactured parts.  Later, JPM announced that it has begun suing customers for “check fraud,” alleging the customers improperly withdrew excessive funds to take advantage of a JPM system glitch that temporarily allowed ATM users to withdraw “infinite cash” regardless of account balance. So far, suits have been files against two individuals and two businesses across three cities.  In other JPM news, JPM CEO Dimon blasted several financial regulatory agencies Monday.  Dimon said, “It’s time to fight back.”  He went on to say, “We are suing our regulators over and over and over because things are becoming unfair and unjust, and they are hurting companies.” 

Elsewhere, after the close, the 5^th Circuit Court of Appeals unanimously ruled (3-0) that LUV must face a lawsuit alleging the company illegally intimidated and disciplined pilots who were part of the 9,000-member pilot union.  At the same time, the Dept. of Energy issued another solicitation, this time for another 3 million barrels of crude, to refill the Strategic Petroleum Reserve. Later, the Dept. of Treasury finalized rules that limit US investments into AI and other technologies in China.  The new rules will replace President Biden’s executive orders on the issue as of January 2. At the same time, TPR and CPRI filed notices of a joint appeal of the US District ruling last week that killed their $8.5 billion merger by ruling in favor of the FTC.

In miscellaneous news, on Monday, Reuters reported that if North Korean forces enter into direct fighting against Ukrainians, there would be no new restrictions on the use of US weapons. Pentagon spokeswoman Sabrina Singh said, “A portion of those (North Korean) soldiers have already moved closer to Ukraine, and we are increasingly concerned that Russia intends to use these soldiers in combat or to support combat operations against Ukrainian forces in Russia’s Kursk Oblast near the border with Ukraine.” Elsewhere, BA announced it had raised $21 billion through the sale of 90 million common shares and $5 billion worth of stock warrants all on Monday as the company tries to improve its balance sheet and avoid a credit downgrade to junk status.  Meanwhile, Bitcoin briefly traded above $71,000 Monday for the first time since June.

In Middle East news, on Monday Israel declared the UNWRA agency to be a terrorist organization and essentially threw the UN out of the country.  Israel alleged hundreds (of the thousands) of UNWRA aid workers had ties to Hamas “terrorists” and also that Hamas had military assets in tunnels under UNWRA facilities. Since UNWRA is the group that distributes the vast majority of aid in Palestine and provides a large portion of medical assistance to Palestinians, the ties are inevitable and laws could be another crushing blow aimed at dislodging/ejecting Palestinians. However, the two laws were widely condemned by Western countries and they did not go into effect immediately. So, theoretically, the laws could be another bargaining ploy by Israel or they might be scrapped if other countries apply enough actual pressure on them.  In addition, new milestones of 43,000 Palestinians and at least 2,500 Lebanese killed by Israel since October 7, 2023 were reached Monday.  Elsewhere, Israeli air strikes killed 60 people in Lebanon and destroyed two more border crossings between Lebanon and Syria. After these (and previous) strikes, only three border crossings are still in place between those two countries.

In other war news, the US Dept. of Defense increased its estimate of the number of North Korean soldiers headed to the front lines in the Kursk region. DoD now estimate there are 10k North Korean troops, which is more in-line with foreign government estimates and most reporting.  For its part, Ukraine reported Monday that it has intelligence indicating that 5,000 of those North Korean troops are already headed to the front line in Kursk.

Overnight, Asian markets were mostly in the green.  Just four of the 12 exchanges in the region were below break-even.  Japan (+0.77%), India (+0.52%), and Hong Kong (+0.49%) paced the gainers while Shenzhen (-1.33%), Taiwan (-1.17%), and Shanghai (-1.08%) led the losses.  Meanwhile, in Europe, we see a similar picture with 11 of the 14 bourses in the green at midday.  The CAC (+0.48%), DAX (+0.39%), and FTSE (+0.15%) lead the region higher in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a flat start to the day.  The DIA implies a -0.19%) open, the SPY is implying a -0.06% open, and the QQQ implies a +0.3% open at this hour.  At the same time, 10-Year bond yields are up to 4.296% and Oil (WTI) has rebounded 1.01% overnight to $68.07 per barrel in early trading.

The major economic news scheduled for Tuesday includes Preliminary September Goods Trade Balance and Preliminary September Retail Inventories (both at 8:30 a.m.), October Conference Board Consumer Confidence and September JOLTS Job Openings (both at 10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, and ZBRA.  Then, after the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN report.

In economic news later this week, on Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, GLW, CROX, ESAB, FOR, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PFE, RCL, SOFI, THC, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, AMT. BP, CHKP, HSBC, PYPL, PSX, RITM, and SWK missed on revenue while beating on earnings.  On the other side, INCY beat on revenue while missing on earnings.  However, ABG, DHI, EXP, EPD, GPK, PAG, and XRX missed on both the top and bottom lines. (It is worth noting the HSBC announced a new $3 billion share buyback program after their beat.)

With that background, it looks like the market is undecided early this morning, but is slightly leaning to the Bearish side. All three major index EFTs are not far from Monday’s closing price. DIA has given us the most body in the premarket but is only a quarter of a percent lower than its prior close. For its part, SPY is retesting its T-line (8ema) from above. Both SPY and QQQ are showing more wick than body, indicating indecision, at this point. With QQQ and SPY (barely) above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom of its mid-range, but not yet in the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green this morning. AMD (+0.60%) is leading the gainers while AAPL (-0.52%) is the laggard. NVDA (-0.28%) and TSLA (+0.09%) are neck-and-neck in terms of leading dollar-volume trading. Regardless, it is worth nothing that premarket volume is very light today.

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

See you in the trading room.

Ed

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

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened higher to start the day Friday.  SPY gapped up 0.41%, DIA gapped up 0.38%, and QQQ gapped up 0.58%.  At that point, SPY and QQQ rallied higher for an hour as DIA chopped sideways for the same period.  From there, all three major index ETFs sold off until 2:15 p.m.  Then for the last hour and 45 minutes all three bounced and then fell back to close near the lows.  This action gave us a gap-up, black-bodied, Spinning Top type candle with most of the wick on the top.  It retested from below and failed the test of its T-line (8ema).  At the same time, QQQ printed a gap-up Shooting Star type of candle that crossed back above its T-line.  For its part, DIA gave us a gap-up, large black-bodied, outside day candle that retested the T-line from below and failed.  This happened on average volume in the QQQ and above-below-average volume in SPY and DIA.

On the day, seven of the 10 sectors were again in the red with Utilities (-1.19%) and Financial Services (-1.11%) well out in front leading the way lower.  On the other side, Technology (+0.56%) was by far the strongest sector.  Meanwhile, SPY lost 0.03%, DIA lost 0.62%, and QQQ gained 0.61%.  VXX spiked 4.70% higher to close at 55.29 and T2122 dropped to just outside its oversold territory to the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields rose again to close at 4.24% while Oil (WTI) jumped 2.05% to close at $71.65 per barrel. So, it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

The major economic news scheduled for Friday included the Preliminary Sept. Core Durable Goods Orders, which was up 0.4% (compared to a forecasted decline of 0.1% but down from August’s +0.6%).  On the headline number, Preliminary Sept. Durable Goods was down 0.8% (versus a forecast of -1.1% and flat from August’s -0.8%). Later, Michigan Consumer Sentiment was up to 70.5 (compared to the forecast and Sept. reading of 68.9).  At the same time, Michigan Consumer Expectations were up to 74.1 (versus a forecast and prior reading of 72.9).  On the outlook side, Michigan 1-Year Inflation Expectations were DOWN significantly to 2.7% (compared to a previous value of 2.9%).  Looking even further out, Michigan 5-Year Inflation Expectations stayed flat at 3.0% (with the same 3.0% forecast and prior value).

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

In stock news, on Friday, the Wall Street Journal reported BA is weighing the sale of its space business as part of the process of streamlining and freeing up cash. At the same time, META announced it had signed a partnership with Reuters to use the company’s news content in its AI chatbot.  (Financial terms of the deal were not disclosed.)  Later, NVDA again briefly passed AAPL to become the world’s most valuable company. (Both companies ended the day with roughly a market capitalization around $3.5 trillion.)  MSFT, which had taken that crown in June, closed the session with a $3.18 trillion cap.  Late Friday afternoon, COST recalled private-label salmon products due to listeria risk after a recall from it private meat supplier Acme Smoked Fish Corp. 

In stock legal and governmental news, on Friday, in the UK, London’s High Court ruled in favor of BCS, by reducing a shareholder lawsuit (over misleading investors about its private “dark pool” trading) by more than half.  The ruling reduced the lawsuit amount by $428 million to just under $300 million.  Later, a US District Judge blocked the pending $8.5 billion merger of TPR and CPRI, in a victory for the FTC.  At the same time, a different US District Judge approved a $102 million settlement of the US Justice Dept. civil claim against the owner of the ship that struck the Baltimore Francis Scott Key Bridge, killing six people.  (That amount covered the Federal costs to respond to the wreck and clear the bridge debris. Separately, the state of MD is suing the shipping company for the cost to replace the bridge.) Later, the Nuclear Regulatory Commission announced it has begun the long process of reviewing the restart of CEG’s Three-Mile Island nuclear power plant (after CEG signed a deal to sell the power it would produce to MSFT).

Elsewhere, LYFT agreed to pay $2.1 million to settle FTC charges that it misled prospective drivers about how much money they could earn.  Later, a federal jury found that MASI had violated two AAPL patents with its smartwatches, but did not violate other patents as AAPL had claimed. The damages awarded were a paltry $250 (not $250k, or $2.50 million…just $250, which is an infinitely small portion of what AAPL spent on the suit). This was AAPL’s countersuit to MASI’s 2022 US Intl. Trade Commission complaint that had blocked the import of Apple watches and forced AAPL to remove certain technology before resuming import.  After the close, DAL filed suit against CRWD in GA state court in relation to the global systems outage DAL had suffered in July.

In miscellaneous news, on Friday, there were separate reports the China had targeted the phones of senior members of Vice President Harris’ campaign and her opponent, in what was called a cyber-espionage attack.  This was done by penetrating the VZ phone network.  Elsewhere, the Panama Canal reported a 9.5% increase in annual profit to $3.45 billion despite a severe drought that reduce the number of vessels allowed to transit the canal.  (The canal handled 423 million tons of cargo with an average of 27.3 ships per day transiting the canal.  This was down from 36 ships per day the previous year.  However, a 5% decrease in operating costs and price increases provided for a strong year.) 

Meanwhile, the state of NM released a study on Friday regarding proposed “setback” regulations (which would prevent drilling within 2,250 feet from residential, educations, health or correctional institutions or within 650 feet of streams, lakes, ponds, wetlands, or irrigation infrastructure). The study indicated the proposed regulations would impact 15% of new wells.  (NM is the second-largest oil producing state in the US.  The study said this could eventually curtail up to 5.4% of the stats’s potential future oil output.  This refers to a reduction of increases.) Finally, on Sunday, Japan’s Liberal Democratic Party (which had been in power since 2009) suffered major setbacks and lost its majority in Parliament during Sunday snap elections. (The LDP and its coalition partner only secured 215 seats, with 233 needed for a majority. Prior to Sunday, the LDP and its junior partner party had 279 seats.)  This deals a major blow to PM Ishiba who was elected from withing the LDP and only took office on October 1^st.

In other war news, South Korea increased its estimate of North Korean troops sent to Russia to fight against Ukraine to 12,000.  (The US has said it has proof of 3,000 North Korean troops in training.)  Meanwhile, on Saturday, Norway confirmed that 1,500 of the North Koreans have already been deployed to the lines in the Kursk region. Maybe buoyed by the new source of troops, on Sunday Russia’s Putin said “there would be no trade” to end the war.  Most analysts say this means he isn’t interested in negotiations. Still, less than a week before, Putin said he’d consider any deal that acknowledged the situation on the ground (in other words, any deal that gives Russia all the land it has taken since 2014…there was no word whether that means he’s willing to give up the small area of Kursk now held by Ukraine).

Overnight, Asian markets were mixed but leaned toward the green side.  Japan (+1.82%), South Korea (+1.13%), and Shanghai (+0.68%) led the gainers.  Meanwhile, Thailand (-0.71%) and Taiwan (-0.64%) paced the losses. In Europe, the picture redder at midday with only three of the 14 exchanges in the green. The CAC (+0.18%), DAX (-0.20%), and FTSE (-0.31%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures point toward a gap higher to start the day. The DIA implies a +0.41% open, the SPY is implying a +0.49% open, and the QQQ implies a +0.63% open at this hour.  At the same time, 10-Year bond yields are up to 4.258% and Oil (WTI) has plummeted 5.89% to $67.56 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, CX, CNP, FMX, ON, and PHG.  Then, after the close, AMKR, BRO, CDNS, CWH, CR, CVI, ESI, EHC, FFIV, FLS, F, LEG, QUAD, SBAC, SKY, UCTT, VFC, WELL, and WM report.

In economic news later this week, on Tuesday, we get Preliminary September Goods Trade Balance, Preliminary September Retail Inventories, October Conference Board Consumer Confidence, September JOLTS Job Openings, and API Weekly Crude Oil Stocks.  Then Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Tuesday, we hear from ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, ZBRA, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN.  Then Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, CX and PHG missed on revenue while beating on earnings.  However, ARLP and CNP missed on both the top and bottom lines.

With that background, it looks like the Bulls are indecisively in-charge early in all three major index ETFs. All three opened the premarket higher, but have printed indecisive candles (mostly wick) since that open. SPY is back above its T-line (8ema) leaving only DIA below its own T-line. With that said, two of the three major index ETFs above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back at the bottom of its mid-range, but not yet oversold. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, all 10 are in the red this morning. GOOGL (+2.17%) is leading the rally while TSLA (+0.79%) is the leading dollar-volume trader, nearly doubling the normal biggest dog, NVDA (+1.08%) in dollar-volume traded so far this morning.

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

See you in the trading room.

Ed

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

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Tuesday, markets gapped down at the open.  SPY gapped down 0.44%, DIA gapped down 0.47%, and QQQ gapped down 0.56%. From there, all three major index ETFs slowly rallied to recross their gaps, reaching the highs of the day about 2:05 p.m.  From there, all three pulled back modestly before rallying back toward the highs, only to take profits the last 5 minutes.  This action gave us white-bodied, Spinning Top type candles in all three major index ETFs.  All three retested their T-line (8ema), SPY and QQQ from above and DIA from below…and all three passed that test, closing above.  This happened on below average volume in all three major index ETFs yet again.

On the day, eight of the 10 sectors were in the red with Industrials (-0.91%) out in front, leading the market lower.  On the other side, Consumer Defensive (+0.43%) was well out in front, holding up better than other sectors.  Meanwhile, SPY lost 0.05%, DIA lost 0.01%, and QQQ gained 0.11%.  VXX was just on the red side of flat to close at 51.15 and T2122 dropped again but remains just outside of oversold territory at the bottom of its mid-range at 22.96.  At the same time, 10-Year bond yields rose to close at 4.206% while Oil (WTI) popped 2.38% to close at $72.24 per barrel. So, the Bears gapped the whole market lower, but the Bulls immediately stepped in to buy the dip and slowly bring all three major index ETFs back to flat.

The major economic news scheduled for Tuesday was limited to the API Weekly Crude Oil Stocks report, which showed a larger inventory build than was expected at +1.643 million barrels (compared to a forecasted +0.700 million barrels and the prior week draw down of 1.580 million barrels).

After the close, AGR, EWBC, ENVA, MTDR, PKG, RHI, STX, LRN, TXN, VLRS, and VMI all reported beats on both revenue and earnings. Meanwhile, BKR, CSGP, RRC, PFSI, and WFRD missed on revenue while beating on earnings. However, CNI and NBR missed on both the top and bottom lines.

In stock news, on Tuesday, TGT announced it was lowering the price of 2,000 items ranging from snacks to cold medicine ahead of the holiday season. (The bet is that by lowering the cost of essentials, shoppers will also buy higher-ticket gift items while they are in-store.)  At the same time, Reuters reported that AMZN has imposed severe price caps on what merchants can charge for items in its new low-cost storefront aimed at competing with Temu.  (These include $20 for sofas, but go on to prescribe max prices for 700 items.)  Later Reuters also reported that FIVN is under pressure by a second activist investor (Legion Partners) who is pushing for cost cutting and board seats. At the same time, CG announced it has dropped out of the bidding for the warship unit of German shipbuilder TYEKY (Thyssenkrupp).  Later, AMZN said they were ending same-day delivery service from brick-and-mortar retailers. This ends the program that was touted as “Amazon Today.” The bulk of the deliveries will end by December 2.

Elsewhere, STLA’s Ram brand CEO Feuell told a Reuters event that the company was expanding its Mexican truck plant as a “relief valve” for US factories reaching capacity soon.  (She avoided answering why the company was expanding capacity in Mexico rather than the US, but said the measure “was not a cost-cutting move.”)  At the same time, Reuters also reported that ALTR is exploring a potential sale with potential bidders being competitors PTC and CDNS. Later, WMT announced it will begin delivering prescriptions along with groceries as a single order as quickly as 30 minutes.  (Members of WMT’s $98 membership will get the service for free while non-members will pay $9.95 per delivery.) SJM announced the sale of its Voortman cookie brand to Second Name Brands for $305 million in cash.  After the close, SBUX suspended its annual forecast while the new CEO prepares a turnaround plan.

In AI news, on Tuesday, BLK announced it is tapping into the AI frenzy with two new AI-focused ETFs BAI (iShares AI Innovation and Tech Active) and TEK (iShares Technology Opportunities Active ETF).  Later, Reuters reported that QCOM and GOOGL had signed a partnership to offer chips and software to allow automakers to develop their own AI voice assistants for drivers. At the same time, AMZN-backed AI startup Anthropic announced “AI agents” built to enhance productivity by automating complex tasks.  This is a direct competitor to MSFT’s Co-Pilot-based Agents and yet to be announced offerings from GOOGL and META.

In stock legal and governmental news, on the NHTSA announced HMC 780k vehicles in the US over fuel pump crack concerns.  At the same time, RBLX announced it would open an office in Turkey and hire local-language moderators if the country restores access to its platform.  (A Turkish court blocked RBLX from the country to “ensure protection of our children” in August.)  Later, US Energy Sec. Granholm said the dept. was working as fast as it can to finalize $1.7 billion in EV conversion grants, including $500 million for GM and $585 (two grants for two projects) million for STLA.  At the same time, the FAA finalized comprehensive pilot training and certification rules for flying air taxis such as those from JOBY and ACHR. Later, the SEC approved options listings for three Bitcoin ETFs (not 11 as previously reported).

Elsewhere, the SEC settled fraud charges with shortseller Citron Research associate Left for $1.8 million.  Later, TSM notified the US Commerce Dept. that one of its chips had been found in Huawei’s top-end (widely seen as the most advanced AI smartphone) phone.  This is a violation of US export restrictions, likely through strawman firms who acted as the original buyer of the TSM chips.  After the close, the CDC announced an E, coli outbreak had been linked to MCD quarter pounder burgers that have resulted in one death, 10 hospitalizations, and dozens of illnesses.  (MCD fell 9% in after-hours trading.)  At the same time, a US District Judge ruled in favor of META in a lawsuit over child safety claims due to inadequate disclosures.  Later, WMT agreed to pay $7.5 million to resolve charges of illegally disposing of hazardous medial waste into CA landfills.

In miscellaneous news, on Tuesday, the New York City Comptroller announced a plan to divest NYC pension funds from fossil fuel mid-stream and downstream companies.  Meanwhile, the New York Times reported that JPM CEO Dimon would consider a role in government if Vice President Harris wins the election, but is not making his position known publicly for fear of retribution by her disgraced opponent. Elsewhere, oil-industry analysts pointed out a unique risk factor for CA. The US is by far the world’s largest oil producer (by more than 3 million barrels per day). However, CA has no pipeline access oil from Texas, mid-western, or Ohio Valley oil fields. So, about 60% of CA oil demand is served by oil imports from the Middle East. As a potential Middle East war (and oil flow disruption) lurks ahead of Israeli attacks on Iran, that raises the specter of major cost increases or shortages in CA.  (Even the US Strategic Petroleum Reserve oil if far from CA, located along the TX and LA Gulf Coasts.)  Finally, the IMF said Tuesday that the global battle on post-pandemic inflation is “largely won.”  In an upbeat assessment, the IMF World Economic Outlook said, “In most countries, inflation is now hovering close to central bank targets… The decline in inflation without a global recession is a major achievement.”

In Middle East news, on Tuesday, Israeli attacks in Gaza and Lebanon continued. The IDF seems to be targeting healthcare facilities and homes more. The water supply at the Jabalya refugee camp in Northern Gaza ran out entirely, leaving thousands with no water at all. At the same time, a major Palestinian hospital (the Kamal Adwan Hospital) reported it was completely out of blood and medical supplies as an IDF siege of the facility continues.  Further North, Lebanon reported the most deaths in a single day since the most recent Israeli bombing and invasion campaign began (63 deaths and several hundred wounded).  This included bombing strikes on four Beirut hospital and medic facilities. In addition, several individual ambulances were also blown up.  (All medical facility attacks are war crimes.)  Meanwhile, US Sec. of State Blinken met with Israeli PM Netanyahu for two hours as Blinken tried to get the Israelis to agree to a ceasefire. Sourced, but un attributed, post-meeting reports indicate Israel has rejected the idea of ceasefire again, but will allow more humanitarian aid into Gaza and Lebanon, though not as much as the US and world have demanded. (With Israel completely in control on the battlefield with superior firepower and resources, they want to press their advantage and kill as many of their enemies as possible while they can, regardless of civilian casualties.)

In mortgage news, rates have spiked in recent weeks but remain at 6.52% on average nationally for a 30-year, fixed-rate, conforming loan. Demand for refinance mortgages dropped 8% last week compared to the prior week. Applications for a new home purchase mortgage fell 5%.  Together this meant that total mortgage demand was down 6.7% on the week versus the week prior. 

Overnight, Asian markets were mixed with five of the 12 exchanges in the green.  Thailand (-1.24%) was by far the biggest loser while Hong Kong (+1.27%) was by far the biggest winner.  Meanwhile, in Europe, the bourses are heavily in the red with just two of 14 exchanges showing green at midday.  The CAC (-0.64%), DAX (-0.22%), and FTSE (-0.41%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.47% open, the SPY is implying a -0.20% open, and the QQQ implies a -0.30% open at this hour.  At the same time 10-Year bond yields are up again to 4.228% and Oil (WTI) have dropped 2.15% to $70.20 per barrel in early trading.

The major economic news scheduled Wednesday includes September Existing Home Sales (10 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.), and the Fed Beige Book (2 p.m.).  We also hear from Fed Governor Bowman (9 a.m.).  Major earnings reports scheduled for before the open include APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, and WGO.  Then, after the close, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.

In economic news later this week, on Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, 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 ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, ATLKY, BSX, CME, KO, DB, EVR, HLT, LII, EDU, NTRS, ROP, TMHC, TDY, TRU, VRT, and WAB all reported beats on both the revenue and earnings lines.  Meanwhile, T, AVY, KBR, LAD, LYG, COOP, ODFL, TMO, and TNL missed on revenue while beating on earnings.  On the other side, GEV, NEE, BPOP, and SF beat on revenue while missing on earnings.  However, BA, CSTM, GD, and WGO missed on both the top and bottom lines.

With that background, it looks like the Bears are in charge again early in all three major index ETFs. All three opened the premarket lower and have traded down since then. SPY is retesting its T-line (8ema) from above while DIA is moving away from its own T-line to the downside. With that said, two of the three remain above (barely) their T-line again. So, the broader market short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back in the lower end of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the red this morning. MSFT (+0.50%) is holding up best. However, the biggest dog, NVDA (-0.64%) is leading the majority lower in price move on three times as much dollar-volume as the next closest ticker so far this morning.

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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