Markets opened higher on Friday, gapping up 0.39% in the SPY, opening dead flat in the DIA, and gapping up 0.87% in the QQQ.  At that point, the DIA led the move lower, followed by an indecisive SPY, and finally a QQQ that was bullish the first two hours.  By 11:30 a.m. all three were selling in a jagged fashion the rest of the day. This action gave us black-bodied candles in all three major index ETFs.  The SPY and DIA only had lower wicks (based on the last wave being up the final 15 minutes.  However, the QQQ printed a black-bodied Spinning Top Inside Day candle.  All three remain well below their T-line (8ema).  This happened on just above-average volume in the SPY and above-average volume in the QQQ and DIA.

On the day, eight of 10 sectors were red with Basic Material (+0.11%) and Technology (+0.07%) being the only ones to stay green while Healthcare (-1.89%) and Utilities (-1.83%) led the way lower.  At the same time, the SPY lost 0.45%, the DIA lost a whopping 1.11% (led that way by CVX -6.72%), and QQQ gained 0.48%.  VXX gained 3.32% to close at 27.08 and T2122 fell back into the low end of the oversold territory at 6.22.  10-year bond yields ended the day unchanged at 4.845% while Oil (WTI) rose 2.34% to close at $85.16 per barrel on Middle East war fears.  

The major economic news reported Friday included the September PCE Price Index (year-on-year) of +3.4%, which was in line with the forecast and the August reading.  On a month-on-month basis, this was +0.4% (compared to a forecast of +0.3% but in line with the August reading of +0.4%).  Later, Michigan Consumer Sentiment came in better than expected at 63.8 (versus a forecast of 63.0 but down from the September reading of 68.1).  At the same time, Michigan Consumer Expectations came in lower than predicted at 59.3 (compared to a forecast of 60.7 and the September value of 66.0).  Meanwhile, the Michigan 1-year Inflation Expectation was very high at 4.2% (compared to a forecast of 3.8% and a September reading of 3.2%).  Further out, the Michigan 5-year Inflation Expectation was in line with predictions at 3.0% (versus a forecast of 3.0% but up from the September value of 2.8%).

In Autoworker contract talks and strike news, following Wednesday’s settlement with F, the UAW held nearly non-stop negotiation sessions with STLA and GM on Thursday and Friday.  Both the CEO of GM and the President of the UAW participated in the round on Friday.  As of Friday evening, a deal was said to be close, as both companies agreed to the same 25% pay increase that F agreed to earlier but talks continued.  At the same time, the union at F began returning to work Friday, ending the 6-week strike.  (As a side note, F announced Friday that the strike had cost the company $1.3 billion.) Then on Saturday evening, the UAW announced it had reached a tentative deal to end the strike against STLA.  (Reportedly, UAW President Fain had turned his focus to GM after focusing more on STLA on Friday.)  However, by Saturday evening, GM was still refusing on issues F and STLA agreed.  So, the UAW increased the strike by having 4,000 workers walk off the job at GM’s Spring Hill TN assembly plant (GM’s largest US plant).  Early today, the Canadian Autoworker Union (Unifor) called a strike of more than 8.200 workers against STLA up North.  (Unifor already reached deals with F and then after a 12-hour strike with GM. In last-minute news, STLA also settled with Unifor after about 12 hours of that strike.)  In tangentially related news, back in the US, F said it was postponing a $12 billion investment in EV manufacturing expansions. GM had also delayed the opening of a second EV truck plant and canceled a joint project between itself and HMC aimed at making sub-$30k EVs for the global market.

In stock news, GM announced it had decided to suspend operations of all its Cruise driverless robotaxis amid safety concerns.  At the same time, UPS announced it is buying the “Happy Returns” unit from PYPL.  UPS said the purchase of Happy Returns and a previously announced deal to buy MNX Global Logistics will total more than $1 billion.  Later, Reuters reported that merger negotiations between WDC and Japan’s Kioxia have stalled.  At the same time, DUK announced it would build an end-to-end “Green Hydrogen” energy plant in FL.  The plant will split water into hydrogen and oxygen using solar power to generate the electricity needed and is expected to be operational in 2024.  Elsewhere, JPM announced that CEO Dimon will be selling 1 million of his 9.6 million shares of JPM in a strategic diversification move.  Later VLKAF (Volkswagen) said it is cutting 2,000 jobs and has pushed back the release of its Porsche Macan EV until 2024.  After the close, BA announced it is assessing a claim made by a cybercrime gang (Lockbit) that the group had “a tremendous amount” of sensitive BA data and would dump the data to the public if the company did not pay a ransom by Nov. 2.  Then on Friday evening, GOOGL announced it is investing $2 billion in Anthropic (a competitor to MSFT-backed OpenAI) to further its presence in the AI market.

In stock government, legal, and regulatory news, On Friday, GOOGL announced its CEO would testify today in the US antitrust case against the tech giant.  Later, ABBV said it is taking a $2.1 billion charge related to and ahead of its negotiations with Medicare over its leukemia drug.  Elsewhere, NSC announced it has begun installing AI-based safety inspection portals at a dozen locations on its tracks.  The portals will use high-speed cameras and AI software to do safety inspections while trains keep moving.  This comes in response to EPA and FRA pressure following the railroad’s Feb. derailment and mass chemical spill in East Palestine OH.  Later, Reuters reported that the Argentine government had filed a motion with a US District judge asking that the judge stay the enforcement of a $16.1 billion judgment over the nationalization of a then minority state-owned oil company (YPF).  The judgment was due to REPYY, which had a 51% stake in the company.  By mid-afternoon, ANF was sued for ignoring a sex-trafficking ring run by former CEO Mike Jeffries, who allegedly lured young men in using the promise of becoming models for the ANF brand.  After the close Friday, JNJ announced that the Dept. of Justice has sought documents and information related to the drugmaker’s eye surgery products in connection with a DOJ civil (not criminal) investigation. Finally, early today President Biden announced a new executive order aimed at putting some guardrails on AI. The order calls for the Commerce Dept. to create safety and security standards covering AI. The order also aimed at protecting consumer data, watermarking AI-created content, and providing guidance to landlords and federal contractors to avoid unfair discrimination based on AI model training deficiencies.

Overnight, Asian markets were mixed but leaned toward the green side.  Shenzhen (+1.61%) was far and away the leader for the bulls while Japan (-0.95%) paced the four losing exchanges.  Meanwhile, in Europe, the bourses are nearly green across the board at midday.  Only Portugal (-0.07%) is in the red as the CAC (+0.71%), DAX (+0.58%), and FTSE (+0.76%) lead that region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a gap higher at the open.  The DIA implies a +0.58% open, the SPY is implying a +0.64% open, and the QQQ implies a +0.77% open at this hour.  At the same time, 10-year bonds are at 4.886% and Oil (WTI) is down 1.37% to $84.37 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled before the open include ACDVF, BGC, CHKP, CAN, DQ, HSBC, JKS, MCD, ON, RVTY, SOFI, WDC, and XPO.  Then, after the close, AMKR, ACGL, ANET, CACC, CWK, CVI, FMC, PEAK, KMPR, LEG, MATX, MPWR, NEXA, PINS, PSA, QGEN, RYI, SPG, THC, RIG, VFC, and WELL report.

In economic news later this week, on Tuesday we get Q3 Employment Cost Index, Chicago PMI, Conf. Board Consumer Confidence, and API Weekly Crude Oil Stocks Report.  Then Wednesday, ADP Oct. Nonfarm Employment Change, S&P US Mfg. PMI, ISM Oct. Mfg. Employment, ISM Oct. Mfg. PMI, ISM Oct. Mfg. Price Index, Sept. JOLTs Job Openings, EIA Crude Oil Inventories, FOMC Rate Decision, FOMC Statement, and the Fed Chair Press Conference are reported.  On Thursday, we get Weekly Initial Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Factory Orders, and Fed Balance Sheet.  Finally, on Friday Oct. Nonfarm Payrolls, Oct. Private Nonfarm Payrolls, Oct. Participation Rate, Oct. Unemployment Rate, Oct. Avg. Hourly Earnings, S&P Global Services PMI, S&P Global Composite PMI, Oct. ISM Non-Mfg. Employment, Oct. ISM Non-Mfg. PMI, and Oct. ISM Non-Mfg. Price Index are reported.

In terms of earnings reports later this week, on Tuesday we hear from AGCO, ALLE, AME, AMGN, BUD, ARES, BCC, BP, CCJ, CAT, CEIX, DORM, ETN, ECL, EPD, BEN, GEHC, GVA, GPK, GPRE, HNI, HUBB, INCY, NSP, IGT, JBLU, LDOS, LGIH, MPC, MPLX, MSCI, PFE, PEG, ST, SIRI, SFM, STLA, SYY, BLD, UFPI, WEC, XYL, and ZBRA, AMD, AMCR, AIZ, EQH, BXC, CZR, CGAU, CHK, ENLC, EQR, FSLR, HUN, HY, JBSS, LBTYA, LFUS, LUMN, MTCH, MCY, MTH, OI, OKE, SON, TX, UNM, VOYA, and YUMC.  Then Wednesday, ALIT, APO, AXTA, BLCO, EAT, BIP, BLDR, CDW, CHEF, CLH, CVS, DRVN, DTE, DNB, DD, ETR, ESAB, EL, FTDR, FYBR, GRMN, HUM, IDXX, IQV, JHG, KMT, KHC, LPX, MLM, NMRK, NI, NCLH, PSN, QUAD, SGEN, SITE, SPR, SUN, SPWR, TEL, TRI, TKR, TT, TRMB, TTMI, UTHR, VRSK, W, YUM, AFL, ABNB, ALB, ALL, ATUS, AFG, AIG, AWK, APA, ACA, CAR, AVT, AXS, BALY, BMRN, BKH, BXP, BFAM, BWXT, CHRW, CRC, CPE, CWH, CF, CAKE, CLX, COKE, CTSH, CW, DASH, DXC, EIX, EA, ET, NVST, ETSY, EXAS, EXEL, GFL, THG, HLF, HST, IR, LNC, MTW, MRO, VAC, MCK, MELI, MET, MKSI, MOD, MDLZ, MUSA, NOG, NUS, NTR, PYPL, CNXN, PRU, PTC, QRVO, QCOM, QDEL, RRX, RNR, REZI, ROKU, SIGI, SCI, SBGI, SEDG, SUM, RUN, SMCI, TS, TYL, VSTO, WTS, WERN, WES, WMB, WSC, and Z report.  On Thursday we hear from GOLF, ADT, WMS, ATI, ALGT, AMR, AEP, APG, APTV, ARW, AVNT, BALL, GOLD, BHC, BAX, BCE, BDC, BWA, BR, CNQ, FUN, CVE, LNG, CI, CIGI, COP, COR, CPG, CROX, CMI, DLX, XRAY, DUK, LLY, ENTG, NVRI, EPAM, EXC, RACE, FOXA, GIL, DINO, HWM, HII, H, NSIT, ICE, IRM, ITRI, ITT, JLL, KBR, KTB, LAMR, DRS, MKL, MAR, MDU, MRNA, TAP, MUR, NVO, DNOW, NRG, OGE, OGN, PLTR, PZZA, PARA, PH, PBF, MD, PTON, PENN, PNW, PBI, PPL, PRMW, PWR, RCM, REGN, ROK, SPGI, SABR, SNDR, SEE, SHEL, SHOP, SO, STGW, TRGP, TFX, TPX, TRN, UPBD, VNT, WEN, WCC, WLK, ZTS, ACHC, ACCO, AES, AGL, ASTL, LNT, COLD, AMN, AAPL, TEAM, BECN, SQ, BKNG, CVNA, CVCO, COIN, CODI, ED, BAP, DKNG, DBX, EVH, EXPI, EXPE, FND, FTNT, GDDY, ACFI, LYV, MTZ, MCHP, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PBA, PXD, RGA, RKT, RYAN, SBAC, SEM, SWKS, SM, SWN, SBUX, SYK, and VTR.  Finally, on Friday, AMCXM AXL, BSAC, BLMN, BBU, BEPC, BEP, CAH, CBOE, CHD, CNK, CRBG, D, ENB, EOG, FLR, FWONK, FWONA, IT, GTES, IEP, KOP, LSXMK, LSXMA, MGA, OMI, PAA, PAGP, PRVA, QRTEA, QSR, SRE, TDS, TIXT, USM, WPC, and TSE report.

In interesting real estate news from North of the border, Canadian PM Trudeau has been under pressure about the tight housing market in Canada.  As a result, Trudeau introduced measures to tighten the criteria colleges apply to their international students starting in the fall of 2024.  Colleges that meet the higher criteria will be given priority in the processing of student visas requested by their international students.  In effect, the idea is to reduce the number of international students in Canada, thereby freeing up housing for native Canadians.

In miscellaneous news, Israel expanded its ground invasion of Gaza on Friday and the expansion of that attack continued Saturday and Sunday.  Meanwhile, on an interesting side note, since 1950, October 28 has statistically been the best single day of the year in terms of bullish market gains.  So, of course, October 28 came on a Saturday this year. (For the record, the worst market day of the year is statistically Oct 19…just nine days prior to the best day.)  Elsewhere, tonight (8 p.m. Eastern) Bloomberg reports AAPL will unveil eight M3 CPUs (built on TSM’s 3nm process fab) with eight, 12, or 16 processing cores (both efficiency and performance cores) and 10, 18, or 40 graphics processing cores.  They will also launch a 24-inch iMac using the new M3 chips and a new MacBook Pro.

So far this morning, ACDVF, BGC, CHKP, CAN, JKS, L, MCD, SOFI, and XPO all reported beats on both the revenue and earnings lines.  Meanwhile, HSBC missed on revenue while beating massively on earnings (+194% quarter-on-quarter).  However, DQ and RVTY missed on both the top and bottom lines.  (ON and WDC report at 8 a.m.)  It is worth noting that SOFI raised its forward guidance.  In addition to the HSBC growth, JKS had 59% earnings growth on just 4% revenue growth.

With that background, it looks like the Bulls are in control in the premarkets this morning. All three major index ETFs gapped higher at the open of the early session with the large-cap indices printing small, white-bodied candles. However, the QQQ gapped higher and the Bulls have continued to run, giving us a large, white-bodied candle with very small wicks this morning. With that said, keep in mind that all three remain well below their T-line (8ema) and also down 9%-10% from the summer highs. Once again, we have no really major economic news today and with the Fed and Q3 Payrolls later in the week, it would not be surprising for markets to drift while they wait on more news. In terms of that extension, all three major index ETFs are back a bit extended down below their T-line (8ema). The T2122 indicator is also in the lower end of its oversold territory. So a pause or relief rally may well be in order. Just remember that the market can remain extended longer than we can stay solvent betting that it has to turn. Finally, the only thing we can say for sure is the Bears maintain control of the trend.

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 absolutely 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 money is real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped higher Tuesday at the open (up 0.51% in the SPY, up 0.50% in the DIA, up 0.52% in the QQQ).  At that point, all three market index ETFs drifted higher until 11:00 a.m.  Then the whipsaw began with a selloff until 1 p.m. before running back up until 3:45 p.m. when we saw a mild selloff for the last 15 minutes of the day.  This action gave us indecisive candles in all three major index ETFs.  All three printed some form of a white-bodied Spinning Top candle.  However, the QQQ also printed a form of a Morningstar signal on that candle.  Still, all three remain above their T-line (8ema) and SPY crossed back above the 200sma.  This happened on well-below-average volume in the QQQ and SPY and just-below-average volume in the DIA.

On the day, nine of 10 sectors were green with Utilities (+2.03%) and Communications Services (+1.97%) being way out front leading the way higher while Energy (-0.07%) was the only sector in the red.  At the same time, the SPY gained 0.75%, the DIA gained 0.64%, and QQQ gained 0.97%.  VXX fell 4.54% to close at 24.39 and T2122 climbed but remained in its oversold territory at 12.21.  10-year bond yields fell again to 4.819% while Oil (WTI) dropped another 1.91% to close at $83.86 per barrel.  So, on Tuesday the market was a whipsaw again.  There was a gap higher at the open, a morning selloff that nearly recrossed the gap, and then an afternoon rally that took us back toward the highs of the day.  With that said, once again there was no change in character the real character of the market and continued indecision among the major index ETFs.

The major economic news reported Tuesday included the Preliminary S&P Global Mfg. PMI, which came in a bit higher than expected at 50.0 (compared to a forecast of 49.5 and a reading 2 weeks ago of 49.8).  At the same time, the Preliminary S&P Global Services PMI came in well above anticipated at 50.9 (versus a forecast of 49.8 and even above the 2-week-old reading of 50.1).  Combined, the Preliminary S&P Global Composite PMI was 51.0, which is up from the 50.2 reported two weeks ago.  It is worth noting that on all of these numbers, a value above 50.0 indicates expansion while a value less than 50 indicates contraction.  So, the global economy appears to be ever-so-slightly expanding when it was expected to be contracting.  Later, after the close, the API Weekly Crude Oil Stocks report showed a 2.668-million-barrel reduction in inventories (compared to a forecast of a 1.550-million-barrel increase but still only about half of the prior week’s 4.383-million-barrel drawdown).

In Autoworker contract talks and strike news, GM removed all forward guidance as part of their Q3 reporting.  At the same time, GLW (who missed) cited the ongoing strike against the Big 3 automakers as part of the reason for poor results and reducing their forward guidance.  (GLW makes windshields and emission control systems for GM, F, and STLA among other automakers.)  ITW also made similar claims related to the strike impacting their future prospects.  Later the UAW announced it has struck a GM plant in Texas that builds the company’s most profitable SUVs.  (This strike doubles the cost of the strike on GM to $400 million/week.)  Later, STLA laid off 535 additional workers after their Ram truck plant was struck earlier this week. 

In stock news, CNBC reported Tuesday that AMZN is considering a move to follow WMT into the veterinary telemedicine market.  (WMT signed a deal with veterinary telemedicine provider Pawp and CNBC reports AMZN is considering the same move.) At the same time, LIAN reaped a $350 million windfall (and also voided $127.5 million in future LIAN expenses) after terminating its deal with BMY related to FDA-approved heart medication.  BMY was forced to pay that $350 for exclusive rights to the drug in Asian markets.  (LIAN shot up to close 117% higher on the day.)  Later, Reuters reported STLA has entered a deal with French nuclear fuels firm Orano to recycle EV batteries and scrap materials.  At the same time, NVDA said new US export restrictions on high-tech sales to China were sped up and went into effect Monday.  (The original scheduled was Nov. 16, but the Biden Administration wanted to head off massive last-minute sales by the tech giants.)  AMD and INTC are also impacted by the export ban to China, Iran, and Russia.  In other chip news, Reuters reported Tuesday that QCOM has outlined details of a Windows-based laptop based on a QCOM ARM-based CPU that will be released in 2024 which will include enough processing power for AI applications like summarizing emails, writing text, and generating images.  (It would be a massive leap for a laptop to have the processing power to handle that sort of AI, but they claim it will support models with 13 billion parameters.)   Elsewhere, CADE said it has sold its insurance brokerage business to AJG for $904 million. At the same time, EPOW revealed it’s in negotiations with Dutch LG Energy and the Abu Dhabi Investment Fund regarding a lithium battery material production facility in the Middle Eastern country.  The proposed project would produce 50,000 tons of anode material per year. 

In stock government, legal, and regulatory news, ACB has settled its patent breach suit against CANSF in a confidential settlement.  Later, Reuters reported TEF and VOD drew the short straws as French telecom group Orange chose Romanian firm Digi to buy assets the company was divesting.  This selection was made to avoid EU antitrust concerns that would be raised if TEL or VOD bids were chosen.  At the same time, Reuters reports that evidence (internal safety reports) was presented in court showing that TSLA was aware of an Autopilot malfunction two years prior to a fatal crash.  The suit seeks $400 million plus punitive damages and is the first TSLA Autopilot case to make it to trial.  Elsewhere, 33 states’ Attorneys General filed suit against META and its Instagram unit for misleading the public and knowingly creating features designed to become addictive to children, causing mental health problems.  Shortly afterward, the District of Columbia and eight other states filed a separate but nearly identical suit which brought to total to 41 states and DC.  At the same time, JBLU asked the US Dept. of Transportation to ban Air France’s KLM from NY JFK airport if a Dutch government cap on flights to one of its airports takes place.  (The Dutch plan to reduce flights by 10% from 2019 levels starting in 2024 to reduce noise pollution.  This would effectively ban JBLU from that airport.)   Meanwhile, NWG faces a lawsuit from former CEO Rose after the bank canceled her previously awarded but not yet vested 2.5 million shares of stock worth millions of dollars.  In mid-afternoon, the state of CA DMV ordered GM Cruise driverless cars off state roads, saying they are a safety risk.   After the close, the SEC announced that BLK had agreed to pay $2.5 million for failing to accurately describe investments made in the entertainment industry.  Tuesday afternoon, AAPL announced they are now backing the Biden Administration’s call for a “Right to Repair” law that has been pushed by FTC Chair Khan.  (Of course, Congress determines what laws are passed.  So, publicly supporting a proposal can easily be offset by some lobbying inside the halls of Congress.)

After the close, GOOGL, CB, WIRE, FFIV, GOOG, LRN, MTDR, MSFT, RHI, RUSHA, SNAP, UMBF, V, and WFRD all reported beats on both the revenue and earnings lines.  Meanwhile, BYD and ENVA beat on revenue while missing on earnings.  On the other side, RRC, TDOC, and WM missed on revenue while beating on earnings.  Unfortunately, CNI, CHX, CSGP, HA, and TXN all missed on both the top and bottom lines.  It is worth noting that CHX, TDOC, and TXN lowered their forward guidance.  However, LRN raised its guidance.

Overnight, Asian markets were mixed but leaned to the upside.  South Korea (-0.85%) and India (-0.83%) paced the losses while Thailand (+0.77%) and Japan (+0.67%) led the more numerous gainers.  In Europe, we see the opposite picture taking shape at midday with more bourses in the red than in the green.  The CAC (-0.18%), DAX (-0.09%), and FTSE (+0.06%) are typical of the continent in early afternoon trading.  In the US, at 7:30 a.m., Futures are pointing toward a mixed open leaning to the downside.  The DIA implies a +0.13% open, the SPY is implying a -0.32% open, and the QQQ implies a -0.57% open at this hour.  At the same time, 10-year bond yields are back up to 4.863% and Oil (WTI) is off another quarter of a percent to $83.53 per barrel in early trading.

The major economic news scheduled for Wednesday includes Building Permits (8 a.m.), September New Home Sales (10 a.m.), and EIA Weekly Crude Oil Inventories (10:30 a.m.).  We also hear from Fed Chair Powell at 4:35 p.m.  The major earnings reports scheduled for before the open include ALFVY, APH, ATLKY, ADP, AVY, BA, BOKF, CME, CSTM, EVR, FTV, GD, GBX, GPI, HES, HLT, LTH, LAD, MHO, MCO, MSM, EDU, NSC, ODFL, OMF, OPCH, OTIS, OC, PAG, PRG, RDUS, ROP, R, SLGN, TMUS, TMHC, TDY, TMO, TNL, UMC, VRT, WNC, and WAB.  Then, after the close, AEM, ALGN, ALSN, AMP, NLY, AR, ATR, ASGN, AVB, AGR, BKR, BHE, CACI, CP, CLS, CCS, CHE, CHDN, CMPR, CYH, EW, ESI, EQT, EQIX, EG, FLEX, FLS, FBIN, GL, GGG, ICLR, IEX, IBM, INVH, KALU, KLAC, LSTR, MAT, META, MAA, MOH, MYRG, NBR, NXT, ORLY, OII, PPC, PLXS, RJF, ROL, SEIC, NOW, STC, SUI, TER, TNET, TROX, URI, UHS, VMI, VICI, WCN, WFG, WU, and WHR report.

In economic news later this week, on Thursday, we get September Durable Goods Orders, Preliminary Q3 GDP, Preliminary Q3 GDP Price Index, September Goods Trade Balance, Weekly Initial Jobless Claims, Sept. Retail Inventories, Sept. Pending Home Sales, and we hear from Fed member Waller.  Finally, on Friday, Sept. PCE Price Index, Sept. 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, AOS, MO, AMT, AIT, ARCH, AMBP, BSX, BFH, BMY, BC, BG, CRS, CARR, CX, CNP, CMS, CMCSA, CFR, EXP, EME, FAF, FCNCA, FSV, ULCC, FCN, HOG, HAS, HSY, HTZ, HON, IP, KVUE, KDP, KEX, LH, LAZ, LEA, LII, LIN, LKQ, MDC, MAS, MA, MRK, NYCB, NEM, NOC, ORI, OSK, PATK, BTU, PCG, BPOP, RS, RCL, STX, SAH, LUV, STM, FTI, TXT, TTE, TSCO, TPH, UPS, VLO, VLY, VC, VMC, GWW, WST, WEX, WTW, AB, AMZN, AJG, BIO, SAM, COF, CSL, CC, CMG, CINF, COLM, DECK, DXCM, DLR, EMN, EHC, ENPH, ERIE, FE, F, HIG, HUBG, INTC, JNPR, LHX, LPLA, MTX, NOV, OLN, PFG, RSG, RMD, SKX, SKYW, SSNC, TEX, TXRH, X, VALE, WY, and WKC report.  Finally, on Friday, we hear from ABBV, AER, ARLP, AON, ARCB, AN, AVTR, BAH, CBRE, GTLS, CHTR, CVX, CL, DAN, EQNR, XOM, FMX, FTS, GNTX, IMO, LECO, LYB, NWL, NVT, PSX, POR, SAIA, SNY, SWK, TROW, and XEL.

In US Congressional news, the circus continued Tuesday.  After four more ballots, the House GOP Caucus selected Rep. Emmer as its nominee to be Speaker.  Emmer then requested a secret ballot to see how many would actually vote for him.  He lost 26 of the extreme MAGA members, putting him in roughly the same boat as McCarthy was in three weeks ago.  So, after a few hours of attempting to whip GOP votes, he too withdrew himself from consideration.  This put the GOP back in the same boat they’ve been in since the MAGA coup against McCarthy.  After a few more hours of spit-balling potential nominees, by mid-evening, some GOP members were floating a “Tag-Team of McCarthy-Jordan as joint-Speaker.”   However, Constitutionally, the job is singular (not a two-person job) including only one person being second in line of Presidential succession.  At the same time, Democrats sat back and reveled in the schadenfreude as the country continued to be a laughing stock to the world and no Congressional business even gets attempted.  (It is apparently beyond the pale for Democrats to approach moderate Republicans saying they’d back one of them OR for moderate Republicans to approach Democrats offering to back Jeffries, since the GOP still has the votes if he tries to get out of line)  In short, your tribe is still more important than your party and your party is still more important than the country in D.C.)  Regardless, late Tuesday night, the GOP decided to nominate Rep. Johnson (of LA) as Speaker and take his name to the floor for a vote.  The GOP did take a roll call vote in private on how many of their caucus would support the fifth choice for the job, but by that point of the night, more than 20 of their caucus had already gone home. So, the drama remains as to whether GOP Choice number five will can get elected Speaker, and if so whether he will have enough support to work around the extremists in his own party (let alone dealing with Representatives across the aisle.

In miscellaneous earnings news, it’s interesting that even though GOOGL posted strong earnings after the close, beating on both lines and showing 11% quarter-on-quarter revenue growth, post-market traders jumped on the fact its cloud computing unit reported $20 million lower-than-expected revenue. (Bear in mind that this sub-unit missed by $20 million on a report of almost $77 billion in total revenue. Talk about splitting hairs.) So, despite a strong report, GOOGL stock was down as much as 6.5% in after-market trading on their beats.

So far this morning, ATLKY, ADP, CME, GD, GPI, HLT, MCO, MSM, NAVI, EDU, ODFL, OMF, OTIS, PRG, ROP, TMUS, TMHC, TELNY, TNL, UMC, and WAB all reported beats on both the revenue and earnings lines.  Meanwhile, ALFVY, AVY, CSTM, OC, SLGN, TDY, TMO, VRT, and WNC all missed on revenue while beating on the earnings line.  On the other side, EVR, GBX, LAD, and PAG beat on revenue while missing on earnings.  Unfortunately, LTH missed on both the top and bottom lines.  It is worth noting that AVY, LTH, EDU, SLGN, and TDY lowered their forward guidance.  At the same time, PRG, ROP, TMHC, VRT, and WAB all raised their guidance.

In mortgage news, the Mortgage Bankers Assn. reports mortgage loan applications fell just 1% last week, even as the rate for a 30-year, fixed-rate, conforming loan shot up from 7.70% to 7.90% on average.  Refinancing loan applications increase 2% from the previous week while new home purchase loan applications fell 2%.  MBA noted that the percentage of loans sought which were adjustable-rate increased to 9.5%.  (The average 5/1 ARM loan was at a 6.99% rate for the week, skyrocketing from 6.52% the week prior.)

With that background, it looks like markets are undecided again this morning. All three major index ETFs are printing small, white-bodied, Spinning Top type candles in the premarket. However, the DIA gapped up a bit before forming its Spinning Top while the SPY and QQQ gapped down before forming their own. With that said, keep in mind that all three remain well below their T-line (8ema) and the SPY is just below its 200sma. Once again, we have no really major economic news today and Fed Chair Powell does not speak until after hte close. So, beware of more whipsaw and don’t be surprised if intraday moves are reversed in just a short period. (There does not seem to be strong momentum from either side.) In terms of that extension, all three major index ETFs are back to being near their T-line (8ema) and none are extended. The T2122 indicator does remain in the middle of its oversold territory, but it has moved up off the very bottom. So, we may need a little more pause or bounce to relieve pressure, but we are not overly stretched. The only thing we can say for sure is the Bears maintain control of trend.

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 absolutely 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 money is 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

Monday brought us a gap lower at the open (down 0.38% in the SPY, down 0.38% in the DIA, and 0.39% in the QQQ).  This was followed by 15 minutes of follow-through by the Bears in all three major index ETFs.  However, then the Bulls said “enough” and rallied all three until 1 p.m.  Then it was the Bears’ turn to say “Not so fast, my friend” to lead a selloff the rest of the day.  This action gave us indecisive candles across the board.  All three of the major index ETFs flirted with printing a Piercing Arrow candle before melting back.  The SPY printed a white-bodied Doji-type candle.  At the same time, the QQQ printed a white-bodied Spinning Top candle, and the DIA remained the weakest of the three, printing a black-bodied Inverted Hammer candle. All three remain well below their T-line (8ema).  This happened on just about average volume in the SPY, DIA, and QQQ.

On the day, nine of the 10 sectors were in the red with Technology (+0.04) being the only sector to (barely) remain in the green.  Meanwhile, Energy (-1.44%) was way out front leading the other sectors lower.  At the same time, the SPY was down 0.17% (closing in its opening gap), the DIA lost 0.56% (closing below its opening gap), and QQQ gained 0.30% (closing above its gap down).  VXX fell 3.48% to close at 25.54 and T2122 climbed slightly but remained at the bottom of its oversold territory at 1.89.  10-year bond yields fell significantly to 4.85% (after being above 5.021% early in the day) while Oil (WTI) dropped 2.27% to close at $86.08 per barrel.  So, on Monday the market was a whipsaw.  There was a gap lower at the open, a strong morning rally until 1 p.m., and then a strong selloff the rest of the day.  With that said, there was no change in character for the market and not much change in the major index ETFs.

There was no economic news reported Monday.

In Autoworker contract talks and strike news, the UAW and defense contractor GD reached a tentative labor contract Monday. This deal avoided a strike of GD. In another aside, metal workers in Brazil announced they will strike GM next Monday.  This strike by 4,000 workers comes after 1,200 of their fellow workers were laid off by GM.  (That plant makes engines and gearboxes for S-10 pickup trucks.)  Later, the UAW added roughly 6,800 more STLA workers to the strike, all located at the STLA Ram full-sized pickup plant in a Detroit suburb.  UAW President Fain said STLA’s offer is the weakest among the big three in terms of wage progression (time in a pay tier), temp worker pay, cost of living adjustments, etc.  (UAW negotiators told CNBC that two major issues that STLA has not addressed at all is their discussion to move Ram production from the US to Mexico and the closing of an IL plant earlier this year.)  This was the first expansion of the strike in two weeks.  STLA said it was “outraged that the UAW has chosen to expand its strike action against the company” and going on to cite its recent improved offer.  (Industry analysts say all three of the automakers have roughly 100 days of inventory of their best-selling pickup trucks.)  It is worth noting that GM reported a $3.1 billion quarterly profit and also removed its forward guidance altogether ahead of impacts from the strike.

In stock news, LICY plummeted Monday to close down almost 46% after the company suspended construction of its hub in Rochester, NY.  At the same time, FSR said it is significantly cutting the price of its Ocean Extreme SUS.  The announced price cut is 11% ($7,500).  Elsewhere, MSFT announced it will spend $3.2 billion in Australia to expand its AI and cloud computing capacity in that country.  The move is widely seen as a carrot that can be taken back ahead of Australia’s coming AI regulation (which is now in the public comment period).  The announcement said MSFT will train 300k Australians in skills needed to succeed in a digital economy.  At the same time, STLA unveiled 12 “refreshed” electric vans (small, mid-sized, and large).  Sales of these 12 will largely be in Europe where stricter emission laws make them more attractive.  The revised designs will go on sale in mid-2024.  Later, AAPL ramped up its late-to-the-party AI efforts by investing $1 billion to integrate AI tools in Siri, Apple Music, and other programs.  Meanwhile, LMT announced it has ended its partnership with EADSY (Airbus) which was part of the defense contractor’s bid for the project to upgrade the US Air Force’s KC-135 tanker fleet.  This may have been due to the Air Force reducing the project size from 140-160 tankers to just 75.  Regardless, LMT dropped its bid for the project.  Later, Reuters reported that NVDA is in the early stages of developing a line of ARM-based CPUs compatible with MSFT Windows.  (AMD is also developing an ARM-based processor line.)  QCOM already offers an AMR-based chip for laptop products.  (ARM-based chips are much more power-efficient.)  The NVDA move was unknown and all three pose threats to INTC, which along with AMD have been the kings of x86-based CPUs for decades.  (INTC fell 3% on the news and NVDA popped by about the same amount.)  After the close, Bloomberg reported that IFF is working with advisors on the potential sale of its pharmaceutical unit in a deal expected to new in the area of $3.5 billion.  After the close, Reuters reported that on Sunday an ALK plane bound for San Francisco had to make an emergency diversion to Portland OR.  The cause of the diversion was that an off-duty pilot, riding back to his home airport on a cockpit jump seat, attempted to disable the jet’s engines mid-flight.  That pilot was subdued and then arrested in Portland, booked on 83 counts of attempted murder. 

In stock government, legal, and regulatory news, TLSA confirmed that it is under investigation by the Dept. of Justice and has received subpoenas related to benefits paid to/for CEO Musk, marketing claims on vehicle range, and personnel decisions.  Elsewhere, the FDA requested more efficacy data from REGN and SNY related to their joint product called Dupixent.  (The FDA previously reject an initial application, but the drug companies feel the drug has shown significant benefits and are supplying the requested additional data.)  Later, WFC lost a $310 bond deal (was replaced by RJF) for a school district as the state of TX is scrutinizing the bank over its environmental policies.  (The oil and gas-controlled state wants to punish any banks that back climate initiatives such has a “Net Zero Banking Alliance.”)  JPM and BAC are also under investigation by the TX Attorney General (formerly impeached Paxton) for the same reasons.  At the same time, the US State Dept. approved the sale of missile systems from LMT, NOC, and RTX to the UK, Finland, and Lithuania.  The deal pricing were not detailed, but it will be in the $2+ billion region.  Later, CPB announced its $2.33 billion acquisition of private Sovos Brands has been delayed until 2024 after the FTC asked for more details on the deal.  The company said it still expects to close the deal in mid-2024 after the FTC review is complete.  Also after the close, INDV agreed to pay $385 million to settle lawsuits from US drug wholesales that alleged the company had suppressed generic competition to its Suboxone opioid drug.  Finally, JPM’s recent $290 million settlement of a class-action suit related to the bank’s alleged financing of Jeffrey Epstein’s sex trafficking was challenged Monday evening.  The Attorneys General of 16 states plus the District of Columbia jointly objected to the settlement which contained language saying the settlement money would be refunded to the bank if any sovereign or government sought damages arising from the sex trafficking of Epstein or his associates.  This was obviously intended to put the state’s in a position of deciding between hurting the victims who were paid $290 million under the settlement and suing the bank.

After the close, BRO, CDNS, CLF, CR, MEDP, and SSD all reported beats on both the revenue and earnings lines.  Meanwhile, ARE, PKG, TBI, and WRB all missed on the revenue line while beating on earnings.  On the other side, HRI and TFII both beat on revenue while missing on earnings.  Unfortunately, AAN and CCK missed on both the top and bottom lines.  It is worth noting that AAN, CDNS, CCK, and TBI all lowered their forward guidance.  However, ARE, CR, MEDP, and PKG all raised guidance.

Overnight, Asian markets were mixed but leaned toward the green side.  India (-1.34%) and Hong Kong (-1.05%) paced the losses while South Korea (+1.12%) and Singapore (+1.00%) led the more plentiful gainers.  In Europe, we see an even more pronounced lean toward the green at midday.  Four of the bourses are barely in the red (led by the FTSE, -0.02%) while the CAC (+0.70%) and DAX (+0.30%) lead most of the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a solidly green start to the day.  The DIA implies a +0.44% open, the SPY is implying a +0.55% open, and the QQQ implies a +0.65% open at this hour.  At the same time, 10-year bond yields are moving back up to 4.867% and Oil (WTI) is down to $85.86 per barrel in early trading.

The major economic news scheduled for Tuesday includes S&P Global Manufacturing PMI, S&P Global Services PMI, and S&P Global Composite PMI (all at 9:45 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include MMM, HOUS, ADM, ARCC, ABG, BCS, CNC, KO, GLW, DHR, DOV, DOW, FI, FELE, GTX, GE, GM, HAL, HCA, HRI, ITW, IVZ, KMB, NEE, NHYDY, NVS, NUE, PCAR, PNR, PII, PHM, DGX, RTX, SHW, SPOT, SYF, TECK, TRU, VZ, and XRX.  Then, after the close, GOOGL, BYD, CNI, CHX, CB, CSGP, ENVA, FFIV, GOOG, HA, MTDR, MSFT, RRC, RHI, RUSHA, SNAP, TDOC, TXN, V, WFRD, and WM report.

In economic news later this week, on Wednesday, Building Permits, New Home Sales, and EIA Weekly Crude Oil Inventories are reported.  We also hear from Fed Chair Powell.  On Thursday, we get September Durable Goods Orders, Preliminary Q3 GDP, Preliminary Q3 GDP Price Index, September Goods Trade Balance, Weekly Initial Jobless Claims, Sept. Retail Inventories, Sept. Pending Home Sales, and we hear from Fed member Waller.  Finally, on Friday, Sept. PCE Price Index, Sept. 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, we hear from ALFVY, APH, ATLKY, ADP, AVY, BA, BOKF, CME, CSTM, EVR, FTV, GD, GBX, GPI, HES, HLT, LTH, LAD, MHO, MCO, MSM, EDU, NSC, ODFL, OMF, OPCH, OTIS, OC, PAG, PRG, RDUS, ROP, R, SLGN, TMUS, TMHC, TDY, TMO, TNL, UMC, VRT, WNC, WAB, AEM, ALGN, ALSN, AMP, NLY, AR, ATR, ASGN, AVB, AGR, BKR, BHE, CACI, CP, CLS, CCS, CHE, CHDN, CMPR, CYH, EW, ESI, EQT, EQIX, EG, FLEX, FLS, FBIN, GL, GGG, ICLR, IEX, IBM, INVH, KALU, KLAC, LSTR, MAT, META, MAA, MOH, MYRG, NBR, NXT, ORLY, OII, PPC, PLXS, RJF, ROL, SEIC, NOW, STC, SUI, TER, TNET, TROX, URI, UHS, VMI, VICI, WCN, WFG, WU, and WHR.  On Thursday, AOS, MO, AMT, AIT, ARCH, AMBP, BSX, BFH, BMY, BC, BG, CRS, CARR, CX, CNP, CMS, CMCSA, CFR, EXP, EME, FAF, FCNCA, FSV, ULCC, FCN, HOG, HAS, HSY, HTZ, HON, IP, KVUE, KDP, KEX, LH, LAZ, LEA, LII, LIN, LKQ, MDC, MAS, MA, MRK, NYCB, NEM, NOC, ORI, OSK, PATK, BTU, PCG, BPOP, RS, RCL, STX, SAH, LUV, STM, FTI, TXT, TTE, TSCO, TPH, UPS, VLO, VLY, VC, VMC, GWW, WST, WEX, WTW, AB, AMZN, AJG, BIO, SAM, COF, CSL, CC, CMG, CINF, COLM, DECK, DXCM, DLR, EMN, EHC, ENPH, ERIE, FE, F, HIG, HUBG, INTC, JNPR, LHX, LPLA, MTX, NOV, OLN, PFG, RSG, RMD, SKX, SKYW, SSNC, TEX, TXRH, X, VALE, WY, and WKC report.  Finally, on Friday, we hear from ABBV, AER, ARLP, AON, ARCB, AN, AVTR, BAH, CBRE, GTLS, CHTR, CVX, CL, DAN, EQNR, XOM, FMX, FTS, GNTX, IMO, LECO, LYB, NWL, NVT, PSX, POR, SAIA, SNY, SWK, TROW, and XEL.

So far this morning, MMM, ARCC, CNC, KO, DHR, DOW, GE, GM, FI, PNR, DGX, RTX, SHW, SPOT, and SYF all beat on both the revenue and earnings lines.  Meanwhile, ADM, BCS, DOV, GTX, HAL, KMB, NHYDY, NVS, PHM, VZ, and XRX all reported missed on the revenue line while beating on earnings.  On the other side, HCA, IVZ, and PACW all beat on revenue while missing on earnings.  Unfortunately, ABG, GLW, PII, TECK, and TRU all missed on both the top and bottom lines.  It is worth noting that GM removed its forward guidance altogether.  At the same time, MMM, AWI, CNC, KO, DHR, FI, and SHW all raised their forward guidance.  However, GLW, DOV, and TRU also lowered their guidance.

In hedge fund news, fund manager Bill Ackman announced Monday that his fund had covered its months-long short on US Treasury Bonds.  Ackman said there is too much risk in the world and he now expects a significant flight to the safety of bonds to bid up their price.  Elsewhere, Reuters reports that both JPM and GS have told them that major hedge funds have trimmed their positions in the mega-cap tech giants ahead of earnings.  The article specifically cited META, GOOGL, AAPL, MSFT, and NVDA as the targets of the position trimming.

In miscellaneous news, in a hopeful sign of progress in the negotiations with Hamas, the group released two more hostages Monday.  Both were elderly women.  However, at the same time, Israel traded artillery fire with Iran-backed Hezbollah across the Irael-Lebanon border.  Elsewhere, Reuters reports that China is set to approve $137 billion in additional sovereign debt Tuesday to raise money for more infrastructure spending and other economic stimulus plans.  Finally, one of the nine GOP House Speaker candidates dropped out of the race after delivering his speech to the GOP Caucus on Monday.  The plan is for the GOP to decide on their favorite candidate today and maybe even get to a floor vote on the position later.  However, the dysfunction has not been overcome with arguments over secret versus public ballots in the caucus as well as whether or not to proceed to another floor vote if the GOP vote is not at least 217 in favor of one candidate.  There is also the matter of half the candidates at least publicly being Trump-aligned and denying the results of the last election. 

In late-breaking news, French President Macron proposed an international coalition to fight ISIS (which Israel and the US have labeled Hamas) during a trip to Israel.  In “It’s not just you who makes bad trades” news, the largest sovereign wealth fund in the world (I had no idea it was Norway), the Norwegian Government Pension Fund said it lost $34 billion in Q3.  (For reference, that fund has $1.4 trillion in assets.)

With that background, it looks like the Bulls are in control of the premarket. All three of the major index ETFs opened higher, have modest lower wicks, and are giving us white-bodied candles that are near their highs of the early session. These are not indecisive candles and indicate a little momentum will be carried into the open, presumably based on good earnings from major players. With that said, it is important to remember that the SPY, DIA, and QQQ are remain well below their T-line (8ema) and even the short-term trend of the last few days has not been completely broken. Again, we have no really major economic news today. So, beware of volatility and don’t be surprised if we wobble into some over-extension relief without really changing anything in the chart. In terms of that extension, all three major index ETFs are starting to get stretched out below the T-line (8ema). The T2122 indicator also remains deep in the bottom of its oversold territory. So, we need a pause or bounce to relieve pressure even if the Bears maintain control. Just remember that the market can stay over-extended a lot longer than we can stay solvent being right too early. So, don’t go betting on “we’re due.”

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 absolutely 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 money is 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