***Sorry everyone the YouTube is being very slow this morning and I don’t know when or/if the daily video will be active for viewing. Its out of my control! 🤬
Yesterday’s price action may have hinted at a slowing in the current rally; the bulls are clearly in control, and traders have zero concern about the 8.5% inflation and a hawkish Fed. However, with significant overhead resistance and slowing housing and manufacturing sectors as a persistent bond inversion continues, there are still willing buyers that could keep the rally going through the rest of the week. Inspiration for buyers or sellers will come from potentially market-moving economic reports and a handful of notable earnings.
During the night, Asian markets closed in the red across the board, with Goldman and Nomura again cutting China’s GDP outlook. European markets traded with choppy caution after a 50 basis point increase from the bank of Finland. U.S. futures trade cautiously bullish ahead of jobless claims, manufacturing, and housing data. Will the data inspire the bulls or the bears? We will soon get the answer.
Economic Calendar
Earnings Calendar
We have just over 40 companies listed on the Thursday earnings calendar, with around 20 confirmed reports. Notable reports include AMAT, BILI, BJ, CSIQ, EL, KSS, MLCO, NTES, NIO, ROST, TPR, and WB.
News & Technicals’
According to the July minutes, the Fed sees interest rate hikes continuing until inflation eases substantially but did not provide specific guidance. Tensions between the U.S. and China are not helping President Joe Biden’s efforts to control inflation; economist Jeffrey Sachs told CNBC’s “Street Signs Asia.” He said inflationary pressures would likely persist for the foreseeable future. Norway’s central bank hikes rates by 50 basis points in a fight to control surging inflation. The increase takes the Norges Bank’s sight deposit rate to 1.75% from 1.25%, exceeding its prior forecast in June. Norwegian inflation hit an annual 4.5% in July, up from 3.6% in June and well ahead of consensus projections for 3.8%. CNBC’s Jim Cramer on Wednesday said the market could continue to stall out after Wednesday’s slump and urged investors to trim some of their positions. “Things can still go right. I don’t want to freak you out. I think stocks need a cooling-off period after this miraculous run, and we’re getting one for certain,” he said. Iranian negotiating team adviser Mohammad Marandi said on Monday that “we’re closer than we’ve been before” to securing a deal and that the “remaining issues are not very difficult to resolve.” The Biden administration says it’s ready to sign a deal quickly if Iran accepts it. Three major sticking points remain, however. According to Oxford Economics ‘ lead economist, Tommy Wu, developer cash flows through July are down 24% year-on-year on an annualized basis. The data showed a sharp slowdown from growth for nearly every year since at least 2009. In addition, recent homebuyers’ refusal to pay mortgages has worsened real estate developers’ funding situation. Despite multiple reports of government plans to keep developers funded, the central government has yet to announce broader support for real estate officially. Goldman Sachs downgrades its 2022 forecast for China to 3% from 3.3%. Nomura cuts its full-year growth outlook to 2.8% from 3.3%. Both cite weak demand, uncertainties over China’s zero-Covid policy, property woes, and an energy supply crunch. Cisco gave better-than-expected guidance for its full 2023 fiscal year. Management touted strong demand despite a volatile backdrop. Treasury yields ticked slightly lower in early Thursday trading, with the 2-year at 3.27%, the 5-year at 3.04%, the 10-year at 2.88%, and the 30-year at 3.13%.
Though yesterday’s selling may hint at slowing the current bull run, the 8.5% inflation and hawkish Fed seem to be of zero concern to traders willing to buy near overhead resistance. Moreover, index chart technicals and trends remain bullish though housing and manufacturing are slowing. Finally, rising bond yields point to a troubling and deepening recession possibility as the rate inversion persists, but the overall market seems unconcerned. Thursday brings a busy economic calendar of potential market-moving reports with a handful of notable earnings to inspire. Of course, we will soon find out if all the data inspires the bulls or bears, so buckle up and plan your risk carefully.
Stocks gapped lower between 0.60% and 1.00% in the major indices Wednesday. Then after about an hour of sideways grind, they followed through to the downside to reach the lows of the day shortly after 11:45 am. However, once again the dip buyers stepped in and the bulls began a rally that took us back to the highs of the day closing the morning gap in the large-caps) by 2:40 pm. The Whipsaw took effect there and all 3 major indices started back down the rest of the day. This action left all 3 major indices giving us gap-down, Doji / Spinning Top candles which indicate indecision in the current pullback.
On the day, SPY lost 0.71%, DIA lost 0.45%, and QQQ lost 1.14%. Nine of the ten sectors were in the red with the Energy Sector managing green while Basic Materials, Technology, and Consumer Cyclicals led the way lower. The VXX fell just under 1% to 21.10 and T2122 fell out of the overbought territory to 71.31. 10-year bond yields were significantly higher to 2.889%, while Oil (WTI) was up 1.36% to $87.71/barrel on the day. Overall, a modestly red, indecisive day where all 3 major indices stayed above their respective T-lines (8ema).
In economic news, July Retail Sales came in dead flat, which was slightly below the +0.1% forecast and well below June’s +0.8%. Meanwhile, June Business inventories came in as forecast at 1.4% (down from May’s 1.6%) and June Retail Inventories came in better than expected a 1.5% (versus 1.6% forecast). The big surprise was EIA Oil inventories, which came in down 7.056mil barrels (versus -0.275mil forecast). With this said, the big news was the July FOMC Minutes, which indicated meeting participants are in favor of sustained action to bring down inflation and stated that they saw a “neutral rate” (neither supportive nor restrictive of growth) to be around 2.25% – 2.50%. Futures markets have now priced in a 50-basis-point hike for September (versus the last two meeting’s 0.75% hikes).
In earnings news, after the close, AMCR, BBWI, CSCO, KEYS, and SNPS all reported beating on both the revenue and earnings lines. Meanwhile, ZTO missed on revenue while beating on earnings. So far this morning, CLPBY, BJ, KSS, EL, NTES, SPTN, CSIQ, NICE, and FORTY all reported beats on both lines. Meanwhile, TPR missed on revenue while beating on earnings. However, it is worth noting that KSS, EL, and TPR all lowered forward guidance while reporting.
In stock news, HOG and union employees voted to ratify a 5-year contract that averts a potential strike. The BBY meme stock fell sharply when Ryan Cohen (CEO of GME) filed with the SEC that he is beginning to sell his 9.5 million shares (total holdings) which is roughly 10% of the outstanding shares. Then, after the close, Investing.com reported that DEN is exploring a potential sale after it escaped bankruptcy in 2020.
In Energy news, as mentioned above, US Oil Inventories fell sharply and unexpectedly this week. The EIA went on to report that the cause was not domestic consumption nor a lack of supply. The cause was a record amount of US oil exports of over 5 million barrels per day in the last week while WTI was selling at a steep discount to Brent. Earlier in the day, a US Appeals Court overruled a lower court ruling that had halted the Biden Administrations’ effort to pause and reevaluate oil and gas leasing on Federal land and waters
Bloomberg reports that following the visit of Speaker of the House Pelosi and a second Congressional delegation the following week, formal trade talks between the US and Taiwan will now start in a long-promised effort to deepen ties. This comes amidst strenuous opposition from China. Elsewhere abroad, UK inflation came in at over 10% yesterday, giving them the highest inflation rate among the G-10. Then early this morning (US time), Turkey cut its interest rates to spur growth…even as the country faces an 80% inflation rate.
Overnight, Asian markets were nearly red across the board. Only Singapore (+0.33%) showed any appreciable gains. Meanwhile, Japan (-0.96%), Hong Kong (-0.80%), and Shenzhen (-0.62%) led the rest of the region lower. In Europe, stocks are mixed at mid-day. The FTSE (-0.04%), DAX (+0.67%), and CAC (+0.45%) are leading a slight lean to the upside. However, 7 exchanges are showing red while 8 are showing green in early afternoon trading. As of 7:30 am, US Futures are pointing toward a flat start to the day. The DIA implies a +0.08% open, the SPY is implying a +0.08% open, and the QQQ implies a +0.03% open at this hour. 10-year bond yields are a bit lower to 2.868% and Oil (WTI) is up 1% to $88.98/barrel in early trading.
The major economic news events scheduled for Thursday include Weekly Initial Jobless Claims and Philly Fed Mfg. Index (both at 8:30 am), and July Existing Home Sales (10 am). There are also two Fed speakers (George at 1:20 pm and Kashari at 1:45 pm). The major earnings reports scheduled for the day include BJ, CSIQ, EL, KSS, NICE, SPTN, and TPR before the open. Then, after the close, AMAT and ROST report.
In economic news later this week, on Friday there is no major economic news. However, in earnings later this week, on Friday we get reports from DE, FL, and VIPS.
Earnings were surprisingly good (although some retail forward guidance was lowered) overnight and this morning. We still have Jobless Claims ahead, but at the moment it is looking like a modest (tentative?) bullish start to the day. That would make yesterday’s pullback exactly what the doctor ordered for a sustained rally. We can probably expect another low-volume, perhaps dead morning, as the rest continues. However, you can’t measure a river’s depth on average, meaning there will be pockets of extreme volatility in places like the meme stocks where BBBY is one to watch. The trend remains bullish, but remember the SPY and QQQ still have their 200sma overhead to deal with, and for that matter, DIA has not pulled away from its 200sma after breaking through.
Remember that trading is our job. So, do the work and follow the process. Stick with your trading rules, trade with the trend, and take those profits when you have them. Demonstrate patience and wait for confirmation. Don’t be stubborn. If you have a loss, just admit you were wrong, respect your stop, and take the loss before it grows. When price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.
See you in the trading room.
Ed
Swing Trade Ideas for your consideration and watchlist: FUBO, VRM, C, GM, TOST, TTWO, GE, BAC, DM, WFC, WMT, UNP, TGT, RKT. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Though market internals point to short-term extreme extended condition, the bulls show no signs of stopping as they pressed the SPY to its 200-day average on Tuesday. A sharp but brief reversal late in the day took some of the shine off the Tuesday push higher, but the daily index charts remain very bullish. Earnings from LOW, TGT, and CSCO, with Retail Sales figures and the FOMC minutes, will likely keep traders on edge and price action volatile. Watch for clues of a rest or market pullback as it could begin swiftly at any time after such a long bullish run.
Asian markets closed mostly higher, with the Nikkei surging 1.23% as the Bank of New Zealand hikes rates. However, European markets see red across the board, with U.K. inflation soaring to 10.1% due to food and energy costs. U.S. futures suggest a little profit-taking could occur this morning, but more than enough data is coming our way that could inspire the bulls. I would not expect the bulls to give up easily but remember, the last buyer in the door gets the worst of the pullback, so plan your risk carefully!
Economic Calendar
Earnings Calendar
On the hump day earnings calendar, we have around 30 companies listed with less than 20 confirmed. Notable reports include AMCR, ADI, BBWI, CSCO, DNUT, LOW, PFGC, SNPS, TGT, PLCE, TGX, & WOLF.
News & Technicals’
Lowe’s reported mixed second-quarter earnings Wednesday morning. Its earnings per share surpassed analyst expectations while revenue fell short. Economists expect July’s retail sales report to show that consumers increased spending by just 0.1% in the month. Retail sales data will be released Wednesday at 8:30 a.m. ET should show the impact of rising inflation and high gasoline prices on the consumer. Online sales are expected to have improved due to Amazon’s Prime Day on July 12 and 13 and rival sales at other retailers. New OPEC Secretary-General Haitham Al Ghais said Wednesday that the influential producer group is not to blame for soaring inflation. “There are other factors beyond OPEC that are behind the spike we have seen in gas [and] oil. And again, I think in a nutshell, it is underinvestment — chronic underinvestment,” Al Ghais told CNBC’s, Hadley Gamble. On OPEC’s ties with Russia, Al Ghais said the group has a “solid” relationship with Moscow and always seeks to separate politics from its market stabilizing objectives. Tencent posted its first-ever quarterly year-on-year revenue decline as stricter regulations around gaming in China, and a resurgence of Covid-19 in the world’s second-largest economy hit the technology giant. Tencent posted revenue of 134.03 billion Chinese yuan ($19.78 billion) in the second quarter vs. 134.6 billion yuan expected, a decline of 3% year-on-year. The consumer price index rose 10.1% annually, according to estimates published by the Office for National Statistics on Wednesday, above a consensus forecast of 9.8% and up from 9.4% in June. Rising food prices made the largest upward contribution to annual inflation rates between June and July, the ONS said in its report. The Bank of England expects inflation to top out at 13.3% in October. Around two hours after the publication of the red-hot consumer price index reading, the yield on the 2-year Gilt was up more than 29 basis points to reach 2.441% before moderating slightly. The annual rise in consumer prices outpaced consensus expectations of 9.8% as food and energy prices continued to soar, exacerbating the country’s cost of living crisis. Treasury yields rise in early Wednesday trading, with the 2-year at 3.29%, the 5-year at 3.01%, the 10-year at 2.87%, and the 30-year at 3.13%. The 12-month bonds at 3.25% inverted over the 5,10, and 30-year remain a concern for recession.
With yesterday’s push, the SPY finally kissed its 200-day moving average with indexes in an extreme extended condition as the FOMO inspires the chase higher. A sharp but brief intraday reversal took some of the shine off the day’s bullish efforts, but daily charts remain technically very bullish. Our heavy hitters in earnings this morning are LOW and TGT, with CSCO the most likely to inspire after the bell. On the Economic Calendar, we face the Retail Sales, Petroleum Status, a 20-year bond auction, and the FOMC minutes with Fed member Michelle Bowman peaking a couple of times today tossed in for good measure. With inflation continuing to increase globally and signs of global growth slowing, there may be some tough market times ahead but for now, enjoy the bull run while watching for clues of rest or pullback that could begin at any time.
On Tuesday, markets gapped very modestly lower at the open and continued to follow through to the downside for the first hour. The exception to this was the DIA which was held up by WMT and HD and recovered the gap in the first 5 minutes. From 10:30 am the bulls stepped into rally strongly at least refilling the gap and reaching the highs of the day at about 2:20 pm. However, at that point, we sold off hard for half of an hour, then waffled for 30 minutes before starting back up. This is left us with modest gap-down indecisive (Spinning Top) type candles in the SPY and QQQ, as well as a breakout white candle with a significant upper wick in the DIA.
Seven of the ten sectors were in the green, with Consumer Defensive, Basic Materials, and Consumer Cyclicals out in front on strength of those WMT and HD earnings pops. Healthcare and Technology were the biggest losing sectors Tuesday. SPY and DIA are testing their 200 smas and all 3 major indices are extended from their T-line. The VXX is down one percent again to 21.29 and T2122 is telling us we remain well overbought at 96.97. 10-year bond yields are up into the 2.817% area and Oil (WTI) is down more than 3.27% to the $86.49/barrel area.
In economic news, we got mixed housing data. July Building Permits came in a bit above forecast (1.674mil vs. 1.650mil estimated), but still below the June number (1.696mil). However, July Housing Starts came in below forecast (1.446mil vs. 1.540mil average estimate). Elsewhere, July Industrial Production came in significantly stronger than was expected (+0.6% vs +0.3% forecast and -0.2% in June). Finally, at the close, President Biden signed the Inflation Reduction Act, setting a minimum 15% corporate tax rate, allowing Medicare to negotiate prices on 10 specific drugs, and setting up roughly $400 billion in money for automakers who produce “clean vehicles” while removing tax credits for consumers who buy such cars.
In earnings news, after the close, A and JKHY both reported beating on the revenue and earnings lines. So far this morning, TECHY, ADI, and PFGC all reported beats on both the top and bottom lines. Meanwhile, LOW and TJX missed on revenue while beating on earnings. On the other side, CABGY beat revenue while missing on the earnings line. However, TGT and ZIM both missed on both lines.
In stock news, on Tuesday AAPL started positioning for the recession by laying off 100 contract recruiters, thus signaling they will do far less hiring in the next six months. For the second day in a row, BBBY traded in a massive range (an 87% range Tuesday) as retail, and especially meme stock traders, got excited by CME Chairman Ryan Cohen placed another bet on the retailer by buying deep OTM January 2023 call options (with an exercise price at least 3-4 times the stock’s current $20 price). This wild action also caused BBBY stock trading to be halted several times Tuesday.
In supply chain news, President Biden’s Rail Emergency Board delivered its rail contract recommendations Tuesday. The board’s creation put a stop to potential national rail strikes and the delivery of their advice now starts a 30-day clock before any strikes can legally happen. The White House expressed hope that these new recommendations will break the stalemate between CSX, UNP, BRKB’s BNSF, and over 115,000 rail workers. In related news, UNP reported that Q3 freight volumes are up 2% from one year ago. The rail company also reported less congestion at freight terminals (fewer delays) and improved staffing levels compared to earlier in 2022.
In mortgage news, the average 30-year fixed-rate, conforming loan interest rate fell slightly from 5.47% to 5.45%. Nonetheless, applications for home purchase loans fell 1% for the week (18% lower than the same week in 2021). Refinance applications also fell 5% for the week (82% lower than a year ago). This meant an overall 2% lower loan application volume for the week.
Overnight, Asian markets were mostly green. Only South Korea (-0.67%) printed any significant red. Meanwhile, Japan (+1.23%), Shenzhen (+1.00%), and India (+0.67%) led the region higher. In Europe, stocks are leaning heavily to the red side at mid-day. The FTSE (-0.40%), DAX (-1.39%), and CAC (-0.57%) are leading the region lower with only Denmark (+1.43%) showing any appreciable green in early afternoon trading. As of 7:30 am, US Futures are pointing toward a down start to the morning. The DIA implies a -0.55% open, the SPY is implying a -0.73% open, and the QQQ implies a -0.82% open at this hour. However, 10-year bond yields are up sharply to 2.88% and Oil (WTI) is on the red side of flat in early trading this morning.
The major economic news events scheduled for Wednesday we get July Retail Sales (8:30 am), June Business Inventories and June Retail Inventories (10 am), EIA Crude Oil Inventories (10:30 am), a 20-year Bond Auction (1 pm), and July FOMC Minutes (2 pm). Fed Member Bowman also speaks twice (9:30 am and 2:20 pm). The major earnings reports scheduled for the day include ADI, LOW, PFGC, TGT, TCEHY, TJX, and ZIM, before the open. Then, after the close, AMCR, BBWI, SQM, CSCO, KEYS, SNPS, and ZTO report.
In economic news later this week, on Thursday, Weekly Initial Jobless Claims, Philly Fed Mfg. Index, and July Existing Home Sales are announced and Fed Member George speaks. Finally, on Friday there is no major economic news.
In earnings later this week, on Thursday, we hear from BJ, CSIQ, EL, KSS, NICE, SPTN, TPR, AMAT, and ROST. Finally, on Friday we get reports from DE, FL, and VIPS.
This morning, it looks like Mr. Market is looking to correct the bullish over-extended condition we find ourselves facing. A modest pullback would be very healthy for the rally, so don’t panic. However, it may also be a slow day until mid-afternoon as it seems like there is a lot of desire to read the minutes of the FOMC July meeting for clues on what will happen in September. The other story will be the bad report from TGT from its one-time hit taken from discounting to unload inventory. With that backdrop, we can expect another low-volume, perhaps dead morning, potentially followed by a volatile afternoon. Either way, the trend remains bullish, but remember those stocks are extended/overbought…so they need a pause/pullback.
Remember that trading is our job. So, do the work and follow the process. Stick with your trading rules, trade with the trend, and take those profits when you have them. Demonstrate patience and wait for confirmation. Don’t be stubborn. If you have a loss, just admit you were wrong, respect your stop, and take the loss before it grows. When price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.
See you in the trading room.
Ed
Swing Trade Ideas for your consideration and watchlist: QID, SDS, GE, WFC, GM, C, FUBO. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Although Monday’s economic data points to an economic decline, the bulls ignored it pushing up to test 200-day moving averages in the index charts. Volume was noticeably low yesterday, and internal indicators suggest a short-term overbought condition despite the rush to hurry up and buy something. Today’s inspiration may come from the report from HD, WMT, Housing Starts and Permits, and Industrial Production numbers. Continue to ride the bullish was as long as it lasts but keep in mind that exuberant rallies can abruptly turn, so plan carefully.
Asian markets finished the day mixed and relatively flat, with Hong Kong sliding the most, down 1.05%. However, European markets push higher, showing modest gains across the board this morning. As we wait for reports from WMT and potential market-moving economic data, U.S. trade flat to slightly bearish but anything is possible by the open of trading. Buckle up and observe as we test overhead resistance.
Economic Calendar
Earnings Calendar
We have less than 50 companies listed, a large number of those unconfirmed. Notable reports include HD, WMT, A, LITE, & SE.
News & Technicals’
Home Depot reported quarterly earnings and revenue that beat analyst expectations. CEO Ted Decker said the results reflect continued strength in demand for home improvement projects. Shares of Chinese food delivery giant Meituan plunged 9% on Tuesday after Reuters reported that Tencent plans to sell most of its $24 billion stake in the company. Tencent, which owns 17% of Meituan, is planning to placate domestic regulators and cash in on its eight-year-old investment, Reuters reported, citing four sources with knowledge of the matter. However, a source told CNBC that Tencent has no plans to sell its Meituan stake. Moscow is working to recalibrate its economy in the face of a barrage of international sanctions imposed by Western powers in response to the war. As a result, the Russian economy shrunk by 4% year-on-year over the second quarter, although this was less sharp than the 5% expected by analysts. Although many economists are focusing on the long-term structural threats to the Russian economy – which the government and central bank are scrambling to counter – the more immediate collapse predicted by some has not come to fruition. Apple employees who work in Santa Clara County near the company’s California headquarters have been called back to the office starting in September, where they are expected to work three times per week. The commander of the U.S. Seventh Fleet said on Tuesday that he’d seen an increase in “unsafe” aerial intercepts by Chinese military aircraft in the South China Sea region. Karl Thomas emphasized the importance of supply chains and the free flow of shipping, adding that keeping sea lanes open is the “first and foremost” mission of the Navy. Thomas said the vast majority of U.S. and Chinese aerial and naval interactions are professional and safe despite an increase in unsafe aerial interactions. Walmart has reached an exclusive deal with Paramount+ to offer the streaming service as part of its Walmart+ offering. Walmart+ subscribers will get an ad-supported Paramount+ subscription included. Paramount Global CEO Bob Bakish has set a 100 million goal for Paramount+ subscribers by 2024. Treasury yield traded flat early Tuesday, the 2-year at 3.20%, the 5-year at 2.92%, the 10-year at 2.79%, and the 30-year at 3.09%.
The bulls found inspiration to rally, testing 200-day moving averages despite the ugly manufacturing data and the downturn of the Housing Market Index. Volume was, however, noticeably low as the indexes continued to reach out for overhead resistance levels and key moving averages. At the same time, the T2122 indicator remains unbelievably overbought as traders rush to buy something, hoping not to miss the payday. Today, we have potential market-moving economic reports with the Housing Starts and Permits and Industrial Production numbers. Though earnings numbers are dwindling quickly, the reports from HD and WMT could provide substantial inspiration. Remember, exuberant rallies can turn lower abruptly, so plan your risk carefully and ride the wave as long as it lasts.
Stocks gapped lower between a third and a half of a percent on Monday. However, all 3 major indices had filled the gap by 10 am. From there we saw a grind sideways most of the morning, followed by a mid-day rally and then a sideways grind most of the afternoon. Only a slight selloff the last 30 minutes of the day kept all3 major indices from closing near their highs of the day. This action has left us with gap-down strong white candles with a small upper wick.
Eight of the ten sectors are green, with Energy (-1.99%) by far the biggest loser and a virtual dead heat for the biggest gainer between Consumer Defensive and Utilities. The VXX has fallen over 2.5% to 21.49 and markets remain overbought with T2122 being very high in its range at 97.37. 10-year bond yields are back down a bit to 2.799% as traders buy bonds and Oil (WTI) is off more than 3.42% to $88.95, which is actually a recovery from early losses of more than 5%.
In economic news, on Monday the NY Empire State Mfg. Index came in far below expectations Monday. The reading was -31.30 while +5.5 was forecast and July’s reading was +11.10. That 42-point fall was the second largest on record. Elsewhere, US Egg commodity prices have fallen 37% since the end of July (after a 47% increase in July). This will be seen by consumers over the next 30 days. Overseas, Chinese July Industrial Output grew 3.8%, well below the +4.6% analysts expected and even slightly slower than June’s +3.9%. Meanwhile, Chinese July Retail Sales rose 2.7% year-on-year, far below the +5.0% forecast and June’s +3.1% number. For that reason, China’s Central Bank cut both the 7-year and 10-year lending rates by 10 basis points
After the close, TME, GSM, NU, and FN reported beating on both the top and bottom lines. However, COMP missed on both the revenue and earnings lines. FN was up as much as 16% in post-market trading after their beat and an increase in guidance. Meanwhile, NU was up 11% and GSM was up 9% in post-market trade.
In stock news, after the close, BRKB reported that it has tripled its stake in ALLY while also shedding its VZ holdings. Elsewhere, AAL announced that it is cutting 16% of its November flight schedule (31,000 flights) well above the 2% of flights they are canceling for September and October. Meanwhile, TWTR was ordered by the judge to give Elon Musk access to a former TWTR executive’s documents related to the court case over closing Musk’s acquisition of TWTR. However, the same judge ruled that TWTR only needs to give Musk the data from one “bot checker.” Lastly, Bloomberg reports that WFC plans to retreat from the home mortgage business. WFC has dominated that business (issuing one-third of all US mortgages) since other banks backed off of that business during the 2008 financial crisis. WFC issued $205 billion in new home loans in 2021.
In Energy news, on Monday, crude oil settled at a 6.5-month low on weak demand out of China, Saudi Aramco saying it was ready to ramp up production, and fear that Iran will comply with the 3 remaining stumbling blocks (which would allow Iran to start exporting oil again) Monday night. Elsewhere, after the close, Reuters reported that energy companies are gearing up to capture some of the $430 billion in US Tax Credits from the Inflation Reduction Act by implementing carbon capture projects (pumping carbon captured from operations into wells). CVX, XOM, SLB, ET, and TALO are all listed by Reuters as companies planning such projects. Finally, Bloomberg reports that BP will sell off all of its Mexican oil assets as it refocuses on renewable energy.
President Biden will sign into law today a bill that eliminates the tax credit for electric and hybrid vehicles. An automotive trade group told Bloomberg that this will eliminate customer tax credits for the purchase of 70% of electric and hybrid vehicles. However, the same law will give tens of billions of dollars in grants, loans, and tax credits to automakers who build cleaner vehicles. Obviously, major auto companies like GM, F, TM, HMC, and STLA are in the best position to gain from the incentives, even as the industry customers lose a reason to buy cleaner vehicles.
Overnight, Asian markets were mostly green on modest moves. The only significant loss was in Hong Kong (-1.05%). On the other side, Malaysia (+0.98%), India (+0.72%), and Australia (+0.58%) led the gains. In Europe, stocks are leaning heavily to the upside at mid-day. The FTSE (+0.64%), DAX (+0.67%), and CAC (+0.40%) are leading the region higher in early afternoon trade. As of 7:30 am, US Futures are pointing toward an open just on the red side of flat. The DIA implies a -0.06% open, the SPY is implying a -0.13% open, and the QQQ implies a -0.12% open at this hour. 10-year bond yields are up slightly to 2.81% and Oil (WTI) is flat in early afternoon trading.
The major economic news events scheduled for Tuesday include July Building Permits and July Housing Starts (both at 8:30 am), July Industrial Production (9:15 am), and API Weekly Crude Oil Stock (4:30 pm). The major earnings reports scheduled for the day include ESLT, HD, SE, and WMT before the open. Then, after the close, A and JKHY report.
So far this morning, WMT and HD have both reported beats on both lines. Meanwhile, SE beat on revenue while missing on earnings. However, ESLT missed on both the top and bottom lines. Both WMT and HD stood by their previous forward guidance during their reports.
In economic news later this week, on Wednesday we get July Retail Sales, June Business Inventories, June Retail Inventories, EIA Crude Oil Inventories, a 20-year Bond Auction, and Fed Member Bowman speaks twice. Then Thursday Weekly Initial Jobless Claims, Philly Fed Mfg. Index, and July Existing Home Sales are announced and Fed Member George speaks. Finally, on Friday there is no major economic news.
In earnings later this week, on Wednesday, ADI, LOW, PFGC, TGT, TJX, ZIM, AMCR, BBWI, SQM, CSCO, KEYS, SNPS, and ZTO report. Then Thursday, we hear from BJ, CSIQ, EL, KSS, NICE, SPTN, TPR, AMAT, and ROST. Finally, on Friday we get reports from DE, FL, and VIPS.
Coming off Monday’s nice showing, markets seem to be pausing this morning. Or, perhaps, traders are just waiting for more clues as to future Fed rate hike sizes. Regardless, we get housing data later today and that industry’s trade group is already making the morning show rounds fretting about a “housing recession” caused by increasing loan rates and consumer fears over the future. (They conveniently forget about the long run of boon years when rates were historically low.) At any rate, the bulls could certainly use a little pause to rest following the strong moves made in the last week. With that backdrop, we can expect another low-volume day. Overall the trend remains bullish, but remember those stocks are extended/overbought…do not chase.
Remember that trading is our job. So, do the work and follow the process. Stick with your trading rules, trade with the trend, and take those profits when you have them. Demonstrate patience and wait for confirmation. Don’t be stubborn. If you have a loss, just admit you were wrong, respect your stop, and take the loss before it grows. When price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.
See you in the trading room.
Ed
Swing Trade Ideas for your consideration and watchlist: No Trade Ideas today. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
Though Friday morning started slow and choppy, the afternoon was celebrated with substantial exuberance after the House passed a more than 700 billion dollar deficit spending bill. The tech giants led the rally as they surged higher, extending the index charts until the day’s close. Today we begin with reports from Empire State Manufacturing, followed by the Housing Market Index, some Fed speak, and short-term bond auctions as earnings inspiration slow. Expect the market to rest sideways from this extended condition or begin a pullback at any time.
During the night, Asian markets traded mixed as Chinese economic reports showed their economy continues to slow. European markets trade flat but mainly bullish this morning, trying to build on the cautions gains of last week. However, after a four-week winning streak, U.S. futures point to a modest gap down open with manufacturing and housing data pending.
Economic Calendar
Earnings Calendar
With the bulk of earnings behind us, we will see many more small-cap reports with a few possible market movers mixed in but expect them to continue to decline. Notable reports include BLND, COMP, FN, TME, TDUP, WEBR, WWE, & ZIP.
News & Technicals’
Retail sales grew by 2.7% in July from a year ago, the National Bureau of Statistics said Monday. That’s well below the 5% growth forecast by a Reuters poll and down from growth of 3.1% in June. Likewise, industrial production rose by 3.8%, missing expectations for 4.6% growth and a drop from the prior month’s 3.9% increase. In addition, investment in real estate fell at a faster pace in July than in June, while investment in manufacturing slowed its pace of growth. Medicare is gaining the power to negotiate prices for certain drugs and punish pharmaceutical companies that don’t play by the rules. The legislation represents a historic expansion of Medicare’s power that was fiercely opposed by the pharmaceutical industry. But the negotiation powers are limited in scope, and some lawmakers argue that legislation doesn’t go far enough. The fourth quarter will be “the challenge” for Malaysia’s economy if global headwinds such as Russia’s war on Ukraine and China’s zero-Covid policy persist, said Finance Minister Zafrul Aziz. Growth momentum for July to September should be strong, but this could result from an unfavorable base effect from the same time in the previous year, Zafrul said. On Friday, Malaysia’s central bank announced that the country’s economy grew 8.9% from April to June from a year earlier. Starbucks, Kraft Heinz and Mondelez, are among the companies focusing on premium products during the cost-of-living crisis. By “beefing up their premium proposition” as well as value products, companies can capture and retain trade-down audiences, says Paul Martin, KPMG’s head of retail. Tesla has made over three million cars, CEO Elon Musk tweeted on Sunday. “Congrats, Giga Shanghai, on making the millionth car! Total Teslas made now over 3M,” Musk tweeted. Treasury yields trade with little changed early Monday, with the 2-year at 3.25%, the 5-year at 2.96%, the 10-year at 2.83%, and the 30-year at 3.10%.
Trading on Friday started slow but picked up strongly in the afternoon, stretching the extended index charts with substantial exuberance. Big tech names surged upward after the news that another more than 700 billion dollar spending bill had passed in the House. The market loves deficit spending, while the T2122 indicator and bond inversions suggest a pullback could begin at any time. Of course, Fed members warn that inflation is still unacceptably high and rate increases will continue, but the excitement of the rally has allowed traders to ignore that inconvenient truth. Today we get a reading from Empire State Manufacturing, the Housing Market Index, some Fed speak, and short-term bond auctions.
On Friday, markets gapped up a half of a percent. After an hour of finding their footing, the bulls began a slow, steady, all-day rally that ran right into the close. This left all 3 major indices printing large white candles with small lower wicks. On the day, SPY gained 1.69%, DIA gained 1.23%, and QQQ gained 1.95%. All 10 sectors were in the green with Technology leading the charge again. The VXX also gained 1.66% to 22.05 and T2122 drove even higher into overbought territory at 97.41. 10-year bond yields fell to 2.842% and Oil (WTI) dropped back to $91.88/barrel. Clearly it was a risk on day.
This all capped the fourth straight week of gains, with SPY gaining 3.30%, DIA gaining 3.01%, and QQQ gaining 2.69% for the week. It also cut the losses of the longer-term pullback in half, which may be a key indicator. (No bear market rally since 1950 has halved its losses from the highs and then returned to new lows. In other words, if the past is a good indicator, the bottom is now in and the bulls have history on their side.) With that said, the Fed is still expected to continue raising rates (in smaller increments) for at least another six months. This means it may still be too early for the broader market to pivot into a “Fed Bull” mode of chasing growth again (at least according to GS as reported by CNBC).
In economic news, both Imports and Exports were down more than expected in July (possibly indicating a global economic slowdown). However, it was Exports that were much lower than expected (-3.3% vs -1.1% forecast). The market took this to mean the Fed will have less reason to continue big rate hikes as we move forward. On the plus side, Michigan Consumer Sentiment and Expectations both came in well above the consensus estimate as well as the June numbers. This indicates that the public is now more comfortable with the economy and that policies are working as inflation falls and no huge recessionary impacts (mass layoffs) have started in this cycle. And, as always, a relatively happy consumer is good for corporate profits.
In stock news, on Friday, PTON announced it will cut 800 jobs, shut stores, and raise prices as the “High-End Bike/Treadmill as a subscription” business struggles to remake its business. After the close Friday, BA announced it has patched a vulnerability that could have allowed hackers to take control of on-board flight system (air speed, gauge readings, etc.) of some BA manufactured aircraft. On Saturday, activist hedge fund Starboard Value announced it has slashed its KSS holdings by 80% in Q2 after the fund’s proposed acquisition of KSS was rejected.
In Energy news, Germany has taken measure to cut natural gas consumption by at least 2%. The new law requires strict cutbacks by both public and private entities. These include only heating public buildings to 66 degrees, not allowing pools to be heated, as well as building and monument illumination turned off. Illuminated advertising will also be prohibited between 10 pm and 6 am. Elsewhere, in a surprise move, Mexico (which now imports 100% of the natural gas it uses) announced plans to become the world’s largest exporter of nat. gas. This includes 8 new exploration projects not far South of the US border that are expected to have a combined output of more than 50 million tons annually and are expected to come online as soon as 2023. (Those 8 projects alone would make Mexico the #3 global producer of LNG and produce 55% of the US total production.) Notable current LNG producers include CQP, LNG, SHEL, and TTE.
President Biden will sign the Inflation Reduction Act this week. Among the provisions is giving the HHS Dept. the authority to negotiate drug prices for the first time. (This was a huge loss for big pharma, which spent over $144 million lobbying and made more than $16 million in campaign contributions to defeat this measure.) Among the companies potentially impacted by negotiations are BMY ($11.5 billion in drugs now likely negotiated), MRK ($7.3 billion in drug sales impacted), JNJ ($5 billion in drug sales now to be negotiated), and ABBV ($3 billion in drug sales impacted) among others. **Note that these are not the sales amounts to be lost, but which are likely to be reduced by actual negotiated prices.
Overnight, Asian markets were mixed but leaned to the green side on mostly modest moves. Japan (+1.14%) and Taiwan (+0.84%) led the gains while Hong Kong (-0.67%) and Singapore (-0.38%) paced the losses. In Europe, a similar picture is taking shape at mid-day. The FTSE (-018%), DAX (-0.01%), and CAC (+0.01%) show a mixed, modest-move atmosphere while smaller exchanges show slightly stronger moves. For example, Denmark (+1.36%) leads the gains and Norway (-1.00%) paces the losses in early afternoon trade. As of 7:30 am, US Futures are pointing toward a down start to the day. The DIA implies a -0.45% open, the SPY is implying a -0.46% open, and the QQQ implies a -0.26% open at this hour. However, 10-year bond yields are down to 2.828% and Oil (WTI) is off over 5% to $87.48/barrel in early trading.
The major economic news events scheduled for Monday include NY Empire State Mfg. Index (8:30 am) and June TIC Net Long-Term Transactions (4 pm). The major earnings reports scheduled for the day include LI, NUI, WEBR, and WES before the open. Then, after the close, COMP, FN, GSM, NU, and TME report.
In economic news later this week, on Tuesday we get July Building Permits, July Housing Starts, July Industrial Production, and API Weekly Crude Oil Stock. Then Wednesday we get July Retail Sales, June Business Inventories, June Retail Inventories, EIA Crude Oil Inventories, a 20-year Bond Auction, and Fed Member Bowman speaks twice. Thursday Weekly Initial Jobless Claims, Philly Fed Mfg. Index, and July Existing Home Sales are announced and Fed Member George speaks. Finally, on Friday there is no major economic news.
In earnings later this week, on Tuesday we hear from ESLT, HD, SE, WMT, A, and JKHY. On Wednesday, ADI, LOW, PFGC, TGT, TJX, ZIM, AMCR, BBWI, SQM, CSCO, KEYS, SNPS, and ZTO report. Then Thursday, we get reports from BJ, CSIQ, EL, KSS, NICE, SPTN, TPR, AMAT, and ROST. Finally, on Friday we hear from DE, FL, and VIPS.
After the last 4 strong weeks and Friday’s strong move by the bulls, major indices look extended from their T-lines and according to T2122. In addition, China’s Central Bank surprised markets overnight with a rate cut last night. However, it was a small cut of 10 basis points on the 7 and 10-year lending rates. (Indicating they are concerned the Chinese and global markets are cooling too fast.) With that backdrop, we can expect another low volume, yet volatile, day. So, either look for longer horizons (loose stops and ability to ride fluctuations) or tighten up on the bat and take smaller, faster swings. Overall the trend remains bullish, but remember those stocks are extended/overbought…do not chase.
Remember that trading is our job. So, do the work and follow the process. Stick with your trading rules, trade with the trend, and take those profits when you have them. Demonstrate patience and wait for confirmation. Don’t be stubborn. If you have a loss, just admit you were wrong, respect your stop, and take the loss before it grows. When price does move in your direction, always move your stops in your favor (remember the “Legend of the man in the green bathrobe“…it is NOT HOUSE MONEY, it’s all OUR MONEY!). Lastly, remember that you get rich slowly and steadily in Trading…not by striking it rich on one or two trades. So, give up that lottery ticket mentality.
See you in the trading room.
Ed
Swing Trade Ideas for your consideration and watchlist: TWTR, MCD, ARKK, AMD, GRWG, NVDA, X You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.
🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.
🎯 DickCarp: the scanner paid for the year with HES-thank you
🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.
🎯 Bob S: LTA is incredible…. I use it … would not trade without it
🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade: PYPL, TGT, and ZS. Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.
🎯 Friday 6/21/19 (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.
Hit and Run Candlesticks / Road To Wealth Youtube videos
Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.
DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it. Past performance does not guarantee future results. Terms of Service
The improved CPI and PPI reports produced significant morning gaps but produced little to no buying follow-through momentumless low-volume chop. However, there is no question that the bulls are in control and own the current uptrend. Yesterday’s bearish topping candle patterns may be of no consequence because they also lacked conviction, and the overnight futures are already pumping for another gap up open. With a light day for earnings, inspiration traders may look to the Import/Export and Consumer Sentiment reports to keep the party going into the weekend.
Asian markets closed Friday mixed through the Nikkei bounced back up 2.62% by the end of trading. European markets trade with modest gains, cautious about future monetary policy and global growth concerns. However, with a light day of earnings U.S. point to another gap up ahead of economic reports. So, expect a push to close the week bullish but don’t rule out another pop and drop if the reports cannot generate some follow-though momentum in this short-term extended condition.
Economic Calendar
Earnings Calendar
Though we have about 60 companies listed on the earnings calendar for today, many of them are very small-cap or unconfirmed. Notable reports include BR, HNST & SPB.
News & Technicals’
According to market strategists, the Federal Reserve is unlikely to pivot from its hawkish interest rate hikes despite positive signs this week that inflation in the U.S. could be easing. As CPI and PPI soften, markets have started to moderate their expectations for Fed rate hikes. But that doesn’t mean it is “mission complete” for the Fed, said Ben Emons, managing director of global macro strategy at Medley Global Advisors. Victoria Fernandez, the chief market strategist at Crossmark Global Investments, said the Fed is nowhere near putting the brakes and turning dovish on rate hikes, given the current data. The chief financial officer of German energy firm RWE said it would burn more coal in the short term — but insists its plans to be carbon neutral in the future remain in place. Greenpeace has described coal as “the dirtiest, most polluting way of producing energy.” “To be very clear, it doesn’t change our strategy,” Michael Muller told CNBC of its carbon neutral plans. Retailers rushed to enter the subscription space, curating boxes of clothing and other items. But consumers are showing signs they’re no longer interested. Trunk Club, which Nordstrom acquired for an undisclosed amount in 2014, no longer exists. Stitch Fix, launched in San Francisco in 2011, is struggling to be profitable. Electric vehicle maker Rivian Automotive maintained its full-year guidance for deliveries Thursday. The automaker reported second-quarter revenue that was higher than Wall Street expected. But it trimmed its full-year financial outlook, saying investors should now expect a wider loss and lower capital expenditures than it had previously forecast. Treasury yields edge lower in early Friday trading, with the 2-year at 3.19%, the 5-year at 2.96%, the 10-year at 2.86%, and the 30-year at 3.13%. The 12-month bond remains inverted over the 2, 5,10,30-year bonds trading at 3.20%.
Though the CPI and the PPI generated significant morning gaps, the rest of Wednesday and Thursday lacked momentum in low-volume-chop. Yesterday produced a pop and drop but of very little significance as volume ruled the day, and the T2122 indicator barely budged from its extreme overbought condition. The premarket pump is already working for another morning gap up, so the bearish topping candle patterns left behind on Thursday may mean nothing with the bullish desire to hold this run into the weekend. Today we get readings on Import/Export prices and will take the temperature of the consumer with a look at their sentiment. With the bulk of the earnings season behind us, traders will have to weigh the overall results within a rising rate environment with weakening world economic conditions as we slide into fall.
