Markets gapped higher Tuesday on more good earnings and then drifted higher in the morning.  Stocks traded sideways in a tight range most of the afternoon before getting volatile the last couple of hours of the day.  The good news for the bulls was that we closed on an upswing, which took us out near the highs in all 3 major indices.  This left us with a strong, white gap-up candle in all 3 of those markets.  On the day, SPY gained 0.76%, DIA gained 0.55%, and QQQ gained 0.76%.  The VXX fell a percent to 22.17 and T2122 climbed up into the bottom of the overbought territory. 10-year bond yield spiked to 1.639% and Oil (WTI) gained half of a percent to $82.89/barrel.

The first Bitcoin-related ETF, BITO, which tracks CME Bitcoin futures began trading Tuesday.  Trading was heavy early in the session but then slowed significantly after the early pop. BITO closed up 4.8% on the day.  However, the debut did not go off without a hitch since the Blue Ocean trading system allowed overnight traders to purchase the ETF hours before it officially began trading on the NYSE.

After hours, strong earnings continued as NFLX posted a strong beat on earnings on revenue that was in line with estimates.  It also reported better than expected new subscriber growth.  UAL reported a smaller than expected loss and beat on the revenue line while reporting that travel is rebounding.  At the same time, ISRG beat on both lines. 

This morning healthcare is looking good as both ABT, BIIB, and ANTM beat on both lines. The banking space also continues its strong showing with regionals CMA, CFG, FHN, and MTB all reporting beats on both earnings and revenue.  However, the oil patch may be under pressure as services provider BKR missed badly on both lines, and NEE beat on earnings while missing on revenue.  VZ also beat on earnings but missed on revenue.  Meanwhile, NDAQ reported beats on both lines. 

Overnight, Asian markets were mixed again on modest moves.  Hong Kong (+1.35%) was a clear outlier to the upside and India (-0.83%) was an outlier to the downside.  Still, most exchanges in the region were flat or moved less than half of a percent in either direction.  In Europe, markets are mixed but leaning toward the green side on modest moves at mid-day.  The FTSE (+0.07%), DAX (+0.12%), and CAC (+0.03%) lead the volume but are among the smallest movers in early afternoon trading.  As of 7:30 am, US Futures are pointing to a flat open.  The DIA is implying a -0.01% open, the SPY implies an unchanged open, and the QQQ is implying a +0.08% open at this hour.  10-year bond yields are down slightly and Oil (WTI) is down over a percent in early trading.

The major economic news scheduled for release on Wednesday is limited to Crude Oil Inventories (10:30 am), Fed Beige Book (2 pm), and a Fed speaker (Quarles at 1 pm).  Major earnings reports scheduled for the day include ABT, ANTM, ASML, BKR, BIIB, CP, CFG, CMA, DB, FHN, KNX, LAD, MTB, MSM, NDAQ, NEE, NTRS, BPOP, SCL, UNF, VZ, WSO, and WGO.  Then after the close, CCI, CSX, DFS, EFX, GGG, HPQ, IBM, KALU, KMI, LRCX, LSTR, LVS, OMF, PPG, RUSHA, SEIC, FTI, THC, TSLA, UFPI, and VMI report.

After a strong rally the last 4 days, which included 3 gaps higher, stocks seem to be looking to rest at the open Wednesday. Once again, it has been the tech big dogs that have been leading us higher recently (with most of their earnings coming in the next week). However, this strong rally is a bit extended and markets may think it’s time to let the moving averages catch up. We are nearing the all-time highs in the major indices again, but there is still some resistance to work through. So, trade carefully, and be prepared for a potential rest day.

Remember, you’re not missing anything, so don’t chase. It’s discipline and good trading rules that will win in the long run. And that includes consistently taking profits when you have them. So, don’t let greed get the better of you. Focus on your trading process and on managing the things you can control (while not worrying about things you can’t influence). Finally, watch your current positions before looking to add new trades.

Ed

Swing Trade Ideas for your consideration and watchlist: GRPN, NUGT, SKIN, TME, FIS, PLBY, IQ. 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.

🎯 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