Markets gapped higher for the sixth day in a row and after a little volatility, the bulls took over to close us near the high in all 3 major indices.  The large-dap indices printed large-body, white bullish candles and the QQ printed a white Hanging Man type.  On the day, the SPY gained 0.72%, the DIA gained 0.75%, and the QQQ gained 0.67%.  As a result, all 3 major indices closed at yet another all-time high close, which also marked the strongest run since August.  The VXX lost about a percent to 16.33 and T2122 climbed even further into the overbought territory at 97.34.  10-year bond yields rose again to 1.176% and Oil (WTI) jumped 2.2% to $58.10/barrel.

In an interesting twist, TSLA disclosed in a filing that it has purchased $1.5 billion in bitcoin, in order to provide it with the liquidity to begin accepting bitcoin as a payment method.  TSLA CEO Elon Musk also added the hashtag #bitcoin to his TWTR bio. These moves helped drive bitcoin to an all-time high of $44,000 on Monday. 

Airline stocks also got a boost as documents revealed the Democratic relief plans should include $14 billion in aid for the industry.  This comes a day after CNN reported that despite demanding relief, the airline industry had over $31.5 billion of cash on their balance sheets to end Q4.  Another piece of the Democratic package is a $3,000/child ($3,600/child under 6) child credit to be paid to families by the IRS in monthly installments.  It’s worth noting that votes on the various pieces of the Biden package begin in Committees on Tuesday.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 27,700,629 confirmed cases and 476,405 deaths.  However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 110,694 new cases per day.  Still, deaths remain stubbornly high at 2,954 per day.  New Sec. of Transportation Buttigieg says that the US is considering testing requirements for domestic air travel.  CDC Director Walensky said that would be helpful, but stopped short of calling for such a plan.  At the opposite end of the political spectrum Iowa’s Governor lifted the state’s mask mandate without even consulting her own health officials.  Finally, as of now, just under 10% of the US populations has received at least one vaccine shot.

Globally, the numbers rose to 107,079,812 confirmed cases and the confirmed deaths are now at 2,338,319 deaths.  In good news, the world’s average of new cases is down again to 438,996 per day, but mortality remains high at 12,322 new deaths per day.  WHO researchers that have now toured and analyzed Chinese sites say COVID-19 is very likely to have come to humans through an intermediary species, but could not be sure what kind of animal.  They also reported that the first cases at the Wuhan Seafood market very likely took place in early December, but were first identified as a non-flu virus at the end of December.  This coincides with what was believed before and with the Chinese narrative.

Overnight, Asian markets were mixed but mostly green.  Shenzhen (+2.43%) and Shanghai (+2.01%) were positive outliers, buoyed by both economic data and the release of WHO findings not being shocking.  Australia (-0.86%) was an outlier to the downside.  In Europe, markets are mostly red so far today on tepid trading.  The FTSE (+0.04%) and CAC (+0.03%) are just on the green side of flat while the DAX (-0.40%) is modestly lower and more indicative of the rest of the continent.  As of 7:30 am, US Futures are pointing toward a flat to modestly lower open.  The DIA is implying a -0.17% open, the SPY implying a -0.12% open, and the QQQ implying a -0.07% open at this point.

The major economic news for Tuesday is limited to Dec. JOLTS (10 am) and a Fed speaker (Bullard at noon).  Major earnings reports on the day include ARMK, AVYA, CARR, CNC, COTY, DD, FIS, FSV, FOXA, IT, GT, HBI, IIVI, INCY, JLL, LCII, MLM, MAS, SPGI, TDG, VSH, WCC, and WLTW all before the open.  Then after the close, AMRK, AKAM, AIZ, CSCO, CCK, FISV, FMC, GPRE, MAT, NCR, NGL, OI, PAA, PAGP, REYN, THC, TWTR, and WELL report. 

After the recent strong bullish run, markets are extended and need some rest. So far this morning, it looks like they may get it with a flat to mildly lower open. With very little economic or stimulus news expected and focus shifted to the Trump Impeachment Trial, it will be up to earnings to push. However, a lack of reason has never stopped the bulls before. So, don’t just expect a pullback. Wait to see it actually happening. The trend still favors those bulls.

Remember, nobody ever sustained a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed.  Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline.  Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: BLFS, CMCSA, ZM, GE, MU, INTC, VIAC. 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.

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