New Year’s Eve saw indecisive trading in the large caps and a downtrend to the intraday action of the QQQ. All this occurred on low volume, but there was a surge of Dark Pool volume at 4 pm after normal trading had closed. This left us with a Doji DIA, Inverted Hammer SPY, and a fat-bodied Spinning Top in the QQQ. All 3 major indices were black candles and none of them failed the T-line on the day. The VXX fell almost a percent again to 18.53 and T2122 rose and remains in overbought territory at 86.54. 10-year bond yield rose to 1.512% and Oil (WTI) fell 2% to $75.45/barrel. For the week, all 3 major indices printed large high-wick Shooting Star-type candles (near all-time high resistance), which may bode ill for this coming week.
Airlines continue to suffer, with more than 5,000 US flights canceled over the holiday weekend. (That comes to more than 15,000 total cancellations and thousands of other delays just since Christmas.) In addition to the massive wave of omicron-caused staff shortages, now bad weather has closed major airports like Chicago O’Hare. JBLU CEO told CNBC that “the next few weeks are going to be tough,” but went on to say the CDC cutting the isolation period after contracting covid (from 10 days to 5 days) is going to help a lot. (All the US airlines had urged the CDC to make that move in December as staff shortages were hurting their businesses.) Among the US airlines, LUV has been the least hit, losing only about 10% of their flights. However, even they are impacted as the FAA has slowed plane traffic (due to staff shortages) over the weekend at the company’s major hub of DFW.
TSLA reported good news on Sunday. The EV maker delivered just over 936,000 in 2021. This includes a record 308,600 in Q4. However, not all the news was good. TSLA also recalled 475,000 cars in the US over camera and trunk issues. TSLA stock is up more than 7% in premarket in reaction to the Sunday news.
JPM, C, and GS officially joined the ranks of companies that are going back to “work from home” to start 2022. This follows suit with many others across most industries, but specifically MS, BLK, and JEF among major financial institutions. In the notices, JPM and C urged employees to get a booster vaccination. JPM said they hope to be back to the office by February 1 and any unvaccinated staff will be required to take a rapid test at least twice each week.
Overnight, Asian markets were mixed on modest moves outside of two outliers. India (+1.57%) was an outlier to the upside, while Malaysia (-1.18%) was the outlier to the downside. Beyond those anomalies, Shanghai (+0.57%), Shenzhen (+0.41%), and South Korea (+0.37%) led gainers. Meanwhile, Hong Kong (-0.53%) and Japan (-0.40%) paced the losses. In Europe, with the lone exception of the UK, markets are strongly green across the board as of mid-day. The FTSE (-0.25%) is an outlier, but the DAX (+0.93%) and CAC (+1.15%) are typical of the continent in early afternoon trading. As of 7:30 am, US Futures are pointing toward a strongly green open to the new year. The DIA implies a +0.52% open, the SPY is implying a +0.64% open, and the QQQ implies a +0.73% open at this hour. Meanwhile, 10-year bond yields are up to 1.534% and Oil (WTI) is up over half of a percent in early trading.
The only major economic news scheduled for release Monday is Dec. Mfg. PMI (9:45 am). There are also no major earnings reports scheduled for either before or after the market on Monday.
As we kick off the new year, markets are looking to get off to a strong start. However, despite the apparent nice open, keep in mind that we are near all-time high resistance. So, keep an eye on those levels.
Stick to your trading rules and on managing the things you can control. Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, when you're wrong, admit it and take your loss. (That's why we set stops.) Trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.
Swing Trade Ideas for your consideration and watchlist: SOFI, MRO, F, ATVI, PENN, FCX, ON, BABA. 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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