Markets gapped down Friday on Trade War fears (China and Canada) and perhaps second thoughts on good July Payrolls number (better than expected but less than half of the June increase).  After a roller-coaster day markets ended on an upswing.  The SPY closed up 0.07%, the DIA up 0.26%, and QQQ faired worst at down 1.15%.   VXX fell again to 26.53 and the T2122 (4-week New High/Low Ratio) closed up deep into the overbought territory at 96.20.  10-year bond yields rose slightly to 0.566% and oil (WTI) was down to $41.60/barrel.

Stimulus talks broke down Friday. The White House rejected an offer from Democrats, saying it wasn’t actually a $1.5 trillion reduction (to $2 trillion) and the administration could not see spending more than about $1 trillion.  Then on Saturday the President issued executive orders and memorandum that will at least possibly restart an Enhanced Unemployment program ($300 of federal funds, if states first put up $100 per week).  He also deferred Payroll Tax collection through December, deferred federal Student loan payments (again through December), and told the HHS to continue to review evictions for “reasonableness”).  The impact and timing of these actions is unclear and legal challenges are possible (likely?) for some of the fiats.  Sunday, the President said he is already considering revising the Enhanced Unemployment order to just be $300/week (avoiding a state mandate).

Over the weekend, CNBC also reported that BRK repurchased over $5.1 billion of its own stock in May and June. This was a record amount for the company and over twice that they had bought back in the same period the year prior.  However, this should be seen in the context of BRK having a record of $146 billion in cash on hand.  The reason this is of note is that Warren Buffett has famously said buybacks are a sign the company cannot find anything better to do with their money. So, this may be a tangible indication BRK feels stocks the stock market is way over-priced…or perhaps that their own stock is extremely underpriced.

On the virus front, in the US, the numbers show we now have 5,199,524 confirmed cases and 165,617 deaths.  The good news that even ignoring habitually under-reported weekend numbers, the averages of new cases are flattening again. The same appears to be true (in a lagging sense) of deaths, although the 7-day average is still over 1,000 per day.  Over the weekend, 26 states saw rising infection rates, but in good news, 18 states also saw decreasing hospitalization rates.  The bad news is that a survey found that one-third of Americans say they won’t take a vaccine if/when available and another 24% are unsure whether they will.  This means the effectiveness in a herd immunity sense would be dramatically lessened if over half the population were to refuse a vaccine.

Globally, the number of cases rose above 20 million as it reached 20,046,642 confirmed cases and 734,525 deaths.  A survey of German businesses found that they expect virus restrictions to last until at least April.  This comes as new cases have picked up in Germany, France, Spain, etc.  In Asia, Japan continues to see an uptick, and Australia’s second-largest state reported a record number of cases and deaths on Monday.

Overnight, Asian markets were mixed, but lean to the green side.  China, South Korea and Australia were the winners, with Japan, Hong Kong, and Singapore leading the losers.  In Europe markets are leaning more to the green side.  However, the moves are less than half a percent so far in their day.  In the US, at 7:30 am futures are flat with the 3 major indices straddling and close to the break-even line from Friday. 

The only major economic news for Monday is June JOLTS (10 am).  Major earnings include DUK, GOLD, MAR, MELI, ON, and PARR before the open.  Then after the close, BKD, CNXN, IFF, NGL, NTR, OXY, SPG, and TME report.

Markets continue to be relentlessly bullish, but at least the techs are looking a little tired and everything is extended.  The truth is all 3 indices could use a little rest.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon.  Stick to those trading rules and execute them with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, our job is to achieve trade goals consistently, not hit massive winners. 

Ed

The Daily Swing Trade Ideas for today: UNM, DFS, MS, XLU, JCI, SLB, NKE, FEYE, PM, HAL. 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

Markets opened flat and ground sideways until noon.  However, FB and AAPL led markets higher as the bulls stepped in again to put together a rally all afternoon.  On the day, QQQ was up 1.32% (another all-time high close), SPY up 0.67%, and DIA up 0.70%.  VXX fell again as there was no fear to be seen in markets, closing at 26.74 and T2122 fell back to 87.72, which is still in overbought territory.  10-year bond yields fell to 0.538% and Oil (WTI) was off slightly to $41.98/barrel.  Gold once again closed at an all-time high of $2,074.80/oz.

President Trump has imposed a 10% tariff on aluminum imports from Canada again (a year after they were dropped and one month after the USMCA pact went into effect).  Canada responded by threatening retaliatory tariffs on US goods according to Reuters.  To go along with his theme of nationalism and “protecting us from foreigners,” the President also banned US firms from doing business with the Chinese companies behind the TikTok and WeChat apps.  Byte Dance (owner of TikTok) has threatened legal action over the ban and had already been in talks to sell to MSFT for over a week.  There was no mention of what made this ban urgent now, when less than a week ago the President said if TikTok was sold to MSFT by Sept. 15 it could avoid the ban.

The other economic news out of Washington was the stimulus deal.  Both Republican and Democrat negotiators claimed more progress was made in talks, but that the sides remain far apart.  President Trump sought to pressure the negotiations by again making the threat to take Executive Orders to do the portions he likes.  (This renewed threat may have led to or helped the afternoon rally. I’m just not sure of the timing on his comments vs. the rally.)  It remains unclear exactly what measures he has the legal right to do.  However, he’s shown a tendency in the past to issue orders and make opponents challenge them in court where legal procedures can be used to render challenges irrelevant due to timing. Among the possibilities are a so-called Payroll Tax Holiday (although it is unclear if this would only be a postponement since he cannot rewrite the tax code by fiat). The other thing mentioned is an extension of the moratorium on evictions.

In the Real Estate Sector, mortgage rates fell again to another record low, the eighth record low this year. Oddly, at the same time a survey by the National Assn. of Homebuilders found that housing is still less affordable than it has been for over 18 months. (That claim is based on the percent of homes sold to people who qualify for loans who have an income at or below the US median.  In other words, tighter lending standards mean fewer “average Americans” qualify to buy a home.)  In a related story, CNBC also reported that 32% of Americans had missed mortgage payments as of July 31.

On the virus front, in the US, we went over 5 million cases as the numbers show we now have 5,032,805 confirmed cases and 162,812 deaths.  On the day, we saw over 58,600 new cases and over 1,200 deaths (still above the 7-day average).  TX saw its positive test rate climb to a tad more than 17% Thursday, just shy of the mid-July peak. Several other states instituted new or extended their mask mandates.

Globally, the number of cases has reached 19,293,179 confirmed cases and 718,326 deaths.  In Asia, India reported a record number of new cases as the (15% more than its previous high).  In Europe, for the second day in a row, Germany saw the largest number of new cases since early May.  Spain and France have also reached their highest 7-day average of new cases since April.

Overnight, Asian markets were in the red across the board, with the lone exception of South Korea which managed a gain of 0.39%.  The key driver was the trade war news as the US took the actions described above.  However, in Europe markets are more mixed and very near flat across the board.  The FTSE is “up” 0.02%, the DAX up 0.23%, and the CAC down 0.26%. In the US, at 7:30 am futures are flat, all 3 major indices are pointing to a down open as the futures sit at -0.38% in all 3 major indices.

The major economic news for Friday is limited to July Avg. Hourly Earnings, July Nonfarm Payrolls, and July Unemployment Rate (all at 8:30 am).  However, obviously July Non-farm Payrolls is a big one and is under close scrutiny by markets. Major earnings include DISH, IEP, MGA, UFS, and VTR all before the open.  There are no major earnings after the close.

Markets remain unrelentingly bullish and have made quite a nice run this week.  However, by most counts, markets are again extended.  Still, this most recent surge has come in a more orderly action (fewer huge gaps and whipsaw candles).  And that sort of price action tends to allow moves to last longer.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon.   

Stick to those trading rules and execute with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, a trader’s job is to consistently achieve goals and build their account.  Also bear in mind this is Friday…so lock in some profits ahead of the weekend news cycles.

Ed

The Daily Swing Trade Ideas for today: PM, PENN, AES, ABT, KO, FAST, NKE, MCD. 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

Markets gapped modestly higher Wednesday on a DIS beat of massively reduced expectations and were held back by a huge miss in new ADP July payrolls and the lack of progress on a stimulus package deal.  The SPY and QQQ chopped sideways the whole day, but DIA had a rally on the back of DIS and BA (after GOP Senators proposed $25 billion in airline industry aid.  On the day DIA was up 1.34%, SPY up 0.60%, and QQQ up 0.25%.  The VXX fell 2% to 27.04 and T2122 rose higher into the overbought territory at 94.81.  10-year bond yields rose to 0.551% and oil climbed to $42.16/barrel.  Gold also continued its rally closing at another record of $2,051.40/oz as the dollar continued to devalue. 

Bloomberg reported Wednesday afternoon that the country’s 4 largest banks (JPM, WFC, BAC, C) had $152 billion in loans that are in “deferred payments” status as of the end of June.  Since there is no standardized reporting of this information to the SEC, it is likely the total in “deferred” status is much higher.  For example, WFC only reports on residential loan deferrals (not commercial).  At the same time, C outlined only that most of its deferred payments are coming from credit cards.

The stimulus plan negotiations made some progress Wednesday with the White House agreeing to higher unemployment benefits through December (70% of compensation plus $400/week) and Democrats agreeing to reduce their Postal Service funding from $25 billion to $10 billion.  Meanwhile, away from the negotiations, Republican Senators who are up for reelection offered their own bill that is even more generous than what the White House agreed. The 3 Senators offered 80% of compensation plus $400-$500/week (at State discretion) for August and then 80% plus $400/week through the end of the year. Even though not part of the negotiations, since it was introduced as a bill, one has to assume their levels become the minimum of an end-deal.

In the US, the virus numbers show we have 4,973,741 confirmed cases and 161,608 deaths.  On the day, we saw over 55,000 new cases (still suspiciously well below a week ago and far below the 7-day average) and over 1,300 deaths (above the 7-day average).  KS reported late Wednesday that its counties that do not have mask mandates have seen higher spread rates than those that have mandates.  Meanwhile, another group (The Infectious Disease Society of America) urged a Federal mask mandate in an open letter to VP Pence.  In virus-related business news, JNJ reached a $1 billion deal with the government to produce 100 million doses of vaccine, once a vaccine has been approved. 

Globally, the number of cases has reached 19,005,651 confirmed cases and 711,863 deaths.  In Europe, both France and Germany reported their highest daily increase in cases since May while the spread in Spain is back to levels it saw in April. Poland also increased restrictions a notch again.  In Asia, Australia’s 2^nd largest city (Melbourne) has been placed on total lockdown for 6 weeks.  In China, despite a tiny new case count, the country has ramped up testing to 4.85 million tests per day.

Overnight, Asian markets were mixed but leaned toward the green side again.  The only significant movers were South Korea (+1.33%) and Singapore (+1.04%).  At the same time, China, Japan, and Hong Kong were modestly lower.  However, in Europe, we see red across the board at this point.  The FTSE is down 2%, CAC down 1.2%, and DAX down 0.85%.  The only news I know of that may be the driver in Europe is the Bank of England holding rates steady and warning of slower recovery.  However, it may be the trade war between the US and China or even the lack of a US stimulus deal that weighs on sentiment.  In the US, at 7:30 am futures are flat, all 3 major indices sitting just on the red side of break-even from yesterday’s close.

The major economic news is limited to Initial Jobless Claims (8:30 am) and a Fed speaker (Kaplan at 10 am).  Major earnings releases include ADNT, AEP, AES, BCE, BDX, BHC, BLL, BMY, CAH, CNP, CNQ, COMM, CORE, GLP, HFC, HII, HLT, HWM, JLL, KBR, LNG, MYL, NSIT, OLN, PH, PWR, TEN, THS, TRGP, VIAC, WLK, and ZTS all before the open.  Then after the close, AEE, AVT, BECN, BHF, CWK, DXC, ED, EOG, FLO, HLF, MWK, PBA, PRSP, POST, RSG, TDS, TMUS, UBER, UNVR, and WCN report.  

Markets remain seemingly unrelentingly bullish.  The SPY is now back to within 2% of its all-time high and QQQ seems to print new all-time highs daily.  However, by most counts, markets could use a rest again.  Still, this most recent surge has come in a more orderly action (fewer huge gaps and whipsaw candles).  And that sort of price action tends to allow moves to last longer.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon. 

As always, stick to your trading rules and execute with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, a trader’s job is to consistently achieve goals and build their account.  It’s a job, so treat it that way and work rather than hoping to catch those 2,500% “lightening in a bottle” trades.  There are a lot of reads that made a killing taking profit on the KODK explosion and a lot more that chased or wanted even more and have now blown out their account.  Learn that lesson.  

Ed

The Daily Swing Trade Ideas for today: BB, MRO, F, NLY, NIO, CAR, PAAS, ABT, URI, IAG. 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

Markets gapped down slightly Tuesday and then chopped sideways until the last hour of the day.  Then the bulls stepped in for a late-day rally that ran prices up into the close.  On the day SPY closed up 0.39%, QQQ up 0.37%, and DIA up 0.63%.  This made for another all-time high close in the QQQ.  VXX was down again, closing at 27.62 and T2122 rose into the overbought territory at 90.78.  10-year bond yields fell as money chased safety closing at 0.51% and Oil (WTI) finished up to $41.59/barrel.  Gold was also up again, closing at $2,034.60/oz. 

The stimulus deal remains far from done.  Interestingly, the splits in the GOP side have resulted in Senate Majority Leader McConnell being sidelined.  When asked Tuesday evening, he was unaware of the status of negotiations.  However, he did say that if / when the White House and Democrats do reach an agreement, he is prepared to support the deal.  Meanwhile, Speaker of the House Pelosi told Fox News she doesn’t think a deal will be reached this week, while the White House told them a deal will be made this week. Negotiators will resume talks Wednesday.

Late in the day Tuesday, Bloomberg reported that Fed sources tell them the FOMC is expected to soon announce another major push to add inflation to the economy.  This is nothing new as markets seem to have been banking on such a move with rising commodity prices and a falling dollar.  However, it has never been announced that this is actually an official policy.  The new policy and programs aimed at implementing it should be announced sometime in the next few weeks.  Still, there are reportedly internal detractors to the policy who fear the idea of purposefully raising inflation in a high unemployment environment as well as fearing the “unintended consequences” of simply pushing rates to an arbitrary number hoping for only good effects. 

In the US, the virus numbers show we have 4,918,770 confirmed cases and 160,323 deaths.  US daily numbers remain questionable as among others, CA reported dramatic undercounts the last few days due to the changes in destination and format of reporting, as well as now having two formats under new HHS policies.  On the day the report was 54,504 (low relative to a week ago) new cases and 1,362 deaths (which is more in line with historical data).  Tuesday also saw another of the expected cases of students testing positive after returning to schools.  This time a second-grader in GA.

On Tuesday, 34 State Attorneys General wrote a letter to HHC Sec. Azar warning him that GILD is not supplying enough of the drug remdesivir and that GILD’s recently announced drug pricing is impeding treatment of the virus.  They urged the use of the Bayh-Dole Act to allow another company to make the patented drug (which was developed partially using public funds).  In addition, 6 States (LA, MD, MS, MI, OH, VA) have acted to fill the void left by Federal inaction by forming their own pact to purchase 3 million quick-result tests themselves from BDX and QDEL rather than wait any more on Federal action. 

Globally, the number of cases has reached 18,731,900 confirmed cases and 705,023 deaths.  In China, the recent surge of cases seems to have been back under control with 22 reported new cases today.  However, Japan reported over 1,200 new cases for the 8^th straight day over 1,000, which for them is wildfire spread. In Australia, the 3^rd day of lockdown has not yet seen a break in new case numbers. Deaths also remain at record numbers in Victoria province.

Overnight, Asian markets were mixed, but leaned toward the green side and were mostly calm.  Only South Korea (+1.4%) and Indonesia (+1.03%) saw one percent moves.  In Europe, we see green across the board at this point in the day on the back of good European Earnings reports.  The FTSE is up 1% and the DAX and CAC are both up eight-tenths of a percent so far.  In the US, at 7:30 am futures are pointing to a modest gap higher at the open.  The DIA and SPY are looking to open up about 0.60% and the QQQ up about 0.32%.  

The major economic news for Wednesday includes ADP nonfarm Payrolls (8:15 am), Import/Exports (8:30 am), July Markit Service PMI (9:45 am), July ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (10L30 am), and a Fed Speaker (Mester at 5 pm).  Major earnings reports include ABC, ATH, BWA, CDW, CVS, DISCA, HMC, HUM, NLSN, NI, NXST, ODP, PRGO, PGR, REGN, REYN, SRE, TA, TEVA, TRI, VRT, AND W before the open.  Then after the close, ADT, ALB, CWH, CVNA, CENTA, CTL ,CF, DCP, DOX, ET, FISV, GDDY, LNC, MET, PSA, RE, RMD, SQ, TRMB, UHAL, WELL, and WDC all report. (Sorry for the wrong list yesterday.)

Markets remain stubbornly bullish, but in a methodical way (not the huge gaps and big whiplash candles we saw not too long ago).  We are approaching resistance in the large-cap indices, but the QQQ has clear skies overhead. The main driver will continue to be the stimulus deal negotiations.  Democrats say they are staunch at $3.4 trillion and the Republicans, while split, seem to be at a number around $1 trillion.  The area in between is where traders will hope or fear as Mr. Market either counts his money too soon or expects less than we’ll get.  

Keep an eye on those mega-cap FAANG stocks.  Yesterday they again pointed the way.  Although they were split 50/50 on green/red lines among the eight largest cap stocks, the percentages pointed to exactly the index results we saw.  Also, don’t forget to stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Our job is to consistently make our goals, not catch lightning in a bottle all in one trade.

Ed

The Daily Swing Trade Ideas for today: BJ, GPS, XLB, DG, XLP, PM, HD, XLI, VZ, APA, FRO. 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

Large Caps gapped a little over a half percent higher at the open.  The rest of the day saw a sideways rollercoaster chop within a half percent range.  The tech-heavy QQQ did the same thing except that its gap and chop range were both eight-tenths of a percent instead of half a percent.  On the day, QQQ was up 1.35%, DIA was up 0.90%, and SPY was up 0.70%.  VXX was flat, closing at 28.46 and T2122 rose back close to the overbought territory at 79.59.  10-year bond yields gained a bit to 0.554% and Oil (WTI) rose back to $40.78/barrel. 

On Monday MSFT confirmed they are in talks to buy the TikTok application.  MSFT stock was up over 5.6% on the news. As we know President Trump has threatened to ban the application, ostensibly on security concerns. However, many analysts see the move as a means of slowing Chinese growth in data technology, an industry dominated by US companies. Hence, the President’s “suggestion” the MSFT buy the whole company and not just North American operations. Regardless, the ban threat is the impetus for Chinese company Byte Dance to sell the app. However, going a stunning step further, Trump said Monday that the US government should be paid a substantial amount of money because he is the one forcing Byte Dance to sell.  “Nice business you have there, it’d be a shame if it burned down.  And it will burn down unless you sell it to somebody I like better, by a specific date, and I also get a nice cut from the deal.”

During the day, several Fed members pushed the urgency of getting more fiscal relief.  Bloomberg cited comments from 4 of the Fed voters essentially saying it is critical that more money is pumped into the economy from the fiscal side…and soon.  They all also made the point that unless inflation spike North of 2%, the Fed will do nothing to slow their own stimulus programs. Meanwhile, on the fiscal side haggling resumed Monday. All sides said the talks were productive, but there was no deal reached.  In another Fed-related story, the FOMC said it has raised its own borrowing limit again, this time to $1 trillion for Q3 in order to support its monetary stimulus programs.

In the US, the virus numbers show we have 4,862,513 confirmed cases and 158,968 deaths.  The daily new case count fell precipitously (and perhaps suspiciously) Monday to 48,622 (from over 71,000 Friday or even 68,000 the prior Monday for example). This could be an anomaly, the result of HHS taking over data collection/reporting, or simply great luck.  In any event, IF the numbers are accurate this is a major 30% step in the right direction.  Deaths stayed at their normal pattern of low Monday numbers at 568, but even so a tremendously lower number Friday or even the previous Monday.

Globally, the number of cases has reached 18,476,324 confirmed cases and 698,224 deaths.  In Australia, they have deployed their military to enforce isolation as well as levying very stiff fines in order to curb the spread.  In Europe, a German Medical Assn. reported today that they believe the country is now experiencing a second wave.  This also fits with the surge of cases seen in Spain.  In Asia, India reported a sixth straight day of over 50,000 new cases reported (number seen to be widely under-reported in that country due to medical infrastructure and testing capacity).

Overnight, Asian markets were mostly well to the positive side.  Only Shenzhen was red and Shanghai flat.  The rest of the Asian markets were strongly green.  In Europe, markets are a bit more mixed and much closer to flat as poor earnings and dividend cuts such as by BP take their toll.  The DAX is in the red with the CAC flat, and the FTSE modestly green so far today.  In the US, at 7:45 am futures are pointing to a modestly lower open.  The DIA and SPY are looking at an open about 0.30% lower, while the is looking toward a gap down of 0.45%.  

The major economic news for Tuesday is limited to June Factory Orders (10 am).  The major earnings reports on the day include ACM, AMCX, AME, ARMK, ATI, BP, EMR, EXC, EXPD, FIS, HSIC, IT, LDOS, LEA, OMI, REZI, SPR, TDG, USFD, VMC, WEC, WRK, and ZBH all before the open.  Then after the close ACHC, ALL, ATVI, AIZ, BBSI, DIS, DK, DVN, ENLC, EQH, FNF, FOXA, MCHP, OI, PAGP, PRU, PXD, TX, and WU report.

Markets are not wildly bullish, but the whippy grind higher continues.  A positive trend in virus news certainly can’t hurt, even if it is only one data point so far.  However, the real driver is the negotiations on a stimulus deal.  When reached, that should buoy markets as we know Mr. Market loves him some free money.  

As always, keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Remember, our job is to make our goal consistently, not to win the lottery on one trade.

Ed

The Daily Swing Trade Ideas for today: AA, NIO, TAL, EBAY, TNA, DHI, XRT, CARR. 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

Markets gapped higher Friday about six-tenths of a percent on the back of huge beats by the major tech stocks.  However, this was met with an instant selloff that more than faded the gap.  The lows were reached about 1 pm, followed by an hour of sideways grinding.  However, at 2 pm a strong late-day rally drove prices higher right into the end of the day and saw prices close on the highs.  For the day, DIA gained 0.41%, SPY gained 0.79%, and QQQ gained 1.78% as those major FAANG stocks (particularly AAPL) led the market.  VXX fell to 28.52 and the T2122 4-week New High/Low Ratio fell to 59.68.  The 10-year bond fell slightly to 0.533% and Oil (WTI) rose to $40.45/barrel. 

The Enhanced Unemployment Benefit expired Friday as Congress, the Senate and the White House made little to no progress on negotiations.  Republicans blamed Democrats for not accepting partial stop-gaps and Democrats blamed Republicans for waiting months to get to work and not even arriving at a proposal half of their own caucus will support.  This all comes as rent and loan defaults are a growing concern in the real estate and banking sectors.  Somewhat related to more stimulus, this weekend Fitch reduced the US Debt outlook from stable to negative citing current high fiscal deficits, deteriorating public finances, and a likely path to increasing medium-term debt.

In the virus front itself, in the US, the virus numbers show we now have 4,813,984 confirmed cases and 158,375 deaths.  Friday saw over 71,000 new cases, well above the 7-day average. Deaths also remained far above the 7-day average at over 1,100 for the 5^th day in a row.  Dr. Fauci said this weekend that the virus is so contagious it is likely to never completely disappear, even with effective vaccines. On Sunday, his counterpart Dr. Birx warned that we are now in a new phase with “extraordinarily widespread” cases in the US.

Globally, the number of cases has reached 18,258,528 confirmed cases and 697,395 deaths.  On Friday the W.H.O. reported a single-day record of over 300,000 new cases across the world.  This weekend Russia said it is gearing up for a national vaccination program planning to start with healthcare workers and teachers.  They’ll use a vaccine supposedly developed by themselves, although no scientific study data on the vaccine has been released.  Western experts are skeptical that Russia really has an effective vaccine developed, tested, manufactured, and ready for rollout all 4-6 months ahead of the rest of the world.  However, that is the Russian claim.  In Australia, strict new measures including total curfews have been implemented in its second-largest state.

Overnight, Asian markets were mixed again, with Japan and China as big gainers (on private survey reports showing China’s PMI (not government numbers) came in at a blowout 52.8 (highest in 9 years).  In Europe, markets are basically green across the board, but there is a clear dichotomy so far today with the DAX up over 2% and the FTSE up less than seven-tenths of a percent on strong Eurozone Manufacturing PMI.  In the US, at 7:30 am futures are pointing to a higher open, but following the European example, with a large spread.  The DIA is looking to open up 0.30%, the SPY up 0.47%, and the QQQ up 0.91%. 

The major economic news for Monday is limited to July Mfg. PMI (9:45 am), July ISM Mfg. Employment and July ISM Mfg. PMI (both at 10 am).  The major earnings reports on the day include AHCO, ACM, AMCX, AME, ARMK, ATI, BP, EMR, EXC, EXPD, FIS, HSIC, LDOS, LEA, OMI, REZI, SPR, TDG, USFD, VMC, WEC, WRK, and ZBH all before the open.  Then after the close ACHC, ALL, ATVI, AIZ, BBSI, DIS, DK, ENLC, EQH, FNF, MCHP, OI, PAGP, PRU, PXD, TX, and WU report.  

The whiplash continued Friday with all three major indices printing Hammer or Hanging Man type candles. However, while both large-cap indices continue to consolidate, the mega-tech earnings blowouts saw the QQQ nearing a retest of the all-time highs. Manufacturing data that comes out this morning is expected to give the US a boost the way it did in Asia and Europe. However, remember that the virus remains much more of an unresolved problem here than elsewhere among the top economies.

The trend remains bullish, but volatility and certainty of direction also plays a significant role. So, continue to keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick with your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Our job is to achieve our trade goals on a consistent basis, not to hit home runs every time we swing the bat.

Ed

The Daily Swing Trade Ideas for today: RIOT, NAT, IAG, DXC, NLOK, CSCO, PYPL, MSFT, ADBE. 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

Markets gapped down on the 33% Q2 GDP contraction and unexpected rising jobless claims.  However, after a half-hour of follow-through, the bulls stepped back in and rallied stocks until 1 pm.  The rest of the day was a tight-range grind sideways.  This left the SPY down 0.36%, the DIA down 0.84%, and the QQQ up 0.52% on the day. The VXX climbed 2% to 29.20 while T2122 fell to 73.94.  10-year bond yields fell to 0.548% and Oil (WTI) dropped 2% to $40.41/barrel. Yet, despite all this on the day, the main characteristics for the last week have been consolidation and chop.  

After the close AAPL, AMZN, FB, and GOOG all reported strong beats.  With their mega-caps, this will surely drive markets higher at least at the open Friday. AMZN’s surge in sales and profit was expected with all the pandemic online buying but it was still impressive.  AAPL’s beat was much larger than expected with a major beat on iPhone sales to give them a record quarter.  They also announced a 4-for-1 stock split as on August 24.  It is also worth noting the FB beat on ad revenue despite the advertising boycott, though they did mention that it could have an impact for Q3.

In the US, the virus numbers show we have 4,635,226 confirmed cases and 155,306 deaths.  With new cases came in at 68,569 Thursday (above the 7-day average) and deaths remained high at 1,465 (far above the 7-day average).  Several states had record new cases confirmed Thursday, but not the usual suspects.  This time it was states such as MO that set records.  However, FL had almost 10,000, TX almost 9,000, and CA almost 8,200 as they still lead in actual new case count.  In a virus-impact story, after the close, S&P said that over 150 firms that received PPP loans are planning layoffs.  This is only based on layoff notices and does not include all states.  44% of the layoffs are described as “permanent” with 22% more “unclassified.” 

Globally, the number of cases has reached 17,505,359 confirmed cases and 677,459 deaths.  In Latin America, Argentina reported its highest number of infections and deaths on Thursday. Meanwhile, Brazil continues to see large numbers with another 58,000 new cases.  Closer to home, Mexico   In Asia, the outbreaks in Japan, Hong Kong, Vietnam, India, and Australia.  China also reports a 3^rd straight day of the new outbreak, but they have a stricter measure than we do, as they mean over 100 cases, not tens of thousands.  

Overnight, Asian markets were mixed yet again, with Australia down 2% and Japan down almost 3%.  However, Shenzhen was up over 1.3% and Shanghai up 0.7% as Chinese Factory Data beat expectations.  The remainder of Asian Market moves were modest and probably leaned to the red.  In Europe, markets are also mixed, but lean much more heavily to the green side.  The 3 major bourses all have very modest moves so far, with the FTSE flat, CAC up a quarter percent, and the DAX up six-tenths at this point in the day.  This all comes as Eurozone GDP fell 12.1% in Q2. In the US, as of 7:30 am futures are pointing to one percent gap up in the QQQ, but the DIA and SPY are just on the green side of flat.

The major economic news for Friday includes June PCE, Q2 Employment Cost, and June Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  The major earnings reports include ABBV, AON, BAH, BERY, CAT, CBRE, CHD, CHTR, CL, CVX, D, GT, HRC, IMO, ITW, JCI, LHX, LYB, MRK, NWL, PBF, PEG, PSX, SNA, SPB, TU, VFC, WY, and XOM all before the open.  INTU is the only major earnings after the close.  

The consolidation and back-and-forth chop continued again Thursday.  However, the mega-tech earnings blowouts should give the bulls some energy early today.  Vaccine manufacturers continue to rack up major contracts as Japan and the US both signed major deals.  So that industry’s stocks should get a boost.  However, remember that despite the swings, nothing has really changed in the trend or chart.  The trend remains bullish and the chart remains consolidating.

Continue to keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Remember, our job is to make our goal consistently, not to win the lottery on one trade. And don’t forget it’s Friday, so lock-in some profits ahead of the weekend spin cycle.

Ed

The Daily Swing Trade Ideas for today: CWH, LOGI, FAST, XLK, AA, CRWD, ABT, KRE, COF. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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

Markets gapped up about three-tenths of a percent and proceeded to put in a slow, steady all-day rally.   As expected, the Fed decision and statement gave no surprises and only the big Tech anti-trust hearings caused any blip at all.  However, stocks still closed near their highs.  Yet even with a nice candle on the day, no major ground has been gained by the bulls or bears for the week as a whole.  The SPY closed up 1.20%, the DIA up 0.59%, and the QQQ up 1.15% for the day.  The VXX fell to 28.52 and T2122 climbed well back into the overbought territory at 91.57.  10-year bond yields fell slightly to 0.577% and Oil (WTI) rose slightly to $41.30/barrel.

The key takeaway from Fed Chair Powell’s press conference was that the FOMC is “not even thinking about raising rates” and while recovering, “the economy remains well below the levels at the beginning of the year.”  So monetary policy should remain full speed ahead on the printing presses. On the Fiscal side, the Democrats and Republicans remain far apart (as well as the Republicans within their own ranks) on another Stimulus bill agreement.

On the Anti-trust hearings, the CEOs of AAPL, AMZN, FB, and GOOG were beaten up with evidence of anti-competitive activities.  The CEO’s general approach seemed to be denial or reframing of the allegations.  However, Jeff Bezos went a different route, claiming to be shocked and concerned at the accusations.  It is worth noting that FB, AMZN, GOOG, and AAPL stocks all rose well over a percent on the day. So, Mr. Market did not care about at least the first couple hours of the process.

In the US, the virus numbers show we have 4,568,375 confirmed cases and 153,848 deaths.  With new cases came in at 66,921 Wednesday and deaths rose again to 1,485.  TX passed NY to join CA and FL with the distinction of being the most-infected states.  This came as another group of scientists called for a second national shutdown.  The first group was 150 scientists who wrote an open letter last weekend.  Johns Hopkins University Infectious Disease Department scientists became the second group, recommending 10 steps which included a national lockdown and nationally mandatory masks to stem the tide.

Globally, the number of cases has reached 17,213,663 confirmed cases and 670,909 deaths.  In Asia, Australia, Hong Kong, India, and Vietnam all had record numbers of new cases while Japan and South Korea were near record highs. In Europe, Italy extended its state of emergency through Oct. 15.  This comes as Germany reports the sharpest quarterly economic drop on record (a 10.1% contraction).

Overnight, Asian markets were mixed yet again, but this time lean toward the red.  However, the moves were modest.  The lone outlier is Taiwan, which was up 1.45%.  In Europe, markets are strongly red across the board on poor economic data and a resurgence of cases in a number of EU countries.  As of this point, the FTSE is down 1.92%, the DAX down 2.85%, and the CAC down 1.68%.  In the US, as of 7:30 am futures are pointing to a once percent gap down across the 3 major indices.  However, the economic data at 8:30 am is likely to have a significant impact one way or the other.   

The major economic news for Thursday is limited to Q2 GDP and Initial Jobless Claims (both at 8:30 am).  Major earnings include AOS, AGCO, ALXN, AMT, BUD, APTV, ARW, AZN, BAX, CARR, CI, CLF, CNHI, CMCSA, COP, DAN, DBD, DD, FNMA, FMCC, FMS, GPC, GPI, HBI, HUBB, IDA, ICE, IP, K, KDP, KHC, LIN, LKQ, LLY, MA, MAS, MCO, MD, MMC, MT, NEM, NOC, ODFL, OSK, PG, SAH, SIRI, SNDR, SO, SWK, TAP, TMHC, TXT, UPS, VLO, WM, WLTW, XEL, XYL, and YUM all before the open.  Then AAPL, AJG, AMZN, ATUS, BLDR, CC, DVA, EA, F, FB, FLEX, FLS, GILD, GOOG, HIG, INT, LPLA, MHK, MOH, MTZ, RLGY, SEM, X, VRTX, and XPO all report after the close.

Wednesday gave us a nice candle in an otherwise consolidating last week. With no sign of a stimulus deal yet, it will surely be GDP and Jobless Claims that call the tune for the day. However, there are a lot of important earnings today(but most of the mega-cap tech names are after the close). So, volatility is likely to continue after the news.

Did you ever think you’d see a day when if we were lucky enough to see a 30% GDP contraction, that might be seen as a major beat of estimates? The point is we are in uncharted waters. We really don’t know how good or bad any number will be seen by the overall market. All we know for sure is that bulls have been wearing their rose-colored glasses for some time and that whipsaws are fast.

Keep the FAANG stocks in your line of sight as they will point the way. Follow the trend, don’t try to predict reversals or chase moves that got away. And always, always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: OIH, V, SIG, SYF, FITB, FAST, COF. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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

Stocks opened down slightly, then ground sideways until 3 pm when a late-day selloff closed us on the lows Tuesday.  Overall, it was a blah summer day, seeming to wait on Fed news or some other catalyst. On the day, SPY closed down 0.59%, DIA down 0.76%, and QQQ down 1.27%.  Oddly on a down day, VXX also closed down to 29.17, but as expected T2122 also fell just a touch to 78.07.  10-year bond yields were flat at 0.579% and Oil (WTI) fell back to $40.93/barrel.  On the upside, Gold closed at another all-time high.

During the afternoon, the Fed announced it is extending its pandemic loan programs (previously planned to end in September) through at least the end of the year.  At the same time, Senate Majority Leader McConnell was telling the press what he refuses to negotiate with Democrats and other Republican Senators were saying they oppose the GOP plan.  Not to be outdone, Senate Minority Leader Schumer was attacking the Republican plan from the opposite direction.

Last evening, V reported sharply lower revenue and earnings.  The company said that even as the country was reopening in June, they saw spending using their cards down 10% during the month (which was actually an estimate beat).  BBY also announced that they will join the bandwagon of companies that will not open Thanksgiving Day.

In the US, the virus numbers show we have 4,498,475 confirmed cases and 152,343 deaths.  With new cases came in at 64,729 Tuesday and deaths more than doubled day-to-day to 1,245. FL and NC both reported a record number of virus hospitalizations Tuesday.  However, FL also reported a bit less than their 7-day average of new cases. Outbreak fears seem to have shifted from the sunbelt to the IN, OH, KY, and TN area.

Globally, the number of cases has reached 16,923,001 confirmed cases and 664,191 deaths.  UK PM Johnson warned of a second wave in Europe.  This came as the UK and Germany both toughened their travel restrictions for Spain based on an outbreak in the Barcelona region.  This came as the Spanish PM warned tougher measures will be needed unless the spread is broken in the next 10 days. In Asia, the Vietnamese PM said every city and province in his country is now at high risk for infection and that they will institute strict lockdowns.  Hong Kong Chief Executive Lam said the city was on the verge of a crippling outbreak as well.

Overnight, Asian markets were mixed yet again, with Japan and India significantly lower, but China strongly higher.  The rest of the national bourses were mixed and closer to flat.  In Europe, a similar scene is taking place with the only significant moves being France to the upside and Italy to the downside so far on Wednesday.  In the US, as of 7:30 am futures are pointing to a flat to mildly green open. 

The major economic news for Wednesday includes June Trade Balance and June Retail Inventories (both at 8:30 am), June Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), FOMC Statement and Rate Decision (2 pm), and the FOMC Press Conf. (2:30 pm).  Major earnings include AAN, AER, ANTM, ADP, AXTA, BA, BSX, BCO, BG, CLS, GIB, CME, ENB, EPB, ETN, ETR, GD, GE, GM, HES, IPG, MGLN, MKL, NSC, OC, PAG, R, SNY, SC, SMG, SPOT, TROW, TEL, and TT all before the open.  Then after the close, ADM, AMP, APA, AR, ASGN, AVTR, CCI, CERN, CTSH, CXO, EQIX, FBHS, FTI, LRCX, PYPL, QCOM, QRVO, NOW, SFM, TPC, URI, and YUMC.

With the FOMC not until afternoon and the government arguing over who gets what money and which politician gets the credit, it looks like earnings will drive any move prior to the Fed. And while the FOMC is not expected to make any policy moves, the market is waiting for either reassurance or a scare from Chair Powell’s comments. So, while we will likely see volatility in spots, it would not be unexpected to see drift until 2pm. Also, remember that most Fed moves see a whipsaw 10-15 minutes after the initial move.

Keep an eye on those FAANG stocks as our “canary in the coalmine” and follow the trend. Don’t try to predict reversals, don’t chase moves that got away, and always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: NIO, GM, XLU, KR, HOG, YNDX, ZS, IYR, BAC. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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

A quarter percent higher open led to a roller-coaster morning.  However, an afternoon rally saw markets close near their highs, particularly on strength from the mega-cap tech stocks.  The QQQ gained 1.78%, SPY gained 0.74%, and DIA gained 0.48%.  The VXX closed down to 29.34 and T2122 settled right on the edge of overbought territory at 80.08.  10-year bond yields rose a bit to 0.610% and Oil (WTI) also rose slightly to $41.61/barrel.  It’s also worth noting that gold soared to a record high of $1,931.50/oz.

Last evening INTC announced their head of Engineering (who was widely expected to be the next CEO) will leave the company next Monday.  No word on if or how this relates to INTC’s announced engineering and manufacturing delays. Unrelated, but about the same time, T subsidiary Warner Brothers also announced that their widely-anticipated new high-budget film Tenet will be released internationally first and then a few weeks later in select US cities in an attempt to reduce virus impact. GOOG announced they are extending their work-from-home plan through at least July 2021.  Finally, MCD reported early this am with a 30% revenue drop and a same-store sales short-fall of just 2.3%.

In the US, the virus numbers show we have 4,433,532 confirmed cases and 150,450 deaths.  With new cases falling to 61,571 and deaths down to 596, there are signs of plateauing again in at least the 3 worst-hit states (FL, TX, and AZ).  Better yet, PFE announced that they had started their phase 3 trial in conjunction with German biotech partner BNTX.  This was a timeline acceleration to avoid falling behind MRNA whose own phase 3 trials also began on Monday.  It will take a couple of weeks to enroll enough participants in either study and the preliminary results ought to be available as soon as the end of October.

Globally, the number of cases has reached 16,672,852 confirmed cases and 657,270 deaths.  The numbers are worrying.  However, the real issue of concern is that even the countries that actually acted fast and decisively, and seemingly had the virus under control, are now seeing a resurgence.  Among these are China, Hong Kong, Vietnam, Japan, and South Korea.  The obvious question is if countries with extremely high mask compliance and fast, strict quarantines have trouble controlling this virus, what does that imply for much less compliant and much more economically-focused countries like the US?

Overnight, Asian markets were mixed again, but leaning more to the green side. China, South Korea, and India all put up gains of over 1%.   Japan, Australian, and Thailand were the losers on the day, but not down as much as the winners were up.  In Europe, markets are much more on the red side so far in the day.  The moves are modest, but the red is broad-based with only Greece, Belgium, and the FTSE on the green side.  In the US, as of 7:30 am futures are pointing to a gap lower a third of one percent at the open. 

The only major economic news for Tuesday is Conf. Board Consumer Confidence (10 am).  However, there are a lot of major earnings with ABG, BEN, CMI, CNC, DHI, DTE, ECL, GLW, HOG, HUN, IVZ, LH, LW, MCD, MDC, MLM, MMM, MO, OMC, PFE, PII, ROP, RTX, SPGI, SHW, XRX, and ZBRA are all among those reporting before the open.  After the close, AMD, AFL, AKAM, AMGN, CAR, CB, CHRW, CE, CYH, EBAY, EIX, FTV, THG, JNPR, MDLZ, MRC, NCR, OKE, PKG, SBUX, SSNC, STX, UNM, and V all report.

Monday gave us morning indecision and an afternoon rally (perhaps on Fed hopes). However, nothing really changed in the trend or chart.  While it was a decent candle in the QQQ, we still did not print a Morning Star, the bullish trend remains in place, and there remains work ahead if bulls plan to push up through the top again. 

Today is a light day on planned news and may well be driven by earnings, hopeful vaccine news, and politicking over stimulus. However, we could also sit on our hands for a day waiting on reassurance from the Fed.  

Keep an eye on those FAANG stocks as our “canary in the coalmine.”  Follow the trend, don’t chase or predict reversals, and always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: WU, XHB, COF, IBM, OIH, HAL, DFS, SLB, HPR, XLV, VXX. Trade your plan, take profits along the way, and smart. Also, don’t forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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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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.

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