Markets gapped down Friday and then gave us indecision to end the week.  Both the SPY and DIA printed Doji and QQQ printed a White Spinning Top.  Only the SPY broke its uptrend line, but only the QQQ flipped its Volatility Stop (10. 1.5) from green to red.  For the day, the SPY lost 0.64%, the DIA lost 0.75% and the QQQ lost 0.95%.  VXX was also flat at 30.17 and T2122 fell back into the mid-range at 66.97.  10-year bond yield were flat at 0.587% and Oil (WTI) climbed slightly to $41.34/barrel.  For the week, we had indecisive trading that closed down a bit as once again the mega-cap tech names led markets by the nose all week.

This week has the potential to be the most news-filled of the summer (at least so far).  Republicans are expected to finally finish their relief plan so that negotiations can begin with Democrats, perhaps as soon as Monday.  Over the week, there will also be 1,200 major earnings reports released, including most of the huge FAANG stocks that truly drive market direction.  The CEOs of those FAANG stocks will also be testifying before Congress during an Antitrust hearing on Wednesday.  On that day, the Fed also ends its regular meeting and although no new announcements are expected, their statement and the Q/A will be important.  Lastly, on Thursday the first read of Q2 GDP will come out, giving us as idea how bad the economy crashed during the first belated shutdown.  On top of all this, we know virus and virus impact news will continue hot and heavy.

On Sunday, Bloomberg reported the big banks such as BAC, GS, and JPM now expect the EU’s economic recovery to be larger and faster than that of the US.  The overall theme is that leadership and fast action breed public confidence and the EU scores much better at this than the US.  Those experts point to July PMI data, where the EU PMIs handily beat analyst expectations, while the US PMI came in below expectations.  In the longer-term, the EU will also have much less debt to pay off.  The US has spent a bit more than $10 Trillion (so far) in combined fiscal and monetary stimulus (not including state spending).  By contrast, the supposedly socialist EU, with a 50% larger population, has spent a fourth of that number even including individual EU-member spending. The bottom line is that companies focused on EU markets may be favored over those that focus on US markets in the short to medium-term timeframes.

In the US, the virus numbers show we have 4,371,992 confirmed cases and 149,852 deaths.  Over the weekend, the country saw the 7-day averages rise to 69,000 new cases and 937 new virus deaths. On Friday, MCD and CMG both also joined the long list of retailers now requiring all customers to wear masks.  Thankfully, TX and AZ saw a reduction in new reported cases.  However, this may be less a trend and more about the hurricane and normal weekend activities impacting numbers.

Globally, the numbers have reached 16,446,932 confirmed cases and 652,852 deaths.  It took just over 4 days for the world to go from 15 million to 16 million cases and that pace continues.  This came as new outbreaks were found in China, Hong Kong, Vietnam, Japan, Spain, Sweden, Romania, and Bulgaria.  The Chinese outbreak was the largest since the initial Wuhan eruption. The W.H.O. also reported rampant spread throughout sub-Saharan Africa.  Finally, Latin American has become the current epicenter with Brazil, Mexico, Peru, and Chile now all among the top 8 most-infected countries.

Overnight, Asian markets were mixed but generally close to flat.  The exception was Thailand, where in addition to other news items, they are experiencing public demonstrations related to both government response and social problems.  (Not a great atmosphere in a country prone to military dictatorships.)  In Europe, markets are following Asia. The major bourses are all within a quarter percent on either side of flat so far today. In the US, as of 7:30 am futures are pointing to a gap higher of between a third (DIA) and one percent (QQQ) at the open. 

The only major economic news for Monday is June Durable Goods Orders (8:30 am).  However, Monday is the slow kickoff of an otherwise heavy week of earnings.  Before the bell Monday, we’ll get reports from AVY, CX, EQT, HAS, RPM, and SAP (SAP announced a spinoff IPO of a division as well).  After the close, AMKR, BRO, CINF, FIX, CR, EHC, FFIV, NOV, NXPI, OMF, PFG, TFII, and UHS report.

Friday gave us indecisive follow-through to Thursday’s ugly candles, but the uptrend has not been broken and we have potential support below.  So, the fight is still on between the bulls and bears in the short-term.  We have a lot of news coming this week, which leaves open the possibility of either a lot of volatility or a flat market too overwhelmed by conflicting news to make a move. 

That said, remember that the market has only paid attention to good news for months now. The point is we may see a pause to get more assurance, but the lean is definitely still in the bulls favor.  So, watch those FAANG stocks as our “canary in the coal mine,” but follow the trend.  Don’t chase or predict reversals, and always take profits as you go.  Remember, consistent singles and doubles win championships, not occasional home runs.

Ed

The Daily Swing Trade Ideas for today: BBY, LULU, AA, FDX, WEN, KO, TGT, TCOM, DNKG. 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 down slightly Thursday on worse than expected Initial Jobless Claims (1.4mil vs. 1.3mil expected).  However, prices bobbed around flat until Noon, when a strong selloff took us to the lows where prices remained the rest of the day.  All 3 major indices put in ugly black candles but did manage to close up off the lows a bit.  So, despite the bad day, the bullish trend was not broken.  On the day SPY lost 1.19%, DIA lost 1.22%, and QQQ lost 2.61% as the mega-cap tech names led markets lower.  The VXX closed up to 30.07 and T2122 fell a bit to 89.47, which is still well into overbought territory.  10-year bond yields fell again as money chased bond safety, closing at 0.577%.  Oil (WTI) was also down, closing at $41.06/barrel.

The GOP continues to haggle over their stimulus proposal.  Late Thursday Senate Majority Leader McConnell said Senate Republicans will release their plan sometime next week.  The Republican plan is expected to be in the $1-1.5 Trillion range and the Democratic plan proposed $3.5 Trillion.  So, we’d expect the final number to be in-between the two extremes.

After the close, INTC beat on the top and bottom lines, but guided down for Q3 and announced yet another delay in their next-generation chips (which is already a couple years behind schedule and had been planned for a release 2021).  INTC now plan for that 7nm chip release to be in late 2022 or even 2023.  (INTC still uses 14nm and competitor AMD has been shipping 7nm chips since 2019.) After-hours, INTC stock was hammered and AMD was up by about the same amount that INTC was down.

In the very suspiciously-timed US-China relations story, the Trump Administration continued to ramp up the “good guy vs. bad guy” theme in yet another scathing speech overnight by Sec. of State Pompeo.  Of course, as promised, China retaliated over the US closing the Chinese Houston Consulate by forcing the closure of the US Chengdu consulate.  Asian and European markets reacted poorly to these escalations, which traders fear could lead to another trade war.

On the COVID story, in the US, the virus numbers show we have 4,170,333 confirmed cases and 147,342 deaths.  The country saw just over 69,100 new cases and 1,150 new virus deaths on Thursday.  DIS also announced it is pushing back the release of several major movie franchises for a year over virus fears.  These include Mulan, Star Wars, and Avatar.  Not coincidentally, AMC theatres also have pushed back their reopening until at least mid-Aug. in light of the current surge in cases nationwide. 

Globally, the number of cases has reached 15,684,371 confirmed cases and 637,222 deaths.  Brazil had its second-highest number of cases Thursday as the outbreak continues in that country.  Cases in that South American country have tripled in the last 30 days.  A little further North, China offered Latin American and Caribbean countries a $1 billion low-interest loan to help them finance the purchase of a Covid-19 vaccine.  In Asia, both India and Japan again reported their highest number of daily infections on Thursday.

Overnight, Asian markets were down on the US-China tensions.  Prices were off significantly across the board, but Shanghai (-3.86%) and Shenzhen (-5.00%) took the hardest hit.  In Europe, a similar case is taking shape.  All the European bourses are down significantly, with the sole exception of Russia, which is just on the green side of flat so far today. In the US, as of 7:30 am futures are pointing to a modest gap lower of about three-tenths of a percent with the exception of the QQQ which is looking at three-quarters of a percent gap down.  

The major economic news for Friday includes July Mfg. PMI and July Services PMI (both at 9:45 am) as well as June New Home Sales (10 am).  Major earnings releases include AXP, BLMN, FMX, HON, NEE, SLB, and VZ all before the open.

Thursday’s ugly candles still managed to maintain the uptrend, but we are right there.  So, it will be important to see whether the bears can get some follow-through or the bulls can bounce us up off trend and back into the green for the week.   Continue to expect volatility as virus news, stimulus rumors, earnings, and the US-China stories are all likely to make headlines today.

As Swing Traders, all we can do is watch the chart and follow the trend.  Remember to keep an eye on those FAANG stocks as our “canary in the coalmine.”  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  In earnings season, be wary of both reactions and re-reactions.  And don’t forget it’s Friday.  So take some profits and be prepared to weather the weekend news cycles.

Ed

The Daily Swing Trade Ideas for today: LABD, XLF, XOP, ITB, XHB, XLE, XLI, XLB, XRT, 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.

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

We saw a gap down in the large caps and a small gap up in the QQQ on Wednesday.  However, most of the day was a rollercoaster until a late-afternoon rally closed markets near their highs.  This gave us a Bull Engulfing candle in the SPY and DIA as well as a Bullish Doji Harami in the QQQ.  On the day SPY gained 0.56%, DIA gained 0.63%, and QQQ gained 0.35%.  VXX was down a tad to 29.16 and the T2122 4-week High/Low Ratio remained deep in over-bought territory at 94.80.  10-year bond yields fell slightly to 0.599% and Oil (WTI) was flat, closing at $41.89.

The GOP continued to haggle over what their own proposal for the next stimulus bill will be, but they appear to be making progress. Among the key areas of disagreement is whether (and how) to extend “enhanced unemployment insurance.” There are GOP camps fighting for $400/week, $200/week, and $100/week as well as some who want to drop it altogether.  Still, the Senate Republicans announced overnight that they have reached a “fundamental agreement” on the basics on their side of the table. (Reportedly a $1 Trillion bill proposal.) So, now negotiations with the Democrats (whose own $3.5 Trillion proposal has been in place since May) can now actually get in gear. (As mentioned yesterday, Congress is not going to want to hang around DC long since most of them want to go home for politicking.)

In the US, the virus numbers show we have 4,101,308 confirmed cases and 146,192 deaths.  The country saw just under 72,000 new cases and a little over 1,200 new virus deaths on Wednesday.  CA also surpassed NY for the dubious honor of becoming the state with the most confirmed cases to date. IN, MN, OH, and Washington DC all joined the group of states ordering a statewide mask mandate in lieu of a Federal mandate.  The head of FEMA also told CNBC that the Federal Government still does not have enough PPE gear and his agency as well as the states are still aggressively trying to buy more.  He said that due to logistics issues and overall short supply, it is possible that virus hot-spots could run out on a temporary basis, but the continue to work on it.

Globally, the number of cases has reached 15,405,069 confirmed cases and 631,015 deaths.  Brazil reported a record of almost 68,000 new cases Wednesday, days after the WHO had said new cases had reached a plateau.  India’s exponential growth curve for new cases continues.  In Tokyo, they also saw a new record-high number of cases today, although the Japanese number is hardly worth mentioning in comparison to Brazil or the US.  South Korea also announced Thursday that it has fallen into a technical recession as of Q2 due to the virus.  Australia had said overnight that the virus had shrunk its GDP by 5%.

Overnight, Asian markets were mixed and showed a move of less than a percent both directions.  China, Japan, and Korea were down while Hong Kong and Australia were up.  In Europe, markets are mixed, but also broadly “modestly green” with just a few stragglers so far today.  In the US, as of 7:30 am futures are pointing to a modest gap higher of about a third of a percent with the exception of the QQQ which is looking at three-quarters of a percent gap higher. 

The only major economic news for Thursday is Weekly Initial Jobless Claims (8:30 am).  However, once again there are a massive number of major earnings reports, including AAL, AB, ADP, ADS, ALK, ALLE, AN, BX, CVE, CTAS, CTXS, DGX, DHR, DOW, FAF, FITB, FCX, GWW, HBAN, HSY, KMB, MTB, MTRN, NUE, ORI, PHM, PNR, POOL, RS, T, TECK, TSCO, TRV, TWTR, UNP, and WSO.  Then after the close ETFC, EW, FE, INTC, RHI, SKX, SWKS, and SIVB report.

Wednesday’s rollercoaster and late-day rally did nothing to break the bullish trend.  We should expect volatility to continue as virus news remains bad (but bulls will see only the rosy scenario) and stimulus negotiations are now beginning.  However, earnings news continued to be generally good as of last night (against extremely reduced expectations) and there will be more of that this in morning’s reports.  US-China relations remain the wild-card since the ball is in China’s court at the moment.  

In this sort of environment, all we can do is watch the short-term chart and follow the trend.  Remember to keep an eye on those FAANG stocks as our “canary in the coalmine.”  Remain focused on your trades and don’t chase, don’t predict, and always take profits as you go.  Also remember that in earnings season, we should be wary of both reactions and re-reactions.

Ed

The Daily Swing Trade Ideas for today: AMD, NVAX, GDOT, WU, ABT, COF, MA, XRT, ALGN, CVX. 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 strongly higher at the open Tuesday on the EU recovery deal, general recovery optimism, and good earnings.  However, the huge tech names sold off immediately, and the rest of the market could not fight that wave, finally following suit in the afternoon.  The QQQ closed down 1.04%, but the large-caps eked out gains as SPY closed up 0.18% and DIA closed up 0.57%.  The VXX was flat at 29.48 and T2122 climbed all the way to the top of overbought territory at 96.49.  10-year bond yields fell slightly to 0.604% and Oil (WTI) climbed 2% to $41.76/barrel.

Republicans met and began cobbling together their proposal for the next stimulus bill, a necessary precursor for the start of negotiations with Democrats (whose plan has been passed and, on the table, since May).  As of Tuesday, the GOP has agreed amongst themselves that businesses need more PPP loans, other grants, and liability protection at a minimum. They also will ask for $105 billion for schools.  However, the Payroll Tax Cut that the President demanded didn’t appear to make the list since it is being opposed by even some Republicans.  Later, House Minority Leader McCarthy told CNBC he does not expect a final deal to be negotiated and passed until August.  Still, Congress will want to adjourn again and get back home to begin their reelection campaigns.  So, early August is probably as late as it will be allowed to go.

The other major storyline overnight is the ratcheting up of trade tensions with China.  This may be a legitimate confrontation about the activity or something that would always be legitimate but is done now for unrelated purposes.  In any event, the US charged (in absentia) 2 Chinese men for hacking and attempted (but unsuccessful) theft of medical data. The US also abruptly forced the closure of the Chinese Consulate located in Houston.  The Chinese have vowed retaliation for both through their state-run media.  Regardless of the true reasons behind these moves or their validity, it does stir up fear of another round of trade war.

In a one-off story snuck out overnight, Citadel Securities announced it has agreed to be was fined by FINRA for front-running client orders in a settlement agreed July 16, but announced in a Tuesday press release.  The fine was a paltry $700,000. However, this case had been dragged out so long that the activity covered dates from way back in 2012-2014.  So, apparently it pays to hire top FINRA and SEC officials as your General Counsel as Citadel had done.

In the US, the virus numbers show we have 4,028,733 confirmed cases and 144,958 deaths.  This includes 67,000 new cases Tuesday.  TX and FL continue to report record-high 7-day average new deaths.  However, at least for the first time in over a week, FL reported under 10,000 new cases with 9,400).  LA Governor Edwards announced Tuesday the state will remain in phase 2 of reopening for at least another 2 weeks (rather than move to phase 3 on Friday as previously scheduled).  On the business side there was good news as BBY announced that sales are returning (up about 2.5% in Q2) and they have brought back about half of the employees furloughed in April. 

Globally, the number of cases has reached 15,120,686 confirmed cases and 620,263 deaths.  Asia is again becoming a hot spot.  For example, India continues to see a surge as they reported over 39,000 new cases on the day in their very underwhelming testing program (given their huge population).  The outbreak in Australia also continues, especially in its two largest states.  Japan also is back near their record-high in cases although the last 2 examples are tiny relative to US numbers, due to the tiny Australian population and Japan’s overwhelming acceptance of mask-wearing.  Closer to home, Mexico surpassed 40,000 deaths as their 7-day average of new cases also sits at an all-time high.

Overnight, Asian markets were in the red with the exception of China and Taiwan, which were mildly green.  These moves came mostly in response to trade fears.  The same is true in Europe, with only Russia above break-even (barely) at this point in their day.  In the US, as of 7:30 am futures are pointing to a modest gap lower of about a quarter percent. 

The major economic news for Wednesday is limited to June Existing Home Sales (10 am) and Crude Oil Inventories (10:30 am).  The major earnings reports on the day include ABB, APH, BIIB, BKR, CP, CSTM, DOV, HCA, IQV, KEY, KNX, LAD, NQAD, NTRS, NVR, RCI, SLGN, and TMO before the open.  Then after the close, CMG, CSX, EFX, KMI, LSTR, LVS, MSFT, MTH, PLXS, RJF, RUSHA, SU, TRN, TSLA, UFPI, and WHR.

Tuesday’s fading of the gap higher did nothing to break trend.  We simply printed a black candle in an uptrend.  The sentiment drivers are likely to be earnings (since we are in silly season), stimulus bill negotiations, and US-China relations.  Remember to watch those FAANG stocks as they proved again yesterday that it’s very hard for the market to buck any move they make as a group.  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  In earnings season, be wary of both reactions and re-reactions.

Ed

The Daily Swing Trade Ideas for today: NBL, CWH, WDC, PENN, OIH, AIG, XOP, WFC, DKNG, X, MRO, SLB. 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 opened flat Monday and after a few minutes of pullback, the bulls stepped in and rallied all day long.  The big tech stocks led the way as TSLA was up 9.47% and AMZN was up 7.93%.  Initial vaccine test news out of the UK also led to optimism.  The DIA was the outlier, printing another indecisive Doji.  However, QQQ and SPY both printed strong Bullish candles coming off last week’s consolidation.  At the close, SPY was up 0.81%, DIA was up 0.03%, and QQQ was up 2.84% (a new all-time high close).  The VXX fell back below 30 to 29.23 and T2122 fell out of overbought territory to 70.18.  10-year bond yields fell slightly to 0.613% and Oil (WTI) was flat, closing at $40.69/barrel.

The EU finally reached a deal on a recovery plan last night.  The $860 billion plan includes 52% of the money distributed as grants to the 27 member countries and the remaining 48% will be given out as loans.  They will fund the plan through EU-backed bonds that will stop being printed in 2026 and will be paid off by 2058.  They also announced that they will need additional taxes to repay those bonds. The new taxes will include a carbon tax and a non-recyclable waste tax.  Quite a contrast to US governance.

Several businesses announced layoffs or buyouts.  Among them are LinkedIn, who will cut 6% of their workforce.  LUV also announced that 17,000 employees had volunteered for early retirement or contract buyouts.

In the US, the virus numbers show we have 3,961,805 confirmed cases and 143,864 deaths.  The good news is that daily new cases fell below 63,000 Monday for the first time in over a week.  The bad news is that deaths ticked up on the day, but still below the 7-day average.  So far, only 28 states have listened to experts and instituted state-wide mask mandates.  However, several others have partial mandates or municipal-level mask orders in place. The rest can’t bear the idea of government mandates, even if they believe wearing a mask is in the public good. (I’m unsure whether the freer states also have looser laws on public nudity or driving without a seatbelt. lol) However, for traders the impactful issue is that in the absence of mandates it becomes retailers and restaurants that must enforce a mask rule and that will continue to generate bad press or at least hurt feelings among some former/potential customers.

Globally, the number of cases has reached 14,881,625 confirmed cases and 613,996 deaths.  In Spain, a new outbreak has occurred in a traditional summer holiday region (including Barcelona).  No new lockdown has been ordered, but the public has been “urged to stay home.”  Meanwhile, the UK reported a 4.5% drop in real wages for Q2.  This was the largest drop since the 1970s oil crisis according to a report from Resolution Foundation in London.  Real Wages or Standard of Living is a measure of disposable income and the drop considers lost wages as well as price inflation.

Overnight, Asian markets were green across the board.  The strongest showing was made in Hong Kong and Australia, but the rally was broad-based.  The same is true in Europe, where the recovery plan deal (after 5 days of heated negotiation) lifted market expectations.  In the US, as of 7:45am futures are pointing to a gap higher of 0.7%-0.9% on Monday evening’s IBM beat and Tuesday Morning’s KO beat. 

There is no major economic news for Tuesday.  The major earnings reports on the day include CIT, CMA, GPK, KO, LMT, MUSA, NVS, PCAR, PLD, PM, SNV, SYF, and UBS all before the open.  Then after the close AGR, AMTD, COF, CNI, CSL, IBKR, ISRG, NAVI, SUM, TER, TXN, UAL, and WRB all report.

Monday’s rally has bulls off and running this week.  However, it is possible we drift until a deal is reached on the next US stimulus (recovery) bill being negotiated this week. Keep an eye on those FAANG stocks that have been the market’s “canary in the coalmine.”  They clearly signaled yesterday’s rally and it would be very hard for the market to fight them if they all go one direction.  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen…plus usually every initial reaction is met with an “on second thought” re-reaction.  So be nimble.

Ed

The Daily Swing Trade Ideas for today: MS, NIO, FVRR, ROKU, PINS, KR, SNAP, ETSY, UBER, MU. 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 gave us the epitome of “the summer blahs” Friday, essentially treading water in an indecisive day of trading.  The SPY and QQQ gave us small gaps higher and the DIA a small gap lower at the open.  The SPY and QQQ then printed Doji candles while the DIA printed a small Bearish Engulfing of a Doji.  At the close, SPY was up 0.29%, DIA down 0.27%, and QQQ up 0.12%.  The VXX fell to 30.62 and T2122 (4-week New High/Low Ratio) fell a bit to 94.00, which is still deep into the over-bought territory. 10-year bond yield rose slightly to 0.623% and Oil (WTI) closed down a tad to $40.57/barrel.

Treasury Sec. Mnuchin told Congress Friday they should forgive all small business PPP loans (regardless how the money was used), though he did acknowledge some measure of fraud prevention would be needed.  He didn’t specify how he defines “small business” and as of his testimony, there were still over $132 billion of PPP funds approved that had not been requested.  Nonetheless, Mnuchin also recommended a second round of PPP loans (companies allowed to take a second loan).  In separate testimony, former Fed Chair Yellen told Congress she is extremely worried that if extended unemployment was not renewed, it could be a catastrophe for the economy.  Sunday White House Chief of Staff Meadows said that real negotiation of the next virus stimulus bill will begin Monday.

After the close Friday, the US Bureau of Labor Statistics reported that Q2 saw the greatest jump in average weekly earnings in the country’s history (a 10% increase in one quarter).  While this seems like good news, experts say it is actually misleading.  They say this was bad news, because it reflects that high salary workers were being retained while a much larger percentage of the hourly workforce and low-level salaried employees were let go.  It’s unclear to me how this is different than any other point in time as the supposed high-value employees are always first hired, last fired while by definition the lower-cost workers are often an after-thought to businesses.  So, I don’t know if I agree with analysts. You decide.

In the US, the virus numbers show we have 3,898,639 confirmed cases and 143,289 deaths.  The 7-day average of new cases is almost 68,000 and the 7-day average of virus deaths is just under 800 as of Sunday.  And while 38 states have 7-day average new cases that increased by at least 10% week-on-week during most of last week, as of Sunday we are down to 32 rising at least that much, with 10 states now neither rising nor falling by at least 10% and 2 states are down more than 10%.  Also, so far at least, hospitalizations have not yet exceeded the April peak.  The only caveat with that good news is that hospitalizations tend to lag infections by 3 weeks and deaths tend to lag another 1-2 weeks. 

Globally, the number of cases has reached 14,668,298 confirmed cases and 609,511 deaths. The UK reported that their economy recovered much less than was expected in May as their easing got underway.  The UK GDP grew 1.8% for the month versus a consensus expectation of 5.5% growth.  In China, supply chain issues (such as filling orders for PPE gear) are being caused by massive flooding across their nation.  The flooding has exacerbated already jammed transportation infrastructure (such as ports) that have yet to recover from the backlogs caused by Feb.-Mar. shutdowns.  In the EU, 3 days of negotiation over a stimulus package details and a 5-year budget have yet to produce a deal. In fact, negotiations are heated with multiple “table pounding” arguments reported. (That makes an interesting dichotomy with the US. The supposedly socialist Europeans are fighting tooth-and-nail over taxing and spending $850 billion (with a population of 450 million people), while the supposedly capitalist US has had no trouble at all spending trillions and trillions of dollars (so far) with 330 million people.)

Overnight, Asian markets were mixed, with China up strongly, India up modestly, Japan and South Korea flat and the rest of the region in the red.  Europe is also mixed, but leans toward the green and is also little-moved so far.  The FTSE is down 0.54%, DAX up 0.31%, and CAC down 0.21% at mid-day. The rest of the continent is mixed, but leaning green.  In the US, as of 7:30am futures are flat, just on either side of break-even. 

There is no major economic news for Monday.  The major earnings reports on the day include CALM, HAL, LII, and MAN before the open as well as CCK, CDNS, IBM, LOGI, STLD, and ZION after the close.

Friday’s candles were indecisive for the third day in a row with neither the bulls nor the bears gaining traction.  Expect more volatility as virus news helps the bears, vaccine hope/speculation helps the bulls, and stimulus negotiations could go either way.  Keep an eye on those FAANG stocks that have been the market’s “canary in the coalmine.”   Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen…plus usually every initial reaction is met with an “on second thought” re-reaction.  So be nimble.

Ed

The Daily Swing Trade Ideas for today: CSCO, HD, GLD, AZN, OSTK, GPN, INTC, SLV, IAG. 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 down Thursday, maybe on virus fears, US-China worries or less than expected reduction in new jobless claims.  After the gap, prices took a rollercoaster ride that ended up not far from where they opened.  This gave us white-body candles that had faded the gap down but also had longer wicks (especially the DIA and QQQ), indicating a lot of indecision.  There was also the beginnings of a rotation out of the massive tech names that have led for months with cyclical and staples names leading for the second straight day.  The SPY closed down 0.31%, DIA down 0.51%, and QQQ down 0.68%.  VXX also fell a bit to 31.72 and the T2122 4-week High/Low Ratio eased just a bit (but stayed deep in the overbought territory) to 94.97.  10-year bond yields also fell to 0.617% and Oil (WTI) pulled back slightly to $40.73/barrel.

After-hours the CDC extended the ban on cruises.  The ban was scheduled to expire July 24 but has now been extended at least through September.  NCLH, RCL, and CCL stock were hammered in post-market trading on the news.

The European Court of Justice canceled a US-EU data-sharing deal Thursday over fears that the US government will snoop on personal data.  This means that either the US changes their data surveillance laws or US businesses will be forced to change their business operations and costs.  For example, both tech giants and 2300 small businesses will now have to prevent all European data from flowing onto servers or networks located in the US.  This would include communications on FB, TWTR, and GOOG.  MSFT announced they would not be affected because they already use EU-written contracts guaranteeing privacy rather than contracts based on the US-EU Privacy Shield agreement which was annulled.

In a follow-on to the US-China relations story, Attorney Gen. Barr accused American tech giants of being pawns for China.  In another example of “everyone’s out to get us,” his list of alleged conspirators against America included GOOG, MSFT, AAPL, CSCO, DIS, all of Hollywood, and the media.  No sanctions or even threats of sanction was announced.  However, the implication was that they have an investigative target on their back for their supposed transgressions.  On another front, the US announced a travel ban for all Chinese Communist Party members and their families.

In the US, the virus numbers show we have 3,696,141 confirmed cases and 141,130 deaths.  This includes 73,000 new cases nationally on the day.  More states also joined the mask mandate bandwagon including AR, CO, and OH (partially). However, GA Governor Kemp decided to go the other way, by voiding all local mask mandates in his state and suing the Mayor of Atlanta for her mask mandate.  At the same time, GA reported almost 3,500 new cases, which was trumped only by CA (4,600), TX (7,500), and FL (almost 14,000) new cases.  Both TX and FL also recorded another record number of virus deaths Thursday. 

Globally, the number of cases has reached 13,979,223 confirmed cases and 593,450 deaths.  Brazil reported over 44,000 new cases and the largest number of deaths in a single day that they have had.  India reported 36,000 new cases, also their largest daily total.  In Europe, Spain reported the highest number of new cases since May 10^th so they have retightened some restrictions.  They are also slaughtering some 100,000 minks after dozens tested positive for Covid-19.  In the UK, PM Johnson announced further easing as well as an additional $4 billion for their NHS in preparation for a second wave of infections.

Overnight, Asian markets were mixed, but mostly modestly green. In Europe, markets are also mixed and not far from break-even on either side.  This is seen as largely due to the EU leaders meeting to negotiate on a stimulus measures, with some leaders saying they think there is less than a 50% chance of agreement on a plan.  In the US, as of 7:30am futures are varied, but on the green side.  The SPY and DIA are looking at modestly higher opens,  However, the QQQ is pointing toward a gap-up of almost 1%.

The major economic news for Friday includes June Building Permits and June Housing Starts (both at 8:30 am) and Michigan Consumer Sentiment (10 am).  The major earnings reports on the day include ALLY, ALV, BLK, CFG, ERIC, HON, KSU, RF, STT, and VFC all before the open.

Thursday’s candles were indecisive if a bit on the red side of flat.  It remains unclear whether the bulls or bears have the momentum coming out of yesterday’s session.  Expect more volatility today and keep watching those FAANG stocks that are a good “canary in the coalmine” for the markets.  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen…plus usually every initial reaction is met with a “on second thought” re-reaction.  Also, don’t forget today is Friday.  So don’t forget to take a paycheck in front of the weekend news cycle.

Ed

The Daily Swing Trade Ideas for today: BUD, VALE, HD, ABBV, KSS, JNJ, NVAX, AMGN, AZN. 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 higher, giddy about a recycled MRNA story after the close the prior night and a big GS beat in pre-market.  However, after the gap, markets soon found resistance and traded in a choppy range the rest of the day.  We ended up with indecisive black-body candles in all the major indices, but also green from the gap-up.  The SPY closed up 0.92%, DAI up 0.87%, and QQQ up 0.20% as the big tech names were mixed at best.  VXX fell to 32.26 and T2122 rose deep into overbought territory at 98.18.  10-year bond yields rose slightly to 0.632% and Oil (WTI) climbed to $40.99/barrel.

After the close and following in the footsteps of UAL, AAL warned 25,000 employees that job cuts are coming.  (Federal law requires them to give 60-days’ notice.)  TWTR also reported a major set of account hacks.  The TWTR accounts of Jeff Bezos, Bill Gates, Elon Musk, AAPL, UBER and many others were used to send scam messages offering to double every bitcoin donation made within 30 minutes.  It is unclear exactly how much money was lost to the scam, but law enforcement sources told Bloomberg that over $100,000 is known lost.

The US-China relationship story remains fairly muddled as China is distracted with major flooding nationwide and the US is sending mixed signals from our side. Sec. of State Pompeo tried his tough-guy routine Wednesday saying that “China will be made to pay a price” (related to the attempt to blame China for the pandemic).  However, President Trump played the dove during the day by deciding not to sanction Chinese officials for now.  This all comes a day after his campaign speech that mentioned signing legislations giving him more power to sanction Chinese officials and also removing Hong Kong’s special trade status.  China has vowed retaliation (tit-for-tat sanctions) for the latter two moves (and the sanctioning of Chinese business leaders) as “US interference in China’s internal Hong Kong affairs.”  Speaking of China, their GDP beat expectations coming in at 3.2% for Q2, but Retail Sales fell again by 1.8% for June. 

In the US, the virus numbers show we have 3,618,739 confirmed cases and 140,172 deaths. Retailers WMT, KSS, TGT, BBY and KR all announced a mask mandate for all shoppers, giving up their wait for a federal rule.  A couple more states joined that chorus as well, including AL and MT.  Overall, the country reported over 66,000 cases again on the day, with FL reporting over 10,000, TX reported over 8,000 and CA over 7,000 new cases on Wednesday.  In a sign of the situation, the state of TX asked FEMA to send 22 additional (3 are already in place) refrigerated morgue trucks to various Texas locations, each capable of holding 20 bodies at a time. The state also opened up a couple of convention centers as temporary virus hospitals.

Globally, the number of cases has reached 13,727,380 confirmed cases and 587,662 deaths.  China announced it will open some cinemas as of July 20 in order to spur retail sales.  India reported the highest daily jump in new cases for the second day in a row. 

Overnight, Asian markets were strongly red across the board (with the exception of India).  China was hit particularly hard as Hong Kong was down 2%, Shanghai was down 4.5%, and Shenzhen down 5%.  There was no specific cause for the Chinese selloff other than US-China relations, massive flooding, and lower than expected Retail Sales.  In Europe, markets are also down, but more modestly red than Asia with a couple minor green break-even exceptions.  In the US, as of 7:30am futures are looking for a gap-down at the open, but are wide-ranging.  DIA futures are down 0.6%, SPY futures down 0.62%, but QQQ futures are down 1.36% as of now.  This all comes as the big banks continue to report blow-out trading profits and unprecedented set-asides for expected bad-loan losses.

The major economic news for Thursday includes June Retail Sales, Initial Jobless Claims, July Philly Fed Employment Index (all at 8:30 am), May Business Inventories (10 am), and a Fed Speaker (Williams at 11 am).  Major earnings reports on the day include ABT, BAC, DHR, DPZ, JNJ, MS, SCHW, SON, TFC, TSM all before the open.  After the close, FNB, JBHT, MRTN, NFLX, PPG and WAL report.

Wednesday’s candles were much more indecisive that the earlier days this week.  It is unclear whether the bulls or bears won yesterday’s battle (at least after the gap-up).  Expect more volatility and keep watching those FAANG stocks that are a good “canary in the coalmine” for the markets.  Focus on short-term charts, but don’t chase, don’t predict, and take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen…plus usually every initial reaction is met with a “on second thought” re-reaction.

Ed

The Daily Swing Trade Ideas for today: OSTK, ROKU, IMMU, ADSK, WPM, AUY, GLD, PYPL, CRM, WDAY, TTOO. 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

On Tuesday, markets saw a small gap down after a JPM earnings beat was offset by increased loan loss provisions.  However, after a negative open, the bulls were in control the rest of the day, closing near the highs.  Interestingly, it was cyclical stocks like CAT, CVX, XOM, and BA that led the way for the day.  DIA put in a Bullish Engulfing candle and the SPY printed a Bullish Piercing candle.  At the end of the day, DIA was up 2.13%, SPY up 1.30%, and QQQ up 0.71%.  VXX fell almost 6% to 33.20 and T2122 rose back closer to overbought territory at 73.33.  10-year bond yields fell to 0.628% and Oil (WTI) climbed back to $40.28/barrel.

After the close, MRNA reported that their potential vaccine produced “robust immune response” (antibodies) in all 45 subjects in their Phase 1 test. This is not a new test, but a clarification of the report on the same small trial that was first reported in May. The only additional news was a firm date of July 27 (had been in terms of “late July”) for the start of a 30,000 patient Phase 3 trial of the vaccine.  MRNA stock was up over 15% in after-hours trading on the report.  Travel stocks including both airlines and cruise lines also spiked after-hours on this news.

In the US, the virus numbers show we have 3,546,278 confirmed cases and 139,162 deaths. TX reported 10,745 new cases Tuesday.  In FL, Miami-Dade County is now reporting a 31% positive result rate on tests.  Meanwhile, the CDC said that if all Americans wore masks, we could have the virus under control in a month or two.  However, that is nowhere near the case in the US.  As a result, the US 7-day average of new cases is well over 62,000/day. 

Globally, the numbers have reached 13,487,894 confirmed cases and 581,978 deaths.  In news that is perhaps tangential to the MRNA report, a study published in the UK reported that a 90-patient study has found that immunity from antibodies only lasts two months before waning.  (That might mean the sale of many more doses of vaccine.)  Further East, India reported over 29,000 new cases yesterday in its biggest 1-day increase.  Closer to home, Mexico announced it is extending the border restrictions with the US until at least August (both countries restricted all non-essential crossings back in late March).  This comes as Mexico has now become the 4th worst-hit country (in the total number of deaths). 

Overnight, Asian markets were mixed, with Chinese indices down on reports of heavy increases in food prices, brought on by virus impacts and massive floods across their country.  In Europe, markets are much more broadly green with hopes for a vaccine lifting spirits.  The FTSE is up 1.78%, DAX up 1.96% and CAC up 2.35% at this point in their day.  In the US, as of 7:30 am futures continue their overnight run on the MRNA news.  DIA is up 1.67%, SPY up 1.34%, and QQQ up 0.96% at the moment.

The major economic news for Wednesday includes June Import / Exports and July NY Fed Empire State Mfg. Index (both at 8:30 am), June Industrial Production (9:15 am), Crude Oil Inventories (10:30 am), and a Fed Speaker (Harker at noon).  Major earnings reports include ASML, BK, EBAY, GS, INFY, OMC, PGR, PNC, UNH, and USB all before the open.  After the close, AA, and SNBR report.

Tuesday’s candles were quite bullish within the recent series of 1-day moves.  However, it looks like vaccine hopes will drive markets early today (rather than the recent pattern).  So, the consolidation may be coming to an end.  The bulls certainly look to be chasing the recovery trade (travel-related for example) overnight.  However, don’t get too giddy.  Keep an eye on those “canary in the coalmine” FAANG stocks.  They’re so big that they will call the tune for markets.  Watch those short-term charts and don’t chase, don’t predict, and take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen.

Ed

The Daily Swing Trade Ideas for today: HD, MCD, GE, FTCH, JNJ, SPCE, KO, AMGN, BUD, ABBV, JPM, XLF. 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 gapped three-quarters of a percent higher and saw a little morning follow-through.  However, the afternoon gave us a sharp selloff that left bearish candles on the day.  QQQ printed a big Bearish Engulfing candle, SPY printed a Dark Cloud Cover, and the DIA printed what could be seen as an Evening Star type candle that failed the 200sma again.  At the close, QQQ was down 2.06%, SPY was down 0.88%, and DIA closed just above flat at +0.08%.  The VXX surged almost 10% to 35.25 and T2122 (4-week New High/Low Ratio) fell back to 43.64.  The 10-year bond yield fell slightly to 0.625% and Oil (WTI) also fell $39.60/barrel.

The main story of the day was the virus impacts across the US as the number of cases grew by 2% on the day.  CA reclosed indoor activities such as restaurants, theatres, bars, and churches as they reported a record number of hospitalizations.  In addition, both Los Angeles and San Diego school systems said they will be not be opening in-person schools in the fall, continuing their distance learning plans from the Spring.

The other story on the day was a deteriorating relationship between the US and China.  During the afternoon, the US formally rejected almost all Chinese claims on the South China Sea.  (This reverses the previous US position of being neutral on Chinese claims in that area.) The Chinese didn’t like that and, in an unrelated story, China barred 2 US Senators in retaliation for the US barring some of their officials.

However, not all the news on the day was bad.  AMZN announced they are forcing 3^rd-party sellers to reduce their inventories in AMZN warehouses as the company is now starting to ramp-up their own inventories (2 months earlier than normal) as they expect huge sales this coming holiday season.  OPEC also announced they are beginning to roll back some production cuts (expanding capacity) as they believe demand has stabilized. In addition, Senate Majority Leader McConnell said that Republicans will pitch their own stimulus plan next week.  And last, but not least on the good news front, PFE and BNTX stocks also soared Monday as their vaccine 2 candidates were granted FDA “fast track” status.

In the US, the virus numbers show we have 3,479,650 confirmed cases and 138,247 deaths. This includes over 65,000 new cases Monday as 20 states saw record highs in their 7-day average of new cases and 40 states saw a rise in new cases for the day.  Miami’s Mayor reported that the hospitals in the city are at 91%-92% of ICU capacity.

Globally, the number of cases has reached 13,265,782 confirmed cases and 576,249 deaths.  In the UK, the government reversed direction and announced masks will be mandatory in shops starting July 24. Singapore reported they have slipped into recession as the major shipping and commerce city-state saw a 41% drop in GDP.  In the Philippines, Manila will return to lock-down as of Thursday.

Overnight, Chinese trade data for June beat expectations (expanding when a contraction was forecast).  However, Asian markets were still red across the board with the minor exceptions of Indonesia and New Zealand.  In Europe, markets are also red across the board as the virus running out of control outweighs recovery hopes.  At this point the big 3 bourses are down between just -0.38% (FTSE) and -1.6% (CAC).  In the US, as of 7:30am futures are pointing higher, reversing after JPM reported stronger than expected earnings.

The only major economic news for Tuesday is the June Consumer Price Index (8:30 am).  However, there are also two Fed speakers (Brainard at 2 pm and Bullard ar 2:30 pm).  However, earnings season kicks off again as C, DAL, FAST, FRC, JPM, WFC, and WIT all report before the open.

Monday’s candles were ugly again, with the QQQ being the worst of the lot.  However, as we have been saying, that index has been on such a tear it was far overextended and needed some profit-taking.  So, the pullback may not be more of a blip than a change in trend.  The bulls certainly look like they want to run today with good earnings news this morning.  Still, it’s early and virus news will continue to weigh. So, keep an eye on those “canary in the coalmine” FAANG stocks.  They are so big that they will call the tune for markets.  Watch those short-term charts and don’t chase, don’t predict, and take profits as you go.  Remember we are in earnings season now, so some surprises are likely to happen.

Ed

The Daily Swing Trade Ideas for today: CNVA, BYND, TSLA, SBUX, XLK, NKE, DG, FCX, JPM, 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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