Bear Signals and Virus Fear

Markets took some profits on Friday as the US followed the pattern of Asia and Europe for the day.  The QQQ and SPY ended the day as Doji candles after some volatility, but the DIA printed a large-body black candle to print an Evening Star signal.  The SPY was down 0.53%, the DOA down 0.87%, and the QQQ down 0.43%.  As a result, the VXX climbed slightly to 14.38 while the T2122 fell again to 33.94 (still not oversold).

The big story on the day seemed to be a complete reversal by the Fed from what was told to the financial press just two days earlier.  On Friday, the Fed reported to Congress that the coronavirus presents a new risk to the US economic outlook and they warned of disruptions to global markets.  Specifically, the Fed reported, “Because of the size of the Chinese economy, significant distress in China could spill over to U.S. and global markets through a retrenchment of risk appetite, U.S. dollar appreciation, and declines in trade and commodity prices.” 

On Tuesday and Wednesday, both Fed speakers and the President’s Chief Economic Advisor Larry Kudlow had said the virus would not have a significant impact on the US economy.  This reversal may help explain the profit-taking on Friday.

Over the weekend, the virus has continued to spread and has surpassed the SARS outbreak of 2003 in terms of impact.  The number of confirmed cases has now reached over 40,000 and deaths now exceed 900.  One of those deaths was in the US.  In terms of impacts, there is serious scrambling going on throughout the Auto and Electronics industries as the vast majority of those supply chains run through China.  In other words, you can’t make a car in Detroit, Berlin, Japan or Mexico if the parts have not arrived from China.

Overnight, Asian markets were in the red.  Europe is mixed at this point, but most of the major bourses are red…the FTSE being the striking exception.  As of 7:45 am, U.S. futures are flat, sitting on either side of the break-even line.

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There is no major economic news for Monday.  However, there are a couple of Fed speakers during the day.  Earnings are also light for the day, but AGN, QSR, L, DO, IVC, and AVYA report before the Open.  After Monday’s close, CHGG, MELI, RNG, XPO, APPS, ELY, MESA, MOH, IIVI, JCOM, RE, RPD, VRNS, DVA, BLKB, VOYA, FLDM, FRT, ICMB, and PYX all report.

Markets took some profits Friday, but the bulls have been resilient and relentless for a long time now.  The trend remains clearly bullish, but we are still a bit extended and there is no new impetus with light earnings and no planned economic news Monday.  Perhaps the rumors of President Trump’s election-year budget (apparently going to expand tax cuts) will be the driver today. 

Again, the bias is on the long side, but the candle patterns are on the bearish side. I think we need to remain cautious.  At the very least take a look at bearish setups or hedges. I know I sound like a broken record on the topic, but nobody ever went broke taking profits and reducing risk.  Plan the trade, make the trade come to you and then trade the plan.

Ed

Swing Trade Ideas for your consideration and watchlist: PLCE, FTK, SLCA, SLM, KSU,DKS, CROX, KLAC, SWKS, QRVO, ZM. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Profit-Taking Friday?

The bulls continue their surge Thursday.  The SPY and DIA both gapped higher and then just vacillated the rest of the day, closing very near the open.  The QQQ gapped higher, but found some follow-through as TSLA rebounded after Wednesday’s profit-taking.  The SPY ended 0.34% higher, the DIA 0.30% higher, and the QQQ 0.86% higher.  All three were new all-time high closes.  The VXX fell slightly to 14.09 and the T2122 fell back to 67.15 (out of the overbought region).

We received generally good economic data (Weekly Jobless Claims were below estimates again and Unit Labor Costs were in-line, while Q4 Nonfarm Productivity was below expectation) on the day.  Added to this was generally good earnings.  Together these factors seemed to override any coronavirus fears for the bulls. 

On the coronavirus front, the number of patients continues to grow.  The tally now sits over 31,000 confirmed cases and 636 deaths.  In terms of impacts, it was announced that airlines around the world have now canceled 50,000 flights to or from China (including Hong Kong).  However, an independent economic data provider about China, called China Beige Book (not to be confused with the periodic US Beige Book Report produced by the Fed) forecasts that while there will be a GDP drag on China, the long-term outlook remains stable.

After hours Thursday, EBAY was taking a beating after ICE said they have decided to stop exploring a buyout of the auction website.  MYAD was down a whopping 30% after missing on both the top and bottom lines.  However, UBER also spiked on a smaller than expected loss and PINS soared 17% after beating estimates. 

Overnight, Asian markets were mixed, but generally in the red.  For a change of pace, China was the lone green spot in that region. However, Europe is showing red across the board at this point in their day.  As of 7:45 am, U.S. futures are all pointing toward a gap lower of a modest one-third of one percent.

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Friday’s major economic news includes Jan. Avg. Hourly Earnings, Jan. Nonfarm Payrolls, and Jan. Unemployment Rate (all at 8:30 am).  While earnings are light on Friday, we will hear from ABBV, CBOE, and FE.

The bulls have been relentless all week.  However, globally, Friday seems like a profit-taking day.  Maybe the rest of the world wants to lock in gain before the long weekend news cycle just as we suggest.  The trend remains clearly bullish, but we are a bit extended and there is that weekend headline risk to consider. 

So, again I think we need to remain nimble, hedged or cautious.  Don’t let profitable positions go South on you when you aren’t looking.  I know I sound like a broken record on the topic, but nobody ever went broke taking profits and reducing risk.  Plan the trade, make the trade come to you and then trade the plan.

Ed

No Swing Trade Ideas for your consideration and watchlist on Friday If you have tickers you want to discuss, be sure to come to the trading room at 9:10am Eastern and we'll give them a look. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Those Bulls Keep Running

Once again, the bulls ran wild on Wednesday.  Markets gapped up by almost a percent and then proceeded to run higher in the SPY and DIA.  The QQQ also gapped higher, but then faded the gap, mostly due to a sharp pullback by TSLA after its parabolic move Monday and Tuesday.  The SPY closed up 1.15%, the DIA up 1.67% and the QQQ also closed up 0.33%.  This made for new all-time high closes in the SPY and QQQ again.  It is worth noting that the major indices (including the VXX) are a bit extended from their moving averages.  In addition, the T2122 closed at 88.05 which is in overbought territory.

As usual, the coronavirus story continues to be the top story.  Confirmed cases are now over 28,000 and deaths have hit 563.  In related news, YUM China has closed 30% of its stores due to the outbreak.  TSLA also closed it dealerships in China and announced the delay in delivery of the vehicles that have already been sold there.  In addition, Japan has quarantined a CCL cruise ship for two weeks after 20 passengers have tested positive.

In a potentially related story, China announced that it will cut in half the retaliatory tariffs placed on US goods (in response to the US tariffs).  In some cases that means going from 10% to 5% and in others from 5% to 2.5%.  Analysts seem mixed on what to make of the move.  Some feel this is a sign of improving relations and more proof that President Trump’s trade war worked.  Others suspect this is a goodwill gesture in front of China not meeting the import quotas announced as part of Phase One of that deal.  In either case, markets are taking it as good news.

After hours Wednesday, markets saw a number of earnings beats.  Among these were CINF, CTSH, FMC, FOX, FOXA, MET, and QCOM.  On the other side, AVB, LNC, and ORLY all posted misses.

Overnight, Asian markets continue to rebound with green across the board again.  The same is true in most of Europe, with green everywhere except Russia and Athens at this point.  As of 7:30 am, U.S. futures are also pointing to another gap higher, this time by about four-tenths of a percent. 

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Thursday’s major economic news is limited to Weekly Jobless Claims and Q4 Nonfarm Productivity (both at 8:30 am).  However, there are a couple FOMC speakers during the day.  On the earnings front, among those reporting before the open are: ABMD, BLL, BMY, CAH, CI, EL, HBI, ICE, K, MAC, PM, REGN, SPGI, SNA, TPR, TWTR, TSN, VMC, WLTW, XYL, and YUM.

The bulls have been relentless this week and pre-markets are telling us to expect more of the same.  However, pay attention to what happened in TSLA on Wednesday.  The take-off of a jet plane is awesome.  However, if the jet runs out of fuel, it falls out of the sky like a rock and that too can throw you back in your seat.  Both long-term and short-term trends are clearly bullish.  However, I think we need to remain nimble, hedged or cautious here.  

Remember, nobody ever went broke taking profits and reducing risk.  We talked about this in the room yesterday afternoon where people were hesitant to take 30%, 50%, or even 100% profits off the table.  Yes you may be able to squeeze more out of a trade, but you can also give back those impressive gains in a heartbeat.

Ed

Sorry Rick is out sick today. So no Swing Trade Ideas for your consideration and watchlist now. I will pull together a list by 9:10am Eastern and present them in the room. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

More Charging Bulls

On Tuesday, the bulls gapped markets strongly higher (about 1.25% gap) and got some follow-through until noon.  Then we saw three hours of sideways grind followed by a selloff the last 30 minutes.  The tech giants which had suffered so much fear related to coronavirus impact seemed to lead the way.  In addition, TSLA was notable for following up their almost 20% gain Monday with almost another 14% gain Tuesday.  As a result, the QQQ closed 2.29% higher (a new all-time high close), the SPY gained 1.52%, and the DIA ended the day up 1.43%.  As you’d expect, the VXX was down hard to 14.83 and the T2122 returned to mid-range at 61.30.  This latter fact would seem to indicate we are still not over-bought.

The coronavirus story continues even while it remains unclear how much global impact will result. Confirmed cases are now up to 25,000 and deaths have risen close to 500.  The Chinese Health Minister told reporters that the virus has already mutated into a stronger and more communicable variant.  There have also now been babies born with the virus when the mother was infected. However, Fed speakers seem to indicate this entire outbreak will not have a significant impact on the US fiscal outlook.  In addition, Larry Kudlow told CNBC coronavirus is not a disaster for the US economy. On top of this, world markets have risen the last two days in hopes of a cure and vaccine.

Nonetheless, in after-hours reports, NKE warned that the virus will have a significant financial impact on their business, especially in their China operations and market (their primary product source and largest growth market).  Foxconn (a key AAPL supplier) also cut its outlook for the year.  The Chinese government has announced lower tax rates and eliminated fees to banks offering low-rate business loans and to at least some businesses involved in fighting off coronavirus impacts.

In the US Tuesday night, M also said they will close 125 stores and cut 2000 corporate jobs.  In addition, F reported a $1.7 billion loss and GILD reported a miss for the quarter.  On the other side, Disney beat (on 28.8 million DIS+ subscribers, but they did not update their streaming service guidance). Other beats included CB and CMG among others. 

Overnight, Asian markets continue to rebound with green across the board again.  The same is true in Europe, with strong gains in all the major bourses.  As of 7:30 am, U.S. futures are also pointing to another gap higher of between eight-tenths and one percent. 

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The bulls look to be continuing their charge this morning. Just bear in mind, the second-largest economy in the world seems to be in trouble from the virus and much of Asia is already feeling economic impacts. It seems logical that there would be some sort of impact on the US as well, but leaders say no. So, be careful chasing as it sure feels like more shoes will drop.

As I have relentlessly preached, a trader's job is to consistently take profits and reduce risk (manage trades). So, don't chase or give in to Fear of Missing Out. Make the trade to come to you...plan your trade and trade your plan. Or as Rick puts it: See it, Plan it, Trade it.

Ed

Swing Trade Ideas for your consideration and watchlist: BX, OKTA, VRTX, GE, TEAM, LLY, INTC, INFO, BLK. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Bulls Looking to Charge Again?

The bulls gave us a little rebound Monday, coming off the worst week in 6 months.  After a small gap higher, the bulls pushed but were driven back in the large-caps leaving large upper wicks.  The SPY gained 0.74%, the DIA gained 0.55%, and the QQQ was strongest up 1.51%.  This caused the VXX to fall to 15.68.

Coronavirus continues to lead the news.  Among related stories, in the afternoon CCL reported that one of its passengers had tested positive for the virus 6 days after leaving one of their cruise ships.  Oil also fell to the lowest price in more than a year on fear of the virus’ impact on demand. As of this morning, the count has risen to 21,000 confirmed cases and 425 confirmed deaths. However, US markets now seem to expect this outbreak will end up having little impact on the US and global economies.

After the close, Alphabet reported earnings, beating expectations on earnings by 20%, but apparently disappointing on ad revenue.  As a result, both GOOG and GOOGL were down 4.5% in after-hours trading.  The other Monday night story was the Iowa Caucuses and their debacle of not releasing results.  Pete Buttigieg (widely seen as a moderate) claimed victory, but the Democratic Party announced nothing after finding inconsistencies in the data from the App they used to roll up precinct results.  A hand recount of the tallies will be done today.

Overnight, Asian markets rebounded after their beating yesterday and there was green across the board Tuesday.  The same is true in Europe, with strong gains being made in all the major bourses at this point.  As of 7:30 am, U.S. futures are also pointing to a large gap higher.

Tuesday’s major economic news is limited to Dec. Factory Orders (10 am).  Of course, although not economic or even usually news, the President Trump will deliver the State of the Union speech tonight. However, again there are many earnings reports.  Reporting before the bell are CNC, CLX, COP, CMI, ETN, EMR, IT, J, MCK, RL, RCL, SPG, SIRI, TDG, WAT, and ZBH.

$50.00 discount with code: Privilege

The bulls seem to be making another push this morning. However, the primary economic story (coronavirus impact) has not changed and I'm not aware of any unexpectedly good earnings stories that changes the outlook.  So, be careful trading in either direction. Remember what happened to Monday's candle after the gap and morning run.

Keep in mind that our job as traders is to consistently take profits and cut risk. Don't chase or act on emotion. Make the trade to come to you...plan your trade and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: OPGN, EZPW, PLAN, NFLX, LULU, IR, ALLE, SVRA. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Coronavirus Is Still The Lead Story

Coronavirus really put it on the markets Friday.  A brutal all-day selloff was only slowed by bulls rallying the last 15min of the day in a futile effort to make January end as a net gain.  Unfortunately, markets still closed lower for the month.  On the day the SPY lost 1.81%, the DIA lost 2.12%, and even the QQQ (buoyed by a massive AMZN earnings beat) lost 1.59%.  In the process, the SPY held support, but the DIA gave up the 50sma and a potential support level.  Obviously, the VXX spiked to a still-low 16.27

Over the weekend, the death toll from the virus topped 360, with well over 17,000 confirmed cases in China alone.  In response, China has extended the Lunar New Year shutdown (holiday) across at least 24 provinces (which account for 80% of the Chinese GDP) until at least Feb. 10 (some until Feb. 14).  They also said the holiday may be extended again if deemed appropriate. 

In potentially good news, Thailand reported good results using a mixture of two antiviral drugs.  The success saw a significant improvement in the condition within 48hr after treatment.  However, this success was on a single patient.  So, it is way too early to claim a solid treatment has been found.  Still, this is promising news.

For now, China has announced a range of measures to help businesses hit hard by the virus.  In addition, the People’s Bank of China said the equivalent of a $173 billion (including $21 billion today alone) extra liquidity will be injected into their markets using the same repo mechanism the Fed uses to pump money into US Markets.  This was intended as an emergency backstop as the Chinese stock market reopened for the first time since January 23.  Nonetheless, Chinese markets still gapped down almost 9% at its open.  (Bear in mind that in addition to virus fears, Chinese markets have been closed for 10 days and have not had a chance to adjust.  So, gap moves on the first day back from the Lunar New Year holiday are typical…just not this severe.)

Overnight, Asian markets took the weekend virus news hard with red across the board.  The only possible bright spot is that Hong Kong got back to the green side of flat.  However, China’s first day back to trading ended down 8%.  In Europe, markets are mixed, but mostly green at this point.  As of 7:45 am, U.S. futures are pointing to a half percent gap higher after Friday’s beating. 

Monday’s major economic news is limited to Jan. Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  And while earnings do resume this week, today is a light day.  Among the major names reporting before the bell are AMG, CHKP, and SYY.  After the close ARE, GOOG, GOOGL, HIG, LEG, and NXPI all report.

$50.00 discount with code: Privilege

The bulls seem to be trying to find support this morning.  However, the bears have the momentum and nothing has changed for the better on the coronavirus story.  Be careful trading either direction as it’s likely to be a volatile day.

Keep in mind that nobody ever went broke taking profits (small or not) and reducing risk. Above all, wait for the trade to come to you...plan your trade and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: VXX, SDOW, TZA, KKR, LABD, GDOT, SHAK, GWRE, CTXS, PRGO. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Earnings vs. Coronavirus

Markets gapped lower Thursday as coronavirus fear resumed.  However, the bulls were having none of that as they rallied most of the day with the close coming near the highs.  For example, the Dow erased a 244 gap down to end the day 124 points higher.  The SPY gained 0.32%, the DIA gained 0.44%, and the QQQ gained 0.36%.  The VXX fell to 14.60 while the T2122 remains in mid-range at 39.69.

During the day, the World Health Organization reversed its decision from last week and declared coronavirus a global health emergency.  Oddly, at the same time, they did not recommend travel to China to be restricted.  In other coronavirus news, the Centers for Disease Control confirmed the first person to person transmission inside the US. Globally the death count continues to rise and the confirmed cases is now about 10,000.

After the close, AMZN absolutely crushed their earnings report.  Prices soared in after-hours trading on that report that was 60% higher than expected.  It remains to be seen whether this will “lift all boats” on Friday.  Again, other earnings reports were too numerous to mention. 

Overnight, Asian markets were mixed, with only the NIKKEI green as virus fear grows.  In Europe, markets are red across the board at this point in the day.  As of 7:45 am, U.S. futures are mixed with the SPY and DIA pointed to gap down, while the QQQ (bolstered by AMZN) pointing to a half percent gap higher. 

Friday’s major economic news includes Dec. Personal Consumption-Expenditures (8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  The earnings list is somewhat smaller since it is Friday.  Among those reporting before the bell are AON, BR, CAT, CHTR, CL, CVX, CHD, XOM, HON, IDXX, ITW, JCI, LYB, PSX, and WY.

In impeachment news, the vote on whether or not to call witnesses is scheduled for Friday afternoon.  It appears the White House now has the votes to block witnesses.  If so, Senate Majority Leader McConnell is expected to call the votes to acquit (as has always been expected) as soon as Friday evening.  Speculation is that this might move markets even just on the expectation of an acquittal.  However, the way markets react to news, especially in advance, is never a sure thing.  So, as with other news, be careful betting on such an outcome.

$50.00 discount with code: Privilege

As mentioned, the bulls closed markets higher, but this also happened to be near resistance.  The US futures are mixed at this point and there are a number of major earnings reports this morning.  In addition to this, we have a weekend full of virus news coming.  So be careful relying on whatever happens today to be an indicator beyond today’s close.

Be cautious when considering any new positions.  And remember, nobody ever went broke taking profits and reducing risk. Above all, wait for the trade to come to you...plan your trade and trade your plan.

Ed

No Swing Trade Ideas for your consideration and watchlist for Friday. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Bears Finding Strength?

Stocks gapped higher Wednesday, as markets looked to good earnings and tried to ignore coronavirus for a second straight day.  However, this gap woke up the bears and the rest of the day was a selloff back down to Tuesday’s closing levels.  The DIA ended the day dead flat, the SPY closed down 0.09%, and the QQQ gained 0.16% (after coming back after a morning swoon).  The VXX gained slightly to 14.85 and the T2122 fell back to 33.90, so it remains in the mid-range.

AAPL helped markets after their Tuesday evening beats resulted in them printing another all-time high on Wednesday.  Oddly, BA rallied 2% on the day even though it reported its first loss in decades before the open.  Other earnings reports were too numerous to mention. 

Another story during the day was the Fed leaving rates unchanged and saying it plans to continue adding liquidity via REPO operations through at least April.  Chairman Powell also stressed the need to reach a 2% inflation target, meaning the Fed will be slow to raise rates in the foreseeable future.

Despite the earnings and Fed news, the coronavirus story remains at the top of mind.  The death toll has now topped 170 with 7,700 confirmed cases globally. (There are also tens of thousands of potential cases/patients being tracked.)  Business shutdowns, flight cancellations, city quarantines and major companies telling employees to work from home (for example Google and Microsoft) continue to pile up, especially focused on China.

Thursday’s major economic news is limited to Final Q4 GDP and Weekly Jobless Claims (both at 8:30 am).  However, once again there will be way too many earnings reports to list the tickers all here.

Overnight, Asian markets were heavily in the red as virus fear grow and traders returned from their holiday.  In Europe, markets are also red across the board at this point in their day.  As of 7:45 am, U.S. futures are pointing to a gap lower of three-quarters of a percent.

$50.00 discount with code: Privilege

Wednesday’s close near the lows implies that we will see a lower-low Thursday.  The US futures seem to be confirming this signal.  So, virus fear may be coming back into the forefront.   However, a large number of earnings have the power to jerk us around. 

Be cautious when considering any new positions.  Look for opportunities, but hedge your risks, keep taking profits and move your stops to protect yourself. Above all, wait for the trade to come to you...plan your trade and trade your plan. Remember, it's the consistent base hits, not the occasional home run, that wins the pennant.

Ed

Swing Trade Ideas for your consideration and watchlist today: ERI, MU, STX, CVS, LULU, MUSA, AGN, KLAC. Trade smart, take profits along the way and trade your plan. 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

|607% in just 24 months |

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 PlansPrivate 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

Earnings Overshadowing Virus Story

Coronavirus remains the lead, but bulls around the world decided two consecutive days of fear was enough.  Likewise, the US major indices gapped higher and found a little follow-through on Tuesday.  The SPY closed up 1.05%, the DIA up 0.68%, and the QQQ up 1.54%.  None of these were new all-time highs, but the relief was palpable.  All 10 major sectors were up on the day and the VXX fell to 14.83.

Despite the market action on the day, the coronavirus remained the lead story overall. During the day there were many reports of new government travel advisories, airline flight cancellations and companies closing Chinese operations and/or evacuating staff.  In addition, there have now been confirmed human-to-human transmissions outside of China.  Meanwhile, the US has “fast tracked” a vaccine, but it will be at least three months before the early-stage clinical trials can even begin.

In other news, the defense completed their presentation in the Impeachment trial of President Trump and the Senate Majority Leader said he did not have the votes to block witnesses at this point. However, he has two more days to wrangle enough votes while Senators ask their questions. We should find out Friday whether the trial will continue.

On the earnings front, the most noteworthy was the AAPL report after the close.  It posted large beats on both top and bottom lines.  However, it did not skyrocket in after-hours reaction. Meanwhile, SBUX (which also beat expectations), became the first company to warn that the coronavirus may materially impact their fiscal 2020 results. So far this morning, BA reported a loss on the 737 Max debacle while MCD and GE posted beats.

Overnight, Asian markets are mixed, but mostly red.  In Europe, markets are green across the board at this point in the day.  As of 7:45 am, U.S. futures to a half percent gap higher on earnings news.

Wednesday’s major economic news is limited to the Dec. Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), the FOMC Rate Decision (2 pm), and the FOMC Press Conference (2:30 pm).  There are too many major earnings, both before the open and after the close, to list here.  Needless to say, it will be a heavy earnings day.

$50.00 discount with code: Privilege

As mentioned yesterday, it’s going to be a long time before the coronavirus story is over.  However, in the grander scheme, and as SBUX proved last night, it’s really just an excuse for markets.  We have been rallying for months without breaking trend or even closing below the T-line until last Friday.  In short, the bears were long past due a little time in the sun.

Tuesday may just have been Mr. Market reminding the bears not to get too cocky about their new momentum.  It could also be that the bulls had just needed rest and earnings has now given them the new energy to take back control.  Since we don’t know which it was, use some caution before getting too far into either camp.

Look for opportunities, but hedge your risks, keep taking profits and move your stops to protect yourself. As always, above all, wait for the trade to come to you...plan your trade and trade your plan. Remember, it's the consistent base hits, not the occasional home run, that wins the pennant.

Ed

Swing Trade Ideas for your consideration and watchlist today: SHOP, PLAN, GE, CIEN, YNDX, CDAY, PLNT, VG, UTHR, NWL. Trade smart, take profits along the way and trade your plan. Also, don't forget to check for upcoming earnings. 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

|607% in just 24 months |

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 PlansPrivate 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 Calming For The Moment?

Coronavirus racked up another win Monday, taking down US markets just as they had Asian and European markets before the US opening bell.  After the gap-down of over 1.5%, the rest of the day was a grind as the bulls tried to fade the gap and the bears said not so fast.  At the end of the day, we were left with indecisive candles with large upper wicks with the SPY down 1.60%, the DIA down 1.57%, and the QQQ down 2.07%.  The VXX gapped higher and after volatility ended near the highs, up 10.39% to a still low 15.72.  However, the T2122 has now fallen well into oversold territory at 8.26.

The economic impacts of coronavirus led the news all day Monday.  It is now reported that many US companies are suspending retail as well as production operations as a result of the threat.  (Bear in mind that the production part of this is not yet a real impact as pretty much all operations in China are normally shut down for many weeks at this time of year.)  Other news included reports that over 100 deaths and 4500 diagnosed cases have been reported worldwide.  In the US, the CDC has confirmed at least five cases, while 110 patients across 26 states are being monitored as possible cases.

In other news, Huawei has been officially allowed to be part of the UK’s 5G infrastructure, defying US pressure to exclude the company on security grounds.  BA was able to secure $12 billion in financing to get it through the 737 Max crisis.  Finally, President Trump’s impeachment defense will rest today. The rumors are that the Sunday bombshell about John Bolton may have changed the math in favor of the demand for witnesses. If true, this would very likely drag the trial on past the date of State of the Union speech.

Tuesday’s major economic news is limited to the Dec. Durable Goods Orders (8:30 am) and Conf. Board Consumer Confidence (10 am).  Major earnings on the day include MMM, AOS, HCA, HOG, LMT MKC, NUE, PCAR, PNR, PFE, PHM, UTX, and XRX before the open.  After Tuesday’s close the market hears from ALK, MXIM, SBUX, EBAY, AMD, AAPL, BXP, CHRW, EQR, PFG, SYK, XLNX.

Overnight, Asian markets are mostly closed (Lunar New Year), but the NIKKEI was green as it shook off virus fear.  In Europe, markets are also green across the board at this point, as fear seems to have subsided for now.  As of 7:30 am, U.S. futures are pointing to a significant gap higher of between half and eight-tenths of a percent.

$50.00 discount with code: Privilege

It looks like market fears may be calming a bit after a rough couple days. However, nothing has improved on the coronavirus front and that story is very likely to get worst before it gets better. So, be careful and don't assume the market has moved on from the story once and for all. Still, the bulls have remained very resilient for months. 

Regardless of what happens, all we can do is stick with the trends.  In this case, that may well mean stepping aside, hedging more or getting small until markets settle. If you do look for trades, hedge your risks, keep taking profits and move your stops to protect yourself. Above all, wait for any new trade to come to you...plan your trade and trade your plan.  

Ed

Sorry, but no Swing Trade Ideas for your consideration and watchlist today. Trade smart, take profits along the way and trade your plan. Also, don't forget to check for upcoming earnings. 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

|607% in just 24 months |

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 PlansPrivate 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

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