Monday was a “fade the gap” kind of day with a modest gap higher at the open met with all-day selling, closing near the lows.  The SPY printed a Bearish Engulfing candle and the DIA printed a Bear Engulfing of a Doji.  However, all 3 major indices stayed in their recent consolidation ranges.  On the day, the SPY lost 0.20%, the DIA lost 0.32%, and QQQ gained 0.01% after having gapped up a bit more than the large-cap indices.  The VXX gained almost 4% t o31.34 and T2122 remains in the mid-range at 52.07.  10-year bond yields fell to 1.174% and Oil (WTI) dropped 3.45% to $71.40/barrel.

During the day there was a bit of news on the virus front.  The 7-day average of new cases in the US has reached almost 73,000 again (surpassing last summer’s peak). While hospital space is an issue in some areas (for example, only 7 available ICU beds for 3 million people in Austin TX and the state of LA report they’ve reached the highest level of hospitalization since the start of the pandemic), fortunately, death rates have not spiked with cases (7-day average is at 317/day).  The White House announced the country had reached the goal of 70% of adults being at least partially vaccinated, albeit about a month later than the goal. 

After the close, Fed (voting) member Waller told CNBC that he could see the possibility of a reduction in bond-buying activity starting as soon as October.  However, he would need to see strong jobs reports in August and September before he agreed to any such tightening.  As with other members of the FOMC, he said that the data the Fed is seeing continues to indicate that inflation is transitory, but that there is some evidence this might not be the case.

It has started off as another good day on the earnings front.  However, it is notable that there are more misses today than any day so far this earnings season.  Chief among those misses were LLY (came in short on the bottom line) and CLX (missed on both lines and guided lower as it says the pandemic surge has passed.  However, there are still plenty of beats, including COP and PSX in the oil space, UAA and RL in clothing, and DISCA in finance. In non-earnings news, PEP announced it will sell its juice brands, including Tropicana to a French private equity firm for $3.3 billion.

Overnight, Asian markets were mixed on modest moves.  Japan (-0.50%), Shanghai (-0.47%), and Shenzhen (-0.41%) paced the losses.  Meanwhile, India (+1.55%), Thailand (+1.01%), and Indonesia (+0.56%) led the gainers.  However, in Europe, markets are green across this board so far today.  The FTSE (+0.30%) and DAX (+0.20%) are typical of the continent, with the CAC (+0.98%) being an outlier to the upside.  As of 7:30 am, US Futures are pointing to a mixed, but modestly green open.  The DIA is implying a +0.46% open, the SPY implying a +0.34% open, and the QQQ implying a +0.09% open.  10-year bond prices are also up and the dollar down in early trading Tuesday.

The major economic news scheduled for release on Tuesday is limited to June Factory Orders (10 am) and a Fed speaker (Bowman at 2 pm).  The major earnings reports scheduled for the day include BABA, ATI, AME, ARNC, BHC, BCC, BP, BHG, CWH, CLX, COP, CRSR, DISCA, DD, DNB, ETN, SATS, LLY, EXPD, FNMA, FIS, FCNCA, BEN, IT, HSC, HSIC, INCY, INGR, IGT, J, KKR, LHX, LCII, LGIH, LDI, LPX, MAR, NVT, OMI, PSX, PBI, PEG, RL, SEE, SUN, BLD, UAA, VNTR, WMG, WAT, WEC, WLK, WLTW, XYL, ZBRA, and ZBH before the open.  Then after the close, ATVI, AKAM, AFG, AMGN, ANDE, AIZ, CAR, CZR, CNR, CW, DK, DVN, ET, ENLC, NVST, FMC, FNF, FRG, HLF, HST, H, JAZZ, KAR, LYV, LYFT, MCY, OI, OXY, OKE, PAA, PRIM, PRU, PSA, RGA, TX, UNM, and XP report.

Jitters over the resurgence of Covid at the same time the economy may have already reached peak recovery mode and stimulus is fading has markets concerned. However, it would be quite a stretch to say we are seeing any panic. Markets seem to want to open Tuesday inside of yesterday’s candle…just in the consolidation area. So, again the trend remains bullish and all 3 major indices remain very near their all-time highs. This is letting the moving averages catch up and is a healthy thing for a trend.

Don’t get caught trying to predict the market. Nobody ever made a consistent living calling the top (or bottom). Remember, trading success is about winning more than you lose by following trend and price action and then keeping your losses small while consistently taking profits when you have them. You don’t need to call the turn or have all triple-digit gain trades. So, don’t chase price, predict turns, and above all, stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control.

Ed

Swing Trade Ideas for your consideration and watchlist: TEVA, PSTG, JETS, LEVI, QID, RIOT, GLW. Rick is out but the RWO Room is open. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

Friday saw a gap down across the board for stocks.  However, the bulls stepped in and immediately began rallying.  This early rally held up in the QQQ, while the DIA faded and then all the major indices ground sideways. This left us with a black-bodied Doji in the DIA, a white Inverted Hammer in the SPY, and a nice white-bodied candle in the QQQ.  On the day, SPY lost 0.48%, SIA lost 0.38%, and QQQ lost 0.52%.  The VXX gained 2.5% to 30.21 and T2122 fell back to mid-range at 60.69.  10-year bond yields fell to 1.224% and Oil gained a fraction to $73.76/barrel.

During the day, WMT joined the chorus of companies that will require employees to be vaccinated.  In this case, WMT mandated vaccination only for corporate office workers, regional managerial staff, and anyone who works in multiple stores.  Single location workers, such as hourly store and warehouse workers will not yet be required to comply. 

The Treasury Department announced that it will begin implementing “emergency cash conservation steps” immediately.  These efforts are needed to avoid breaking the federal borrowing limit after a two-year suspension of that limit expired Saturday.  The steps will allow Treasury to shift money in order to keep paying federal bills for two to three months.  Over that time, Congress can either suspend the limit again, drastically cut spending or decide to allow the country to default on debts.  Additional suspension is by far the most likely outcome.

The pandemic ban on evictions also ended Saturday.  Analysts expect a historic wave of evictions to be coming along with a major increase in foreclosure activity.  This will have impacts on REIT, banking, and even homebuilding industries. However, there is not a good indication as to how these impacts will be distributed amongst those industries.

Overnight, Asian markets were mostly strongly green, with a couple of minor and modest exceptions.  Shenzhen (+2.24%), Shanghai (+1.97%), and Japan (+1.82%) led the gains.  However, significant gains were widespread. Europe is following Asia’s lead so far Monday.  Only Denmark is in the red, while the FTSE (+0.69%) and CAC (+0.62%) are typical of the continent.  The DAX (+0.03%) is the laggard at mid-day.  As of 7:30 am, US Futures are pointing to a green open.  The DIA is implying a +0.30% open, the SPY implying a +0.41% open, and the QQQ implying a +0.41% open.  The dollar is down this morning and 10-year bond rates are up modestly as Oil is down well over one percent in early trading.

The major economic news scheduled for release on Monday is limited to Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  The major earnings reports scheduled for the day include ARCB, CAN, RACE, GPN, GPRE, HSBC, JELD, ON, and TKR before the open.  Then after the close, ACHC, AWK, ARGO, ANET, BRKR, BWXT, COLM, CLR, CVI, FANG, EMN, NSP, ITUB, KMT, LEG, MOS, NXPI, PXD, O, REYN, SBAC, SPG, SEDG, TTWO, RIG, TA, UCTT, UNVR, WMB, and WWD report.

The Senate finished the text of a bipartisan infrastructure compromise. The trillion-dollar bill will include $550 billion in new spending on roads, bridges, water distribution infrastructure, etc. This should see votes coming later week in the Senate. However, the big news of the week will be the July Jobs report and more earnings reports. The good news should be that so far earnings have been outstanding this quarter. Forward guidance and whether companies can repeat the feat in the fall is another question. Finally, Covid cases are continuing the recent increase. However, coming off very low levels means that the medical system has more capacity available and while hospitalizations are also up, outcomes are better with deaths not rising again too much at least as of yet.

As the new month begins, traders are hopeful (coming off 6 winning months). Just as I cautioned against letting down days sway you, don’t let giddy days hurt your discipline either. Trading success is not made in one trade, one day, or one week. Success is all about batting average and adding up those singles and doubles. So, always manage your current positions first. Don’t chase price, predict turns, and above all, stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control.

Ed

Swing Trade Ideas for your consideration and watchlist: PSTG, UNG, TEVA, AAPL, MRVL, BSX, PACB. Rick is out but the RWO Room is open. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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 basically flat on Thursday before putting in a slow morning rally and a slow afternoon fade.  So, generally, it was a sideways nothing day that continued the consolidation in all 3 major indices.  All 3 indices put in upper wicks and small bodies, but you would NOT call any of them Shooting Star candles.  On the day, SPY gained 0.40%, DIA gained 0.42%, and QQQ gained 0.18%.  All 3 indices are very near all-time highs again. The VXX fell to 29.49 and T2122 rose just into the edge of the overbought territory at 81.99.  10-year bond yields rose back to 1.266% and Oil (WTI) was up 1.5% to $73.53/barrel.

During the day Q2 GDP came in far below expectation.  While we still saw 6.5% GDP growth for the quarter, analysts had estimated the growth would be 8.5%.  Weekly Jobless claims also came in a bit above expectation (400k vs. 380k est.).  Then mid-morning June Pending Home Sales shrank 2%.  However, markets shrugged off this news and traded as if everything was fine.

After hours, AMZN reported a massive beat on earnings and over $113 billion in sales for Q2, but still missed on revenue by over $2 billion.  This comes as the pandemic “stay at home shopping” boost fades.   The stock was hammered hard in post-market trading, down 6.5%.  Almost all the other after-hours earnings reports were beats on both lines.  PINS beat on both lines, but obliterated in post-market trading, down 21% as of 4:30 pm after reporting that it lost users during the quarter.

This morning the incredibly strong earnings season continued.  Almost all reports came in as beats on both lines.  The only misses reported were NWL missing on revenue and JCI barely missing (by 4/100 of a cent) on earnings.  CHTR, AON, LYB, VFC, CPRI, PG, and CVX in particular reported significant beats.  A few buyback plans, such as CVX were announced.  Another great day on reports of the quarter past.

Overnight, Asian markets were red across the board.  Japan (-1.80%) and Hong Kong (-1.35%) led the region lower.  In Europe, there are a few minor exchange exceptions, but in general the continent is also in the red as of mid-day.  The FTSE (-0.82%), DAX (-0.74%), and CAC (-0.09%) are pretty typical of the spread among European bourses.  As of 7:30 am, US Futures are also pointing to a gap lower at the open.  The DIA is implying a -0.33% open, the SPY implying a -0.66% open, and the QQQ implying a 1.04% open following the AMZN disappointment.  10-year bond yields and commodity prices are also down, perhaps unrelated to the dollar which is showing only tepid strength this morning.

The major economic news scheduled for release on Friday is limited to June PCE Price Index, Q2 Employment Cost, and June Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  Fed member Brainard also speaks long after the close (8:30 pm).  The major earnings reports scheduled for the day include ABBV, AXL, AON, AVNT, BBVA, BLMN, BAH, COG, CPRI, CRI, CAT, CERN, CVX, CHD, CNHI, CL, DAN, XOM, HRC, HUN, ITW, IMO, JCI, LAZ, LIN, LYB, NWL, PBR, POR, PG, QSR, TU, TIXT, VFC, GWW, and WY all before the open.  Then after the close, there are no major reports scheduled.

It looks like AMZN reporting just their third-ever $100 billion quarter of revenue, but missing by over $2 billion, was the tipping point for fear. Earlier missed economic reports had not moved markets. Still, after a night of reflection, world markets are moving lower so far today. Remember that we are still very near all-time highs and the bullish trend remains in place. So, don’t get too far out on a bearish limb over a pullback. Also, keep in mind that it is Friday and month-end. So, be ready for the weekend new cycle, lightening up, evening up, and hedging as appropriate.

Don’t let a gap or loss get you down. It happens. Remember, trading success is not made in one trade, one day, or one week. Success is all about batting average and adding up those singles and doubles. So, manage your current positions first. Don’t chase, predict turns on one candle, and stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control. Finally, Friday is payday. So don’t forget to pay yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: No Tickers Today. Rick is out but the RWO Room is open. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

Wednesday brought us a blah day with a flat open.  That led to a sideways grind as traders waited on guidance from the Fed.  However, the Fed held course and markets just kept drifting sideways into the close.  This left us with Doji-type candles in the SPY and QQQ as well as a small Bearish Engulfing candle in the DIA.  However, in general, you could say the consolidation just continued.  On the day the QQQ gained 0.38%, SPY lost 0.04%, and DIA lost 0.36%. The VXX fell almost 3% to 29.99 and T2122 rose but remained in the mid-range at 68.46.  10-year bond yields were flat at 1.238% and Oil (WTI) rose one percent to $&2.37/barrel as the dollar fell on the day.

As mentioned, the Fed kept its easy policy (not changing its rates or bond-buying programs). However, they did say the economy continues to improve, despite concern over the Delta variant. Some analysts say this is an admission that tightening is coming soon, but Fed Chair Powell went on to say “the Fed is nowhere near considering a rate hike” and “we see ourselves having some ground to cover to get there” in reference to tapering. In either case, markets stayed the course as that news was digested in the afternoon.

Virus impacts were the other story of the day, as both GOOG and FB said that they will require employees to be vaccinated before they return to the office.  The White House also announced that President Biden will (as had been rumored) require that federal employees be vaccinated as well.  In addition to vaccination requirements, GOOG also postponed its “return to office” deadline until at least October.  On the mask front, AAPL said it will adhere to CDC guidelines by requiring masks in many US stores, regardless of vaccination status.  These are all signs the virus may still be a threat to the economy and business performance, but markets have largely moved on for now.

After hours, the vast majority or earnings reports continued to be strong.  FB posted a 19% beat on earnings, but then warned of a significant growth slowdown.  However, it then warned of “significantly decelerating growth” over the second half of the year.  URI missed on the bottom line and PYPL missed on revenue.  The pattern is holding this morning with the vast majority of companies reporting beats on the top and bottom lines.  Many of those were strong beats of 20% or more (including VLO, which beat by 250%).  The only exceptions seems to be MRK and MLM, who both missed on earnings, as well as HLT and CTXS who both missed on revenue.

Overnight, Asian markets were green across the board, with the lone exception of a minor loss in Malaysia (-0.16%).  Shenzhen (+3.05%) and Hong Kong (+3.30%) led the bounce back after their recent “China Regulatory Crackdown” losses, but gains were widespread with Taiwan (+1.56%), Shanghai (+1.49%), and Singapore (+1.24%) also making significant moves.  In Europe, as of mid-day markets are following Asia and leaning strongly to the green.  The FTSE (+0.90%), DAX (+0.39%), and CAC (+0.77%) are typical of the continent so far today.  As of 7:45 am, US Futures are mixed.  The DIA is implying a +0.32% open, the SPY implying a flat +0.09% open, and the QQQ implying a -0.22% open.  The dollar is down this morning, meaning most commodities are strong and 10-year bond yields are unchanged.

The major economic news scheduled for release on Thursday is limited to Q2 GDP and Weekly Initial Jobless Claims (both at 8:30 am) and June Pending Home Sales (10 am).  The major earnings reports scheduled for the day include AER, AGCO, ACI, ADS, AB, MO, AMT, BUD, MT, ARES, AZN, BAX, BC, CARR, CBRE, CX, CTXS, CCO, CMS, CMCSA, DBD, ERJ, EME, FLEX, FTS, FCN, GTX, GVA, GPI, HSY, HLT, HBAN, ICE, IP, JHG, KBR, KDP, KEX, LH, LKQ, MDC, MMP, MLM, MAS, MA, MRK, TIGO, TAP, COOP, NLSN, NOK, NOC, ONEW, OSK, PATK, PBF, BTU, PCG, PPC, PRG, RLGY, RDS.A, SPGI, SAIA, SBH, SNY, SNDR, SAH, SO, STM, TROW, TMHC, TFX, TPX, TXT, VLO, VSTO, VC, WAB, WFRD, WST, WWW, XEL, and YUM all before the open.  Then after the close, AMZN, ATR, AJG, TEAM, AVTR, BZH, CC, DXCM, DLR, EIX, EW, ERIE, FSLR, FTNT, FTV, GILD, GFF, HUBG, KMPR, KLAC, LBTYA, LPLA, MATX, MTD, MHK, MRC, OPK, PINS, QGEN, RSG, SKYW, SWKS, SWN, TMUS, TXRH, TWLO, VRTX, WELL, WERN, and INT report.

Remember that we are very near all-time highs and the bullish trend remains in place. However, the week-long consolidation is still the short-term market direction, possibly indicating resistance above, but more likely just indicating a pause for bulls to gather direction. In this environment, the steady drumbeat of earnings beats, announcements of buyback programs, and rosy guidance give the bulls the decided edge, but certainly no guarantees on a very short-term basis.

Remember, trading success is not made in one trade, one day, or one week. It’s about batting your average and adding up those singles and doubles. So, manage your current positions first. Don’t chase, stick to your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you control. Limiting your losses and taking profits when we get them is the key.

Ed

Swing Trade Ideas for your consideration and watchlist: OXY, SLV, IAG, NEM, XOP, DKNG, BAC, WFC, PSTG, DISCA, KR. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

Tuesday saw markets gap down at the open and then follow through as traders took profits in front of the after-hours big tech reports to come.  However, the bulls could not be kept down all day as they came back in the last couple of hours of the day.  This led us to close well up off the lows, creating Hammer-type candles in the large caps with the DIA even closing as a white body hammer.  Still, on the day SPY closed down 0.46%, DIA down 0.22%, and QQQ down 1.09%.  The VXX gained 3.4% to 30.86 and T2122 remains in mid-range at 53.33.  10-year bond yields fell sharply to 1.238% and Oil (WTI) was down a fraction to $71.78/barrel.  Most other commodities were down as well, even as the dollar was lower on the day.

During the day, the virus made more headlines as Delta variant infections are spiking, although thankfully without a corresponding spike in deaths.  The CDC reported that the new studies indicate that previous infected/recovered or vaccinated people can spread the Delta variant.  As a result, they are now calling for people to again wear masks indoors, regardless of vaccination status in areas where the infection rate is up (essentially the entire South of the country).  Bloomberg also reported several instances of major employers telling employees to “get vaccinated or get a new job.”  This comes as the White House reported it is considering a vaccination mandate for Federal employees.

After hours, AAPL, MSFT, and GOOG all reported massive beats on both lines.  AAPL reported the iPhone sales increased 50% year-over-year and GOOG gave us a 41% beat on earnings as examples.  Beyond those “big 3,” the rest of the after-close reports also all came in positive.  There was not a single miss on earnings among the 20 majors reporting, with only 2 missing on revenue.  So, the strong earnings story continues, although it is not the earnings, but the reaction that matters.  That being the case, all the major tech names and futures fell on the reports.

So far this morning, the strong earnings season continues.  Every report includes a beat on earnings and only GD has missed on revenue.  MCD, BA, PFE, BMY, HUM, TMO, and others all reported very strong quarters, in most cases handily beating the expectations of analysts.  In other morning news, mortgage rates dropped to a 6-month low of 3.01%.  This caused refinance home loans to jump 9% week-over-week. However, new home loan applications fell 2% for the week.

Overnight, Asian markets were mixed but mostly lower on the day.  Hong Kong (+1.54%) led the comeback after successive days of beatings.  On the other hand, Japan (-1.39%) paced the losses after acting as a safe haven the prior couple of days.  In Europe, stocks are mostly green with only Greece and Norway bucking the trend.  The FTSE (+0.19%), DAX (+0.20%), and CAC (+0.69%) were fairly typical of the modestly green trading at mid-day.  As of 7:30 am, US Futures are pointing to a mixed and modest open.  The DIA is implying a -0.14% open, the SPY implying a +0.07% open, and the QQQ implying a +0.28% open.  The dollar is up so far this morning and so are 10-year bond yields, now at 1.261%. 

The major economic news scheduled for release on Wednesday includes June Trade Balance and June Retail Inventories (both at 8:30 am), Crude Oil Inventories (10:30 am), Fed Rate Decision and Fed Statement (both at 2 pm), and Fed Chair Press Conf. (2:30 pm).  The major earnings reports scheduled for the day include AMG, APH, ADP, AVY, BA, BMY, BG, GIB, CME, CSTM, EXP, EEFT, EVR, FMX, GRMN, GNRC, GD, GSK, HES, HUM, LFUS, MHO, MCD, MCO, NSC, ODFL, OC, PAG, PFE, ROL, R, SC, SHOP, SLGN, SPOT, SCL, TEL, TDY, TEVA, TMO, TNL, UMC, VRT, and WNC all before the open.  Then after the close, ACCO, AFL, AEM, ALGN, ALGT, ATUS, NLY, AR, ASGN, AVB, BHE, CP, CG, CHDN, CMPR, CINF, CNO, CTSH, FIX, CYH, ECHO, ESI, ENSG, EQT, EQIX, RE, FB, F, FBHS, GFL, HIG, HOLX, IR, INVH, KGC, KL, LRCX, MTH, MEOH, MAA, MKSI, MOH, MUSA, MYRG, ORLY, OII, PYPL, PTC, QCOM, RJF, RBC, SIGI, SCI, NOW, SAVE, SSNC, SU, TTEK, TROX, TTMI, URI, WH, XPO, and YUMC report.

With the Fed announcements and the presser coming this afternoon, we are likely to see a wait-and-see game most of the morning. Still, earnings continue to be red hot. In fact, they are so hot that Mr. Market is feeling like the companies may not be able to repeat the performance next quarter, despite raised guidance in most cases. This is the likely cause, at least in part, of the selloffs on the great news.

Remember that you don’t have to trade every day. Trading pre-Fed is like trading through earnings. It tends to be more of a bet as volatility around the Fed meetings is higher and often comes in multiple moves. This is especially true when there is no heavy consensus on what kind of language change might be coming (as today).

If you are taking positions today, be nimble or hedged. So, be sure to manage your current positions first. Don’t chase, stick to your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, or one week. It’s about batting your average and adding up those singles and doubles.

Ed

Swing Trade Ideas for your consideration and watchlist: BTBT, REI, BCRX, UAL, XLI, FAS, KR, XHB. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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 Monday, markets made a very slight gap lower a the open.  However, the bulls took over for the day, thumbing their nose at the Asian markets and driving to new all-time highs.  The large caps put in nice Marubozu-type candles, while the QQQ printed a more “large body Spinning Top” type of candle.  As mentioned, the 5^th consecutive up day ended in new all-time high closes for all 3 major indices.  On the day, SPY gained 0.24%, DIA gained 0.24%, and QQQ gained 0.08%.  The VXX fell 1.5% to 29.87 and T2122 dropped back into the mid-range at 57.26.  10-year bond yields rose slightly to 1.293% and Oil (WTI) was flat at $72.16/barrel.

After the close, TSLA reported a massive beat with 50% higher earnings and almost $700 million more in revenue for the quarter than analysts had expected.  The $1.14 billion ins net income was up ten-fold from one year prior and this was the first time the company exceeded $1 billion net income for any quarter.  UHS was another notable beat last night.  The healthcare company reported 40% more earnings than expected on 10% more revenue than expected.  However, it should be noted that all the major earnings were beats Monday evening.

In other stock news, AAL warned about fuel shortages last evening.  The company said it is one of several airlines facing delays in fuel supply due to a lack of truck drivers.  DAL acknowledged some such fuel-related delays in smaller Western airports, but LUV claimed it has not seen any such delays yet.  AAL told CNBC that it expects such delays to continue through August as peak vacation travel takes place.  The company spokesman said that pilots had been asked to conserve fuel although it did not say what impact conservation might have on “flight on time” metrics.

Once again, earnings seem to be extremely good this morning.  Every major reporting stock put in beats, with the lone exceptions on PHM, which missed on both lines.  UPS beat on both lines as did GE, MMM, RTX, BSX, WM, ROK, SWK, etc.  ADM reported huge beats on both lines. So, it appears inflation is not impacting earnings, perhaps with the exception of homebuilders who had not hedged and bought too much lumber at the top of the recent commodity highs.

Overnight, Asian markets were mostly red again as the Chinese markets continue to be routed as investors fear a mass exodus of Western capitol.  Hong Kong (-4.22%), Shenzhen (-3.67%), and Shanghai (-2.49%) led the region lower.  Japan (+0.49%) on Olympics euphoria and Australia (+0.50%) were the only appreciable gainers.  In Europe, markets are red across the board with the lone exception of a flat Russia.  The FTSE (-0.28%), DAX (-0.33%), and CAC (-0.12%) are typical of the region at mid-day.  However, Portugal (-1.33%) is leading the way lower.  As of 7:30 am, US Futures are pointing to a mixed, mostly flat open.  The DIA is implying a -0.19% open, the SPY implying a -0.11% open, and the QQQ implying a +0.09% open at this hour.   

The only major economic news scheduled for release on Tuesday are June Durable Goods Orders (8:30 am) and Conf. Board Consumer Confidence (10 am).  However, it is another heavy earnings day, with a slew of major tech companies reporting after the close.  The major earnings reports scheduled for the day include MMM, AN, ADM, ABG, BSX, CNC, CIT, GLW, CEQP, DTE, ECL, ENTG, FSV, FISV, GE, GPK, HUBB, IVZ, IQV, JBLU, LW, LECO, MLCO, MSCI, PCAR, PNR, PII, PHM, RTX, ROK, ST, SHW, SIRI, SWK, TECK, TRU, UPS, WM, and XRX.  Then after the close, AMD, GOOGL, AAPL, ASH, AXS, BXP, BYD, CHRW, CAKE, CHE, CB, CSGP, EHC, WIRE, EQR, GOOG, THG, IEX, JBT, JNPR, LBRT, MAT, MXIM, MSFT, MDLZ, NBR, NLOK, OLN, OVV, PFG, SBUX, SYK, TDOC, TER, and V reports.

With so much of the market-leading tech sector reporting after the close, the Fed statement coming Wednesday, and with markets at all-time highs; logic would call for a pullback or pause. However, the bulls have been ignoring logic and continuing to push this last week. So, do not count on a rational market. The economy continues to be strong and companies have so far been able to pass along inflation (or at least found ways to offset it to improve earnings). That said, don’t be caught off guard by a calm day in front of big tech and the Fed.

If you are taking positions today, be nimble or hedged. It’s not known how Mr. Market will react to even the hint of bad news from tech leadership or some non-dovish hint from the Fed. So, manage your current positions first. Don’t chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you can control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, or one week.

Ed

Swing Trade Ideas for your consideration and watchlist: GE, JYNT, TSLA, NTNX, AA. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

The bulls kept their foot on the gas Friday with a half percent gap higher and then follow-through all morning.  The afternoon turned into a sideways grind, but the SPY and QQQ closed very near the highs and the DIA ended up as a white-bodied Spinning Top candle.  On the day, SPY gained 1.03% (new all-time high close), DIA gained 0.66% (new all-time high close), and QQQ gained 1.17% (new all-time high close).  The VXX fell half of a percent to 30.33 and T2122 rose back to near the overbought territory at 76.24.  10-year bond yields rose to 1.281% and Oil (WTI) rose a third of a percent to $72.17.

GM filed a lawsuit against F on Saturday.  The suit was filed on behalf of GM’s “Cruise” driverless taxi subsidiary and is intended to block F from using the name “BlueCruise” for their “hands-free driving technology.” In other stock news, PM told the British press that it plans to stop selling cigarettes in the UK within 10 years as the company attempts to pivot its business. This falls in line with the company’s recent acquisitions in the Pharma space.

A US-Chinese meeting ended in a tense manner early today. The Chinese characterize the relationship as “now at a stalemate and facing serious difficulties.”  As a backdrop, the Biden Administration has taken steps against US companies doing business in the Chinese province where it is alleged that an entire minority population of Uighurs are being and otherwise abused.  At the same time, China has cracked down on Chinese businesses that have been listed in US capital markets.  Apparently, the Chinese submitted 2 lists (one of “errors” that must be corrected immediately and one of the issues Beijing sees as very important) and the Americans “raised concerns” as well.  This shifting and tense relationship is taking shape in the new “near-peer” world as China ascends on the back of decades of strong economic growth.

As we start the week, here are some of the major data points that will drop.  Tuesday, we see June Durable Goods Orders and Conf. Board Consumer Confidence. Then on   Wednesday we get June Trade Balance, June Retail Inventories, Crude Oil Inventories and crucially the Fed decisions, statement and presser. On Thursday we see Q2 GDP, Jobless Claims, and June Pending Home Sales.  Finally, Friday brings the PCE Price Index, Q2 Employment Costs, June Personal Spending, Chicago PMI, and Michigan Consumer Sentiment.

Overnight, Asian markets were mostly down, especially the Chinese exchanges.  This came amidst a Chinese crackdown on Hong Kong-listed and US-listed companies including in the paid education, eCommerce, and social media spaces.  Hong Kong (-4.13%), Shenzhen (-2.65%), and Shanghai (-2.34%) paced the losses. Japan (+1.04%) was the lone gainer.  In Europe, markets are a little more reticent but are mostly lower in modest trading so far today.  The FTSE (-0.24%), DAX (-0.43%), and CAC (-0.29%) are typical, but there are half a dozen modestly green exchanges across the continent.  As of 7:30 am, US Futures are pointing to a mildly lower open.  The DIA is implying a -0.36% open, the SPY is implying a -0.23% open, and the QQQ is implying a -0.11% open.

The only major economic news scheduled for release on Monday is June New Home Sales (10 am).  The major earnings reports scheduled for the day include CHKP, HAS, LII, LMT, OTIS, PETS, and RPM before the open.  Then after the close, AMP, AMKR, AXTA, BRO, CDNS, CLS, CR, FFIV, LOGI, PKG, RRC, TSLA, TFII, TBI, and UHS reports.

Despite the tense atmosphere between China and the US, there was little headline news to move markets. That said, stocks that do large parts of their business in China or that are Chinese and listed here are at risk today. With that said, earnings continue to be very strong, and most eyes will be watching the Fed tea leaves for later this week. Also bear in mind that we sit at all-time highs, coming off a strong 4-day run to end last week. So, a little pause or pullback is due soon.

Manage your current positions first and take your time early. Do not chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you can control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, one week, or one month.

Ed

Swing Trade Ideas for your consideration and watchlist: SOS, JYNT, LCI, DHI, FSR, ARKK, BMBL, CVS, FLGT, TLIS. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

Thursday was another win for the bulls as we saw a small gap higher in the SPY and QQQ followed by the bulls controlling action.  Large-cap indices were more undecided, both closing as Doji-type candles, but the QQQ was strong closing as a Marubozu (shaved head) candle at a new all-time high close.  On the day, QQQ gained 0.66%, SPY gained 0.23%, and DIA gained 0.08%.  The VXX rose slightly to 30.47 and T2122 fell back to the mid-range at 56.60.  10-year bond yields fell to 1.263% and Oil (WTI) gained almost 2% to $71.69/barrel. 

During the day, major Internet outages (caused by AKAM equipment running in the AMZN AWS services) took many brokers and major business websites offline for over an hour.  Interestingly, it was the big tech names, led by AMZN, that buoyed markets all day long.  This was the third major Internet outage in the last few months.

After the close, INTC, TWTR, COFO, CE, and RHI all posted beats on both lines.  VRSN beat on revenue but missed on earnings.  And FE beat on earnings but missed on revenue.  Overall, another very strong day of earnings reports.  However, INTC also guided much lower for Q3 (forecasting 55% margins vs. 59.2% in Q2), citing supply constraints.

So far this morning, AXP, HON, RF, ROP, and SLB all reported beats on both lines. NEE beat on earnings but came up just short on revenue. However, KMB stood out as missing estimates on both lines. The bottom line is that earnings remain very strong this quarter. Despite all the talk of inflation, strong profit margins indicate that most of the major companies retain are able to pass along more than the cost increases they are experiencing.

Overnight, Asian markets were mixed.  China paced the losses with Shenzhen down 1.53% and Hong Kong down 1.45%.  Gains were modest with Japan (+0.58%) leading the way.  In Europe, Markets are green across the board with the lone exception of Russia (-0.29%).  The FTSE (+0.74%), DAX (+0.86%), and CAC (+0.95%) are typical for the continent, but a few of the smaller exchanges show gains over 1%.  As of 7:30 am, US Futures are pointing to a green open.  The DIA is implying a +0.48% open, the SPY implying a +0.42% open, and the QQQ implying a +0.39% open.  The dollar is up this morning while 10-year bond yields are unchanged and commodities are generally lower early.

The major economic news scheduled for release on Friday is limited to Mfg. PMI and Services PMI (both at 9:45 am).  The major earnings reports scheduled for the day include AIMC, AXP, GNTX, HON, KMB, NEE, RF. ROP, and SLB before the open.  Then after the close, there are no scheduled reports.

Even with a brutal day to start the week, the bulls have clearly been in charge for the rest of the week. And it looks like we’ll see yet another green gap at the open today. So the momentum remains to the upside. However, we seem to be feeling undecided at least in the large-caps as the tech-led, lockdown-type market conditions are back in force. Be wary of “gap and fade” volatility. We are at or near all-time highs and there should be no hurry to chase the gap.

Manage your current positions first and take your time early. The first few minutes of the day is very likely not the key to your success, but it is the time of maximum volatility as overnight orders clear and the big boys start putting down their real bets. So, do not chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and repeatedly taking those singles and doubles. Limiting losses and taking profits when we get them is the key. Also, remember this is Friday. Don’t forget to pay yourself and prepare for the 2-day new cycle when markets are closed.

Ed

Swing Trade Ideas for your consideration and watchlist: TBIO, VLRS, AAP, BRKR, LSI, EW, SPLK. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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 Wednesday large caps gapped slightly higher and the QQQ gapped slightly lower.  However, in a slow grinding way, it was the bull’s day again after the open.  This left all 3 major indices with nice white candles that closed very near the highs.  On the day, SPY gained 0.80%, DIA gained 0.84%, and QQQ gained 0.77%.  The VXX fell more than 6% to 29.94 and T2122 moved into the overbought territory at 84.00.  10-year bond yields jumped back up to 1.295% and Oil (WTI) gained almost 4.5%, the largest gain in 3 months, back up to $70.20/barrel. The dollar was down on the day and commodities were generally higher.

During the day cryptocurrencies rallied.  This came after both Elon Musk (CEO of TSLA) and Jack Dorsey (CEO of TWTR) endorsed cryptocurrencies and talked up a bullish case for them.  Musk said that SPCE owns Bitcoin (markets already knew that TSLA still owns some of the cryptocurrency) and Dorsey went so far as to “hope” Bitcoin can bring world peace.  On the day Bitcoin closed back above $32,000.

After the close, GM announced that it will halt most of its full-size pickup production in North America due to the ongoing chip shortage.  The shortage is expected to cost the company $110 billion in revenue for 2021.  On the same issue, TXN pointed to the issue as well when it gave its revenue forecast going forward.

So far this morning, AAL, ABT, DHR, T, MMC, BIIB, DOW, DHI, FTB, DGX, ALLE, and SNA have all reported beats on both the top and bottom lines.  NEW and AEP beat on earnings but came up shy on the revenue line.  Finally, LUV beat on the revenue line but missed on earnings.  So, as of now, it has been another very strong day of earnings reports.

Overnight, Asian markets were green across the board.  Hong Kong (+1.83%), Indonesia (+1.78%), and Singapore (+1.29%) paced the gains.  This came as the larger exchanges lagged, but still gained half of a percent or more.  In Europe, we see a similar story taking shape with green across the board.  The DAX (+0.89%) and CAC (+0.82%) are typical of the continent.  However, the FTSE (+0.10%) lags.  As of 7:30 am, US Futures are pointing to an open just on the green side of flat.  The DIA is implying a +0.13% open, the SPY implying a +0.14% open, and the QQQ implying a +0.18% open.  The dollar is a bit lower this morning and 10-year bond yields are up slightly to 1.30%.

The major economic news scheduled for release on Thursday is limited to Weekly Initial Jobless Claims (8:30 am) and June Existing Home Sales (10 am).  The major earnings reports scheduled for the day include ABB, ABT, ALK, ALLE, AAL, AEP, T, BIIB, BX, BCO, CLF, CROX, DHI, DHR, DPZ, DOW, FITB, FAF, FCX, GPC, HZO, MMC, NEM, NUE, ORI, POOL, BPOP, DGX, RS, SNA, SON, LUV, TPH, UNP, and WSO before the open.  Then after the close, SAM, COF, CSL, CE, FE, INTC, RNR, RHI, SKX, SNAP, SIVB, TWTR, and WRB report.

The bulls showed strong follow-through on Wednesday. However, some resistance remains overhead. In addition, fear about the Delta variant and chip shortages are building again. On the other hand, earnings continue very strong and that has to be good news on the bullish side. In other words, the bulls have very short-term control, but the bullish trend has not been reestablished yet after putting in a lower-low. And fears tracing back to the pandemic have not been put completely to rest yet. Just, be cautious. Volatility and uncertainty make uncomfortable companions for traders.

Once again, remember that you don’t have to trade every day. Trading a volatile market is difficult at best. So, manage your current positions first and if you do trade, stay nimble and cautious. Do not chase, stick with your trading rules, and maintain discipline. Trading success is all about consistency and that means taking singles and doubles. Limiting losses and taking profits when we get them is the key. Just keep piling up those trading goals met. Eventually, that will compound to a huge gain and in the meantime, you will sleep better.

Ed

Swing Trade Ideas for your consideration and watchlist: ORCL, PTON, BCRX, T, MSFT, LI DQ. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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

The bulls turned the tables on the bears Tuesday.  Whether it was a short squeeze or a reversal, markets put in a small gap higher, but then kicked into overdrive, following through on the rally that actually started the last half hour of Monday.  This wiped out most of the losses from the previous day and left us with strong bullish candles in all 3 major indices.  However, just like Monday, markets changed direction the last 30 minutes of the day, this time selling off.  On the day, SPY gained 1.43%, DIA gained 1.53%, and QQQ gained 1.16%.  The VXX fell almost 9% to 31.97 and T2122 spiked from extremely oversold all the way up near the overbought territory at 76.19.  10-year bond yields jumped back up to 1.215% and Oil (WTI) climbed 1.36% to $67.32.

JNJ made news a couple of times during the day.  First, it spiked on leaked news that a settlement will be announced Wednesday between JNJ and 2 drug distributors and most of the plaintiffs in the thousands of opioid lawsuits totaling $26 billion in requested damages.  (It is reported that 40 states will agree to the settlement.  This includes NY, whose Attorney General tweeted that the state would get over $1 billion from the settlement.)  Secondly, late in the day, Bloomberg reported confirmation to a story from the weekend.  Apparently, JNJ has hired a law firm to organize the “Texas 2-Step” spinoff of Johnson Baby Powder into a separate company that will then immediately file bankruptcy.  This will shift liability for lawsuits related to the product containing carcinogens onto a bankrupt company and save JNJ potentially billions in damages.

After the close NFLX reported a beat on the revenue line, but missed on earnings.  It also beat on net subscriber growth but lowered guidance for Q3.  Meanwhile, CMG beat on both lines, with a significant beat on earnings ($7.46/share vs. $6.50/share est.).  Finally, while UAL lost money, it lost less than expected and therefore, delivered a beat on both lines.

This morning ANTM. KO, HOG, JNJ, VZ and most of the other major earnings reports came in with beats on both the top and bottom line.  Many, such as KO, raise full-year guidance as well.  For their part, JNJ said it expects over $2.5 billion in Covid-19 vaccine sales in 2021 alone.

Overnight, Asian markets were mixed but leaned to the green side.  Shenzhen (+1.34%) and Shanghai (+0.78%) led gainers.  Meanwhile, India (-0.76%) paced the losses.  In Europe, markets are strongly green across the board so far today.  The FTSE (+1.63%), DAX (+0.77%), and CAC (+1.27%) are typical for the continent at this point in the day.  As of 7:30 am, US Futures are pointing to a mixed and modest open.  The DIA is implying a +0.35% open, the SPY implying a +0.17% open, and the QQQ implying a -0.21% open.  10-year bond yields are up this morning to 1.237% with the dollar slightly stronger and commodities mixed in premarket trading.

The major economic news scheduled for release on Wednesday is limited to Crude Oil Inventories (10:30 am).  The major earnings reports scheduled for the day include ANTN, ASML, BKR, KO, CMA, HOG, HCSG, IPG, JNJ, KNX, LAD, MTB, NDAQ, NTRS, NVS, NVR, RCI, SAP, STX, and VZ before the open.  Then after the close, CCI, CSX, DFS, EFX, GGG, ICLR, KALU, KMI, LSTR, LVS, OMF, PLXS, SEIC, STC, FTI, THC, TXN, UFPI, and WHR report.

The bulls clearly showed up with strength Tuesday. However, that give back the last 30 minutes of the day certainly made it feel like much of the strength came from short-covering, with the squeezers taking profit at day end after sticking it to the squeezees all day. Technically, we filled the gaps in the QQQ and SPY, but potential resistance remains overhead in the form of prior trend lines and previous highs/lows. So, be careful trading in a still-undecided and volatile market.

Remember that you don’t have to trade every day. Trading a volatile market is difficult at best. So, manage your current positions first and if you do trade, stay nimble and cautious. Do not chase, stick with your trading rules, and maintain discipline. Trading success is all about consistency and that means taking singles and doubles. Unsettled markets is when we should be playing “small ball,” limiting losses and taking profits when we get them. Just keep piling up those trading goals met.

Ed

Swing Trade Ideas for your consideration and watchlist: NOK, MS, XLV, BCRX, CHHWY, ORCL, HD, PTON, UVXY. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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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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