Daily Trade Ideas Public Archives - Page 86 of 243

Market Fears Inflation as Chart Gets Technical Damage

March 4, 2021 by Ed Carter

Markets made a small gap-down to open the session Wednesday. However, the bears had the whip in hand all day as inflation fears loomed. Bond yields rose over 8 basis points before settling back. This left us with big, ugly black candles that have either are forming (DIA), have formed (SPY), or have broken out of (QQQ) a Dreaded-h pattern. All 3 major indices closed on the lows. On the day the DIA (buoyed by BA and JOM) lost 0.38%, the SPY lost 1.32%, and the QQQ lost 2.88%. The VXX rose 4.28% and T2122 rose a bit to 39.01, but remains on the lower side of mid-range. 10-year bond yield closed up significantly to 1.469% and Oil (WTI) jumped 2.5% to $61.25/barrel.

After the close, DIS said they are closing 20% of their brick-and-mortar stores in order to shift more focus to e-commerce. President Biden made a concession Wednesday by announcing his support for a reduction in the earnings cap qualification for direct payments. The new number will be $80,000, down from the original $100,000. This would disqualify about 12 million people. This comes as the Senate began debating the bill on Wednesday evening.

AAPL is now facing a new antitrust probe in the UK. This is based on app developer complaints about the Apple app store. Specifically, the 30% fee and long approval process are being challenged. AMZN also made news in the UK, though for better reasons. AMZN opened its first cashier-less retail shop, where customers just pick out their items and leave. The system works on smartphones and an AMZN phone app. An AMZN-backed food delivery service (Deliveroo) also chose London as the location of its first operation.

Related to the virus, US infections have plateaued (after almost 2 months of fall) at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 29,456,377 confirmed cases and deaths have now passed half a million at 531,652 deaths. As mentioned, the number of new cases fell just slightly again to an average of 65,322 new cases per day. Deaths, which have always lagged, also fell very slightly to 1,922 per day. President Biden, the CDC, and Dr. Fauci (NIH) all derided states who are lifting restrictions now before the virus and its variants are fully beaten. In the Senate, GOP members are planning “made for TV” testimony sessions that will likely delay a Senate vote until next Wednesday.

Globally, the numbers rose to 115,869,639 confirmed cases and the confirmed deaths are now at 2,573,690 deaths. The trends have been good, but we saw a significant uptick today. The world’s average new cases has up-ticked again to 388,447 per day. Mortality also ticked up again, now at 8,955 new deaths per day. The WHO weighed in to say that after many weeks of falling, the number of cases is ticking up and that variants are to blame. In better news, the UK has now said that like the US, they will fast-track modified versions of vaccines to deal with variants rather than require the full 3-phase trial process. In Germany, the governement finally approved the AZN vaccine for people over 65. And in India, an Indian vaccine (Covaxin) has been found to be 81% effective in trials on almost 26,000 people, based on results from 43 patients. (36 who had gotten the placebo contracted Covid while only 7 who had gotten the real vaccine also contracted Covid).

Overnight, Asian markets were red across the board. Hong Kong (-2.15%), Japan (-2.13%), and Shenzhen (-2.90%) highlighted the losses, but the red was widespread and strong everywhere. In Europe, markets are also in the read all across the continent so far today. Smaller exchanges like Finland (-1.36%) and Belgium (-1.21%) are leading the losses. However, the FTSE (-0.86%), DAX (-0.38%), and CAC (-0.22%) are all headed lower as well at this point in their day. As of 7:30 am, US Futures are pointing to a very modestly red open. The DIA is now implying a -0.14% open, the SPY implying a -0.23% open, and the QQQ implying a -0.23% open.

The major economic news for Thursday includes Weekly Initial Jobless Claims, Q4 Productivity, and Q4 Unit Labor Costs (all at 8:30 am), Jan. Factory Orders (10 am), and Fed Chair Powell speaks (noon). Major earnings reports on the day include BJ, BURL, CNQ, CIEN, GMS, KR, MIK, SRLP, and TTC before the open. Then after the close, AVGO, COO, COST, and GPS report.

Inflation fear still grips Wall Street. While pre-market futures are just shy of flat, we still have a shot of data coming before the open. Also, with Fed Chair Powell speaking again today (I don’t know if he will be taking questions), markets may be waiting on more reassurance that inflations will be ignored the rest of the year. All we know for sure is that despite a pullback of late, we are still not far from all-time highs and the market is seriously worried about the Fed maybe changing course later this year. So, preparedness is the key here.

Follow the trend, respect support and resistance, and don’t chase those moves that you miss. Another trade will come along any minute. So, forget about predicting reversals or breakouts. Just book your trade goals when you can and stick with your discipline. Achieve your ambitions in the long-run by taking short-term trade gains off the board consistantly as they are met, over and over again.

Swing Trade Ideas for your consideration and watchlist: SQQQ, BIDU, HON, EMR, KHC, KEYS, PFE, EEM. 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.

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Economy on Fire and MRK Making JNJ Jabs

March 3, 2021 by Ed Carter

Markets opened modestly higher Tuesday and then roller-coastered all day. However, a selloff the last 45 minutes of the day left all 3 major indices closing near their lows. All 3 printed big ugly black candles, but the QQQ was the sorts of the lot, printing a Bearish Engulfing candle. On the day, SPY lost 0.78%, DIA lost 0.44%, and QQQ lost 1.60%. The VXX only gained nine-tenths of a percent to 14.97 and T2122 fell all the way back down to 30.00. 10-year bond yields fell significantly to 1.405% and Oil (WTI) lost two-thirds of a percent to $59.35/barrel.

Manufacturing data Monday showed that the US economy is exploding (in a good way) even as the $1.9 trillion relief bill is being debated in the Senate and is expected to pass in the next two weeks. The Atlanta Fed real-time GDP estimates are showing that Q1 may exceed even the most optimistic estimates, now estimating Q1 to see at 10% GDP gain. However, not all sectors are in good shape. Mortgage demand fell again as rates rose again to the highest level since last July. In terms of counter-intuitive thinking, this may be bad for markets as traders fear the Fed will have to go back on its word and take a more hawkish stance by the end of the year.

President Biden invoked the Defense Production Act Tuesday and then negotiated an agreement between JNJ and MRK. As a result, MRK will use two of their manufacturing plants to make the JNJ vaccine and the delivery schedule for JNJ vaccine has been accelerated by two full months. In the early evening, President Biden said this will ensure that the US has enough vaccine to vaccinate every American adult by the end of May (versus the old schedule which would have reached that point by the end of July). Obviously this is great news for the economy and theoretically for businesses as well.

Related to the virus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 29,370,705 confirmed cases and deaths have now passed half a million at 529,214 deaths. As mentioned, the number of new cases fell slightly again to an average of 66,307 new cases per day. Deaths, which have always lagged, also fell slightly to 1,932 per day. TX dropped all mask and building capacity restrictions Tuesday. On the same day OH, MI, and several southern states also partially eased restrictions. Time will tell if going wide open now is another mistake or not.

Globally, the numbers rose to 115,076,964 confirmed cases and the confirmed deaths are now at 2,552,234 deaths. The trends have been good, but we saw a significant uptick today. The world’s average new cases has up-ticked again to 387,769 per day. Mortality also ticked up, now at 9,041 new deaths per day. In the UK, the latest data shows that even a single vaccination of a 2-dose regimen cuts the risk of hospitalization by 80% in people over 80 years old at least after 3-4 weeks of time for the vaccine to work. The study was only of PFE-BTNX and AZN vaccines. People aged 70-80 got only 61% protection from the PFE vaccine and 73% from the AZN. In Asia, China has now said more that 500 million of their population will have been vaccinated by the end of June.

Overnight, Asian markets were green across the board. Shanghai (+1.95%), Hong Kong (+2.70%), and India (+2.19%) paced the gains. In Europe, markets are mixed, but mostly green so far today. There are some major outliers such as Portugal (-1.74%) and Denmark (-1.41%). However, the FTSE (+0.82%), DAX (+0.90%), and CAC (+0.62%) are more typical of the continent so far today. As of 7:30am, US Futures are pointing to a green open. The DIA is implying a +0.65% gap up, the SPY implying a +0.56% gap up, and the QQQ also implying a +0.56% gap open.

The major economic news for Wednesday includes Feb. ADP Nonfarm Employment (8:15 am), Feb Services PMI (9:45 am), Feb. ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (10:30 am), Fed Beige Book (2 pm), and 2 Fed speakers (Bostic at noon and Kaplan at 6:05 pm). Major earnings reports on the day include DLTR, DY, and PDCO before the open. Then after the close, AEO, CNR, MRVL, SPLK, and TCOM report.

It seems inflation fears (or the lack thereof on some days) have been the major market drivers recently. While pre-market futures look good to the bulls, the stories of a potential blowout GDP for the quarter are likely to strike fear in traders watching the Fed. Without a crystal ball, the best we traders can do is to have a plan with protection in place to handle the volatility of the market jerks one way and then the other. All we know for sure is that we are near all-time highs in a manic market. So, preparedness is the key here.

Swing Trade Ideas for your consideration and watchlist: SPWR, TER, RAD, ROKU. 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

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

World Needs More Chips, UAL More Planes

March 2, 2021 by Ed Carter

March started off with a bang as markets gapped up about 1.35% and the bulls kept the rally going (slowly) the rest of the day. This left us with a Bull Kicker type candle in the QQQ, and strong bullish candles in the SPY and DIA (although the DIA did leave an awful lot of upper wick). On the day, DIA gained 1.98%, SPY gained 2.42%, and QQQ gained 3.01%. All in all, this was the best day for the S&P since last June. The VXX fell almost 7.5% to 14.84 and T2122 jumped from oversold all the way into the lower edge of the overbought territory at 82.42. 10-year bond yields rose again to 1.426% and Oil (WTI) fell half a percent to $60.32/barrel.

In US business news, despite still demanding more government bailout money to avoid laying off thousands of employees, UAL disclosed that it is buying 25 new BA 737 Max planes and has accelerated the purchase cycle on an existing order for 45 of those same model plane (40 of which are now to be delivered in 2022). This comes as UAL says it now expects a rebound in air travel. BA stock popped almost 6% on the day on this news. In other stories, the head of NKE North America resigned after it was disclosed that her son runs a sneaker resale business and uses a credit card in her name to buy shoes for that business. In Texas, Reuters reports that the state’s energy companies have skipped almost $2.5 billion in payments for power and services over the last 2 weeks according to the state ERCOT grid operator. ERCOT did not name the specific companies and amounts yet, but threatens to do so if the bills are not paid soon. However, the largest electricity provider in the state (Brazos Elec. Power Cooperative) filed for bankruptcy Monday.

In global business news, a severe drought in Taiwan (most of the country’s reservoirs are down to 20% capacity) is threatening to make the global chips shortage worse. The country has asked major chipmakers TSM and UMC to cut water usage to 10%. So far, they are avoiding reducing output by buying and trucking in fresh water for their fabs (factories). This story was reemphasized when NIO (Chinese TSLA rival) reported that the global chip shortage will cause a cut in their production capacity by as much as 25% in Q2. It did this while reporting a loss for the most recent quarter.

Overnight, the few Asian markets were mixed again. Shanghai (-1.21%), Hong Kong (-1.21%), and Japan (-0.86%) paced the losses. Meanwhile, South Korea (+1.03%) and India (+1.07%) paced the gains. In Europe, markets are mostly green so far today. The FTSE (+0.70%), CAC (+0.62%), and DAX (+0.54%) are typical of the continent with the odd outlier such as Athens (+1.37%) or Belgium (-0.14%). As of 7:30 am, US Futures are flat after an overnight rollercoaster ride. The DIA is implying a -0.05% open, the SPY implying a -0.13% open, and the QQQ implying a -0.20% open.

The only economic news for Tuesday is two Fed speakers (Brainard at 1 pm and Daly at 2 pm). Major earnings reports on the day include ANF, AER, AZO, IGT, KSS, KTB, SER, and TGT before the open. Then after the close, BGS, DAR, GO, HPE, JWN, ROST, and URBN report.

With no major economic news scheduled and the Senate yet to take up debate on the stimulus bill, it may be inflation and downside protection that drives markets this morning. All eyes will be on the bond market that has pulled back from last week’s highs but is surely trending in the direction of inflation. That said, Monday was a strong day and the bulls liked having the chance to run after a week or slow retreat. We’re close enough to the all-time highs that they can taste it. Be cautious and know the timeframe you are trading. Are you focusing on Monday’s rally, the 2-week pullback, or the post-election rally?

Forget about predicting reversals or breakouts. Just book your trade goals when you can and stick with your discipline. Follow the trend, respect support and resistance, and don’t chase those moves that you miss. Another trade will come along any minute. So, achieve your ambitions in the long-run by taking short-term trade goals off the board as they are met, over and over again.

Swing Trade Ideas for your consideration and watchlist: PINS, PENN, INTC, GE, MARA. 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

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

JNJ Vaccine and Stimulus Next Step Taken

March 1, 2021 by Ed Carter

Markets gapped up (slightly in the large-caps and a percent in the QQQ), but then put in a sideways chop that was not far from the highs until the last 10 minutes of the day. However, Friday ended on a massive selloff on heavy volume to end the week on a down note. The DIA went out near the lows on a big black-bodied candle while the SPY was a little less decisive and the QQQ put in a black Spinning Top candle. On the day DIA lost 1.42%, the SPY lost 0.52%, and the QQQ eked out a 0.42% gain. The VXX fell 4.53% to 16.03 and T2122 fell well into the oversold territory at 10.87. 10-year bond yields fell to 1.407% and Oil (WTI) fell almost 3% to $61.66/barrel.

As expected, late Friday night the House passed the $1.9 trillion relief bill and sent it on to the Senate. As was mentioned Friday, the Senate Parliamentarian has already ruled that the Minimum Wage increase must be stripped out of the Senate version. So, while the Republicans are expected to put up a fight (mostly staking out political positions for the 2022 elections), the bill is expected to pass the Senate, be reconciled with the House and be signed into law in the next two weeks. As a side note to the ruling by the Parliamentarian, some Democrats are already working on ways to rewrite tax laws to punish large corporations who do not “voluntarily” raise their minimum pay to the $15/hour level. However, it is unclear if that can make it into law.

Berkshire published Warren Buffett’s annual letter to investors this weekend. This year Berkshire leaned on stock buy-backs (almost $25 billion worth) instead of deals or company performance to power stock price. In the past, Buffett derided buybacks as a sign of a company’s management having no better ideas on how to invest. Bloomberg even published a front-page article critical of this year’s letter, which gave little insight compared to previous years. It failed to mention the pandemic or climate impacts on the economy or even on the company’s major insurance units. He did say AAPL was a valuable position for the company (although they unloaded a sizable portion of their position in Q4) and said they paid too much for a $37 billion acquisition 5 years ago. It also came out that Berkshire owns more of a Chinese electric vehicle maker BYD that does GM, who is another major BYD investor

Related to the virus, US infections are plateauing at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 29,255,365 confirmed cases and deaths have now passed half a million at 525,778 deaths. As mentioned, the number of new cases fell again over the weekend to an average of 68,966 new cases per day. Deaths, which have always lagged, seem to fall again to 1,989 per day. Late Saturday the FDA approved the JNJ 1-shot vaccine for emergency use. This means 4 million additional doses of vaccine will be available this week and the company has promised to deliver 20 million by the end of the month.

Globally, the numbers rose to 1134,753,130 confirmed cases and the confirmed deaths are now at 2,544,452 deaths. The trends have been good, but we saw a significant uptick today. The world’s average new cases has up-ticked slightly again to 385,430 per day. However, mortality ticked down again, now at 8,966 new deaths per day. In Europe, the UK is desperately seeking to find one of the 6 cases of the Brazil variant that they have identified. However, data also shows that their vaccination program is having an effect, with deaths among the elderly down dramatically in the last month. Meanwhile, in Germany, the government reports that the UK and South African variants now account for most of the cases seen in their country.

Overnight, the few Asian markets were mixed, but mostly in the green. Taiwan (-3.03%) and South Korea (-2.80%) were large outliers. However, Japan (+2.41%), Shenzhen (+2.42%), and Australia (+1.74%) are more typical. In Europe we are seeing green across the board so far this morning. The FTSE (+1.37%) and CAC (+1.25%) are pacing gains with the DAX (+0.87%) a bit behind. As of 7:30 am, US Futures are firmly in the green and pointing to a gap up. The DIA is pointing to a -+0.90% open, the SPY is implying a +0.98% open, and the QQQ is implying a +1.19% open at this point.

The major economic news for Monday is limited to Feb. Mfg. PMI (9:45 am), Feb. ISM Mfg. PMI (10 am), and a Fed speaker (Williams at 9 am). Major earnings reports on the day include BRKB, CORE, CVET, XRAY, FMX, MIDD, and TGNA before the open. Then after the close, MELI, PRGO, SGMS, and ZM report.

US Futures popped early Monday as inflation fears seem to have come off the front burner. Perhaps it is the new vaccine (JNJ) in the toolbox that has markets looking to run this morning. Regardless, the bulls look to be in-charge when the opening bell rings. That said, the trend has been to the downside of late. So be careful calling a reversal…volatility and intraday reversals have been the norm in the recent chop.

Follow the trend, respect support and resistance, and don’t chase those moves that you miss. Another trade will come along any minute. So, achieve your ambitions in the long-run by taking short-term trade goals off the board as they are met, over and over again. Forget about predicting reversals or breakouts. Book your trade goals when you can and stick with your discipline.

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Monday. 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

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

Inflation Fears Grip Markets

February 26, 2021 by Ed Carter

The large-caps opened flat, but the bears were in control all day. It was the same story in the QQQ, but with a significant gap down to start the day. This left us with a Bearish Engulfing signal in the DIA, and ugly large-body black candles in the other two major indices. On the say DIA lost 1.74%, SPY lost 2.41%, and QQQ lost 3.49%. The VXX gained almost 16% to 16.79 and T2122 dropped all the way down to the edge of the oversold territory at 20.22. 10-year jumped again to 1.532% as inflation fears spooked markets all day. Oil (WTI) lost half a percent to $63.18/barrel.

After the close, the Senate Parliamentarian ruled that the Democratic minimum wage hike (to $15/hr.) must not be included in the relief bill since it is being passed under budgetary rules. On the surface, this seems like a win for the GOP, which has strongly opposed the increase. However, many Democrats had hoped for this ruling, as it makes it easier for the relief bill to pass the Senate and it removes the potential party split on this topic. In either case, this makes it much more likely for the President’s $1.9 trillion relief bill gets passed in the next couple of weeks. The House is scheduled to vote on the bill today.

Another story related to the idea of a trading tax idea (an idea that was quietly revived by Liberals during the Robinhood / Reddit / Short Squeeeze story) has popped up. The idea which is a favorite of populist politicians such as Senators Warren and Sanders (as a supposed way of reducing high-frequency trading by funds), is being adopted abroad as well. In this case, Hong Kong plans to implement the same type of tax. Overnight, the Hong Kong Finance Secretary (the counter-part to US Treasury Sec. Yellen) told CNBC Asia that the tax will not harm the competitiveness of the Hang Seng exchange. He went on to say it will bring in much-needed additional government revenue, helping fund the City’s $256 billion deficit for the pandemic year. CNBC did not follow-up on whether he knew something about the plans of other countries or why he specifically feels this increased cost per trade will not make the HSI exchange less attractive.

Related to the virus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 29,052,262 confirmed cases and deaths have now passed half a million at 520,785 deaths. As mentioned, the number of new cases is starting to level-out and uptick at an average of 71,412 new cases per day. Oddly, deaths, which have always lagged, seem to be preceding this plateau and rose back up to 2,082 per day. After the close Thursday President Biden celebrated the halfway point toward his promised 100 million vaccinations in 100 days. The 50million were actually accomplished in 5 weeks. In other good news, the FDA Advisory Panel will make its decision on the JNJ vaccine on today.

Globally, the numbers rose to 113,643,803 confirmed cases and the confirmed deaths are now at 2,521,185 deaths. The trends have been good, but we saw a significant uptick today. The world’s average new cases has up-ticked slightly again to 382,500 per day. However, mortality ticked down again, now at 9,296 new deaths per day. In a real show of charity, India has shipped 36 million doses of vaccine to various developing countries. This is particularly impressive given that they have 1.4 billion people of their own to vaccinate. Elsewhere in Asian, South Korea has extended its Social Distancing measures through at least March 14 as vaccinations begin in that country.

Overnight, the few Asian markets were mostly strongly in the red, with only 2 smaller markets remaining green. Japan (-3.99%), Hong Kong (-3.64%) and Taiwan (-3.03%) led Asian markets lower. In Europe, we see red across the board so far today. The FTSE (-1.56%) and CAC (-1.03%) are leading stocks lower, but the DAX (-0.67%) is not exactly a bright spot. Inflation fears seem to be the culprit as was the case in the US on Thursday. However, another mid-day happening is the Bank of England’s Chief Economist warned that the “inflationary tiger has awoken” which will reinforce market fears over inflation. As of 7:30 am, US Futures are mixed and flat after a turbulent overnight session. The DIA is pointing to a -0.10% open, the SPY is implying a +0.10% open, and he QQQQ is implying a -0.07% open at this point.

Major economic news for Friday includes Jan. PCE Price Index, Jan. Trade Balance, Jan. Personal Spending, and Jan. Retail Inventories (all at 8:30 am), Feb. Chicago PMI (9:45 am), Michigan Consumer Sentiment (10 am), and US Federal Budget (2 pm). Major earnings reports on the day include AMCX, BLDR, CRI, SSP, FLR, FL, LSXMA, and PEG before the open. Then after the close, COKE reports.

Inflation fears remain the “monster in the closet” for markets today. News out of Europe (contradicting Fed Chair Powell’s reassuring testimony about inflation earlier this week) is likely to reinforce the panic yesterday. It is also month-end, so there may be some balancing sales built into the market today after a strong February. So, have your downside protection at hand, but also be wary of the back-and-forth chop of this week.

The downtrend is obviously back in place for the major indices. If you are going to trade today, follow trend, respect support and resistance, and don’t chase those moves that you miss. However, remember that you don’t have to trade every day. Part of the trick to trading success is knowing when the market is too volatile to safely trade. Another trade will come along any minute. Achieve your ambitions in the long-run by taking short-term trade goals off the board as they are met, over and over again. Forget about predicting reversals or breakouts. Book your trade goals when you can and stick with your discipline.

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Friday. 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

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

VZ 5G Play with Jobless Claims and Q4 GDP

February 25, 2021 by Ed Carter

Markets gapped down again Wednesday, and sold off the first hour. However, as soon as Fed Chair Powell began to speak, the bulls stepped on the gas and rallied the rest of the day. This left us with strong bullish candles and the DIA even closed at another new all-time high. On the day, SPY gained 1.10%, DIA gained 1.31%, and QQQ lagged, but still gained 0.82%. The VXX fell 4% to 14.48 and T2122 jumped back into the overbought territory at 92.76. 10-year bond yield rose again to 1.383% and Oil (WTI) gained half a percent to $63.56/barrel.

Interestingly, Fed Chair Powell said that prices may rise in the coming months, but that does not mean inflation has come back. I’m not sure how that math works, especially in a time of Fed easy money policy. Still, markets took it as a sign of the Fed saying they were going to keep their foot on the gas regardless of inflation. In other Fed news, they reported a systems outage for four hours Wednesday. This means that millions of interbank transfers, payroll transactions, and even tax refunds could not be processed during that time. They reported this as a “operational error” and services were mostly restored by day end. However, the outage does raise questions about the robustness of American financial infrastructure.

VZ was the high bidder in Wednesday’s FCC’s 5G spectrum auction. The spent over $45 billion to secure over 3,500 licenses for the prime “mid-band” frequencies. T was the second highest bidder, spending over $23 billion to get 1,600 licenses. No other carrier purchased even 20% of what T bought and T bought less than half what VZ bought. This means VZ will be able to build out the largest 5G network in the country, by far.

Related to the virus and stimulus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 28,974,623 confirmed cases and deaths have now passed half a million at 518,363 deaths. As mentioned, the number of new cases is starting to level-out and uptick at an average of 70,678 new cases per day. Oddly, deaths, which have always lagged, seem to be preceding this plateau and rose back up to 2,131 per day. In more good news, NVAX said they expect to apply for FDA approval of their vaccine in Q2. As expected, House Speaker Pelosi has scheduled the vote to pass the $1.9 trillion relief bill in the House on Friday. The Senate will then consider the bill. One key issue that remains is that it will be the Senate Parliamentarian (a little know post) who decides if the $15/hr. minimum wage can be included in the bill. Democrats have told reporters privately that they hope the Parliamentarian strips that provision from the bill, because they doubt it will pass the Senate with than provision attached.

Globally, the numbers rose to 113,191,956 confirmed cases and the confirmed deaths are now at 2,510,807 deaths. The trends have been good, but we saw a significant uptick today. The world’s average of new cases has up-ticked slightly to 376,133 per day. Mortality also ticked up, now at 9,442 new deaths per day. PFE/BNTX and MRNA have both begun testing booster vaccines to fight the new UK and South African variants specifically. This would require a 3^rd shot, but would extend protection, once the booster shot is proven in tests. In Europe, several of the smaller countries (like Austria) are now calling on the EU to create travel passports for those who have been vaccinated. Meanwhile Germany warned of a third wave if Europe does not reopen cautiously and France imposed a lockdown on another city (Dunkirk) due to outbreak.

Overnight, the few Asian markets were mostly in the green, with the lone exceptions of Shenzhen. South Korea (+3.50%), Japan (+1.67%), and Taiwan (+1.48%) led the way higher. In Europe, a similar story is taking shape today. Only the DAX (-0.17%) and Switzerland (-0.20%) are down, while the rest of the continent is at least above break-even. The FTSE (+0.40%) leads the way with the CAC (+0.12%) being more typical at this point of the day. As of 7:30 am, US Futures are mixed with the large-cap straddling the flat line and the QQQ pointing to a -0.76% open.

Major economic news for Thursday includes Jan. Durable Goods Orders, Q4 GDP, and Weekly Initial Jobless Claims (all at 8:30 am), Jan. Pending Home Sales (10 am), and a number of Fed speakers (Bostic at 8:30 am, Quarles at 11:10 am, Bostic again at noon, and Williams at 3 pm). Major earnings reports on the day include AES, AEP, AMT, BUD, BBY, CWH, CM, CNP, CLF, DPZ, DCI, EME, FCN, GIL, GTN, HSC, SJM, KDP, MLCO, NTES, NLSN, NOMD, PCG, PLTK, PWR, REZI, SAFM, SRCL, TD, TFX, VIPS, and W all before the open. Then after the close, ACHC, ADT, ABNB, ADSK, CZR, CVNA, FIX, CWK, DELL, DASH, EIX, ENDP, ERIE, FTCH, FND, HPQ, IHRT, LHCG, MTZ, MNST, QRTEA, REGI, RKT, CRM, SFM, TA, UHS, VALE, VMW, WDAY, and INT report.

Jobless Claims, the update on Q4 GDP, and earnings reports are likely to drive markets this morning. Markets were giddy Wednesday after Fed Chair Powell basically said “whatever it takes to get it done” to pump up the economy. However, regardless of Fed speak, rissing bond rates point to inflation and Mr. Market knows how the Fed reacts to inflation. So fear exists as well.

The downtrend is broken in the large-caps, but that question is still debatable in the QQQ as high-tech has lagged. Just follow the trend, respect support and resistance, and don’t chase those moves that you miss. Another trade will come along any minute. Remember, trading is a marathon, not a sprint. Achieve your ambitions in the long-run by hitting short-term goals over and over again. Forget about predicting reversals or breakouts. Book your trade goals when you can and stick with your discipline.

Swing Trade Ideas for your consideration and watchlist: FDX, XRT, ABBV, HON, LYFT, MU, F, TLRY. 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

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

Earnings and Loan Demand Lead News

February 24, 2021 by Ed Carter

Markets gapped down and then put in a very volatile day as stocks rallied strong after Fed Chair Powell told us inflation was “still soft” and the Fed remains committed to the current “easy money” policies, including buying bonds. This left us with white-body indecisive candles that can be seen as Hammer candles (if you squint). On the day SPY gained 0.12%, DIA gained 0.05%, and QQQ lost 0.30%. The VXX fell 4% to 15.08 and T2122 also fell back to 72.05. The 10-year bond yields fell slightly to 1.353% and Oil (WTI) rose slightly to $61.88/barrel.

SQ bought $170 million in bitcoin Tuesday. Then overnight a 6^th Chinese city launched their country’s Central Bank official digital currency ($6 million worth) as a test. Also last night, Bloomberg reported that Japan’s most expensive brokerage (Monex Group) has made a massive rally, up 136% this year, strictly on cryptocurrency bets. The story just goes to show that more and more of the world’s mainstream financial institutions and governments are starting to accept and invest in the crypto revolution. This all comes one day after Treasury Sec. Yellen warned that bitcoin was an “extremely inefficient” way to conduct monetary transactions…hinting at the need for the government to regulate those currencies and markets.

Mortgage demand plummeted 11% week-on-week on rate spikes, but may also be distorted by the winter storm impacts. In other business news, LOW announced a beat on earnings on 28% same-store sales growth. However, they warned that DIY trends could fade away as consumers return to a more normal life. OMI also beat on the topline, but unlike Lowes, OMI came in almost a percent light on revenue. Oil patch names like HFC also missed on both top and bottom lines. In the tech space, IRM missed badly on earnings (over 55%) on an almost 4% revenue miss.

Related to the virus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 28,897,718 confirmed cases and deaths have now passed half a million at 514,996 deaths. As mentioned, the number of new cases is starting to level-out and uptick at an average of 70,255 new cases per day. Oddly, deaths, which have always lagged, seem to be preceding this plateau and rose back up to 2,126 per day. With that backdrop, the White House said Tuesday that 2 million doses of the JNJ single-shot vaccine can be available next week, pending FDA approval. In addition, White House Press Sec. Psaki also said that states will now get 14.5 million doses/week (up from 8.6 million/week). President Biden also indicated that masks will be sent directly Americans.

Globally, the numbers rose to 112,739,376 confirmed cases and the confirmed deaths are now at 2,498,495 deaths. However, the trends have good until very recently. The world’s average of new cases has up-ticked slightly to 369,614 per day. Mortality also ticked up, now at 9,522 new deaths per day. In Europe, Ireland extended their lockdown through April 5. Meanwhile, Scotland is leaving lockdown and returning to a multi-tier system of restrictions, with the youngest children returning to in-person school next week. In Spain, the government said it will quadruple the number of available doses during Q2 relative to now. And in China, another Chinese vaccine maker has filed for Chinese approval after their tests show 65% efficacy (15% less effective than the first Chinese vaccine claimed).

Overnight, the few Asian markets were strongly in the red. Hong Kong (-2.99%), South Korea (-2.45%), and Shenzhen (-2.03%) led the way lower, but losses were broad and significant. However, in Europe, markets are almost all modestly green as of mid-day. The FTSE (+0.05%), and CAC (+0.13%) are flat while the DAX (+0.74%) is leading the way higher. As of 7:30 am, it appears the US is following Europe up this morning. The DIA is implying a +0.10% open, the SPY implying a +0.19% open, and the QQQ implying a +0.22% open at this hour.

Major economic news for Wednesday includes Jan. New Home Sales (10 am), Crude Oil Inventories (10:30 am), and 3 Fed speakers (Chair Powell testifies at 10 am, Brainard at 10:30 am, and Clarida at 1 pm). Major earnings reports on the day include BHC, CQP, LNG, CLH, ELAN, ETR, EXC, HFC, HZNP, IRM, LOW, ODP, OSTK, OMI, PSN, PNW, PPD, RY, SBGI, SITE, TEN, TJX, and VRT before the open. Then after the close AMED, ANSS, APA, BKNG, BKD, CW, FNF, GEF, ICLR, LB, VAC, NTAP, NVDA, PARR, CNXN, RYI, SPTN, STN, FTI, TPC, UNVR, and VIAC report.

With little new data and Fed Chair Powell unlikely to say anything today that he didn’t say yesterday, it will be earnings reports that are likely to fill the minds of traders today. Meanwhile, the midwest (and TX in particular) are getting back to pandemic normal life as political and business fallout gathers steam. The chop and pullback of the last week were punctuated Tuesday with a high volume major intraday reversal. Is that the capitulation of bears on the pullback? I’m not sure, but it did signal the bulls are ready to jump back in at any time.

That said, the trend remains bearish on a daily level and we have to respect the trend until it is broken. Remember that knife-catching is not a long-term trading career path. Trading is a marathon, not a sprint. Achieve your ambitions in the long-run by hitting short-term goals over and over again. Forget about predicting reversals or breakouts. Just follow the trend, respect support and resistance, and don’t chase the moves you missed. Book your trade goals when you can and stick with your discipline. If you keep locking in your profits when you have them, you’ll never go bust.

Swing Trade Ideas for your consideration and watchlist: PENN, FCX, MLM, M, PINS, SNAP, APPS. 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

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

BA Bad News and Relief Bill Rush Starts

February 22, 2021 by Ed Carter

Markets gapped up Friday, ground sideways the rest of the morning, sold off at lunchtime and then ground sideways the rest of the day. The left the 3 major indices with black candles on modest moves for the day. The SPY and QQQ printed Dark Cloud Cover type candles. On the day SPY was down 0.18%, DIA was down 0.20%, and QQQ was down 0.44%. The VXX fell over 3.5% to 15.10 and T2122 rose back into the overbought territory at 85.59. 10-year bond yields shot up again to 1.34% and Oil (WTI) fell 2.5% to $59.01/barrel.

Following on the GME hearings last week, on Friday Democratic Rep. Waters (who chairs the Financial Services Committee) said she is considering putting forward a tax on financial transactions in an effort to reduce transactions and curb high-frequency activity. The idea died on the vine a decade ago as major financial industry lobbies all opposed it. However, it has long been the dream idea of some liberals. During his campaign, President Biden said he supported the idea, but put forth no details or plans.

BA suffered another rough weekend as two US events impacted the same model plane. The 777-200 plane had cowling blow off during takeoff in one event and an engine blew up mid-flight (near Denver) in the other. The FAA has now ordered an inspection of all model 777-200 that have Pratt-Whitney engines to be inspected. The only US airline that flies that model is UAL and the airline took 24 planes out of service Sunday evening to facilitate the inspections. Separately, a BA 747-400 cargo plane also suffered an engine explosion shortly after takeoff that rained debris on a Dutch town on a flight bound for the US.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,765,423 confirmed cases and deaths have now passed half a million at 511,133 deaths. However, the number of new cases continues to fall quickly and is back down to the October level as the average new cases are now 69,002 new cases per day. However, deaths remain at a stubbornly high level of 1,983 per day.

Globally, the numbers rose to 112,027,570 confirmed cases and the confirmed deaths are now at 2,479,313 deaths. However, the trends are good. The world’s average of new cases continues to fall quickly and is now down to 360,270 per day. Mortality lags but is also falling, now down to 9,398 new deaths per day. The number of new cases is rising slightly in Germany, which stands out because of the precipitous fall elsewhere. However, in the UK, PM Johnson announced a roadmap to reopening by removing restrictions step-by-step.

Overnight, the few Asian markets were mostly red. Shenzhen (-2.11%), India (-2.04%), and Shanghai (-1.45%) led the way lower. Japan (+0.46%) and Taiwain (+0.42%) were notable holdouts on the bullish side. The same is true so far today in Europe, where the only green at this point is Athens (+0.84%) and Norway (+0.77%). At mid-day, the FTSE (-0.63%), Dax (-0.58%), and CAC (-0.42%) are typical of the continent. As of 7:30am, it appears the US is following the rest of the world lower. The DIA is implying a -0.53% open, the SPY implying a -0.73% open, and the QQQ implying a -1.30% open at this hour.

There is no major economic news for Monday. Major earnings reports on the day include CTB, DISCA, DISH, KBR, and VTRS before the open. Then after the close, AL, CDNS, CVI, FANG, GFL. IR, MRO, OXY, OKE, PANW, PRIM, RSG, RIG, and WMB report.

With no data and not many major earnings reports to start the week, it looks like we will follow Europe and Asia lower. congress is bound to make some news this week as they dash to approve the Democratic or Biden Administration relief bill. Meanwhile, the midwest (and TX in particular) are trying to get back to pandemic normal life while repairing broken pipes, cleaning water damage, and in many cases dealing with electric bills in the thousands. (Many Texans pay based on power company market costs, and those skyrocketed in the last 10 days. This caused many to be without power while at the same time others had power but were paying exorbitant prices.) The sideways chop (consolidation) of the last 2 weeks has taken a toll on many in the market. However, in the longer view, bulls still have the upper hand and we remain less than a percent from all-time highs. So, beware of volatility (gap and fade we’ve seen recently), but stay on the right side of the trend until it is broken.

Remember that trading is a marathon, not a sprint. You don’t have to trade every day and don’t try to get rich quick. Do it in the long-run by hitting goals over and over again. Forget about predicting reversals or breakouts. Neither catching knives nor chasing trains is not a good career path. Just follow the trend, respect support and resistance, and don’t chase the moves you missed. Book your trade goals when you can and stick to your discipline. If you keep locking in your profits when you have them, you’ll never go bust.

Swing Trade Ideas for your consideration and watchlist: C, PFG, ADS, HCA, F, FB, CVS, HOME, URI, DFS, MGM, GE, ALLY. 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

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

Order Flow Payment and UBER News

February 19, 2021 by Ed Carter

Markets gapped down significantly, largely in reaction to an unexpectedly bad Weekly Initial Jobless Claims number and a week forecast during the WMT report. However, after the gap, all 3 major indices slowly ground back toward the prior candle. This left all three in white-bodied indecisive Doji or Spinning Top type candles. On the day, SPY lost 0.43%, DIA lost 0.33%, and QQQ lost 0.44%. The VXX was up slightly to 15.66 and T2122 fall back to mid-range at 56.00. 10-year bond yields gained slightly to 1.297% and Oil (WTI) fell almost 2% to $60.08/barrel.

The Congressional hearings Thursday made for a tough day for both Robinhood and Citadel who got blasted by House members on both sides of the political aisle. Citadel was left defending “payment for order flow” while Robinhood CEO Tenev had to defend that business model as well as not allowing customers to buy GME. However, Reddit and Reddit Trader Keith Gill (Roaring Kitty) received praise from both sides. There were also a couple of revelations, such as that over 50% of Robinhood’s revenue comes from payments for order flow (selling customer orders to the highest bidder). In addition, it was disclosed that Citadel is the broker’s largest counter-party, buying most of the orders that Robinhood sells. It also came out that on January 28, Robinhood was nearly out of business when the clearinghouse demanded $3 billion in posted capital and the company could not come up with that amount. (They stayed afloat by negotiating the clearinghouse down to $1.4 billion, which the company could raise from investors.)

The UK version of the Supreme Court has ruled unanimously that UBER drivers are employees, not independent contractors. UBER now has to go back to the country’s employment court to determine what back compensation their workers are due. The threat is that Europe and even US courts could take the same position in the future. However, this court ruling deals a blow to not only to UBER, but to all “gig economy” based companies that have been relying on contractors to reduce costs by transferring responsibilities to workers.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,523,524 confirmed cases and deaths have now passed half a million at 505,309 deaths. However, the number of new cases continues to fall quickly and is back down to the October level as the average new cases are now 73,858 new cases per day. However, deaths remain at a stubbornly high level of 2,075 per day. Mid-day on Thursday, WMT’s CEO told CNBC that his customers need another round of stimulus checks and need it quickly. Then in the evening, Treasury Sec. Yellen made her push for a big package of relief, fast in interviews Thursday evening. Along those lines, House Democrats hope to pass their version of the $1.9 trillion relief package next week according to Speaker Pelosi. It appears they will be doing it without GOP support.

Globally, the numbers rose to 110,929,475 confirmed cases and the confirmed deaths are now at 2,454,516 deaths. However, the trends are good. The world’s average of new cases continues to fall quickly and is now down to 361,898 per day. Mortality lags but is also falling, now down to 9,976 new deaths per day. UK PM Johnson has called for the G7 Countries to work together as a coalition to be able to develop vaccines and treatments to pathogens (like the Covid variants) and test them within 100 days. This would be about 3 times faster than the first covid vaccines were rolled out. French President Macron then urged the G7 to donate 4%-5% of their available vaccine doses to developing countries.

Overnight, the few Asian markets were mixed. Australia (-1.34%) and Japan (-0.72%) led the losses, while Shenzhen (+0.75%) and South Korea (+0.68%) led the gains. In Europe, markets are also mostly green so far today. The FTSE (+0.10%) is just above flat, but the CAC (+0.63%) and DAX (+0.52%) are moderately green at mid-day. As of 7:30 am, US Futures are pointing toward a positive open. The DIA is implying a +0.26% open, the SPY implying +0.36%, and the QQQ implying a +0.53% open at this hour.

The major economic news for Friday is limited to Mfg. PMI and Services PMI (both at 9:45 am), Jan. Existing Home Sales (10 am) and a Fed speaker (Rosengren at 11 am). Major earnings reports on the day include DE, DTE, ITT, MGA, and POR before the open. There are no major earnings reports after the close.

With modest data, limited earnings reports, and Congress still not back in DC, the market does not have a clear driver for the day. It is Friday and with the winter storm projected to move into New York City today, we may see some of the big players head home early. The sideways and lower trading of this week has taken a toll. However, the bulls remain in control of the trend in a broader sense. So, beware of volatility (gap and fade we’ve seen recently) and get positioned for the weekend.

Forget about predicting. Knife-catching is not a good career path. Just follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Book your trade goals when you can and stick to your discipline. If you keep locking in your profits when you have them, you’ll never go bust. Remember that trading is a marathon, not a sprint. You don’t have to trade every day and don’t try to get rich quick. Do it in the long-run by hitting goals over and over again. Also, remember it’s Friday, so don’t forget to pay yourself.

Swing Trade Ideas for your consideration and watchlist: DRI, SMAR, DOCU, H, MGM, KO, SAVE, CLSK, IQ, MU. 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

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

Much News Today Including GME Hearing

February 18, 2021 by Ed Carter

Markets gapped down about a third of a percent in the large-caps and about one percent in the QQQ on Wednesday. However, after a little morning vacillation, the bulls stepped in and tried to drive price back up. This left is with cap-down white candles across the board. Of the 3, only the QQQ printed a candle signal and that was an indecisive Spinning Top. On the day, SPY (+0.02%) was flat, DIA (+0.32%) was up and QQQ (-0.48%) was down. VXX fell 2% to 15.58 and T2122 fell out of the overbought territory down to 71.83. 10-year bond yields fell a bit to 1.282% and Oil (WTI) rose a dollar to $61.14/barrel on the back of the winter storm demand.

The Dow was buoyed by VZ and CV, which saw major moves on reports that BRKB had taken a major stake in Q4. (Everybody wants to follow Buffett.) The afternoon rally was helped by FOMC minutes that showed that an easy money policy will be in place for longer than many expected. The group’s focus was clearly on getting employment back to pre-pandemic levels regardless of the cost. Retail Sales in January also surged 5.3%, blowing away the consensus estimate of +1.2%. This seems to signal that people are spending their December stimulus checks and just the opposite of the FOMC, indicate a potential for inflation.

The key players in the recent “social media short squeeze” will be testifying today in front of the House Financial Services Committee. The CEOs of Reddit, Robinhood, Melvin Capital, Citadel and a key Reddit trade known as “Roaring Kitty” will all testify about GME stock price manipulation. Conspicuously absent from the list are major brokerages who also temporarily banned the shorting or trading of GME stock, such as SCHW, eTrade, Fidelity, IBKR, etc. So, perhaps they will have their turn in the barrel in a different hearing.

Related to the virus, US infections continue the recent trend of decreasing new cases. The totals have risen to 28,453,526 confirmed cases and deaths have now passed half a million at 502,544 deaths. However, the number of new cases continues to fall quickly and is back down to the October level as the average number of new cases are now 79,112 new cases per day. Unfortunately, deaths remain stubbornly high at a level of 2,145 per day. Related to this, the ports of Los Angeles and Long Beach (the two largest US ports) have begun diverting container ships to alternate ports because over 800 post workers are out sick with Covid. Unload times at these ports have risen from less than 3 days to more than 8 days as stretched staff have seen a major increase in traffic since last fall. This will add cost and likely delays to incoming freight.

Globally, the numbers rose to 110,520,588 confirmed cases and the confirmed deaths are now at 2,442,946 deaths. However, the trends are good. The world’s average of new cases continues to fall quickly and is now down to 367,784 per day. Mortality lags but is also falling, now down to 10,239 new deaths per day. In England, the government reported that new infections have dropped by two-thirds from the peak. However, in some “bad actor” news, Belgium reported that they have caught 184,000 violations of pandemic rules since last March (on a country of 11.5 million), but only 97,000 people were issued fines.

Overnight, the few Asian markets were mostly red. Hong Kong (-1.58%) and Malaysia (-1.22%) led the losses. However, there were a couple of holdouts with Shanghai (+0.55%) and Taiwan (+0.38%) closing higher. In Europe, markets are also mostly red so far today. The FTSE (-0.70%) and CAC (-0.22%) are down, but the DAX (+0.13%) is staying just above flat. As of 7:30 am, US Futures are pointing toward a lower open. The DIA is implying a -0.31% open, the SPY implying -0.40%, and the QQQ implying a -0.74% open at this hour.

The major economic news for Thursday includes Philly Fed Mfg. Index, Jan. Building Permits, Jan. Import/Export Index, Jan. Housing Starts, and Weekly Initial Jobless Claims (all at 8:30 am), Crude Oil Inventories (11 am), and a couple Fed speakers (Brainard at 8 am and Bostic at 10 am). Major earnings reports on the day include AAWW, GOLD, BLMN, CFX, EPAM, FE, HRL, KELYA, LKQ, MAR, NEM, OMC, RS, SRE, SO, SYNH, TECK, TPH, VTR, VC, WAB, WMT, and WM before the open. Then after the close, COLD, AMN, AMAT, ATR, ANET, CNDT, ED, CPRT, EBS, KEYS, QDEL, RXT, ROKU, TDS, TXRH, and USM report.

With a lot of economic news out this morning, especially Jobless Claims and Housing data, markets do not seem optimistic. The winter storm also continues to weigh on sentiment in much of the country. However, the bulls remain in control of the trend as the bears have not been able to get enough traction for even a small pullback. Still, there may be market-related news out of the Congressional Hearing today that may shake things up again.

Forget about predicting. Knife-catching is not a good career path. Just follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Book your trade goals when you can and stick to your discipline. If you keep locking in your profits when you have them, you’ll never go bust. Remember that trading is a marathon, not a sprint. Don’t try to get rich quick. Do it in the long-run by hitting goals over and over again.

Swing Trade Ideas for your consideration and watchlist: DXCM, AIG, PFE, CB, SNAP, PENN, C, KR, UNG. 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

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