Daily Trade Ideas Public Archives - Page 90 of 245

Q4 GDP and Earnings On Tap

January 28, 2021 by Ed Carter

Markets gapped down Wednesday, on the heels of an ugly BA miss and the social media mob driving stocks in massive swings (like AMC which was up 300% in pre-market). After the open stocks then did some roller-coaster swings the rest of the morning. However, the afternoon saw another strong selloff that the Fed decision, statement, and press conference did nothing to slow down. All 3 major indices put in large, ugly black candles, but at least a rally the last half hour kept us from closing on the lows. On the say SPY lost 2.44%, DIA lost 1.98%, and QQQ lost 2.79%. The VXX gained almost 18% to close at 20.25 and T2122 (4-week New High/Low Ratio) fell down near the oversold territory at 23.76. 10-year bond yields fell sharply as traders chased safety, closing at 1.014% and Oil (WTI) was down slightly to $52.66/barrel.

During the afternoon, the Fed decided to hold rates near zero and Fed Chair Powell said FOMC would not taper bond purchases in the foreseeable future while reiterating that any talk of tapering is premature. He did say there was a potential for “transient inflation” and that what is really driving market (asset) prices isn’t monetary policy…it’s about expectations around vaccines and fiscal policy (stimulus). In that vein, House and Senate Majority Leaders (Democrats) seem to be giving up on President Biden’s desire for a bipartisan stimulus package, instead saying they are preparing to pass the Covid Relief bill without the support of any Republicans. While they say they want to win Republican support, Senator Schumer and Representative Hoyer said they believe they can get it done either way.

After the close, AAPL reported blowout earnings. It booked more than $111 billion in revenue for the 4^th Quarter and beat earnings estimates by 19% ($1.68 vs $1.41 est). FB also beat on earnings, but did warn of potential impacts from the AAPL privacy changes impacting FB ad targeting and thus ad sales. TSLA beat on revenue, but missed earnings, but it did still report a profitable quarter for the sixth straight time. However, they did say they expect 50% average annual growth in deliveries going forward.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 26,166,423 confirmed cases and 439,521 deaths. However, the number of new cases continues the recent trend of falling as the average new cases are now 166,164 new cases per day. Still, deaths remain stubbornly high at 3,370 per day. Dr. Fauci told reporters that current vaccines (PFE and MRNA) can be easily adapted and/or augmented with booster shots for new virus variants as needed. However, even as-is, he expects the vaccines to provide significant protection against current known variants.

Globally, the numbers rose to 101,534,385 confirmed cases and the confirmed deaths are now at 2,186,710 deaths. In good news, the world’s average new cases is down again to 573,783 per day, but deaths remain high at 14,272 new deaths per day. In the UK, the government says the latest lockdown is working and the country has seen positive test rates fall by 45%. However, two regions (London and the East-midlands) still are seeing a rising number of new cases. In Germany, the Health Minister told the public they should expect at least another 10 weeks of vaccine shortages.

Overnight, Asian markets were red and down significantly, across the board. Shenzhen (-2.82%), Hong Kong (-2.55%), and Indonesia (-2.12%) paced the losers, but no Asian exchange lost less than 1%. In Europe, markets are mixed, but lean to the downside so far today. Among the big 3 bourses, the FTSE (-0.76%) and DAX (-0.44%) are lower while the CAC (+0.09%) is just on the green side of flat. As of 7:30 am, US Futures are pointing to a mixed and modest open. The DIA is implying +0.21%, the SPY implying +0.05%, and the QQQ implying -0.42% at this point (ahead of GDP).

The major economic news for Thursday includes Q4 GDP, Dec. Trade Balance, Weekly Initial Jobless Claims, and Dec. Retail Inventories (all at 8:30 am) and Dec. New Home Sales (10 am). Major earnings reports on the day include FLWS, AOS, ATI, ADS, MO, AAL, AIT, BC, CMCSA, DOV, DOW, FLEX, JBLU, MMC, MA, MKC, MCD, NOC, NUE, NVR, ORI, PNR, BPOP, PHM, RCI, SHW, LUV, SWK, STM, TROW, TSCO, VLO, WRK, and XEL before the open. Then after the close, AJG, CE, EMN, JNPR, MDLZ, OLN, PFG, RMD, RHI, SIGI, SWKS, X, V, and WDC all report.

It looks like Mr. Market may be waiting on the Q4 GDP print before reacting this morning. That and a slew of earnings news are likely to be the drivers today. However, “social media-driven massive moves” is not only pushing around individual stocks in unheard of ways, it is also introducing major volatility and fear of systemic reaction from the big boys (who don’t like their short positions being attacked by non- Wall Streeters). So, exercise some caution today until the direction is clear and be wary of volatility.

As always, follow the trend, respect support and resistance, and don’t chase the moves you missed. Lock in your profits when you achieve trade goals and stick to your discipline. Remember, our job as traders is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process.

Swing Trade Ideas for your consideration and watchlist: No trade ideas today. 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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Bears Shrug Off Strong Earnings

January 27, 2021 by Ed Carter

Markets gapped up slightly on Tuesday, but then ground sideways with a slight bearish lean. This action resulted in Dark Cloud Cover candles in the SPY and DIA and a Doji in the QQQ (which also closed at yet another all-time high close). However, overall, it was a flat day in which SPY lost 0.16%, DIA lost 0.08%, and QQQ gained 0.15%. VXX rose less than a percent to 17.20 and T2122 fell back further into the mid-range at 63.01. 10-year bond yields were flat at 1.033% and Oil (WTI) was also flat at $52.75/barrel.

After the close, AMD and MSFT both posted beats on both the top and bottom line. In fact, AMD revenue was up 45% for the year in 2020 and said they expect 37% revenue growth in 2021. For its part, MSFT revenue rose 17% on an annual basis (up from 12% the prior quarter). Meanwhile, SBUX beat earnings estimates despite a 5% drop in same-store sales for the quarter as the company announced its COO is leaving to take a CEO role elsewhere. However, the company missed on the earnings line.

Weekly mortgage demand fell again by 4%, but remain 16% higher than a year ago. This comes as 30-year fixed rates rose from 2.92% last week to 2.95% in the most recent week. However, the housing boom price inflation is being reflected in the size of mortgages. This is reflected in the average new loan amount being at a record $395,200.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 26,011,222 confirmed cases and 435,452 deaths. The number of new cases fell in 47 states again as the average new cases has fallen to 171,270 new cases, but deaths rose again and remain high at 3,417 per day. In fact, with 5 days left, January is already the deadliest month so far in terms of the virus. President Biden announced the purchase of 200 million more doses of vaccine and set a goal of American life returning to normal by the end of summer. This new purchase includes 100 million doses from each PFE-BTNX and MRNA. In addition, the administration announced that next week the shipments to states will increase from 8.6 million doses/week to 10 million (a 16% increase), to be distributed based on state populations. Finally, JNJ says it is optimistic that Phase 3 trial result data on their own vaccine will be available to be submitted next week.

Globally, the numbers rose to 100,929,027 confirmed cases and the confirmed deaths are now at 2,169,680 deaths. In good news, the world’s average number of new cases is down again to 585,431 per day, but deaths remain high at 14,331 new deaths per day. Ireland extended its national lockdown until March 5. In Germany, the capital city of Berlin will now require two tests instead of one for everyone being tested in an effort to detect new variants earlier and prevent the closure of any more hospitals. In an effort to prevent a situation like the AZN vs EU tension over vaccine delivery, French drugmaker Sanofi has struck a deal to license the PFE-BTNX vaccine and will make 125 million doses of the vaccine exclusively for the EU.

Overnight, Asian markets were mixed on moderate moves. Japan (+0.31%), Shenzhen (+0.28%), and Taiwan (+0.27%) were among the winners. South Korea (-0.57%), Hong Kong (-0.32%), and Australia (-0.65%) were among the losers. India (-1.91%) was a outlier to the downside. In Europe, markets are strongly red across the board. The big 3 bourses show FTSE (-1.00%), DAX (-1.72%), and CAC (-1.27%) as of midday. At 7:45 am, US Futures are also pointing toward a significant gap down. The DIA is implying a -0.88% open, the SPY implying a -1.02% open, and the QQQ implying a -0.66% open.

The major economic news for Wednesday includes Dec. Durable Goods Orders (8:30 am), Crude Oil Inventories (10:30 am), FOMC Rate Decision and FOMC Statement (2 pm), and the FOMC Press Conf. (2:30 pm). Major earnings reports on the day include ABT, APH, ANTM, T, ADP, BX, BA, EAT, GLW, GD, HES, KNX, NDAQ, NSC, OSK, PGR, TEL, TDY, TXT, and VFC before the open. Then after the close, AMP, AAPL, AVT, CACI, CP, CCI, EW, FB, HOLX, LRCX, LSTR, LVS, LEVI, and MTH report.

Despite strong earnings from major players, markets seem poised to drop at the open, perhaps on profit-taking new all-time highs or maybe on fear over what the Fed will do. Regardless, watch your longs closely and be cautious chasing any new positions at the moment.

There will be another day and another trade. Don’t feel like you have to trade every day. That’s one of the benefits of trading. We can take a day off when conditions (or our mood) warrants. As always, follow the trend, respect support and resistance, and don’t chase the moves you missed. Lock in your profits when you achieve trade goals and stick to your discipline. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: AAOI, SIG, MJ, AG, FCEL, BLNK, SRNE, PLUG. You can find Rick’s review of those 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 Top the Agenda Today

January 26, 2021 by Ed Carter

The large-caps started the week not far on either side of flat, but he QQQ gapped 1% higher at the open. However, after the open, all 3 major indices ground sideways in an indecisive manner, while closing near the top of their range. This left the SPY and DIA printing Hammers (or Hanging Men depending on your perspective) with the QQQ printing a long-legged Doji with a bit more upper wick than a Hanging Man candle would have shown. However, that was another all-time high close for the SPY and QQQ. VXX gained over 4% to close at 17.08 and T2122 was down just slightly, but remains near Overbought Territory at 76.82. The 10-year bond yield was off a bit toe close at 1.031% and Oil (WTI) rose almost 1% to $52.78/barrel.

New Sec. of Treasury Yellen said Monday that she supported the idea of large tech companies paying a larger share of their revenues in taxes in the countries where they operate. This change from the previous administration’s approach was hailed by the French Finance Minister, who said he thought a global tax agreement for online businesses could be reached as soon as this Spring. Obviously, this would have major implications for the online giants like AMZN, GOOG, FB, AAPL, and any other multinational that has shifted revenue to a low-tax country to avoid taxes up to now

A new study by Moody’s Analytics finds that 18% of renters are significantly behind on their rent as of January 1. The average amount delinquent is $5,600 (4 months of rent plus late fees and utilities). While President Biden extended the moratorium on most evictions through the end of March, a huge reconning lies just ahead. The President’s proposed relief plan includes $25 billion for renters and landlords. However, that is less than 50% of the $57.3 billion currently owed to landlords…and the stimulus plan is now being fought by Senate Republicans as being too expensive as-is. Obviously, this is major problem brewing for REITS, Real Estate ETFs, and sooner or later bank stocks.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 25,861,597 confirmed cases and 431,392 deaths. The number of new cases fell in 47 states again as the average new cases has fallen to 175,021 new cases, but deaths remain high at 3,238 per day. CA has lifted its statewide stay-at-home order, which will allow restaurants, gyms, and other high-density public businesses to reopen. Elsewhere, after days of strong pushback against his reiteration of a fall goal of 100 million vaccinations in his first 100 days in office, President Biden has now said the goal should be 1.5 million vaccinations per day.

Globally, the numbers rose to 100,359,319 confirmed cases and the confirmed deaths are now at 2,151,697 deaths. In good news, the world’s average new cases is down to 592,753 per day (the first time below 600k this year), but deaths remain high at just under 14,114 new deaths per day. Later today the UK is expected to announce new travel quarantine measures that will use hotels to lockdown travelers entering their country. In the Netherlands, a third night of riots, violence, and looting against curfews has led to more than 180 arrests. In Germany, the Health Minister came out in support of limits to exports of vaccines produced in the EU. This stems from disagreements with AZN, who says Europe’s first doses of the AZN vaccine will not arrive before the end of the first quarter, while other locales are already using the vaccine.

Overnight, Asian markets were mostly in the red. Hong Kong (-2.55%), South Korea (-2.14%), and Shenzhen (-1.98%) led the losses. Only Australia (+0.36%) and Thailand (+0.75%) managed to stay on the green side. In contrast, Europe is mostly strongly green so far today. The FTSE (+0.80%), DAX (+1.84%), and CAC (+1.26%) lead the way with only Portugal (-0.64%) and Denmark (-0.61%) on the red side of flat at this point in the day. As of 7:30 am, US Futures are pointing to a flat open. The DIA is implying a +0.20% open, the SPY implying a +0.08% open, and the QQQ implying a +0.04% open.

The major economic news for Tuesday is limited to Conf. Board Consumer Confidence (10 am). Major earnings reports include ALK, ADM, ALV, AXP, DHI, FCX, GE, IVZ, JNJ, LMT, MMM, NEE, NVS, PCAR, PII, PLD, RTX, ROK, VZ, and XRX all before the open. Then, after the close, AMD, BXP, CHRW, CNI, COF, EHC, MSFT, SLGN, SBUX, TXN, VAR, and WRB report.

With major earnings starting to roll (5 DIA components today), most eyes will be on the reports in the market this morning. Of course, the fight over what stimulus is needed and what is fiscally responsible may also take a good slice of Mr. Market’s mind. This comes as former President Trump’s second Impeachment Trial gets underway with the swearing-in of Senators today. We sit at all-time highs, with earnings uncertainty and tomorrow’s Fed decision still hanging overhead. So, be a little cautious and don’t get too giddy chasing the bulls.

As always, follow the trend, respect support and resistance, and don’t chase the moves you missed. There will be another trade. Lock in your profits when you achieve trade goals and stick to your discipline. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: XBI, MDRX, XLU, XLV, GTHX, MOMO, MPC, MRVL, OVID. You can find Rick’s review of those 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

Stimulus Wrangling As Virus a Bit Better

January 25, 2021 by Ed Carter

Markets gapped down on Friday, but then printed an indecisive Doji-like candle. On the day, SPY lost 0.35%, DIA lost 0.61%, and QQQ lost 0.29%. While all 3 major indices closed down, they are just off their all-time highs. The VXX gained a little over a percent to 16.40 and T2122 fell just outside of the overbought territory at 77.85. 10-year bond yields fell to 1.086% and Oil (WTI) load over 2% to close at $51.98/barrel. For the week, large-caps were up about 2% and the QQQ up 4.35%.

GOP opposition to the price of President Biden’s $1.9 trillion stimulus plan has started to gel. With Republicans saying that more stimulus may well not be needed and that they oppose any more government borrowing unless the expense is proven to be absolutely necessary. However, the head of the National Economic Council, Brian Deese, held a call with a bi-partisan group of moderate Senators (8 Democrat and 8 GOP) on Sunday to make the case for the bill. This comes as Bloomberg reports that rate traders are also very anxious to hear Fed Chair Powell forcefully reiterate that FOMC bond purchases will continue through 2021 without easing. (In other words, that stimulus will not let up for at least the coming year.)

In a stunning admission, new CDC Director Walensky told Fox News that the government does not know how many of doses the two Covid-19 vaccines the US has in hand. And if she doesn’t know, she can’t tell Governors, state health systems or individual hospitals how much they will get or when. This is part of what has led thus far to a hap-hazard and slow push for vaccinations. In a shot (pun intended) at the Trump Administration, she said this was the situation they were handed.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 25,702,125 confirmed cases and 429,490 deaths. The number of new cases fell in 47 states again as the average new cases has fallen to 173,753 new cases, but deaths remain high at 3,182 per day. MRK shut down its vaccine program after trial data showed poor efficacy. Elsewhere, President Biden has banned all incoming travelers who were recently in South Africa (to stop the new variant from that country). It also formalized the rescinding former-President Trump’s last-minute lifting of bans on travelers from Ireland, the UK, much of Europe, and Brazil.

Globally, the numbers rose to 99,839,954 confirmed cases and the confirmed deaths are now at 2,140,489 deaths. In good news, the world’s average new cases is down to 588,519 per day (the first time below 600k this year), but deaths remain high at just under 14,000 new deaths per day. Over the weekend, the US CDC and UK Health Ministry discussed new data that suggests that the “UK Variant” of the virus is not only 50% more contagious, but also could have a higher mortality rate. On Sunday, Israel banned international flighted (in/out) for at least a week. Austria also made N95-grade masks mandatory in public and a German hospital in Berlin has been quarantined after finding 14 patients and 6 staff members infected with the newer UK variant of the virus.

Overnight, Asian markets were mixed, but leaned slightly to the bullish side. Hong Kong (+2.41%) and South Korea (+2.18%) far outpaced all other exchanges. To the downside, Malaysia (-1.26%), India (-0.93%) and Indonesia (-0.77%) paced the losses. In Europe, markets are mixed, but lean heavily to the red side so far today. Among the big 3 bourses, the FTSE (-0.71%), DAX (-0.97%), and CAC (-0.90%) are all well down at mid-day. As of 7:30 am, US Futures are also mixed. The DIA is implying a down open of 0.29%, the SPY on the green side of flat implying +0.13%, and the QQQ implies a pop higher of 0.93%.

There is no major economic news for Monday. Major earnings reports include ALLY, FHN, HBAN, KSU, RF, and SLB before the open. Major earnings reports on the day include KMB before the open. Then after the close, AUY, FUL, STLD, and XLNX report.

We have a full week of economic data and heavy earnings highlighted by the Fed statement and press conference on Wednesday. On top of this, the wrangling over another relief package continues and markets may wait until they are sure they’ll get another hit of stimulus before taking major decisions. It looks like the bulls want to run in the high-tech space this morning, but large-caps seem undecided as of now. So, bear in mind we’re at all-time highs with an indecisive market.

Swing Trade Ideas for your consideration and watchlist: CLX, WOR, SYX, BYND, APPS, BE, AG. You can find Rick’s review of those 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 Virus Jitters Lead News

January 22, 2021 by Ed Carter

Once again markets opened higher and after a day of indecisive trading, all 3 major indices closed an another all-time high close. As mentioned, all 3 put in indecisive Doji-like candles on the session. For the day, DIA was flat at +0.03%, SPY gained just 0.09%, but QQQ made a nice gain of 0.80%. The VXX lost eight-tenths of a percent to 16.18 and T2122 fell slightly, but remains in the overbought territory at 84.30. 10-year bonds rose to 1.109% and Oil (WTI) fell half a percent to $53.05/barrel.

On the report front after the close, IBM revenue missed on a continued slide for the fourth consecutive quarter. However, INTC reported a beat on top and bottom lines on a massive 33% surge in PC sales in the quarter. On the downside, INTC’s incoming CEO committed to the company continuing to do their own chip manufacturing. This is problematic because Intel have suffered years of manufacturing delays and operate at a higher cost than other chipmakers (like TSM).

In International trade news, the data shows that China purchased only 58% of the US goods they agreed to buy as part of former-President Trump’s “Phase One” settlement to the trade war. Meanwhile, in the UK, more post-Brexit trade news came out. This time a report finds that UK–EU freight traffic has dropped by 30% (both directions) since the first of the year. At the same time, logistics costs have risen 50% versus one year ago. Among the major issues is the new red tape. For example, the number of truck shipments rejected by the UK at the border has risen 168% versus January 2020. In addition, there are constant virus testing procedures on both sides of the border which cause delays.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 25,196,086 confirmed cases and 420,285 deaths. The number of new cases fell in 46 states Thursday as the average new cases has fallen to 191,652 new cases, but deaths remain high (4,363 on Thursday) at 3,176 per day. However, this must be taken with a grain of sale as states are suspect. MO was found to have not been reporting the results of rapid tests. This would have raised that state’s numbers by 644 just in January. Elsewhere, new CDC director Walensky contradicted the prediction of her predecessor who had said every pharmacy would have at least one of the vaccines available by the end of February. However, in good news, LLY announced that the phase 3 trial of their monoclonal antibody combination treatment was found to lower risk of contracting COVID-19 by up to 80%. While good news, the treatment is likely too expensive and scarce to use as a replacement for vaccinations.

Globally, the numbers rose to 98,188,110 confirmed cases and the confirmed deaths are now at 2,102,744 deaths. As a reference, the world average new cases is down to 631,396 per day, but deaths remain high at 13,732 new deaths per day. The UK says it is considering total border closure to contain the spread of new variants of the virus. France will now require a negative PCR test from any travelers entering from other EU countries.

Overnight, Asian markets were mixed but mostly bearish. Hong Kong (-1.60%), Indonesia (-1.66%), and Thailand (-1.03%) led, but losses were widespread. The only green was in India (+1.69%) and Shenzhen (+0.28%). Meanwhile, in Europe, so far today markets are red across the board on reports that EU economic activity has fallen to a two-month low in January, coupled with potential border closures in the UK. Among the big 3 bourses, the FTSE (-0.78%), the DAX (-0.86%), and CAC (-1.12%) are all down at mid-day. However, the biggest moves are in the smaller countries/exchanges such as Athens (-2.44%). As of 7:30 am, US futures are following Europe and pointing toward a negative open. The DIA is implying a -0.83% open, while the SPY implies a -0.75% open, and the QQQ is implying a -0.62% open.

The major economic news for Friday includes Jan. Mfg. PMI and Jan. Services PMI (both at 9:45 am), Dec. Existing Home Sales (10 am), and Crude Oil Inventories (11 am). Major earnings reports include ALLY, FHN, HBAN, KSU, RF, and SLB before the open. There are no earnings reports after the close.

The markets look bearish this morning, perhaps pointing to some profit-taking at the highs or following Europe’s lead-based on virus-reduced economic activity. However, we do have a little more US data to come this morning, so don’t panic. Still, do bear in mind we are at all-time highs across the board and a bit extended to boot. The bottom line is that we need to be cautious at the highs, going into the weekend.

Lock in those profits when you achieve trade goals and stick with your discipline. As always, follow the trend, respect support and resistance, and don’t chase the moves you missed. There will be another trade. So, focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: VIAC, KSS, JMIA, OSTK, SOLO, MRNA, FUBO. You can find Rick’s review of those 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 Jobless Claims Lead

January 21, 2021 by Ed Carter

Markets gapped higher Wednesday on inauguration hopefulness. After the open, the bulls continued a steady sally the rest of the day. All 3 major indices closed at new all-time high closes and toward the top of their candles. On the day, the QQQ was up 2.33%, SPY was up 1.38%, and DIA closed up 0.79%. The VXX lost almost 2% to 16.31 and T2122 climbed deeper in the overbought territory at 92.82. 10-year bond yields fell to 1.077% and Oil (WTI) was up slightly to $53.24/barrel.

The Biden inauguration filled most of the day’s news cycle. However, the Democrats also took control of the Senate on the government front. Among the executive orders President Biden signed were the rejoining of the Paris Climate Agreement, rejoining the W.H.O., and a mask mandate covering all federal property and federally-regulated public transport. New White House Chief of Staff Klain also issued a memo freezing all last-minute changes former-President Trump tried to enact (such as dropping travel restrictions for Brazil and Europe).

A report from CINNO Research says that QCOM’s market share in China shrank over 48% year-on-year, due in large part to US sanctions on Huawei as well as Chinese smartphone makers looking to domestic sources as US-based companies were seen as unreliable due to the US Government intervention. QCOM’s Taiwanese competitor MediaTek was the big winner from this portion of the trade war.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 24,998,975 confirmed cases and 415,894 deaths. This comes as the average new cases has fallen to 197,041 new cases, but deaths remain high (Wed. had the 2^nd highest daily total at 4,374) at 3,140 per day. New CDC Director Walensky called for more testing and vaccinations on her first day. This came as NYC had to cancel 23,000 vaccination appointments due to a lack of vaccine.

Globally, the numbers rose to 97,403,475 confirmed cases and the confirmed deaths are now at 2,085,744 deaths. As a reference, the world average new cases is down to 645,184 per day, but deaths remain high at 13,600 new deaths per day. In some great news for those who had worries, two new studies just published show that while the UK and South African mutations of Covid do evade some of the immunity provided by the PFE and MRNA vaccines, they do not evade all of the protection from the vaccine. In fact, enough of the immunity remains that the studies claim the vaccines do provide protection from those variants.

Overnight, Asian markets were mixed, but leaned bullish. Shenzhen (+1.53%), South Korea (+1.49%), and Shanghai (+1.07%) led the gainers. On the downside, India (-0.37%) and Malaysia (-0.42%) were the most notable losses. Meanwhile, in Europe, so far today markets are also mixed, but mostly higher. Among the big 3 bourses, the FTSE +0.11% is flat, the DAX (+0.45%) is up, and the CAC (-0.17%) is down slightly. The biggest moves are in smaller exchanges such as Russia (-1.33%) and Belgium (+1.12%) at this point in the day. As of 7:30 am, US futures are pointing to a modestly higher open. The DIA is implying a +0.21% open, while the SPY implies a +0.26% open, and the QQQ is implying a +0.46% open.

The only major economic news for Thursday is Dec. Building Permits, Dec. Housing Starts, Weekly Initial Jobless Claims, and the Jan. Philly Fed Mfg. Index (all at 8:30 am). Major earnings reports include BKR, FITB, KEY, MTB, TAL, TRV, TFC, and UNP before the open. Then after the close, CSX, INTC, IBM, PPG, STX, and SIVB report.

The markets look slightly bullish this morning and that is certainly where the trend points. However, we need to bear in mind we are at all-time highs across the board and extended to boot. President Biden is expected to invoke the Defense Production Act to ramp up vaccine production and distribution today. While this won’t likely have a major market impact, it may affect specific tickers. The bottom line is that we need to be cautious getting too far out on the bull limb since the indices may need rest after yesterday’s pop.

As always, follow the trend, respect both support and resistance, and don’t chase the moves you have missed. Lock in those profits when you achieve trade goals and stick with your discipline. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: CSIQ, TJX, SIX, UAA, JBHT, STNE, ADT, KIRK, WING, NET, AQN. You can find Rick’s review of those 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

Inauguration and Earnings

January 20, 2021 by Ed Carter

Markets gapped up Tuesday after coming back from a long weekend and getting good pre-market earnings from the major banks, including a blow-out quarter from GS. After the gap up, the major indices traded indecisively with the QQQ being the strongest of the group. On the day, QQQ was up 1.46%, SPY up 0.79%, and DIA up 0.39%. VXX lost more than 2.75%, down to 16.63 and T2122 jumped back into the overbought territory at 85.41. 10-year bond yields were off slightly to 1.092% and Oil (WTI) gained 1.32% to close at $53.05/barrel.

During her confirmation hearings Tuesday afternoon, Treasury Sec. Nominee Yellen told Senators that the US can afford higher corporate taxes, but only after coming out of the Coronavirus slump and only in coordination with other countries. Specifically, she said tax rate action should be coordinated with other OECD to avoid “a destructive global race to the bottom on corporate taxation of multinationals.” She also defended the $1.9 trillion stimulus proposal by saying it offers the “most bang for the buck” in terms of relief for struggling households and businesses. Finally, she said the Biden Administration would support a strong and stable dollar (in direct contrast to the Trump who liked the idea of a weak dollar). The market did not respond to her testimony in any meaningful way.

Interest rates rose again in the last week (to a still-low 2.92% for a 30-year fixed mortgage), but remains almost a percent lower than it was one year ago. This came as new mortgage applications dropped almost 2% and refinance demand fell 5% on the week. It is worth noting that President Biden has proposed a $15,000 tax credit for first time home buyers to help bolster the home construction industry.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 24809,841 confirmed cases and 411,520 deaths. This comes as the average new cases have fallen to 204,228 new cases and deaths have flattened at 3,098 per day. The CDC reports that 13.6 million Americans have received at least one shot of the two required to date. This includes 2 million people who have received both doses. At the same time, distribution problems continue to plague the rollout. Several states are a few days from being out of the vaccine while more than 12 million doses are still in Federal hands, but not at the locations needed.

Globally, the numbers rose to 96,727,446 confirmed cases and the confirmed deaths are now at 2,068,303 deaths. As a reference, the world average new cases is down to 656,402 per day, but deaths remain high at over 13,460 new deaths per day. In Europe, a third cabinet member of the Portuguese government has tested positive in just this week. Germany tightened restrictions (now mandating N95 mask-wearing in public) and extended the national lockdown until at least mid-February. UK Home Sec. Patel told reporters its far too early to think about easing lockdown measures. In China, a new outbreak has the country scrambling, including building a 4,000-bed isolation camp in just a week. This happens as China is seeing its worst outbreak in months and tens of millions of Chinese people have been put on strict lockdown in the North of the country.

Overnight, Asian markets were mixed, but mostly higher. Shenzhen (+1.42%), Hong Kong (+1.08%), and Indonesia (+1.71%) led the gainers. Notable losses include Japan (-0.38%) and Taiwan (-0.45%). Meanwhile, in Europe, so far today markets are also mostly higher on modest moves. Among the big 3 bourses, the FTSE -0.03% is flat, the SAD (+0.47%) is up, and the CAC (+0.24%) is also positive. As of 7:30 am, US futures are pointing to a higher open. The DIA is implying a +0.15% open, while the SPY implies a +0.38% open, and the QQQ is implying a +0.82% open.

The only major economic news for Wednesday is President Biden’s Inauguration and Speech (Crude Oil Inventories Report moved to Friday). Major earnings reports on the day include ASML, BK, CFG, FAST, MS, PG, USB and UNH all before the open. Then, after the close, AA, DFS, KMI, PLXS, and UAL report.

Markets seem to like the new administration and continue to aim toward record highs. With 25,000 troops plus thousands of Federal Law Enforcement on hand, protests, riots, or attacks at inauguration events seem unlikely. So, the bulls continue to have the edge as we look to the open. (It doesn’t hurt that Tres. Sec. Nominee Yellen was not given much pushback when she called to big action on the stimulus plan that Mr. Market loves.)

So, look for a bullish start to the day. As always, follow trend, respect both support and resistance, and don’t chase the moves you have missed. Lock in those profits when you achieve trade goals and stick with your discipline. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: A technical snafu means no Trade Ideas for Wednesday, but they are in the video 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

Bank Earnings and Better Forecasts

January 19, 2021 by Ed Carter

Markets gapped down Friday on some bad economic data (Dec. Retail Sales miss lower than expected Producer Price Index, and NY Empire State Mfg. Index much lower than expected. Then all the major indices put in indecisive candles for the session. The QQQ put in a black Spinning Top type candle while the DIA and SPY printed Dojis. On the day, SPY lost 0.73%, DIA lost 0.62%, and QQQ lost 0.79%. The VXX gained 2.5% to 17.11 and T2122 fell back into the mid-range at 59.70. 10-year bond yields sold off strongly as traders bought into safety, ending at 1.087% and Oil (WTI) fell almost 3% to $52.04/barrel.

GS has raised their 2021 US Economic forecasts based on the $1.9 billion Biden stimulus plan. Among the changes are an increase in economic expansion forecast to 6.6% (vs. 6.4% previously) and a reduction of unemployment forecast down to 4.5% (vs. 4.8% previously). Lastly, GS now says that disposable income will increase 4.5% (vs. 3.8% increase previously).

On Monday, China reported higher than expected growth for Q4 (6.5% vs. 6.1% est.). However, consumer spending for Dec. was lower than expected (4.6% vs. 5% in Nov.). That said, economists are estimating a slowdown of growth for the year 2021, reducing estimates from 8.4% to 7.4% for the coming year.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 24,626,441 confirmed cases and 408,623 deaths. This comes as the average number of new cases has fallen to 211,000 new cases and deaths have flattened at 3,326 per day. As usual, the President is out of step, trying to lift travel restrictions from Brazil, Europe, and the UK on his last day in office. President-elect Biden has said this move will be reversed Wed. at noon.

Globally, the numbers rose to 96,095,456 confirmed cases and the confirmed deaths are now at 2,051,742 deaths. As a reference, the world average new cases is down to 666,551 per day, but deaths remain high at over 13,600 new deaths per day. Israel hit another record number of new cases as its government is considering extending its national lockdown. In Germany, PM Merkel is meeting with state leaders to discuss a tighter set of restrictions, including mandatory N-95 masking by anyone in public. This comes as Germany announced it has discovered yet another mutation of the virus among 35 patients. Still, in hopeful news, the UK’s Minister for Vaccine Deployment said that national hopeful news, UK Minister for Vaccine Deployment said that restrictions in the UK could be gradually eased in March as the top 4 cohorts of the most vulnerable should have received vaccinations by then.

Overnight, Asian markets were mixed, but leaned mostly green. Hong Kong (+2.70%) and South Korea (+2.61%) led the gainers. Meanwhile, Shenzhen (-0.96%) and Shanghai (-0.86%) paced losing exchanges. In Europe, so far today markets are mixed but leaning green on modest moves. Among the big 3 bourses, the FTSE -0.05% in on the res side of flat, DAX (+0.23%) has a modest gain, and CAC (+0.01%) is just on the green side of flat. As of 7:30 am, US futures are pointing to a small gap higher. The DIA is implying a +0.59% open, while the SPY implies a +0.64% open, and the QQQ is implying a +0.79% open.

There is no major economic news for Tuesday. Major earnings reports on the day include BAC, CMA, GS, HAL, PETS, SCHW, and STT before the open. Then after the close, JBHT, NFLX, and ZION report.

With planned weekend protests at state capitols mostly failing to take place (give or take 25 armed protesters in Michigan), the market seems to be ready to start the week rested and hopeful for a transition to the Biden Administration. With 25,000 troops plus thousands of Federal Law Enforcement, as well as Iraq-style Red and Green zones fenced off, it would seem unlikely there will be any protests, riots, or disruptions to the inauguration. In fact, the new administration is already starting to work as new Sec. of Treasury Yellen is calling for action on the $1.9 trillion stimulus plan.

So, look for a bullish start to the short week. As always, follow trend, respect both support and resistance, and don’t chase the moves you have missed. Lock in those profits when you achieve trade goals and stick with your discipline. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas for Tuesday. 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

Bank Earnings and Stimulus Plan Details

January 15, 2021 by Ed Carter

On Thursday, Jobless Claims shot up unexpectedly to almost 1 million, but markets did not care. All three major indices opened flat, but then sold off a bit most of the day. As a result, the SPY and DIA both printed Bearish Engulfing candles, while the QQQ put in a black candle. On the day, DIA lost 0.19%, SPY lost 0.35%, and QQQ lost 0.53%. Interestingly, the IWM was up 2% and closed at an all-time high close. VXX gained just over a percent to 16.68 and T2122 fell slightly, but remains in the overbought territory at 89.97. 10-year bond yields spiked on expectations of the Biden stimulus plan closing a 1.129% and Oil (WTI) rose 1.5% to $52.72/barrel.

After hours, President-elect Biden released his $1.9 trillion stimulus plan. The plan includes another $1,400 direct payment (raising the December $600 to $2,000). It also calls for extending $400/week federal unemployment benefits through September, as well as raising the federal minimum wage to $15/hour. Other key points include $350 billion for state and local government aid, $170 billion aid for schools, $50 billion for Covid testing and $20 billion for vaccinations. One expected item that was missing was a $10,000 student loan forgiveness plan.

As he leaves office, President Trump continues to escalate tensions with China. This time by adding more Chinese companies to the federal blacklist (prohibited from doing business in the US and from US investment) including the largest Chinese smartphone maker Xiaomi and massive oil company CNOOC. Some tariffs have been in place as of January 1^st, impacting things such as the price of computer graphics cards. Oxford University estimates the impact of the trade war will be about $1.6 trillion over the next 5 years, but did not break down the split between the world’s two largest economies. Reuters did report that it may result in up to 732,000 fewer US jobs being created by 2022.

Related to the virus itself, US infections remain very high, but may show signs of easing just a bit. The totals have risen to 23,848,410 confirmed cases and 397,994 deaths. This comes as we average just over 243,000 new cases and just over 3,400 deaths per day. (Extremely high, but less than just a few days ago.) In addition, in an effort to ramp up vaccinations, baseball stadiums and convention centers are being transformed into large-scale vaccination centers across the country. President-elect Biden has called for a doubling of the pace (we currently give about 500,000 shots per day and he wants 100 million in 100 days).

Globally, the numbers rose to 93,637,684 confirmed cases and the world has now broken the 2 million death mark as confirmed deaths are now at 2,004,815 deaths. As a reference, the world is averaging 715,000 new cases and over 13,500 new deaths per day. Ireland reports that half of its total cases have come in the last 2 weeks. While the number is a drop in the bucket relative to the US, that trend should be alarming. France imposed new travel restrictions. German PM Merkel proposed another total national lockdown (they are already in a partial one), but is being fought by German states and business groups. In Asia, perhaps just coincidentally, China reported its first COVID-19 death in 5 months and a renewed outbreak in the Northwest of the country, on the same day WHO experts arrived in Wuhan to investigate the virus source.

Overnight, Asian markets were mixed but leaned to the red side. Shenzhen (+0.27%) and Shanghai (+0.27%) again paced gainers. Meanwhile, South Korea (-2.03%), India (-1.10%) and Thailand (-1.11%) led the losses. In Europe, so far today markets are red across the board. Among the big 3 bourses, the FTSE -0.90%), DAX (-1.05%), and CAC (-1.14%) are all leading the way lower, but losses are over three-fourths of a percent across the continent. As of 7:30 am, US futures are down slightly as well. The DIA is implying a -0.41% open, while the SPY implies a -0.32% open, and the QQQ is flat, implying a -0.06% open.

The major economic news for Friday includes Dec. Retail Sales, Dec. PPI, and NY Fed Empire State Mfg. Index (all at 8:30 am), Dec. Industrial Production (9:15 am), and Nov. Business Inventories and Mich. Consumer Sentiment (both at 10 am). Major earnings reports on the day include C, JPM, PNC, and WFC before the open. There are no major earnings reports after the close.

As we head into a long weekend and with the FBI reporting warnings of more pro-Trump attacks possible in all 50 state capitols as well as 3 serious threats to the US Capitol, do not be surprised to see hedging or profit-taking action Friday. 3 days is a long time to hold much risk in this kind of environment. Besides, it’s Friday…and Friday is payday. So, don’t forget to take some money off and pay yourself.

Lock in those profits (base hits are the way we build consistency) and stick with your discipline. As always, follow the trend, respect both support and resistance, and don’t chase the moves you have missed. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a long-term game. We don’t have to try to get rich every day.

Swing Trade Ideas for your consideration and watchlist: GILD, MPC, FUBO, INSP, XBI, OSTK, PSX. 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

Jobless Claims and Biden Stimulus Plan

January 14, 2021 by Ed Carter

Markets opened flat and then printed indecisive (Doji or Spinning Top type candles). The QQQ even formed a sort of “Morning Star type” signal, although the wicks are too large to meet the technical definition. On the day, the SPY (+0.25%) was up, the DIA (-0.04%) on the red side of flat, and the QQQ (+0.68%) closed higher. The VXX was down to 16.49 and T2122 (4-week New High/Low Ratio) rose higher into overbought territory at 90.91. 10-year bond yields fell for the first time this year to 1.095% and Oil (WTI) pulled back half a percent to $52.91/barrel.

After the close, Congress impeached the President for a second time with 10 GOP members voting with all Democrats to call for an impeachment trial. This vote came as 7,000 National Guard troops (of 20,000 expected) and another 1,500 Federal Law Enforcement personnel had already occupied the Capitol because the FBI reported 3 credible threats of terrorism (dated 1-16 through 1-20) targeting those buildings and officials, presumably around the Inauguration event.

The US Budget Deficit grew 61% in December to $144 billion. Oddly, that number was much better than the $200 billion deficit for the month that was expected. In other good news, Crude Oil Inventories came in a million barrels lower than expected, declining 3.25 million barrels. In not-so-good news, Fed member Brainard reported that workers in the bottom quartile of salary still has an unemployment rate above 20%.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 23,616,345 confirmed cases and 393,928 deaths. This comes as we average just over 253,000 new cases and just over 3,400 deaths per day. JNJ reported after the close that their one-shot vaccine is showing promising results from a tiny set (57) or early-stage study participants. However, the company also acknowledged a mfg. delay that has put them behind schedule on production of the vaccine (pre-producing in hope it will be approved later). Meanwhile, Ohio researchers have identified two new US-originating mutations of COVID-19, one of which (dubbed the “Columbus Strain”) is similar to and as contagious as the UK variant.

Globally, the numbers rose to 92,891,624 confirmed cases and the confirmed deaths are now at 1,989,396 deaths. As a reference, the world is averaging 733,000 new cases and over 13,400 new deaths per day. A study out of the UK has found that if you catch COVID-19 and recover, your body has approximately 5 months of immunity, but not lifetime resistance. In other bad news, one of the Chinese vaccines from Sinovac Biotech was found to be only 50% effective in Brazilian trials (versus the 78% effectiveness the company had claimed from Chinese trials). In Japan, PM Suga declared a state of emergency for 7 additional regions of the country. And in the UK, Health Sec. Hancock is now considering putting COVID-19 patients into hotels to ease capacity pressure on the NHS. However, while it would surely help make space, that measure would not help any personnel, material or equipment capacity issues. And in Germany, the government tightened inbound travel restrictions again today, specifically trying to stop the UK and South African mutations of the virus. This after reporting that German 2020 GDP had contracted by 5%.

Overnight, Asian markets were mixed yet again. Shenzhen (-1.39%) and Shanghai (-0.91%) again paced the losers. Meanwhile, Hong Kong (+0.93%) and Japan (+0.85%) led gainers. European markets are leaning to the green side so far today. Among the big 3 bourses, the FTSE (+0.73%), DAX (+0.20%), and CAC (+0.10%) are all positive at mid-day. As of 7:30 am, US futures are flat. The biggest mover is the DIA, which is implying a +0.27% open, while the SPY implies a +0.14% open, and the QQQ implies a -0.06% open.

The major economic news for Thursday includes Dec. Import/Exports and Weekly Initial jobless Claims (both at 8:30 am) and 3 Fed Speakers (Bostic at 11 am, Chair Powell at 12:30 pm, and Kaplan at 1 pm). The other event that could be caused major economic news is President-elect Biden will unveil his stimulus proposals after the close. (Sources have told reporters it will be in the $2 trillion price range.) Major earnings reports on the day include BLK, DAL, FRC, and TSM before the open. There are no major earnings reports after the close.

With all political drama done, for now, waiting for more economic news or on the outcome of additional threatened acts of insurrection may give the market pause. Also remember that Monday is a market holiday. So, there could be some hedging or profit-taking the next couple days in front ofth e long weekend. Again, we can look at the bright side of this sideways action helping work off over-extension.

As always, follow the trend, respect both support and resistance, and don’t chase the moves you have missed. Lock in those profits (base hits are the way we build consistency) and stick with your discipline. Focus on the overall market, the specific chart, and your own trading process. Remember, trading is a marathon, not a sprint.

Swing Trade Ideas for your consideration and watchlist: GBT, QCOM, CB, SPWR, MVIS, LLY, BKD, HUYA, NET. 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