On Thursday, markets opened higher again.  SPY gapped up 0.35%, DIA opened 0.10% higher, and QQQ gapped up 0.57%.  From there, SPY and QQQ followed-through with a rally that lasted until 12:50 p.m.  At that point, both had an afternoon rest before QQQ began to rally again at 2 p.m. and SPY followed at about 2:45 p.m.  However, both SPY and QQQ also took profits the last 30 minutes of the day.  At the same time, after its open, DIA just meandered sideways around that opening gap all day long.  This action gave us gap-up white bodied candles in the SPY and QQQ as well as a modestly gap-up Doji in the DIA.  SPY and QQQ did have smaller upper wicks on large white bodies.  All three major index ETFs are stretched above their T-line (8ema) now.  This happened on above-average volume in the DIA, average volume in the QQQ, and below-average volume in the SPY.

On the day, seven of the 10 sectors were green with Technology (+2.08%) way, way out front leading the gainers higher.  On the other side, Financial Services (-1.26%) and Communication Services (-1.07%) lagged far behind the other sectors.  At the same time, SPY gained 0.77%, DIA gained 0.04%, and QQQ gained 1.58%.  VXX dropped another 3.53% to close at 45.09 and T2122 fell but remained just inside of its overbought territory, closing at 80.80.  Meanwhile, 10-Year bond yields fell sharply to a still high 4.330% while Oil (WTI) rose 0.50% to close at $72.05 per barrel.  So, the day saw follow-through (especially in the tech area) to Wednesday’s post-election spike. The mega-cap DIA was torn between big profit-taking among financials and the pops from INTC (which is soon going bye-bye from that index), AMZN, AAPL, and MSFT.  Among the market’s big dogs TSLA (+2.90%), led NVDA (+2.25%) in dollar-volume traded although both were over $30 billion and less than $35 billion.  So, it was a lot closer than it normally is in terms of trading.  It is also worth noting that SPY, DIA, and QQQ all printed another new all-time high and another new all-time high close.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which were up slightly but also slightly better than expected at 221k (compared to a forecast of 223k and a prior week reading of 218k).  On the ongoing front, Weekly Continuing Jobless Claims came in higher than expected at 1,892k (versus a 1,880k forecast and the prior week’s 1,853k value). At the same time, Preliminary Q3 Nonfarm Productivity (Qtr.-on-Qtr.) was up but not as strong as predicted at +2.2% (compared to a +2.6% forecast and a Q2 reading of +2.1%).  Meanwhile, the Preliminary Q3 Unit Labor Costs were both down sharply but still far higher than anticipated at +1.9% (versus a forecast of +1.1% and a Q2 reading of +2.4%). Later, Sept. Consumer Credit came in DRAMATICALLY lower than predicted at $6.00 billion (less than half of the $12.20 billion forecast and down from August’s $7.64 billion number).  Then, after the close, the Fed Balance Sheet showed another decline, falling $19 billion on the week down to $6.994 trillion.

Prior to the Fed announcements, the ever attention-needy Trump camp leaked to CNN that the ex-President “would likely allow” the FOMC Chairman to serve out the rest of his term rather than firing him.  During his Press Conference, Fed Chair Powell said he gave one-word “No” answers indicating he would not resign, even if asked, and also that Presidents do not have the legal authority to fire a Fed Chairman. (However, it is worth noting that Chair Powell’s term ends in 2026.)

In Fed news, on Thursday, the Fed Interest Rate Decision was to cut rates 0.25% as expected.  This reduces the Fed Funds rate to 4.75% – 5.00%.  The vote for this cut was unanimous. In its statement, the FOMC said, “The economy has continued to expand at a solid pace,” going on to say “Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.”  It is also worth noting that the FOMC removed a line from the September statement which had said the committee had “gained greater confidence that inflation was moving toward its 2% target.”  (This may reflect the reasoning for, or result from the decision to, cut only a quarter point instead of the previous half percent cut.)  The statement summation was, “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance.”  Regarding labor markets, the statement said, “(labor market) conditions have generally eased, and the unemployment rate has moved up but remains low.” (This was a change from language noting a slowing labor market in September.)  

In other news from the Fed Chair press conference, Powell said “In the near term, the election will have no effects on our policy decisions.”  He continued to be pestered by questions about what a new Trump administration means for Fed policy, answering that, “We don’t guess, speculate, and we don’t assume what future policy choices will be” (going on to state the Fed boilerplate “data driven” approach).  This press focus on Trump and what Trump means for the economy led to a shortened press conference.

After the close, AFRM, AKAM, AMN, ANET, AXON, CIVI, ED, DBX, DXC, FTNT, G, PODD, MTD, MSI, NWSA, OPEN, OVV, PINS, QDEL, REZI, RNG, TOST, and TTD all reported beats on both the revenue and earnings lines. Meanwhile, CPAY, EOG, and EXPE missed on revenue while beating on earnings.  On the other side, AL, ABNB, AMRC, BHF, CPRI, EXPI, LGFA, and SOLV beat on revenue while missing on earnings. However, AGL, SQ, DKNG, EVH, MNST, RIVN, and RUN missed on both the top and bottom lines. 

In stock news, on Thursday, Mercury Research reported that INTC’s share of the notebook, desktop, and server market segments is the lowest since 2006. The report said that AMD and ARM were the competitors picking up the lost share.  (Still, it is worth noting that INTC continues to have a 66% in the desktop, 69% in the notebook, and a 70% share in the server space.)  Later, USM announced it has agreed to sell some of its spectrum licenses to T for $1 billion.  At the same time, DUK announced that it expects to see between $2.4 billion and $2.9 billion in costs to restore facilities damaged by Hurricanes Debby, Milton, and Helene. Later, GM announced it is ending production of Cadillac XT4 SUVs as the company shifts more toward electric vehicles. After the close, Bloomberg reported that BLK is in talks with $70 billion hedge fund Millenium Mgmt. over purchasing a stake in the private fund. 

In stock legal and governmental news, on Thursday, the NHTSA announced that VLKAF (Volkswagen) is recalling 114k vehicles in the US over airbag concerns. Later, TPR announced it has paused integration of CPRI while it appeals a US court decision to clock the $8.5 billion acquisition. At the same time, a US federal appeals court ruled that WBD’s CNN unit must face a now-revived defamation lawsuit from “Project Veritas” which CNN had reported was responsible for promoting disinformation and doxing.  Later, the CA Public Utilities Commission increased reporting requirements on autonomous vehicle “incidents” (now at a trip level) for collisions, traffic citations, and stoppage events (when the self-driven vehicles get stuck).  GM, GOOGL, and TSLA are the companies immediately impacted.

In miscellaneous news, on Thursday, the Bank of England also cut its based rate by 25 basis-points to 4.75%. Elsewhere in Europe, German Chancellor Scholz is now facing increasing pressure from business groups (and opposition parties) to call new elections after the collapse of its three-way coalition.  Back in the US, after the Fed rate cut, the Fed Funds Futures market is showing that trades are indicating a 74.5% probability of another quarter-point cut in December.  The other 25.5% probability foresees no cut or increase in December.

In Middle-East War news, on Thursday, the IDF announced it expanded its operations in Northern Gaz, claiming that Hamas has regrouped.  In addition, Israeli strikes in that area killed dozens Thursday, including 27 in one airstrike on a multi-story building in a refugee camp. Elsewhere, the Gaza Ministry of Health reported nearly 44k Palestinians have been killed and another 103k injured since Israel’s responses to the Oct. 7, 2023 Hamas attack began.

Overnight, Asian markets were mixed with five of the 12 exchanges in green and the other seven below break-even.  Hong Kong (-1.07%) was well out in front of the other losers while New Zealand (-1.50%) and Singapore (+1.39%) were well in front of the other gainers.  In Europe, we see a similar picture taking shape with nine of the 14 bourses showing red at midday. The CAC (-0.64%), DAX (-0.60%), and FTSE (-0.78%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly lower start to the day.  DIA implies a -0.02% open, the SPY is implying a -0.12% open, and the QQQ implies a -0.31% open at this hour.  At the same time, 10-Year bond yields are down to 4.308% and Oil (WTI) is down 1.24% to $71.46 per barrel in early trading.

The major economic news scheduled for Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, Michigan November 5-Year Inflation Expectations and Sept. Retail Inventories (all at 10 a.m.).  We also hear from Fed Governor Bowman (11 a.m.). The major earnings reports scheduled for before the open include ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARAA.  Then, after the close, CEPU reports.

So far this morning, ADNT, AMRX, BAX, ERJ, PARAA, and TIXT have all reported beats on both the revenue and earnings lines.  Meanwhile, BLMN, FLO, and SONY missed on revenue while beating on earnings. On the other side, CLMT, FTRE, IEP, and NRG beat on revenue while missing on earnings.  However, WMS, FLR, GTN, and LAMR missed on both the top and bottom lines.

With that background, it looks like the market is basically undecided so far in the premarket. SPY and QQQ did gap modestly higher to start the early session, but have printed black-bodied candles since that point and are back to basically flat. Meanwhile, DIA started premarket a bit lower, and has printed a small white-body candle to also climb back to basically break-even from Thursday’s close. With all three being far above their T-lines (8ema), the short-term trend is very bullish. The mid-term trend has also reversed since the surprise election result and is now bullish and the longer-term trend remains strongly Bullish in all three. Basically, the only thing you need to know is that all three major index ETFs now sit at all-time highs. With regard to extension, all three major index ETFs are extended far above their T-line. However, the T2122 indicator remains just inside the bottom of its overbought territory. So, the market is stretched, but theoretically still has some room to push even higher. At the very least, we can say the Bulls have the momentum but are in need of at least a rest. (Just remember that markets can remain too far extended longer than we can stay solvent betting on the reversal.) With regard to those 10 big dog tickers, nine of the 10 are in the red this morning with only AAPL (+0.10%) clinging to green territory. Meanwhile, INTC (-0.91%) leads the pack lower after leading the gains Thursday. In terms of trading volume, NVDA (-0.07%) and TSLA (-0.03%) are neck-and-neck in terms of dollar-volume traded and both have traded 12 or more times as much as the next closest stock. However, it is a lighter volume trading premarket than usual. Finally, do not forget that it’s Friday…pay day. So take some money off the table to pay yourself and prepare your account for the weekend news cycle. (Happy Birthday on Sunday to my fellow Marines and don’t forget Monday is Veteran’s Day, but not a market holiday.)

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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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DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Tuesday, markets opened modestly higher and followed-through with a rally until about 1 p.m.  SPY gapped up 0.18%, DIA opened just 0.03% higher, and QQQ gapped up 0.34%.  From there, all three major index ETFs rallied, more quickly at first and then slower after the first hour, but reaching about 1 p.m. before slumping sideways.  SPY and DIA rallied the last few minutes to go out at or near highs while QQQ never quite regained the highs.  This action gave us large, white-bodied candles in all three of the major index ETFs.  SPY printed a Best Friend type candle (Spinning top followed by a gap-up Marubozu candle) to cross back above its T-line (8ema).  Meanwhile, DIA gave us a large, white-bodied candle with small wicks at each end that crossed above its T-line and above its 50sma.  For its part, QQQ printed another Best Friend type signal with a small wick at the top, but it also crossed above its T-line.  This happened on average volume in the DIA, and below-average volume in the SPY and QQQ.

On the day, all 10 sectors were green with Utilities (+1.90%) and Industrials (+1.76%) out front leading the market higher.  On the other side, Communication Services (+0.62%) lagged behind the other sectors.  At the same time, SPY gained 1.20%, DIA gained 1.02%, and QQQ gained 1.28%.  VXX dropped 5.36% to close at 51.55 and T2122 jumped higher to the top end of its mid-range, closing at 72.41.  Meanwhile, 10-Year bond yields fell slightly to 4.289% while Oil (WTI) rose 0.88% to close at $72.10 per barrel.  So, Tuesday was a bullish day across the market, maybe on relief election advertising is done or anticipation one way or the other in the election outcome. No matter the reason, it was the Bulls’ day as Bears never found any traction.  For what it is worth, DIA broke through its downtrend line. 

The major economic news scheduled for Tuesday includes Sept. Exports, which came in down a bit to $267.90 billion (compared to an August reading of $271.80 billion). At the same time, Sept. Imports were up to $352.30 billion (versus an August value of $342.20 billion).  Together, this gave us a Sept. Trade Balance with a larger than predicted deficit of -$84.40 billion (compared to a forecast of $83.80 billion and an August reading of -$70.80 billion).  Later, the Oct. S&P Global Services PMI was down to 55.0 (versus a forecast of 55.3 and a September reading of 55.2).  At the same time, Oct. S&P Global Composite PMI was up, but not as much as anticipated at 54.1 (compared to forecast of 55.3 and a September value of 55.2).  Later, Oct. ISM Non-Mfg. PMI were stronger than expected at 56.0 (versus a 53.8 forecast and a Sept. reading of 54.9).  This included an Oct. ISM Non-Mfg. Employment Index that was up more than predicted at 53.0 (compared to forecast of 48.0 and a September value of 48.1).  At the same time, the Oct. ISM Non-Mfg. Price Index were down but also a tick higher than predicted at 58.1 (versus a forecast of 58.0 and down from September’s 54.9 number).  Then, after the close, the API Weekly Crude Oil Stocks were reported with a significantly larger inventory build than anticipated at +3.132 million barrels (compared to forecast of +1.800 million barrels and a previous week value of -0.573 million barrels).

After the close, AIZ, CRC, CPNG, DVN, GMED, GO, JKHY, KGC, LUMN, MASI, MCHP, MRC, NOG, VIV, and TX all reported beats on both the revenue and earnings lines.  Meanwhile, AFG, FYBR, IFF, and NE beat on revenue while missing on earnings.  On the other side, PAAS missed on revenue while beating on earnings. However, EXAS and PBA missed on both the top and bottom lines.

In stock news, on Tuesday, Reuters reported a survey that found that the major mass retailer like WMT, TGT have imported less holiday product this year than recent years based on the shorter and expected to be weaker holiday sales.  However, even more discounted retailers like DG and DLTR imported the same amount of Christmas items than in past years.  The article also noted that the US National Retail Foundation has reported that November-December sales grew 2.5%-3.5% in 2023.  This was the slowest year-on-year holiday sales growth since 2018.  Later, EMR proposed a buyout of the rest of AZPN at an offer of $240 per share (or $6.53 billion). This was a modest premium on Monday’s closing price for AZPN of $237.59. 

Elsewhere, TSLA CEO Elon Musk responded to previous Reuters reports related to the company’s long-promised and never delivered $25k electric vehicle.  Musk responded Tuesday that it was “pointless” to build a cheap electric vehicle that was not a robotaxi.  Later, CVX, BP, SHEL, and OXY announced they were temporarily halting operations in the Gulf of Mexico as Tropical Storm Rafael strengthens and is expected to become a Category 1 hurricane by Wednesday morning.  At the same time, Reuters reported that ADM has found additional accounting errors after the company was forced to restate six years of financials in March. (ADM will amend its 2023 annual report as well as Q1 and Q2 reports of 2024 following the finding of the new error.)

In stock legal and governmental news, on Tuesday, AMZN announced that it remains committed to a nuclear power plant adjacent to its PA data center campus…despite the plant project (from TLN) being rejected by the Federal Energy Regulatory Comm. (The deal was opposed by some utility industry groups.)  It is unclear how TLN and/or AMZN intend to overcome the regulatory denial.  At the same time, Reuters reported that a Moscow Court fined AAPL about $37k on Tuesday for refusing to delete two podcasts from the Apple Music platform. (This is the opposite of the ruling against GOOGL, which was for deleting YouTube channels of Moscow propaganda.) There was no word on whether the AAPL fine doubles daily after the payment deadline the way GOOGL’s fine has doubled to now be more money than exists in the world. Later, a federal judge dismissed a proposed class-action lawsuit that had been filed against GOOGL.  (The case alleged GOOGL was profiting by refusing to refund millions of dollars stolen from victims in Google Play Store gift card scams.)

Elsewhere, the UK Anti-trust Regulator approved the $19 billion merger of VOD with British firm Hutchinson’s Three UK, stating that the country’s need for investment outweighed the competition concerns. (The agency had blocked the merger nine years prior on the basis of its anti-competitive impacts.)   Later, Reuters reported that NFLX is under investigation for tax fraud in France and the Netherlands with searches of the offices of the company in the two countries took place Tuesday. At the same time, South Korea fined META $15.67 million over its collection of user personal data and giving it to advertisers without user consent.  Later, Reuters reported that AAPL will be the first company y to face fines under the EU’s Digital Markets Law after regulators found that AAPL did violate the law back in June. The report said the fine will likely be announced this month.  (The maximum fine would be 10% of AAPL’s global sales.)  After the close, the FTC sued DAVE, alleging the fintech company misleads consumers by claiming to offer cash advances to gain users of its app, but which few users receive.

In miscellaneous news, on Tuesday, NVDA passed AAPL to again become the world’s most valuable company based on market cap.  NVDA closed at a market value of $3.43 trillion, slightly ahead of AAPL’s $3.38 trillion.  (Poor MSFT is a distant third at $3.06 trillion.)  Elsewhere, Bloomberg reported Tuesday that bond investors have priced in scenarios that would benefit from a Harris election victory while under-investing on positions likely to benefit from a Trump victory.  (They gave no specifics on the exact trades or amounts or how they came to the conclusion one trade would benefit from a Harris win and the other would benefit from a Trump win. However, I wanted to include the info for anyone who is a savvier bond trader.)

In geopolitical news, on Tuesday, Israeli PM Netanyahu fired his rival and now-former Defense Minister Gallant. Netanyahu promoted his ally Foreign Minister Katz to take the Defense Minister spot and unassigned cabinet member Sa’ar to replace Katz as the new Foreign Minister.  Protests erupted across Israel over the firing.  In unrelated news, Israeli police arrested a Netanyahu aid over accusations of leaking information (that gave Netanyahu cover for refusing cease fire proposals) after an Israeli court loosened a government gag order on the info that underlies the case.  Meanwhile, on the ground, an Israeli strike in the north of Gaza killed 30 (mostly women in children according to the AP) on Tuesday.  Elsewhere, in Russian invasion news, in the Kursk region, Ukrainian forces clashed with North Korean troops for the first time Tuesday. (Some North Korean troops were killed a week ago, but that turned out to be due to “friendly fire” from Russian artillery.)  The skirmishes were small-group in nature and there was no word on casualties.

Overnight, Asian markets were mixed with half of the 12 regional exchanges in the red and the other half in the green.  Japan (+2.61%) was by far the biggest gainer while Hong Kong (-2.23%) was by far the biggest loser.  Meanwhile, in Europe, the bourses lean toward the upside at midday with just four of the 14 exchanges below break-even.  The CAC (+1.20%), DAX (+0.83%), and FTSE (+1.27%) lead the region higher in early afternoon trade.  In the US, as of 6:40 a.m., Futures are pointing toward a significant gap higher.  The DIA implies a +2.93% open, the SPY is implying a +2.22% open, and the QQQ implies a +1.63% open at this hour.  At the same time, 10-Year bond yields are spiking higher to 4.477% and Oil (WTI) has fallen 1.40% to $70.98 per barrel in early trading.

The major economic news scheduled for Wednesday includes EIA Weekly Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, and VSH.  Then, after the close, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.

So far this morning, AEP, COR, GIB, CRL, CRARY, CVS, DK, DDL, ENOV, KMT, ADRNY, OC, TEVA, TRMB, and VWDRY all reported beats on both the revenue and earnings lines.  Meanwhile, CLVT, HWM, IRM, JCI, LINE, and PRGO missed on revenue while beating on earnings.  On the other side, HMC and PFGC beat on revenue while missing on earnings. However, NVO, ODP, SUN, TM, and VSH all missed on both the top and bottom lines.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

In overnight news, America chose four more years of the felon, ex-President as it elected him again over current-VP Harris. The country also gave his party control of both the Senate and House, ensuring that faction now has complete control over all three branches of the US government as of January. Markets seem to love the idea, or are at least expressing relief that the election process is done, and are looking like they want to revisit the recent all-time highs.  The Dollar is spiking, which at least in part helps explain the 10-Year bond yield spike, which is contributing to falls in commodity prices early. 

With that background, it looks like the market is spiking higher and strongly bullish again early on Wednesday. All three major index ETFs gapped higher to start the premarket. Since that point, all three have also printed large white-bodied candles. (DIA is back at all-time highs.) With all three gapping far above their T-line (8ema), the short-term trend is bullish. However, the mid-term trend is also reversed and is now again bullish and the longer-term trend remains strongly Bullish in all three. With regard to extension, all three major index ETFs will open extended far above their T-line. However, at least until the market opens the T2122 indicator remains in the top end of its mid-range. So, the Bulls will run this morning. However, markets will also be stretched. Just remember that markets can remain too far extended longer than you can stay solvent betting on the reversal. With regard to those 10 big dog tickers, eight of the 10 are in the green again this morning. TSLA (+12.64%) is getting paid back for Musk getting in bed with Trump. TSLA is also far-and-away the largest dollar-volume trader, having traded nearly six times the traditional leader NVDA (+1.12%). The laggard of the group is META (-1.00%), perhaps on the premise that it will be punished by a pro-Musk government since it competes with Musk’s own social media company.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened modestly on Monday as traders seem to be waiting (on elections, the Fed, or who knows what). SPY opened up just a tiny fraction of a percent, DIA opened down 0.13%, and QQQ opened down 0.12%. From there, SPY and QQQ meandered back and forth above and below the opening level all day. For its part, DIA sold off until noon, rallied half way back to the opening level by 1 p.m. before grinding sideways in a tight range the rest of the day.  This action gave us indecisive candles in all three major index ETFs.  SPY printed a black-bodied Spinning Top candle that retested its 50sma from above, but passed to closed back above that level.  DIA printed a black-bodied, large Hammer type candle that retested its 50sma after gapping below, but failed the test to close back below.  Finally, QQQ printed a black-bodied Spinning Top, Bear Harami for the day.  This happened on well-below-average in the SPY and QQQ as well as below-average volume in the DIA.

On the day, five of the 10 sectors were in the green with Energy (+1.38%) almost one percent out in front leading the gainers higher.  On the other side, Utilities (-0.54%) was two-tenths of a percent ahead of the rest of the losing sectors headed down. At the same time, SPY lost 0.22%, DIA lost 0.56%, and QQQ lost 0.29%.  VXX fell 4.19% to close at 54.47 and T2122 climbed a bit to just get above the edge of its oversold area, but is only in the bottom of its mid-range at 22.84.  Meanwhile, 10-Year bond yields fell to 4.289% while Oi (WTI) spiked 3.21% (on Israeli-raised fears of an Iranian retaliation for its bombing of Iran) to close at $71.73 per barrel. So, Monday was largely a “wait-and-see” day for traders. US Presidential and Congressional elections weigh on the market like a dark cloud that likely will not lift for at least days, maybe weeks, and possibly months. (The GOP has already filed more lawsuits than seen in any other US election and the number of their suits will skyrocket as votes are cast and counted. So, the normal schedule of democracy will likely not occur given the inability of one side to accept defeat or even reality.)

The major economic news scheduled for Monday is limited to September Factory Orders, which came in better than August but a tick worse than expected at -0.5% (compared to a -0.4% forecast and August’s -0.8%).

After the close, AIG, ANDE, AVB, EQH, BFAM, BWXT, CRUS, CWK, ES, FN, GXO, ILMN, NXPI, PARR, PLTR, PRIM, RHP, SANM, SLF, VVX, and VRTX all reported beats on both the revenue and earnings lines.  Meanwhile, CENX, CRBG, CRGY, GT, HUN, O, RRX, and ST missed on revenue while beating on earnings. On the other side, BCC, FANG, FWRD, and HOLX beat on revenue while missing on earnings. However, ATUS, CBT, CE, CLF, JELD and WYNN missed on both the top and bottom lines.

In stock news, on Monday, HXSCL (SK Hynix) stock spiked at the open after NVDA requested expedited delivery for the memory-maker’s new HBM-4 high-bandwidth memory chips.  (The NVDA desire to pull-forward it’s buying is a powerful indicator of high demand for the newer, faster memory chips.  The only other memory makers of any note globally are MU and Korea’s Samsung.)  Later, the Chinese Passenger Car Assn. reported that deliveries of Chinese-made TSLAs fell 5.3% year-on-year in October.  In addition, October sales of Chinese-made Model 3 and Model Y fell 22.7% from September.  At the same time, as reported Monday, ATSG confirmed that it has agreed to be taken private by equity firm Stonepeak for $22.50 per share (a 29.3% premium on Friday’s close).  Later, IT industry analysts reported Monday that NVDA has begun routing motherboard orders away from SMCI following its accounting scandal. (Taiwanese-listed competitors Gigabyte and ASRock seem to be the beneficiaries of the NVDA decision.) 

Elsewhere, F announced that its October sales were up roughly 15% year-on-year. Later, META announced it will extend its ban on new political ads beyond the election, at least until later this week.  After the close, Reuters reported that BCSF and private equity firm Silver Lake are among the potential buyers bidding for a minority stake in INTC’s Altera (programmable chips) unit, which INTC acquired for $17 billion in 2015. At the same time, Bloomberg reported that OpenAI is in talks with the state of CA on becoming a for-profit company (changing structure from a non-profit).  Later, DLTR announced that CEO Dreiling (who only joined the company in March 2022) is stepping down “for personal reasons.” (However, the more likely scenario is that he was ousted due to poor performance in what was supposed to be a turnaround.) No successor was named as of yet.

In stock legal and governmental news, on Monday, Reuters reported that EU antitrust regulators have opened an investigation into whether AAPL’s iPad operating system complies with the EU’s Digital Markets Act. (At question is whether AAPL’s prohibition on other app stores for iPad apps violates the law.) That antitrust commission has just begun soliciting comment from all interested stakeholders. Later, the same EU antitrust regulators announced they will rule on NVO’s $16.5 billion acquisition of CTLC by December 6.  Meanwhile, the Texas Railroad Commission (which, oddly, regulates the TX oil and gas industry) requested state lawmakers for $100 million in emergency funding to keep up with the growing number of leaking or erupting wells in TX oilfields.  (That amount is equivalent to 44% of TX’s entire two-year budget.)  In addition, the head of the agency said that request DID NOT include enough money to protect TX groundwater from well blowouts.

Elsewhere, the NHTSA announced it has closed a probe into 411k F’s SUV and pickups. The probe was started after more than 1,000 complaints of loss of power during operations.  The end of the investigation comes after F acknowledged the problem and recalled 90k of the vehicles.  Later the US State Dept. approved the sale of $4.92 billion of BA military aircraft to South Korea. At the same time, China filed a WTO complaint alleging the EU has improperly set anti-subsidy tariffs on China’s electric vehicles.

In miscellaneous news, on Monday, MS reported that their survey of consumers has found sentiment was the highest in three years at the end of October. Meanwhile, C reported that its survey of chipmakers found that September saw a massive 8.8% month-on-month increase in global semiconductor sales, reaching $61.1 billion for the month.  Elsewhere, the Chinese National People’s Congress Standing Committee held a meeting Monday to discuss moving “off balance sheet debt” of local governments to their official accounts.  Additional talks included increasing local government debt ceilings in order to allow the move. Bloomberg also reported that they are considering permitting local governments to sell $845 billion in bonds by 2027 to finance the hidden debt. 

In Middle East news, on Monday Israel officially ended its recognition of the UN’s Relief and Works Agency for Palestinian Refugees.  This put the previously-voted ban of the organization into effect.  Dismantling UNWRA has long been a goal of Israel, but global humanitarian support for the organization made that move politically untenable.  Israel’s defiance and disregard for international pressure (assured of US support) over the last year allowed Israel to justify the move, blaming support of Hamas for the move.  (Since UNWRA is by far the largest aid and services distributor to Palestinians, the impact is expected to be dire in Palestine.)  Attacks on the day were lighter than recently (mostly due to the Israelis lightening up) as they continue to push the narrative that Iran is “just about” to retaliate for their airstrikes in Tehran last week.

Overnight, Asian markets were mostly strongly green.  Shenzhen (+3.22%), Shanghai (+2.32%), Hong Kong (+2.14%), Thailand (+1.28%), and Japan (+1.11%) led that region higher.  Meanwhile, in Europe, most bourses are green but there is more red showing than in Asia as of midday with five of 14 exchanges below break-even. The CAC (+0.14%), DAX (+0.17%), and FTSE (+0.12%) lead the region higher in early afternoon trade.  In the US, as of 7 a.m., Futures are pointing toward a higher start to the day.  The DIA implies a +0.15% open, the SPY is implying a +0.25% open, and the QQQ implies a +0.41% open at this hour.  At the same time, 10-Year bond yields are back up to 4.311% and Oil (WTI) is up a third of a percent to $71.73 per barrel in early trading.

The major economic news scheduled for Tuesday includes Sept. Exports, Sept. Imports, and Sept. Trade Balance (all at 8:30 a.m.), Oct. S&P Global Services PMI and Oct. S&P Global Composite PMI (9:45 a.m.), Oct. ISM Non-Mfg. PMI, Oct. ISM Non-Mfg. Employment, and Oct. ISM Non-Mfg. Price Index (all at 10 a.m.), and API Weekly Crude Oil Stocks report (4:30 p.m.).  However, the main news of the day will be the US elections (although, as mentioned, the results are not likely to be known Tuesday or maybe even this week).  The major earnings reports scheduled for before the open include AHCO, AGCO, GBTG, APO, ARCH, ADM, BR, BRKR, BLDR, CIGI, CEIX, CMI, DD, EMR, EXPD, RACE, FTS, IT, GGB, GFS, HSIC, HY, INGR, LGIH, LPX, MPC, MLCO, MPLX, NMRK, OGE, ACDC, QSR, TRGP, TRI, TKR, BLD, TAC, ULS, WLK, and YUM.  Then, after the close, AFG, AIZ, CRC, CPNG, DVN, EXAS, FYBR, GMED, GO, IFF, JKHY, KGC, LUMN, MASI, MCHP, MRC, NE, NOG, PAAS, PBA, SMCI, VIV, and TX report.

In economic news later this week, on Wednesday, EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Wednesday, AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, VSH, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.  On Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

In overnight news, BA union members voted to accept the latest tentative contract and thus end the 7+ week strike.  It is worth noting that only 59% of the machinists voted to accept the deal, which includes a 38% pay increase over four years and either a $12k ratification bonus or $7k bonus plus $5k contribution to the employees 401(k). While some workers could return to the job as soon as Wednesday, the official return to work date is November 12.

With that background, it looks like the market is modestly bullish but indecisive again early Tuesday. All three major index ETFs gapped modestly higher to start the premarket. Since that point, all three have also printed Doji-like candles. With all three still below their T-line (8ema), the short-term trend is bearish. However, the mid-term trend is now undetermined (seeming to turn over to bearish but not definitive yet) and the longer-term trend is still solidly Bullish in all three. (Again, despite the recent pullback, they all still within three percent of all-time highs.) With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator has climbed just outside of its oversold area and into the bottom of the mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the green this morning. TSLA (+1.86%) is by far the leading gainer (a full percent ahead of the next best-performing ticker) while AAPL (-0.15%) is the laggard. Once again, overall the premarket volume is light today. However , TSLA is leading NVDA in terms of dollar-volume traded (early) and those two are far out in front of all other tickers.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

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Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened higher on Friday after good earnings news and poor payroll data (that can be interpreted as a rationale for another or a bigger Fed rate cut).  SPY gapped up 0.49%, DIA gapped up 0.50%, and QQQ opened up 0.31%. From there, all three major index ETFs followed-through with a strong rally for the first hour.  At that point they all slowly meandered back toward their open.  This action gave us Inverted Hammer type candles in all three major index ETFs.  SPY printed a black-bodied Inverted Hammer.  DIA gave us a gap-up white-bodied, Inverted Hammer that retested its T-line (8ema) from below and failed.  However, DIA did recross its 50sma to the upside.  Finally, QQQ printed a white-bodied, big Inverted Hammer Body candle that was also a Bullish Harami candle.  This all happened on average volume int SPY and QQQ as well as above-average volume in the DIA.

On the day, six of the 10 sectors were in the green with Healthcare (+1.00%) well out in front leading the way higher.  On the other side, Utilities (-1.85%) performed far, far worse (one percent worse) than the next worse sector, Energy (-0.86%).  Meanwhile, SPY gained 0.42%, DIA gained 0.66%, and QQQ gained 0.74%.  VXX fell 1.76% to close at 56.85 and T2122 fell slightly further into oversold territory, but remains in the top of that area at 16.44.  At the same time, 10-Year bond yields spiked again all the way up to 4.386% while Oil (WTI) fell to close at $69.49 per barrel. So, Friday was the Bulls day early but then turned into a long, slow drift lower after the first hour.  Among the big market-movers were the big dogs INTC (+7.81%) and AMZN (+6.19%) as well as earnings moves by CHTR (+11.87%), LULU (+7.81%), and CAH (+7.01%).

The major economic news scheduled for Friday included October Average Hourly Earnings, which was up more than expected at +0.4% (compared to a forecast and September value of +0.3%).  At the same time, October Nonfarm Payrolls were FAR below expectations at +12k (versus a forecast of +106k and the September 223k reading).  On the private side, October Private Nonfarm Payrolls actually fell at -28k (compared to a forecasted +90k and September’s +192k number).  Meanwhile, the October Participation Rate fell a tick to 62.6% (versus the forecast and September 62.7% value).  Together, this gave us an October Unemployment Rate that remained at 4.1% (in-line with the forecast and September reading of 4.1%).  Later, October S&P Global Mfg. PMI was better than predicted at 48.5 (compared to a forecast and Sept. value of 47.8). Shortly after that, September Construction Spending was better than anticipated at +0.1% (versus a 0.0% forecast and in-line with August’s +0.1% reading). At the same time, October ISM Mfg. Employment was up less than expected to 44.4 (compared to a 45.0 forecast but up from September’s 43.9 value).  In the meantime, October ISM Mfg. PMI was lower than predicted at 46.5 (versus a 47.6 forecast and a 47.2 September reading).  This came on October ISM Mfg. Prices were up much more than anticipated at 54.8 (compared to a 49.9 forecast and September’s 48.3 value).  It is worth noting that the weak October Payrolls growth was skewed by hurricanes and the impact of the BA strike, which also impacted BA suppliers.

In stock news, on Friday, WEN announced it is closing 140 restaurants (in addition to 100 closings announced in May) over the months ahead.  (It is worth noting that the hamburger chain is opening 250-300 new location and has 6,000 stores in the US at the moment.)  Later, in a regulatory filing showed that AAPL will invest $1.5 billion in GSAT which will give GSAT funds to expand its satellite coverage.  This includes a 20% stake in GSAT for $400 million as well as $1.1 billion in cash.  After the close, Bloomberg reported that SHOCF and their private-equity peer Silver Lake Mgmt. are in talk about combining their veterinary business units and adding $4 billion in new capital to the combined company. 

Elsewhere, S&P announced that NVDA will replace INTC in the DJIA (DIA) as of November 8.  On Saturday, BRKB announced they have now amassed a $325.2 billion cash stockpile through sales of AAPL and BAC.  Warren Buffett said the company had sold another 100 million shares, which was about 25% of its holdings of AAPL during Q3 (600 million total to date for 2024).  Interestingly, BRKB also did not buy back any of its own stock during the quarter, which suggests company executives do not feel it is a bargain now.  On Sunday, Reuters reported that private equity firm Stonepeak is in advanced talks to acquire ATSG for about $3.1 billion or $22.50 per share (a 29% premium on Friday’s close of $17.40).

In stock legal and governmental news, on Friday, the NY State Supreme Court ruled in favor of PEP, dismissing the state’s case alleging the company of pollution for using plastic single-use plastic packaging.  At the same time, the Federal Energy Regulatory Commission held a hearing on concerns generated by the recent trend of planning to build datacenters on the sites of US power plants.  (The main focus was concerns over system-wide reliability as well as passing more cost onto public electric consumers in favor of the co-located datacenter.)  Later, trade groups for the major airlines criticized the US Justice Dept. review of airline competition in America and demanded that public comment on the review be extended another 60 days beyond the Dec. 23 deadline (in hope a GOP administration could kill the antitrust review for them).  At the same time, the Commerce Dept. imposed a $500k fine on GFS (third-largest chipmaker, with huge market share in lower-end chips) for selling semiconductors to blacklisted Chinese chipmaker SMIC.  Later, COF disclosed (in and SEC filing) that it is being investigated and may face enforcement action from the Consumer Financial Protection Bureau for alleged misrepresentations related to savings accounts.

In miscellaneous news, on Friday, China loosened its foreign investment rules in an effort to increase the amount of foreign funds flowing into the country.  Overseas investors are now allowed to take non-controlling “strategic stakes” in publicly-traded Chinese firms with a $300 million position. (The previous rule required foreigners to take at least a $500 million stake for a “strategic position” designation, but it was still non-controlling.)  Elsewhere, remember that BA has a binary event Monday with a union vote on the tentative deal reached last week.  (Results are not expected until at least the afternoon Monday and probably the evening.)

In Middle East news, over the weekend, Israel claimed it captured a “senior Hezbollah operative” in a raid in Northern Lebanon.  Elsewhere, Israeli airstrikes continued with several dozen killed and hundreds injured in weekend bombings in Lebanon.  In Gaza, at least 13 were killed and several dozen injured in an airstrike of two houses and the refugee camps located next to them.  On the other side, Israel said 11 people were injured in the city of Tira (central Israel) when three Hezbollah rockets hit the city.

Overnight, Asian markets were mostly green with just two of the 12 exchanges in the region under water.  Shenzhen (+1.99%), South Korea (+1.83%), and Shanghai (+1.17%) paced the gainers.  Meanwhile, India (-1.27%) was the only appreciable loser for the day.  (Japan was closed for holiday.)  In Europe, we see a very similar picture taking shape with just two of 14 bourses showing red (barely) at midday.  The CAC (+0.26%), DAX (+0.02%), and FTSE (+0.63%) lead the region higher in early afternoon trade.  In the US, as of 7 a.m., Futures are pointing toward a modest green start to the day.  The DIA implies a +0.10% open, the SPY is implying a +0.20% open, and the QQQ implies a +0.17% open at this hour.  At the same time, 10-Year bond yields are down to 4.277% and Oil (WTI) has spiked 3.09% to $71.65 in early trading.

The major economic news scheduled for Monday is limited to September Factory Orders (11 a.m.).  The major earnings reports scheduled for before the open include FOX, AMG, BRKB, BAM, CC, CNA, CEG, ENTG, FIS, BEN, FTDR, KNF, KOS, MAR, NYT, OMI, PEG, RVTY, YUMC, and ZTS.  Then, after the close, ATUS, AIG, AVB, EQH, BCC, BFAM, BWXT, CBT, CE, CENX, CRUS, CLF, CRBG, CRGY, CWK, FANG, ES, FN, FWRD, GT, GXO, HOLX, HUN, ILMN, ITUB, JELD, NXPI, PLTR, PARR, PRIM, PGR, O, RRX, RHP, SANM, ST, SLF, VVX, VRTX, and WYNN report.

In economic news later this week, on Tuesday we get Sept. Exports, Sept. Imports, Sept. Trade Balance, Oct. S&P Global Services PMI, Oct. S&P Global Composite PMI, Oct. ISM Non-Mfg. PMI, Oct. ISM Non-Mfg. Employment, Oct. ISM Non-Mfg. Price Index, and API Weekly Crude Oil Stocks report.  However, the main news of the day will be the US elections (although the results are not likely to be known that night and, if one side loses, turmoil may not end for months).  Then Wednesday, EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Tuesday, we hear from AHCO, AGCO, GBTG, APO, ARCH, ADM, BR, BRKR, BLDR, CIGI, CEIX, CMI, DD, EMR, EXPD, RACE, FTS, IT, GGB, GFS, HSIC, HY, INGR, LGIH, LPX, MPC, MLCO, MPLX, NMRK, OGE, ACDC, QSR, TRGP, TRI, TKR, BLD, TAC, ULS, WLK, YUM, AFG, AIZ, CRC, CPNG, DVN, EXAS, FYBR, GMED, GO, IFF, JKHY, KGC, LUMN, MASI, MCHP, MRC, NE, NOG, PAAS, PBA, SMCI, VIV, and TX.  Then Wednesday, AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, VSH, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.  On Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

So far this morning, BNTX, CC, CNA, CEG, L, OMI, and RVTY all reported beats on both the revenue and earning lines.  Meanwhile, BAM, KOS, and YUMC missed on revenue while beating on earnings. On the other side, BRKB came in in-line on revenue while missing on earnings.  However, ENTG missed on both the top and bottom lines.

With that background, it looks like the market is modestly bullish again early Monday. The SPY and QQQ gapped up slightly to start the premarket while DIA opened the early session flat. All three major index ETFs have printed white-body candles, but only DIA is decisive with the two broader ETFs more wick than body so far. With all three below their T-line (8ema), the short-term trend is bearish. However, the mid-term trend is weakly bullish and the longer-term trend is still solidly Bullish in all three. (Again, despite the recent pullback, they all still sit not too far from all-time highs.) With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains just inside the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the red this morning. TSLA (-2.17%) is by far the biggest loser while NVDA (+2.15%) is by far the biggest gainer. Once again, overall the premarket volume is light today. However , NVDA leads TSLA slightly in early dollar-volume traded (and those two are well out in front of all other tickers).

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Thursday saw a significant gap lower in all three major index ETFs, perhaps mostly on warnings from META and MSFT that spiraling AI costs may impact earnings. SPY gapped down 0.74%, DIA gapped down 0.63%, and QQQ gapped down 0.84%.  From there, SPY and QQQ immediately began following-through with a selloff, finding some support shortly after 11 a.m. and then meandering sideways until the end of the day. For its part, after the open, DIA chopped sideways along the open until 10:25 a.m. before beginning to selloff sharply until the low of the day at 11 a.m.  At that point, DIA rallied back to its open by 1:30 p.m. and then meandered sideways until the end of the day. All three major index ETFs sold off sharply the last 10 minutes with SPY and QQQ going out very near the low of the day. 

This action gave us gap-down, black-bodied candles in all three.  SPY was a black Marubozu (shaved head) candle that gapped below its T-line (8ema) and closed right on its 50sma.  DIA printed a gap-down, black-body Spinning Top candle that gapped down through its 50sma, retested from below and failed that test.  Finally, QQQ gave us a black Marubozu (shaved head) candle that gapped below its T-line, printed a big black candle, but has not reached its 50sma yet.  This happened on above-average volume in all three of the major index ETFs.

On the day, eight of the 10 sectors were in the red with Technology (-2.71%) way, way out in front (by 1.2%) leading the way lower.  On the other side, Utilities (+0.64%) held up far better than most of the market. Meanwhile, SPY lost 1.98%, DIA lost 0.96%, and QQQ lost 2.52%.  VXX spiked 7.65% higher to close at 57.87 (the highest it has been since early August) and T2122 fell just inside of the oversold territory at 17.55.  At the same time, 10-Year bond yields climbed back up to close at 4.286% while Oil (WTI) jumped 2.92% to close at $70.61 per barrel. So, Thursday was a rough, rough day for the Bulls as Bears gapped us lower and then followed-through in the morning.  We saw a midday sideways chop as the Bulls tried to find their footing.  However, the dark pool came in to close out the day on a whoosh lower. The big losers on the day were the Tech giants, with MSFT (-6.03%), NVDA (-4.81%), and META (-4.09%) leading the parade lower.  Of the 10 “Big Dogs,” only NFLX (+0.30%) was in the green.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in lower than expected at 216k (compared to a forecast of 229k and the prior week’s reading of 228k).  In terms of ongoing claims, Weekly Continuing Jobless Claims were also well down to 1,862k (versus the 1,890k forecast and prior week’s 1,888k).  At the same time, the September Core PCE Price Index came in as anticipated at a flat 2.7% (Year-on-Year), compared to the 2.6% forecast and August value of 2.7%).  On the monthly side, the September Core PCE Price Index was as predicted at 0.3% (versus the 0.3% forecast but up a tick from August’s 0.2% value).  For the headline numbers, the September PCE Price Index was down as predicted to 2.1% (compared to a 2.1% forecast and the August 2.3% reading). This made it the lowest PCE number since 2021.  For the monthly value, the September PCE Price Index was 0.2% (versus a 0.2% forecast but up a tick from August’s 0.1% Month-on-Month value).  At the same time, the Q3 Employment Cost Index was lower than expected at 0.8% (compared to a forecast and Q2 reading of 0.9%).  Meanwhile, September Personal Spending, Month-on-Month, was up more than anticipated at +0.5% (versus a +0.4% forecast and August’s +0.3% number). Then, after the close, the Fed Balance Sheet showed a $16 billion decline to $7.013 trillion (from $7.029 trillion).

After the close, AMZN, AAPL, TEAM, CVCO, CNO, CPS, EMN, ERIE, JNPR, MERC, RGA, SEM, SKYW, X, and VICI all reported beats on both the revenue and earnings lines.  Meanwhile, AES, AMCR, CON, DORM, ICFI, IR, MTZ, SM, and SON missed on revenue while beating on earnings. On the other side, INTC beat on revenue while missing on earnings.  However, CAR and CTRA missed on both the top and bottom lines.

Drilling down, AMZN shares soared after-hours on huge beats with ad revenue up 19% year-on-year and cloud services posting the biggest profit in a decade.  At the same time, INTC spiked 7% on an earnings miss that was less than feared and upbeat guidance. Not to be outdone, AAPL beat and announced that it is seeing early demand for the iPhone 16 (where AAPL is counting on AI revenue to generate future growth). So, despite the very down day for big tech, after-hours a sigh of relief seemed to be released by markets on the three big reports.

In stock news, on Thursday, SIEGY (Siemens) announced it had agreed to buy ALTR for $10.6 billion, strengthening its position in the industrial software market. This will raise SIEGY to number 2 (from number 4) in that market, behind just ANSS.  At the same time, Korean Samsun Electronics announced it had made progress on new “high-bandwidth memory” products, which it said are advancing through qualification tests. (As a result, direct competitor MU, which has recently said it is still in “early days” on its own HBM products, stock fell 4.5%.) Later, GOOGL announced a set of AI features for map applications (such as Google Maps).  At the same time, CMCSA said it is considering the spinoff of its cable TV networks, such as CNBC and MSNBC (but not including NBC or the Peacock streaming network).  Later, PTON announced it has hired former AAPL exec Peter Stern as its new CEO effective January 1. Stern will be tasked with guiding a turnaround for PTON. At the same time, Reuters reported that sources indicate the F has told employees that the company will cut management bonuses by 65% if the company does not speed up the implementation of cost-cutting and quality improvement programs. 

Later, OpenAI announced the release of ChatGPT search capability. The previously-announced tool increases competition for GOOGL’s primary search business.  At the same time, COP raised its annual output forecast, citing improvements in operational efficiency. (COP output has increased 6% year-on-year to 1.92 million barrels per day. It now forecasts 1.94-1.95 million barrels per day for the 2024 average.)  Later, F announced it will halt production of its F-150 Lightning from November 18 until January 6, 2025.  (This includes previously-planned holiday plant shutdown weeks.) Although sales of the vehicle are up 86% year-on-year, they have not grown as much as the company anticipated. After the close, CNBC reported that BA and the Machinist Union reached a sweetened tentative agreement.  (The new dela would provide a 38% pay increase, versus the previous 35% offer that was rejected, over four years. With compounding, it would be a 44% increase by the end of the agreement. It also offers a $12k ratification bonus…or employees could choose a $7k bonus with a $5k contribution to their 401k.  However, the agreement does not include the return of a pension plan that was widely cited as the main reason for the two earlier rejections.  The union urged member to accept the offer and the vote will be Monday.)

In stock legal and governmental news, on Thursday, the European Commission told NVDA that the company needs the approval of the EU Antitrust Regulator before it can close the $700 million purchase of Run:ai.  The public statement said, “The transaction threatens to significantly affect competition in the markets where NVIDIA and Run:ai are active, which are likely to be at least European Economic Area-wide and therefore include the referring country Italy.”  Later, the US 6^th Circuit Court of Appeals heard arguments in a suit brought against the FCC.  In the hearing, brought by the Telecom industry, the court questioned FCC authority to reinstate “Net Neutrality” rules. (This is pretty novel position, considering that the FCC was the agency that did away with the rules in the first place back in 2017.) The current situation allows US telecom providers to charge different rates and set different speeds for internet traffic from AMZN, MSFT, AAPL, GOOGL, and META (among others)…basically as a way to get the tech giants to pay more.  There was no timeline provided for a ruling in the case.

Elsewhere, Russia fined GOOGL $20 decillion ($2 followed by 36 zeroes) which is 20 billion, trillion, trillion dollars.  The fine was for not paying earlier fines for blocking pro-Russian propaganda channels on YouTube.  After the close, a jury in a MO state court found that ABT and RBGLY (Reckitt Benckiser) were not responsible for debilitating intestinal disease for failing to warn the parents of the premature baby formula risks. (This is one of roughly 1,000 similar lawsuits in process in the US.)  At the same time, the SEC announced that JPM has agreed to pay $100 million to settle charges the bank misled customers who invested in “conduit” products. (This includes a $10 million fine and $90 million to be distributed to conduit product customers. It also included a censure, but no admission of liability.)  Meanwhile, a TX jury ordered TXT to pay $16 million to private CA company Rogerson Aircraft for giving the latter’s proprietary information to a rival parts supplier.

In miscellaneous news, on Thursday, oil spiked higher on an Axios report that Israeli intelligence had told it Iran is preparing to attack Israel from inside Iraqi territory.  In other oil news, the US Energy Information Administration reported that US production rose 1.5% to hit another record high in August of 13.4 million barrels per day.  (That topped the previous record of 13.31 million barrels per day in December 2023.)  At the same time, US natural gas production slowed 0.6% to 115.9 billion cubic feet in August.

In Middle East news, on Thursday, multiple outlets reported the Israeli military leaders say the IDF have achieved all of its objectives in both Gaza and Lebanon.  However, the reports also indicate that PM Netanyahu is unlikely to agree to end the campaigns and certainly not before the US election.  Instead, on Thursday, Netanyahu again said the fighting will continue until “absolute victory” and announced that Israel’s “supreme objective” is stopping Iran from getting nuclear weapons.  For its part, Hamas rejected the Egyptian-proposed 2-day ceasefire in exchange for an unspecified number of Israeli hostages.  In northern Israel, seven people (four of which were foreign workers) were killed by a “direct hit.” It was not definitive, but assumed, this resulted from a Hezbollah rocket either direct or after interception.  In Lebanon, Israeli strikes in the North and East of the country (near Baalbek) killed 45.

Overnight, Asian markets were mostly red with just three of the 12 exchanges above break-even.  Japan (-2.63%) was by far the biggest loser, while Hong Kong (+0.93%) led the gainers.  However, in Europe, we see green across the board at midday with all 14 bourses strongly green.  The CAC (+0.71%), DAX (+0.60%), and FTSE (+0.78%) lead the region higher in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a modest higher open.  The DIA implies a +0.40% open, the SPY is implying a +0.40% open, and the QQQ implies a +0.47% open at this hour.  At the same time, 10-Year bond yields are up to 4.295% and Oil (WTI) is up 1.89% to $70.57 per barrel in early trading.

The major economic news scheduled for Friday includes October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, and October Unemployment Rate (all at 8:30 a.m.), October S&P Global Mfg. PMI (9:45 a.m.), September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices (all at 10 a.m.).  The major earnings reports scheduled for before the open include AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W.  There are no earnings scheduled for after the close.

So far this morning, ACDVF, ARES, CAH, CBOE, CHTR, CHD, ENB, NMR, MD, SCGLY, TXNM, and WAT all reported beats on both the revenue and earnings lines. Meanwhile, CVX, D, XOM, NVT, PPL, TROW, and W missed on revenue while beating on earnings. On the other side, AMR, BTSG, and LYB beat on revenue while missing on earnings.  However, ARCB, GTLS, and MGA missed on both the top and bottom lines.

With that background, it looks like the market is modestly bullish early this morning. All three major index ETFs have gapped higher and are printing white-body, inside candles against Thursday’s big black candles. All of them are mostly body at this point. So, indecision is not an issue at least yet (ahead of data). With all three below their T-line after the rough session Thursday, the short-term trend is now bearish. However, the mid-term and longer-term trends are obviously still strongly Bullish in all three, as they still sit not far from all-time highs. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema), but QQQ is pushing that limit. In addition, the T2122 indicator is now just inside the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the green again this morning. As mentioned, AMZN (+7.26%) and INTC (+5.34%) lead the gains in premarket with AAPL (-1.73%) the laggard. AMZN has traded enough stock to even be leading in dollar-volume sold, although normal leader NVDA is close behind it. Once again, overall the premarket volume is light today. Don’t forget it’s Friday, so pay yourself and prepare for the weekend news cycle.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Tuesday gave us some divergence between DIA and its broader index ETF peers.  SPY opened down 0.14%, DIA gapped down 0.42%, and QQQ opened up 0.05%.  At that point, SPY and QQQ started a long, slow, but steady rally that lasted until the end of the day.  During that last 30 minutes SPY and QQQ saw some profit-taking.  For its part, after the gap down, DIA rallied (more sharply than the others) to recross its gap by 10:15 a.m. and hitting the high of the day 15 minutes later.  From there, DIA gave us a long, slow, but steady selloff the rest of the day that took it back down into its gap area.  This action gave us white candles with significant wicks in all three major index ETFs.  SPY printed a white, Piercing Arrow, Spinning Top that gapped below and then closed back above its T-line (8ema).  DIA gave us a gap-down, white-bodied, Inverted Hammer candle that retested and failed its T-line from below.  Finally, QQQ printed a large-body white candle with wicks on both ends which retested and passed the test of its T-line from above. This happened on below-average volume in all three of the major index ETFs.

On the day, nine of the 10 sectors were in the red with Utilities (-1.60%) well out in front leading the way lower.  On the other side, Technology (+1.22%) was by far (by more than 1.4 percent) the strongest sector.  Meanwhile, SPY gained 0.16%, DIA lost 0.37%, and QQQ gained 0.96%.  VXX was down slightly to close at 52.48 and T2122 climbed just a little, but remains in the lower-end of its mid-range at 27.06. At the same time, 10-Year bond yields fell back to close at 4.256% while Oil (WTI) was just on the green side of flat to close at $67.49 per barrel. So, Tuesday was a divergent day where Tech drove the QQQ higher on the strength of AMD (+3.96%), META (+2.62%), and AVGO (+4.20%).  Meanwhile, SPY was little changed and poor DIA was dragged lower by bluebloods like HD (-1.94%), KO (-1.66%), and TRV (-1.47%).

The major economic news scheduled for Tuesday included Preliminary September Goods Trade Balance, which came in worse than expected at -$108.23 billion (versus a forecast of -$95.90 billion and the August reading of -$94.22 billion).  At the same time, Preliminary September Retail Inventories showed slower growth than the prior month at +0.1% (compared to August’s +0.5% value).  Later, the October Conference Board Consumer Confidence was much stronger than anticipated at 108.7 (versus a forecast of 99.5 and a September reading of 99.2).  Meanwhile, September JOLTS Job Openings were down (fewer open jobs) to 7.443 million (compared to a forecast of 7.980 million and August’s 7.861 million reading).  Then, after the close, API Weekly Crude Oil Stocks showed an unexpected drawdown of 0.573 million barrels (versus a predicted inventory build of 2.300 million barrels and the prior week’s 1.643-million-barrel inventory increase.)

After the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXC, BXP, EXE, EIX, EXEL, EXR, FMC, GOOG, IEX, LBTYA, LFUS, MCY, MTH, MOD, MDLZ, QRVO, RUSHA, SNAP, SYK, UMBF, and V all reported beats on both the revenue and earnings lines.  Meanwhile, CAKE, CMG, CB, EQT, NGVT, NGD, PK, RSG, and UNM missed on the revenue line while beating on earnings.  On the other side, DVA, FE, RYI, and UIS beat on revenue while missing on earnings.  However, CZR, CHE, EA, FSLR, LSTR, OI, OKE, and WERN missed on both the top and bottom lines. (AMD disappointed with its forward guidance. However, GOOGL’s beat gave hope to all the big tech names as Ad revenue surged and the stock price went up almost 6% in after-hours trading.)

In stock news, on Tuesday, Reuters reported that VLKAF (Volkswagen) Audi division is in talks with a potential investor for its troubled Brussels plant.  (VLKAF announced in July it is considering closing the plant and laying off the 3,000 employees that work at that facility.)  At the same time, ADDYY (Adidas) announced that it saw strong growth in China during Q3 in contrast to rival brands.  The company said that as a result of demand, they have opened 200 new stores in smaller Chinese cities with a goal of getting to 300 stores by the end of year.  Later, Reuters reported that AVGO is working with OpenAI and TSM to create new AI chips.  (This was a relief for AVGO supporters that had been under pressure from fear that OpenAI would create competition for AVGO chips.)  At the same time, the Wall Street Journal reported that V is planning to lay off about 1,400 employees and contractors by the year end. Later, an SEC filing showed that Meme-stock influencer Keith Gill (Roaring Kitty) has liquidated his entire stake in CHWY.  This comes after he took a 6.6% ownership stake of the company in July.  (CHWY was down more than 10% in after-hours trading on the news.)

In stock legal and governmental news, on Tuesday, the news got worse for BA as the Dept. of Defense Office of Inspector General released a report alleging that the company overcharged the Air Force nearly 8,000% for soap dispensers and $1 million for a dozen spare parts.  Later, the US State Dept. approved the sale of $744 million of RTX-made medium-range air-to-air missiles to Denmark.  At the same time, MCD was sued in what is proposed to be a class-action lawsuit stemming from last week’s E.coli outbreak linked to onions on MCD’s Quarter Pounder burgers.  After the close, Reuters reported that BAC is in talks with the CFPB in an effort to settle the agency’s charges related to fraud and scams on the bank-owned Zelle payment app.  (The report said BAC is also considering litigation against the CFPB if a settlement can’t be reached.)

In miscellaneous news, on Tuesday, Reuters reported that sources tell it China is now considering approving $1.4 trillion in additional debt in the next few years, with money earmarked for reviving its economy.  Other news out of the same Chinese government meetings said President Xi urged provincial officials to pursue the reform initiatives that were identified for them.  Xi also “urged” those officials to meet their assigned social and economic targets.  Elsewhere, in Canada, Canadian deputy foreign minister Morrison told Parliament that Indian Home Affairs Minister Shah was the one who authorized a wave of violence (including homicide) while attempting to suppress Sikh activists on US soil. 

In Middle East news, on Tuesday, Hezbollah named cleric Naim Qassem as its new leader.  The Israeli Defense Minister responded by saying that it was a “Temporary appointment…not for long.”  In the streets, Isael conducted 150 airstrikes on Tuesday.  To the north, Israeli strikes killed 82 and wounded many times that number in Lebanon.  Further South, in Gaza, an IDF air attacks killed 110 with dozens more still missing as it collapsed a five-story residential building.

Overnight, Asian markets were almost red across the board.  Only Japan (+0.96%) was in the green, while Hong Kong (-1.55%), South Korea (-0.92%), and Australia (-0.83%) led the region lower.  In Europe, we see the same picture taking shape with only Norway (+0.46%) in the green at midday.  The CAC (-1.39%), DAX (-0.84%), and FTSE (-0.26%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed open.  The DIA implies a -0.20% open, the SPY is implying a +0.12% open, and the QQQ implies a +0.23% open at this hour.  At the same time, 10-Year bond yields are down sharply to 4.218% and Oil (WTI) is up 1% to $67.89 per barrel in early trading.

So far this morning, AER, ADP, AXTA, BLCO, BIIB, EAT, BG, CRTO, EXC, GRMN, GEHC, HUM, JKS, KEX, LKNCY, OMF, OPCH, OSK, PSN, REYN, TEL, TEX, TT, UMC, UTHR, VRSK, and XPO all reported beats on both the revenue and earnings lines.  Meanwhile, CHEF, KHC, and NI missed on revenue while beating on earnings. On the other side, ARCC, CWEN, GPN, GPI, NBIX, SITE, SW, and ZBH beat on revenue while missing on earnings.  However, CAT, CDW, DAN, LLY, MLM, OTIS, and SLGN missed on both the top and bottom lines.

The major economic news scheduled for Wednesday include October ADP Nonfarm Employment Change (8:15 a.m.), Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index (all at 8:30 a.m.), September Pending Home Sales (10 a.m.), and EIA Weekly Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, and ZBH.  Then, after the close, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

With that background, it looks like the market is undecided early this morning. QQQ gapped higher on the strength of GOOGL (+6.64%) earnings and despite the drag from AMD (-7.95%). However it has printed a Doji since that premarket gap. For their part, SPY and DIA opened closer to flat and have also printed indecisive candles in the early session. With QQQ and SPY above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom portion of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green again this morning. As mentioned, AMD is by far (by more than 7%) the anchor on that group while GOOGL is 4% out in front leading the gainers higher in premarket. GOOGL has also surpassed normal leader NVDA (-0.37%) in terms of leading dollar-volume trading. Once again, premarket volume is very light today.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened higher across the major market index ETFs. SPY gapped up 0.60%, DIA gapped up 0.59%, and QQQ gapped up 0.63%.  From there, ground sideways in the top half of its gap, DIA chopped sideways not too far above its opening level, and QQQ was a Bull Trap as it slowly and steadily sold back toward the prior close. This went on the rest of the day.  This action gave us decidedly black-bodied candles in the SPY and QQQ but a white-bodied indecisive candle in the DIA.  SPY gapped up and then printed a black-body candle that approached, but did not retest its T-line (8ema) from above.  QQQ gapped up and then traded back toward its prior close on a large, black-body candle.  Meanwhile, DIA printed a cap-up, white-bodied, Bullish Harami candle that is mostly upper wick.  This happened on well-below-average volume in the SPY and QQQ, but just below-average volume in the DIA.

On the day, nine of the 10 sectors were in the green with Financial Services (+1.43%), Basic Materials (+1.07), and Consumer Cyclical (+1.01%) well out in front leading the way higher.  On the other side, Energy (-0.85%) was by far (by more than 1.2 percent) the weakest sector.  Meanwhile, SPY gained 0.31%, DIA gained 0.70%, and QQQ gained 0.02%.  VXX plummeted 4.67% lower to close at 52.71 and T2122 was dead flat, just outside its oversold territory, to remain at the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields jumped again to close at 4.28% while Oil (WTI) plunged 5.36% on to close at $71.65 per barrel. So, Monday was a blah day in the market where most of the action came at the open (from exuberance over the end of the current round of Israel-Iran direct conflict) but then it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

There was no major economic news scheduled for Monday.

After the close, BRO, CDNS, CWH, CR, ESI, EHC, FFIV, F, QUAD, SKY, UCTT, WELL, and WM all reported beats on both the revenue and earnings lines. At the same time, SBAC and VFC both missed on revenue while beating on earnings. On the other side, AMKR and FLS beat on revenue while missing on earnings.  However, CVI and LEG missed on both the top and bottom line.

In stock news, on Monday, T announced it had signed a $1 billion multi-year deal with GLW to buy fiber and other products.  At the same time, TTE announced it had sold a 50% stake in its Iraqi 1.25-gigawatt solar project to QatarEnergy.  (Financial terms of the deal were not disclosed.)  Later, Bloomberg reported that RUN is in discussions with several datacenter developers to provide solar power.  (RUN is currently strictly in the residential solar business and this would be its entry into the commercial market.) At the same time, Reuters reported that META is building its own AI-based search engine to compete with GOOGL, MSFT (Bing), and ChatGPT’s AI-search.  Later, the head of the VLKAF (Volkswagen) labor union told Reuters Monday that the company has told the union it plans to close three German plants, lay off tens of thousands of workers, and shrink the size of other non-German European plants.

Meanwhile, MCD announced it has begun selling Quarter Pounder burgers again at more than 900 stores across 13 states where they had been pulled from the menu for a week. MCD says the burgers are now being sold without onions and the company has cut ties (at least temporarily) with the vendor of the contaminated onions. At the same time, AAPL released a new phone operating system, an update that includes its previously announced Apple Intelligence AI system.  (This included versions for iPad, iPhone, and Mac.)  At the same time, Reuters reported that RPD has now engaged investment bankers due to buyout talks with private equity firms that have advanced.  The suitors of RPD include EQT, Advent, and BCSF.  Later, WMT announced it is cutting in half the price (from $98 to $49) of its “Walmart Plus” subscription service in an attempt to make up ground on rival AMZN with their Prime service.  After the close, NEE announced it will sell shares to raise $1.5 billion to fund new energy projects. At the same time, Japanese publication Nikkei reported that TM and NPPXF (Nippon Telegraph and Telephone) will jointly invest $3.26 billion in R&D toward AI software for self-driving cars.

In stock legal and governmental news, on Monday, Reuters reported that Indonesia has blocked the sale of AAPL’s iPhone 16 in the country.  The reason is that Indonesia requires that smartphones sold in the fourth-largest population country must have at least 40% locally-manufactured parts.  Later, JPM announced that it has begun suing customers for “check fraud,” alleging the customers improperly withdrew excessive funds to take advantage of a JPM system glitch that temporarily allowed ATM users to withdraw “infinite cash” regardless of account balance. So far, suits have been files against two individuals and two businesses across three cities.  In other JPM news, JPM CEO Dimon blasted several financial regulatory agencies Monday.  Dimon said, “It’s time to fight back.”  He went on to say, “We are suing our regulators over and over and over because things are becoming unfair and unjust, and they are hurting companies.” 

Elsewhere, after the close, the 5^th Circuit Court of Appeals unanimously ruled (3-0) that LUV must face a lawsuit alleging the company illegally intimidated and disciplined pilots who were part of the 9,000-member pilot union.  At the same time, the Dept. of Energy issued another solicitation, this time for another 3 million barrels of crude, to refill the Strategic Petroleum Reserve. Later, the Dept. of Treasury finalized rules that limit US investments into AI and other technologies in China.  The new rules will replace President Biden’s executive orders on the issue as of January 2. At the same time, TPR and CPRI filed notices of a joint appeal of the US District ruling last week that killed their $8.5 billion merger by ruling in favor of the FTC.

In miscellaneous news, on Monday, Reuters reported that if North Korean forces enter into direct fighting against Ukrainians, there would be no new restrictions on the use of US weapons. Pentagon spokeswoman Sabrina Singh said, “A portion of those (North Korean) soldiers have already moved closer to Ukraine, and we are increasingly concerned that Russia intends to use these soldiers in combat or to support combat operations against Ukrainian forces in Russia’s Kursk Oblast near the border with Ukraine.” Elsewhere, BA announced it had raised $21 billion through the sale of 90 million common shares and $5 billion worth of stock warrants all on Monday as the company tries to improve its balance sheet and avoid a credit downgrade to junk status.  Meanwhile, Bitcoin briefly traded above $71,000 Monday for the first time since June.

In Middle East news, on Monday Israel declared the UNWRA agency to be a terrorist organization and essentially threw the UN out of the country.  Israel alleged hundreds (of the thousands) of UNWRA aid workers had ties to Hamas “terrorists” and also that Hamas had military assets in tunnels under UNWRA facilities. Since UNWRA is the group that distributes the vast majority of aid in Palestine and provides a large portion of medical assistance to Palestinians, the ties are inevitable and laws could be another crushing blow aimed at dislodging/ejecting Palestinians. However, the two laws were widely condemned by Western countries and they did not go into effect immediately. So, theoretically, the laws could be another bargaining ploy by Israel or they might be scrapped if other countries apply enough actual pressure on them.  In addition, new milestones of 43,000 Palestinians and at least 2,500 Lebanese killed by Israel since October 7, 2023 were reached Monday.  Elsewhere, Israeli air strikes killed 60 people in Lebanon and destroyed two more border crossings between Lebanon and Syria. After these (and previous) strikes, only three border crossings are still in place between those two countries.

In other war news, the US Dept. of Defense increased its estimate of the number of North Korean soldiers headed to the front lines in the Kursk region. DoD now estimate there are 10k North Korean troops, which is more in-line with foreign government estimates and most reporting.  For its part, Ukraine reported Monday that it has intelligence indicating that 5,000 of those North Korean troops are already headed to the front line in Kursk.

Overnight, Asian markets were mostly in the green.  Just four of the 12 exchanges in the region were below break-even.  Japan (+0.77%), India (+0.52%), and Hong Kong (+0.49%) paced the gainers while Shenzhen (-1.33%), Taiwan (-1.17%), and Shanghai (-1.08%) led the losses.  Meanwhile, in Europe, we see a similar picture with 11 of the 14 bourses in the green at midday.  The CAC (+0.48%), DAX (+0.39%), and FTSE (+0.15%) lead the region higher in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a flat start to the day.  The DIA implies a -0.19%) open, the SPY is implying a -0.06% open, and the QQQ implies a +0.3% open at this hour.  At the same time, 10-Year bond yields are up to 4.296% and Oil (WTI) has rebounded 1.01% overnight to $68.07 per barrel in early trading.

The major economic news scheduled for Tuesday includes Preliminary September Goods Trade Balance and Preliminary September Retail Inventories (both at 8:30 a.m.), October Conference Board Consumer Confidence and September JOLTS Job Openings (both at 10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, and ZBRA.  Then, after the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN report.

In economic news later this week, on Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, GLW, CROX, ESAB, FOR, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PFE, RCL, SOFI, THC, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, AMT. BP, CHKP, HSBC, PYPL, PSX, RITM, and SWK missed on revenue while beating on earnings.  On the other side, INCY beat on revenue while missing on earnings.  However, ABG, DHI, EXP, EPD, GPK, PAG, and XRX missed on both the top and bottom lines. (It is worth noting the HSBC announced a new $3 billion share buyback program after their beat.)

With that background, it looks like the market is undecided early this morning, but is slightly leaning to the Bearish side. All three major index EFTs are not far from Monday’s closing price. DIA has given us the most body in the premarket but is only a quarter of a percent lower than its prior close. For its part, SPY is retesting its T-line (8ema) from above. Both SPY and QQQ are showing more wick than body, indicating indecision, at this point. With QQQ and SPY (barely) above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom of its mid-range, but not yet in the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green this morning. AMD (+0.60%) is leading the gainers while AAPL (-0.52%) is the laggard. NVDA (-0.28%) and TSLA (+0.09%) are neck-and-neck in terms of leading dollar-volume trading. Regardless, it is worth nothing that premarket volume is very light today.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened higher to start the day Friday.  SPY gapped up 0.41%, DIA gapped up 0.38%, and QQQ gapped up 0.58%.  At that point, SPY and QQQ rallied higher for an hour as DIA chopped sideways for the same period.  From there, all three major index ETFs sold off until 2:15 p.m.  Then for the last hour and 45 minutes all three bounced and then fell back to close near the lows.  This action gave us a gap-up, black-bodied, Spinning Top type candle with most of the wick on the top.  It retested from below and failed the test of its T-line (8ema).  At the same time, QQQ printed a gap-up Shooting Star type of candle that crossed back above its T-line.  For its part, DIA gave us a gap-up, large black-bodied, outside day candle that retested the T-line from below and failed.  This happened on average volume in the QQQ and above-below-average volume in SPY and DIA.

On the day, seven of the 10 sectors were again in the red with Utilities (-1.19%) and Financial Services (-1.11%) well out in front leading the way lower.  On the other side, Technology (+0.56%) was by far the strongest sector.  Meanwhile, SPY lost 0.03%, DIA lost 0.62%, and QQQ gained 0.61%.  VXX spiked 4.70% higher to close at 55.29 and T2122 dropped to just outside its oversold territory to the bottom of the mid-range at 21.14.  At the same time, as mentioned, 10-Year bond yields rose again to close at 4.24% while Oil (WTI) jumped 2.05% to close at $71.65 per barrel. So, it was a volatile in the SPY and QQQ, but really just a Bears’ paradise all day in the DIA. 

The major economic news scheduled for Friday included the Preliminary Sept. Core Durable Goods Orders, which was up 0.4% (compared to a forecasted decline of 0.1% but down from August’s +0.6%).  On the headline number, Preliminary Sept. Durable Goods was down 0.8% (versus a forecast of -1.1% and flat from August’s -0.8%). Later, Michigan Consumer Sentiment was up to 70.5 (compared to the forecast and Sept. reading of 68.9).  At the same time, Michigan Consumer Expectations were up to 74.1 (versus a forecast and prior reading of 72.9).  On the outlook side, Michigan 1-Year Inflation Expectations were DOWN significantly to 2.7% (compared to a previous value of 2.9%).  Looking even further out, Michigan 5-Year Inflation Expectations stayed flat at 3.0% (with the same 3.0% forecast and prior value).

After the close, E reported misses on both the revenue and earnings lines.

In stock news, on Friday, the Wall Street Journal reported BA is weighing the sale of its space business as part of the process of streamlining and freeing up cash. At the same time, META announced it had signed a partnership with Reuters to use the company’s news content in its AI chatbot.  (Financial terms of the deal were not disclosed.)  Later, NVDA again briefly passed AAPL to become the world’s most valuable company. (Both companies ended the day with roughly a market capitalization around $3.5 trillion.)  MSFT, which had taken that crown in June, closed the session with a $3.18 trillion cap.  Late Friday afternoon, COST recalled private-label salmon products due to listeria risk after a recall from it private meat supplier Acme Smoked Fish Corp. 

In stock legal and governmental news, on Friday, in the UK, London’s High Court ruled in favor of BCS, by reducing a shareholder lawsuit (over misleading investors about its private “dark pool” trading) by more than half.  The ruling reduced the lawsuit amount by $428 million to just under $300 million.  Later, a US District Judge blocked the pending $8.5 billion merger of TPR and CPRI, in a victory for the FTC.  At the same time, a different US District Judge approved a $102 million settlement of the US Justice Dept. civil claim against the owner of the ship that struck the Baltimore Francis Scott Key Bridge, killing six people.  (That amount covered the Federal costs to respond to the wreck and clear the bridge debris. Separately, the state of MD is suing the shipping company for the cost to replace the bridge.) Later, the Nuclear Regulatory Commission announced it has begun the long process of reviewing the restart of CEG’s Three-Mile Island nuclear power plant (after CEG signed a deal to sell the power it would produce to MSFT).

Elsewhere, LYFT agreed to pay $2.1 million to settle FTC charges that it misled prospective drivers about how much money they could earn.  Later, a federal jury found that MASI had violated two AAPL patents with its smartwatches, but did not violate other patents as AAPL had claimed. The damages awarded were a paltry $250 (not $250k, or $2.50 million…just $250, which is an infinitely small portion of what AAPL spent on the suit). This was AAPL’s countersuit to MASI’s 2022 US Intl. Trade Commission complaint that had blocked the import of Apple watches and forced AAPL to remove certain technology before resuming import.  After the close, DAL filed suit against CRWD in GA state court in relation to the global systems outage DAL had suffered in July.

In miscellaneous news, on Friday, there were separate reports the China had targeted the phones of senior members of Vice President Harris’ campaign and her opponent, in what was called a cyber-espionage attack.  This was done by penetrating the VZ phone network.  Elsewhere, the Panama Canal reported a 9.5% increase in annual profit to $3.45 billion despite a severe drought that reduce the number of vessels allowed to transit the canal.  (The canal handled 423 million tons of cargo with an average of 27.3 ships per day transiting the canal.  This was down from 36 ships per day the previous year.  However, a 5% decrease in operating costs and price increases provided for a strong year.) 

Meanwhile, the state of NM released a study on Friday regarding proposed “setback” regulations (which would prevent drilling within 2,250 feet from residential, educations, health or correctional institutions or within 650 feet of streams, lakes, ponds, wetlands, or irrigation infrastructure). The study indicated the proposed regulations would impact 15% of new wells.  (NM is the second-largest oil producing state in the US.  The study said this could eventually curtail up to 5.4% of the stats’s potential future oil output.  This refers to a reduction of increases.) Finally, on Sunday, Japan’s Liberal Democratic Party (which had been in power since 2009) suffered major setbacks and lost its majority in Parliament during Sunday snap elections. (The LDP and its coalition partner only secured 215 seats, with 233 needed for a majority. Prior to Sunday, the LDP and its junior partner party had 279 seats.)  This deals a major blow to PM Ishiba who was elected from withing the LDP and only took office on October 1^st.

In other war news, South Korea increased its estimate of North Korean troops sent to Russia to fight against Ukraine to 12,000.  (The US has said it has proof of 3,000 North Korean troops in training.)  Meanwhile, on Saturday, Norway confirmed that 1,500 of the North Koreans have already been deployed to the lines in the Kursk region. Maybe buoyed by the new source of troops, on Sunday Russia’s Putin said “there would be no trade” to end the war.  Most analysts say this means he isn’t interested in negotiations. Still, less than a week before, Putin said he’d consider any deal that acknowledged the situation on the ground (in other words, any deal that gives Russia all the land it has taken since 2014…there was no word whether that means he’s willing to give up the small area of Kursk now held by Ukraine).

Overnight, Asian markets were mixed but leaned toward the green side.  Japan (+1.82%), South Korea (+1.13%), and Shanghai (+0.68%) led the gainers.  Meanwhile, Thailand (-0.71%) and Taiwan (-0.64%) paced the losses. In Europe, the picture redder at midday with only three of the 14 exchanges in the green. The CAC (+0.18%), DAX (-0.20%), and FTSE (-0.31%) lead the region lower in early afternoon trade. In the US, as of 7:30 a.m., Futures point toward a gap higher to start the day. The DIA implies a +0.41% open, the SPY is implying a +0.49% open, and the QQQ implies a +0.63% open at this hour.  At the same time, 10-Year bond yields are up to 4.258% and Oil (WTI) has plummeted 5.89% to $67.56 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include ARLP, CX, CNP, FMX, ON, and PHG.  Then, after the close, AMKR, BRO, CDNS, CWH, CR, CVI, ESI, EHC, FFIV, FLS, F, LEG, QUAD, SBAC, SKY, UCTT, VFC, WELL, and WM report.

In economic news later this week, on Tuesday, we get Preliminary September Goods Trade Balance, Preliminary September Retail Inventories, October Conference Board Consumer Confidence, September JOLTS Job Openings, and API Weekly Crude Oil Stocks.  Then Wednesday, October ADP Nonfarm Employment Change, Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index, September Pending Home Sales, and EIA Weekly Crude Oil Inventories are reported. On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Tuesday, we hear from ATI, AMT, ABG, BP, CHKP, GLW, CROX, DHI, EXP, ECL, EPD, ESAB, FOR, FELE, ULCC, GPK, HNI, HSBC, HUBB, INCY, ITT, JBLU, LDOS, MAS, MCD, MSCI, NVS, PYPL, PAG, PFE, PSX, RITM, RCL, SOFI, SWK, SYY, THC, UFPI, XRX, ZBRA, AMD, ALHC, ALSN, GOOGL, BMRN, BXP, CZR, CAKE, CHE, CMG, BC, EXE, DVA, EIX, EA, EQT, EXR, FSLR, FE, FMC, GOOG, IEX, NGVT, LSTR, LFUS, MCY, MTH, MOD, MDLZ, NGD, OI, OKE, PK, QRVO, RSG, SNAP, SYK, UNM, V, and WERN.  Then Wednesday, ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, ZBH, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.  On Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

So far this morning, CX and PHG missed on revenue while beating on earnings.  However, ARLP and CNP missed on both the top and bottom lines.

With that background, it looks like the Bulls are indecisively in-charge early in all three major index ETFs. All three opened the premarket higher, but have printed indecisive candles (mostly wick) since that open. SPY is back above its T-line (8ema) leaving only DIA below its own T-line. With that said, two of the three major index ETFs above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back at the bottom of its mid-range, but not yet oversold. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, all 10 are in the red this morning. GOOGL (+2.17%) is leading the rally while TSLA (+0.79%) is the leading dollar-volume trader, nearly doubling the normal biggest dog, NVDA (+1.08%) in dollar-volume traded so far this morning.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Tuesday, markets gapped down at the open.  SPY gapped down 0.44%, DIA gapped down 0.47%, and QQQ gapped down 0.56%. From there, all three major index ETFs slowly rallied to recross their gaps, reaching the highs of the day about 2:05 p.m.  From there, all three pulled back modestly before rallying back toward the highs, only to take profits the last 5 minutes.  This action gave us white-bodied, Spinning Top type candles in all three major index ETFs.  All three retested their T-line (8ema), SPY and QQQ from above and DIA from below…and all three passed that test, closing above.  This happened on below average volume in all three major index ETFs yet again.

On the day, eight of the 10 sectors were in the red with Industrials (-0.91%) out in front, leading the market lower.  On the other side, Consumer Defensive (+0.43%) was well out in front, holding up better than other sectors.  Meanwhile, SPY lost 0.05%, DIA lost 0.01%, and QQQ gained 0.11%.  VXX was just on the red side of flat to close at 51.15 and T2122 dropped again but remains just outside of oversold territory at the bottom of its mid-range at 22.96.  At the same time, 10-Year bond yields rose to close at 4.206% while Oil (WTI) popped 2.38% to close at $72.24 per barrel. So, the Bears gapped the whole market lower, but the Bulls immediately stepped in to buy the dip and slowly bring all three major index ETFs back to flat.

The major economic news scheduled for Tuesday was limited to the API Weekly Crude Oil Stocks report, which showed a larger inventory build than was expected at +1.643 million barrels (compared to a forecasted +0.700 million barrels and the prior week draw down of 1.580 million barrels).

After the close, AGR, EWBC, ENVA, MTDR, PKG, RHI, STX, LRN, TXN, VLRS, and VMI all reported beats on both revenue and earnings. Meanwhile, BKR, CSGP, RRC, PFSI, and WFRD missed on revenue while beating on earnings. However, CNI and NBR missed on both the top and bottom lines.

In stock news, on Tuesday, TGT announced it was lowering the price of 2,000 items ranging from snacks to cold medicine ahead of the holiday season. (The bet is that by lowering the cost of essentials, shoppers will also buy higher-ticket gift items while they are in-store.)  At the same time, Reuters reported that AMZN has imposed severe price caps on what merchants can charge for items in its new low-cost storefront aimed at competing with Temu.  (These include $20 for sofas, but go on to prescribe max prices for 700 items.)  Later Reuters also reported that FIVN is under pressure by a second activist investor (Legion Partners) who is pushing for cost cutting and board seats. At the same time, CG announced it has dropped out of the bidding for the warship unit of German shipbuilder TYEKY (Thyssenkrupp).  Later, AMZN said they were ending same-day delivery service from brick-and-mortar retailers. This ends the program that was touted as “Amazon Today.” The bulk of the deliveries will end by December 2.

Elsewhere, STLA’s Ram brand CEO Feuell told a Reuters event that the company was expanding its Mexican truck plant as a “relief valve” for US factories reaching capacity soon.  (She avoided answering why the company was expanding capacity in Mexico rather than the US, but said the measure “was not a cost-cutting move.”)  At the same time, Reuters also reported that ALTR is exploring a potential sale with potential bidders being competitors PTC and CDNS. Later, WMT announced it will begin delivering prescriptions along with groceries as a single order as quickly as 30 minutes.  (Members of WMT’s $98 membership will get the service for free while non-members will pay $9.95 per delivery.) SJM announced the sale of its Voortman cookie brand to Second Name Brands for $305 million in cash.  After the close, SBUX suspended its annual forecast while the new CEO prepares a turnaround plan.

In AI news, on Tuesday, BLK announced it is tapping into the AI frenzy with two new AI-focused ETFs BAI (iShares AI Innovation and Tech Active) and TEK (iShares Technology Opportunities Active ETF).  Later, Reuters reported that QCOM and GOOGL had signed a partnership to offer chips and software to allow automakers to develop their own AI voice assistants for drivers. At the same time, AMZN-backed AI startup Anthropic announced “AI agents” built to enhance productivity by automating complex tasks.  This is a direct competitor to MSFT’s Co-Pilot-based Agents and yet to be announced offerings from GOOGL and META.

In stock legal and governmental news, on the NHTSA announced HMC 780k vehicles in the US over fuel pump crack concerns.  At the same time, RBLX announced it would open an office in Turkey and hire local-language moderators if the country restores access to its platform.  (A Turkish court blocked RBLX from the country to “ensure protection of our children” in August.)  Later, US Energy Sec. Granholm said the dept. was working as fast as it can to finalize $1.7 billion in EV conversion grants, including $500 million for GM and $585 (two grants for two projects) million for STLA.  At the same time, the FAA finalized comprehensive pilot training and certification rules for flying air taxis such as those from JOBY and ACHR. Later, the SEC approved options listings for three Bitcoin ETFs (not 11 as previously reported).

Elsewhere, the SEC settled fraud charges with shortseller Citron Research associate Left for $1.8 million.  Later, TSM notified the US Commerce Dept. that one of its chips had been found in Huawei’s top-end (widely seen as the most advanced AI smartphone) phone.  This is a violation of US export restrictions, likely through strawman firms who acted as the original buyer of the TSM chips.  After the close, the CDC announced an E, coli outbreak had been linked to MCD quarter pounder burgers that have resulted in one death, 10 hospitalizations, and dozens of illnesses.  (MCD fell 9% in after-hours trading.)  At the same time, a US District Judge ruled in favor of META in a lawsuit over child safety claims due to inadequate disclosures.  Later, WMT agreed to pay $7.5 million to resolve charges of illegally disposing of hazardous medial waste into CA landfills.

In miscellaneous news, on Tuesday, the New York City Comptroller announced a plan to divest NYC pension funds from fossil fuel mid-stream and downstream companies.  Meanwhile, the New York Times reported that JPM CEO Dimon would consider a role in government if Vice President Harris wins the election, but is not making his position known publicly for fear of retribution by her disgraced opponent. Elsewhere, oil-industry analysts pointed out a unique risk factor for CA. The US is by far the world’s largest oil producer (by more than 3 million barrels per day). However, CA has no pipeline access oil from Texas, mid-western, or Ohio Valley oil fields. So, about 60% of CA oil demand is served by oil imports from the Middle East. As a potential Middle East war (and oil flow disruption) lurks ahead of Israeli attacks on Iran, that raises the specter of major cost increases or shortages in CA.  (Even the US Strategic Petroleum Reserve oil if far from CA, located along the TX and LA Gulf Coasts.)  Finally, the IMF said Tuesday that the global battle on post-pandemic inflation is “largely won.”  In an upbeat assessment, the IMF World Economic Outlook said, “In most countries, inflation is now hovering close to central bank targets… The decline in inflation without a global recession is a major achievement.”

In Middle East news, on Tuesday, Israeli attacks in Gaza and Lebanon continued. The IDF seems to be targeting healthcare facilities and homes more. The water supply at the Jabalya refugee camp in Northern Gaza ran out entirely, leaving thousands with no water at all. At the same time, a major Palestinian hospital (the Kamal Adwan Hospital) reported it was completely out of blood and medical supplies as an IDF siege of the facility continues.  Further North, Lebanon reported the most deaths in a single day since the most recent Israeli bombing and invasion campaign began (63 deaths and several hundred wounded).  This included bombing strikes on four Beirut hospital and medic facilities. In addition, several individual ambulances were also blown up.  (All medical facility attacks are war crimes.)  Meanwhile, US Sec. of State Blinken met with Israeli PM Netanyahu for two hours as Blinken tried to get the Israelis to agree to a ceasefire. Sourced, but un attributed, post-meeting reports indicate Israel has rejected the idea of ceasefire again, but will allow more humanitarian aid into Gaza and Lebanon, though not as much as the US and world have demanded. (With Israel completely in control on the battlefield with superior firepower and resources, they want to press their advantage and kill as many of their enemies as possible while they can, regardless of civilian casualties.)

In mortgage news, rates have spiked in recent weeks but remain at 6.52% on average nationally for a 30-year, fixed-rate, conforming loan. Demand for refinance mortgages dropped 8% last week compared to the prior week. Applications for a new home purchase mortgage fell 5%.  Together this meant that total mortgage demand was down 6.7% on the week versus the week prior. 

Overnight, Asian markets were mixed with five of the 12 exchanges in the green.  Thailand (-1.24%) was by far the biggest loser while Hong Kong (+1.27%) was by far the biggest winner.  Meanwhile, in Europe, the bourses are heavily in the red with just two of 14 exchanges showing green at midday.  The CAC (-0.64%), DAX (-0.22%), and FTSE (-0.41%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.47% open, the SPY is implying a -0.20% open, and the QQQ implies a -0.30% open at this hour.  At the same time 10-Year bond yields are up again to 4.228% and Oil (WTI) have dropped 2.15% to $70.20 per barrel in early trading.

The major economic news scheduled Wednesday includes September Existing Home Sales (10 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.), and the Fed Beige Book (2 p.m.).  We also hear from Fed Governor Bowman (9 a.m.).  Major earnings reports scheduled for before the open include APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, and WGO.  Then, after the close, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.

In economic news later this week, on Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, we hear from ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, ATLKY, BSX, CME, KO, DB, EVR, HLT, LII, EDU, NTRS, ROP, TMHC, TDY, TRU, VRT, and WAB all reported beats on both the revenue and earnings lines.  Meanwhile, T, AVY, KBR, LAD, LYG, COOP, ODFL, TMO, and TNL missed on revenue while beating on earnings.  On the other side, GEV, NEE, BPOP, and SF beat on revenue while missing on earnings.  However, BA, CSTM, GD, and WGO missed on both the top and bottom lines.

With that background, it looks like the Bears are in charge again early in all three major index ETFs. All three opened the premarket lower and have traded down since then. SPY is retesting its T-line (8ema) from above while DIA is moving away from its own T-line to the downside. With that said, two of the three remain above (barely) their T-line again. So, the broader market short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back in the lower end of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the red this morning. MSFT (+0.50%) is holding up best. However, the biggest dog, NVDA (-0.64%) is leading the majority lower in price move on three times as much dollar-volume as the next closest ticker so far this morning.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened lower on Monday prior to DIA diverging to the downside.  SPY opened down 0.11%, DIA opened 0.05% lower, and QQQ gapped down 0.22%.  At that point, QQQ rallied sharply to recross the opening gap and reach the high of the day at 10:20 a.m. before selling off sharply again, finding the low of the day at 11:30 a.m.  From there, QQQ slowly rallied slowly back up across the gap before meandering sideways around Friday’s closing level and closing on the plus side.  Meanwhile, after its open, SPY slowly meandered back up across the opening gap to find its high of the day at 10:20 a.m. Then it traded in-sync with QQQ, selling off hard to reach the low of the day at 11:35 a.m. and then slowly drifting higher but never quite getting back to its opening level.  For its part, after the open, DIA immediately sold off sharply until 11:30 a.m. and then traded sideways along the lows the rest of the day. This action gave us divergent daily candles. SPY printed a black-body Doji that retested its T-line (8ema) and passed that test.  DIA gave us a large, black-bodied candle that also retested its T-line and closed just barely above.  Finally, QQQ printed a white-bodied candle (that retested and passed the test of its T-line) that was about half lower wick.  This happened on below average volume in all three major index ETFs.

On the day, nine of the 10 sectors were in the red with Communication Services (-1.25%) out in front, leading the market lower.  On the other side, Technology (+0.16%) was the only sector in the green.  Meanwhile, SPY lost 0.16%, DIA lost 0.76%, and QQQ gained 0.19%.  VXX was just on the plus-side of flat to close at 51.35 and T2122 dropped all the way back into the bottom third of its mid-range to close at 33.14.  At the same time, 10-Year bond yields fell to close at 4.192% while Oil (WTI) climbed 1.68% to close at $70.38 per barrel. So, the Bulls were in-charge pretty much all day on what was also an indecisive day.  NFLX (+11.09%) was among the leaders of this charge after its blowout earnings Thursday evening.  (For the week, SPY gained 0.86%, DIA gain 0.91%, and QQQ gained 0.22%.  This was the sixth-straight week of gains for all three major index ETFs.)

The major economic news scheduled for Monday was limited to the September US Leading Economic Indicators Index, which came in lower than expected at -0.5% (compared to a -0.3% forecast and a -0.3% August reading).

In Fed news, on Monday, Dallas Fed President Logan indicated she sees both more rate cuts and Balance Sheet shrinkage ahead. She said, “The economy is strong and stable, but, meaningful uncertainties remain in the outlook.” Logan continued, “If the economy evolves as I currently expect, a strategy of gradually lowering the policy rate toward a more normal or neutral level can help manage the risks and achieve our goals.” Regarding Quantitative Tightening, she said, “At present, liquidity appears to be more than ample” … “one sign liquidity remains in abundant supply, and not merely ample, is that money market rates continue to generally run well below the Fed’s interest on reserve balances rate.”  She went on to say that the FOMC should be able to tolerate normal, temporary volatility in the money markets. However, she went on to say that, “reducing the (reverse repo) interest rate could incentivize participants to return funds to private markets.”  However, Logan concluded by saying that getting mortgage bonds off the Fed Balance Sheet is “not a near-term issue in my view.” (i.e. not a massive priority).

Later, Minneapolis Fed President Kashkari said he also expects modest rate cuts ahead.  Kashkari said, “Right now I see modest cuts over the next several quarters.”  However, he also indicated that a weakening of the labor market might need to be met with stronger cuts.  He said, “If we saw a weakening, like real evidence that the labor market is weakening quickly, then that would tell me, as one policymaker, ‘Hey, maybe we ought to bring down our interest rate more quickly than I currently expect,’” Kashkari continued, “We want to keep the labor market strong and we want to get inflation back down to our 2% target.”  He then concluded with the normal Fed boiler plate statement that “interest rates will depend on the data.”  Elsewhere, Kansas City Fed President Schmid said that he supports “a cautious and deliberate” approach to rate cuts.  Schmid said, “While I support dialing back the restrictiveness of policy, my preference would be to avoid outsized moves, especially given uncertainty over the eventual destination of policy and my desire to avoid contributing to financial market volatility.” He continued, “Lowering rates in a gradual fashion would provide time to observe the economy’s reaction to our interest rate adjustments and give us the space to assess at what level interest rates are neither restricting nor boosting the economy.”  Finally, San Francisco Fed President Daly said Monday that she has not seen anything to suggest the FOMC would stop cutting interest rates.  She said interest rates are “absolutely still high enough that they are restraining the economy.”

After the close, BOKF, CADE, NUE, SAP, and ZION all reported beats on both the revenue and earnings lines. Meanwhile, AGNC, ARE, SIGI, and WTFC beat on the revenue line while missing on earnings.  On the other side, MEDP and WRB missed on revenue while beating on earnings.  However, TFII missed on both the top and bottom lines.

In stock news, on Monday, RCDOF announced it plans to divest its Defense business in order to focus on Environmental Consulting.  (No details were announced, but they recently got a $385 million US Army contract extension that runs through 2027.) Later, XLMDF announced it has a conditional agreement to sell its North American business to SRAD for $30 million in cash ($20 million up front and up to $10 million based on unit performance). At the same time, SNY said it has entered exclusive talks to sell a 50% controlling stake in its consumer health unit to private equity firm Clayton Dubilier & Rice. (The unit had been valued at $17 billion earlier this year.)

Meanwhile, UBS announced it agreed to a deal to sell a 50% stake in the Swisscard business acquired in the CS acquisition to AXP.  (The terms of the deal were not disclosed.) At the same time, DIS announced it will appoint former MS CEO Gorman as the new DIS Chairman in as of January. Later, SAN announced it has launched a digital bank in the US to help it fund over $30 billion in auto lending and broaden its retail banking reach in the US market.  At the same time, shipping giant AMKAF (Maersk Moeller) raised its profit outlook on what it called a “strong shipping market.”  Later, according to the Wall Street Journal, activist investor JCP Investment Mgmt., which has a 2% stake in the company, has issued a letter urging CAKE to spinoff three of its smaller brands (North Italia, Flower Child, and Culinary Dropouts).

In AI news, LUMN announced a strategic partnership with META aimed at increasing network capacity to support the META AI infrastructure. Later, HON announce it had signed a deal with GOOGL to bring the latter’s AI technology to the industrial data market.  At the same time, IBM announced it launched a new AI model called Granite 3.0. (The model is open source, but IBM sells a paid version to be run on enterprise data centers.) Later, MSFT announced they will allow customers to build autonomous artificial intelligence agents using its Copilot Studio application starting in November.  (This is a move to compete with CRM, which is already offering such AI agents for particular business tasks.) At the same time, QCOM announced that it is bringing chips designed for laptop CPUs to its mobile phone offerings. (The idea is to make phone processing more powerful to support AI.)  Meanwhile, MEAT announced a batch of AI models, including one specifically created to check the quality of other AI models.

In stock legal and governmental news, on Monday, Nigeria blocked the SHEL sale of its entire Nigerian onshore and shallow-water operations for $2.4 billion.  However, at the same time, Nigeria approved a similar deal for the sale of XOM’s operations for $1.28 billion.  At the same time, the High Court of London ruled that BHP is “cynically trying to avoid responsibility” for Brazil’s worst environmental disaster (which came after a dam holding BHP mining waste collapsed).  This came as the $47 billion lawsuit began its final phase with 600k Brazilians, 46 local governments, and about 2k Brazilian companies as the plaintiffs. (BHP had argued the case should be thrown out because it had paid almost $8 billion to everyone effected in Brazil.) 

Elsewhere, LLY filed suit against three more medical spas (online vendors) of products that claim to contain the main ingredient of its popular Zepbound weight-loss medicine.  At the same time, investment advisor WisdomTree Asset Mgmt. agreed to pay $4 million to settle SEC charges of misleading marketing of three funds (greenwashing).  Later, movie studio Alcon Entertainment sued TSLA and WBD, alleging the defendants used images from the file “Blade Runner 2049” in the promotion of TSLA’s new cycbercab. Meanwhile, a bipartisan group of dozens of Congressmen (52 in total) urged the White house to toughen the sanctions on Russia and specifically questioned sanction exceptions for oilfield services firm SLB.

In miscellaneous news, on Monday, South Korea and Ukrainian intelligence services confirmed North Korea has sent 10k troops to fight on behalf of Russia.  This includes some North Korean special forces troops.  Elsewhere, the disgraced ex-President continued to spread lies and long-debunked conspiracy claims about FEMA hurricane relief efforts at campaign events in NC on Monday.  (Once again, FEMA and NC officials had to try to correct the serial-liar’s spew in hope people will not forgo (and as was recently seen) even hinder the recovery.)  Meanwhile, his opponent, Vice President Harris, called for an unspecified increase to federal minimum wage levels in campaign events in PA, MI, and WI.  The events held alongside several Republican supporters (like former Congresswoman Liz Cheney), who support Harris but did not comment on Harris’ minimum wage call. At the same time, the FTC rule banning fake online reviews went into effect Monday. (The rules allow the agency to issue penalties of up to $51,744 per violation for knowing violations of the rule.)  Finally, Germany’s six-month trial with a four-day workweek has ended.  However, Bloomberg reports that many of the 45 businesses that participated in the experiment will not go back.  (73% of the participating companies said they were prepared to either extend the experiment or make the change permanent.)

In Middle East news, on Monday, Israel continued its attacks on both Gaza and Lebanon.  In the latter, Israel said it had bombed 32 targets ranging from the North of the country to the South.  However, the largest batch of Israeli bombing strikes was in Beirut where numerous buildings were collapsed.  This included the headquarters of what Israel (and the US) called Hezbollah’s bank (Al-Qard Al-Hassan, which translates to “benevolent loan”) which Israel also designated as a “terrorist organization.”  (It is worth noting that while the bank has links to Hezbollah, it also is involved in Lebanese government, NGO/charity, and civilian banking.)  Meanwhile, US intelligence services said they were investigating online leaks of US surveillance data showing preparations for Israel’s retaliatory strike on Iran.  (The leaked information included satellite images and written materials showing Israel is preparing long-range missiles and drone attacks.  The information also said Israel would not use a nuclear weapon.  The latter had not even been part of public discussion given there were no casualties and limited damage from Iran’s missiles and those were in response for Israeli bombings in Iran.)

Overnight, Asian markets were mostly in the red with just the three Chinese exchanges in the green.  Japan (-1.39%), India (-1.25%), and Thailand (-1.24%) paced the losses.  In Europe, with the lone exception of Oslo (+0.37%) we see red across the board at midday.  The CAC (-0.76%), DAX (-0.35%), and FTSE (-0.75%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a second straight down open.  The DIA implies a -0.44% open, the SPY is implying a -0.45% open, and the QQQ implies a -0.51% open at this hour.  At the same time, 10-Year bond yields have hit 4.20% while Oil (WTI) popped another 0.94% to $71.22 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to the API Weekly Crude Oil Stocks report (4:30 p.m.).  We also hear from Fed member Harker (10 a.m.).  Major earnings reports scheduled for before the open include MMM, AOS, DHR, FI, FCX, GE, GM, GPC, HRI, IPG, IVZ, KMB, LMT, MCO, NSC, PCAR, PNR, PM, PII, PHM, DGX, RTX, SHW, and VZ.  Then, after the close, AGR, BKR, CNI, CSGP, EWBC, ENVA, MTDR, NBR, PKG, PFSI, RRC, RHI, STX, LRN, TXN, VMI, VLRS, and WFRD report.

In economic news later this week, on Wednesday, September Existing Home Sales, EIA Weekly Crude Oil Inventories, and the Fed Beige Book.  We also hear from Fed Governor Bowman.  On Thursday, we get September Building Permits, Weekly initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. S&P Global Mfg. PMI, Preliminary Oct. S&P Services PMI, Preliminary Oct. Composite PMI, Sept. New Home Sales, and the Fed Balance Sheet.  Finally, on Friday, Preliminary Sept. Core Durable Goods Orders, Preliminary Sept. Durable Goods, Michigan Consumer Sentiment, Michigan Consumer Sentiment, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Wednesday, APH, T, AVY, BA, BSX, CME, KO, CSTM, DB, EVR, GEV, GD, HLT, KBR, LII, LAD, COOP, EDU, NEE, NTRS, ODFL, BPOP, PRG, ROP, TMHC, TDY, TMO, TRU, TNL, UNF, VRT, WAB, WSO, WGO, ALGN, AMP, ASGN, CACI, CP, CLS, CCS, CHDN, CYH, FAF, GL, GGG, ICLR, IBM, KALU, KNX, LRCX, LVS, MAT, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, ROL, SEIC, NOW, TMUS, TER, TSLA, TYL, URI, VLTO, WCN, WFG, WU, and WHR report.  On Thursday, we hear from ADT, ALLE, AAL, AIT, AMBP, BFH, BC, CRS, CARR, CBRE, DAR, COV, DOW, DTE, EQNR, EEFT, FCFS, FSV, FCN, GTX, HOG, HAS, HON, KDP, KKR, LH, LEA, LTH, LKQ, MSM, NDAQ, NOC, ORI, POOL, RDUS, RS, RCI, R, SPGI, SAH, LUV, TAL, FTI, TECK, TXT, TSCO, TPH, UNP, UPS, VLO, VC, WST, WEX, ATR, AJG, SAM, BYD, COF, CSL, CINF, FIX, DECK, DXCM, DLR, EW, HIG, LHX, MTX, MHK, NOV, OLN, DOC, PFG, RMD, SKX, SSNC, TXRH, TROX, UHS, VALE, WDC, WY, and WKC. Finally, on Friday, AON, AN, AVTR, BAH, CNC, CL, GNTX, HCA, NYCB, NWL, POR, SAIA, and SNY report.

So far this morning, MMM, BKU, DHR, FI, GE, GM, IPG, IVZ, MCO, PNR, PHM, DGX, and RTX all reported beats on both the revenue and earnings lines.  At the same time, AOS, KMB, PM, and VZ all missed on revenue while beating on earnings.  On the other side, HRI beat on revenue while missing on earnings.  However, GPC, PII, and SHW missed on both the top and bottom lines.

With that background, it looks like the Bears are in charge again early in all three major index ETFs. SPY and QQQ are again retesting their T-line (8ema) while DIA gapped down through its 8ema. All three are also mostly black body with a lower wick at this point. With that said, two of the three remain above their T-line with the third gapping below. So, the short-term trend remains modestly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator is now back in the lower half of its mid-range. So, markets have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, nine of the 10 are in the red this morning. TSLA (-0.70%) leads on price move lower. The biggest dog, NVDA (+0.19%) is the only green member of the big dogs and has treaded 4.5 times as much dollar-volume as the next closest ticker so far this morning. (For what its worth, this has been typical of bullish days this year.)

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

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Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service