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Earnings and Bezos Plans to Step Down

February 3, 2021 by Ed Carter

Markets gapped up Tuesday and then put in a little morning rally as the bulls got on a run. However, the afternoon was a sideways grind and a selloff the last hour left us with upper wicks. The SPY put in a Spinning Top candle while the others printed large body with good sized upper wick candles. On the day, SPY gained 1.33%, DIA gained 1.59%, and QQQ gained 1.63%. The VXX fell 8.5% to 18.19 and T2122 rose well into the overbought territory at 89.77. 10-year bond yields rose significantly as money moved out of bonds ending at 1.096% and Oil (WTI) gained about 2.5% to $54.87/ barrel (the highest level since early March of 2020).

The social media short squeeze seemed to fall apart Tuesday as GME gapped down and the sellers piled in causing in a 60% loss on the day (after losing 31% on Monday). AMC saw similar action, losing over 41% after a big black candle of its own from the prior day. Silver suffered a similar reversal. So, the crusaders that were not quick and had not taken profits likely got hammered by the gaps and then also learned the lesson of discipline if they held hoping for a recovery.

After the close, major tech earnings announcements set the table for tomorrow. Among these are the Jeff Bezos is stepping down as CEO of AMZN, with his replacement taking over during Q3. This came after AMZN reported its first $125 billion revenue quarter and doubled earnings estimates ($14.09/hare vs. $7.16/share est.). GOOG also beat on the top and bottom lines In non-tech earnings, XOM more than tripled the analyst’s estimates, coming in a 3 cents per share with an average estimate of 0.9 cents expected.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 27,027,430 confirmed cases and 457,868 deaths. However, the number of new cases continues the recent trend of falling and is almost back down to the pre-election level as the average new cases are now 142,524 new cases per day. Still, deaths remain stubbornly high at 3,179 per day. The White House COVID Response team announced they will begin shipping vaccines directly to 6,500 retail pharmacies (CVS and WBA) on Feb. 11. Coupled with the rapidly declining trend of new cases this offers considerable hope for Spring.

Globally, the numbers rose to 104,485,479 confirmed cases and the confirmed deaths are now at 2,265,049 deaths. In good news, the world’s average of new cases is down again to 512,467 per day, but mortality remains high at 13,716 new deaths per day. The WHO reported that there has been a 13% decline in new cases globally from last week. Mexico has approved the use of the Russian Sputnik vaccine. In India, a survey has found that over 56% of the city’s population has had COVID-19, based on estimates from 28,000 samples. That is a lot of cases considering the city 30 million residents and the Indian national case count is reported at only 10 million.

Overnight, Asian markets were mixed but mostly green. South Korea (+1.06%), Japan (+1.00%), and India (+0.97%) led the way. Meanwhile, China saw losses with Shenzhen (-0.87%) and Shanghai (-0.46%) paces the fall. In Europe, markets are mostly green so far this morning. The FTSE (-0.02%) is flat, while the DAX (+0.51%) and CAC (+0.25%) are modestly higher. As of 7:45 am, US Futures are pointing to a modestly green (and varied) open. The DIA is flat at +0.01%, the SPY implying +0.32%, and the QQQ implying +0.60% at this point.

The major economic news for Wednesday includes Jan. ADP Nonfarm Employment (8:15 am), Jan. Services PMI (9:45 am), Jan. ISM Non-Mfg. PMI (10 am), Weekly Crude Oil Inventories (10:30 am) and 4 Fed speakers (Bullard at 1 pm, Harker at 2 pm, Mester at 5 pm, and Kaplan at 6:05 pm). Major earnings on the day include ABBV, APTV, AVY, BIIB, BSX, CPRI, CNHI, EDP, HWM, HUM, LAD, MKL, PFGC, SC, SNDR, SMG, SNE, and SPOT all before the open. Then after the close, AFL, ALGN, ALL, UHAL, AFG, AVTR, CHNG, CTSH, CTVA, EBAY, ECHO, ENSG, THG, HI, IAC, KLAC, LNC, MET, MUSA, PYPL, QRVO, QCOM, VVV, and YUMC report.

Earnings will again lead markets today with the digestion of Jeff Bezos stepping down at AMZN and strong earnings from GOOG and AMZN also still being digested. The volatility caused by the social media short squeeze may have run out of steam. However, earnings offer their own kind of volatility. So, continue to be careful.

Remember to keep locking in your profits. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. It’s all about achieving trade goals and sticking to your discipline. Remember, our job is to produce consistent gains…not catch record-breaking one-day moves. So, stick with your plan, maintain discipline and work your process.

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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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

Stocks to Gap Up As Short-Squeeze Fades

February 2, 2021 by Ed Carter

US markets followed the world’s lead Monday gapping higher about a percent, but after the open the major indices mostly ground sideways amidst volatility. This ended with the large-caps printing indecisive candles (DIA a Harami Doji and the SPY a Spinning Top) to start the new month. While also having significant wicks, the QQQ was much more decisively bullish, putting in the best gain in 10 weeks. On the day, DIA was up 0.74%, SPY up 1.62%, and QQQ up 2.50%. The VXX fell over 5% to 19.88 and T2122 shot back up into the mid-range at 67.07. 10-year bond yields were flat at 1.071% after a volatile day and Oil (WTI) rose almost 3% to $53.68/barrel.

The social media pushed price action continued Monday as many brokerages reported outages at the open. Silver jumped 8.2% (11% intraday) as the massive volume and volatility continued in names like GME (-30% on a 52% range day) and AMC (flat on a 33% range for the day). In response, the CME raised the margin requirements for silver purchases. However, some brokers continue to slightly loosen restrictions on those tickers with fallout including that Robinhood was forced to raise another $2.4 billion in capital to use as collateral for trades in the high-volatility names and may need to raise another billion Monday night. However, overnight these moves may have lost steam as GME is down another 30% and Silver and AMC are also both down big.

On the stimulus front, Democrats took the first step toward a passage of the $1.9 trillion relief bill that would not require Republican support by introducing a budget resolution. This came ahead of the two-hour evening meeting between the President and the 10 Republican Senators who had sent him a $600 billion alternative to his plan. Both sides said the meeting was productive and talks would continue.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 26,911,375 confirmed cases and 454,213 deaths. However, the number of new cases continues the recent trend of falling and is almost back down to the pre-election level as the average new cases are now 147,839 new cases per day. Still, deaths remain stubbornly high at 3,256 per day. Dr. Fauci told reporters Monday that even if you had the original strain of COVID-19, there is a high rate of reinfection from the new (UK, Brazilian and South African) variants now circulating. In addition, Democratic lawmakers from both Houses of Congress called on President Biden to increase the supply of N95 masks for the public and to distribute them at no cost via USPS and the local pick-up centers.

Globally, the numbers rose to 104,011,252 confirmed cases and the confirmed deaths are now at 2,249,880 deaths. In good news, the world’s average of new cases is down again to 522,508 per day, but mortality remains high at 13,869 new deaths per day. In the UK, the government has begun a door-to-door testing program in 3 of the hardest-hit regions of the country in an attempt to slow the surge from new variants. Meanwhile, in Asia, Japan has extended its state of emergency while simultaneously holding a press conference to say the Summer Olympics will be held as planned.

Overnight, Asian markets were strongly green again. India (+2.57%) led again, with Taiwan (+2.27%) not far behind, but strong gains were seen throughout the region. The same is true in Europe so far today. The CAC (+1.66%) and DAX (1.15%) are typical, but the FTSE (+0.42%) lags a bit. As of 7:30 am, US Futures seem to be following the rest of the world again and are pointing to a gap higher at the open. The DIA is implying +0.82%, the SPY implying +0.86%, and the QQQ implying +0.87% in an unusually consistent move at this point.

There is no major economic news for Tuesday, but there are 2 Fed speakers (Mester and Williams both at 2 pm). Major earnings reports for the day include BABA, ARCB, ABG, BP, BR, CTLT, COP, ETN, EMR, XOM, RACE, BEN, GPK, HOG, HCA, HUBB, IDXX, IMO, LII, MDC, MMP, MAN, MPC, MCK, MPLX, PFE, ST, SIRI, SYY, UPS, GWW, and WAT before the open. Then after the close, GOOGL, AMZN, AMCR, DOX, AMGN, ATO, CMG, CB, EA, FBHS, GOOG, LU, MHO, MTCH, PKI, SCSC, STE, SMCI, and VIAV all report.

It looks like the Bulls are off and running again this morning. It also appears the shine has come off the recent social-media short squeeze as GME, AMC, and Silver are all don big overnight. However, be very careful of volatility. Even with a strong day Monday, the market daily candles showed a lot of wick. In addition, heavy earnings reports before the open can still rock the boat. So, as tempting as it may be, we are not lottery ticket buyers or fad followers. We’re traders.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

US Markets Set to Follow Globe Higher

February 1, 2021 by Ed Carter

Markets gapped down on Friday and followed-through to the downside all morning. The afternoon saw a sideways grind as the majority of the trading had been done for the day. This action left all 3 major indices with ugly black candles that closed fairly close to the lows. On the day SYP lost 2.00%, DIA lost 2.05%, and QQQ lost 2.10%. The VXX gained 6.5% to 21.08 and T2122 fell well into the oversold territory at 7.04. 10-year bond yields went up to significantly 1.071% and Oil (WTI) lost only a fraction of a percent to $52.14/barrel.

Social Media, shorting funds, brokerage collateral calls from the trade clearinghouse, and politicians trying to make headlines on the subject continued to lead the talk on Friday. Many brokerages partially lifted the restrictions on buying the social-media darling stocks and again the phenomenal rallies continued. GME (+68%), AMC (+53%), etc. are a few examples of related moves on the day. However, other shorted issues have also been the target of the Redditers and this weekend such as SI (silver commodity) and DOGE (Dogecoin cryptocurrency) which both made moves as the social media phenomenon tries to spread its wings.

On the stimulus front, the Democrats have openly said they hope for Republican support, but if not, they intend to use the budget process (reconciliation) to pass the proposed $1.9 trillion relief package with just a simple majority. For their part, on Sunday, 10 GOP Senators tried to short-circuit the Democratic move by offering a $600 billion plan of their own in a letter to President Biden. There was no response yet from the White House and the Republican Senators will meet with the President Monday, but Senate Majority Leader Schumer scoffed at a proposal less than one-third of the existing proposal and Treas. Sec. Yellen reiterated Sunday that the benefits of acting BIG far outweigh the costs in the long run.

Related to the virus itself, US infections continue to rage as the US. The totals have risen to 26,767,229 confirmed cases and 452,279 deaths. January was the deadliest month with just under 100,000 COVID deaths in the US. However, the number of new cases continues the recent trend of falling and is almost back down to the pre-election level as the average new cases are now 150,903 new cases per day. Still, deaths remain stubbornly high at 3,255 per day.

Globally, the numbers rose to 103,594,874 confirmed cases and the confirmed deaths are now at 2,239,275 deaths. In good news, the world’s average of new cases is down again to 528,616 per day, but mortality remains high at 13,870 new deaths per day. Portugal reached a critical point Sunday, with only seven open ICU beds in the whole country. As a result, they began flying critical patients to islands and other countries. AZN also ended its conflict with Europe as both sides announced that AZN will ship 30% more vaccine to the EU in Q1 than it had been planning and 75 million more doses in Q2. This avoids EU export restrictions on the AZN vaccine. In the UK, they have reached a milestone, announcing today that all “eligible” nursing home residents have “been offered” vaccine.

Overnight, Asian markets were mostly strongly green. India (+4.54%) and Indonesia (+3.50%) were clearly outliers, but Japan (+1.55%), Hong Kong (+2.15%), South Korea (+2.70%) are good indications of that region. In Europe, markets are green across the board so far today. The FTSE (+1.12%), DAX (+1.40%), and CAC (+1.36%) are typical of the continent. As of 7:30 am, US Futures seem to be following the rest of the world and are pointing to a gap higher at the open. The DIA is implying +0.84%, the SPY implying +1.09%, and the QQQ implying +1.13% at this point.

The major economic news for Monday is limited to Jan Mfg. PMI (9:45 am) and Jan. ISM Mfg. PM (10 am). Major earnings reports for the day include ON and OTIS before the open. Then after the close, CBT, KMPR, NXPI, VRTX, and WMG report.

It looks like the Bulls are off and running worldwide today. Couple this with the “social media-driven short-squeezing” and it may be a strong day for the market. Be very careful if you do anything like follow the short squeezers. Volatility cuts both ways and you don’t want to be left holding a long taken late when the floor drops out of a particular ticker. As tempting as it may be, we are not lottery ticket buyers or fad followers. We’re traders.

Follow the trend, respect support and resistance levels, and don’t chase the moves you missed. Remember to lock in your profits. It’s all about achieving trade goals and sticking to your discipline. Remember, our job is to produce consistent gains…not catch record-breaking one-day moves. So, stick with your plan, maintain discipline and work your process.

Swing Trade Ideas for your consideration and watchlist: LEVI, XLB, SQ, ADM, LYFT, XLF, BAC, MGM, UAA. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Redditers vs Shorts and Vaccine News

January 29, 2021 by Ed Carter

Markets gapped up a bit on Thursday (large-caps about half of a percent and QQQ about a quarter of a percent). Stocks then put in a rainbow day, slowly rallying all morning and then slowly selling off all afternoon. This left all three major averages printing Harami Inverted Hammer type candles with tiny white bodies. On the Day SPY was up 0.84%, DIA up 0.91%, and QQQ up 0.61%. The VXX fell a little over 3% to 19.79 and T2122 rose a bit, but remains in the lower mid-range at 37.50. 10-year bond yield rose sharply to 1.048% and Oil (WTI) fell over 1% to $52.26/barrel.

The talk of the day was the Reddit group raid on short positions such as GME. Brokers halted all trading on that ticker (as well as a few others), while the SEC, Congress and the Senate all announced investigations of market manipulation on the situation. In an odd bedfellow situation liberal Representative Cortez (AOC) and conservative Senator Cruz both bashed brokers for the GME trading freeze. On top of all this, customers sued some brokers for stopping them from continuing to buy the stock. At any rate, GME fell 40% on the day as a result of the halt on buying.

During the day, Speaker of the House Pelosi said the House will take the next step to pass the Covid Relief package next week, with or without Republicans. This will set up the reconciliation process that would allow Democrats to pass the $1.9 trillion relief package even without a single Republican vote. However, not a single Democrat could break ranks in the Senate for this to work. So, while most people hope for political reconciliation and it is hoped for, politics seems to be going on as usual.

Related to the virus itself, US infections continue to fall from recent extreme highs. The totals have risen to 26,338,607 confirmed cases and 443,769 deaths. However, the number of new cases continues the trend downward as the average of new cases is now down to 162,849 new cases per day. Still, deaths remain stubbornly high at 3,353 per day. In hopefull news, a large scale (30,000+ participants) tests of another new vaccine candidate from NVAX are now underway in the US and Mexico (see below).

Globally, the numbers rose to 102,132,931 confirmed cases and the confirmed deaths are now at 2,202,993 deaths. In good news, the world’s average new cases is down again to 562,866 per day, but deaths remain high at 14,273 new deaths per day. The fight between AZN and the EU continues over when and how much vaccine the EU will get. The European Commission published the contract between the 2 sides in an effort to pressure the company into earlier delivery. In a separate AZN story, the German Vaccine Commission has said that AZN did not test their vaccine on enough elderly patients (65+), and that being the case, there is not enough data to recommend the vaccine for that age group. Despite this, the EU is expected to approve the AZN vaccine for all ages. NVAX stocked soared late Thursday when reports came from the UK that very small-scale test data shows their COVID-19 vaccine is up to 89% effective. It was only 60% effective in a small South African test and only 45% effective in South Africa when patients who also had HIV were counted. Nonetheless, the UK data gives hope for another vaccine in the next few months. Meanwhile, data out of Israel suggests the PFE-BTNX and MRNA vaccines are both more effective than had been thought. Israeli data shows that less than 1% of people who were vaccinated with either vaccine have gotten COVID-19 since vaccination.

Overnight, Asian markets were strongly red across the board again. South Korea (-3.03%) was an outlier, but significant losses were seen in most places such as Japan (-1.89%), India (-1.32%), and Hong Kong (-0.94%). In Europe, we don’t see all red, but markets are definitely leaning to the downside so far today. The FTSE (-1.02%), DAX (-0.73%), and CAC (-0.87%) are typical and lead the way lower. As of 7:30 am, US Futures are also pointing to a gap lower at the open. The DIA is implying -0.45%, the SPY implying -0.58%, and the QQQ implying -0.83% at this point.

The major economic news for Friday includes PCE Price Index, Q4 Employment Cost, and Dec. Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), Michigan Consumer Sentiment and Dec. Pending Home Sales (both at 10 am). There are also a couple of Fed speakers (Kaplan at 4 pm and Daly at 5:25 pm). Major earnings reports on the day include BAH, CAT, CHTR, CVX, CHD, CL, LLY, ERIC, HON, JCI, LHX, LYB, PSX, ROP, SAP, SYF, and WY before the open. There are no major earnings reports after the close.

It looks like Bears are roaring worldwide on Friday. Mr. Market may be taking profits or getting flat ahead of the weekend. Either way, it looks like earnings and the “social media-driven volatility” are the big stories occupying the Market’s mind. So, continue to be cautious. The short-term trend is bearish, but the longer-term trend could hardly be any more bullish.

Follow the trend, respect support, and resistance levels, and don’t chase the moves you missed. Remember to lock in your profits. It’s all about achieving trade goals and sticking to your discipline. Remember, our job as traders is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process.

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Q4 GDP and Earnings On Tap

January 28, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Bears Shrug Off Strong Earnings

January 27, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

Swing Trade Ideas for your consideration and watchlist: AAOI, SIG, MJ, AG, FCEL, BLNK, SRNE, PLUG. You can find Rick’s review of those tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Earnings Top the Agenda Today

January 26, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

Swing Trade Ideas for your consideration and watchlist: XBI, MDRX, XLU, XLV, GTHX, MOMO, MPC, MRVL, OVID. You can find Rick’s review of those tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Stimulus Wrangling As Virus a Bit Better

January 25, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Earnings and Virus Jitters Lead News

January 22, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

Earnings and Jobless Claims Lead

January 21, 2021 by Ed Carter

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

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

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

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

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

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

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

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

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

Swing Trade Ideas for your consideration and watchlist: CSIQ, TJX, SIX, UAA, JBHT, STNE, ADT, KIRK, WING, NET, AQN. You can find Rick’s review of those tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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