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.

Ed

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

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

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

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

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