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