Markets opened little changed on Monday and then traded sideways in a roller-coaster fashion the rest of the day.  This left us with indecisive Spinning Top candles in all 3 major indices.  On the day, SPY gained 0.04%, DIA lost 0.06%, and QQQ gained 0.08%.  The VXX rose a little more than a percent to 25.31 and T2122 fell a bit but remains in the mid-range at 34.90.  10-year bond yields continue to spike, ending at 2.857% and Oil (WTI) closed higher to $107.42/barrel.

In business news, Jack Dorsey (former CEO, who is still a board member), criticized the TWTR board.  This came less than a day after Elon Musk fired back at the TWTR “poison pill,” claiming the board doesn’t own enough TWTR stock to be aligned with investors.  On top of this, Bloomberg reported that sources tell them that Apollo Group would be willing to finance Musk’s takeover bid. Elsewhere, following on the SBUX and AMZN trend, workers at an AAPL store in New York City have begun the process of attempting to unionize.  In earnings news, after the close, JBHT posted beats on both revenue and earnings. 

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After the close, Fed member Bullard (strongest Hawk) said that “inflation is far too high” at an event for the Council on Foreign Relations.  He went on to say that the economy will not fall into recession and that he expects the unemployment rate to fall below 3% later this year.  He also repeated his argument that the Fed Funds Rate needs to get to at least 3.5% by the end of the year and said that a three-quarter of a percent hike is possible if required, but that he would prefer multiple half-percent hikes in the FOMC Meetings to come.

So far this morning, CFG, HAL, and SBNY have reported beats on the revenue and earnings lines.  Meanwhile, JNJ, LMT, TRV, and TFC all missed on revenue while beating on earnings.  On the other side, FITB and HAS both missed on the bottom line while beating on revenue.

Overnight, the Asian markets were mixed again.  Hong Kong (-2.28%) and India (-1.25%) were far and away the biggest losers on the day.  Meanwhile, South Korea (+0.95%), Japan (+0.69%), and Taiwan (+0.56%) led the gainers.  In Europe, stocks are nearly red across the board at mid-day.  Russia (-4.03%) is an outlier, but many of the smaller exchanges have well over a 1% loss at this point.  The FTSE (-0.35%), DAX (-0.73%), and CAC (-1.12%) lead the continent as always, just based on exchange size, in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat start to the day.  The DIA implies a +0.01% open, the SPY is implying a -0.03% open, and the QQQ implies a -0.07% open at this hour.  10-yeat bond yields are up to 2.89% and Oil (WTI) is down 1.4% to $106.66/barrel in early trading.

The major economic news scheduled for release on Tuesday are limited to March Building Permits and March Housing Starts (both at 8:30 am).  Major earnings reports scheduled for the day include CFG, FITB, HAL, HAS, JNJ, LMT, MAN, PLD, SBNY, TRV, and TFC before the open.  Then after the close, FHN, IBKR, IBM, NFLX, and OMC report.

Following yesterday’s Federal judge ruling that the CDC does not have the power to issue mask mandates, the TSA announced overnight that they will stop enforcing mask requirements. This may (or may not) prove helpful for travel stocks as we enter what industry sources expect to be a massive wave of travel in Spring and Summer. However, the White House and Justice Dept. are still reviewing the ruling and determining whether to appeal the decision. So, this may change and in either case, it seems like convenient timing for the ruling after the worst of the pandemic is 1-2 years behind us.

The renewed Russian assault on Donbas has European markets spooked. It seems clear that Moscow has directed its military to employ terror and leave scorched earth if Putin cannot have what he wants. So, we are likely to hear of another round of military aid heading from the US and EU, which can benefit the military industrials like RTX, LMT, GD, NOC, and maybe WCHS. Beyond that, the volatility continues and is likely to continue. On any earnings news, forward guidance will be just as important as results. Expect a lot of news and analysis to focus on that guidance as they try to handicap the impact of rate hikes and Fed-led economic landing. So, continue to be cautious, hedged, and/or have stops that are loose enough to ride out the whipsaw (and be ready to withstand that short-term pain). Trade carefully.

Stick with those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. Remember that the first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: ATUS, WRB, LULU, ORCL, IP, X, CMCSA, DIS, GFI, COP, MRO, CF, APA, SHW, OKE. 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.

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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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