On Monday, markets made a very slight gap lower a the open.  However, the bulls took over for the day, thumbing their nose at the Asian markets and driving to new all-time highs.  The large caps put in nice Marubozu-type candles, while the QQQ printed a more “large body Spinning Top” type of candle.  As mentioned, the 5^th consecutive up day ended in new all-time high closes for all 3 major indices.  On the day, SPY gained 0.24%, DIA gained 0.24%, and QQQ gained 0.08%.  The VXX fell 1.5% to 29.87 and T2122 dropped back into the mid-range at 57.26.  10-year bond yields rose slightly to 1.293% and Oil (WTI) was flat at $72.16/barrel.

After the close, TSLA reported a massive beat with 50% higher earnings and almost $700 million more in revenue for the quarter than analysts had expected.  The $1.14 billion ins net income was up ten-fold from one year prior and this was the first time the company exceeded $1 billion net income for any quarter.  UHS was another notable beat last night.  The healthcare company reported 40% more earnings than expected on 10% more revenue than expected.  However, it should be noted that all the major earnings were beats Monday evening.

In other stock news, AAL warned about fuel shortages last evening.  The company said it is one of several airlines facing delays in fuel supply due to a lack of truck drivers.  DAL acknowledged some such fuel-related delays in smaller Western airports, but LUV claimed it has not seen any such delays yet.  AAL told CNBC that it expects such delays to continue through August as peak vacation travel takes place.  The company spokesman said that pilots had been asked to conserve fuel although it did not say what impact conservation might have on “flight on time” metrics.

Once again, earnings seem to be extremely good this morning.  Every major reporting stock put in beats, with the lone exceptions on PHM, which missed on both lines.  UPS beat on both lines as did GE, MMM, RTX, BSX, WM, ROK, SWK, etc.  ADM reported huge beats on both lines. So, it appears inflation is not impacting earnings, perhaps with the exception of homebuilders who had not hedged and bought too much lumber at the top of the recent commodity highs.

Overnight, Asian markets were mostly red again as the Chinese markets continue to be routed as investors fear a mass exodus of Western capitol.  Hong Kong (-4.22%), Shenzhen (-3.67%), and Shanghai (-2.49%) led the region lower.  Japan (+0.49%) on Olympics euphoria and Australia (+0.50%) were the only appreciable gainers.  In Europe, markets are red across the board with the lone exception of a flat Russia.  The FTSE (-0.28%), DAX (-0.33%), and CAC (-0.12%) are typical of the region at mid-day.  However, Portugal (-1.33%) is leading the way lower.  As of 7:30 am, US Futures are pointing to a mixed, mostly flat open.  The DIA is implying a -0.19% open, the SPY implying a -0.11% open, and the QQQ implying a +0.09% open at this hour.   

The only major economic news scheduled for release on Tuesday are June Durable Goods Orders (8:30 am) and Conf. Board Consumer Confidence (10 am).  However, it is another heavy earnings day, with a slew of major tech companies reporting after the close.  The major earnings reports scheduled for the day include MMM, AN, ADM, ABG, BSX, CNC, CIT, GLW, CEQP, DTE, ECL, ENTG, FSV, FISV, GE, GPK, HUBB, IVZ, IQV, JBLU, LW, LECO, MLCO, MSCI, PCAR, PNR, PII, PHM, RTX, ROK, ST, SHW, SIRI, SWK, TECK, TRU, UPS, WM, and XRX.  Then after the close, AMD, GOOGL, AAPL, ASH, AXS, BXP, BYD, CHRW, CAKE, CHE, CB, CSGP, EHC, WIRE, EQR, GOOG, THG, IEX, JBT, JNPR, LBRT, MAT, MXIM, MSFT, MDLZ, NBR, NLOK, OLN, OVV, PFG, SBUX, SYK, TDOC, TER, and V reports.

With so much of the market-leading tech sector reporting after the close, the Fed statement coming Wednesday, and with markets at all-time highs; logic would call for a pullback or pause. However, the bulls have been ignoring logic and continuing to push this last week. So, do not count on a rational market. The economy continues to be strong and companies have so far been able to pass along inflation (or at least found ways to offset it to improve earnings). That said, don’t be caught off guard by a calm day in front of big tech and the Fed.

If you are taking positions today, be nimble or hedged. It’s not known how Mr. Market will react to even the hint of bad news from tech leadership or some non-dovish hint from the Fed. So, manage your current positions first. Don’t chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you can control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, or one week.

Ed

Swing Trade Ideas for your consideration and watchlist: GE, JYNT, TSLA, NTNX, AA. 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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