Stocks opened up slightly higher Monday and then drifted sideways in waves all day that closed on an up-wave.  This left us with gap-up Hanging Men-type candles in the SPY and QQQ as well as a Doji in the DIA.  On the day, SPY gained 0.17%, DIA gained 0.25%, and QQQ gained 0.33%.  This left all 3 major indices at all-time high closes again.  The VXX fell 1.5% and T2122 jumped up deep into the overbought territory at 94.431.  10-year bond yields were flat at 1.559% and Oil (WTI) gained half of a percent to $83.95/barrel.

Related to Federal spending, the Treasury Department announced late Monday that it is increasing the expected amount of borrowing to $1.02 trillion during Q4, which is up about $314 billion from the August estimate of $703 billion.  In a related story, the Federal Budget, Debt Ceiling Increase, and Infrastructure bills are back in doubt as WV Senator Manchin announced he “may not” support the $1.75 trillion budget plan because he wants “greater clarity” on the impact on the national debt.  Sources told Bloomberg his main concerns are climate-related initiatives and to a lesser degree social spending initiatives as might be expected.  On the opposite side, Progressive Democrats won’t support the bills at lower costs or fewer social and climate initiatives.  This may be as expected since there is still a month left until the deadline created by budget and debt limit extensions. 

After hours, PSA, WMB, MCK, ANET, CLX, FANG, and HOLX all beat on both lines.  Meanwhile, NXPI, SBAC, O, VNO, and LEG beat on revenue but missed on earnings.  On the other side of the coin, MOS missed on both lines and reported that they expect the massive input price surge they have been seeing to continue in Q4.

In earnings this morning, BP, MPC, PFE, DD, ETN, COP, EL, LDOS, HSIC, MPLX, GPN, WLK, KKR, WEC, ROK, TRI, UAA, SEE, XYL, ZBRA, AMEIT, CTLT, LCII, LPX, IDXX, WAT, and TMX all beat on both lines.  LEA, MLM, NXST, GNRC, BLD, SRCL, and HSC missed on earnings but came in at least in line on revenue.  Only ARNC has missed on both lines so far

Overnight, Asian markets were mixed, but leaned to the red side as Chinese fears over the real estate market flare again and Beijing has halted flights again to combat Covid-19.  South Korea (+1.16%) was the leader to the upside.  Meanwhile, Shanghai (-1.10%), Indonesia (-0.91%), and Shenzhen (-0.69%) paced the losses.  In Europe, markets are also mixed at mid-day.  The FTSE (-0.42%), DAX (+0.52%), and CAC (+0.32%) are typical of the spread across the continent as talk of climate initiatives lead all news in Europe the last couple of days.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA is implying a +0.02% open, the SPY implies a -0.02% open, and the QQQ is implying a -0.18% open at this hour.  10-year bond yields are down slightly and Oil (WTI) is off by half of a percent in early trading.  

There is no major economic news scheduled for release on Tuesday.  Major earnings reports scheduled for the day include PFE, CRSR, RACE, UAA, CTLT, BP, EL, COP, GPN, GNRC, LPX, RL, ARCB, EPD, ROK, MPC, ZBRA, CMI, BHC, BLMN, MPLX, DD, LGIH, IDXX, KKR, LEA, AME, IT, MLM, ETN, LDOS, SEE, ARNC, INCY, WLK, HSIC, LCII, APO, PEG, BLD, MMP, WAT, NXST, WEC, HSC, XYL, CIGI, TRI, INGR, SRCL, and TMX before the open.  Then after the close, ATVI, AKAM, AMCR, DOX, AMED, AFG, AWK, AMGN, ANDE, ARGO, AIZ, BTG, BFAM, CZR, CHK, DCP, DVN, EIX, ENLC, FMC, FNF, FRG, HLF, KAR, LYFT, MANT, MTCH, MCY, MOD, MDLZ, OKE, OVV, PKI, PAA, PRU, SKY, SEDG, STE, SGRY, TMUS, TX, UNM, VRSK, VRTX, VOYA, WU, XPO, ZG, and Z report.

Markets seem to be taking a wait-and-see attitude this morning with the FOMC meeting beginning. Even though the outcome is widely expected and has been signaled by the Fed for some time (bond-buying taper begins), traders appear to want to see another card before they place more bets. Despite the fear of a slowing economic recovery and inflation, earnings continue to be mostly strong among the larger companies. Stay nimble, and don’t be surprised if we see a blase day while we wait on the Fed and Congress and COP26 speeches.

The trend remains bullish, with all 3 major indices sitting at all-time highs. Keep in mind that while we are extended, long-term trading success has never come from betting on reversals. So, remember, the trend is our friend. Focus on your trade rules and on managing the things you can control. And that should include consistently taking profits when you have them and moving your stops. Watch your current positions before looking to add new trades. Trade carefully and think twice about holding through earnings.

Ed

Swing Trade Ideas for your consideration and watchlist: STX, CAN, BTBT, CAT, AMD, CSCO, LVS, CHWY, BB, ARKK, NIO, WFC, HPQ. 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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