Markets gapped higher on Friday, apparently pleased with the 6.8% CPI number (the highest since 1982).  After the open wandered sideways most of the day before a rally the last hour took markets out near the highs.  This left us with gap-up, white, Hammer or Hanging Man candles in all 3 major indices.  It is worth noting that the SPY closed at a new all-time high in the SPY.  On the day, SPY gained 0.94%, DIA gained 0.59%, and QQQ gained 1.09%.  The VXX fell to 20.78 and T2122 rose to mid-range at 45.89.  The 10-year bond yields fell to 1.487% and Oil (WTI) rose to $71.98/barrel. 

On Monday, British PM Boris Johnson reported that at least one person has died of the omicron variant in his country.  He went on to cite an Oxford University study that has found the omicron can infect those that have had the full initial vaccination (one or two jabs depending on the vaccine requirements).  Johnson said it appears omicron is a somewhat milder version of the virus, but that needs to be set aside to focus on what his experts are telling him will be a tidal wave of omicron cases in the UK.  The FTSE reacted to this news and pulled back after his comments.

Regulatory filings this morning show that PFE is acquiring ARNA in a $6.7 billion deal.  PFE will pay $100 per share for ARNA, which is a 100% premium to the companies Friday close.  The move bolsters PFE’s portfolio of treatments in the gastric, dermatology, and cardiology arenas. In other stock-related news, a RIVN

Over the weekend, technology industry news gave some interesting perspectives on the global “ship shortage.”  It seems that despite all the talk of chip shortages (from automakers, electronics, etc.), semiconductor manufacturers have sold more chips in 2021 than ever before.  As an example, computer graphics card sales are at a significant new high despite being “out of stock” for long periods in commercial outlets.  The main reason for this seems to be sales to crypto miners, many of which buy in bulk.  This is sometimes hidden because NVDA (the largest GPU manufacturer) began selling directly to mining operations last year and does not report those sales separately.  (Miners often pay a premium and buy in lots of 1,000 or more cards at a time.)

Overnight, Asian markets were mixed but leaned to the green side in modest trading.  Japan (+0.71%), Shenzhen (+0.67%), and outlier New Zealand (+1.13%) led to the upside.  Meanwhile, India (-0.82%), Singapore (-0.50%), and Taiwan (-0.33%) paced the losses.  In Europe, markets are mostly green at mid-day.  Only Russia (-1.52%) shows significant losses while the FTSE (-0.19%) is the only other red.  However, the DAX (+0.94%), and CAC (+0.02%) are more typical of the range seen across Europe in early afternoon trading.  As of 7:30 am, US Futures are pointing to a modest green open.  The DIA is implying a +0.06% open, the SPY implies a +0.22% open, and the QQQ implies a +0.38% open at this hour.  10-year bond yields are moving lower (1.47%) and Oil (WTI) is off three-quarters of a percent in early trading.

There is no major economic news scheduled for release Monday. There are also no major earnings reports scheduled for the day either.  However, remember this is Fed meeting week.

With the Fed meeting coming this week, global markets seem to be waiting to see what the fallout is from the FOMC discussing speeding up the taper. (And whether there is any news or wording implication of faster rate hikes in 2022.) This “wait and see” stance is likely to carry over into the US and might make for a dead market over the next 2-3 days. However, it also can magnify the impacts of other news like omicron, politics, etc. So, just be prepared for a market similar to how Naval pilots describe night patrol flights…hours of boredom punctuated with moments (landings) of high anxiety.

Stick to your trade rules and on managing the things you can control. (Not trying to force the market to obey your desires.) Consistently take profits when you have them and move your stops in your favor. Don’t be in a hurry to chase, trade carefully, and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: BBIG, RIVN, ON, MSFT, ORCL, F, HIMX. 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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