Monday saw a gap up open following upbeat remarks from Speaker of the House Pelosi as she was scheduled to speak to Treasury Sec. Mnuchin again during the day to renew negotiations on stimulus.  However, after the gap-up, both large-cap indices held in a tight range right at their 50-sma resistance level printing indecisive Spinning Top type candles.  Meanwhile, the tech-heavy QQQ gapped up even further and printed a much wider range, ending up at the highs of the day in a potential Hanging Man type candle.  On the day, the QQQ was up 2.08%, SPY up 1.68%, and DIA up 1.56%.  The VXX was flat at 25.41 and T2122 jumped clear up into the overbought territory at 82.26.  10-year bond yields were flat at 0.661% and Oil (WTI) was up a bit to $40.59/barrel.

In an interesting twist to the tech industry, GOOG announced Monday that starting in a year, all app-makers who distribute through their Google Play Store will be forced to use the GOOG billing system and pay GOOG a 30% fee off the top.  This falls in-line with the current AAPL policies regarding their app store, which they are being sued over by game-maker Epic Games, MTCH, and SPOT over supposed better deals that AAPL gives Netflix.

UAL pilots approved a pay cut to avoid furloughs of nearly 3,000 pilots through at least June 2021.  The 3,000 were set to be laid off on October 1^st prior to the announced deal.  However, the airline is still planning to cut 13,000 jobs next month.

On the virus front, in the US, the numbers show we now have 7,361,889 confirmed cases and 209,815 deaths.  The 7-day average daily new case count is now at 41,604, while the 7-day average of deaths is now 755.  Dr. Fauci (NIH) said Monday that he is worried about where the US is in terms of daily case count as we enter the Fall/Winter flu season.  This comes as 33 states report rising new case counts (especially Midwest and Western states).  Both Fauci and CDC Dir. Redfield also added their concern that the President is being misinformed by new Task Force Member Atlas (a mask detractor and proponent of herd immunity) added to the Task force after being found to align with the President’s views.  All this comes as VP Pence told a presser that Americans should expect a rise in cases soon based on the worrying testing trends.  Nonetheless, in Chicago Mayor Lightfoot further eased restrictions in the city Monday.

Globally, the numbers rose to 33,585,721 confirmed cases and the confirmed deaths passed a grim milestone, now at 1,007,196 deaths.  The WHO said Monday that the global Covid-19 death count is likely an underestimate.  This comes on top of a Journal of Amer. Medial Assn. (JAMA) study that found the US death count is undercounted by as much as 28%.  In Canada, the 2 largest provinces are applying broad restrictions as cases jumped 71% since August.  In Europe, the EU added 4 more countries to the red list (increased cases) including Netherlands, Denmark, Iceland and Hungary.  (Spain, France, Czech Republic, and Luxembourg were already listed).  At the same time German Chancellor Merkel is meeting with the leaders of Germany’s 16 states to discuss introducing tougher restrictions.

Overnight, Asian markets were mixed again, but closer to flat.  Shenzhen and South Korea paced the gainers while Hong Kong and most of the smaller economies all came in at half a percent to one percent loss.  In Europe markets are leaning to the down side, but the worst of these moves is just over a half percent loss.  Among the 3 major bourses, CAC is flat, DAX down 0.31%, and FTSE down 0.25%.   At 7:30am, US futures are all just on the red side of flat

The major economic news for Tuesday includes August Trade Balance and August Retail Inventories (both at 8:30 am), Conf. Board Consumer Confidence (10 am), and 5 different Fed speakers (Williams at 9:15 am, Harker at 9:30 am, Clarida at 11:40 am, Quarles at 1 pm, and William again at 1 pm).  Major earnings reports are limited to INFO and MKC before the open and MU and SNX after the close. 

Markets may press pause today as they wait on the outcome of the first Presidential Debate tonight. The bulls have strung together a couple of consecutive nice days, but we still sit at resistance after a pullback of the last four weeks. This is still a volatile market with quarter-end in a couple of days. Don’t try to predict. Either sit on the sidelines or be small and quick in your trading.  If you do trade, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in those profits, because singles and doubles are the keys to success.

Ed

Swing Trade Ideas for your Consideration and Watchlist: LB, ETSY, QCOM, MRVL. 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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