Large-caps stocks gapped up slightly on Tuesday and followed through for the first 30 minutes.  After that, the rest of the day was a long, slow sideways grind with a slightly bearish trend.  However, the QQQ did a small gap higher and immediately sold off at a slow pace for the rest of the day.  Again, this was all done on very light volume.  This action left the SPY as a black-bodied Spinning Top, the QQQ just missing on being a Dark Cloud Cover, and the DIA as a white-bodied candle with a large upper wick.  On the day, SPY lost 0.06%, DIA gained 0.29%, and QQQ lost 0.43%.  The VXX fell 2.69% to 19.17 and T2122 fell but remains in the overbought territory at 83.79.  10-year bond yields rose to 1.484% and Oil (WTI) rose a half of a percent to $76.01/barrel. 

Markets continued to rotate out of high-tech names.  Meanwhile, travel stocks were amongst the strongest as the recovery from the effects of the flight cancellations continued for a second day.  However, it was the mega-cap DIA that made the biggest splash as it completed 5 straight up days to close at a new all-time high close.

Elon Musk sold another $1.02 billion worth of TSLA stock on Tuesday (934,090 shares) in an effort to raise funds to pay the tax on the stock options he is exercising.  However, he also exercised options giving him another 1.6 million shares during the day.  So, he pocketed a billion dollars and still ended the day with nearly 700k more shares than when it started.  A nice gig if you can get it.

Covid (and omicron in particular) continues to make news this week.  France reported a record number with 180,000 new cases reported today.  Meanwhile, the UK (same size population) reported 129,000 new cases today.  However, the good news out of the UK is that the number of patients in the ICU remains very low in this latest wave and the UK Health Minister says patients are spending a relatively short time in hospital when they are admitted.

Overnight, Asian markets were mixed, but the major exchanges leaned to the downside.  Shenzhen (-1.24%), Shanghai (-0.91%), and South Korea (-0.89%) paced the losses.  Meanwhile, Australia (+1.21%) and Thailand (+0.72%) led the gains.  In Europe, markets are mostly lower in modest trading at mid-day.  The FTSE (+0.82%) is an outlier to the upside, but the DAX (-0.40%) and CAC (-0.05%) are typical of the region where just 4 exchanges show any green at all in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA implies a +0.02% open, the SPY is implying a +0.06% open, and the QQQ implies a +0.15% open at this hour.  10-year bond yields are up to 1.494% and Oil (WTI) is down six-tenths of a percent in early trading.

The major economic news scheduled for release Wednesday includes Nov. Retail Inventories and Nov. Trade Goods Balance (both at 8:30 am), Nov. Pending Home Sales (10 am), and Crude Oil Inventories (10:30 am).  There are no major earnings reports scheduled either before or after the market Wednesday.. 

As we grind toward year-end, volume continues to dry up. Canada will be back to trading today but expect very much the same story up North as we have seen in the US this week. With that said, beware of volatility as the very light volume gives both the bulls and the bears an easier path to pushing swings in the short term. Remember, plan the trade and trade the plan…and that includes stops and/or hedges.

Remember the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, stick to your trade rules and on managing the things you can control. When you’re wrong, admit it and take your loss. (That’s why we set stops.) Trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: DD, AOS, AME, FMC, SEE, DOV, IR, RAD, JCI, FCX. 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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