On Friday, the large-caps opened flat and then put in a volatile day.  Meanwhile, the QQQ gapped down about a half of a percent and then after a morning bounce spent the afternoon selling off.  This left us with a black Doji in the SPY, a white Spinning Top in the DIA, and a black candle in the QQQ.  On the day, SPY lost 0.27%, DIA gained 0.40%, and QQQ lost 1.40% as money rotated out of the high-growth tech stocks and into defensive sectors.  The VXX rose over 2.5% to 24.57 and T2122 came back up to near mid-range at 53.47.  10-year bond yields ended up again to 2.704% and Oil (WTI) gained almost 2% to $97.90/barrel.

In miscellaneous business news, Elon Musk made the surprise announcement that he has rejected a seat on the TWTR board.  This came a day after he suggested a number of changes to the TWTR Blue subscription program, including having the company add the ability to accept payments in dogecoin.  Bloomberg reports that F may reopen the factories it closed in India to make electric vehicles.  This news comes 2 days after the company’s joint venture in Turkey has begun production of an electric version of the company’s Transit van. Elsewhere, Chinese EV maker NIO raised prices by about $1,600. That company has also had to halt production due to Covid closure of their plant.

SNAP Case Study | Actual Trade

On the Russian invasion story, on Saturday, UK PM Johnson visited Kyiv to promise the Ukrainians armored vehicles, anti-ship missile systems, and $500 million in added World Bank loan guarantees.  This brings Britain’s loan guarantees for Ukraine to $1 billion.  Meanwhile, S&P downgraded Russia to “selective default” on Saturday.  Most analysts believe the country will at least partially default on the $649 to bond holders that is due today.  As of now, Russia has only promised to place the equivalent in Rubles in its own National Settlement Depository (meaning it would be inaccessible to the lenders until after sanctions).  Still, the World Bank said on Sunday that despite the “heavy sanctions” Russia faces, they expect the Russian economy to contract by only 11% for 2022 (compared to 45% for Ukraine).

Economic news for later this holiday-shortened week includes March CPI, 10-year note auction, and Federal Budget Balance on Tuesday.  Wednesday brings March PPI and Oil Inventories.  On Thursday we get March Retail Sales, March Import/Export Indices, Weekly Jobless Claims, February Bus. Inventories, Michigan Consumer Sentiment, and a Fed speaker.  US Markets are closed for Good Friday, but we get NY Empire State Mfg. Index and March Industrial Production numbers.  Also, remember that Friday is Tax Day in the US.

Overnight, the Asian markets were red across the board, with the lone exception of Australia (+0.10%) which eked out a small gain.  Shenzhen (-3.67%), Hong Kong (-3.03%), and Shanghai (-2.61%) led the region lower after higher-than-expected Chinese Consumer and Producer Price news showed that inflation is running at 8.3% in that country.  In Europe, stocks are mixed at mid-day.  The FTSE (-0.28%), DAX (-0.19%), and CAC (+0.74%) are typical of the spread across the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing to a red start to the morning.  The DIA implies a flat -0.04% open, the SPY is implying a -0.34% open, and the QQQ implies a -0.71% open at this hour.  10-year bond yields are also spiking again to 2.759% and Oil (WTI) is down more than 3.75% to $94.58/barrel in early trading.

There is no major economic news scheduled for release on Monday.  However, Fed member Bostic speaks at 9:30 am.  There are also no major earnings reports scheduled for the day.

Notable Earnings Reports for this week include a slow start with none on Monday.  However, on Tuesday we get ACI and KMX.  Then Wednesday earnings ramp back up with BBBY, BLKL, DAL, FAST, FRC, INFY, JPM, and SJR.  On Thursday we get ALLY, C, ERIC, GS, MS, PNC, PGR, RAD, STT, TSM, USB, UNH, and WFC.  There are no earnings scheduled for Friday.

The lack of economic news or earnings this morning has traders searching for a clue ahead of the open. Still, the war continues in Ukraine, China has realized they have serious inflation (which is a problem given that they are still easing to promote growth), and earnings season kicks off again on Wednesday. So, we may see more tepid moves and volume today as markets wait for the next shoe to drop. With all this said, we should expect more volatility and be prepared for intraday reversals. That means either being very nimble/quick, being hedged, or having loose enough stops (and the ability to withstand short-term pain) to ride out the whipsaw action. Trade carefully and position yourself so that shocks in either direction don’t throw you into a panic.

Remember, big bank earnings start Wednesday and markets are closed Friday (Good Friday). So, you don’t have to chase trades early this week. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. Remember that the first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: WEAT, AAP, STX, TGT, NKE, SYY, DIS, CSCO, KLAC, AMAT, HAS, ROKU. 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service