Yesterday saw some serious whipsaw, with a 10am free-fall on the extremely poor Non-Mfg. ISM number, followed by an immediate bounce-back.  This rebound seems to be built on markets pricing in a 90% chance of further Fed rate cuts in the Oct. FOMC meeting.  With that said, the bulls found their footing again late in the day and drove a rally right into the Close.  In the process, the SPY and DIA both climbed back above the uptrend (of Lows) line running back into June.

This chart action gives us a high probability of a higher high on Friday.  Markets may even try to fill the Thursday Open gap.  However, nothing is guaranteed with markets unable to string together two consecutive up days for several weeks now. Needless to say, if we are going higher off yesterday’s strong recovery, the bulls still have A TON of work to do (and levels to work through) to even break the downtrend (of Highs, which runs back to mid-September). 

Overnight Asian markets were mixed and European markets are mostly in the green so far. As of 7:30 am, US futures are pointing to a one to two- tenths gap lower.

Today’s economic news includes Durable Goods Orders and Nonfarm Payrolls and Unemployment before the open.  These could very well be market-movers as a follow-up to the bad ISM data this week. (Of course, we don’t know if the market will be in a “bad news is bad news” or a “bad news means more helicopter money” mood. This will all be followed by half a dozen Fed speakers (including Chair Powell) during the day.  On other fronts, Impeachment, Brexit and the Hong Kong protests (or counter-reaction) will undoubtedly dominate the news.

The bottom line is that it is very hard to swing trade these markets until we start getting less “gaps and whiplash” and more “trend and follow-through.”  So be careful chasing after one nice (or ugly) candle.   Remember that Friday is payday.  So, be sure to book some profits in front of an unpredictable weekend of news.

Ed

Sorry there are no trade ideas today. We wish you a fantastic weekend.

✅ SMS text alerts and reminders?👈

✅ Check out our newest YouTube videos👈

🎯 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.

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