The market opened flat after hope for stimulus was offset by a big November Retail Sales miss in the premarket.  After that markets ground sideways the rest of the day.  All 3 major indices printed indecisive candles (more wick than body), but QQQ also closed at another all-time high close.  On the day, SPY was up 0.13%, DIA down 0.16%, and QQQ gained 0.55%.  The VXX lost 3% on the day to 16.98 and T2122 fell a bit to 89.27 (still well into the overbought territory).  10-year bond yields were up to at 0.921% and Oil gained slightly to $47.83.

During the day, it was leaked that Congressional Leaders had more or less finalized negotiations on a $900 billion stimulus bill Tuesday night.  The deal reportedly will not include either business liability waivers or aid to state/local governments.  However, it will include another $600 direct payment to Americans.  The hope was to introduce the bill Wednesday after having it written up.  However, that did not get done.  So, Senate Majority Leader McConnell told Senators to be ready for a weekend vote on the bill.  This would mean the government would shut down just after midnight Friday night as the Stimulus bill will be attached to a government funding extension.  Also, during the day, the Fed raised its economic forecast to 4.2% GDP growth and unemployment back down to 5% in 2021.  Beyond that, Fed Chair Powell said they are holding rates the same and will continue with current policies (near-zero rates, bond buying, etc.) until we reach full employment.

GOOG was also sued Wednesday for antitrust activities by 10 states Attorneys General, led by Texas.  This suit also names FB as a co-conspirator and focuses on the alleged monopoly of advertising technologies and services (data tracking, which enables ad targeting).  This comes just a day after the new European law was proposed which will regulate and fine the same technologies as too invasive to personal privacy.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,394,314 confirmed cases and 314,629 deaths.  Wednesday saw another record number of new cases (248,646) and deaths (3,538).  This brings the 7-day averages of 220,217 new cases and 2,570 deaths per day.  Meanwhile, the FDA approved a second over-the-counter rapid home covid-19 test (from ABT) on Wednesday.  On Thursday the FDA Vaccine Advisory Panel will debate and then vote on whether to recommend the MRNA vaccine for emergency use.  (Spoiler alert: they’ll recommend it.)  Following a recommendation, it will take hours to a day for the FDA to approve emergency use and shipping of the vaccine will begin about a day after that approval (which will give the CDC time to approve the administration of the MRNA vaccine).

Globally, the numbers rose to 74,662,200 confirmed cases and the confirmed deaths are now at 1,658,062 deaths.  As a reference, the world is averaging about 637,000 new cases and almost 11,000 new deaths per day.  French President Macron has tested positive shortly after a meeting with other EU leaders.  So, many other EU leaders are also now in isolation.  In Seoul South Korea, they have experienced the first case of a Covid-19 patient dying while waiting on a hospital bed to open up.  This comes as Japan also reported another increase in ICU patients. Interestingly, in Russia, President Putin told his media that mass vaccinations using the Russian “Sputnik” vaccine were necessary for the country. However, he said he would not personally be getting vaccinated because he was “too old.” (This from a man who constantly promotes the idea of his strength, vigor, and fitness.)

Overnight, Asian markets were mixed, but leaned to the green side.  Australia (+1.16%), Shanghai (+1.13%), and Shenzhen (+0.93%) led the gainers.  Singapore (-0.51%) and Malaysia (-0.42%) led the modest losses.  In Europe we see a similar picture so far today.  Russia (+1.07%) is an outlier, but the FTSE (+0.01%), DAX (+0.80%), and CAC (+0.40%) are typical.  The only losses are very modest and seen among the smaller exchanges in Europe.   As of 7:30 am, US futures are pointing to another modestly bullish open.  The SPY is implying a +0.52% open, the DIA implying a +0.42% open, and the QQQ implying a +0.48% open at this point in the premarket.    

The major economic news for Thursday includes Nov. Building Permits, Nov. Housing Starts, Weekly Initial Jobless Claims, and the Philly Fed Mfg. Index (all at 8:30 am).  The major earnings reports include CAN, GIS, JBL, NAV, RAD, SAFM, and WOR all before the open.  Then after the close BB and FDX report.

With a considerable amount of economic data at 8:30 am, it is hard to gauge the open just yet. However, the bulls have the upper hand at the moment. With the announcement of a stimulus deal ready for voting and the approval of another vaccine expected, they should have the edge later in the day as well. However, we are counting on politicians and bureaucrats to deliver as expected. So, continue to be careful not to bank too much on the news. Remember a lot of potentially bad news from the virus itself is still possible.

Keep working the process and booking those base hits. Money in the bank trumps a “possible lottery ticket” every time. Keep your discipline and respect the trend, support and resistance, and price action. In short, get rich slowly…one trade at a time, just consistently achieving goals.

Ed

Swing Trade Ideas for your consideration and watchlist: WYNN, CHFS, SONO, VALE, AMD, CLF, X, BLNK, DKNG, CELH, FTCH. 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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