We saw a divergence on Friday.  The SPY opened flat and then meandered sideways all day, leaving a black-bodied indecisive candle with a larger upper wick.  The DIA gapped down, sold off for half an hour and then meandered sideways the rest of the day, leaving a large black-bodied candle.  However, the QQQ gapped higher at the open and rallied for half an hour before doing the same sideways meander the rest of the day.  This left it as a white-bodied Spinning Top candle.  On the day, QQQ gained 0.56%, SPY lost 0.18%, and DIA lost 0.96%.  The VXX rose to 20.96 and T2122 dropped into the oversold territory at 16.43.  10-year bond yields fell significantly to 1.541% and Oil (WTI) was down over 4% before closing down 3.67% at $76.11/barrel (a 6-week low).

After the close Friday, F and RIVN announced they are canceling plans to co-develop an electric vehicle.  F still retains a 12% ownership stake in RIVN.  The CEO of F (Jim Farley) referenced “growing confidence” that F can “win in the electric space” by itself as part of the reasoning for the announcement.

Protests against Covid rules, lockdowns, and vaccination requirements broke out across Europe over the weekend.  As cases have reached all-time highs (by a considerable margin) in places like Germany and Austria and cases are rising in France, Italy, UK, etc.  Going into Winter, this could be a very bad situation for that region and its economy…and by extension, the US and Asia.  

Overnight, Asian markets were mixed.  South Korea (+1.42%) and Shenzhen (+1.41%) led to the upside, while India (-1.96%) paced the losses.  However, outside of those 3 exchanges, most moves in the region were modest.  In Europe, markets are mostly red at mid-day.  The FTSE (flat), DAX (-0.06%), and CAC (-0.12%) are fairly indicative of the region in early afternoon trading with the exception of Russia (-2.75%) which continues to get hammered on the recent fall in oil prices.  As of 7:45 am, US Futures are pointing toward a green open.  The DIA is implying a +0.25% open, the SPY implies a +0.29% open and the QQQ implies a +0.40% open. 

The major economic news scheduled for release Monday is limited to Oct. Existing Home Sales (10 am).  Major earnings reports scheduled for the day are limited to AVYA before the open.  Then after the close, A, KEYS, URBN, and ZM report.

Sorry for the delay this morning. A lack of sleep the last 3 days has caught up with me. Remember this is a short week for the market. Expect light volume, especially as the week wears on as traders look to extend the holiday or get an early jump on Travel.

So, watch your current positions before looking to add any new trades. Consider how you want to enter the weekend news cycle (and potential low-volume week ahead) and if there is any profit-taking or hedging to get done. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas today. 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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