Markets gapped up about half a percent Friday to new all-time highs, but then put in indecisive action, undulating sideways the rest of the day.  This left the QQQ with a gap-up Doji and both large-cap indices with gap-up, black-body spinning tops.  As a result, the SPY and QQQ closed at all-time high closes and the DIA just missed.  On the day, SPY gained 0.39%, QQQ gained 0.34%, and DIA gained 0.28%.  This made for a big week and the longest winning streak since late August.  The VXX was flat at 16.47 and T2122 (4-week now high/low ratio) rose further into the overbought territory at 93.33.  10-year bond yields rose significantly to 1.169% and Oil (WTI) rose about half a dollar to $56.85/barrel.

On the relief plan front, over the weekend President Biden said he believed the increase to a $15/hour minimum wage would not survive the reconciliation process.  In related news, Senator Sanders said he opposes the tightening of eligibility for a $1,400 stimulus check (opposes tightening the income cap).  Sunday Treasury Sec. Yellen told CNN that passage of the $1.9 trillion relief package could return the US to full employment in 2022.  This came in response to former Treasury Sec. Summers raised questions over whether additional stimulus in that amount might cause a stock market bubble and bring inflation faster.

In regulatory filings Monday, Hyundai and Kia said they are not in talks with AAPL to make the autonomous “Apple Car.”  The companies said they have gotten requests from multiple companies to partner on autonomous, electric vehicles, but no partnerships have been decided this early.  Those South Korean stocks fell sharply on the news, but the announcement may have a follow-through effect even on AAPL.  This may also be fallout from AAPL not being pleased that their secrecy was breached by earlier reports that AAPL was working with those two companies on the project.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 27,611,403 confirmed cases and 474,933 deaths.  However, the number of new cases continues the recent trend of falling quickly and is back down to the pre-election level as the average new cases are now 116,256 new cases per day.  Still, deaths remain stubbornly high at 3,020 per day.  A study published Sunday found that the number of UK variant cases is doubling in the US every 10 days.  This coincides with the CDC model predicting it will be the most prevalent Covid-19 mutation in the US by March.  Later in the day, President Biden answered CBS a reporter by saying that it will be very difficult to reach herd immunity by the end of summer.

Globally, the numbers rose to 106,751,887 confirmed cases and the confirmed deaths are now at 2,328,753 deaths.  In good news, the world’s average of new cases is down again to 446,334 per day, but mortality remains high at 12,394 new deaths per day.  Early data suggests the AZN vaccine offers only minimal protection against the South African variant (after 2 doses), even among young healthy adults, according to a study co-authored by Oxford University.  The good news is that Oxford also said a new vaccine to tackle the South African variant should be in the autumn.  In the meantime, South Africa has suspended AZN vaccinations.

Overnight, Asian markets were mostly green.  The only significant loss was in South Korea (-0.94%).  Meanwhile, Japan (+2.12%), India (+1.28%), Shenzhen (+1.21%), and Shanghai (+1.03%) led the gainers. In Europe, we see a similar story taking shape as only Denmark is in the red at this point.  The FTSE (+1.01%), CAC (+0.71%), and DAX (0.26%) are typical of the bullish movement on the continent so far today.  As of 7:30 am, US Futures are pointing toward a modestly green open.  The DIA is implying a +0.40% open, the SPY implying a +0.32% open, and the QQQ implying a +0.28% open at this point.

There is no major economic news scheduled for Monday.  Major earnings reports on the day include CNS, ENR, GTES, GPN, and HAS before the open.  Then after the close, ACM, AMKR, BECN, BAP, KKR, LEG, OMF, RGA, SPG, TTWO, and TFII report.

With Stimulus now a done deal, the focus turns to whether any horse-trading can bring any Republicans onboard. However, that story really only has the day to play out as eyes will turn to the Impeachment Trial of ex-President Trump on Tuesday. Just more political theatre as GOP Senators have already voiced that they will not convict him. Earnings will be the other driver this week, but today is a relatively light day. At any rate, coming off the best week since November and with Futures pointing up this morning, the bulls have the upper hand.

Remember, nobody ever sustained a career by picking reversals…so don’t do it. Follow the trend, respect support and resistance levels, and don’t chase the moves you missed.  Keep locking in your profits when you have them. It’s all about achieving trade goals and sticking to your discipline.  Our job is to produce consistent gains…not catch lightning in a bottle. So, stick with your plan, maintain discipline and work your process. Also, remember that it’s Friday…and Friday is payday. So, don’t forget to take some profits off the table to pay yourself ahead of the weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: ABT, STX, CLF, GILD, NKE, ORCL, BOOT, KO, OSTK, SNAP, ZM, TGTX, MO, BCLI, SCHW, CAT. 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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