On Friday, all 3 major indices had a slight gap up and then the bulls followed through early.  After about 10 am, the rest of the day was a sideways grind.  On the day, the large-caps led as the SPY was up 0.86%, DIA up 0.84%, and the QQQ up 0.41%.  All 3 of the indices then closed at all-time high closes.  The VXX fell almost 2% to 17.11 and the T2122 remains deep in overbought territory at 96.91.  The 10-year bond yields spiked (as money flowed out of bonds) to 0.973% and Oil (WTI) was up at $46.09/barrel.

Over the weekend, leaks from both sides indicated that a stimulus deal could be agreed in the next day or two at an agreed price tag of $908 billion.  GOP Senators have said that Senate Majority Leader McConnell and President Trump will support the legislation.  One of the agreed provisions seems to be a second $1,200 stimulus check, which retailers (particularly online retailers) will find very appealing, assuming it is not too late to get the checks out by year-end.

Chick-fil-A restaurant chain filed suit against all the major poultry suppliers (TSN, PPC, SAFM, JBSS), alleging price-fixing.  In other corporate news, Airbnb raised the price range for their IPO due out on Thursday from $44-$50 to $56-$60 per share.  KODK stock also shot as much as 70% higher in pre-market trading as a federal agency found that they had found no evidence of conflicts of interest from the unusual trading around the July announcement of the company’s pivot and announced government contract to supply ingredients for a potential Covid treatment.

Related to the virus itself, US infections continue to rage across the US.  The totals have risen to 15,159,529 confirmed cases and 288,906 deaths.  Friday saw another record 237, 372 new cases and 2,742 deaths.  The 7-day average of new cases is at 200,012 while deaths are averaging 2,258/day.  The country hit another record number of Covid hospitalizations Sunday as we have seen over 1 million new cases in the first 5 days of the month alone.  In CA, more regions of the state were put under a “stay at home” order, including the San Francisco, Los Angeles, and San Diego regions.  All in all, 33 million of the state’s residents are under the order as cases, ICU capacity, and deaths are at extreme levels. That said, we should also note that the FDA is expected to approve the emergency use of the PFE-BTNX vaccine on Thursday with first vaccinations likely to happen within a day after the approval. A vote on the approval of the MRNA vaccine is expected a week later. Distribution of both will still be challenging as many states only have a handful of hospitals in their entire state with the ultra-cold freezers needed to store and distribute these two vaccines.

Globally, the numbers rose to 67,493,569 confirmed cases and the confirmed deaths are now at 1,543,627 deaths.  In Europe, Denmark has announced a partial lockdown after many cities report record new cases.  The UK is set to begin administering the first batch of PFE-BTNX vaccine on Tuesday.  In Asia, Japan saw another record number of new cases Sunday and South Korea is implementing new restrictions to stay ahead of the spread.  In Indonesia, 1.2 million doses of a Chinese Covid-19 vaccine have arrived with another 1.8 million doses scheduled to arrive by early January.

Overnight, Asian markets were mixed.  Hong Kong (-1.23%) and Shanghai (-0.81%) led the losses while Indonesia (+2.07%) and Taiwan (+0.88%) led the gainers.  In Europe, we see a similar pattern so far in their day.  Belgium (-0.87%) and the CAC (-0.74%) are leading the downside push while Denmark (+0.59%) and the FTSE (+0.38%) lead the gainers.  As of 7:30 am, US futures are pointing to a lower open.  The SPY (-0.37%), DIA (-0.41%), are implying a small gap down while the QQQ (-0.10%) indicates an open on the red side of flat.

There is no major economic news for Monday.  Major earnings releases include JKS before the open and CASY and TOL after the close.

A lack of major econmic news is likely to be overwhelmed by optimism as the UK begins vaccinations with the US a few days behind. That plus the hope for economic stimulus may be enough to let the bulls run. Keep in mind that we are at all-time highs, in an overbought market, and the gains seem tentative. So, just be careful.

As always, don’t predict reversals (the trend is your friend until it is broken), but also don’t chase moves you missed. Respect support and resistance, the trend, and price action. Remain disciplined to your trading rules. Keep booking those singles and doubles. It’s the profits you take that pay the bills, not bragging rights of picking the very top.

Ed

Swing Trade Ideas for your consideration and watchlist: BERY, FUL, KNSL, KURA, RS, FOLD, STNG, ALB, ADP, CCK, ADT, CRBP, XLB, ARNC. 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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