On Thursday, all 3 major indices put in indecisive Doji-like candles at the all-time highs, but failing to great out of resistance.  Even the lower than expected Initial Jobless Claims number did not help.  On the day the SPY was on the red side of flat (-0.03%), the QQQ on the green side of flat (+0.14%), and the DIA was mildly positive (+0.28%).  The VXX rose just under one percent to 17.41 and T2122 rose again to 91.16, deep in overbought territory.  10-year bond yields fell to 0.911% and Oil (WTI) rose a bit to $45.65/barrel.

The DOJ sued FB Thursday, claiming the company has been discriminating against American workers by reserving 2,600 high-wage jobs for only foreign temporary visa holders.  PFE stock was also fell when a report came out the company only expects to ship only half (50 mil. doses vs. 100 mil.) of the Covid-19 vaccine that was originally planned and promised by year end.  The cause was said to be “supply chain problems” (raw materials that were not below standard).  After hours, the Pentagon blacklisted 4 Chinese firms, including SMIC and CNOOC (adding them to the same list a Hauwei).

On the stimulus front, House Speaker Pelosi and Senate Majority Leader McConnell met to further discuss stimulus Thursday.  McConnell said afterward that there were hopeful signs of reaching a deal before year-end.  While McConnell still claims to back only half the amount the Democrats and a bipartisan Senate group propose, the main sticking point seems to be McConnell’s insistence the bill include blanket Covid-related liability waivers for businesses

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 14,532,196 confirmed cases and 282,829 deaths.  Thursday saw another record 218, 576 new cases and 2,918 deaths.  That said, the 7-day average of new cases is at 176,145 while deaths are averaging deaths rise to 1,876/day.  CA expanded on the Los Angeles lockdown, implementing regional “Stay at home” orders in areas of the state where the remaining ICU bed capacity has fallen below 15% of normal.

Globally, the numbers rose to 65,664,051 confirmed cases and the confirmed deaths are now at 1,514,619 deaths. In Asia, Hong Kong reports it is undergoing a “fourth wave” and Seoul South Korea is increasing restrictions in the city to fight what the Mayor reports is a “desperate crisis” as the country reported the highest increase in cases since March.  Elsewhere, Tokyo reports that COVID-19 has raised the budget for the Olympics from $2.7 billion to $15.3 billion.

Overnight, Asian markets were mixed.  South Korea (+1.31%) and Taiwan (+1.11%) led the gainers.  Losses were more modest and Japan (-0.22%) and Malaysia (-0.39%) are typical of the losses.  In Europe, markets are almost green across the board.  Only the DAX (-0.16%) has failed to “get with the bull program” so far today.  The FTSE (+0.82%) and CAC (+0.36%) are typical with no exchange moving one percent yet.  As of 7:30 am, US futures are pointing to modestly higher open.  The DIA is implying a gain of 0.48%, The SPY a 0.38% higher open, and the QQQ a 0.33% open up.  However, remember we have a lot of data between now and the open.

The major economic news for Friday includes Imports/Exports, Nov. Avg. Hourly Earnings, Nov. Nonfarm Payroll, Nov. Participation Rate, Oct. Trade Balance, Nov. Unemployment Rate, and Q-on-Q Unit Labor Costs (all at 8:30 am), and Oct. Factory Orders (10 am).  There is also a Fed Speaker (Bowman at 10 am).  Major earnings are limited to BIG before the open.  There are no major reports after the close.

A big economic news day and hope related to stimulus talks are likely to call the tune at least early on in the day. At this point, we seem to be following Europe with an implied move to the upside. Regardless, keep in mind that we are at all-time highs, in an overbought market, and this is Friday. So, even if you don’t want to avoid weekend news cycle risk, there is a possibility that others will by day end. 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: SBUX, LPX, T, UAA, PINS, CMCSA, TUP, KO. 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.

Hit and Run Candlesticks / Road To Wealth Youtube videos

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