Large Caps gapped a little over a half percent higher at the open.  The rest of the day saw a sideways rollercoaster chop within a half percent range.  The tech-heavy QQQ did the same thing except that its gap and chop range were both eight-tenths of a percent instead of half a percent.  On the day, QQQ was up 1.35%, DIA was up 0.90%, and SPY was up 0.70%.  VXX was flat, closing at 28.46 and T2122 rose back close to the overbought territory at 79.59.  10-year bond yields gained a bit to 0.554% and Oil (WTI) rose back to $40.78/barrel. 

On Monday MSFT confirmed they are in talks to buy the TikTok application.  MSFT stock was up over 5.6% on the news. As we know President Trump has threatened to ban the application, ostensibly on security concerns. However, many analysts see the move as a means of slowing Chinese growth in data technology, an industry dominated by US companies. Hence, the President’s “suggestion” the MSFT buy the whole company and not just North American operations. Regardless, the ban threat is the impetus for Chinese company Byte Dance to sell the app. However, going a stunning step further, Trump said Monday that the US government should be paid a substantial amount of money because he is the one forcing Byte Dance to sell.  “Nice business you have there, it’d be a shame if it burned down.  And it will burn down unless you sell it to somebody I like better, by a specific date, and I also get a nice cut from the deal.”

During the day, several Fed members pushed the urgency of getting more fiscal relief.  Bloomberg cited comments from 4 of the Fed voters essentially saying it is critical that more money is pumped into the economy from the fiscal side…and soon.  They all also made the point that unless inflation spike North of 2%, the Fed will do nothing to slow their own stimulus programs. Meanwhile, on the fiscal side haggling resumed Monday. All sides said the talks were productive, but there was no deal reached.  In another Fed-related story, the FOMC said it has raised its own borrowing limit again, this time to $1 trillion for Q3 in order to support its monetary stimulus programs.

In the US, the virus numbers show we have 4,862,513 confirmed cases and 158,968 deaths.  The daily new case count fell precipitously (and perhaps suspiciously) Monday to 48,622 (from over 71,000 Friday or even 68,000 the prior Monday for example). This could be an anomaly, the result of HHS taking over data collection/reporting, or simply great luck.  In any event, IF the numbers are accurate this is a major 30% step in the right direction.  Deaths stayed at their normal pattern of low Monday numbers at 568, but even so a tremendously lower number Friday or even the previous Monday.

Globally, the number of cases has reached 18,476,324 confirmed cases and 698,224 deaths.  In Australia, they have deployed their military to enforce isolation as well as levying very stiff fines in order to curb the spread.  In Europe, a German Medical Assn. reported today that they believe the country is now experiencing a second wave.  This also fits with the surge of cases seen in Spain.  In Asia, India reported a sixth straight day of over 50,000 new cases reported (number seen to be widely under-reported in that country due to medical infrastructure and testing capacity).

Overnight, Asian markets were mostly well to the positive side.  Only Shenzhen was red and Shanghai flat.  The rest of the Asian markets were strongly green.  In Europe, markets are a bit more mixed and much closer to flat as poor earnings and dividend cuts such as by BP take their toll.  The DAX is in the red with the CAC flat, and the FTSE modestly green so far today.  In the US, at 7:45 am futures are pointing to a modestly lower open.  The DIA and SPY are looking at an open about 0.30% lower, while the is looking toward a gap down of 0.45%.  

The major economic news for Tuesday is limited to June Factory Orders (10 am).  The major earnings reports on the day include ACM, AMCX, AME, ARMK, ATI, BP, EMR, EXC, EXPD, FIS, HSIC, IT, LDOS, LEA, OMI, REZI, SPR, TDG, USFD, VMC, WEC, WRK, and ZBH all before the open.  Then after the close ACHC, ALL, ATVI, AIZ, BBSI, DIS, DK, DVN, ENLC, EQH, FNF, FOXA, MCHP, OI, PAGP, PRU, PXD, TX, and WU report.

Markets are not wildly bullish, but the whippy grind higher continues.  A positive trend in virus news certainly can’t hurt, even if it is only one data point so far.  However, the real driver is the negotiations on a stimulus deal.  When reached, that should buoy markets as we know Mr. Market loves him some free money.  

As always, keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Remember, our job is to make our goal consistently, not to win the lottery on one trade.

Ed

The Daily Swing Trade Ideas for today: AA, NIO, TAL, EBAY, TNA, DHI, XRT, CARR. 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