Tuesday saw yet another attempt to push the SPY up through its all-time highs.  A bit of a gap-up across the board came off blowout earnings from WMT and HD.  However, WMT also said consumer spending has fallen off since both the stimulus checks and enhanced unemployment money have been exhausted.  The QQQ and SPY (barely) closed at new all-time highs.  However, all 3 major indices did print indecisive candles, especially the SPY.  On the day, SPY closed up 0.20%, DIA down 0.25%, and QQQ up 0.96% as AMZN, TSLA, and GOOG pushed the Nasdaq higher.  VXX fell slightly to 24.33 and T2122 fell back to mid-range at 67.27.  10-year bond yields fell to 0.669% and Oil (WTI) pulled back a touch to $42.57.

This morning JNJ announced they are buying MNTA for $6.5 billion ot improve their portfolio of autoimmune disease treatments.  LOW also reported a blowout Q2 on a 30% revenue surge as consumers do home projects.  In addition, TGT saw profits jump 80% in Q2 as revenues grew 24.3% year-on-year (on a 700% increase in online sales) during the pandemic.  This was a $2 billion revenue beat and more than double the expected earnings.

On the virus front, in the US, the numbers show we now have 5,656,204 confirmed cases and 175,092 deaths.  While the new cases are falling, the 7-day averages remain stubbornly just over 49,000 new cases and 1,047 deaths per day.  Three more major colleges have confirmed outbreaks or announced virtual classes to avoid the same.  Notre Dame has closed for 2 weeks, Michigan State announced virtual classes for fall, and NC State has identified a cluster of cases in both multiple fraternity houses.  Meanwhile, many other colleges (Tennessee, Iowa State, Appalachian State, etc.) reported clusters of new cases as students return or football teams practice.

Globally, the number of cases rose to 22,334,752 confirmed cases and 784,875 deaths.  Ireland tightened restrictions again, limiting the size of outdoor gatherings, discouraging public transport, and implementing hour limits on restaurants and bars.  France announced it will require face masks in all office jobs starting September 1.  In South Korea, they reported the largest jump in confirmed cases of the last 5 months.

Overnight, Asian markets remained mixed, but leaned heavily toward the red.  China and Thailand paced the losers while the only gainers worth mentioning were Australia (+0.72%) and South Korea (+0.52%).  In Europe, markets are also mixed, but lean more to the positive side of flat.  The FTSE is up 0.22%, SAX up 0.30%, and CAC up 0.16% at this point in their day.  In the US, the futures are pointing at a mixed, flat open despite the great earnings reports this morning.   

The major economic news for Wednesday is limited to Crude Oil Inventories (10:30 am) and FOMC Meeting Minutes (2 pm).  Major earnings reports include ADI, LOW, TGT, and TJX before the open.  Then after the close LB, NVDA, and SNPS report.

The SPY remains right at the breakout level, this time a Doji with the body leaning on top that level.  It certainly appears the summer doldrums have taken hold the last week in that index.  For its part, the DIA follows suit just drifting sideways.  Only the QQQ has shown any energy recently.  That said, no news is sometimes good news.  Maybe traders are just waiting on Republicans and Democrats to finish their conventions and reach a stimulus deal. 

All we can do is follow the trend and stick to our trading rules.  Don’t try to predict any reversals or breakouts.  Don’t chase moves you have missed.  Above all, take profits as you go.  Remember, our job is to be consistently profitable, not get rich in a few months.  Happy Hump Day.

Ed

The Daily Swing Trade Ideas for today: CAR, SPWR, SAIL, PZZA, YUM, NKE, SEE, SCHW, CL. 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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