Markets made a modest gap higher on Friday after the March Payrolls report came in with fewer jobs added than expected.  However, it makes the 11^th straight month of more than 400k jobs added, the participation rate is essentially where it was pre-pandemic, and the unemployment rate fell to 3.6%.  After the open stocks meandered their way back down to the lows at about 1:30 pm before an afternoon rally took all 3 major indices back up off the lows.  This left us with black Hammer-type candles in all 3, although you could make a strong argument for a Doji in the DIA.  All 3 are close to their T-lines as of the close, after testing that level.  On the day, SPY gained 0.28%, DIA gained 0.34%, and QQQ lost 0.20%.  The VXX fell 2.6% to 25.03 and T2122 climbed back just outside the overbought territory to 75.53.  10-year bond yield retreated during the day but still closed up at 2.371%.  It is worth noting that both the 2s vs 10s and 5s vs 30s bond yields are inverted, which is broadly seen as an indicator that there will be a future recession. Oil (WTI) fell seven-tenths of a percent to $99.56/barrel as the UK followed President Biden’s example and announced they will be releasing oil from their strategic reserves as well.

On Friday, the Labor Relations Board announced that Staten Island NY AMZN workers voted in favor of a union (with not enough disputed votes to flip the vote).  The re-vote in Bessemer AL is still undecided with the company ahead in the voting, but over 400 votes now going to a ballot dispute process. Meanwhile, in Congress, the House voted to decriminalize marijuana nationally, expunge marijuana conviction records, and levy a tax on marijuana sales (starting at 5% and eventually moving to 8%).  This sends the bill to the Senate where passage will be more difficult to get passed.  Elsewhere, on Saturday TSLA announced that they had delivered a record 310k cars during Q1.

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TWTR shares spiked as much as 30% in premarket trading after a 13G public filing revealed that Elon Musk has acquired a 9.2% stake in the company.  That purchase makes him the largest outside shareholder in the company.  However, this purchase was classified as a “passive stake” in the company.  Nonetheless, shares are spiking at the prospect of him buying more or taking an active role.  His purchase comes less than two weeks after Musk criticized the company over its acceptable speech policies and then conducted a TWTR poll on whether the company adheres to free speech principles and what should be done about it.

On the Russian invasion story, over the weekend it was announced by both sides that the negotiations have progressed to a point where a meeting between Putin and Ukrainian President Zelensky makes sense.  This meeting will take place in Turkey in the unspecified not-too-distant future.  However, then Sunday, Russia announced that negotiations have not arrived at that point and their original positions still stand.  So, this is either negotiating tactics or disarray between the Russian negotiation team and the Kremlin.  Meanwhile, several mass graves and evidence of Russian war crimes emerged in liberated regions over the weekend.  On Sunday the EU warned they are likely to levy additional sanctions over those crimes.  However, the sanction threat again stops short of blocking ALL Russian banks from the SWIFT payments system or stopping the flow of Russian Gas and Oil to Europe

Overnight, the Asian markets were mostly green.  India (+2.17%), Hong Kong (+2.10%), and Shanghai (+0.91%) led the region higher while Taiwan (-0.38%) and New Zealand (-0.30%) were the most appreciable losers.  In Europe, stocks are leaning to the upside at mid-day.  The FTSE (+0.21%), DAX (+0.16%), and CAC (+0.17%) are lagging, but as always far exceed the rest of the continent in volume.  Switzerland (+1.09%) is an outlier to the upside as is Denmark (-1.30%) to the downside in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.05% open, the SPY is implying a +0.19% open, and the QQQ implies a +0.40% open at this hour.  10-year bond yields are modestly higher to 2.39% and Oil (WTI) is up less than 50 cents in early trading.

Major economic news scheduled for release on Monday is limited to Feb. Factory Orders (10 am).  There are no major earnings reports scheduled for the day. 

The economic news later this week includes Imports/Exports, Feb. Trade Balance, Mar. Services PMI, ISM Non-Mfg. PMI, and a couple of Fed speakers all on Tuesday.  Wednesday is limited to Crude Oil Inventories and Feb. FOMC Minutes.  Thursday brings Weekly Jobless Claims and 4 different speeches from 3 Fed members.  Friday will also be limited to the WASDE global agriculture report.

April is statistically the best month for stocks and it starts off with a week of little news and very light earnings activity. MS made a point this weekend to tell their customers they believe the “bear market rally” is now over. JPM’s Jamie Dimon seems to agree, saying that the confluence of inflation and the war in Ukraine creates a dramatic increase in market risk. Still, stocks are up 10% from the lows and have been very strong since mid-March. Volatility has plateaued off recently, but is still far off the lows and remains a concern. Many eyes will be on the interest rate inversions (and the implied future recession) as well as how the Fed is going to get from here to where they end up on rates. With all that said, it is probably time to be back in the market, perhaps on both sides, and cautiously riding the trend. Just be prepared for volatility-caused short-term pain and watch that herd mentality.

The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: TWTR, EYE, CELH, PSFE, SPT, AIZ, PLTK, AUY, AAPL, MSFT, LLY, DBX, IWM, ZBH, BMY, JNJ, FCX. 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.

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

Stocks opened very modestly lower on Thursday and proceeded to wobble around until 11 am when a slow, steady selloff started and lasted until 3 pm.  However, that last hour of the day saw a brutal selloff in all 3 major indices only managing to bounce up slightly from the lows of the day.  This left us with big, ugly, black candles that gave up the T-line in the SPY and DIA, with the QQQ closing not far above that 8ema.  On the day, SPY lost 1.44%, DIA lost 1.50%, and QQQ lost 1.28%.  The VXX rose just under 3% to 25.70 and T2122 fell all the way back to the mid-range at 48.02.  10-year bond yields recovered from early lows to close at 2.347%.  There was also a 2-year vs. 10-year rate inversion on Thursday, an event that has preceded every recession since 1955.  However, the lead time between this inversion and those recessions varies greatly and can be as long as 2 years.  Oil (WTI) closed down 6.16% to $101.08/barrel after President Biden confirmed he will be releasing 1 million barrels of oil per day for 180 days from the strategic oil reserves.

The day’s action brought the first quarter to a close.  During the quarter, despite a very strong rally over the last 3 weeks, it was not a good 3 months for any of the major indices.  SPY lost over 5% for the 3-month period even after rallying well over 8% during the last 13 sessions.  DIA lost 4.75% since the first of the year even after rallying 6.4% since March 8^th.  However, the worst-hit index ETF was the QQQ, which lost almost 10% over the quarter (despite a rally of almost 14% since March 14).  All-in-all, this was the worst quarter since 2020.

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On the Russian invasion story, Russian troops have left Chernobyl and the Ukrainians who are back in control of the plant (according to the IAEA) claim a number of the Russian troops received significant doses of radiation during their occupation.  The UK has agreed to join the US in releasing oil from their strategic reserves as part of the effort to offset the effects and push for more restrictions on Russian oil supplies.  India is hosting a visit from Russian Foreign Minister Lavrov.  This comes just after UK Foreign Sec. Truss and US Deputy National Security Advisor Singh were in Delhi pressuring India to stop buying Russian oil (which Russia is selling to India at a discount to keep the sales going).

In business news, AMZN faced unionization votes at both their Bessemer AL (re-vote after AMZN unduly influenced the first vote) and Staten Island NY warehouses on Thursday.  As of Thursday evening, no definitive results were announced.  However, in AL the union was 118 votes behind with 416 disputed ballots left uncounted.  This is far different than last year’s vote where the company won the vote by a 2-to-1 margin.  In NY, it looks like the facility will unionize with about 57% of the counted vote favoring unionization as some counting continues today.

Overnight, the Asian markets were mixed with more exchanges green than red.  New Zealand (+1.18%), Malaysia (+0.95%), and Shanghai (+0.94%) led the gainers while   South Korea (-0.65%), Japan (-0.56%), and Taiwan (-0.38%) paced the losses.  In Europe, stocks are green across the board (including Russia +1.94%) with the lone exception of Portugal (-0.33%) at mid-day.  The FTSE (+0.26%), DAX (+0.41%), and CAC (+0.53%) lead the way as usual.  As of 7:30 am, US Futures are pointing toward a green open to the day (in front of a lot of economic data).  The DIA implies a +0.49% open, the SPY is implying a +0.45% open, and QQQ implies a +0.44% open at this hour.  10-year bond yields have spiked back up to 2.406% and Oil (WTI) is flat in early trading.

Major economic news scheduled for release on Friday includes Avg. Hourly Earnings, Nonfarm Payrolls, Participation Rate, and Unemployment Rate (all at 8:30 am), and ISM Mfg. PMI (at 9:45 am). There are no major earnings reports scheduled for the day.

The February Payrolls data, which is expected to be good, will likely have some impact on premarkets. However, at this point, it looks like we are headed for a green start to the day. Let’s hope it isn’t an “April Fools” joke that leads to intraday reversals. With that said, we should continue to expect volatility (especially in energy markets) to continue to be the norm. The bulls still have the momentum and the couple of days of pullback we’ve seen may have been just what the doctor ordered for a continued rally. With that said, don’t get complacent. It is Friday, with a weekend news cycle ahead and a war at the edge of Europe still raging.

The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas Today 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.

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

Markets gapped modestly lower on Wednesday.  Then after about an hour of roller-coaster action, all 3 major indices went into a selloff that lasted until a 3:30 pm rally that lifted stocks up off the lows.  This left us with indecisive candles in all 3, a Doji in the DIA, a black Spinning Top in the SPY and QQQ.  On the day, SPY lost 0.60%, DIA lost 0.22%, and QQQ lost 1.10%.  The VXX rose marginally to 25.00 and T2122 fell but remains in the overbought territory at 85.98.  10-year bond yields fell to 2.352% and Oil (WTI) rose 2.9% to $107.27/barrel.

Oil prices are plunging on reports that President Biden will make a huge release from the national oil reserves.  The release will be up to 180 million barrels, done at the rate of 1 million barrels per day for the next several months.  Brent fell 5.8% immediately on the news and WTI is down 5.7% in early trading for the same reason.  While this would have very material impacts on oil inflation immediately, it would not solve the structural problem (the US consumes more than our oil companies produce, with companies not willing or unable to expand production much beyond current levels in the short-term).

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On the Russian invasion story, despite Tuesday’s optimism due to Russian claims they would “radically reduce” operations in the area, the Russian shelling of areas around Kyiv and Chernihiv intensified Wednesday.  German Economic Minister Habeck said Wed. that Russia threatened to cut off the country’s gas supply unless they pay in Rubles.  He also said Germany has refused that demand (per existing contracts) and is taking precautionary measures in case Russia escalates the issue. (55% of Germany’s gas comes from Russia and Germany’s natural gas storage is currently 25% full, meaning they have a 20-day supply at the moment.) 

As we enter the last day of the quarter, markets have recently been experiencing a very strong run-up, led by the high-growth tech sector.  This is particularly odd since we are entering a tightening cycle that is expected to accelerate and inflation is a major drag on consumers who drive that sector.  This trend was challenged a bit on Wednesday by analysts’ fears about the strength of the personal computer market.  (As I have reported in the past, despite overall inflation, the prices of graphics cards and CPUs have been falling for months as supply has caught up to demand.  This means NVDA, AMD, and INTC (as well as their channel partners) can no longer charge 100% premium over MSRP for their products as they have for the last 2 years.  For this reason, MS and Barclays analysts have begun downgrading tech names.

Overnight, the Asian markets were mostly leaning to the downside.  Shenzhen (-1.19%) Hong Kong (-1.06%) and Singapore (-0.99%) led the way lower.  Meanwhile, South Korea (+0.40%) and Malaysia (+0.26%) were the only appreciable gainers on the day.  (It is worth noting that financial companies in Shanghai are paying their traders $300/day to live at their desks, thus keeping Shanghai markets open during the city’s 9-day lockdown.)  In Europe, markets are mixed but lean to the red side at mid-day with the notable exception of Russia, whose rigged game has their exchange up 6.11%.  The FTSE (-0.28%), DAX (-0.35%), and CAC (-0.62%) are typical of the rest of the continent.  As of 7:30 am, US Futures are pointing toward a mixed and flat start to the day.  The DIA implies a -0.10% open, the SPY is implying a -0.03% open, and the QQQ implies a +0.18% open at this hour.  10-year bond yields and Oil continue their extreme volatility, with yields down sharply to 2.318% and WTI down 5.73% to $101.63 in early trading.

Major economic news scheduled for release on Thursday includes Feb. PCE Price Index, Weekly Jobless Claims, and Feb. Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and a Fed speaker (Williams at 9 am).  The major earnings reports scheduled before the open are limited to WBA.  Then after the close, there are no major reports scheduled.

The news on a potential oil release in the US as well as some economic news in premarket will be the backdrop for the last day of the quarter. Beware more window dressing, although much of it may have already been done in the recent rally. Ukraine is still under siege and bombardment and their President Zelensky reports that Russia is now targeting agriculture as a way to increase pressure on both Ukraine (it’s one of their major industries) and the West who is backing them. (Russia and Ukraine combined account for about 40% of global wheat production.) With that said, we should continue to expect huge volatility (especially in energy markets) to continue to be the norm. The bulls still clearly have the momentum, but we’ve been in dire need of rest and are waiting on the February Payrolls Report on Friday. So, more rest may be in order, but don’t get complacent.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: BMQ, SPCE, FOXA, NIO, BBWI, DKNG, RH, DISCA, GRWG, QCOM, YETI. 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.

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

Stocks gapped about 1% higher at the open Tuesday off optimism from Russia saying they are essentially ending attacks on Kyiv and Chernihiv (Northern Ukraine cities).  However, prices then went on a roller-coaster ride that hit the lows at about 10:15 am and again at 12:30 pm before going on a rally that lasted all afternoon and closing not far from the highs.  This left us with very indecisive gap-up Doji (SPY and DIA) or Spinning Top type (QQQ) candles in the 3 major indices.  VXX fell to 24.85 and T2122 spiked near the maximum, deep in overbought territory at 99.35.  10-year bond yields were very high early before falling all the way back to see a modest decline to 2.389% for the day.  Oil (WTI) also fell back from earlier highs to close at $105.09/barrel.

During the day Tuesday, the JOLTS report showed that there were 11.3 million job openings, which is 5 million more than the total unemployed workforce (a record discrepancy).  The volatility in mem stocks continued as GME closed down 5.12% (while trading in a 23% range over the course of the day) and MAC closed up 0.41% after trading in a 30% range on the day.  Meanwhile, AAPL (+1.91%) put in its 11^th straight day of gains, the stock’s longest winning streak since 2003.  If you were in AAPL, congratulations, if not, be careful chasing.

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After the close, CALM, CNXC, MU, and MLKN all reported beats on both lines.  Meanwhile, LULU, PVH, and RH all beat on earnings while missing on revenue.   We should note that LUL also initiated a $1 billion buyback program and RH announced a 3-for-1 split that will take place later this Spring.  However, CHWY missed on both the top and bottom lines. So far this morning, BNTX and MSM reported beating on both revenue and earnings.  Meanwhile, AER beat on revenue while missing on earnings.  FIVE was just the opposite, missing on revenue while beating on earnings.

Mortgage demand plummeted last week (compared to a year with those two instances of a quarter of a percent spike in 30-year rates within a few days of each other.  The average 30-year, fixed-rate mortgage was at 4.80% (actually down from the peak) at week’s end. Refinance applications fell 15% for the week and 60% compared to the same week in 2021.  New home purchase applications rose 1% for the week but were also down 10% from a year prior.

Overnight, the Asian markets were mostly green.  Shenzhen (+3.10%) was a clear outlier to the upside, with Shanghai (+1.96%) and Hong Kong (+1.39%) leading all but 2 Asian exchanges higher.  Japan (-0.80%) and Malaysia (-0.01%) were the only red in the region.  In Europe, stocks are mixed, but leaning to the downside at mid-day.  Russia (+4.34%) was a clear outlier with the market manipulating policies in place, but Norway (+2.35%) was also heavily green with a handful of other exchanges following.  However, the FTSE (+0.01%), DAX (-1.44%), and CAC (-0.91%) are most indicative of the continent in early afternoon trading after Russia said it sees no breakthroughs in peace talks.  As of 7:30 am, US Futures are pointing toward a modestly down start to the session.  The DIA implies a -0.23% open, the SPY is implying a -0.26% open, and the QQQ implies a -0.37% open at this hour.  10-year bond yields are back up to 2.415% and Oil (WTI) is up 2.59% in early trading.

Major economic news scheduled for release on Wednesday is limited to ADP Nonfarm Employment (8:15 am), Q4 GDP (8:30 am), and Crude Oil Inventories (10:30 am) as well as a Fed speaker (George at 1 pm).  The major earnings reports scheduled before the open are limited to AER, BNTX, CNM, FIVE, MSM, PAYX, and UNF.  Then after the close, there are no major reports scheduled.

With Ukraine making some gains in the South (near besieged Mariupol) and no major economic news this morning, the mood seems to be somewhere between lifting and waiting in the premarket. However, we should expect massive volatility (especially in energy markets) to continue to be the norm. So, don’t get complacent. The bulls still clearly have the momentum, but there is resistance close overhead from major averages in the QQQ and DIA as well as prior price levels. Be careful of both quarter-end window dressing rotation toward the winners funds look to assure owners they are in the ones that did best…even if it was a last-minute entry. And expect that intraday volatility as we head into the last 3 days of a quarter of war and inflation-ridden markets.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: BNTX, RIG, OXY, SQ, OCGN, XLE, AFRM, IBB, MP, CRON, DKNG, MQ, PSFE. 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.

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

Markets opened essentially flat on Monday and then went on a morning roller-coaster ride.  However, at about 12:30 pm, the bulls took over and put in a sustained rally for the rest of the day, closing on the highs.  This left us with white-bodied candles with lower wicks in all 3 major indices.  The QQQ put in a Doji Continuation signal while it is quite possible to see the DIA as a Hanging Man candle after the rally of the last 2 weeks.  On the day, SPY gained 0.70%, DIA gained 0.27%, and QQQ gained 1.56%.  The VXX rose 2% to 25.73 and T2122 fell to 82.69.  10-year bond yields fell a bit to 2.455% and Oil (WTI) plunged more than 9% to $103.49.

Before the opening Monday, TSLA made an SEC filing saying that it wants to split the stock and will ask for approval at its next annual shareholder’s meeting.  This would be done with a “stock dividend,” although the split ratio was not revealed.  With a stock dividend, for example, if the split was 4-for-1, then every stockholder of record would get 3 additional shares for every share they own at the time of the split.  The annual meeting has not yet been scheduled, but the 2021 meeting was in early October.  TSLA stock has more than doubled since the last split in August 2020.

SNAP Case Study | Actual Trade

President Biden released his 2023 Budget Monday.  The plan calls for a 20% minimum income tax rate for those who earn over $100 million, increasing the corporate tax rate from 21% to 28%, and repealing several tax breaks for oil and gas producers.  The proposal has zero chance of passing as-is but will be the starting point for the haggling in the House and Senate.

The “Chinese Beige Book” a private market survey (not official Chinese government numbers) of 4300 Chinese Manufacturers, says that Chinese Manufacturing has been hit harder by Covid this quarter than last year.  This will have read-through impacts on supply chain issues across the globe. The problem was attributed to the rest of the world coming out of fiscal and monetary stimulus mode as well as the impacts of the disease on both Chinese production and demand.  Revenue, profit, and demand growth are all getting softer, which highlights the reason China is still easing while the rest of the world has begun to tighten.  One anomaly is that the survey found that the much-derided Chinese Property sector is actually doing better than the headline would have us believe.  This is especially true in Beijing and Shanghai (the current city lockdown notwithstanding) according to a report from CNBC.

Overnight, the Asian markets were mostly green.  Hong Kong (+1.12%) and Japan (+1.10%) led the gainers while Malaysia (-0.91%) and Shenzhen (-0.46%) paced the losses.  However, in Europe, with the exception of Russia (-0.91%) we see strong green numbers across the board at mid-day.  The FTSE (+1.33%), DAX (+1.91%), and CAC (+2.30%) are leading the region higher in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.38% open, the SPY is implying a +0.39% open, and the QQQ implies a +0.35% open at this hour.  10-year bond yields are up strongly again to 2.503% and Oil (WTI) is rebounding 1.46% from Monday’s terrible drubbing in early trade.

Major economic news scheduled for release on Tuesday is limited to Feb. JOLTS and Conf. Board Consumer Confidence (both at 10 am) and a couple of Fed speakers (Williams at 9 am and Harker at 10:45 am).  The major earnings reports scheduled before the open are limited to ASO, ESLT, and MKC.  Then after the close, CALM, CHWY, CNXC, LULU, MU, MLKN, PVH, and RH report.

With Ukraine making some gains in the South (near besieged Mariupol) and no major economic news this morning, the mood seems to be somewhere between lifting and waiting in the premarket. However, we should expect massive volatility (especially in energy markets) to continue to be the norm. So, don’t get complacent. The bulls still clearly have the momentum, but there is resistance close overhead from major averages in the QQQ and DIA as well as prior price levels. Be careful of both quarter-end window dressing rotation toward the winners funds look to assure owners they are in the ones that did best…even if it was a last-minute entry. And expect that intraday volatility as we head into the last 3 days of a quarter of war and inflation-ridden markets.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: TDOC, FAST, NET, PLTR, MCHP, ORCL, DLTR, WMT, UPS, MSFT, COST, BSX, ARKK, AMD. 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.

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

Stocks made a modest gap higher Friday and then went on an all-day roller-coaster ride that ended on an upswing.  This left all 3 major indices as indecisive candles, with only the SPY having an appreciable candle body.  On the day, SPY gained 0.49%, DIA gained 0.43%, and QQQ lost 0.08%.  The VXX was flat at 25.20 and T2122 remained in the overbought territory at 86.77.  The 10-year bond yield spiked higher again to 2.477% and Oil (WTI) went up slightly to $112.58.

As mentioned above, interest rates spiked Friday.  As a result, 30-year, fixed-rate mortgage rates soared to 4.95% on average.  This was the second spike of a quarter percent during the week and, as a result, the average mortgage payment is now 20% (1.64%) higher than one year ago.  Coming into the Spring housing market, when 40% of all home sales occur, this doesn’t bode well for builders and related businesses. In other interest rate news, the 5-year and 30-year bond yields have inverted early today. This was the first inversion since 2006 and could be a harbinger of a recession to come. However, this is not the primary inversion that yield-watchers focus on. The main rate being watched “2-year vs. 10-year,” which remains positive for now.

SNAP Case Study | Actual Trade

On the Russian invasion story, Bloomberg reported Friday afternoon that Chinese companies and diplomats have been pressing the US State Dept. for details on how to comply with sanctions against Russia.  While the Chinese may be looking for loopholes, this is encouraging since there are no secondary sanctions for those who violate the rules.  So, a desire to work within the sanction rules is seen as a bad sign for Russia and a great sign for the West. Elsewhere, the war continues with a tightening of the siege of Mariupol and Russian advances around Kyiv seem to be attempting to cut the capital off as well.

In other China-related news, the city of Shanghai (25 million people, the country’s financial hub, and a major seaport) announced that it will be locked down in two stages, half at a time.  This lockdown is planned for a total of nine days, with the Eastside closed until April 1 and the Westside closed from April 1-5. The city had already been reeling from local lockdowns for a couple of weeks. So, while the total lockdown of half the city at a time will have an impact on supply chains and global trade, the effect will not be as crippling as a lockdown out of the blue.

In a follow-up to a story from last month, it seems a 16-year-old in London has been arrested and released and named as the head of the hacking group Lapsus$.  Apparently, he was only caught when a rival hacking group gave his identity to authorities due to a group rivalry.  This kid, along with 6 friends aged 16 to 21, are the ones that hacked NVDA last month and just last week hacked both MSFT and OKTA.  (The source code to Bing, Bing Maps, and Cortana have been posted online, just like the NVDA source code was a month ago. In addition, the login credentials of 95% of OKTA users have been exposed.  OKTA is an identity/authentication platform used by thousands of businesses for both online and physical access, including NASDAQ.)

Overnight, the Asian markets were mixed but leaned to the downside as most of the gainers were very modest.  Hong Kong (+1.31%) was an outlier on the green side.  However, New Zealand (-1.21%), Shenzhen (-1.02%), Taiwan (-0.89%), and Japan (-0.73%) paced the losses in the region.  In Europe, markets are solidly green with the lone exception of Russia (-2.15%) at mid-day.  (Remember that Russia is now allowing all stocks to trade, but non-Russian investors are still prohibited to sell stock and the Russian Central Bank is putting a floor under their market to prevent collapse.)  The FTSE (+0.72%), DAX (+2.10%), and CAC (+1.91%) are typical of the range of gains in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly green open.  The DIA implies a +0.14% open, the SPY is implying a +0.17% open, and the QQQ implies a +0.17% open at this hour.  10-year bond yields are down slightly and Oil (WTI) is off almost 5% to $108.25 in early trade.

Major economic news scheduled for release on Monday is limited to Feb. Trade Goods Balance and Feb. Retail Inventories (both at 8:30 am).  The major earnings reports scheduled before the open are limited to JEF, SAIC, and XPEV.  There are no major earnings scheduled for after the close.

Major economic news later this week include Feb. JOLTS, Conf. Board Consumer Confidence, and a Fed speaker on Tuesday.  Wed. brings ADP Nonfarm Employment, Q4 GDP, and Crude Oil Inventories.  Then on Thursday we get Feb. PCE Price Index, Weekly Jobless Claims, Feb. Personal Spending, Chicago PMI, and a Fed speaker.  On Friday we get Avg. Hourly Earnings, Nonfarm Payrolls, Participation Rate, Unemployment Rate, and ISM Mfg. PMI.

With a heavy dose of economic news in the week ahead, premarket prices are tepidly higher. The massive volatility in energy markets continues to be the standard. The bulls still clearly have the momentum, but there is resistance close overhead from major averages and prior price levels. Be careful of both quarter-end window dressing and intraday volatility as we head into the last 4 days of a quarter of war and inflation-ridden markets.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: RIOT, BABA, NET, NVDA, PLTR, FSR, LUMN, NKE, CVS, AMD, DGX. 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.

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

Markets gapped up on Thursday and then proceeded to put in a slow, all-day rally that closed near the highs.  This left us with large white candles in all 3 major indices and a lower-high for our new trend.  On the day, SPY gained 1.51%, DIA gained 1.05%, and QQQ gained 2.22% (led by a banner day by NVDA).  The VXX fell 1% to 25.20 and T2122 rose back deeper into the overbought territory at 87.15.  10-year bond yields pulled back from early-day highs to close up at 2.364% and Oil (WTI) fell 3% to $111.37/barrel.

On the Russian invasion story, NATO and the European Union sanctioned 400 more individuals (300 of which are Russian Parliamentarians) as well as Russian defense companies.  The US Treasury Dept. and UK PM Johnson both threatened to sanction Russian-owned gold.  President Biden publicly said that if Russia used chemical or biological weapons, we would respond and the response would depend on the nature of the use (which implies a proportionate military response).  Later, at a meeting of the G7, Biden went on to say he believes that Russia should be removed from the G20.  Overnight, as expected, the US and EU reached a natural gas supply deal that will cut or eliminate the need for Russian natural gas.

SNAP Case Study | Actual Trade

Related to energy, US average gasoline prices have also fallen about 10 cents in the last week according to AAA.  However, in some places like CA, gas has reached $7 at some stations.  Meanwhile, oil prices declined globally Thursday after the EU decided to not sanction Russian oil…at this point. On the other hand, US natural gas producers are meeting with German gas buyers today in support of the LNG deal mentioned above. US producers will supply the EU with 15 billion cubic meters on LNG this year and up to 50 billion cubic meters each year until at least 2030.  It is unclear if this is in addition to the 6.5 billion cubic feet of LNG per day the US already supplies the EU.  Meanwhile, the Russian Duma is discussing taking Bitcoin in payment for their oil from “friendly” countries like China and Turkey in order the avoid sanctions.

In other European developments, the EU and European Parliament have reached a deal on their “Digital Markets Act.”  The law is aimed at curbing global (US for all intents and purposes) tech giants from abusing their position to hurt smaller rivals.  If any “gatekeeper” company is found guilty of doing so, they can be fined 10% of their global revenue (repeat offenders can be fined 20% of global revenue).  The law will immediately impact FB, AAPL, AMZN, and GOOG who operate “walled gardens” that limit customer choices and make it hard or impossible for outside companies to reach those “captured customers” without paying dearly for the privilege.  It also creates a massive set of rules the companies must comply with in order to do business in the largest combined consumer market.

Overnight, the Asian markets were mixed to end the week.  Hong Kong (-2.47%), Shenzhen (-1.89%), and Shanghai (-1.17%) were the only real movers as the rest of the region was split on modest moves.  In Europe, stocks are leaning to the upside at mid-day, with the notable exceptions of Russia (-3.66%) and Greece (-1.38%).  The FTSE (+0.25%), DAX (+0.80%), and CAC (+0.78%) are leading the region higher in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.27% open, the SPY is implying a +0.40% open, and the QQQ implies a +0.49% open at this hour.  10-year bond yields are flat at 2.363% and Oil (WTI) is down almost 2% in early trading.

Major economic news scheduled for release on Friday includes Michigan Consumer Sentiment and Feb. Pending Home Sales (10 am) and two more Fed speakers (Williams at 10 am and Waller at noon).  The major earnings reports scheduled before the open are limited to DOOO.  There are no earnings scheduled for after the close.

The natural gas deal likely means great days for the Us natural gas suppliers and shippers. However, it may be too late to chase that trade if you didn’t take the hint when I mentioned the potential earlier this week. Beyond that, the European Digital Markets Act impacts may hold sway today. However, US traders may well ignore that story, counting on tech giant litigation to mitigate future damage. With that said, the Russian invasion is likely to hold the mindshare of traders as we head into the weekend news cycle. The bias is clearly bullish with the strong rally and now a higher-low, especially if we can get some follow-through. However, be careful of volatility and quarter-end window dressing starting to happen.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: CGNT, JBT, BNTX, ROKU, ZG, PYPL, NFLX, HUBS, PINS, CRM, QS, PLTR, HOOD. 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.

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

Markets gapped down 0.7% – 0.9% and then followed through with a long, slow all-day selloff, closing near the lows.  This left us with black candles in all 3 major averages and the first appreciable pullback in well over a week.  Even so, none of the 3 major indices even tested their T-lines (8ema) and the QQQ was just an inside day (Bearish Harami) candle.  On the day, SPY lost 1.29%, DIA lost 1.36%, and QQQ lost 1.44%.  The VXX was flat at 25.49 and T2122 dropped, but remains just inside the overbought territory at 81.95. 10-year bond yields fell to 2.293% and Oil (WTI) spiked another 4.5% to $114.23 as Russia said storm damage could put a major pipeline out of service for a month or more.

On the Russian invasion story, the US formally charges Russia with war crimes on Wednesday, and NATO announced it is expanding the number of troops in Eastern Europe by adding 4 battle groups (only about 500 additional troops) in that area.  In response, Russia is expelling 12 American diplomats and is demanding that “unfriendly countries” pay for Russian Natural Gas in rubles, with Gazprom (Russian LNG firm) ordered to make changes to contracts within a week.  The news caused the Ruble to rally.  (However, existing contracts could not be changed.  So, the impact in the short term is questionable.)  The Russian stock market partially reopened today as well.

SNAP Case Study | Actual Trade

In another Russian Sanctions-related story, it appears the US and EU are close to a deal on cutting European use of Russian natural gas.  Sources told Bloomberg it would be announced Friday.  The agreement is expected to result in a large surge of US-produced LNG being sent to Europe starting as soon as a few months from now.  The largest US natural gas producers are LNG, CQP, XOM, and CVX.

After the close, FUL and TCOM reported beats on both revenue and earnings.  Meanwhile, OLLI missed on revenue while beating on earnings.  Unfortunately, KBH missed on both lines.  So far this morning, MOMO beat on both lines while TITN beat on earnings and missed on revenue.  However, DRI reported missing on both revenue and earnings.

Overnight, the Asian markets were mixed but leaned to the downside.  Hong Kong (-0.94%), Shenzhen (-0.83%), and Shanghai (-0.63%) paced the losses while Singapore (+1.05%) led gainers.  In Europe, markets are also mixed as Russia resumed trading with short-selling banned and foreign investors prohibited from selling at all (at least until April).  It is also suspected that the Russian government is a buyer of last resort placing a floor under the market.  As a result, the Russian MOEX is up 4.37%.  However, the FTSE (+0.14%), DAX (-0.31%), and CAC (-0.04%) are more typical of the region at mid-day.  As of 7:30 am, US Futures are pointing toward a green start to the day.  The DIA implies a +0.48% open, the SPY is implying a +0.64% open, and the QQQ implies a +0.74% open at this hour.  10-year bond yields are back up to 2.379% and Oil (WTI) is flat in early trading.

The major economic news scheduled for release on Thursday include Feb. Durable Goods Orders, Q4 Current Account, and Weekly Initial Jobless Claims at 8:30 am, Mfg. PMI and Services PMI (both at 9:45 am) and more Fed speakers (Waller at 9:10 am and Bostic at 11 am).  The major earnings reports scheduled before the open include DRI, MOMO, HEPS, SNX, and TITN.  Then after the market close, NIO reports.

The major indices look to be pointing higher early, but for the first time in days we have economic news this morning. In addition, news out of the meetings President Biden is attending in Europe has the potential to roil markets. So, be careful not to ignore volatility. With that said, a minor, one-day pullback is the best bulls could have hoped for in the recent rally and if yesterday was our “higher low” the bulls may be ready to run up to at least the next resistance level. The bias is clearly bullish in the short term.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: QS, JBT, BNTX, PLTR, NFLX, FDX, CRM, HOOD, RBLX, PINS. 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.

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

Markets gapped modestly higher and followed through the first hour of the day in all 3 major indices.  However, from that point, markets ground sideways in a tight range the entire rest of the day.  This left us with gap-up white candles with small upper wicks in all 3 cases.  It is worth noting that the volume was very light across the board.  On the day, SPY gained 1.16%, DIA gained 0.77%, and QQQ gained 1.95% as stocks continue to be extended to the upside.  The VXX fell over 2% to 25.44 and T2122 rose slightly to a very-extended 96.08.  10-year bond yields continue to spike, closing at 2.388% and Oil (WTI) fell a fraction to $111.30.

Even after markets have digested Chair Powell’s more hawkish position from Monday, the stock market seems to have accepted a more aggressive Fed. However, bond markets continue to spike, and futures markets are now beginning to expect a half-percent hike in both May and June (now reading a 66% chance, up from 50-50 on Monday afternoon). This is in line with GS raising its own forecast Tuesday to an expectation of a 50-basis-point hike at both meetings. Buckle up as Chair Powell speaks again this morning.

SNAP Case Study | Actual Trade

On the Russian story, the FBI provided more background on President Biden’s warning to US companies about cyberattacks.  The Cybersecurity and Infrastructure Security Director told industry executives that 5 major US energy companies and at least 18 other major companies in the Banking and Defense industries have had their networks probed by hackers from Russian IP addresses within the last few days.  These probes are a typical prelude to a coordinated hacking attack.  (She refused to name the companies involved.) Meanwhile, President Biden will be traveling to an emergency NATO summit, a meeting of the Group of 7, and a session of the European Council on Thursday.  He is expected to announce another round of sanctions in coordination with members of the NATO and EU, to increase pressure and crackdown on sanction evasion.  How “the West” will respond if China provides more assistance to Russia is also set to be on the agenda.  Elsewhere, French oil company TTE has also announced that it will stop buying Russian oil by the end of 2022 at the latest.

After the close, ADBE, AIR, and WOR reported beats on bother revenue and earnings.  In other after-hours news, it was announced that the Chairman of GME bought another 100,000 shares of the stock, which brings his ownership to just below 12% of the stock.  This caused GME to soar 20% in post-market trading on the heels of a 31% rally during the day.  So, meme stock wild rides are back baby! This morning, TCEHY beat on revenue while missing badly on earnings.  This same despite it being the slowest revenue growth in company history amidst Chinese tech industry regulation tightening.  Other notable premarket reports include GIS beating on earnings while missing on revenue, WGO beating on the top line while missing on the bottom line, and JKS missing on both lines.

Overnight, the Asian markets were mostly green.  Japan (+3.00%) was an outlier to the upside with Hong Kong (+1.21%), Taiwan (+0.98%), and South Korea (+0.92%) leading the gains.  Only New Zealand (-1.18%) and India (-0.50%) were down.  In Europe, stocks lean to the downside on modest moves at mid-day.  The FTSE (+0.28%) is an outlier with the DAX (-0.32%) and CAC (-0.32%) typical of the rest of the continent.  (Besides the FTSE, only Switzerland and Norway are slightly above flat in early afternoon trading.)  As of 7:30 am, US Futures are pointing toward a modestly lower open.  The DIA implies a -0.27% open, the SPY is implying a -0.33% open, and the QQQ implies a -0.51% open at this hour.  10-year bond yields are slightly lower and Oil (WTI) is up another 2.6% in early trading.

The major economic news scheduled for release on Wednesday includes Feb. New Home Sales (10 am), Crude Oil Inventories (10:30 am), and a couple of more Fed speakers (Chair Powell at 8 am and Daly at 11:45 am).  The major earnings reports scheduled before the open include CTAS, CL, GIS, HTHT, JKS, TCEHY, and WGO.  Then after the market close, FUL, KBH, and TCOM report.

The major indices look to be opening as inside candles this morning. However, Fed Chair Powell will speak again shortly (8 am) and it is unclear if he will return to his moderate tone of the past or stay with the more hawkish tone from Monday. It would not be a surprise if traders really parse his every word and inflection at this point. So, beware of volatility. Also remember that even if a bottom has already been put in, rest and consolidation are clearly in order. However, we can’t predict the market. So, just follow the chart and be careful of chasing at this point of the recent run, but we do need to recognize that the longer-term downtrend has been broken. At this point, we need to see a higher low hold and bulls to step in to establish the new uptrend.

Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making big money in the market is to not lose big money in the market. Don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. Stick to those trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trading is a marathon, not a sprint. So, focus on the process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: GP, ZG, ZION, JBT, CGNT, HES, QS, ASPN, RBLX, FUBO. 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.

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.

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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

Markets were relatively (by recent standards) stable on Monday.  After opening flat, the major indices traded in a less volatile manner all day long.  All 3 major indices printed a Doji-type indecisive candle with only the DIA having a Black Spinning Top candle.  On the day, SPY lost 0.05%, DIA lost 0.52%, and QQQ lost 0.40% (on a modest gap-down).  The VXX gained 4% t o 26.01 and T2122 remains deep in the overbought territory at 95.65.  10-year bond yields spiked hugely higher to 2.299% following FOMC Chair Powell’s hawkish remarks.  It was the worst day in decades in the bond market.  Oil (WTI) spiked 7.4% to $112.36/barrel on the day as the EU Parliament was debating the banning of Russian oil imports.

During the day, Fed Chair Powell made a speech explaining his personal position (as opposed to his press conference last Wednesday when he was speaking for the FOMC consensus).  During the speech, Powell said that “inflation was much too high” which jeopardizes an otherwise strong recovery.  He went on to vow the Fed will take tough action in the months ahead, including half percent hikes as soon as May if that becomes more appropriate.  (Futures are now pricing in a 50% chance of a 50-basis-point hike at the next meeting in May.)

SNAP Case Study | Actual Trade

On the invasion story, Russia continues to bombard the city of Mariupol after the Ukrainians refused to surrender the city.  That port city is the last holdout preventing the Russians from having unquestioned control of a land route across the southern border from Russia to Crimea.  The EU Parliament continues to debate banning Russian oil and Germany has reached out to UAE as a source of Natural Gas shipments. President Biden also cited “evolving intelligence” that Russia will be launching cyberattacks on the US.  He urged private sector companies to work with Homeland Security to harden their company cyber security immediately.  Elsewhere, S&P has pulled the credit ratings on all Russian firms, making them uninvestable by most funds.

On the business front, after the close, NKE reported beats on both lines and cited strong demand throughout North America.  This was despite only recovering sales in China, where boycotts of western brands had caused pain and are now rebounding.  The SEC also approved new rules by a 3-1 vote requiring corporations with more than $700 mil in shares to disclose how operations affect carbon emissions (including the offsets they purchase to remain compliant) and how climate change may impact their business starting in 2023.  This follows the same rules in the EU, Britain, and several other countries.  (Public comment of 60-days now starts before the final vote and it is likely to be challenged in court by business interests and associated politicians such as the WV state government.)  Overnight BABA stock spiked as the company announced it is increasing its share buyback plan to $25 billion (from $15 billion previously) over the next 2-year period (by March 2024).

Overnight, the Asian markets were mostly green.  Hong Kong (+3.15%) was an outlier with Japan (+1.48%) and India (+1.16%) leading gainers.  Shenzhen (-0.49%) was by far the biggest loser on the day as most losses were closer to flat.  In Europe, stocks lean heavily to the upside with just a couple of exchanges in the red at mid-day.  The FTSE (+0.47%), DAX (+0.75%), and CAC (+0.61%) lead the continent higher in early afternoon trading.  As of 7:30 am, US Futures are pointing to a modestly green open.  The DIA implies a +0.45% open, the SPY is implying a +0.27% open, and the QQQ implies a +0.14% open at this hour.  10-year bond yields are up briskly again to 2.342% and Oil (WTI) is basically flat at $112.02/barrel in early trading.

The only major economic news scheduled for release on Tuesday are a trio of Fed speakers on Tuesday (Williams at 10:35 am, Daly at 2 pm, and Mester at 5 pm).   The only major earnings report scheduled before the open are CCL and HUYA.  Then after the market close, ADBE, PAGS, and WOR report.

More “Fed speak” today is the closest we will get to economic news with no earth-shattering earnings reports on the day either. So, the Russian story is likely to continue holding center stage. Monday’s indecision was not much rest after the strong rally the prior 4 days. So, markets remain extended. Even if a bottom has already been put in, rest and consolidation clearly remain in order. However, don’t try to predict the market. Just follow the chart. Remember the market can remain “wrong” a lot longer than we can stay solvent being “right too early.” So, be careful of chasing optimism at this point, but recognize that the longer-term downtrend has been broken. We just need to see a higher low hold and bulls to step in to establish the new uptrend.

Stick to your trading rules and manage the things that you can control. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: NKE, WFC, F, SBUX, GM, AMD, RTX, MSFT, X, XLE, HAL, UPST. 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.

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