Markets opened flat Thursday after Weekly Jobless claims came in well below estimate (310k vs 335k est.) in the last report before the end of extended unemployment will hit the books.  Stocks then put in a little rally the first half-hour.  At that point, we saw a slow fade back to flat at 1 pm.  However, at one Fed member Bowman told the American Bankers Assn. she is “still encouraged about the economic recovery and expects the Fed to taper bond buying this year.” This was nothing new, but markets still sold off hard for 30 minutes before grinding sideways in a tight range the rest of the day.  This left us with Inverted Hammer-type candles in all 3 major indices with prices going out near the lows.  On the day, SPY lost 0.42%, QQQ lost 0.34%, and DIA lost 0.38%.  The VXX gained 2% to 26.06 and T2122 held steady at 33.54.  10-year bond yields dropped to 1.295% and Oil (WTI) fell almost 2% to $67.98/barrel. 

Despite the drop in oil prices, Bloomberg reported Thursday evening that US Oil output fell to its lowest level on record (going back to 1983) after Hurricane Ida.  This amounts to a 1.5mil barrel/day production decline.  In fact, 75% of US oil and gas production in the Gulf of Mexico remains offline more than 10 days after the storm left the gulf.  Maybe most alarmingly, on Wednesday, RDS.A (one of the largest global oil producers) declared “force majeure” on many of its open contracts to deliver oil. This news about the severity of the problem can’t help but impact the Oil E&P tickers that focus on the gulf.

After the close, WFC announced it will pay another $250 million fine.  This one stems from a banking regulator finding that WFC did not properly execute a mortgage loss mitigation program.  This violated a 2018 consent order and was tied to the company’s loan modification program.  The Office of the Comptroller of the Currency said they are also considering putting limits on the bank’s future activities since it has engaged in “unsafe and unsound practices.”  Oddly, WFC stock rose 1.6% in after-hours trading on the news.

Thursday evening, New York joined CA to become the second state (and large population state to boot) that will ban the sale of new internal combustions vehicles by 2035.  The NY ban impacts both cars and trucks, while CA only bans internal-combustion light-duty trucks (SUVs and pickups) as of then.  This is more evidence of the major shift in the auto industry, potentially working in favor of TSLA, NKLA (head starts) and requiring major retooling and technology shifts from the old guard like GM, F, and FCAU. Obviously, batteries, electricity production, and charging station infrastructure-related industries will benefit from the accelerating trend.

Overnight, Asian markets were mostly green on modest moves.  The three exceptions to this rule were Hong Kong (+1.91%), Japan (+1.25%), and Taiwan (+0.98%) which posted strong week-ending gains as Chinese game stocks made a comeback after the Thursday overreaction to the downside.  In Europe, stocks are mostly higher on modest moves as the region rebounds from fear that preceded the ECB meeting.  The FTSE (+0.34%), DAX (+0.45%), and CAC (+0.36%) are leading the way at mid-day.  As of 7:30 am, US Futures are pointing to a gap higher.  The DIA is implying a +0.52% open, the SPY implying a +0.45% open, and the QQQ implying a +0.44% open at this hour.  10-year bond yields are up to 1.321%, Oil (WTI) is up 1.85% to $69.41/barrel, and the dollar is down just slightly in early trading.

The major economic news scheduled for release on Friday is limited to August PPI (8:30 am), and WASDE Report (noon).  The major earnings reports scheduled for the day are limited to KR before the open.  There are no reports scheduled for after the close.

The bulls have been showing a few cracks in their armor this week with the DIA and SPY both printing 4 lower closes and the QQQ now having printed 2 lower closes. However, the T-line (8ema) may still give the QQQ support as the massive high-tech names continue to do work for the bulls with the “buy the dip” outlook. Expect the PPI to impact futures later this morning and this may lead to some volatility early. However, also remember this is Friday, there will be a lot of 9/11 remembrances distracting traders and it has been a light-volume week with no major news (and a heavier news cycle coming next week). So, we may see more drifting on low volume today.

As always, manage your existing trades before you chase any new ones. Remember you don’t have to trade every day. So, consider whether this market suits your trading style or not before blindly trading. Focus on the process and on managing the things you can control. Don’t worry too much about the things outside of your control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won’t let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: There are 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 opened just on the red side of flat Wednesday and after a shaky first 5 minutes, the bulls rallied to test the small gap.  However, that rally failed by 10:30 taking us to the lows by 11 am.  The rest of the day was a whipsaw of small waves that closed up off the lows. This left us with indecisive Doji candles in the DIA and SPY and a long-wick Hammer (or Hanging Man) in the QQQ.  This was also the third straight lower close in the large-cap indices and the first in the QQQ. On the day, SPY lost 0.13%, DIA lost 0.21%, and QQQ lost 0.35%.  The VXX was flat at 25.51 and T2122 fell again to 33.33.  10-year bond yields fell significantly again to 1.338% and Oil (WTI) was up 1.5% to $69.36/barrel. 

During the day Wednesday, the Fed JOLTS report showed that that were 10.9 million job openings in July.  This was much higher than the 9.9 million estimated and was more than 2 million more openings than there were unemployed.  Interestingly, the percentage of openings that saw hires fell from 4.7% to 4.5% while the percentage of workers who quit remained stable at 2.7% and the rate of new layoffs grew by 1%.  Analysts say this indicates workers were confident and that wages for job openings were not high enough to overcome prospect expectations and inflation perceptions.

Overnight, Chinese regulators called the executives of Tencent, NetEase, and other game companies in to remind them of the new restrictions on game time for children.  Those restrictions limit Chinese under age 18 to a maximum of 3 hours per week of online gameplay.  China also announced a temporary halt to new game approvals. Finally, Chinese education authorities banned tutors and education companies from delivering lessons online or in any unregistered venue. These moves caused investors to run for the door on Chinese tech stocks and may well bleed over into China-related stocks listed in the US.

Treasury Sec. Yellen warned House Speaker Pelosi that the Treasury Department will have exhausted its “extraordinary measures” at some point in October.  She called on Congress to raise the national debt ceiling before this happens, otherwise the country will default on debts.  This comes as the Democratic party is infighting over more progressive or more centrist versions of the national budget and as Republicans are saying “no” to both groups of proposals as all sides seek to appeal to their political bases (or principles if you prefer).  While this is on the fiscal side, it comes as the monetary taper debate intensifies and markets are grasping for direction.

Overnight, Asian markets were mixed but leaned to the downside.  Hong Kong (-2.30%) was hit hardest due to being the main exchange for Chinese tech stocks.  However, Australia (-1.90%) and South Korea (-1.53%) were also at the top of the list of exchanges in the red.  Shanghai (+0.49%) was one of the few green exchanges in the region. In Europe, markets are red across the board so far today as the region prepares for the European Central Bank meeting later today.  The FTSE (-1.15%) is an outlier with the DAX (-0.22%) and CAC (-0.20%) being more typical of the region at mid-day.  As of 7:30 am, US Futures are pointing to a modestly down open.  The DIA is implying a -0.23% open, the SPY implying a -0.24% open, and the QQQ implying a -0.20% open at this hour.  The Dollar and 10-year bond yields are down slightly while Oil (WTI) is up two-thirds of a percent in early trading.

The major economic news scheduled for release on Thursday is limited to Weekly Jobless Claims (8:30 am), Crude Oil Inventories (11 am), and 3 Fed speakers (Daly at 11:05 am, Bowman at 1 pm, and Williams at 2 pm).  The major earnings reports scheduled for the day include ASO and HOV before the open.  Then after the close, AMRK reports.

US Markets will likely take its early cue from Weekly Jobless Claims. However, the ECB will begin debating their taper later and Fed speakers will add to that storyline. So, expect some volatility, but Mr. MArket coming to a conclusion is still not likely today. The trend remains bullish, and the chart looks like a normal pause/pullback in all but the Dow. However, the signs of bearishness are clear in the DIA, where even the 50sma has been breached.

Remember you don’t have to trade every day. So, consider whether this market suits your trading style or not before blindly trading. As always, manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don’t worry too much about the things outside of your control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won’t let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: SPRT, CLOV, T, AAPL, NVAX, BTCM, FUTU, SKLZ. 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 flat on Tuesday and proceeded to sell off the first hour of the day.  From that point, the large-cap indices ground sideways, and the QQQQ rallied before grinding sideways.  Another selloff the last half-hour took us out down off the highs.  As a result, the QQQ printed a Doji (at an all-time high close) while the SPY printed a black candle that stayed above the 8ema (and lows of the consolidation range of the last week) and the DIA was the weakest of the group printing an ugly black candle that closed not far up off the lows.  On the day, SPY lost 0.34%, DIA lost 0.76%, and QQQ gained 0.14%.  The VXX rose about 2.4% to 25.53 and T2122 dropped but remains in the mid-range at 41.48.  10-year bond yields were up sharply to 1.371% and Oil (WTI) fell 1.3% to $68.38/barrel.  Perhaps this reflected the Saudi oil price cut from Sunday. 

After having reached almost $53,000 on Monday night, Bitcoin fell hard Tuesday.  The largest cryptocurrency closed down over 11% to $46,354.  This came as El Salvador became the first to begin using Bitcoin as legal tender in the country.  Oddly, that country bought only about $20 million worth of Bitcoin, even though it has a GDP of over $27 billion.  Bitcoin-related stocks such as MSTR and COIN also took heavy hits on the day.  COIN also announced this morning that the SEC has notified it that the regulator intends to sue the company over an interest-earning product the company has planned to launch as soon as next week.

Late in the afternoon Tuesday, F announced it had hired the AAPL executive that has been leading the “Apple Car” project.  Doug Field was also a former TSLA executive (led the development of the TSLA Model 3) and is slated to become the “Chief Advanced Technology and Embedded Systems Officer” at F as part of the company’s turnaround effort.  While AAPL confirmed Doug Field’s exit, they still refuse to confirm the existence of the project and analysts say this would be a blow to the AAPL project that is supposedly now focused on software to support autonomous driving, having abandoned the idea of becoming an auto-maker itself.

Mortgage rates remained unchanged this week (3.03% for a 30-year fixed, conforming loan).  This saw loan demand fall as home refinance applications were down 3% for the week (4% lower than a year ago).  New home purchase applications were flat last week, but down a full 18% from a year ago.

Overnight, Asian markets were mostly red in Asia.  Indonesia (-1.41%), Singapore (-1.27%), and Taiwan (-0.91%) saw the largest losses.  Meanwhile, Japan (+0.89%) and Malaysia (+0.89%) were the only real gainers on the day as China remained flat.  In Europe, with Russia the only outlier, the rest of the continent is in the red at mid-day.  The FTSE (-0.45%), DAX (-0.62%), and CAC (-0.32%) are typical of the continent, but a couple of the small exchanges are down a full percent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward another flat open.  The DIA is implying a -0.02% open, the SPY implying a -0.01% open, and the QQQ implying a -0.05% open at this hour.  10-year Bond yields are also just on the red side of flat, but Oil (WTI) is up 1.3% in early trading.

The major economic news scheduled for release on Wednesday is limited to July JOLTs (10 am), 10-year Bond Auction (1 pm), Fed Beige Book (2 pm), and a Fed Speaker (Williams at 1:10 pm).  The major earnings reports scheduled for the day include KFY and REVG before the open.  Then after the close, ABM, CPRT, GME, LULU, and RH report.

Markets seem to be uncertain at the moment. With inflation fears, a diminishing economic growth rate, and a lack of clarity around both the taper timeline and the fiscal spending/taxation plans, traders appear to be waiting on more direction. Hopefully, some of that will become more clear the next few days with several Fed speakers on tap. In the meantime, beware of volatility and a waffling market. The mid-term trend remains bullish, but we are in a clear consolidation in the SPY and QQQ, while the DIA is pulling back and testing its 50sma in premarket trading.

Remember that the trend is your friend until it ends. So, don’t try to predict market direction changes. However, you should also consider whether market conditions are right for your trading. They say a rising tide lifts all ships, but it’s not a great idea to be out there rowing against the tide when you have a choice. You don’t have to trade every day.

As always, manage your existing trades before you go chasing any new ones. Concentrate on the process and on managing those things that you can control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won’t let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: CPB, XSPA, PENN, AMC, RIG, EDU, PDD, CLOV, VIPS, NKLA, TELL, HSIC, GOGL. 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

August Nonfarm Payrolls increased far less than (one-third of) expected, but the July increase was also revised up significantly.  This happened while the participation rate increased (indicating more job seekers) and August wages grew twice as much as expected.  Analysts said this all indicates the impacts of Delta on hiring in the much more numerous lower-wage jobs (like travel/hospitality and restaurant/retail) and a commensurate percentage shift toward more jobs being filled in the higher-paying services and consulting sectors. 

Regardless, of the reasoning, this caused a quarter percent gap down at the open on Friday.  However, the bulls were not giving in so easily, and led by the Tech sector the major indices saw a slow rally that lasted all day long.  Only the DIA faded at day end. This left us with a Spinning Top candle in the DIA, and strong white candles in the SPY and especially QQQ.  On the day, QQQ gained 0.31% (to another new all-time high close), SPY lost 0.02%, and DIA lost 0.21%.  The VXX rose slightly to 24.94 and T2122 dropped just outside of the overbought territory to 78.60.  10-year bond yields rose t o1.326% and Oil (WTI) fell 1.27% to $69.10/barrel.

In miscellaneous news, MTCH soared after the close Friday when it was announced that ticker will be added to the S&P500 as of September 20.  MTCH will replace PRGO, which will be moved down the S&P MidCap 400 on that date.  On Sunday, Saudi Arabia cut oil prices for sale to Asia by between $1.30/barrel and $1.70/barrel.  The Saudi state oil company price reduction (on all grades of crude) comes after 3 straight months of increases.  This happens as OPEC+ is increasing production limits and the country is looking to capture market share. This morning, GS lowered its Q4 GDP estimates by a full percent (6.5% to 5.5%) and now expects 5.7% growth for the year. GS cited fading fiscal stimulus, a slowing service sector, and inflation worries as impediments to consumer spending.

On Friday, Senate Finance Committee Democrats prepared a number of new tax proposals.  One of these could impact the market by potentially reducing share buybacks. The proposal was to add an excise tax on all share buyback programs.  These programs have been widely seen as a buoy to the market, putting large buyers under price and preventing major pullbacks.  However, Wall Street shrugged off the news Friday. likely because it was only proposed, by only one party, a year before mid-term elections, and that means the proposal is a very long way from being made into law.

Overnight, Asian markets were mixed again on data that Chinese exports in August beat expectations.  (The average estimate called for a 17.1% year-on-year increase, while they reported a 25.6% year-on-year increase.)  Shanghai (+1.51%), Shenzhen (+1.07%), and Japan (+0.86%) led the gainers.  Meanwhile, Thailand (-0.72%) stood out among the losses.  In Europe, markets are red across the board in morning trading.  The FTSE (-0.31%), DAX (-0.28%), and CAC (-0.08%) a decent gauge to the region, but most of the smaller exchanges are further in the red, perhaps waiting on more direction from the ECB meeting on Thursday.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA is implying a +0.10% open, the SPY implying a +0.03% open, and the QQQ implying a -0.07% open at this hour. However, 10-year bond yields are up sharply to 1.368% and Oil (WTI) down over 1% in early trading.

There is no major economic news scheduled for release on Tuesday as we ease back in after the long weekend.  There are also no earnings reports scheduled for the day.

After the holiday weekend, traders return with continued concerns about the impacts of the Delta variant and inflation. Sitting at the all-time highs and with no planned news drivers (none today and few the rest of the week except many Fed speakers), it’s quite possible that we see consolidation continue today. The trend remains bullish, but we’ve seen indecision among the large-caps for at least a week as high tech has been leading the rally for some time.

Good trading rules and discipline is what separates long-term success from failure in trading. Concentrate on the process and on managing those things that you can control, while not worrying too much about the things you can’t control. As always, manage your existing trades before you go chasing any new ones. However, above all, consistently take profits when you have them. Simply don’t let greed turn your winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: PDD, EDU, CAN, EBAY, XHB, KR, HPQ, VIAV, AMC, VIPS. 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

Economic data was mixed in the premarket Thursday.  Jobless Claims came in very slightly below expected and the July Trade Balance improved a bit.  However, nonfarm productivity for Q2 came in three-tenths of a percent lower than expected.  Markets seemed to like the news as stocks opened a third of a percent higher.  At that point, the large-cap indices ground sideways in a tight range until 1 pm, while the QQQ sold off steadily until 2 pm.  There was market-wide selling from 1-2 pm and then a very late rally into the close.  This left the SPY and DIA as indecisive Doji and the QQQ as a gap-up black candle with a significant lower wick (also indecisive).  On the day, SPY gained 0.32% (to a new all-time high close), DIA gained o.38%, and QQQ lost 0.05%.  The VXX fell to 24.77 and T2122 rose slightly, further into the overbought territory at 89.38.  10-year bond yields fell to 1.287% and Oil (WTI) was up 1.6% to $69.72/barrel.

During the afternoon, F announced that its August sales had declined by over 33% due to the global chip shortage.  This was its worst month since June 2020 at the height of the pandemic shutdown.  Worst of all, August is historically one of the strongest car sales months.  For reference, US car dealers have 942k cars in inventory now compared to an average inventory of 3 million cars before the pandemic.  This chip shortage is quite obviously a problem across the auto (and other) industry, not just for F. 

A new study reported by Bloomberg says that more than 1 billion Asians will join the middle class by 2030.  This includes 76 million in Indonesia and even 24 million of that billion being in the US.  However, 75% of the number will be located in China and India.  The same study said that the changing demographics will lead to middle class shrinking in countries like Japan, Western Europe, and the US.  Obviously, this shift will impact corporations across the globe. In possibly related news CNBC reports that Chinese stock investing volumes continue to surge, despite recent government crackdowns on the Chinese Tech Giants. CNBC says that the average daily volume has held steady above $154 billion per day.

After the close, news came that the Democratic $3.5 billion budget bill is running into infighting problems.  Essentially Democratic Senator Manchin asked his party to “pause” the budget while both he and another Democratic Senator also said they will not support a budget anywhere near that size.  On the other side of the same party, progressives will not support a budget much smaller.  This puts the President’s domestic agenda at risk and may also imperil the $1 Trillion Infrastructure Bill that Democrats have been trying to bundle as a pair with the Budget Bill.

Overnight, Asian markets were mixed, with a widespread on the bullish side.  Japan (+2.05%) surged as current PM Suga dropped out of his governing party’s leadership race.  Taiwan (+1.14%), Indonesia (+0.80%), and South Korea (+0.79%) were the real leaders to the upside.  Meanwhile, Hong Kong (-0.72%) and Shenzhen (-0.68%) paced to the downside.  In Europe, markets are also mixed but lean heavily toward the red as they wait on US data as a guide.  The FTSE (+0.23%) and DAX (+0.14%) are outliers, but the CAC (-0.42%) is typical of the broader continent.  As of 7:30 am, US Futures are pointing toward an open just on the green side of flat an hour ahead of the August Payroll Data.  The DIA is implying a +0.16% open, the SPY implying a +0.18% open, and the QQQ implying a +0.12% open at the moment.  10-year bond yields and Oil (WTI) are also up slightly in early trading.

The major economic news scheduled for release on Friday includes Aug. Nonfarm Payrolls, Aug. Avg. Hourly Earnings, Aug. Participation Rate, and Aug. Unemployment Rate (all at 8:30 am), Aug. Service PMI (9:45 am), and ISM Non-Mfg. PMI (10 am).  MAKE NOTE: we have a 3-day weekend ahead for US and Canadian markets. There are also no earnings reports scheduled for Friday or Monday.

August Payrolls data are very likely to call the tune today. However the Payroll data is interpreted by the traders, this is likely to be reinforced by mid-morning PMI data as Mr. Market begins to look ahead a couple of weeks to the Fed meeting. With that said, we do have an upcoming 3-day weekend, which many traders may try to stretch. So, be ready for early volatility with the potential for volume to begin drying up at some point mid-day.

Concentrate on the process and on managing those things that you can control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. As always, manage your existing trades before you go chasing any new ones. However, above all, consistently take profits when you have them. Simply don’t let greed turn your winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: FGEN, SKLZ, PDD, MMAT, BIDU, IQ, STEM, BILL, JMIA, LOW, AG, MGM, WYNN, RIG, CLOV, KR, SPT. 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

The ADP private payrolls report came in very soft (374k vs 600k est.) before the Open Wednesday, but bulls didn’t seem to care with a slight gap up to start the day.  At that point, QQQ rallied hard for 30 minutes, DIA sold off for an hour, and SPY ground sideways in a very tight range.  All 3 major averages then moved sideways until a long selloff started at 2 pm and ran right into the close.  This left us with a Shooting Star-type candle in the QQQ, a Bearish Engulfing of a Doji in the DIA, and just a black candle in the SPY.  On the day, SPY gained 0.07%, QQQ gained 0.17%, and DIA lost 0.10% as its consolidation continued.  The VXX fell to 24.81 and T2122 rose back into the overbought territory at 88.43.  10-year bond yields started the month unchanged at 1.302% and Oil (WTI) fell slightly to $68.28/barrel.

At the Close Wednesday, F announced it will once again be cutting F-150 pickup production (as well as other highly profitable vehicles) due to the global chip shortage.  The company will leave the currently closed Kansas City plant closed at least another week.  It will also cut shifts at the Kentucky truck plant and run only one of three shifts at the Michigan truck plant.  In a related story, Bloomberg reports this morning that TSLA’s Chinese plants were “closed for days” last month due to the same cause, the chip shortage. 

AAPL announced yesterday that 8 states will now allow their citizens to use electronic IDs such as their iPhone or Apple Watch as valid for security checks, including airports.  The states include AZ, CT, GA, IA, KY, MD, OK, and UT.  This comes after AAPL announced last month that it was working with the TSA to gain approval of ID by electronic device approval.  AAPL also announced plans to make slight tweaks to App payment policy.  This is an attempt to avoid or mitigate moves to force massive changes to the App Store policies and revenue.

So far this morning, CCEP and PDCO reported a beats on both lines while HRL beat on revenue and came in fractions of a cent below estimates on earnings.  In other business news, QSR (Burger King) announced a customer loyalty program, matching recent moves by MCD, WEN, and longer-standing programs from SBUX and CMG.

Overnight, Asian markets were mixed again, this time on modest moves as Australia reported a larger-then-expected (20% higher) trade surplus in July on commodity price strengths.  On the red side, South Korea (-0.97%) and Taiwan (-0.88%) were by far the leaders.  Meanwhile, on the upside, India (+0.92%), Shanghai (+0.84%), and Thailand (+0.81%) led the charge.  In Europe, markets are mostly green at mid-day.  The FTSE (-0.06%), DAX (+0.03%), and CAC (+0.09%) are flat, but most of the continent is a little more to the upside at noon in London.  As of 7:30 am, US Futures are pointing to a modest green open.  However, this is also an hour before a considerable economic data dump.  The DIA is implying a 0+0.15% open, the SPY implying a +0.17% open, and the QQQ implying a +0.22% open at the moment.  10-year bond yields are down to 1.287% and Oil (WTI) is up two-thirds of a percent in early morning trading.

The major economic news scheduled for release on Thursday includes Imports/Exports, Weekly Initial Jobless Claims, Q2 Nonfarm Productivity, and Q2 Unit Labor Costs (all at 8:30 am), July Factory Orders (10 am), and 2 Fed speakers (Bostic at 1 pm and Daly at 3 pm).  The major earnings reports scheduled for the day are limited to AEO, DOOO, CIEN, DCI, GCO, GMS, HRL, PDCO, SIG, and TTC before the open.  Then after the close, AVGO, DOCU, HPE, JOAN, and SAIC report.

With a lot of data coming out this morning and the August Payrolls number due tomorrow, it is worth reminding ourselves that it’s not the data that matters. What matters is the way the market reacts to the news. For example, bad economic data could be interpreted as very bad for future earnings reports. However, it could also be interpreted as giving cover to the Fed to push the taper further out. The point is, don’t think you can forecast the data, let alone how the market will react. Just stick with the current trend until the trend breaks (ends).

As always, manage your existing trades before you go chasing any new ones. Concentrate on the process and on managing those things you can control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. Above all, consistently take profits when you have them. Don’t let greed turn your winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: FNKO, CAN, MMAT, STEM, PLAY, USO, GEVO, NLOK, CDEV, CRSR, PWR, 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

Tuesday was a consolidation day for markets with a flat open leading to a sideways grind in all the major indices.  The QQQ showed the most volatility for the day, but closed well up off the lows and closer to the highs of the day, leaving a Hanging Man type of candle.  The two large-cap indices both printed Doji-like candles.  On the day, the SPY lost 0.15%, the DIA lost 0.05%, and the QQQ lost 0.08%.  The VXX fell slightly to 25.49 and T2122 dropped a bit further down into the mid-range.  10-year bond yields were up to 1.31% and Oil (WTI) fell to $68.52/barrel.  Despite the small losses, the S&P500 booked its 7^th-straight winning month in August.  On the month, SPY was up 2.98%, DIA was up 1.27%, and QQQ was up 4.22%.

For the week, mortgage loan demand was basically flat.  New home loan applications rose 1% week-over-week.  Meanwhile, refinancing loan applications fell 4% for the week.  This comes as mortgage rates (30-year fixed, conforming loan) remain steady at 3.03%.  

This morning Bloomberg reported that a new study by Willis Towers Watson Consulting finds that 52% of US employers are planning or are strongly considering implementing employee vaccine mandates by the end of the year.  That is well more than double the 21% that currently have mandates in place. In addition, 14% of the companies are also considering implementing a “healthcare surcharge” on unvaccinated employees in lieu of the mandate.  This comes from a survey of 1,000 US employers conducted August 18-25.

A study research study published Monday in the Journal of American Medical Assn. (JAMA) found that the MRNA vaccine creates well more than twice as many antibodies as the PFE-BTNX vaccine.  The study went on to suggest the differences may be due to a larger amount of active ingredient in the MRNA vaccine and potentially influenced by the different intervals between shots in the two vaccine regimens. 

Overnight, Asian markets were mixed on private data showing that China’s PMI is shrinking (49.2 down from 50.4 in July).  Japan (+1.29%) and Singapore (+1.07%) led the fewer gainers, while Indonesia (-0.97%) and Malaysia (-0.90%) paced the more numerous losers.  In Europe, we see green across the board as of mid-day. The FTSE (+0.79%), DAX (+0.18%), and CAC (+1.20%) are typical of the spread in that region at this hour.  As of 7:30 am, US Futures are pointing to a positive open.  The DIA is implying a +0.29% open, the SPY implying a +0.32% open, and the QQQ implying a +0.20% open in the pre-market.  Meanwhile, the Dollar is up slightly and 10-year bond yields are up to 1.321%, while commodities are mixed in early trading.

The major economic news scheduled for release on Wednesday includes August ADP Nonfarm Employment (8:15 am), August Mfg. PMI (9:45 am), ISM Mfg. PMI (10 am), Crude Oil Inventories (10:30 am), and Fed member Bostic speaks (noon).  The major earnings reports scheduled for the day are limited to BF.B, CPB, and DY before the open.  Then after the close, CHWY, FIVE, and GEF report.

Markets get more economic data today, which may help break the stalemate of the very recent consolidation. In the premarket, we’ll see a preview of Friday’s August Payrolls data. then mid-morning we get PMI data. Both may lend to some volatility. Remember that we still sit at all-time highs and, perhaps, just a little extended from the T-line (8ema), but the trend remains bullish.

As always, manage your existing trades before you go chasing any new ones. Also, remember, the trend is your friend until it is broken. Simply put, the market maintains a trend far more often than it reverses the trends. Concentrate on the process and on managing those things you control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. Above all, consistently take profits when you have them. Don’t let greed turn winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: DGX, RIG, JETS, AMD, NAT, AAPL, WBA, BGFV. 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 started the week off with a small gap higher in all 3 major indices.  After the open, the SPY and QQQ saw a strong rally into late morning and then sideways trading the rest of the day.  Meanwhile, the DIA was much more tentative, trading in waves to the side all day long.  This left us with a strong bullish candle in the QQQ, a decent bullish candle in the SPY, with just a bit of upper wick, and a gap-up black candle in the DIA.  On the day, SPY gained 0.44% (to a new all-time high close), QQQ gained 1.12% (to a new all-time high close), and DIA lost 0.14%.  The VXX fell a percent to 25.59 and T2122 dropped just outside of the overbought territory to 76.62.  10-year bond yields fell to 1.28% and Oil (WTI) gained about half of a percent to $69.06/barrel.

During the day, SEC Chairman Gensler told Barron’s that the banning of “payment for order flow” is a possibility.  This caused HOOD to tank, closing down 6.89% after being down over 10% at one point.  However, this has broader implications for traders as most brokerages are offering zero or no commissions now on the back of this practice of selling order flow to marketmakers rather than charging higher commissions.  Gensler told Barron’s that this practice is an inherent conflict of interest (not necessarily giving brokerage clients the best price at the moment of order) and he feels it hurts both traders and markets.  No timetable was mentioned, but this interview came after Friday’s announcement that the SEC would step up inquiries into the “gamification” of trading.  So, it implies a major change in SEC governance. In other brokerage news, PYPL is exploring ways to allow users to invest in stocks.  While likely not a threat to the major brokers, the likes of HOOD, WeBull, SOFI, FUTU, etc. 

In tech stock news, South Korea has passed legislation (180-8) that prohibits AAPL and GOOG from requiring App developers to use only their own payment processing systems.  South Korea is a major smartphone market. However, the much larger picture would be the adoption of such measures in Europe (likely) and the US (unknown probability). This will mean that developers can avoid paying AAPL and GOOG a 30% commission on all sales.  If we assume the App developers will still need to have payments processed somewhere (at a cost), the move will likely mean improved profitability (but not by 30%) for developers and a major hit to AAPL and GOOG app store revenues.

GS said Monday that they expect 750k evictions by the end of the year out of the 3.5 million US households that are behind on rent.  In related news, Bloomberg also reports that analyst firm RealPage has found that rents are increasing by an average of 17% relative to what the previous tenant paid. Obviously, these two developments will have major impacts on REITs and other property-related businesses.

Overnight, Asian markets were mostly green.  South Korea (+1.75%), Hong Kong (+1.33%), and Japan (+1.08%) led the gains.  Singapore (-1.52%) and Shenzhen (-0.66%) were the only red in the region as Chinese Factory data showed a slowing growth of activity in August.  In Europe, markets are also mostly green so far today.  The FTSE (-0.05%) is lagging, but the DAX (+0.71%), and CAC (+0.28%) are typical of the rest of the continent at mid-day.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA is implying +0.01%, the SPY implying +0.02%, and the QQQ implying +0.06%.  The Dollar is trading a bit lower, while 10-year bond yields and Oil are up slightly in early trading.

The major economic news scheduled for release on Tuesday is limited to Chicago PMI (9:45 am) and Conf. Board Consumer Confidence (10 am).  The major earnings reports scheduled for the day are limited to DBI, NTES, and DAO before the open.  Then after the close, PVH reports.

Markets may well be in “wait and see” mode as we draw nearer to more data dumps later in the week (especially the August Payrolls number on Friday). However, we are sitting at all-time highs in s strong bullish trend on fairly strong breadth. We are a bit extended from the T-line in the QQQ (rally leader), but there has been no hint of bear strength yet. So, don’t bet on trend failure, but be prepared if a pullback or rest starts to materialize.

Concentrate on the process and on managing those things you control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. As always, manage your existing trades before you go chasing any new ones. Also, remember, the trend is your friend until it is broken. Simply put, the market maintains trend far more often than it reverses trends. Above all, consistently take profits when you have them. Don’t let greed turn winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: OPCH, CAN, EBON, BTBT, ARRY, RIDE, FLDM, NAIL, ABT, DLPN, PDD, RIG, TSLA. 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 slightly higher Friday and started to drift higher.  However, Fed Chair Powell’s speech was met with joy and a strong rally between 10 and 10:30 am, before drifting slowly higher until the last 15 minutes of the day.  This left us with strong bullish candles in all 3 major indices that closed near the highs.  On the day, SPY gained 0.89% (to a new all-time high close), DIA gained 0.68%, and QQQ gained 0.97% (to a new all-time high close).  The VXX fell over 5% to 25.85 and T2122 jumped deep into the overbought territory at 91.51.  10-year bond yields fell significantly to 1.305% and Oil (WTI) rose almost 2% to $68.68/ barrel.

Hurricane Ida came ashore early Sunday as a Category 4 hurricane.  It made landfall West of New Orleans.  Prior to the landfall, Ida had shut down 91% of Oil production in the Gulf of Mexico.  Having reached the US, Ida will now shut down a sizeable chunk of US oil refining and chemical production that follows the Mississippi River to the North and extends West to the Texas state line (Chemical Alley). However, the Oil production, refining, and chemical processing plants should be largely back online within days, pending local damage and power outages.

In chip shortage news, TSM has announced they will be increasing the price of their products by 10-20% depending on the wafer generation as of the end of this year.  Computers will see the lower end of the price rise, but low-end electronics (like cars) will see the high end of the increases. There is very little doubt that Intel, Global Foundries (recently filed to go public), QCOM, AVGO, and others will follow suit.  The underlying reasons are the huge investments being made into additional production capacity, modest input cost increases, and most importantly the tremendous pricing power the industry has had amidst skyrocketing demand over the last 18 months. This is likely to lead to rising prices on every product that contains electronics.

In other virus-related news, new US infections continue to rise.  However, analysts continue to predict we may have reached the peak of this surge.  The totals rose to 39,665,515 confirmed cases and deaths are now at 654,689. The averages are now at 156,819 new cases and 993 new deaths per day.  Amidst that backdrop, Israel (at an all-time high peak in new cases), which tends to front-run US trends, has now approved and is pushing booster vaccinations in an effort to forestall another national shutdown.  Along those lines, over the weekend both Dr. Fauci (NIH) and the White House gave support to the idea of boosters for all American citizens while continuing to push for vaccinations of any kind.  (Only 53% of US Adults are fully vaccinated.)

Overnight, Asian markets were almost green across the board.  Only Shenzhen (-0.09%) showed any red at all.  Meanwhile, Indonesia (+1.71%), India (+1.35%), and Taiwan (+1.08%) led the gainers.  In Europe, markets are a bit more mixed, but still lean to the green side on modest moves.  The FTSE (+0.32%), DAX (+0.22%), and CAC (+0.18%) are typical of the gainers with outliers like Greece (+1.16%) and Norway (-0.29%) at mid-day.  As of 7:30 am, US Futures are pointing to a flat open.  The DIA is implying a+0.05% open, the SPY implying a +0.09% open, and the QQQ implying a +0.13% open at this hour.

The major economic news scheduled for release on Monday is limited to July Pending Home Sales (10 am).  The major earnings reports scheduled for the day are limited to CTLT, LI, and VEON before the open.  Then after the close, NDSN, STNE, and ZM report.

With Jackson Hole behind us, markets are likely to look toward the data dumps later in the week (and especially the August Payrolls Report on Friday). It is possible volatility picks up here, but most of all, remember that we are sitting at all-time highs coming into a month’s end. (Granted it is not a quarter-end, but still more funds will be reporting the period’s results than say a given week. And that can lead to some profit-taking and Window Dressing prior to Wednesday.

Concentrate on the process and on managing those things you control, while not worrying too much about the things you can’t control. Good trading rules and discipline is what separates long-term success from failure in trading. As always, manage your existing trades before you go chasing any new ones. Also, remember, the trend is your friend until it is broken. Simply put, the market maintains trend far more often than it reverses trends. Above all, consistently take profits when you have them. Don’t let greed turn winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: WKHS, NKLA, F, KRE, BB, BFLY, RIDE. 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 flat on Thursday and sold off in a couple of waves during the day as Fed members spoke to close on the lows.  While the move was larger than the previous 3 days of the week, the move was about the same size as every move last week.  So, it was by no means a selloff.  This action left us with a Bearish Engulfing candle in the DIA (which failed the 8ema, but just black-body candles that did not even test the 8ema in the SPY and QQQ.  On the day, SPY lost 0.58%, DIA lost 0.56%, and QQQ lost 0.64%.  The VXX rose 4% to 27.25 and T2122 dropped back into the mid-range at 40.16.  10-year bond yields gained slightly to 1.351% and Oil (WTI) fell three-quarters of a percent to $67.85/barrel.

After the close Thursday, WDAY, MRVL, and GPS beat on both lines.  HPQ missed on revenue, but beat on earnings.  PTON beat on revenue and missed very significantly on earnings (-$1.05/share vs. -$0.44/share estimated).  PTON also announced they will be slashing the price of their less expensive bike by hundreds of dollars starting immediately.  (The Bike+ debuted at $2,495 was reduced twice to $1,895 and will now sell for $1,495.)   In legal news, GILD won an appeal on the $1.2 billion judgment BMY had won related to a cancer treatment that encourages the patient’s own immune system to fight the disease. The judge said the original ruling was not based on substantial evidence.

The big news on the day is expected to be Fed Chair Powell’s speech at the Jackson Hole Symposium.  Markets (and especially media analysts) are expecting to get strong guidance from Powell on when and how the FOMC will begin to taper bond-buying.  However, there is a major risk of disappointment in the speech with uncertainty over the current and future effect of the Delta variant on one side and a seemingly surging economy on the other. 

As an example of Powell’s problem, just yesterday the Q2 GDP we revised upward a tenth of a percent to 6.6%, jobless claims came in holding at pandemic era lows, and two Fed members told the press they were worried about inflation.  However, the US also reported 170,000 new covid cases, almost 12,000 new hospitalizations, and 1,215 deaths. More companies also announced pushing back the “return to the office” and that they are requiring employees to be vaccinated.  So, the market wants concrete direction, but Powell needs to say we will taper, without locking himself into hard timelines.

Overnight, Asian markets were mixed but leaned slightly to the green side on modest moves.  Taiwan (+0.84%), Shanghai (+0.59%), and Thailand (+0.58%) led the gainers.  Singapore (-0.92%), Japan (-0.36%) and Indonesia (-0.28%) paced the losses.  In Europe, markets are mixed and flat but lean slightly to the downside ahead of the headliner speeches at Jackson Hole.  The FTSE (-0.06%), DAX (-0.02%), and CAC (-0.11%) are typical of the continent.  As of 7:30 am, US Futures are pointing to a modestly green open ahead of data and the Fed Chair Speech.  The DIA is implying a +0.24% open, the SPY is implying a +0.30% open, and the QQQ is implying a +0.34% open at this hour.

The major economic news scheduled for release on Friday includes July PCE, Jul Trade Balance, July Personal Spending, and July Retail Inventories (all at 8:30 am), and Michigan Consumer Sentiment (10 am). The Jackson Hole Symposium resumes at 9 am and Fed Chair Powell does his presentation at 10 am.  The major earnings reports scheduled for the day are limited to BIG before the open.  There are no earnings reports scheduled after the close.

With Powell’s speech beginning at 10 am, I expect very light action early (unless Powell’s speech gets leaked early). With that said, I also expect considerable volatility when the speech sinks in. If you are not already hedged or lighter in your positions, it is probably time to be very nimble. Trade carefully and remember this is Friday. So, don’t forget to pay yourself and prepare for the weekend news cycle.

Good trading rules and discipline is what separates long-term success from failure in trading. Concentrate on the process and on managing those things you can control, while not worrying too much about the things you cannot control. As always, manage your existing trades before you go chasing any new ones. Remember, the trend is your friend until it is broken. And if you miss a move, just admit it and move on to the next chart. Never chase price on an entry and remember to keep your losses small by using stops or hedges. Above all, consistently take profits when you have them. Don’t let greed turn winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: RIDE, BTBT, CARR, BB, BTU, EBAY, WKHS, GSMG, NURO. 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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