Wednesday saw a mixed start to the day for markets.  SPY opened 0.14% lower, DIA opened 0.07% higher, and QQQ gapped down 0.39%.  From that point, all three major index ETFs chopped sideways until early afternoon.  Oddly, instead of waiting on the Fed decisions and statement, all three started to rally at 1:30 p.m.  However, the rally really picked up steam with a strong spike higher between 2:30 p.m. and 3 p.m.  This was followed by 30 minutes of a sideways grind in all three.  At that point, the Bears woke up and markets sold off sharply the rest of the day.  This action gave us Inverted Hammer candles in all three major index ETFs.  DIA gave us a white version while SPY and QQQ printed black versions.  This means that all three also retested and failed their T-line (8ema) during the session.  This all happened on about average volume.  We saw average volume in the QQQ and SPY along with heavier-than-average volume in the DIA.

On the day, the 10 sectors were evenly split with Utilities (+1.18%) far out front leading the five gainers while Energy (-1.36%) was way out front leading the five red ones.  At the same time, SPY lost 0.29%, DIA gained 0.20%, and QQQ lost 0.72%.  VXX gained 0.59% to close at 13.69 and T2122 climbed out of the oversold territory to close in the lower-end of the mid-range at 28.51.  10-year bond yields fell to 4.639% and Oil (WTI) plummeted 3.31% to close at $79.20 per barrel. So, on Wednesday, saw a typical “wait and see” in the morning.  However, oddly, markets seemed to think they knew how the wind would be blowing about a half hour ahead of the Fed announcements.  Then we saw a spike, followed by rest and then a sharp selloff.  In short, traders seem relieved the Fed left rates where they were and loved the fact Chairman Powell essentially took more rate hikes off the table.  However, they also then realized there won’t be a rate cut anytime soon and that scared them back into a bearish move.

The major economic news scheduled for Wednesday included the ADP Nonfarm Employment Change, which came in stronger than expected at 192k (compared to a forecast of 179k but down from the March reading of 208k).  Later, April S&P Global Mfg. PMI was just a tick stronger than predicted at 50.0 (versus a 49.9 forecast but down from March’s 51.9).  After that, March Construction Spending was well down from what was anticipated at -0.2% (compared to a +0.3% forecast but slightly better than February’s -0.3% value).  Meanwhile, April ISM Mfg. Employment came in a bit stronger than expected at 48.6 (versus a 48.2 forecast and the March 47.4 reading).  At the same time, April ISM Mfg. PMI was lower than predicted at 49.2 (compared to a 50.0 forecast and a March 50.3 value).  However, the April ISM Mfg. Price Index was well above expectations at 60.9 (versus a 55.5 forecast and a 55.8 March reading).  On the jobs front, March JOLTs Job Openings were down at 8.488 million (compared to the 8.680 million forecast and significantly down from the February 8.813 million).  Later, EIA Weekly Crude Oil Inventories showed a large, unexpected inventory build of 7.265 million barrels (versus a predicted drawdown of 2.300 million barrels and the prior week’s 6.368-million-barrel drawdown). 

However, the big news of the day was the Fed.  The FOMC held rates flat, but the statement added a note that there has been a lack of progress on inflation toward its 2% goal since its last meeting.  Beyond that, the statement added a flat declaration that, beginning in June, the FOMC will slow the pace of its balance sheet reductions (in terms of bonds) from an average of $60 billion to $25 billion per month.  However, it will also maintain the $35 billion per month pace of reductions for non-Treasury balance sheet items (mortgage-backed securities and agency debt).  In terms of Powell’s press conference, the Chair poo-pooed the idea of stagflation, saying “I don’t see the ‘stag’ or the ‘-flation’,” … “(So,) I don’t really understand where that’s coming from.”  When asked about the possibility of a rate hike, Powell said “I think it’s unlikely that the next policy rate move will be a hike. I’d say it’s unlikely.”  When pushed further on what it would take to cause a rate hike, the Fed Chair replied “I think we’d need to see persuasive evidence that our policy stance is not sufficiently restrictive to bring inflation sustainably down to 2% over time. That’s not what we think we’re seeing.”  The rest of the press conference really boiled down to Powell saying the Fed has not gained any additional confidence that inflation is on path to 2% (which the Fed has said is the required trigger for a rate cut).  Powell said, “It is likely that gaining such greater confidence will take longer than previously expected. We are prepared to maintain the current target federal funds rate for as long as appropriate.”

In stock news, on Wednesday, TELL sent Houston-based workers home as it is in talked to sell its shale gas business in order to raise funds for its “Driftwood LNG Export” plant.  At the same time, research firm S3 Partners released a report saying that the so-called Magnificent 7 (GOOGL, MSFT, AAPL, NVDA, AMZN, META, and TSLA) now account for $1.08 trillion in short interest.  This means they represent 12% of the US market’s total shorts.  Later, Bloomberg reported that KR is in talks with DIS about adding DIS+ streaming as a benefit of the grocery chain’s membership program for the remainder of 2024 at no cost.  At the same time, SPR announced it had a plan that gives it “a high degree of confidence” it can meet BA’s quality and production rate demands for 737 MAX jets.  (BA and the FAA declined to comment to Reuters on the announcement.) 

In stock legal and governmental news, on Wednesday, Reuters reported that sources tell it the FTC will rule on its antitrust investigation of the XOM acquisition of PXD for $60 billion within days.  Later, the Wall Street Journal reported that the FTC is planning to approve the deal, but will prohibit the PXD CEO from joining the board of XOM as a condition of approval.  After the close, CMCSA stopped broadcasting Bally Sports channels.  This puts the bankruptcy restructuring of a SBGI subsidiary (Diamond Sports) at risk of collapse.  At the same time, Bloomberg reported that US bank regulators are discussing finalizing bank capitalization rules by as soon as August.  After the close, JPM made a filing that indicated it expects bank assets in Russia to be seized by that country.  (The filing did not specify the dollar value of the bank’s assets in Russia.)

After the close, AFL, AIG, AXS, BHE, CHRW, CWH, CVNA, CTSH, CW, DLX, EBAY, ENSG, EXPI, FLSR, FNV, GIL, HST, MGM, MYRG, PAYC, PGRE, PPC, PTC, QRVO, QCOM, SEB, SCI, SFM, TTEK, VMI, VICI, VTR, ZG, and Z all reported beats on both the revenue and earnings lines.  Meanwhile, ACHC, ALL, BBSI, BV, BZH, CTVA, DVN, ES, HLF, THG, MRO, MET, MOS, SUM, and UGI missed on revenue while beating one earnings.  On the other side, AFG, AWK, CAR, CF, DASH, GFL, KMPR, MAA, MKL, and TROX beat on revenue while missing on earnings.  However, ALB, ANSS, BALY, CMPR, CODI, NVST, ETSY, JAZZ, CNXN, MUSA, RHP, SIGI, and TWI missed on both the top and bottom lines.  It is worth noting that BHE, MPWR, SFM, and TTEK raised their guidance.  At the same time, QRVO and ZG lowered forward guidance.

Overnight, Asian markets were mixed, Hong Kong (+2.50%) was by far (by 1.6%) the biggest mover on the day.  On the other side, Shenzhen (-0.90%) and Taiwan (-0.85%) paced the losers on a day where six exchanges were green and six red.  In Europe, we see a similar picture taking shape at midday with seven of 15 bourses in the green.  The CAC (-0.73%), DAX (+0.08%), and FTSE (+0.39%) lead the region on volume as Norway (-0.88%) has made the biggest move in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a solidly green start to the day.  The DIA implies a +0.48% open, the SPY is implying a +0.71% open, and the QQQ implies a +0.93% open at this hour.  At the same time, 10-year bond yields have dropped to 4.602% and Oil (WTI) is up 0.43% to $79.38 per barrel in early trading.

The major economic news scheduled for Thursday includes March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, and Q1 Unit Labor Cost (all at 8:30 a.m.), March Factory Orders (10 a.m.), and Fed Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open include AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, and ZTS. Then, after the close, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC report. 

In economic news later this week, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, MT, BDX, BWA, BTSG, BRKR, CHD, CI, CNK, CNHI, ENOV, NVRI, ULCC, GEL, GVA, HWM, ICFI, IQV, IRM, ITT, KTB, LAMR, MCO, MUR, NVO, PBF, PBI, PWR, SWK, TFX, TRI, UPBD, VNT, W, XYL, ZBH, and ZTS all reported beats on both the revenue and earnings lines.  Meanwhile, AME, APTV, BCE, CAH, COP, XRAY, LIN, RXO, SHEL, WEN, and WRK all missed on revenue while beating on earnings.  On the other side, ACDVF, APO, and EXC beat on revenue while missing on earnings.  However, ARES, PENN, REGN, and WCC missed on both the top and bottom lines.  It is worth noting that CI raised its forward guidance.

In miscellaneous news, on Wednesday, GS strategists told clients that the single-stock options volume decline prior to the start of earnings season signaled weakness in stocks.  However, the report says that this volume has now stabilized and even shows a modest increase, which GS says indicates that the market has an appetite to buy the weakness in equity prices.  (In other words, “buy the dip” is still in play.)   Meanwhile, BestEx Research that roughly one-third of all S&P 500 stock trades happen in the last 10 minutes of the trading session.  This is up significantly from the 27% happening in those minutes found in the company’s 2021 study. 

In other news, the US Treasury and State Departments issued hundreds of sanctions related to targeting the Russian invasion of Ukraine.  This included 20 companies in China and Hong Kong. Unsurprisingly, a spokesman for the Chinese embassy in Washington said Beijing firmly opposes what he called the US’s “illegal unilateral sanctions.”  Meanwhile, in Japan, the Yen jumped 3% against the Dollar late in the US session.  This has led to broad speculation that the Bank of Japan has intervened for the second time this week. Finally, in late-breaking news, PTON announced it will lay off 15% of its staff and the CEO will step down.

With that background, it looks as if the Bulls have rethought yesterday’s late selloff and are looking to gap all three major index ETFs higher. All three opened just under their T-line (8ema) but are printing small, indecisive, white-bodied candles after that gap. The SPY, DIA, and QQQ all remain just below their T-line (8ema). So, the short-term trend is now bearish but under pressure from the Bulls. Meanwhile, the mid-term remains bearish. The longer-term market remains Bullish but under pressure. In terms of extension, none of the three major index ETFs is extended below their T-line. At the same time, the T2122 indicator is now in the lower-end of its mid-range. So, both sides have room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, all 10 are in the green this morning with the biggest dog NVDA (+1.75%) out front leading the way higher. Keep in mind that we still have the April Jobs Report on Friday morning. So, after the rethink of Fed reaction we may see an afternoon drift waiting for those Friday morning numbers.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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Markets opened lower on Tuesday in response to a higher-than-expected Employment Cost Index.  SPY gapped down 0.28%, DIA gapped down 0.33%, and QQQ gapped 0.41% lower.  From there, all three major index ETFs meandered sideways (perhaps lulling the Bulls to sleep) until 10:50 a.m.  At that point, all three began a wavy selloff that lasted the rest of the day and accelerated the last 10 minutes.  (In particular, QQQ had a massive move that last 10 minutes.)  This action gave us large, black-bodied candles with small upper wicks and which closed on the lows in all three major index ETFs.  All three could also be called Evening Star signals if you are a little lenient on the first candle of that 3-candle signal.  All three also crossed back below their T-line (8ema), with DIA even coming into the range of the lows from roughly two weeks ago.

On the day, all 10 sectors were in the red with Energy (-2.92%) far out front leading the rest of the market lower.  Healthcare (-0.28%) held up far better than the other sectors but obviously was also in the red.  Meanwhile, SPY lost 1.58%, DIA lost 1.48%, and QQQ lost 1.89%.  VXX gained more than three percent to close at 13.61 and T2122 plummeted back down into the oversold area at 15.51.  10-year bond yields spiked to 4.682% and Oil (WTI) dropped 1.20% to close at $81.64 per barrel.  So, Tuesday was clearly a day for the Bears.  A gap lower led to treading water for almost 90 minutes but then the selling kicked in and did not stop the rest of the day.  All this happened on a bit less than average volume in all three major index ETFs.

The major economic news scheduled for Tuesday included the Q1 Employment Cost Index, which, as said above, came in higher than expected at +1.2% (compared to a forecast of +1.0% and a Q4 reading of +0.9%).  Later, April Chicago PMI was lower than predicted at 37.9 (versus a 44.9 forecast and a 41.4 March value).  Then, Conf. Board Consumer Confidence also came in a bit low at 97.0 (compared to a predicted 104.0 and a previous reading of 103.1).  After the close, API Weekly Crude Oil Stocks showed a n unexpected 4.906-million-barrel inventory build (versus a forecast 1.500-million-barrel drawdown and the prior week’s 3.230-million-barrel drawdown). 

After the close, AMD, AMZN, ASH, AX, BXP, CACC, FANG, EXR, FBIN, INVH, LFUS, LPLA, MCY, MDLZ, OI, PINS, PK, QUAD, SYK, UMBF, and UNM all reported beats on both the revenue and earnings lines.  Meanwhile, AMCR, CC, CLX, EIX, EQH, HI, MATX, NGD, RNR, RSG, SWKS, SON, and SMCI missed on revenue while beating on earnings.  On the other side, CHK, PRU, and PSA beat on revenue while missing on earnings.  However, CZR, LEG, LUMN, OKE, RYI, SBUX, and WERN missed on both the top and bottom lines.  It is worth noting that AMZN and SWKS lowered their guidance.  At the same time, PINS and SMCI raised their forward guidance.  It is also worth noting that PSNY announced it will delay its earnings reports for a second time.

In stock news, on Tuesday, TLSA announced plans to layoff more of the recently announced 10,000 workers.  This time, CEO Musk fired two senior executives and all of the 500 people reporting up through one of them (the entire “Supercharger group”).  The other senior executive fired was the Director of the New Vehicles program.  At the same time, WMT rolled out a new “house” grocery brand (BetterGoods) while also saying it will close all of its health-care clinics and close its telehealth operation as it gets out of the healthcare field.  Later, CMCSA announced it will raise prices on it Peacock streaming service by $2/month ahead of what it expects to be a large audience draw, the Summer Olympics.  Meanwhile, GOOGL agreed to pay NWSA $5 million to $6 million annually to develop new AI-related content and products with the company (owner of the Wall Street Journal).  Later, Reuters reported that sources tell it that the PARA ousting (“stepping down”) of former CEO Bakish will cost the company “North of $50 million.”

In stock legal and governmental news, on Tuesday BRKB subsidiary PacifiCorp was hit with $30 billion in new claims (from 1,000 plaintiffs) for damages caused by 2020 wildfires started by the utility’s equipment.  (This is four times the amount the company had projected.)  This is on top of the $735 million that PacifiCorp had paid in claims up through February and a $90 million judgement the company lost to 17 victims in a case last year for gross negligence during a windstorm.  Later, the FTC said it will crack down on what it is calling “junk patents” associated with 20 brand-name drugs.  These “junk patents” are minor variations from existing patents that extend price protections.  (NVO’s wildly popular weight loss drugs Ozempic and Wegovy are the major drugs impacted, but they are protected by “legitimate” patents.) 

Elsewhere, the US Dept. of Justice moved to reclassify marijuana out of “schedule three.”  That drug is currently classified the same as heroin and LSD.  The new classification would put it in a group with ketamine and Tylenol with codeine.  Cannabis stocks like TLRY, TCNNF, ACB, CGC, FLGC, and other soared on the news.  Later, the 50 GOOGL workers fired for protesting the company cloud computing contract with the Israeli military and other government departments filed a complaint with the NRLB alleging that the firing was illegal.  At the same time, IBM won its appeal of a $1.6 billion judgement from a suit filed by BMC Software (owned by KKR).  The case will return to the district court after being instructed on how to determine liability.  Later, the first trial over GSK’s drug Zantac potentially causing cancer began in Chicago with jury selection. In late-breaking news this morning, JNJ announced it had reached a $6.5 billion settlement ending 99% of the tens of thousands of “talc-caused cancer” lawsuits the company had pending.

Overnight, Asian markets were mostly in the red with only four of 12 exchanges green.  Australia (-1.23%), Shenzhen (-0.90%), and New Zealand (-0.75%) led the region lower.  Meanwhile, in Europe, we see a sea of red with two bourses, led by Norway (+0.24%), in the green at midday.  The CAC (-0.99%), DAX (-1.03%), and FTSE (+0.02%) lead the region, as always, on volume in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing to a red start to the day.  The DIA implies a -0.23% open, the SPY is implying a -0.40% open, and the QQQ implies a -0.65% open at this hour.  At the same time, 10-year bond yields are at 4.684% and Oil (WTI) is down 1.46% to $80.72 per barrel in early trading.

The major economic news scheduled for Wednesday includes the ADP Nonfarm Employment Change (8:15 a.m.), April S&P Global Mfg. PMI (9:45 a.m.), March Construction Spending, April ISM Mfg. Employment, April ISM Mfg. PMI, April ISM Mfg. Price Index, and March JOLTs Job Openings (all at 10 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.), FOMC Rate Decision and FOMC Statement (both at 2 p.m.), and Fed Chair Press Conference (2:30 p.m.).  The major earnings reports scheduled for before the open include AER, ARCC, ADP, AVA, AVT, AXTA, GOLD, BLCO, CG, CRS, CDW, COR, CVE, CENX, GIB, CHEF, CLH, CNDT, CVS, DD, ENTG, ESAB, EL, EEFT, FLEX, FTS, GRMN, GTES, GNRC, GSK, GPN, IDXX, NSP, JCI, KKR, KHC, DRS, LTH, MAR, MA, NBIX, NCLH, OGE, PSN, PFE, PPL, SMG, SLGN, SR, STGW, TRN, TTMI, UTHR, VRSK, WEC, WLK, and YUM.  Then, after the close, ACHC, AFL, ALB, ALL, AFG, AIG, AWK, ANSS, CAR, AXS, BALY, BBSI, BZH, BV, CHRW, CWH, CVNA, CF, CMPR, CTSH, CODI, CTVA, CW, DLX, DVN, DASH, EBAY, ENSG, NVST, ETSY, ES, EXPI, FLSR, FNV, GFL, GIL, THG, HLF, HST, JAZZ, KMPR, MRO, MKL, MET, MGM, MAA, MOS, MUSA, MYRG, PGRE, PTEN, PAYC, CNXN, PTC, QRVO, QCOM, RHP, SIGI, SCI, SFM, SUM, TTEK, TWI, TROX, UGI, VMI, VTR, VICI, ZG, and Z report.  

In economic news later this week, on Thursday, we get March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, March Factory Orders, and Fed Balance Sheet.  Finally, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Thursday, we hear from AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, ZTS, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC.  Finally, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, AER, ARCC, ADP, AXTA, BIP, CG, GIB, CHEF, DD, ENTG, ESAB, EL, EEFT, GRMN, GNRC, GSK, GPN, KKR, LTH, PSN, PFE, SMG, SHOO, TRN, UTHR, VRSK, and WLK all reported beats on both the revenue and earnings lines.  Meanwhile, GOLD, COR, CVE, FTS, IDXX, JCI, KHC, NYCB, SLGN, and WEC all missed on revenue while beating on earnings.  On the other side, AVA, BLCO, MAR, SITE, and SR beat on revenue while missing on earnings.  However, CDW, CVS, NBIX, OGE, and YUM missed on both the top and bottom lines.  It is worth noting that AXTA raised its guidance while CVS and ENTG lowered forward guidance.

In miscellaneous news, on Tuesday, Oil (WTI) prices closed lower on record US oil production.  US crude output popped by the most since October 2021, reaching 13.15 million barrels per day in February (up from 12.58 million barrels per day in January).  In other oil-related news, Israeli PM Netanyahu vowed this military will continue attacks on Rafah (the last standing city in the Gaza strip) regardless of whether a cease-fire deal is reached or not.  (I’m just a country boy, but a ceasefire without a halt in firing doesn’t seem like much of a ceasefire.)  Netanyahu also vowed to invade Rafa to “finish the job” sooner or later.  (It may be worth noting that Israel has been building tents to house 500k in the desert outside Rafa, presumably as a relocation site for during an invasion.)  In other energy news, the G7 Energy Ministers agreed Tuesday to halt the use of coal in power generation in the first half of the 2030s (10 years).  (In the US, about 15.3% of electricity is currently generated by burning coal.  For the overall G7, 15% of electricity is generated from coal today.)

In other news, the US Labor Dept. urged all western companies to exit from China’s Xinjiang region (it’s a province-sized area but does not have province status).  The reason is that the Labor Dept. says China continues to operate internment camps and forced labor camps in that region focused largely on Uyghurs and other Muslim minority groups.  China made it illegal to conduct human rights audits in that region, although they deny all allegations of abuses or forced labor.  Late in the day, the Insurance Institute for Highway Safety specifically cited AMZN and FDX as needing to implement more safety technologies in their delivery vans.  The group said delivery vans were involved in 935,000 police-reported crashes in 2023, including 98,000 crashes that involved injuries.  The group (funded by auto insurers) said many of the crashes could have been prevented by technologies available in cars like “automated emergency braking” and “collision warning technologies.”

With that background, it looks as if the Bears are looking to follow through on Tuesday’s move, at least early. All three major index ETFs gapped down to start the premarket but have put in indecisive Spinning Top type candles since then. The QQQ in particular has pulled away below its T-line, perhaps on AMD which reported in line and moved guidance as expected but that was not enough for overnight markets. In fact, all three major index ETFs are now below their T-line (8ema). So, the short-term trend is now bearish. Meanwhile, the mid-term remains bearish. The longer-term market remains Bullish but under pressure. In terms of extension, the QQQ is the only one of the major index ETFs that could be called too far extended below their T-line. However, the T2122 indicator is now in the upper end of its oversold range. So, both sides have room to run if they can gain the momentum to do so but the Bulls have much more slack to work with. In terms of those 10 big dog tickers, seven of the 10 are in the red with AMD (-6.38%) out front leading the way lower. Keep in mind that today is a Fed day. So, after the open, we may see a “dead money” market until we get volatility about 2 p.m. and then a second jolt of volatility following after 2:30 p.m.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Monday saw a modest gap higher in the markets.  SPY gapped up 0.35%, DIA gapped up 0.22%, and QQQ gapped up 0.51% with TSLA dragging markets higher on China FSD approval news.  From there, all three major index ETFs chopped sideways the entire day, meandering back and forth around that modest gap.  All three ended on an upswing the last 50 minutes.  This action gave us gap-up indecisive candles in all three with a Doji in the SPY and QQQ and more of a white-bodied Spinning Top in the DIA. All three closed above their respective T-lines (8ema).  This happened on well below-average volume in all three major index ETFs.

On the day, eight of the 10 sectors were in the green again with Utilities (+1.44%) way out in front leading the rest of the market higher. At the same time, the only red sectors were Financial Services (-0.12%) and Technology (-0.06%).  Meanwhile, SPY gained 0.35%, DIA gained 0.39%, and QQQ gained 0.41%.  VXX fell 1.71% to close at 13.20 and T2122 climbed but remained in the upper end of its mid-range at 75.00.  10-year bond yields fell to 4.609% and Oil (WTI) dropped 1.31% to close at $82.75 per barrel.  So, Monday was a typical indecisive pre-Fed day.  The TSLA news popped stocks higher at the open.  However, from there it was an all-day meander back-and-forth in and slightly above the opening gap.  At the end of the day, all three major index ETFs were little changed from their opens.

There was no major economic news scheduled for Monday.

After the close, AMKR, ACGL, CLW, FLS, ST, SUI, WELL, WWD, and YUMC all reported beats on both the revenue and earnings lines.  Meanwhile, CNO beat on revenue while missing on earnings.  On the other side, CCK, CWK, ESI, EG, FFIV, NXPI, PARAA, PARA, SBAC, and RIG missed on the revenue line while beating on earnings.  However, CVI and SANM missed on both the top and bottom lines.  It is worth noting that WWD raised its forward guidance.

In stock news, on Monday, UMBF announced a deal to acquire HTLF in a $2 billion all stock deal.  (Analysts expect the deal to create a strong regional bank with operations spanning 13 states.)  Later, Bloomberg reported that KO is gearing up to IPO its $8 billion African bottling operation.  At the same time, Reuters reported that BA tapped the debt market to raise $10 billion after burning through almost $4 billion of cash in Q1 amidst slowing production and sluggish sales.  Later, the CA New Car Dealers Assn. reported TSLA vehicle registrations in CA fell 8% during Q1, the second consecutive quarterly decline in those registrations (sales).  (CA is one of the most important EV markets.)  At the same time, MBGAF (Mercedes), BMWYY, RIVN, and HYMTF (Hyundai) saw increases in EV vehicle registrations.  Later, LUV announced it has launched a “delay compensation” program.  (This was part of the airline’s $140 million settlement with DOT over the airline’s December 2022 holiday debacle.)  The airline said the program actually launched April 16 and it has already heard from thousands of customers seeking compensation for delays.  After the close, PARA announced the widely-expected resignation of CEO Bakish as the board works on a merger/sale to Skydance.  Bakish will be replaced by a triumvirate of internal executives.

In stock legal and governmental news, on Monday, PHG announced it had reached a $1.1 billion settlement (many, many times smaller than the expected $4-$10 billion) to resolve all personal injury claims due to its respiratory devices.  Later, the Financial Times reported that the European Commission is opening an investigation into how META is handling Russian disinformation in political advertising on Facebook and Instagram.  (However, the investigation report is not expected to single out Russia, instead calling the sources “foreign actors.”)  At the same time, US House and Senate negotiators said they had reached a deal to boost air traffic controller staffing. However, the deal will not increase the mandatory airline pilot retirement age.  (Airlines had lobbied to increase the age of mandatory retirement to 67 from the current 65.)  Later, EU antitrust regulators announced that AAPL’s iPad operating system has been designated a “gatekeeper.”  This makes AAPL subject to the EU’s recent landmark DMA legislation for iPad users in addition to phone and Mac users.  At the same time, the NHTSA announced it is opening a probe into 130k F vehicles equipped with the company’s “hands-free driving” technology BlueCruise after two fatal crashes of those vehicles striking parked cars.  Later, the FCC fined T ($57 million), VZ ($47 million), and TMUS ($92 million) for illegally sharing phone service customer location data.  The TMUS fine included $80 million for T-Mobile and $12 million for Sprint.  The wireless carriers protested and said they would appeal.  At the same time, a US District Judge threw out challenges by BMY and JNJ, which had filed lawsuits challenging the law that requires them to negotiate prices with Medicare.  (This was the fourth federal judge to rule in favor of the Biden administration requirement that pharma companies negotiate price with Medicare in the same way it negotiates with insurers and foreign market entities.  The conservative 5^th-circuit Court of Appeals will hear an pharma trade group appeal to revive suits to challenge the law later this week.)

Overnight, Asian markets were mixed but leaned toward the green.  Japan (+1.24%) was by far the biggest mover in the region followed by Shenzhen (-0.90%) and the rest of the region was at least a half of a percent closer to even on the day.  In Europe, we see a similar mixed market leaning slightly to the red side with seven of the 15 bourses in the green.  Once again, the CAC (-0.04%), DAX (-0.33%), and FTSE (+0.59%) lead the region by far on volume in early afternoon trade. In the US, as of 7:30 a.m., Futures are pointing toward a start just on the red side of flat.  The DIA implies a -0.04% open, the SPY is implying a -0.10% open, and the QQQ implies a -0.18% open at this hour.  At the same time, 10-year bond yields are back up to 4.626% and Oil (WTI) is up four-tenths of a percent to $82.97 per barrel in early trading.

The major economic news scheduled for Tuesday includes Q1 Employment Cost Index (8:30 a.m.), Chicago PMI (9:45 a.m.), Conf. Board Consumer Confidence (10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include MMM, APD, ATI, AEP, AMT, ARCB, ADM, BGC, EAT, CNP, KO, GLW, DAN, ETN, ECL, LLY, EPD, FELE, IT, GEHC, GPK, HSBC, HUBB, ITW, INCY, KBR, LEA, LDOS, MPC, MLM, MCD, MLCO, TAP, MPLX, NOG, OMF, PCAR, PYPL, PAG, PNM, PEG, QSR, RITM, SIRI, STLA, SCL, SYY, TMHC, THC, TKR, TT, and UFPI.  Then, after the close, ABRA, AMD, AMZN, AMCR, ASH, EQH, BXP, CZR, CC, CHK, CLX, FANG, EIX, EXR, FBIN, HI, INVH, LEG, LFUS, LPLA, LUMN, MATX, MCY, MDLZ, NGD, OI, OKE, PK, PINS, PSNY, PRU, PSA, QUAD, RNR, RSG, RYI, SWKS, SBUX, SYK, SMCI, UNM, and WERN report. 

In economic news later this week, on Wednesday, ADP Nonfarm Employment Change, March Construction Spending, April S&P Global Mfg. PMI, ISM Mfg. Employment, ISM Mfg. PMI, ISM Mfg. Price Index, March JOLTs Job Openings, EIA Weekly Crude Oil Inventories, FOMC Rate Decision, FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, March Factory Orders, and Fed Balance Sheet.  Finally, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Wednesday, AER, ARCC, ADP, AVA, AVT, AXTA, GOLD, BLCO, CG, CRS, CDW, COR, CVE, CENX, GIB, CHEF, CLH, CNDT, CVS, DD, ENTG, ESAB, EL, EEFT, FLEX, FTS, GRMN, GTES, GNRC, GSK, GPN, IDXX, NSP, JCI, KKR, KHC, DRS, LTH, MAR, MA, NBIX, NCLH, OGE, PSN, PFE, PPL, SMG, SLGN, SR, STGW, TRN, TTMI, UTHR, VRSK, WEC, WLK, YUM, ACHC, AFL, ALB, ALL, AFG, AIG, AWK, ANSS, CAR, AXS, BALY, BBSI, BZH, BV, CHRW, CWH, CVNA, CF, CMPR, CTSH, CODI, CTVA, CW, DLX, DVN, DASH, EBAY, ENSG, NVST, ETSY, ES, EXPI, FLSR, FNV, GFL, GIL, THG, HLF, HST, JAZZ, KMPR, MRO, MKL, MET, MGM, MAA, MOS, MUSA, MYRG, PGRE, PTEN, PAYC, CNXN, PTC, QRVO, QCOM, RHP, SIGI, SCI, SFM, SUM, TTEK, TWI, TROX, UGI, VMI, VTR, VICI, ZG, and Z report.  On Thursday, we hear from AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, ZTS, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC.  Finally, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, MMM, ATI, AMT, EAT, KO, ETN, ECL, EPD, IT, HUBB, KBR, LEA, LDOS, LKNCY, MPC, TAP, OMF, PYPL, QSR, RITM, SIRI, TMHC, THC, TKR, TT, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, APD, ADM, CNP, GLW, LLY, GEHC, GPK, MLM, and SCL all missed on revenue while beating on earnings.  On the other side, ARCB, DAN, and PEG beat on revenue while missing on earnings.  However, AEP, INCY, MCD, MPLX, PAG, and PNM all missed on both the top and bottom lines.  It is worth noting that KO, LLY, LDOS, and TMHC all raised their forward guidance.

In geopolitical news, on Monday, the Yemeni Houthi rebels fired missiles at a British-owned, Panamanian-flagged ship in the Red Sea.  At least one missile struck the vessel, causing unknown damage.  At the same time, the Houthi fired three missiles at a Malta-flagged container ship which was in the Gulf of Aden travelling from Djibouti to Saudi Arabia.  This comes after the Houthi shot down a US military MQ-9 Reaper drone on Saturday.  In short, the Houthi threat to Red Sea and Suez Canal merchant traffic has ticked up the last few days.

In miscellaneous news, on Monday S&P reported that margins shrank at all five of China’s top banks in Q1.  This came as those banks are under pressure, supporting weak property developers while new loan demand is weak.  Elsewhere in Asia, the Japanese Yen surged Monday on speculation that the Bank of Japan will intervene to support the currency, which was at a 34-year low versus the US Dollar.  Ban in the US, the Philly Fed released data Monday showing that only one in 50 employees changed employers in March (going directly from one employer to another).  This is near the historic lows of 2020 and 2010-2011.  (This suggests employees may be unsure of the job market and headhunting firms are less active.  Both potential forerunners of a weakening labor market…which is what the Fed is looking to cause with high rates.)

With that background, it looks as if the markets are opening indecisive and just on the red side of flat. QQQ is showing us the largest premarket candle body and its still just a small, black-body, Spinning Top candle. The two large cap index ETFs are tru Doji at this point. All three major index ETFs remain above their T-line (8ema), although the DIA is just barely so. So, the short-term trend is bullish but under pressure. Meanwhile, the mid-term remains bearish but under pressure from Bulls. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. Therefore, in general we can say we have a choppy, undecided market. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is in its mid-range, although now at the top end. So, both sides have room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, seven of the 10 are in the red with TSLA (-1.95%) out front leading the way lower. Keep in mind that we’ve seen a lot of whipsaw lately. So, be careful not to chase a gap. Also remember that this is a Fed week and the last day of April, meaning we’ll get April Jobs data on Friday as well as a ton of earnings over the week. There will be a tendency to “wait and see” and a ton of ammunition for over-reaction on news this week. Just be careful.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

On Friday, markets diverged at the open.  SPY gapped up 0.60%, QQQ gapped up 0.77%, but DIA opened 0.03% lower.  From there, all three major index ETFs saw some follow-through, with DIA rallying until 10:15 a.m. and then meandering sideways the rest of the day.  Meanwhile, SPY and QQQ continued their rally until about 1:45 p.m. before starting their own sideways meanders for the remainder of the session. This action gave us white-bodied candles in all three major index ETFs.  SPY printed a Spinning Top type crossing back above its T-line (8ema).  QQQ could be called a fat body Spinning Top that also gapped up above, retested and stayed above its T-line.  DIA had the weakest candle, with a larger upper wick, but also crossed back above its T-line and closed just a few cents above.  This all happened on below-average volume in all three.

On the day, eight of the 10 sectors were in the green with Technology (+2.14%) way out in front (by more than one percent) leading the rest of the market higher.  At the same time, Utilities (-0.78%) lagged far behind the other sectors.  Meanwhile, SPY gained 0.95%, DIA gained 0.36%, and QQQ gained 1.54%.  VXX fell another 3.24% to close at 13.43 and T2122 climbed but remained in its mid-range at 61.21.  10-year bond yields rose to 4.663% and Oil (WTI) was just on the green side of flat to close at $83.66 per barrel.  So, Friday, the market thumbed its nose at conventional wisdom and took the PCE reading as Bullish.  Or perhaps traders just ignored that data while focusing on strong earnings from MSFT and a great report (a beat), first-ever dividend, and raised forward guidance from GOOGL.  In either case, it was the Bulls’ Day and ended the strongest week for the markets (SPY and QQQ) since November.

The major economic news scheduled for Friday included March Core PCE Index Year-on-Year, which was flat at 2.8% (higher than the forecast 2.6% but in-line with the February 2.8% value).  On a Month-on-Month basis the March Core PCE Price Index was flat as expected at +0.3% (compared to a +0.3% forecast and prior reading).  On the headline number, March PCE Price Index Year-on-Year was hotter than predicted at +2.7% (versus a forecast of +2.6% but up two ticks from February’s +2.5%).  For the Month-on-Month basis, the PCE Price Index was flat, as predicted and seen the prior month, at +0.3%.  At the same time, March Personal Spending remained flat at +0.8% (compared to a forecast of +0.6% and a February reading of +0.8%).  Later, Michigan Consumer Sentiment was down to 77.2 (versus a 77.8 forecast and the previous value of 79.4).  At the same time, Michigan Consumer Expectations were also low at 76.0 (compared to a 77.0 forecast and a previous value of 77.4).  In terms of forward-looking, the Michigan 1-Year Inflation Expectation if up to 3.2% (versus a forecast of 3.1% and well up from the prior +2.9% value).  On the longer-term, the Michigan 5-Year Inflation Expectations are +3.0% (in-line with the forecast of +3.0% but up two ticks from the previous +2.8% reading).

In stock news, on Friday, SBUX and US worker’s union met for contract negotiations.  In other labor news, Reuters reported that MBGAF (Daimler Truck) faces an imminent strike at six US facilities by 7,300 UAW workers if a deal was not reached by 10 p.m. Friday. At the same time, the staff of a Las Vegas CVS facility voted to join a pharmacy union by an overwhelming 87% vote. (The was the first CVS facility to unionize.)  Later, GM announced it is closing manufacturing operations in Columbia and Ecuador. With plans to lay off 850 workers in Columbia and an unspecified number in Ecuador.  At the same time, AAL announced it will have to adjust flights and routes in the second half to adjust for BA 787 jet delivery delays.  (This comes one day after LUV said it will need to shut down operations at some airports for the same reason.)  Later, GOOGL filed a motion with a federal court in VA, asking the court to reject the US government lawsuit accusing it of anticompetitive online advertising practices.  At the same time, LHX confirmed earlier reports that the company will cut 5% of its workforce in a bid to streamline.  After the close, Bloomberg reported that AAPL has re-opened its talks with OpenAI in a bid to catch up to its peers in the AI race.  The talks are aimed toward brining generative AI features to iPhones.  (AAPL is also in talks with GOOGL to license its AI technology named Gemini.)  Late Friday evening, MBGAF did reach a new contract agreement with the UAW.  (Daimler workers will get an immediate 10% raise, with an additional 3% increase in 3-months, then at 6-months, and finally at 12-months after ratification.  There will also be additional cost-of-living increases and profit-sharing. 

In stock legal and governmental news, on Friday, the BRKB subsidiary real estate brokerage reached a $250 million settlement on antitrust litigation related to how realtors are paid.  Later, the NHTSA announced it is investigating TSLA’s 2023 recall related to “Full Self Driving” software, after 20 crashes attributed to that feature have been reported after the software patch.  (The hypothesis is that TSLA’s system meant to ensure the driver remains attentive and in control of the vehicle is lax or faulty.)  The re4call covered 2 million TSLA vehicles (every one ever sold).  Later, by a 2-1 vote a federal appeals court revived a NY state law requiring the provision of affordable high-speed internet to low-income families.  (T, VZ, and industry trade groups had sued to block the 2021 law and r in the original trial.)  At the same time, FAA investigators are looking into an incident Friday where a DAL jet had its emergency slide fall off the plane after takeoff from NY.  The jet involved was a BA 767 enroute to Los Angeles.  Later, the FDIC announced it had sold seized bank FRBK (closed by PA state banking regulators Thursday night) to FULT in order to protect depositors and continue bank operations.   On Saturday.  MBGAF (Mercedes-Benz) announced that the US Dept. of Justice has closed its probe into the company over emissions test manipulation on its diesel engines.

Overnight, Asian markets were green across the board.  Shenzhen (+2.22%), Taiwan (+1.86%), and South Korea (+1.17%) led the region higher.  In Europe, we see a similar picture taking shape with only three of 15 bourses in red at midday.  (Greece at -0.44% was the only appreciable red bourse.)  The CAC (+0.12%), DAX (-0.04%), and FTSE (+0.48%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a green start to the day.  The DIA implies a +0.16% open, the SPY is implying a +0.23% open, and the QQQ implies a +0.33% open at this hour.  At the same time, 10-year bonds are down to 4.624% and Oil (WTI) is flat at $83.88 per barrel in early trading.

There is no major economic news scheduled for Monday.  The major earnings reports scheduled for before the open include ARLP, BBVA, DQ, BEN, HNI, JKS, ON, RVTY, PHG, and SOFI.  Then, after the close, AMKR, ACGL, CNO, CCK, CWK, CVI, ESI, EG, FFIV, FLS, LOGI, NXPI, PARAA, PARA, SANM, SBAC, ST, SUI, RIG, WELL, WWD, and YUMC report. 

In economic news later this week, on Tuesday we get Q1 Employment Cost Index, Chicago PMI, Conf. Board Consumer Confidence, and API Weekly Crude Oil Stocks.  Then on Wednesday, ADP Nonfarm Employment Change, March Construction Spending, April S&P Global Mfg. PMI, ISM Mfg. Employment, ISM Mfg. PMI, ISM Mfg. Price Index, March JOLTs Job Openings, EIA Weekly Crude Oil Inventories, FOMC Rate Decision, FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get March Exports, March Imports, March Trade Balance, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 Nonfarm Productivity, Q1 Unit Labor Cost, March Factory Orders, and Fed Balance Sheet.  Finally, on Friday, April Avg. Hourly Earnings, April Nonfarm Payrolls, April Private Nonfarm Payrolls, April Participation Rate, April Unemployment Rate, April S&P Global Services PMI, April S&P Global Composite PMI, ISM Non-Mfg. Employment, ISM Non-Mfg. PMI, ISM Non-Mfg. PMI Price Index, and Fed Member Williams speaks.

In terms of earnings reports later this week, on Tuesday, we hear from MMM, APD, ATI, AEP, AMT, ARCB, ADM, BGC, EAT, CNP, KO, GLW, DAN, ETN, ECL, LLY, EPD, FELE, IT, GEHC, GPK, HSBC, HUBB, ITW, INCY, KBR, LEA, LDOS, MPC, MLM, MCD, MLCO, TAP, MPLX, NOG, OMF, PCAR, PYPL, PAG, PNM, PEG, QSR, RITM, SIRI, STLA, SCL, SYY, TMHC, THC, TKR, TT, UFPI, ABRA, AMD, AMZN, AMCR, ASH, EQH, BXP, CZR, CC, CHK, CLX, FANG, EIX, EXR, FBIN, HI, INVH, LEG, LFUS, LPLA, LUMN, MATX, MCY, MDLZ, NGD, OI, OKE, PK, PINS, PSNY, PRU, PSA, QUAD, RNR, RSG, RYI, SWKS, SBUX, SYK, SMCI, UNM, and WERN.  Then on Wednesday, AER, ARCC, ADP, AVA, AVT, AXTA, GOLD, BLCO, CG, CRS, CDW, COR, CVE, CENX, GIB, CHEF, CLH, CNDT, CVS, DD, ENTG, ESAB, EL, EEFT, FLEX, FTS, GRMN, GTES, GNRC, GSK, GPN, IDXX, NSP, JCI, KKR, KHC, DRS, LTH, MAR, MA, NBIX, NCLH, OGE, PSN, PFE, PPL, SMG, SLGN, SR, STGW, TRN, TTMI, UTHR, VRSK, WEC, WLK, YUM, ACHC, AFL, ALB, ALL, AFG, AIG, AWK, ANSS, CAR, AXS, BALY, BBSI, BZH, BV, CHRW, CWH, CVNA, CF, CMPR, CTSH, CODI, CTVA, CW, DLX, DVN, DASH, EBAY, ENSG, NVST, ETSY, ES, EXPI, FLSR, FNV, GFL, GIL, THG, HLF, HST, JAZZ, KMPR, MRO, MKL, MET, MGM, MAA, MOS, MUSA, MYRG, PGRE, PTEN, PAYC, CNXN, PTC, QRVO, QCOM, RHP, SIGI, SCI, SFM, SUM, TTEK, TWI, TROX, UGI, VMI, VTR, VICI, ZG, and Z report.  On Thursday, we hear from AGCO, ATUS, AME, APA, APG, APO, APTV, MT, ARES, ARW, BHC, BAX, BCE, BDX, BDC, BWA, BTSG, BRKR, CNQ, CAH, CHD, CI, CNK, CNHI, CIGI, COP, CMI, XRAY, DBD, D, DRVN, DNB, ENOV, NVRI, EXC, ULCC, HWM, HII, NSIT, ICE, IQV, IRM, ITRI, ITT, JHG, K, KTB, LNC, LIN, MCO, MUR, NFG, NVO, ONEW, OGN, PH, PATK, PBF, BTU, PTON, PENN, PNW, PBI, PWR, REGN, RXO, SABR, SNDR, SEE, SHEL, SO, SWK, TRGP, TFX, TRI, UPBD, VAL, VSTS, VMC, W, WEN, WCC, WRK, XYL, ZBH, ZTS, AES, ALHC, AEE, AMGN, AAPL, ACA, BECN, SQ, BKNG, BFAM, CIVI, COIN, ED, CTRA, DVA, DLR, DKNG, EOG, WTRG, EXPE, FND, FTNT, GDDY, HOLX, HUN, ILMN, IR, LYV, MTZ, MODV, MNST, MSI, ZEUS, OTEX, OPEN, OEC, PTVE, PXD, POST, RGA, REZI, RKT, RYAN, SEM, SM, SWN, TXRH, X, and WSC.  Finally, on Friday, ADNT, AXL, AMRX, BEPC, BEP, CBOE, CBRE, GTLS, LNG, CRBG, FLR, FYBR, GPRE, HSY, KOP, MGA, NMRK, NVT, PAA, PAGP, TRP, TAC, TRMB, and XPO report.

So far this morning, ARLP, DPZ, HNI, RVTY, and SOFI all reported beats on both the revenue and earnings lines.  Meanwhile, JKS and PHG missed on revenue while beating on earnings.  Unfortunately, DQ missed on both the top and bottom lines.

In miscellaneous news, on Saturday, the China International Capital Corp (one of China’s largest banks) announced it had cut the base pay of 2,000 investment bankers by 25%.  This comes after the bank cut banker bonuses by 40% last year.  On Sunday, TSLA CEO Musk travelled to China to lobby their government for approval to roll out Full Self Driving in that country.  Musk gained approval to remove restrictions (such as automated lane changes) from TSLA vehicles in China, despite safety concerns. Reports are that the large amount of data collected by the cars will be held in China (the key hurdle was approval for “data security”) and the cars will use BIDU’s mapping technology.

With that background, it looks as if the Bulls are gapping all three major index ETFs higher in the premarket. However, all three are also putting in small, indecisive candles since that higher open in the early session. SPY, DIA, and QQQ are all back above their T-line (8ema) at this moment. So, the short-term trend is bullish but not strongly so. Meanwhile, the mid-term remains bearish but under pressure from Bulls. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is in the center of its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, six of the 10 are in the green with only GOOGL (-1.54%) and META (-1.25%) appreciably lower so far. MEanwhile, TSLA (+11.46%) is soaring on the China FSD approval while that biggest dog (NVDA +0.17%) is just on the green side of flat. Keep in mind that we’ve seen a lot of whipsaw lately. So, be careful not to chase a gap. Also remember that this is a Fed week and end of April, meaning we’ll get April Jobs data on Friday as well as a ton of earnings over the week. There will be a ton of ammunition for “wait and see” and over-reaction on news this week. Be careful.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 diverged at the open Wednesday.  SPY opened 0.18% higher, DIA opened down just 0.04%, and QQQ gapped up 0.71%.  However, at that point all three major index ETFs sold off modestly with DIA reaching its low of day at 11:50 a.m., QQQ reaching that low level by 12:35 p.m., and SPY doing so at 12:50 p.m.  From there, the SPY and QQQ meandered back-and-forth between the open and lows the rest of the day.  DIA did something similar, but rallied to a new high of the day at 2 p.m.  This action gave us black-bodied, indecisive, Spinning Top candles in all three major index ETFs.  QQQ crossed above its T-line (8ema), so all three closed above their T-lines after a retest from above during the day.  This all happened on below-average volume in all three, with well-below-average volume on the SPY.

On the day, six of the 10 sectors were in the red with Industrials (-0.72%) out in front leading markets lower.  At the same time, Consumer Defensive (+0.49%) and Utilities (+0.42%) held up better than the other sectors.  Meanwhile, SPY lost 0.04%, DIA lost 0.15%, and QQQ gained 0.34%.  VXX fell another 1.02% to close at 13.57 and T2122 climbed again dropped back to the center of its mid-range at 51.16.  10-year bond yields rose to 4.646% and Oil (WTI) was down 0.56% to close at $82.89 per barrel.  So, Wednesday was an indecisive day.  It could be seen as rest after a couple decent days of gained or maybe as the relief rally petering out.   bullish day with DIA breaking up out of its consolidation while SPY and DIA turned higher.  However, the downtrend has only been broken in the DIA with the two broader index ETFs still below that falling line. None of the three has put in a higher low yet.  So, for now this must be considered a relief rally at the moment.

The major economic news scheduled for Wednesday included March Core Durable Goods Orders came in lower than expected at +0.2% month-on-month (compared to a forecast of +0.3% but still up from February’s +0.1%). At the same time, March Durable Goods Orders were stronger than predicted at +2.6% month-on-month (versus a +2.5% forecast and well above the February +0.7% value).  Later, Weekly EIA Crude Oil Inventories were far lower than anticipated, drawing down 6.368 million barrels (compared to a +1.600 million forecast and well down from the prior week’s +2.735 million barrels). 

After the close, ALGN, NLY, AR, ASGN, CACI, CCS, CLS, CMG, CHDN, CYH, EHC, F, ICLR, KALU, LRCX, LSTR, MTH, MEOH, META, MOH, ORLY, PLXS, ROL, SLM, SEIC, NOW, STC, TER, TX, TYL, URI, UHS, WCN, WU, and WHR all reported beats on both the revenue and earnings lines.  Meanwhile, AGI, BMRN, CHX, DBOEY, IBM, SNBR, and WM missed on revenue while beating on earnings.  On the other side, CHE, CP, NBR, and RJF all beat on revenue while missing on earnings. Unfortunately, GGG, FAF, KNX, and OII missed on both the top and bottom lines.

In stock news, on NVDA announced it had agreed on a deal to acquire Run:ai a cloud workload management software provider.  (Finances were not released, but reports said the deal was around $700 million.)  At the same time, HUM withdrew its forward guidance, citing disappointing Medicare reimbursement rates (but not mentioning its hack that shut down operations at it CHNG unit).  Later, BAC shareholders rejected a proposal to split the CEO and Chairman roles.  At the same time, LUV flight attendants ratified their new union contract, with 81% voting to approve.  The contract gives them an immediate 22% raise and 3% annual raises until May 2028.  Later, the Wall Street Journal reported that WHR will cut 1,000 jobs globally (out of 59,000 employed).  No timetable was provided.  At the same time, Reuters reported that BX is buying the” Tropical Smoothie Café” restaurant chain in a deal that sources say will be for about $2 billion.  Tropical Smoothie currently has 1,400 cafes.  Later, SPWR announced it was cutting 1,000 jobs in coming weeks, mostly from its direct sales channel, as part of a restructuring.  After the close, Bloomberg reported that BHP is considering a buyout bid for AAUKF.  (AAUKF has a $36.71 billion market cap.)  Also after the close, F disclosed that is lost $1.3 billion on its electric vehicles, which is $132,000 for each of the 10,000 electric vehicles it sold in Q1.  (That 10,000 was down 20% from the number it sold in Q1 2023.) 

In stock legal and governmental news, on Wednesday, the US Dept. of Transportation announced finalized rules requiring upfront disclosure of airline fees and immediate refunds for canceled flights, delayed (more than 12 hours) baggage delivery, and inoperative services.  Later, the US Dept. of Justice announced it will decide in May whether BA violated the agreement (consent decree) the company made to avoid prosecution over the 2018 and 2019 737 MAX crashes.  This came as family members of the crash victim families met with DOJ officials Wednesday to urge prosecution after the FAA and DOT investigations into the mid-air loss of a door plug revealed broad and deep quality issues at BA stemming back to the time of that agreement.  At the same time, Bloomberg reported that the FDIC is in talks with buyers to sell FRBK which was seized in 2023.  Later, the USAF chose two unlisted finalists (General Atomics and Anduril) to compete for its unmanned combat aircraft design, production, and testing.  (This means that BA, LMT, and NOC were eliminated and if they wish to push toward somehow overturning the decision, they would have to foot their own bills for all efforts past today on the project.)  A final choice and production decision is scheduled for 2026.  At the same time, a US appeals court revived a lawsuit against Whole Foods (AMZN) which alleges the company illegally fired an employee for refusing to remove her “Black Lives Matter” facemask during covid restrictions.  The suit alleges she was fired over racism.  The court ruled 3-0 that the company had “arguably deviated” from its internal disciplinary process in firing the worker. After the close, a TSLA shareholder who successfully sued to have CEO Musk’s $56 billion pay package thrown out filed a motion with the Delaware court who made that ruling, asking that the court prevent TSLA from dodging the ruling by moving its headquarters to TX.

Overnight, Asian markets were evenly mixed but leaned to the downside on strength of moves.  Japan (-2.16%), South Korea (-1.76%), and Taiwan (-1.36%) led the region lower.  In Europe, markets are more firmly red at midday with only four of 15 bourses showing gains at the half-way point.  The CAC (-0.93%), DAX (-0.75%), and FTSE (+0.62%) lead the region on volume, as always, in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a gap down to start the day.  DIA implies a -0.58% open, the SPY is implying a -0.68% open, and QQQ implies a -1.04% open at this hour.  At the same time, 10-year bond yields are at 4.65% and Oil (WTI) is just on the green side of flat at $82.92 per barrel in early trading.

The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, and March Retail Inventories (all at 8:30 a.m.), March Pending Home Sales (10 a.m.), and the Fed Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open include AOS, ADT, ALFVY, ALLE, MO, AAL, HOUS, AIT, ARCH, AMBP, ABG, AZN, BFH, BMY, BC, CARR, CAT, CBZ, CX, CHKP, CMS, CMCSA, CFR, DAR, DOV, DOW, DTE, EQNR, FCNCA, FCFS, FCN, GTX, GEV, HOG, HP, HTZ, HES, HON, IP, KDP, KEX, LH, LAZ, LECO, HZO, MRK, NDAQ, NEM, NOC, ORI, OSK, PCG, PHIN, POOL, RS, RCL, SPGI, SNY, SAH, LUV, SRCL, STM, FTI, TECK, TXT, TSCO, TRU, TPH, UNP, VLO, VC, GWW, WST, WEX, WTW, and XEL.  Then, after the close, AEM, AB, ALSN, GOOGL, ATR, AJG, TEAM, AVB, BYD, COF, CSL, CINF, COLM, DXCM, EMN, EW, EGO, ERIE, FE, GILD, GOOG, TV, HIG, HUBG, INTC, JNPR, KLAC, LHX, MSFT, MTX, MHK, NOV, DOC, PFG, RMD, RHI, ROKU, SKX, SKYW, SNAP, SSNC, TMUS, TDOC, TS, TEX, TFII, TBBB, TPC, WDC, WY, and WKC report. 

In economic news later this week, Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Friday, ABBV, AON, ALV, AN, AVTR, BALL, CNC, CHTR, CVX, CL, XOM, FMX, GNTX, HCA, IMO, LYB, NWL, PSX, POR, ROP, SAIA, and TROW report.

So far this morning, ADT, MO, AIT, ARCH, AZN, CHLP, CMCSA, DOV, DOW, EQNR, FCNCA, HOG, HON, KDP, KEX, LH, LAZ, MRK, NEM, NOC, ORI, OSK, RNECY, RCL, SPGI, SNY, SWDBY, FTI, TRU, TPH, and WST all reported beats on both the revenue and earnings lines.  Meanwhile, AOS, ALLE, AMBP, CARR, CAT, CMS, DAR, FCFS, GTX, PCG, SAH, SRCL, VLO, and XEL all missed on the revenue line while beating on earnings.  On the other side, ASX, BFH, BMY, IP, NDAQ, VLY, and WEX beat on revenue while missing on earnings.  Unfortunately, AAL, ABG, BC, CBZ, DTE, HZO, POOL, RS, LUV, STM, TECK, TXT, and VC all missed on both the top and bottom lines.  Notable was BMY, which better have a good story to tell since they had higher than expected revenue but still missed earnings estimates by $6 per share.  It is also with nothing that AIT, RS, RCL, WST, and WEX all raised their guidance.  However, HZO lowered forward guidance.

In miscellaneous news, on Thursday, the CEO of DJT (former Congressman Nunes) complained publicly, urging his former House GOP friends to launch an investigation of short-sellers as “market manipulators.”  While the House has no regulatory power, I suppose it could pass a law banning short sales.  As usual, the threat of being attacked by MAGA types and the hassle of being subpoenaed and testifying is meant to bully short-sellers into not shorting DJT stock in particular.  (We all know some people feel they need to be treated by different rules.)  However, large short-sellers like Citadel called those demands “losers trying to blame someone else for their falling stock price.”  Elsewhere, CT lawmakers advanced the state’s first-in-the-nation “paid sick leave” law.  The 2011 law was revised to overcome legal challenges and it will require employers (down to a single-employee in size) to provide paid sick leave (one hour for every 30 hours worked) by 2027.  While the passage was not technically party line, it was close to being so, with Democrats supporting the law.  Meanwhile, GOP members in both CT houses decried the law as an unfounded mandate on business that will be abused by employees who will “take a day off to go to the beach.”  Finally, the US Chamber of Commerce (and other business groups) sued the FTC over the rules passed Tuesday which ban most types of non-compete clauses in employment contracts.  As expected, the suit was filed in the Eastern district of TX, where all the Federal judges are extremely conservative.

With that background, it looks as if the bears have control of the market early as all three major index ETFs gapped lower to start the premarket. However, they have reacted a bit differently since then. DIA is giving us a decent sized black candle since that gap-down premarket open. However, SPY is very flat with no body on its candle and QQQ is giving a modest white body candle after the gap-down start to the early session. SPY and QQQ are back below their T-line (8ema) while DIA is retesting that level as I write. So, the short-term trend is uncertain to bearish. Meanwhile, the mid-term remains bearish but under pressure from Bulls. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is back in the center of its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, six of the 10 are in the red with META (-14.63%) leading markets lower on bad forward guidance after an earnings beat. However, it is worth noting that the two biggest dogs, NVDA (+0.78%) and TSLA (+0.31%) are both on the green side and although META has traded more dollar volume in premarket, it will not trade more than those two over the day. With that all said, continue to be careful. We’ve see a lot of those widowmaker reversales lately.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 saw another gap higher to start the day.  SPY gapped up 0.43%, DIA gapped up 0.37%, and QQQ gapped up 0.50%.  From three, all three major index ETFs gave us follow through, which was stronger for 90 minutes and then slowed, but continued higher until 2:45 p.m.  From there, all three took profits very modestly into the close, to end the day not far below the highs.  This action gave us gap-up, white bodied candles with modest upper wicks in all three.  SPY crossed back above its T-line (8ema) while QQQ retested its own from below but came up just short of crossing.  DIA remained up above its 8ema.  If you squint, you might call the QQQ a Morning Star like pattern.  This all happened on less-than-average volume in all three major index ETFs.

On the day, all 10 sectors were in the green with Technology (+1.96%) well out in front, followed by Healthcare and Consumer Cyclical (both +1.53%) leading markets higher. At the same time, SPY gained 1.19%, DIA gained 0.69%, and QQQ gained 1.56%. VXX fell another 3.92% to close at 13.71 and T2122 climbed again toward the upper end of its mid-range at 70.87. 10-year bond yields fell to 4.602% and Oil (WTI) was up 1.72% to close at $83.31 per barrel.  So, Tuesday was a bullish day with DIA breaking up out of its consolidation while SPY and DIA turned higher.  However, the downtrend has only been broken in the DIA with the two broader index ETFs still below that falling line. None of the three has put in a higher low yet.  So, for now this must be considered a relief rally at the moment.

The major economic news scheduled for Tuesday included Building Permits, which came in stronger than expected at 1.467 million (compared to a forecast of 1.458 million but still down from the March reading of 1.524 million).  Later, S&P Global Mfg. PMI was lower than predicted at 49.9 (versus a 52.0 forecast and a March value of 51.9). At the same time, S&P Global Services PMI also came in low at 50.9 (compared to a forecast of 52.0 and a March 51.7 value).  This gave us an S&P Global Composite PMI of 50.9 that was down from March’s 52.1 reading.  Later, March New Home Sales were a bit better than anticipated at 693k (versus a 668k forecast and a 637k February value).  Finally, after the close, API Weekly Crude Oil Stocks showed an unexpected drawdown of 3.230 million barrels (compared to a forecast calling for an increase of 1.800 million barrels and the prior week’s 4.090-million-barrel increase).

After the close, BKR, CNI, CB, CSGP, EWBC, ENVA, EQR, MTDR, RUSHA, LRN, TXN, VLTO, V, WFRD, and WFG all reported beats on both the revenue and earnings lines.  Meanwhile, AGR, EQT, IEX, MAT, RRC, STX, STLD, all missed on revenue while beating on earnings.  On the other side, HA beat on revenue while missing on earnings.  Unfortunately, TSLA missed big (the steepest revenue decline since 2012) on both the top and bottom lines.  However, the master marketer Musk did immediately promise things for next year that made the stock soar. It is worth noting that LRN raised its forward guidance.

In stock news, on Tuesday, GOOGL announced it will invest $640 million in a new data center in Netherlands.  At the same time, Reuters reported that FSRN may file for bankruptcy sometime in the next 30 days if it is unable to get enough relief from creditors or otherwise raise capital. Later, SPWR announced that its previous financials should not be relied upon and it will need to restate some 2022 and 2023 financial statements.  At the same time, LHX announced it will cut 5% of its workforce during 2024 (about 2,500 employees) as part of a cost-savings push.  Later, JDSPY agreed to buy HIBB for $1.08 billion ($87.50/share, almost a 21% premium on Monday’s close).  Meanwhile, protest organizers say that GOOGL increased the number of employees fired over last week’s protests (over a deal with the Israeli military), bringing the total to 50.  At the same time, TLSA said it will lay off 6,020 employees (3,322 in CA and the rest in TX).  Later, the Wall Street Journal, reported that IBM is close to closing a deal to buy HCP.  At the same time, MSFT announced it had launched a “lightweight AI model” that will be more cost-effective for customers with more limited requirements. 

Elsewhere, SPR announced that it had reached a deal with BA and will receive $425 million in advanced payments to give it the capital to address higher inventories due to the slowdown of BA production amidst quality probes and concerns.  Later, TSLA said it will introduce “new models” by early 2025, which will include lower-cost vehicles to better compete.  (TSLA stock soared in after-hours trading on the news.)  Also after the close, SQ announced it is expanding its Bitcoin mining operation by developing its own mining system.  (Previously, SQ had just designed Bitcoin mining chips.)

In stock legal and governmental news, on Tuesday, the US Supreme Court heard the arguments on SBUX appeal against lower court rulings that it violated employee rights and must reinstate union organizing employees the company fired in retaliation for their union organization.  (Questioning by the Justices seemed to indicate the Conservative super-majority sides with the company and wants to rule against the NRLB…or any other agency…can dictate to companies.)  Later, in Canada, the merger of US-based BG with Viterra is facing pushback from the country’s Competition Bureau on anti-trust concerns.  At the same time, Bloomberg reported that JPM, C, and BAC are under investigation by the CFTC related to forcing would-be whistleblowers from speaking out by threatening civil penalties under company NDA policies.  In unrelated news, the FTC approved a ban on common NDA agreements required by companies preventing employees from joining or launching firms the company deems to be competitors.  (The rule will take effect in August and business groups have said they will sue to stop the rule.)  Later, Reuters reported that the FAA has opened an investigation into BA for having retaliated against two employees who had insisted (in 2022) that the company re-evaluate prior engineering work on 777 and 787 jets.  The investigation came after their union filed a complaint with the NRLB.

Overnight, Asian markets were nearly green across the board with the lone exception of Australia (-0.01%) which was barely in the red.  The big bullish move was led by Taiwan (+2.72%), Japan (+2.42%), Hong Kong (+2.21%), and South Korea (+2.01%).  Meanwhile, in Europe, markets are much more mixed at midday with six of 15 bourses in the red.  Still, the CAC (+0.36%), DAX (+0.31%), and FTSE (+0.49%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed start to the day.  DIA implies a -0.05% open, the SPY is implying a +0.16% open, and QQQ implies a +0.58% open at this hour.  At the same time, 10-year bond yields are up to 4.644% and Oil (WTI) is down three-quarters of a percent to $82.75 per barrel in early trading.

The major economic news scheduled for Wednesday include March Core Durable Goods Orders and March Durable Goods Orders (both at 8:30 a.m.), and EIA Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include APH, T, AVY, BIIB, BA, BSX, BG, CME, KOF, CSTM, ETR, FTV, GD, GPI, HAS, HLT, HUM, IPG, LII, LAD, MHO, MAS, COOP, EDU, NSC, ODFL, OTIS, OC, PRG, RCI, SABR, SYF, TEL, TDY, TMO, TNL, UMC, VRT, WAB, and WSO.  Then, after the close, AGI, ALGN, AR, BMRN, CACI, CP, CLS, CCS, CHX, CHE, CMG, CHDN, CYH, EHC, F, GGG, ICLR, IBM, KALU, KNX, LRCX, LSTR, MTH, META, MEOH, MOH, NBR, ORLY, OII, PLXS, RJF, ROL, DEIC, NOW, TER, TX, TYL, URI, UHS, VALE, WCN, WU, WHR, and WM report. 

In economic news later this week, Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet.  Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, we hear from AOS, ADT, ALFVY, ALLE, MO, AAL, HOUS, AIT, ARCH, AMBP, ABG, AZN, BFH, BMY, BC, CARR, CAT, CBZ, CX, CHKP, CMS, CMCSA, CFR, DAR, DOV, DOW, DTE, EQNR, FCNCA, FCFS, FCN, GTX, GEV, HOG, HP, HTZ, HES, HON, IP, KDP, KEX, LH, LAZ, LECO, HZO, MRK, NDAQ, NEM, NOC, ORI, OSK, PCG, PHIN, POOL, RS, RCL, SPGI, SNY, SAH, LUV, SRCL, STM, FTI, TECK, TXT, TSCO, TRU, TPH, UNP, VLO, VC, GWW, WST, WEX, WTW, XEL, AEM, AB, ALSN, GOOGL, ATR, AJG, TEAM, AVB, BYD, COF, CSL, CINF, COLM, DXCM, EMN, EW, EGO, ERIE, FE, GILD, GOOG, TV, HIG, HUBG, INTC, JNPR, KLAC, LHX, MSFT, MTX, MHK, NOV, DOC, PFG, RMD, RHI, ROKU, SKX, SKYW, SNAP, SSNC, TMUS, TDOC, TS, TEX, TFII, TBBB, TPC, WDC, WY, and WKC.  Finally, on Friday, ABBV, AON, ALV, AN, AVTR, BALL, CNC, CHTR, CVX, CL, XOM, FMX, GNTX, HCA, IMO, LYB, NWL, PSX, POR, ROP, SAIA, and TROW report.

So far this morning, AVY, BA, BXMT, BSX, CME, HAS, HELE, HLT, HUM, IPG, COOP, NKYDY, OC, RCI, TEL, TMO, TNL, VIRT, and WAB all reported beats on both the revenue and earnings lines.  Meanwhile, T, BIIB, BG, LII, MAS, ODFL, OTIS, and VRT missed on the revenue line while beating on earnings.  On the other side, CSTM, GD, GPI, EDU, SF, SYF, and WNC all beat on revenue while missing on earnings.  Sadly, ETR, EVR, LAD, TDY, and UMC all missed on both the top and bottom lines.  It is worth noting that BSX, EDU, and WAB raised their guidance.  However, HELE and TEL lowered their forward guidance.

In miscellaneous news, on Tuesday, Reuters reported that State Dept. officials have said the Biden Administration are discussing sanctions on Chinese banks, but are not looking at imposing them in the near-term.  However, the Wall Street Journal reported late Monday that sanctions were being drafted to stop Chinese banks from supporting Russia’s military production.  Elsewhere, JPM CEO Dimon said Tuesday the economy “is booming” and the strength is “unbelievable.”  He went on to say, “Even if we go into recession, the consumer’s still in good shape.”  However, he also warned about the potential (longer-term) impacts of the national debt and (shorter-term) harms of inflation and geopolitical conflicts.  Finally, in political news, the Senate passed the 4-bill package of foreign aid and TikTok forced sale or ban.  The bill passed 79-18 and was forwarded to the President for signature.

With that background, it looks as if the market remains undecided so far this morning. The bulls opened the premarket higher in the QQQ and SPY but also slightly lower in the DIA. Since then, all three major index ETFs are giving us small and very wicky candles, showing uncertainty. The bias is on the Bulls’ side this morning, but just barely. All three are back above their T-line (8ema) showing that the Bulls have retaken the short-term trend. Meanwhile, the mid-term remains bearish but is under pressure. The longer-term market remains Bullish but trend has been broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator remains in its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, seven of the 10 are in the green with only AAPL, GOOGL, and NFLX in the red this morning. The oddity is TSLA, which is up more than 12% on a huge miss…but as the huckster is wont to do, Musk promised new models early next year (things are always just around the corner with him) that are going to make TSLA cars more affordable and revolutionize the EV market. (The same was said last year about this year.) With that all said, be careful. We’ve see a lot of those widowmaker whipsaws lately.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 indecisively bullish on Monday.  The SPY gapped up 0.56%, DIA gapped up 0.50%, and QQQ gapped up 0.68%.   At that point, all three major index ETFs faded the gap, reaching the lows of the day at 11:20 a.m.  From there, all three rallied strongly and steadily to the highs at 2:30 p.m.  However, the SPY, DIA, and QQQ then all sold off the last 90 minutes of the day.  This whipsaw action gave us gap-up, white-bodied, Spinning Top candles in all three.  SPY and QQQ printed Bullish Harami Cross candles while DIA printed a Spinning Top that gapped up through, retested and stayed above its T-line (8ema).  This all happened on below average volume in all three major index ETFs.

On the day, nine of the 10 sectors were in the green with Financial Services (1.35%) and Technology (+1.21%) out in front leading the market higher while Basic Materials (-0.13%) was by far the worst performing sector. At the same time, SPY gained 0.92%, DIA gained 0.68%, and QQQ gained 1.01%.  VXX plummeted 7.70% to close at 14.27 and T2122 jumped back up to the center of its mid-range at 53.77. 10-year bond yields fell to 4.611% and Oil (WTI) was just on the red side of flat at $83.02 per barrel.  So, Monday was a bullish, but indecisive and very volatile day.  We saw a gap higher two different down waves of more than half a percent and a 1.4% up wave in the middle.  Not a market for the faint-hearted

There was no major economic news scheduled for Monday.

After the close, AGNC, AMP, BRO, CADE, CR, and PKG reported beats on both the revenue and earnings lines.  Meanwhile, ARE, CDNS, HXL, and MEDP missed on revenue while beating on earnings.  On the other side, SAP and SSD beat on revenue while missing on earnings.  Unfortunately, CLF, GL, LU, and NUE missed on both the top and bottom lines.  It is worth noting, MEDP raised their guidance.  However, NUE and PKG both lowered forward guidance.

In stock news, on Monday, auto supplier ADNT announced its restructuring its Europe business unit and will lay off an unspecified number of workers.  (42% of ADNT’s 70k workers are located in Europe.)  At the same time, UAE-based G42 (an AI firm) said it had agreed to a partnership with QCOM related to QCOM’s cloud AI products.  Later, CAH announced that it had lost contracts from UNH (one of CAH’s largest customers, contributing 16% of revenue in 2023) as the deal will not be renewed at the end of June.  (Industry analysts expect MCK to gain the contracts.)  At the same time, the New York Times reported AAPL is very close to finalizing a worldwide TV rights deal for FIFA’s month-long club tournament.  Later, Reuters reported that an internal memo from BA said the company expects a slower increase in the production and delivery rates for 787 jets.  The memo cited parts shortages from “a few key suppliers.”

In stock legal and governmental news, on Monday EXPR filed bankruptcy (Chapter 11) protection and said it will close more than 100 stores.  Later, the US Supreme Court rejected an appeal from VNDA, which had hoped to revive patents that had been declared invalid by a lower court in the company’s legal dispute with TEVA.  At the same time, the FAA announced it is finalizing rules to require commuter, charter, tour, and aircraft manufacturers to implement a set of safety policies and procedures (akin to a quality management system).  Up to this point, those types of commercial aircraft operators were not required to do so the way major airlines were.  Later, the FTC said it would be filing suit to clock the TPR $8.5 billion acquisition of CPRI.  The agency said the merging of ownership of the two company’s various luxury brands would reduce competition significantly in that industry.  At the same time, KR and ACI said they would be selling off 166 more grocery stores than previously announced as the companies work to get regulatory approval for the $15 billion “merger.” 

Overnight, Asian markets were mixed but leaned toward the green side again.  Hong Kong (+1.92%), Singapore (+1.47%), and Taiwan (+0.97%) led the region higher.  In Europe, with the sole exception of Russia (-0.40%) we see green across the board at midday.  The DAX (+1.12%), CAC (+0.67%), and FTSE (+0.43%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward another green start to the day.  The DIA implies a +0.22% open, the SPY is implying a +0.29% open, and the QQQ implies a +0.33% open at this hour.  At the same time, 10-year bond yields are up to 4.637% and Oil (WTI) is down 0.53% to $81.47 per barrel in early trading.

The major economic news scheduled for Tuesday includes Building Permits (8 a.m.), S&P Global Mfg. PMI, S&P Global Services PMI, and S&P Global Composite PMI (all at 9:45 a.m.), March New Home Sales (10 a.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  The major earnings reports scheduled for before the open include DHR, FI, FCX, GE, GM, HAL, HRI, IVZ, JBLU, KMB, LKQ, LMT, MSCI, NEE, NVS, OPCH, PNR, PEP, PII, BPOP, PHM, DGX, RTX, R, SHW, SPOT, UPS, WRB, WBS, and XRX. Then, after the close AGR, BKR, CNI, CB, CSGP, EWBC, ENVA, EQT, EQR, HA, IEX, MTDR, MAT, RRC, STX, STLD, LRN, TSLA, TXN, VLTO, V, WFRD, and WFG report. 

In economic news later this week, Wednesday, March Core Durable Goods, March Durable Goods, and EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet.  Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Wednesday APH, T, AVY, BIIB, BA, BSX, BG, CME, KOF, CSTM, ETR, FTV, GD, GPI, HAS, HLT, HUM, IPG, LII, LAD, MHO, MAS, COOP, EDU, NSC, ODFL, OTIS, OC, PRG, RCI, SABR, SYF, TEL, TDY, TMO, TNL, UMC, VRT, WAB, WSO, AGI, ALGN, AR, BMRN, CACI, CP, CLS, CCS, CHX, CHE, CMG, CHDN, CYH, EHC, F, GGG, ICLR, IBM, KALU, KNX, LRCX, LSTR, MTH, META, MEOH, MOH, NBR, ORLY, OII, PLXS, RJF, ROL, DEIC, NOW, TER, TX, TYL, URI, UHS, VALE, WCN, WU, WHR, and WM report.  On Thursday, we hear from AOS, ADT, ALFVY, ALLE, MO, AAL, HOUS, AIT, ARCH, AMBP, ABG, AZN, BFH, BMY, BC, CARR, CAT, CBZ, CX, CHKP, CMS, CMCSA, CFR, DAR, DOV, DOW, DTE, EQNR, FCNCA, FCFS, FCN, GTX, GEV, HOG, HP, HTZ, HES, HON, IP, KDP, KEX, LH, LAZ, LECO, HZO, MRK, NDAQ, NEM, NOC, ORI, OSK, PCG, PHIN, POOL, RS, RCL, SPGI, SNY, SAH, LUV, SRCL, STM, FTI, TECK, TXT, TSCO, TRU, TPH, UNP, VLO, VC, GWW, WST, WEX, WTW, XEL, AEM, AB, ALSN, GOOGL, ATR, AJG, TEAM, AVB, BYD, COF, CSL, CINF, COLM, DXCM, EMN, EW, EGO, ERIE, FE, GILD, GOOG, TV, HIG, HUBG, INTC, JNPR, KLAC, LHX, MSFT, MTX, MHK, NOV, DOC, PFG, RMD, RHI, ROKU, SKX, SKYW, SNAP, SSNC, TMUS, TDOC, TS, TEX, TFII, TBBB, TPC, WDC, WY, and WKC.  Finally, on Friday, ABBV, AON, ALV, AN, AVTR, BALL, CNC, CHTR, CVX, CL, XOM, FMX, GNTX, HCA, IMO, LYB, NWL, PSX, POR, ROP, SAIA, and TROW report.

So far this morning, DHR, FI, GE, GM, HAL, KMB, LMT, NEE, NVS, OPCH, PNR, PEP, PHM, DGX, RTX, R, and SPOT have all posted beats on both the revenue and earnings lines.  Meanwhile, BANC, HRI, IVZ, NJDCY, and WBS all reported beat on revenue while missing on earnings.  On the other side, JBLU, MSCI, PM, PII, and UPS all missed on revenue while beating on earnings.  Unfortunately, LKQ, SHW, and XRX missed on both the top and bottom lines.  It is worth noting that JBLU has lowered its forward guidance. However, GM has raised guidance after a blowout quarter.

In miscellaneous news, on Monday, the Communist Party Central Economic Planner said the global EV price war will continue the rest of 2024.  The economist said he expects 2.1 million EVs to be sold this year.  However, the three main Chinese EV brands plan to produce 2.3 million themselves.  This does not count TSLA or any other non-Chinese manufacturers.  Later, the Equipment Leasing and Finance Assn. (ELFA) said that US companies borrowed 7% less in March 2024 than they had one year prior.  However, March was also up 18% over February of this year.

With that background, it looks as if the bulls are making another indecisive move higher in the premarket. All three major index ETFs gapped higher to start the early session. However, since that point, all three have also given us more wick than (still white) body in the premarket. DIA remains back above its T-line (8ema). However, the SPY and QQQ remain below their T-line. So the short-term trend remains bearish to mixed. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, none of the major index ETFs is too far extended from their T-line and the T2122 indicator is now back in its mid-range. So, both sides have plenty of room to run if they can gain the momentum to do so. In terms of those 10 big dog tickers, eight of the 10 are in the green with only AAPL and INTC barely in the red this morning. With that all said, be careful. This week is packed with economic data (PCE) and a ton of earnings. Plus we’ve see a lot of those widowmaker whipsaws lately.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Friday saw markets open modestly.  SPY opened flat a -0.01%, DIA opened +0.22%, and QQQ gapped down 0.25%.  From there, SPY and QQQ sold off in a wavy manner the rest of the day.  At the same time, DIA meandered sideways above the open all day.  This action gave us large black-body candles with small wicks on both ends for the SPY and QQQ.  Meanwhile, the DIA printed a white-bodied Spinning Top candle that retested but failed it s T-line (8ema).  This happened on well above-average volume in all three major index ETFs.

On the day, eight of the 10 sectors were in the green with Utilities (1.51%) leading the market higher while Technology (-2.21%) was war and away (by 1.6% more than the other red sector) the biggest loser.  The big drag on technology was SMCI (-23.14%) which announced its earnings date, but did not include a prerelease of preliminary results as has been their custom.  This led to panic that the SMCI and the broader tech industry is in trouble.  The worst part for the market was that this spread to NVDA (-10.00%) which is by far the biggest market-mover, normally trading 2-3 times as much dollar volume as the next closes ticker.  However, Friday, NVDA traded five times as much dollar-volume than the next closes ticker.

This led to the SPY losing 0.87%, DIA gaining 0.52%, and QQQ losing a whopping 2.07%.  VXX gained 3.27% to close at 15.46 and T2122 climbed but remains just inside of its oversold territory at 19.15.  10-year bond yields fell a bit to 4.623% and Oil (WTI) was higher by 0.54% at $83.14 per barrel.  So, Friday was a story of fear.  SMCI made the market fear that the AI craze was ending leaving nothing but an abyss for the broader tech sector (which has driven markets for years now).  In addition to the two already mentioned, NFLX (-9.09%), AMD (-5.44%), and META (-4.13%) were also hammered and led the way lower.

There was no major economic news scheduled for Friday.

In FOMC speak, Chicago Fed President Goolsbee said that progress on inflation has been stalled this year.  Gone are his mentions of being on a “golden path.”  For now, he is counseling that the Fed stand pat, saying, “Given the strength of the labor market and progress on easing inflation seen over a longer arc, I believe the Fed’s current restrictive monetary policy is appropriate,” … “I think we have to recalibrate and we have to wait and see.”  He continued, “We’re just trying to figure out what is necessary, how restrictive do we need to be” … “We have weeks, months to find out.”  Finally, and as always, he said “Ultimately the proper policy going forward will depend on the data.”

In stock news, on Friday, Invetstin.com reported that the sale of PARA to Skydance Media may fall through as a competing big of $29 billion is in the works from the joint efforts of SONY and APO.  This news comes as the clock ticks on a 30-day exclusive negotiating rights period ticks away from Skydance.  Later, GOOGL announce they are rolling back requirements that suppliers and staffing firms pay their employees at least $15/hour and provide health benefits.  The move is designed to help suppliers avoid bargaining with unions.  At the same time, Reuters reported that an internal memo shows that NKE will lay off 740 employees at its headquarters. Later, LULU announced it will close id WA state distribution center and lay off 128 employees.  Meanwhile, TSLA announced it is cutting prices on Y, X, and S models by $2,000 and will end its customer referral benefits program on April 30. 

Elsewhere, the UAW won the employee vote at the VLKAF (Volkswagen) TN plant in a landslide vote with 73% for joining the union.  This was a big deal in that it is the first automaker plant in the South to unionize.  Later, a Swiss newspaper reported that the first of five planned waves of layoffs at UBS will begin in June.  This comes after the absorbing of CS and will be a cost-cutting and duplication reduction program.  The report expects 50%-60% of former CS staff to be laid off in one of the five waves.  On Saturday, TSLA cut the price of its “Full Self Driving” feature from $12k to $8k.  Then on Sunday, TSLA cut the price of some models in Europe, Africa, and the Middle East.

In stock legal and governmental news, on Friday, the FAA issued new rules that will require air traffic controllers to have at least 10 hours between shifts and 12 hours off prior to a midnight shift.  The new rules take effect in 90 days.  At the same time, SWBI and RGR appealed to the US Supreme Court to hear their appeal of a $10 billion suit brought by Mexico. The Mexico suit alleges the gun makers are responsible for misuse of their products in that country among others by drug cartels.  The appeal comes after the 1st Circuit Court of Appeals ruled in favor of Mexico, overturning the district court.  Later, the NHTSA announced that STLA is recalling 38k 2023-2024 vehicles over a steering column issue that may prevent the driver’s airbag from deploying.  At the same time, the World Health Org. issued a broader warning over contaminated JNJ children’s cough syrup (now owned by KVUE).  The original problem was found in Nigeria, but cases have now been found around Africa, Asia, and Eurasia.  Later, the Wall Street Journal reported that China has ordered AAPL to remove META WhatsApp and Threads along with other messaging apps from their app store.  At the same time, the US Dept. of Energy announced that ALB, CMI, SMNEY (Siemens), BLBP, and MP will receive a total of $1.93 billion in tax credits related to 35 clean energy projects.

Elsewhere, the NHTSA announced that TLSA will recall 3,900 Cybertrucks to fix an accelerator pedal that can come loose and get lodged in the trim causing unintentional acceleration.  At the same time, the US Interior Dept. announced it will limit oil and gas drilling as well as mining on public lands in Alaska.  Oil companies and AK politicians decried the decision as hurting jobs and the economic growth.  Later, WFC was hit with a sex discrimination lawsuit from one of their bond saleswomen.  The suit alleges the company operates an “unapologetically sexist” workplace where male managers routinely having sexual relations with subordinate women, men often make degrading jokes, and accounts are handled through an “old boy network” which cost the plaintiff millions in commissions and forced her to wait nine years for promotion to director (from Vice President). 

Overnight, Asian markets were mostly green with just three of the 12 exchanges in the red.  Hong Kong (+1.77%), Singapore (+1.53%), and South Korea (+1.45%) led the region higher but the gains were broad with half of the region’s exchanges up more than one percent.  In Europe, we see a similar picture at midday with 13 of 15 bourses in the green.  The FTSE (+1.59%), CAC (+0.18%), and DAX (+0.48%) lead the region on volume in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a gap higher to start the day.  The DIA implies a +0.52% open, the SPY is implying a +0.56% open, and the QQQ implies a +0.63% open at this hour.  At the same time, 10-year bond yields are up to 4.66% and Oil (WTI) is flat at $83.15 per barrel in early trading.

There is no major economic news scheduled for Monday. However, the major earnings reports scheduled for before the open include ACI, KSPI, SDVKY, TFC, VZ, and ZION.  Then, after the close, ARE, AMP, BRO, CDNS, CLF, CR, GL, HXL, LU, MEDP, NUE, PKG, SAP, and VLRS report. 

In economic news later this week, Tuesday we get Building Permits, S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, March New Home Sales, and API Weekly Crude Oil Stocks.  Then Wednesday, March Core Durable Goods, March Durable Goods, and EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q1 GDP, Q1 GDP Price Index, March Goods Trade Balance, March Retail Inventories, March Pending Home Sales, and the Fed Balance Sheet.  Finally, on Friday, March Core PCE Price Index, March PCE Price Index, March Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Tuesday, we hear from DHR, FI, FCX, GE, GM, HAL, HRI, IVZ, JBLU, KMB, LKQ, LMT, MSCI, NEE, NVS, OPCH, PNR, PEP, PII, BPOP, PHM, DGX, RTX, R, SHW, SPOT, UPS, WRB, WBS, XRX, AGR, BKR, CNI, CB, CSGP, EWBC, ENVA, EQT, EQR, HA, IEX, MTDR, MAT, RRC, STX, STLD, LRN, TSLA, TXN, VLTO, V, WFRD, and WFG.  Then Wednesday APH, T, AVY, BIIB, BA, BSX, BG, CME, KOF, CSTM, ETR, FTV, GD, GPI, HAS, HLT, HUM, IPG, LII, LAD, MHO, MAS, COOP, EDU, NSC, ODFL, OTIS, OC, PRG, RCI, SABR, SYF, TEL, TDY, TMO, TNL, UMC, VRT, WAB, WSO, AGI, ALGN, AR, BMRN, CACI, CP, CLS, CCS, CHX, CHE, CMG, CHDN, CYH, EHC, F, GGG, ICLR, IBM, KALU, KNX, LRCX, LSTR, MTH, META, MEOH, MOH, NBR, ORLY, OII, PLXS, RJF, ROL, DEIC, NOW, TER, TX, TYL, URI, UHS, VALE, WCN, WU, WHR, and WM report.  On Thursday, we hear from AOS, ADT, ALFVY, ALLE, MO, AAL, HOUS, AIT, ARCH, AMBP, ABG, AZN, BFH, BMY, BC, CARR, CAT, CBZ, CX, CHKP, CMS, CMCSA, CFR, DAR, DOV, DOW, DTE, EQNR, FCNCA, FCFS, FCN, GTX, GEV, HOG, HP, HTZ, HES, HON, IP, KDP, KEX, LH, LAZ, LECO, HZO, MRK, NDAQ, NEM, NOC, ORI, OSK, PCG, PHIN, POOL, RS, RCL, SPGI, SNY, SAH, LUV, SRCL, STM, FTI, TECK, TXT, TSCO, TRU, TPH, UNP, VLO, VC, GWW, WST, WEX, WTW, XEL, AEM, AB, ALSN, GOOGL, ATR, AJG, TEAM, AVB, BYD, COF, CSL, CINF, COLM, DXCM, EMN, EW, EGO, ERIE, FE, GILD, GOOG, TV, HIG, HUBG, INTC, JNPR, KLAC, LHX, MSFT, MTX, MHK, NOV, DOC, PFG, RMD, RHI, ROKU, SKX, SKYW, SNAP, SSNC, TMUS, TDOC, TS, TEX, TFII, TBBB, TPC, WDC, WY, and WKC.  Finally, on Friday, ABBV, AON, ALV, AN, AVTR, BALL, CNC, CHTR, CVX, CL, XOM, FMX, GNTX, HCA, IMO, LYB, NWL, PSX, POR, ROP, SAIA, and TROW report.

So far this morning, TFC reported beats on both the revenue and earnings lines.  At the same time, VZ missed on revenue while beating on earnings.

In miscellaneous news, on Friday, the USDA confirmed that bird flu can be transmitted between cattle.  This just adds another vector to be accounted for in attempting to control the virus.  However, as of now, pasteurization still kills the virus, leaving the cattle’s milk still viable for humans and the bird flu is not deadly to cattle.  Elsewhere, Bitcoin finished its fourth “halving” on Friday.  This means that Bitcoin miners only get half as much Bitcoin in return for the same mining effort.  (These “halvings” happen every four years and are designed to make existing Bitcoin even more valuable.  In other news, China slapped an 43.5% anti-dumping tariff on an acid from the US, which is widely used in food, feed, pesticides, and medical fields.  The move comes as trade tensions between Beijing and Washington increase. 

With that background, it looks as if the bulls want to make a run this morning. All three major index ETFs gapped up to start the premarket and have put in strong white-bodied candles with no wicks since then. DIA has even crossed back above its T-line (8ema). However, the SPY and QQQ remain well below their T-line. So the short-term trend remains bearish to mixed. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, the QQQ is extended below their T-line but the DIA is fine and SPY is somewhere between those two. Still, the T2122 indicator remains just inside its oversold range. So, again, a rest would seem in order at the very least for the Bears. (Just remember markets can remain oversold a lot longer than we can stay solvent predicting a reversal.) In terms of those 10 big dog tickers, eight of the 10 are in the green with the huge dog NVDA (+1.80%) looking to rebound after the weekend to reconsider the “sky is falling” Friday panic. TSLA (-3.82%) is down hard again as it is hit from its weekend price cuts and other news. With that all said, be careful. This week is packed with economic data (PCE) and a ton of earnings.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Thursday saw markets start out bullish.  The SPY gapped up 0.30%, DIA gapped up 0.43%, and QQQ opened 0.15% higher.  After 10-15 minutes of gathering themselves, all three major index ETFs rallied to the highs of the day at 11:25 a.m.  However, then momentum reversed, and all three sold off steadily, reaching the lows of the day about 1:25 p.m.  At that point, QQQ ground sideways in a tight range, near the lows, the rest of the day.  Meanwhile, the large-cap index ETFs both rallied slightly the 90 minutes of the day.  This action gave us black-bodied candles in all three major index ETFs.  The SPY and DIA both printed a black Spinning Top that consolidated in the DIA.  DIA also retested and failed its T-line (8ema) while SPY came nowhere near retesting and remains well below its T-line.  At the same time, QQQ had a larger black body and continued its move down, also not retesting its T-line.

On the day, six of the 10 sectors were in the red with Technology (-0.65%) out in front leading the way lower.  Meanwhile, Communications Services (+0.70%) led the four green sectors higher.  At the same time, SPY lost 0.19%, DIA gained 0.11%, and QQQ lost 0.57%.  VXX gained slightly to close at 14.97 and T2122 rose but remains deeply in the oversold territory at 4.03.  10-year bond yields popped up to 4.633% and Oil (WTI) was flat at $82.69 per barrel.  So, overall, Thursday seemed like consolidation day in the large-cap index ETFs (especially the DIA) while QQQ continued South.  NVDA (+0.76%) largely held the tech sector up itself with $35 billion in tis stock traded while TSLA (-3.57%) led most of the sector lower on $12.8 billion (2^nd largest dollar amount traded).  This all happened on less than average volume in the SPY and QQQ and a bit more than average volume in the DIA.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in a touch lower than expected at 212k (compared to a forecast of 215k but in-line with the prior week’s 212k).  On the ongoing side, Weekly Continuing Jobless Claims, were also just a bit lower than predicted at 1,812k (versus a forecast of 1,818k but also up slightly from the previous week’s 1,810k).  At the same time, the Philly Fed Mfg. Index was stronger than anticipated, but still low, 15.5 (compared to a forecasted 1.5 and the March reading of 3.2).  However, Philly Fed Mfg. Employment Index was down at -10.7 (versus the March -9.6 value).  Later, March Existing Home Sales fell to 4.19 million (compared to 4.20 million forecast but down from the February 4.38 million).  This was a 4.3% decrease month-on-month in March.  At the same time, the US Leading Economic Indicator Index was weaker than expected at -0.3% (versus a -0.1% forecast and the February +0.2%).  Later, after the close, Fed Balance Sheet showed a $32 billion drawdown (from $7.438 trillion last week to $7.406 trillion this week).

In FOMC speak, Atlanta Fed President Bostic (a hawk) indicated that was no hurry to cut rates.   Bostic said inflation would be returning to the Fed’s 2% target more slowly than most expected.  However, he said, “for me, that’s okay … I’m not in a mad dash hurry to get there” (indicating that continued relatively strong economy and a slowly declining inflation was a good thing).  He then hurt the market’s feelings (expectations) by saying, “I’m of the view that things are going to be slow enough this year that we won’t be in a position to reduce our rates towards … the end of the year.” He continued, “If we can keep those things going, and inflation has the signs that it is moving to that target, I’m happy to just stay where we are.”  Elsewhere, New York Fed President Williams (hawkish lean) echoed a similar refrain, saying, “I definitely don’t feel urgency to cut interest rates” (given the strength of the economy).  Williams continued, “I think eventually…interest rates will need to be lower at some point, but the timing of that is driven by the economy.”

After the close, ISRG, NFLX, and WAL all reported beats on both the revenue and earnings lines.  Meanwhile, PPG missed on revenue while reporting in-line on earnings.  It is worth noting that NFLX forward guidance disappointed and while they reported blow out subscriber growth in Q1 the said they will stop reporting subscriber growth in the future.

In stock news, on Thursday, GOOGL announced it had terminated 28 employees related to Wednesday’s employee sit-in protest of the company’s contract with the Israeli military.  (Nine of the 28 had been arrested for refusing to leave GOOGL premises.)  At the same time, the CEO of ME revealed (in a public filing) that they will take the company private.  The CEO currently owns 20% of the total shares.  Later, INTC announced it was the first chipmaker to complete the building of ASML’s new “High NA EUV” lithography machines.  This gives INTC an edge in developing the next generation of denser chips over its competitors.  (AMD was first to implement ASML’s previous generation of EUV machine and has enjoyed a technical edge since that time.)   At the same time, UNH announced that its subsidiary unit (which was hacked in February) had suffered another issue processing batches of medical claims.  However, UNH said the issue had been communicated to the customers involved and that the issue was resolved and the processing backlog was being eliminated.  Later, a leading shareholder proxy advisory service recommended that shareholders vote against the reelection of five BRKB directors, citing concerns over both company climate change performance as well as general governance.  (It is highly unlikely Warren Buffett loses a shareholder vote, since he himself owns 31.2% of the voting shares, nonetheless it is worth mentioning.)

Elsewhere, GOOGL announced it has consolidated its Research and DeepMind units to create one “Responsible AI” team.  The division is tasked with all AI development and will be relocated to where the GOOGL AI models are being built and trained.  In related news, META has released an early version of its new “Llama 3” AI model.  At the same time, SNY said it would restructure its US commercial operations and cut an unknown number of jobs as part of “strategic streamlining.” After the close, NFLX said it experienced blowout subscriber growth in Q1, adding 9.33 million new subscribers.  However, the company forecasted weaker growth in Q2.

In stock legal and governmental news, on Thursday, the Dutch military intelligence agency published a report claiming that ASML (and some other tech companies in the Netherlands) have been and are under increasing attack by Chinese human-based and cyber espionage.  The report said, unsurprisingly, these Chinese attacks have increased since the 2023 ban on selling ASML technologies to China.  Later, the Dept. of Commerce announced MU will receive $6.1 billion in grants to help pay for new US chip plants.  These include new plants in NY and ID.  At the same time, the state of MI began receiving public comment on a proposal (filed in March) to increase the output of a MPC refinery in Detroit. The public hearing to review comments is set for May 28.  Later, the Attorneys General of KY and WV filed suit to block the EPA rules requiring a reduction in tailpipe emissions between 2026 and 2032.  (The GOP officials say it is “legally flawed and unrealistic” to reduce emissions by almost 50% over eight years.) At the same time, JPM filed suit against Russian, state-owned VTB Bank to recover $439.5 million from an account blocked after Russia invaded Ukraine more than two years ago.  Later, the House moved ahead on a bill to force ByteDance to sell TikTok to a US owner or ban it from the US.  (If the bill becomes law, CG, SQCF, and other major shareholders of ByteDance could be negatively impacted by a sale at “forced sale” prices.)

Elsewhere, JNJ won a FL trial brought by the family of a woman who died of ovarian cancer in 2019.  The family had claimed JNJ talc had caused the cancer, but the jury was unconvinced.  At the same time, a bipartisan US House committee released the findings of an investigation of US financial firms.  The report found US finance firms (in particular BLK and MSCI) facilitated $6.5 billion of investments in blacklisted Chinese firms.  The report called for legislation to ban such investments in sanctioned firms.  Later, a US judge ruled BNPQY must face a lawsuit alleging the French bank aided the Sudan government commit genocide between 1997 and 2011 by providing banking services that were then prohibited by US law.  The judge said there were too many fact linking the bank funding to the government abuses over the period.  (The bank paid a $8.9 billion penalty to the US in 2014 to settle charges of criminal liability over the same actions.  This civil case is being brought by Sudanese victims.)

Overnight, Asian markets were heavily on the red side with only two of 12 exchanges in the green.  Taiwan (-3.81%), Japan (-2.66%), and Thailand (-2.13%) led the region lower.  Meanwhile, in Europe, we see a similar picture taking shape with only three of 15 bourses in the green at midday.  The CAC (-0.41%), DAX (-0.81%), and FTSE (-0.71%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a down open to start Friday.  The DIA implies a -0.21% open, the SPY is implying a -0.34% open, and the QQQ implies a -0.51% open at this hour.  At the same time, 10-year bond yields are down to 4.596% and Oil (WTI) is actually off 0.97% to $81.93 per barrel.  All of these moves and numbers were largely precipitated by Israel’s retaliatory strike (for Iran’s retaliatory strike) on Iran and worry over another retaliation and escalation.

There is no major economic news scheduled for Friday.  However, the major earnings reports scheduled for before the open include AXP, FITB, HBAN, PG, RF, SLB, and WIT.  There are no major reports scheduled for after the close.

In miscellaneous news, Reuters reported Thursday afternoon that MCO (Moody’s) has noted that creditors have begun to demand extra protection and clamped down on “creative financing” techniques of junk-rated corporate loans.  (Previous corporate loan documentation did not prohibit “double dipping,” which is where a company has one of its financing subsidiary’s obtain money, using the guarantee of the parent company to secure the loan.  The subsidiary then turns around and loans the money raised to the parent corporation.  The parent then uses the raised money as collateral to obtain yet another loan.  Elsewhere, a bi-partisan group of Senators proposed legislation to accelerate the development of nuclear fusion reactors to provide the power to help meet growing demand as well as the needs of climate change-related power needs.  Finally, it was widely reported that the MAGA faction and House Speaker Johnson had a surreal shouting match (in hushed tones but very animated) away from reporters but directly under visitors in the gallery of the House Floor. Reporting suggests Speaker Johnson will call votes on the three aid bills plus the TikTok ban bill Saturday and send them to the Senate…where they will have to be revoted for passage. The “Freedom Caucus” (and MTG in particular) threatened Thursday to make her motion to vacate privileged, which due to recess would call a Speaker vote sometime around the end of the month. (Betting is that the Democrats would save Johnson as compensation for him calling the foreign aid votes over the objections of the fringe elements of his own party.)

So far this morning, AXP, FITB, HBAN, SLB, and WIT all reported beats on both the revenue and earnings lines.  Meanwhile, PG missed on revenue while beating on earnings.  On the other side, RF beat on revenue while missing on earnings.  It is worth noting that PG has raised its forward guidance.

With that background, it looks as if the markets were scared by the Israeli attack (and/or news that the US had “signed off” on Israel’s plans for invading the Gaza city of Rafah in a way that purportedly will remove the civilians block by block rather than a wholesale attack from all directions). At any rate, the three major index ETFs gapped lower to start the premarket. However, all three have put in significant white-body candles and are now at the highs of the early session in what seems to be a notable rebound. In fact, all three are barely in the red at this point. (Perhaps rethinking how bad the geopolitical news is or expecting a flight to safety into US bonds and equities.) However, the SPY, DIA, and QQQ all remain well below their T-line. So the short-term trend is bearish. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, the SPY and QQQ are a bit extended below their T-line but DIA is fine. Still, the T2122 indicator remains deep in its oversold range. So, at the very least, the Bears are in need of some more rest. (Just remember markets can remain oversold a lot longer than we can stay solvent predicting a reversal.) In terms of those 10 big dog tickers, eight of the 10 are in the red with NFLX (-5.75%) leading the move lower. However, the biggest of the big dogs, NVDA (+0.06%) is barely hanging onto green. (NVDA trades 2.5-3 times as much dollar volume than any other ticker, so it carries a big stick.) With all of this said, remember that it is Friday (and an options expiration Friday at that). So prepare your account for a weekend of (geopolitical?) news and perhaps political news in the US related to Speaker Johnson’s seat and US aid bills.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 day with a gap higher.  SPY gapped up 0.51%, DIA opened 0.35% higher, and QQQ gapped up 0.44%.  At that point, SPY chopped sideways for 15 minutes before starting a sell off that recrossed the gap and reached the lows of the day at 12:50 p.m.  QQQ didn’t wait at all and also sold off reaching its lows at the same time.  DIA actually followed through on its gap for 20 minutes before following the other two index ETFs South and reaching the lows or the day also at 12:50 p.m.  From there, all three bounced in a two-hour rally that regained some of the lost ground only to sell back off for 20 minutes before grinding sideways into the close.  The action gave us large, black candles that are definitely a Bearish Doji Continuation (Doji Sandwich) in the QQQ and SPY.  DIA was more of a fat Spinning Top candle in a consolidation.  None of the three really threatened a retest of the T-line and remain below.  This happened on average volume in all three major index ETFs.

On the day, five of the 10 sectors were in the red with Technology (-1.34%) way out in front leading the way lower.  Meanwhile, Utilities (+1.65%) was BY FAR (by more than 1.4%) the strongest sector.  At the same time, SPY lost 0.59%, DIA lost 0.14%, and QQQ lost 1.22%.  VXX lost almost one percent to close at 14.93 and T2122 fell even deeper into the oversold territory at 1.14.  10-year bond yields fell to 4.591% and Oil (WTI) plummeted 2.92% to close at $82.87 per barrel.  So, overall, Wednesday was a Bearish day.  DIA continued a consolidation along what might be a support area while the two leading index ETFs continued their move down.  The buzz continues to be the market resetting its timing expectations for rate cuts, with talk now of fewer and a later start to those cuts working their way through what had been an expectation of a start in March.  (At the moment, the first meeting where Fed Fund Futures show a greater than 50% chance of a rate cut is September, with only 29.1% thinking we will not have seen a rate cut by then.)

The major economic news scheduled for Wednesday included EIA Weekly Crude Oil Inventories, which showed a larger inventory build than expected at +2.735 million barrels (compared to a forecasted +1.600 million barrels but down from the prior week build of 5.841 million barrels).  Later, the February TIC Net Long-Term Transactions showed a much larger than predicted inflow of $71.5 billion (versus a forecast calling for $40.2 billion and much larger than January’s +14.0 billion).  This is quite bullish for the US Dollar.

After the close, OZK, CCI, CSX, FNB, LVS, and WTFC all reported beats on both the revenue and earnings lines.  Meanwhile, AA, DFS, and SNV all beat on revenue while missing on earnings. On the other side, EFX and KMI missed on revenue while beating on earnings.  Unfortunately, LBRT missed on both the top and bottom lines.  It is worth noting that KMI raised its forward guidance.

In stock news, on Wednesday, TSLA asked shareholders to reapprove the $56 billion stock grant compensation package for CEO Musk.  (That package had been thrown out by a court as ridiculous earlier this year.)  Speaking of Musk, Reuters reports he will announce a new $2 billion – $3 billion investment in India during his trip there next week.  At the same time, MBLY announced it has received orders for 46 million new “assisted driving” chips over the next few years.  (The company did not disclose which auto companies placed the orders.)  Later, AMKAF (Maersk AP Moller, a huge container shipper) announced that the Port of Baltimore alternate channels are not deep enough and the company will not be able to use the port until the channels are deepened or replaced.  At the same time, LLY reported sleep apnea treatment success for its weight loss drug Zepbound.  (The hope is that if approved for the additional condition, sales would increase.)   Later, MSFT announced that it has found Russian influence operations targeting the 2024 US elections have already begun, picking up pace in the last 45 days.  At the same time, GOOGL announced it is laying off an unspecified number of employees.  GOOGL spokesmen said the affected employees can apply for other open slots inside the company and the cuts are not companywide.

Elsewhere, AMZN announced it will push “Just Walk Out” technology into third-party stores such as sports stadiums and airport retailers.  This is interesting because AMZN itself is backing off its stand-alone “Just Walk Out” stores.  In politics-related news, President Biden told a United Steel Worker rally Wednesday that he promises that X will remain a “totally American company,” despite X having agreed to a $14.9 billion buyout by Nippon Steel.  (It is worth noting that many politicians on both sides of the aisle have taken that stance.  However, Biden controls the FTC and other regulatory agencies that might actually stop the deal.)  At the same time, RIVN announced it will cut 1% of its workforce in a second round of layoffs this year.  (RIVN cut 10% of its jobs in February.)

In stock legal and governmental news, on Wednesday, the New York Times reported that the FTC is preparing to block the TPRI acquisition of CPRI for $8.5 billion on antitrust grounds.  At the same time, ADSK announced it will not be able to submit its annual report within the 15-day grace period that was granted to it by NASDAQ.  (The company said it will take the needed measures to regain compliance as soon as possible.)   Later, the NHTSA announced that TM had recalled 135k Prius hybrid cars and has suspended taking new orders for the model due to a problem with rear door handles.  At the same time, the European Data Protection Board (privacy watchdog) asked META to provide a free version of its online platforms without targeted ads.  This comes after the group asked national regulators in Netherlands, Norway, and Germany to demand this of META.  (This would be contrary to META’s entire ad-based business model.)  Later, the NHTSA said F is recalling 457k pickup and SUVs over the loss of drive power and hazard lights during operation.  (These are not electric vehicles.)  At the same time, Reuters reported sources tell it that MSFT’s $13 billion investment into OpenAI will skirt EU antitrust laws and will not draw an investigation.

Elsewhere, UAL said that the FAA has prohibited it from putting new planes into service due to an ongoing investigation into UAL operations.  The airline said a small number of new aircraft scheduled to come online in Q2 have had the schedule pushed back into Q3.  At the same time, UAL said BA had agreed to compensate the airline for damages incurred in Q1 due to the grounding of 737 MAX 9 jets.  Later, Reuters reported that the Biden administration will restore tariffs on solar panel products from China at the request of the US branch of South Korea’s Hanwha Qcells.  (US solar stocks such as FSLR soared on the news.) 

Overnight, Asian markets were mixed but leaned toward the green side with only four of 12 exchanges in the red.  South Korea (+1.95%), Singapore (+1.05%), and Hong Kong (+0.82%) led the region’s gainers.  In Europe, we also see mixed but leaning green bourses at midday.  Only five of the 15 bourses are red as the CAC (+0.39%), DAX (+0.07%), and FTSE (+0.25%) lead the region higher on volume.  In the US, as of 8:15 a.m., Futures are pointing toward a modestly green start to the day. The DIA implies a +0.23% open, the SPY is implying a +0.23% open, and the QQQ implies a +0.24% open at this hour.  At the same time, 10-year bond yields are at 4.592% and Oil (WTI) is off six-tenths of a percent to $82.18 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, and Philly Fed Mfg. Employment (all at 8:30 a.m.), March Existing Home Sales and US Leading Economic Indicator Index (both at 10 a.m.), Fed Balance Sheet (4:30 p.m.), and three Fed speakers (Bowman at 9:05 a.m., Williams at 9:15 a.m., and Bostic twice at 11 a.m. and 5:45 p.m.).  The major earnings reports scheduled for before the open include ALK, AALY, BX, CMA, DHI, ELV, GPC, INFY, KEY, MAN, MMC, NOK, SNA, and TSM.  Then, after the close, ISRG, NFLX, PPG, and WAL report.

In economic news later this week, there are no major economic news scheduled for Friday.

In terms of earnings reports later this week, on Friday AXP, FITB, HBAN, PG, RF, SLB, and WIT report.

So far this morning, ALK, ALLY, BX, CMA, DHI, ELV, INFY, MMC, TSM, and TCBI all reported beats on both the revenue and earnings lines.  Meanwhile, GPC, MAN, NOK, and SNA all missed on revenue while beating on earnings.  On the other side, KEY beat on revenue while missing on earnings.  It is worth noting that DHI, GPC, and TSM all raised their forward guidance.

In miscellaneous news, the Dept. of Transportation Inspector General announced on Wednesday that his office has opened an investigation into FAA oversight of BA and its manufacturing of 737 and 787 jets.  Later, after the close, US Trade Representative Tai told the US Senate that the US must take “decisive action” to protect US electric vehicles from heavily subsidized Chinese competition.  Meanwhile, the Treasury Dept. announced it will not renew a license granted to Venezuela for oil imports into the US.  This restores the sanctions on the Maduro regime.  The current license expires today, but Treasury has issued a 45-day license to allow US companies to wind down their oil and gas business with Venezuela.  (This is in response to Maduro’s regime repeatedly declaring different leading opposition candidates ineligible to run against Maduro.)  After the close, nine GOOGL employees were arrested at the company’s NY and CA offices after conducting a sit-in protest over GOOGL’s $1.2 billion contract to provide the Israeli military cloud services.

With that background, it looks as if the market is slightly bullish but undecided in the premarket. All three major index ETFs gapped higher to start the early session, but have printed small, black-body inside day candles since then. The SPY, DIA, and QQQ all remain well below their T-line. So the short-term trend is bearish. Meanwhile, the mid-term has also turned bearish and the longer-term market remains Bullish but trend is broken and is clearly under pressure. In terms of extension, none of the major index ETFs are too far below their T-line, but the T2122 indicator is deeply in its oversold range. So, at the very least, the Bears are in need of some rest. (Just remember markets can remain oversold a lot longer than we can stay solvent predicting a reversal.) In terms of those 10 big dog tickers, seven of the 10 are in the green early but the biggest mover by far is TSLA (-2.59%) pushing to the downside. So, be careful of whipsaws, but today is looking more indecisive again.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 Mike Probst: Rick, Got CTL off the scanner today. Already up 30%. Love it.

🎯 Dick Carp: the scanner paid for the year with HES-thank you

🎯 Arnoldo Bolanos: LTA scanner really works $$, thanks Ed.

🎯 Bob S: LTA is incredible…. I use it … would not trade without it

🎯 Malcolm .: Posted in room 2, @Rick… I used the LTA Scanner to go through hundreds of stocks this weekend and picked out three to trade:  PYPL, TGT, and ZS.   Quality patterns and with my trading, up 24%, 7% and 12%…. this program is gold.

🎯 Friday 6/21/19  (10:09 am) Aaron B: Today, my account is at +190% since January. Thanks, RWO HRC Flash Malcolm Thomas Steve Ed Bob S Bob C Mike P and everyone that contributes every day. I love our job.

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