Markets gapped down more than 1.5% today and then followed through until the SPY managed to find some support at the 500sma around 11:30 am.  Despite an hour-long mid-day attempt to bounce, the bears stepped back in to take all 3 major indices back to their lows by 2 pm and continue sliding toward the lows of the day.  The QQQ was clearly the ugliest of the major indices, with the SPY not far behind while the DIA benefitting from the safety trade printing a gap-down black Spinning Top that bounced up off the February low (probably on safety trades).  Every sector was in the red, with Energy leading the charge lower.  This left us at new 52-week lows in all 3 of the major indices.  On the day, SPY lost 3.16%, DIA lost 1.89%, and QQQ lost 3.86%.  The VXX rose 3.5% to 28.01 and the only possible silver lining for the Bulls is that the market is now very oversold with the T2122 falling to 1.33.  10-year bond yields fluctuated wildly during that day, reaching the high since 2009 (3.185%) but fell back to 3.04% by day end.  Oil (WTI) fell a whopping 6.4% to $102.75/barrel.

After the close, SPG, IFF, EQH, AMC, XPO, CLOV, HI, MRC, VRM, UNVR, and MCHP all reported beats on both revenue and earnings.  Meanwhile, ICUI, DNB, missed on revenue while beating on earnings.  On the other side, IAC, CAPL, SWX, VVV, and RNG reported beating the estimates on revenue but missed on the bottom line.  Finally, NVAX, ZNGA, and PRIM reported misses on both lines.

Realtor.com reports that the supply vs. demand balance of the real estate market has started to improve.  April home for sale inventory was down just 3%-12% from the same time in 2021 and this was the smallest year-over-year drop since 2019.  The data suggest that the rapid rise in interest rates, which has made housing bubble prices even more expensive for buyers is slowing the pace of sales, despite listings being down 67% from pre-pandemic levels.

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On the Russian invasion story, MSCI research said they are now expecting Russia to default on bond payments on May 27.  Since late February, the US Treasury Dept. has been approving (on a case-by-case basis) Russian payment on bond debt.  The exemption to sanctions that allowed that flexibility expires May 25 and the firm does not believe the US will renew the exemption.  Elsewhere, NBC reports that more than 1 million Ukrainians have been forcibly relocated to Russia. Meanwhile, the European Bank for Reconstruction and Development estimates the Russian economy will only shrink 10% in 2022 (mostly due to the huge increases in exported energy prices largely offsetting the loss of domestic activity), while the Ukrainian economy will shrink by 30%.  To me, a contraction of only 30% is nearly miraculous.  With an active war ongoing, many of the major centers of industry in ruins, all ports closed, one-third of the population now being refugees, and only half of the crops able to be planted, it is hard to see how the country’s output could be down only 30%. Finally, the US has suspended the 25% tariff on Ukrainian steel for a year. (That said, it is unclear how much steel can make it from Ukraine to the US given most steel production is in the South-Eastern parts of the country and would normally ship through the closed ports.

The Fed warned of tightening financial market liquidity overnight. Meanwhile, the market waits on more inflation data tomorrow as well as President Biden speaking on the subject at 11:30 am today…and inflation has been the key market driver for a while now. Oil markets have slumped the last two days as traders see the EU softening its sanctions on Russian oil in the face of Pro-Putin Hungary’s veto power on the ban. (The problem with the EU is that it requires unanimity to act.)

The economic news coming later this week includes Apr. CPI, Crude Oil Inventories, 10-year Bond Auction, and Apr. Fed. Budget Balance on Wednesday.  Then on Thursday, we get Apr. PPI, Weekly Initial Jobless Claims, the WASDE Report, and a Fed speaker.  Finally, Friday we see Apr. Imports/Exports, Michigan Consumer Sentiment, and a couple of Fed speakers.

Overnight, Asian markets were mixed.  Shenzhen (+1.37%), Thailand (+1.14%), and Shanghai (+1.06%) led the gainers.  Meanwhile, Hong Kong (-1.84%), New Zealand (-1.34%), and Singapore (-1.25%) paced the losses.  (Hong Kong’s bad day may in part be the result of a new “pro-reintegration-to-China” leader who has taken over.  In Europe, stocks are rebounding from Monday’s terrible day as of mid-day.  The FTSE (+0.67%) lags as the “Queen’s Speech” was delivered in absentia and focuses on the high cost of living.  However, the DAX (+1.44%) and CAC (+0.96%) are typical of the region in early afternoon trading. As of 7:30 am, US Futures are pointing toward a gap higher to start the day as stocks try to recover some of Monday’s losses.  The DIA implies a +0.77% open, the SPY is implying a +0.87% open, and the QQQ implies a +1.32% open at this hour.  10-year bond yields have dropped sharply but remain above 3% at 3.024% and Oil (WTI) is off another 1.7% to $101.41/barrel in early trading.

Once again, there is no major economic news scheduled for release on Tuesday.  However, there are 5 Fed speakers scheduled (Williams at 7:40 am, Bostic at 8:30 am, Waller and Kashkari, both at 1 pm, Mester at 3 pm, and Bostic again at 7 pm).  Major earnings reports scheduled for the day include FOX, AHCO, ARMK, AVYA, BHC, BCO, BLDR, CCO, XRAY, DBD, DSEY, EPC, FOXA, H, IAA, IIVI, IGT, LCII, LI, LDI, MIDD, EYE, NXST, NCLH, PTON, PLTK, REYN, SONY, SYY, TDG, UWMC, and WMG before the open.  Then after the close, ADV, ALC, ELY, COIN, DAR, EA, GSM, FNF, GFS, GO, HRB, JXN, LBTYA, LNW, OXY, OSCR, RXT, RBLX, RKT, SCSC, WELL, WYNN, and YELL report.

So far this morning BAYRY, DKILY, ITOCY, BLDR, MIDD, IIVI, IAA, IGT, LCII, ARMK, and NXST have all reported beats on both revenue and earnings.  Meanwhile, SONY, NTDOY, SSUMY, TYOYY, EYE, AZUL, and SU all missed on revenue while beating on earnings.  On the other side, HGV has reported beating the estimates on revenue but missed on the bottom line.  Finally, NPSCY, XRAY, NCLH, PTON, RICOY, AVYA, DBD, BHC, and KWHIY have reported misses on both lines.

Futures are backing off earlier highs. However, it appears we will still see a bounce at the open. The question is whether that is a “dead cat” bounce or the beginnings of a reversal. The smart money remains in the “relief rally only” camp given the strong bear trend and current over-extention. So, if you are bound to go long in this move, be very cautious and extremely nimble. The bears still have all the momentum and this would be an excellent place for a Bull trap. As always, don’t get caught chasing moves, and be quick to take profits when you have them.

Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. Remember that the first rule of making big money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. You also don’t need to be in the market all the time. If this isn’t a market condition you thrive in, then get out of the way. It will settle out at some point and it’s far better to wait and have money the market condition you prefer than to force trades now and be busted when things do turn. Keep in mind that nobody is right all the time. If you’re wrong, just admit it and take your loss. Focus on your process and enjoy yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: SHW, TSLA, NVDA, MSFT, AMZN, NFLX, JPM, FB, AAPL, BBIG, ADM, PEP, C, WFC, GILD, SPXS, UVXY, SQQQ . You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Thursday markets gapped down roughly a percent after traders had rethought their opinion of the Fed Markets opened Friday with a gap down of roughly two-thirds of a percent.  They then went on a wild up-and-down whipsaw ride that lasted the rest of the day in all 3 major indices.  This left us with large-legged, indecisive candles in all three with a Doji in the SPY and Spinning Top candles in the DIA and QQQ.  On the day, SPY lost 0.59%, DIA lost 0.38%, and QQQ lost 1.20%.  The VXX was flat at 27.07 and T2122 fell deeper into the oversold territory to 7.48.  10-year bond yields spiked to 3.132% and Oil (WTI) rose almost 2% to $110.42/barrel.  This also capped the first 5-week losing streak that was the longest since 2011 in the SPY and since 2012 for the QQQ.

With essentially no economic news until Wednesday, two topics are likely to dominate the start of the week.  The first of these are various opinions about what the Fed has done (or will do) wrong and what that will mean for the economy and by extension the market.  The second topic is the market selloff that has been underway all year and just how much further it will fall before the bottom is reached.  On the latter subject, BAC put out a report this weekend saying that the average of the 19 last bear markets saw the average stock decline 37.3% from their 52-week high and lasted 289 days.  According to their analysis, 49% of Nasdaq stocks are already 50% below their 52-week high, 58% of them are down more than that 37.3% bear market average decline benchmark, and 77% of them are down at least 20%.

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CNBC reported that F is selling more than 8 million shares of RIVN (through GS) as the lock-up ended Sunday.  JPM also plans to sell between 13 million and 15 million shares on behalf of an unknown seller.  Elsewhere, Reuters reported Sunday that Shanghai has tightened and extended its lockdowns in hope of reaching a “zero Covid” goal by late May.  This is causing supply chain chaos for companies like AAPL, which has multiple major suppliers in the city.  One of those (Quanta) saw riots Thursday when rumors circulated around the factory of cases on the factory floor of that facility which houses 40,000 employees with as many as 12 people per room.  Hundreds of Quanta employees overpowered security and broke through containment fences in an attempt to escape the factory living conditions.

On the Russian invasion story, related to food prices/availability, the UN called for an end to the Russian blockade of the port of Odesa.  The stated reason is the need for Ukraine to be able to ship 25 million tons of grain, which has been waiting to be shipped since the start of the war.  At the other end of the Ag cycle, Ukraine announced this weekend that it was only able to plant about 48% of its crops this spring.  Roughly 25% of the Ukrainian grain crops normally stay in the country to feed that nation.  This means that best case, Ukraine expects to be able to export only one-third of the country’s normal grain exports…if it can ship any at all.  On the EU oil sanctions, pro-Putin Hungary continues to block bans on Russian oil despite being offered exemptions.  However, Saudi Arabia dropped prices for Asian and European customers by about $5/barrel for the month of June.  This is seen as a concession to Western pressure and a way to capture market share while offering an alternative to Russian crude. Reuters reported Sunday that LMT and RTX are now planning to nearly double (4000/year vs 2100 prior plan) the production of Javelin missiles.  The US has already sent many of those $176,000 units to Ukraine and this move is in anticipation of orders to replenish US stockpiles.

The economic news coming later this week includes 5 Fed speakers on Tuesday.  Then on Wednesday, we see Apr. CPI, Crude Oil Inventories, 10-year Bond Auction, and Apr. Fed. Budget Balance.  On Thursday we get Apr. PPI, Weekly Initial Jobless Claims, the WASDE Report, and a Fed speaker.  Finally, Friday we see Apr. Imports/Exports, Michigan Consumer Sentiment, and a couple of Fed speakers.

Overnight, Asian markets were nearly all in the red, with only Shanghai (+0.09%) managing any green at all.  Hong Kong (-03.81%), Japan (-2.53%), and Taiwan (-2.19%) led the region lower.  In Europe, we see red across the board at mid-day.  The FTSE (-1.87%), DAX (-1.78%), and CAC (-2.09%) are typical with some of the smaller exchanges down more in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a nasty gap lower at the open.  The DIA implies a -1.65% open, the SPY is implying a -1.98% open, and the QQQ implies a -2.49% open at this hour.  10-year bond yields are spiking again to 3.177% and Oil (WTI) is down 2.3% to $107.21 in early trading.

There is no major economic news scheduled for release on Monday.  However, FOMC member Bostic does speak at 8:45 am. Major earnings reports scheduled for the day include ACM, ALIT, AZUL, BNTX, CANO, CLVT, COTY, CINO, DUK, ELAN, ENR, WTRG, EXC, HGV, JLL, SPTN, TGNA, THS, TSN, and VRTV before the open.  Then after the close, AMC, EQH, BHF, BWXT, CLOV, CAPL, DNB, HI, IAC, ICUI, IFF, MCHP, MRC, NVAX, OVV, PRIM, RNG, SPG, SWX, SU, UNVR, VVV, VRM, XPO, and ZNGA report.

So far this morning WTRG, ELAN, ACM, DINO, COTY, BRPHF, KOS, and ENR have all reported beats on both revenue and earnings.  Meanwhile, CLVT missed on revenue while beating on earnings.  On the other side, DUK, PLTR, and THS have reported beating the estimates on revenue but missed on the bottom line.  Finally, IFNNY, PRTY, and VRTS reported misses on both lines.

Inflation and the fear of Central Bank and government actions to tame it seems to be the proximate cause of the hard selloff that started in Asia overnight and has spread worldwide as of premarket Eastern time. The bears have all the momentum and this feels like the market might be building towards a selling crescendo that might signal a bottom is near. We are oversold, so a bounce is possible. However, this morning feels a little like capitulation. So, smart money is not expecting that bounce. Either way, caution is still the smart play since intraday chop and volatility have been the norm recently. Don’t get caught chasing moves and be nimble enough to change your positioning quickly as needed.

Staying hedged, nimble, and measured are good things…not bad. Remember that the first rule of making big money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. You also don’t need to be in the market all the time. If this isn’t a market condition you thrive in, then get out of the way. It will settle out at some point and it’s far better to wait and have money for your market than to force yourself to trade now and be busted when things do turn. Keep in mind that nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: UVXY, SQQQ, SPXS, QID, MDLZ, KHC, MDT, PRU, JPM, GE, FAS, CCJ. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Thursday markets gapped down roughly a percent after traders had rethought their opinion of the Fed decision, statement, and the resulting short squeeze.  After the open, it was “look out below” as the bears sold the market off hard until about 3:50 pm when the bulls stepped back in hard for the last 10 minutes of the day.  This left us with large, ugly, black candles with a bit of wick at the bottom in all 3 major indices.  On the day, SPY lost 3.55%, DIA lost 3.05%, and QQQ lost a whopping 5.04%.  This made for the worst day since early 2020.  The VXX gained 8.65% to 27.00 and T2122 dropped all the way back into the oversold area at 13.01.  10-year bond yields spiked to close over 3% for the first time since 2018, closing at 3.037% and Oil (WTI) rose just under half a percent to $108.32/barrel.

During the day, Weekly Initial Jobless Claims came in higher than expected (200k vs 180k est.) and Q1 Nonfarm Productivity fell 7.5% (the largest drop in 75 years).  This drop was over 2% worse than an already bleak estimate of -5.4%.  Elsewhere, BA announced it will be moving its corporate headquarters from Chicago to Arlington VA, where it will also build a major research facility.  Having headquarters so close to Washington DC would be in line with BA being a major military contractor. However, BA said it will maintain a significant presence in Chicago and the major production facilities will remain in the Seattle and Charleston SC areas.

SNAP Case Study | Actual Trade

After the close, RSG, Z, DBX, TXRH, OPEN, FRG, CNXN, RYI, RDFN, MELI, and MTD all reported beats on both revenue and earnings.  Meanwhile, LYV, BMW, and UNM missed on revenue while beating on earnings.  On the other side, VRTX, MNST, MCK, DASH, and FOCS reported beating the estimates on revenue but missed on the bottom line.  Finally, SQ, DVA, and SHOP reported misses on both lines.

On the Russian invasion story, reports say that Russia has stolen half a million tons of grain so far and are accelerating the theft in recent days.  The same is taking place with ag equipment like combines (harvesters) and tractors.  Much of this has so far been destined for Chechnya.  The fear is that the theft will continue since Ukraine had 5 million tons of wheat and 15 million tons of corn in storage (ready for shipment by sea) in now-occupied Southern Ukraine at the start of the invasion.  This raises fears as many in Ukraine remember the Holodomor (Terror Famine) imposed on Ukraine by the Soviet Union in the 1930s as part of Stalin’s attempts to purge the region of any even potential opposition.  This could also simply be a strategy, where Russia has accumulated enough of the world grain supply to be in a stronger position to negotiate with the West when parts of the world are starving.  At any rate, this news could well influence grain commodities and input inflation for companies like ADM, BG, MGPI, GIS, ANDE, INGR, and others.

Overnight, with the lone exception of Japan (+0.69%) the Asian markets were strongly in the red.  Hong Kong (-3.81%), Shanghai (-2.16%), and Shenzhen (-2.14%) led the selloff but significant losses were seen all across the region.  In Europe, there are a couple of minor exchanges barely hanging onto the green, but again losses are widespread at mid-day.  The FTSE (-0.85%), DAX (-1.17%), and CAC (-1.47%) lead the way as usual in early afternoon trading.  As of 7:30 am, US Futures point toward a modestly down start to the day.  The DIA implies a -0.32%, the SPY implies a -0.49%, and the QQQ implies a -0.68% at this hour.  10-year bond yields are also up a bit to 3.093% and Oil (WTI) is spiking more than 2% to $110.55/barrel in early trading.

The major economic news scheduled for release on Friday includes Apr. Avg. Hourly Earnings, Apr. Nonfarm Payrolls, Apr. Participation Rate, and Apr. Unemployment Rate (all at 8:30 am).  We also get a gaggle of Fed speakers (Williams at 9:15 am, Bostic at 3:20 pm, Waller at 7:15 pm, Bullard at 7:15 pm, and Daly at 8 pm.  Major earnings reports scheduled for the day include ASIX, AES, AEE, AXL, BEP, CLMT, CI, CNK, DISH, SSP, ENB, EOG, FLR, FYBR, GLP, GT, GTN, IEP, NRG, QRTEA, SPB, SR, TU, TIXT, and VST before the open.  There are no major reports scheduled for after the close.

So far this morning CI, BCC, SPB, SR, GTN, GHLD, and TIXT have all reported beats on both revenue and earnings.  Meanwhile, ASIX, TU, FYBR, and VST all missed on revenue while beating on earnings.  On the other side, ENB, MARUY, BEP, SCRYY, FOCS, and CLMT have reported beating the estimates on revenue but missed on the bottom line.  Finally, HOCPY, ING, AHEXY, FLR, CNK, QRTEA, DISH, EGIEY, and USM reported misses on both lines.

After Thursday’s ugly session, the question is whether the market can manage to hold ground or will it give up the lows of the last week (also the last year). The bears certainly have the momentum and with the weekend ahead, risk appetite may be low on a Friday. We are oversold, so beware of an “oversold bounce.” Either way, caution is still the smart play since intraday chop and daily reversals have been the norm recently. Don’t get caught chasing moves only to be stuck in a reversal that you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Idea Today. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

However, the daily trade ideas tickers are below.

SNAP Case Study | Actual Trade

Swing Trade Ideas for your consideration and watchlist: BPT, STLD, AIZ, CAR, OXY, HAL, WRB, EPD, MRK, AAL, MOMO, HD, AMD, MMM. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Tuesday markets opened basically flat again.  All 3 major indices then road a roller-coaster the rest of the day, ending on an upswing on a very volatile day.  This left us with indecisive Doji and Spinning Top candles.  On the day, SPY gained 0.43%, DIA gained 0.15%, and QQQ gained 0.11%.  The VXX fell 1.6% to 27.05 and T2122 rose out of the oversold territory to 39.29.  10-year bond yields rose slightly to 2.987% and Oil (WTI) fell 2.3% to $102.75/barrel.

After the close, AMD, ABNB, EXR, MTCH, SWKS, PKI, PEAK, JKHY, LFUS, ENLC, CRUS, CNR, DOOR, BXC, EIX, SCI, FNMA, and SABR all reported beats on both revenue and earnings.  Meanwhile, PRU, PSA, CZR, AIZ, CNDT, BFAM, MCY, WERN, and GNW missed on revenue while beating on earnings.  On the other side, SBUX, WCN, VRSK, OKE, AMCR, YUMC, LYFT, OSH, and CRK reported beating the estimates on revenue but missed on the bottom line.  Finally, RNR, MCY, and AKAM reported misses on both lines.

Overnight, Chinese company DIDI fell more than 5% overnight as it was announced that the SEC is investigating the company related to its IPO.  Since the company was already forced to delist from the US (US shareholders got Hong Kong shares), it is not quite clear what authority the SEC has or what legal liability the Chinese company or individuals might face.  Nonetheless, the news spooked investors

SNAP Case Study | Actual Trade

On the Russian invasion story, the EU launched new sanctions to halt Russian oil sales by implementing a 6-month phase-out of Russian crude imports.  Two EU countries will be given exemptions that will allow them to continue importing Russian oil until the end of 2023.  Those are pro-Putin Hungary and Slovakia. The sanctions also include removing Sberbank (Russia’s largest bank by far) from the global SWIFT payment system.  Lastly, a new ban prohibits European countries from offering any ships, services, or insurance to any entities for the transport of Russian oil. This could hurt Russian global oil exports, but China and India could also insure and provide ships for such shipments as well to at least some extent. These moves were largely expected but might still impact global oil prices. In other effects, CNN reported overnight that the US has now expended 35% of the US supply of Javelin missiles and 25% of the Stinger missile stockpile. While not threatening to US Defense, this will result in huge new orders to RTX, which is already working with the DoD to redesign and improve (at added cost) the Stinger.

Overnight, the never-ending saga of PR maven Elon Musk continued.  He said that businesses, governments, and perhaps journalists need to start paying to access the TWTR platform.  The vague statement did not address groups like non-profits, but he did say that “casual users” would continue to have access at no cost.  Yet, TWTR has already begun rolling out a subscription service that adds new premium features like “undoing” tweets and adding bookmarks and folders.

Overnight, the Asian markets were mostly lower as mainland China was in it’s last day of holiday shutdown.  India (-2.29%) and Hong Kong (-1.10%) were big outliers to the down side with most moves very modest in size.  In Europe, stocks are nearly red across the board as the Bank of England is expected to announce a 4^th-straight rate hike on Thursday.  The FTSE (-0.62%), DAC (-0.08%), and CAC (-0.51%) are all lower in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modest green start to the day.  The DIA implies a +0.31% open, the SPY is implying a +0.34% open, and the QQQ implies a +0.26% open at this hour.  10-year bond yields are down a bit to 2.956% and Oil (WTI) is up almost 4% (on the EU-Russian oil news) to $106.19/barrel in early trading.

The major economic news scheduled for release on Wednesday includes ADP Apr. Nonfarm Payrolls (8:15 am), Imports/Exports and Mar. Trade Balance (both at 8:30 am), Apr. Services PMI (9:45 am), Apr. ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (10:30 am), FOMC Statement and FOMC Rate Decision (both at 2 pm), and the FOMC Press Conference (2:30 pm).  Major earnings reports scheduled for the day include ATI, ABC, AMRX, APG, ARKO, GOLD, BDC, BWA, BHG, EAT, BIP, BRKR, CDW, CRL, CQP, LNG, CLH, CVS, EMR, EXPI, RACE, FTS, FDP, GTES, GNRC, HZNP, IDXX, JHG, JCI, MAR, MRNA, MUR, NYT, NI, PSN, PNW, REGN, SBGI, SITE, SPR, SUN, TT, VNTR, VMC, XYL, and YUM before the open.  Then after the close, ALB, ALGT, ALL, AEL, AFG, APA, ATO, BKH, BKNG, CPE, CENTA, CF, CHK, CIVI, CTSH, CLR, CTVA, CCRN, CW, DCP, CIOD, EBAY, ET, NVST, ETSY, FLEX, GFL, GIL, GDDY, GXO, HST, IR, JAZZ, LHCG, LNC, LUMN, MANT, MRO, MMS, MET, NUS, OPAD, OTEX, PTVE, PARR, PDCE, PXD, PAA, QRVO, QDEL, O, REGI, RCII, REV, RYI, SIGI, SAVE, SFM, SNEX, TTEK, TSE, TTEC, TTMI, TWLO, and UBER report.

So far this morning, REGN, AMKBY, ABC, GNRC, BWA, UTHR, SITE, PSN, GEL, VNTR, CVS, MRNA, CDW, TT, and FTS have all reported beats on both revenue and earnings.  Meanwhile, VWAGY, VWAPY, GOLD, PDYPY, MUR, and FSNUY all missed on revenue while beating on earnings.  On the other side, UBER, NI, FDP, BHG, and KD have reported beating the estimates on revenue but missed on the bottom line.  Finally, IDXX, JHG, EAT, AMRX, and JCI reported misses on both lines.

This week we will see almost 1,500 earnings reports.  On Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

All eyes are on the Fed today, even with other news and plenty of earnings on the calendar. There could be a bit of volatility in the morning, but I would not expect any definitive moves until after Fed Chair Powell’s presser (and maybe not until it is digested, which would mean Thursday). While it is very widely expected (98.5% chance per futures betting) that we will see a half percent rate increase, just as with earnings lately, the focus will be more on the forward guidance from Powell than the actual rate news (unless it is a major shock like a three-quarters of a percent move). With all this said, for now, all we know is that the trend is still very clearly bearish and that we’ve seen a very tepid relief bounce the last 2 days. Even so, “whipsaw” has been the keyword lately. So, caution is still the smart play. Don’t get caught chasing a gap only to be stuck in a reversal that you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: CLX, XLE, SBUX, CVX, MOS, HAL, AR, FB, AMD, XOM, SLB. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Markets opened the week essentially flat Monday.  Then an early rally lasted only the first hour before a reversal into a strong sustained selloff took us to the lows at about 3 pm. This gave way to another reversal with a strong rally in the last hour taking all 3 major indices out on or near the highs of the day.  The QQQ led the afternoon rally and was the strongest of the three. This left us with indecisive candles in the large caps and a white candle with a long lower wick in the QQQ.  On the day, SPY gained 0.64%, DIA gained 0.35%, and QQQ gained 1.67%.  The VXX fell about three-quarters of a percent to 27.50 and T2122 rose but remains deeply oversold at 6.36.  10-year bond yields spiked up to 2.983% and Oil (WTI) rose over 1% to $105.70/barrel.

During the say, it was announced that the vote by a NY AMZN warehouse came down against unionizing by a huge margin.  The warehouse, which is near the one that unionized earlier this year, voted 618 opposed to 380 for unionization.  Elsewhere, AAPL was hit with another antitrust charge by the EU.  This time the charge is over the “Apple Pay” monopoly where AAPL prevents competitors of Apple Pay from accessing the iPhone hardware required to implement “contactless payments” that AAPL itself enjoys.

Europe suffered its own “flash crash” Monday with many European exchanges momentarily dropping sharply. The worst-hit exchange was in Sweden, where the trouble started. The Swedish exchange dropped as much as 25% when a trader from C entered a “fat finger” trade that caused the crash and started a cascade of exchanges halting trade momentarily. There is no word as to whether this was a “spoofing” trade, which was the cause of the most recent US flash crash and is now outlawed in the US.

SNAP Case Study | Actual Trade

After the close, DVN, SANM, MGM, CC, CAR, FMC, FANG, LEG, CBT, ANET, KMT, TA, WEC, LOGI, and CACC all reported beats on both revenue and earnings.  Meanwhile, WMB, CLX, and ARGO missed on revenue while beating on earnings.  On the other side, NXPI, KMPR, CNO, OGS, and SEDG reported beating the estimates on revenue but missed on the bottom line.  Finally, MOS, EXPE, FLS, WWD, and FN reported misses on both lines.

On the Russian invasion story, the EU has begun debating a ban on Russian oil.  It appears that Hungary’s Pro-Putin regime may be a stumbling block.  Analysts are expecting a specific exception for Hungary and perhaps Slovenia with the rest of the EU banning the import of Russian oil.  The ban may be announced as part of the 6^th round of sanctions as early as this week.  C also announced it is in active discussions to sell its Russian operations (which have been closed since the start of the Russian invasion of Ukraine.  Overnight, some US analysts began telling the press that they now expect Russian President Putin to actually declare war on Ukraine (so that he can institute a nationwide mobilization and draft more conscripts) very soon. Finally, it appears that Russia has dodged default again as at least some investors received dollar payments for their maturing bonds overnight in payments funneled through the London offices of C bank.

Overnight, the Asian markets were mostly in the red on modest moves with mainland Chinese exchanges still closed.  New Zealand (-0.92%), Taiwan (-0.56%), and Australia (-0.42%) paced the losses.  In Europe, stocks are mixed but leaning to the upside on modest moves at mid-day.  The FTSE (-0.82%) lags while the DAX (unch.) and CAC (+0.13%) are typical with a few of the minor exchanges up as much as three-quarters of a percent in early afternoon trading.  As of 7:30 am, US Futures point to a down start to the market day.  The DIA implies a -0.45% open, the SPY is implying a -0.44% open, and the QQQ implies a -0.43% open at this hour.  10-year bond yields are down slightly to 2.967% and Oil (WTI) is off 1.5% to $103.66/barrel in early trading.

The major economic news scheduled for release on Tuesday is limited to Mar. Factory Orders and Mar. JOLTs Job Openings (both at 10 am).  The FOMC Meeting also begins.  Major earnings reports scheduled for the day include AGCO, AME, ARNC, BIIB, BP, BR, CTLT, CNP, CMS, CNHI, CIGI, CMI, DK, DD, ETN, EL, EXPD, FIS, BEN, IT, GEO, HSIC, HLT, HWM, ITW, INCY, ITT, J, KKR, LEA, LDOS, LGIH, LPX, MPC, MLM, MTOR, TAP, MPLX, PARA, PFE, PGR, PEG, QSR, ROK, SPGI, SMG, SEE, SGRY, TEVA, TRI, TWI, VSH, WAT, WLK, ZBRA, and ZBH before the open.  Then after the close, ACHC, AMD, ABNB, AKAM, AMCR, AIG, ANDE, AIZ, BFAM, CZR, CWH, CDNT, EIX, THG, PEAK, KAR, LFUS, LYFT, DOOR, MTCH, MATX, MCY, MUSA, OSH, OKE, OMI, PKI, PRU, PSA, RNR, REZI, SCI, SWKS, SBUX, SMCI, VRSK, WCN, WERN, and YUMC report.

So far this morning, PFE, BNPQY, FIS, ETN, DPSGY, CHT, DD, AME, ZBH, IT, J, WLK, HWM, HSIC, SEE, ITT, MPLX, ZBRA, WAT, LPX and ATKR have all reported beats on both revenue and earnings.  Meanwhile, BP, KKR, HLT, INCY, NHYDY, TEVA, TRTN, EL, BR, and LEA missed on revenue while beating on earnings.  On the other side, BIIB, MLM, CNP, CTLT, PINC, WLKP, LDOS, and HLF have reported beating the estimates on revenue but missed on the bottom line.  Finally, SPGI, ROK, ARNC, and ETRN reported misses on both lines.

This week we will see almost 1,500 earnings reports.  The major reports coming later in the week include BKNG, CTSH, CTVA, CVS, EMR, FTNT, IDXX, JCI, MAR, MET, MRNA, PXD, O, REGN, and UBER on Wednesday.  Then on Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

As the FOMC Meeting starts, most eyes are on that conference waiting for the outcome. While it is very widely expected that we will see a half percent rate increase from the Fed tomorrow, just as much focus will be placed on exactly what the statement says and how Chairman Powell responds to questions at the presser. So, tone matters to markets. With that said, we got a lot of mostly positive earnings last night and this morning. This might help the bulls a bit, but the premarkets have not shown this yet. Remember that the trend is still very clearly bearish, but that we have seen choppy moves (white candles, intraday reversals, and plenty of wicks in the bearish trend). Caution is still the smart play. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: UPWK, CAR, ORCL, INTC, GT, GLW, QCOM, ROKU, FB, PINS, AA, PFE, FCX, CVE, MVIS, DOCU, EL. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Friday, stocks gapped down after disappointing earnings from AMZN and even more scary guidance from INTC, AMZN, and others.  After 30 minutes of finding their footing, the bears took firm control and drove markets on an all-day selloff that closed very near the lows in all 3 major indices.  This left us with big, ugly, black candles in all 3 and took the QQQ to its low of the year with SPY only 0.30% above the February 24 low.  On the day, SPY lost 3.58%, DIS lost 2.73%, and QQQ lost 4.38%.  The VXX gained 6.4% to 27.71 and T2122 dropped deep into the oversold territory at 3.27. 10-year bond yields spiked to 2.926% and Oil (WTI) fell almost 0.9% to $104.45/barrel.

On Saturday, BRKB (Berkshire Hathaway) held its annual meeting.  Among the topics discussed was the fact that BRKB bought back $51 billion worth of stock during Q1.  The company also purchased 14% of OXY ($7 billion) over a 2-week period in March and significantly added to its CVX position during Q1.  They also have bought 9.5% of ATVI (in a simple arbitrage bet for when the MSFT acquisition closes).  Charlie Munger blasted BRKB investor CalPERS for having called for organizational changes including the replacement of Warren Buffett as Chairman.  On other topics, Munger said the stock market is a “mania of speculation” and said that HOOD was “justly unraveling” for disgusting practices.  He also warned people to avoid cryptocurrencies.  For his part, Buffett as usual said he is having a lot of trouble finding anything worth buying and that he’s in a mode of “preparing BRKB for an economic stall” (hence the buying a big stake in non-cyclical oil companies).

SNAP Case Study | Actual Trade

Over the weekend, Bloomberg reported that China’s economy has slowed rapidly as its “Covid Zero” lockdowns are hurting deeply.  The lockdowns have closed factories and other businesses, kept consumers from spending, and closed transportation systems like trucking and ports.  Factory activity fell to the lowest level in 2 years with Mfg. PMI falling to 47.4 for the month.  Meanwhile, Services PMI fell to 41.9 in April (the lowest level since Feb. 2020).  China’s National Bureau of Statistics said that 19 of 21 sectors had seen a contraction over the month.  This in itself tells you how bad it is since China is notorious for painting a rosy picture in official reports.

On the Russian invasion story, US House Speaker Pelosi led a small delegation of US lawmakers to Kyiv on Sunday for talks that included Ukrainian weapons needs.  This comes in front of Congressional wrangling over President Biden’s new $33 billion aid request for Ukraine that was sent to Congress last week.  In Russia, Sunday it was disclosed that $5 million worth of farm equipment (which Russians stole from a Ukrainian DE dealership since the invasion) has been remotely disabled. Dutch Dock Workers also refused to unload a tanker of Russian oil.  More importantly, the German Econ. Minister Baerbock also announced that Germany would be free of dependence on Russian oil by this summer.  That pulls forward the timeline for that independence by at least 3-6 months from previous estimates.  This comes as the Financial Times reports Germany has now called for the EU to add a phased-in ban of Russian oil as part of a new round of sanctions on Moscow.  Bloomberg also reports that Russian state-owned Gazprom reported that its gas exports fell 22% month-on-month in April.  Despite this drop in supply, LNG prices have not spiked due to mild weather and increased supply from other sources, such as the LNG, SHEL, and TOT. Finally, as of Monday, Swedish Foreign Minister Linde said it is now all but certain that Sweden and Finland will both apply for NATO membership after weekend talks.

Bloomberg reported early this morning that Elon Musk sold another $4 Billion of TSLA stock in order to diversify and raise cash for his TWTR bid.  Most of that selling was done on Tuesday, the day TSLA stock fell 12%.  Bloomberg also says his pitch to bankers for funding for the TWTR takeover included job cuts, other cost-cutting, as well as the implementation of new ways to monetize the platform (recoup investment).  However, in a bid to prevent TSLA from sliding further, Musk also added a comment to the SEC filing, saying that he has no more plans to sell TSLA stock.

Overnight, the Asian markets were lower on mostly modest moves as all the Chinese exchanges closed for a Labor Day holiday.  Australia (-1.18%), New Zealand (-0.84%), and South Korea (-0.28%) paced the region Monday.  In Europe, stocks are nearly red across the board at mid-day, with the sole exception of London.  The FTSE (+0.47%), DAX (-0.60%), and CAC (-1.43%) are typical and lead the region as Europe digests bad Chinese data and the proposition of Energy sector sanctions on Russia.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.40% open, the SPY is implying a +0.36% open, and the QQQ implies a +0.49% open at this hour.  10-year bond yields are down slightly from Friday to 2.912% and Oil (WTI) is off almost 3% to $101.64/barrel in early trading.

The major economic news scheduled for release on Monday is limited to Apr. Mfg. PMI (9:45 am), Apr. ISM Mfg. PMI (10 am).  Major earnings reports scheduled for the day include AMG, ARLP, BRKB, CAN, EDP, FMX, GPN, GPRE, ITRI, JELD, MCO, ON, SAIA, TKR, and WEC before the open.  Then after the close, ARGO, ANET, CAR, BGCP, BXP, CBT, CC, CLX, CNO, CTRA, CVI, DVN, FANG, EXPE, FN, FLS, FMC, KMPR, KMT, LEG, LOGI, MGM, MOS, NTR, NXPI, OGS, SANM, SEDG, RIG, TA, WMB, and WWD report.

So far this morning, BRKB (Saturday), EPD, WEC, GPN, TKR, SXC, and PK have all reported beats on both revenue and earnings.  Meanwhile, AMG missed on revenue while beating on earnings.  On the other side, CAN, and MCO have reported beating the estimates on revenue but missed on the bottom line.  Finally, JELD and ARLP reported misses on both lines.

Economics news coming later this week includes Mar. Factory Orders and Mar. JOLTs Job Openings on Tuesday.  Then on Wednesday, we see ADP Apr. Nonfarm Payrolls, Imports/Exports, Mar. Trade Balance, Apr. Service PMI, Apr. ISM Non-Mfg. PMI, Crude Oil Inventories, FOMC Statement, FOMC Rate Decision, FOMC Press Conference.  On Thursday, we get Weekly Initial Jobless Claims, Q1 Nonfarm Productivity, and Q1 Labor Costs.  Finally, on Friday we see Apr. Avg. Hourly Earnings, Apr. Nonfarm Payrolls, Apr. Participation Rate, and Apr. Unemployment Rate.

This week we will see almost 1,500 earnings reports.  The major reports coming later in the week include AMD, AIG, DD, EL, FIS, HLT, ITW, KKR, MPC, PFE, PRU, PSA, SPGI, SBUX, and TRI on Tuesday.  Then Wednesday we get BKNG, CTSH, CTVA, CVS, EMR, FTNT, IDXX, JCI, MAR, MET, MRNA, PXD, O, REGN, and UBER.  On Thursday, we see APD, APO, BDX, COP, D, EOG, ILMN, ICE, MCK, MNST, MSI, PH, RSG, SRE, SQ, VRTX, WELL, and ZTS.  Finally, on Friday we get CI.

So, another heavy week of earnings has kicked off. This morning those earnings are leaning green but are more mixed than earlier reports this quarter. As has been the case recently, it is the forward guidance that most traders are waiting to hear since the bad Q1 GDP Print last week has everyone fearing recession. With that said, remember that the trend is still very clearly bearish, but that we have seen choppy moves (white candles, intraday reversals, and plenty of wicks in the bearish trend). Caution is still the smart play. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. So, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. If you’re wrong, just admit it and take your loss. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: HSY, UNG, MO, SQQQ, MMM, BAC, KO, LLY, KBH, GM, MSFT, AAPL, HD, BTU, SLB, HAL, AA, TSLA. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Thursday stocks gapped strongly higher at the open on positive earnings news.  However, they immediately faded that gap, retesting the previous close, only to reverse again at 10:30 am to start a strong rally that lasted until 3:30 pm when they sold back off a bit the last 30 minutes.  This left us with large white candles with large wicks at the bottom and smaller wicks at the top of the candle across all 3 major indices.  (Too much wick to call any of the 3 a Morning Star pattern.) On the day, SPY gained 2.52%, DIA gained 1.88%, and QQQ gained 3.55%.  However, that late-day selloff into the close gave back the T-line (8ema) in all three.  The VXX lost 4.26% to 26.04 and T2122 climbed back out of the oversold territory to 31.79.  10-year bond yields were off to 2.83% and Oil (WTI) spiked 3.24% to $105.32/barrel.

Prior to the open Thursday, Q1 GDP came in much worse than expected.  The number reported annualizes to a -1.4% GDP growth rate.  This compares to 2021 final GDP number (+6.9%) and the analysts consensus forecast for Q1 of +1.1% (annualized).  Of course, that bad number will be revised in the future.  Economists also said that this print was exaggerated by temporary problems such as the Q1 supply chain bottlenecks at West Coast ports. However, despite the “don’t panic” spin, it was clearly a bad print.  Nonetheless, markets ignored the bad news and gapped higher.  In other economic news, the Weekly Initial Jobless Claims came in just as forecast at 180k for the week.

SNAP Case Study | Actual Trade

After the close, AAPL, INTC, GILD, WDC, SYK, MHK, AJG, OLN, KLAC, CE, AVTR, FBHS, COOP, DLR, SWN, CSL, AEM, HUBG, TEX, ATR, BIO, ENSG, TEAM, BZH, SKYW, WIRE, CENX, SM, ACA, MERC, and MATW all reported beating estimates on both revenue and earnings.  Meanwhile, HIG, PFG, ATUS, CINF, LPLA, and WU missed on revenue while beating on earnings.  On the other side, AMZN, EMN, SSNC, TKC, ROKU, DXCM, and ULCC beat on revenue while missing on earnings.  However, RMD, DNZOY, LHX, HOOD, X, and CG missed on both lines. 

In other after-hours earnings-related news, AAPL significantly beat on both lines and increased its buyback program to $90 billion for 2022.  However, the company also warned of supply chain troubles (China Covid lockdowns) that could hurt Q2 numbers by between $4 billion and $8 billion.  Elsewhere, AMZN lowered guidance which raises the fear that consumers are starting to be tapped out by inflated prices. They also took a $7.6 billion loss on their RIVN stake.  In addition, INTC offered lower than expected guidance for Q2.  Finally, HOOD reported it has fewer active users and shrinking revenue due to smaller order flow that they could sell.  This is evidence that the meme stock craze and “day trading while working from home” have both decreased significantly over the last few months.

Bloomberg reported early this morning that Elon Musk sold another $4 Billion of TSLA stock in order to diversify and raise cash for his TWTR bid.  Most of that selling was done on Tuesday, the day TSLA stock fell 12%.  Bloomberg also say his pitch to bankers for funding for the TWTR takeover included job cuts, other cost-cutting, and implementing new ways to monetize the platform (recoup investment).  However, in a bid to prevent TSLA from sliding further, Musk has added a comment to the SEC filing, saying that no more sales of TSLA stock are planned.

Overnight, the Asian markets were mostly very strongly green.  Hong Kong (+4.01%), Shenzhen (+3.69%), and Shanghai (+2.41%) led the way higher. However, there were positive moves of over 1% in most exchanges.  Only India (-0.83%) showed a significant loss. In Europe, stocks are mostly modestly green at mid-day. The FTSE (+0.07%) and CAC (+0.09%) lag, but the DAX (+0.68%) is typical of the region in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap down and red start to the day.  The DIA implies a -0.44% open, the SPY is implying a -0.89% open, and the QQQ implies a -1.18% open at this hour.  10-year bond yields are trading up at 2.871% and Oil (WTI) is up over 1% to $106.61/barrel in early trading.

The major economic news scheduled for release on Friday includes Mar. PCE Price Index, Q1 Employment Cost, and Mar. Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Mich. Consumer Sentiment (10 am).  Major earnings reports scheduled for the day include ABBV, AB, AON, ARCB, AZN, BLMN, BMY, CRI, CBOE, CHTR, CVX, CL, XOM, HE, HON, IMO, LHX, LYB, MGA, NWL, NMRK, NVT, PSX, SYNH, TRP, and WY before the open.  There are no major earnings reports scheduled for after the close.

So far this morning, AZN, BMY, HON, LYB, PSX, WY, CX, and CRI have all reported beats on both revenue and earnings.  Meanwhile, CHTR, AON, SXT, and TAL all missed on revenue while beating on earnings.  On the other side, XOM, CVX, CL, and CNX have reported beating the estimates on revenue but missed on the bottom line.  Finally, CG, TIGO, and UOVEY reported misses on both lines.

The final flurry of earnings reports (in an earnings blizzard week) came last night and this morning. Again, the numbers were mostly positive, but not all were good and the devil is in the details. Also, the forward guidance (which has struck fear in many traders) has disappointed. With that said, remember that the trend is still very clearly bearish in the mid-term, despite a strong day Thursday. And whipsaw continues to be the norm recently. So, beware of a potential gap-and-reverse move after the open. Caution is still the smart play, especially with the weekend news cycle ahead. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that it’s Friday. So pay yourself. Also bear in mind that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. Also, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. So, if you’re wrong, just admit it and take your loss. Trading is not a sprint, it’s a marathon. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas today. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

On Wednesday markets went on a wild all-day roller-coaster ride, only to end up not far from where it closed Tuesday.  This left us with indecisive, long-legged Doji candles in all 3 of the major indices.  On the day, SPY gained 0.26% (mostly on the pre-market gap), DIA gained 0.16%, and QQQ lost 0.12%.  The VXX rose more than 3% to 27.30 and T2122 rose, but only to 4.15 which is still deep in the oversold territory.  10-year bond yields rose to 2.836% and Oil (WTI) rose fractionally to $102.07/barrel.

After the close, QCOM, MOH, AMGN, AFL, AVT, CHRW, PPC, DFS, URI, HOLX, HTZ, EHC, MTH, MEOH, PLXS, MAT, ICLR, NLY, FIX, MYRG, ALSN, AVB, ESBMRN, PTC, TDOC, WSC, MAA, HP, TYL, and FWRD all reported beating estimates on both revenue and earnings.  Meanwhile, FB, CYH, RE, EQIX, AXS, AR, CCS, AWK, AMED, INVH, and AUY missed on revenue while beating on earnings.  On the other side, F, PYPL, TROX, SLM, CAKE, CMPR, PINS, and NBR beat on revenue while missing on earnings.  However, ORLY, ACGL, FTI, CACI, CP, LVS, EQT, ALGN, GGG, and UCTT all missed on both lines. 

SNAP Case Study | Actual Trade

In economic read-throughs from earnings news, F saw a quarterly profit only dragged lower by its stake in RIVN.  PYPL also lowered its annual guidance, citing a pullback in consumer spending.  PPC also said that restaurant demand for chicken has returned to pre-pandemic levels.  Chinese shipping giant (container ships) Yang Ming Marine Transport said that supply chain issues may show signs of easing.  The company said the Los Angeles and Long Beach port delays have been reduced, with only a 40 ship backlog waiting to unload (10-14 days of wait time compared to weeks a few months ago).  The company also commented that new (Biden Administration) port procedures, such as requiring empty containers to be immediately moved and adding off-port storage facilities, should improve the flow even more in the second half of 2022.

FB shares are soaring this morning after missing on revenue and beating on earnings.  The proximate cause seems to be that the company reported that they have started growing its number of users again. Among other big pre-market gainers we see CTMX, ENDP, FNGU, LC, MXL, and NOW.  Among big pre-market losers we find ALGN, AMGN, BTU, CPZ, FLWS, FNGD, JKS, ORLY, SOXS, SQQQ, SWK, TDOC, TECS, UVXY, and VLON.

Overnight, the Asian markets were nearly green across the board.  Only Shenzhen (-0.23%) showed any red while Japan (+1.75%), Hong Kong (+1.65%), and Australia (+1.32%) led the way higher.  In Europe we see the same picture taking shape at mid-day.  Only Finland (-0.05%) shows any red.  Meanwhile, the FTSE (+1.04%), DAD (+1.44%), and CAC (+1.66%) are leading the continent higher in early afternoon trading.  AT 7:30 am, US Futures are pointing toward a strong gap higher at the start of the day.  The DIA implies a +0.91% open, the SPY is implying a +1.61% open, and QQQ implies a +2.29% open on earnings-fueled strength.  10-year bond yields are back down a tad to 2.819% and Oil (WTI) is off fractionally to $101.55/barrel in early trading.

The major economic news scheduled for release on Thursday is limited to Q1 GDP and Weekly Initial Jobless Claims (both at 8:30 am).  Major earnings reports scheduled for the day include FLWS, AOS, AIMC, AEP, AIT, ARES, ABG, BAX, BFH, BC, CARR, CAT, CHD, CNX, CMCSA, DPZ, DTE, LLY, EME, FAF, FCNCA, FCFS, FTV, FCN, GTX, GOL, GFF, HSY, HUN, IP, IPG, IRM, JKS, KBR, KDP, KEX, LH, LAZ, LECO, LIN, LKQ, MDC, HZO, MA, MCD, MD, MRK, NLSN, NOK, ORI, OPCH, OSTK, PATK, PBF, BTU, PCG, PBI, POR, PHM, RLGY, RS, SNY, SNDR, SIRI, SAH, SO, LUV, SWK, SRCL, TROW, TFX, TPX, TXT, TMO, TNL, TWTR, VIRT, VC, GWW, WBS, WST, WEX, WTW, and XEL before the open.  Then after the close, AEM, LNT, ATUS, AMZN, AAPL, ATR, ACA, AJG, TEAM, AVTR, BZH, BIO, CSL, CE, CENX, CLW, COLM, DXCM, EMN, WIRE, ENSG, ERIE, FSLR, FBHS, ULCC, GILD, HIG, HUBG, INTC, KLAC, LPLA, MTX, MHK, COOP, NOV, OLN, OMF, PFG, RMD, ROKU, SKYW, SM, SWN, SSNC, SYK, TEX, TFII, X, WFG, WDC, and INT report.

So far this morning, CMCSA, MRK, CAT, SNY, TMO, LIN, LLY, NOK, MO, SO, IP, MCD, PBF, CARR, AEP, CTE, XEL, LKQ, SCMMY, BAX, KDP, RS, PHM, HSY, IPG, SIRI, LUV, FAF, HUN, BC, CHD, MDC, IRM, TPX, VIRT, AIT, AOS, VC, LAZ, TFX, HZO, KEX, FCNCA, AIMC, MD, WEX, and FCFS have all reported beats on both revenue and earnings.  Meanwhile, NOC, SWK, LH,, ABG, KBR, NLSN, and WST all missed on revenue while beating on earnings.  On the other side, FAF, TROW, JKS, GTX, ERJ, ARES, TNL, POR, CNX, and PTEN have reported beating the estimates on revenue but missed on the bottom line.  Finally, SAH, SRCL, OSTK, FLWS, and STRA all reported misses on both lines.

Once again we saw a blizzard of earnings last night and this morning. For the most part, this was a good report card for stocks and markets reflect a renewed optimism before the open today. However, remember that the trend is still very clearly bearish, we were very over-extended to the downside as of yesterday’s close, and a ride on the whipsaw has been normal recently. So, beware of a potential pop-and-drop or at least the possiblity that a bull move could be nothing but a relief rally. Also keep in mind that there are still more earnings to come, including AAPL and AMZN after the close today. My point is that we need to be cautious. Don’t get caught chasing a gap only to be caught in a whipsaw you are not prepared to weather.

Remember that the first rule of making big money in the market is to not lose big money in the market. Staying hedged, nimble, and measured are good things…not bad. Also, don’t be stubborn, and protect yourself from yourself. Nobody is right all the time. So, if you’re wrong, just admit it and take your loss. Trading is not a sprint, it’s a marathon. Just focus on your process and enjoy yourself. Stick with your trading rules and manage the things that you can control while trying not to worry about the things you have no control over at all. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: LUV, V, GSK, BTU, MCD, FB, SWK, RHI, IP, DAL, MMM. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service

Stocks gapped down about six-tenths of a percent on Tuesday, following Asia and Europe on fears of Covid’s impact through China on the global economy.  Markets then proceeded to sell off all day long.  With that said, the morning and last hour selloffs were much stronger than the mid-day drift lower.  This left us with big, ugly, black candles that were essentially Marubozu (shaved head) candles that closed on the lows.  On the day, SPY lost 2.78%, DIA lost 2.35%, and QQQ lost a whopping 3.77%.  The VXX gained 6.25% to 26.35 and T2122 dropped deep into the oversold territory at 2.88.  10-year bond yields fell sharply to 2.743% and Oil (WTI) spiked 3.7% to $102.14/barrel.

During the day, the US Senate confirmed Lael Brainard as Vice-Chair of the Fed, making her the country’s top banking regulator as well.  This may be of note inasmuch as she has been the lone vote against easing bank regulation on several previous Fed votes.  In other economic news during the day, March Durable Goods Orders, Conf. Board Consumer Confidence and March New Home Sales all came in slightly below the expected number.

In a follow-up to the Elon Musk, TWTR, and TSLA story, it appears traders believe that having his attention split again (between TSLA, SpaceX, Boring Company, and now TWTR) will hurt TSLA.  TSLA stock fell 12.19% on the day (wiping out $129 billion in market cap in the process).  This came on top of the half a percent pullback the stock put in after the announcement on Monday afternoon.

SNAP Case Study | Actual Trade

After the close, MSFT, V, TXN, TNET, TER, MDLZ, MTDR, BHE, JBT, EXAS, CB, EW, COF, AGR, CMG, RHI, RUSHA, SKX, HA, BYD, DHX, FFIV, and ENPH all reported beating estimates on both revenue and earnings.  Meanwhile, GM, MKSI, and CHE missed on revenue while beating on earnings.  On the other side, JNPR and HA beat on revenue while missing on earnings.  However, GOOG, GOOGL, FANUY, and EQR missed on both lines.  With that said, GOOG/GOOGL also announced a $70 billion share buyback program (up from $50 billion last year).  Finally, despite missing on revenue and citing supply chain issues, GM maintained its revenue forecast for the year and raised its earnings outlook.

In non-earnings news after the close, HOOD announced it is laying off 9% of its full-time staff.  The company claimed the layoffs were to get rid of redundancy caused when they grew too fast last year.  Elsewhere, it was also announced that AMZN will not face any OSHA penalties stemming from the 2021 tornado-related collapse of its Illinois warehouse.  In electric car news, LCID announced that they have received an order for 100,000 cards from the Saudi Arabian government.  GM also announced that they have now received 140,000 reservations for their Chevrolet Silverado EV.  The latter two announcements were clearly responses to F announcing massively increased electric F-150 as well as other EVs (600k by 2023 and 2 million by 2026).

On the Russian invasion story, Russia is ratcheting up tensions with the West in a game of chicken.  Russian Foreign Minister Lavrov went so far as to say the threat of nuclear war was “very, very real.”  Later in the day, Russia decided to cut its supply of gas going to Poland and Bulgaria. The suspension was ostensibly because the two countries refuse to change their contracts to pay in Rubles instead of the dollars that are specified in the contracts.  However, another potential reason is that Poland has recently given heavy weapons (tanks, artillery, and perhaps Mig jets) to Ukraine.  For their part, former close Russian ally Bulgaria has led efforts in the EU to sanction Russia and has raised funds to help Ukraine strengthen its defenses.  Elsewhere, for the first time, German Economic Minister Habeck said that a full embargo on Russian oil would be manageable.  Finally, the Justice Dept. also announced after the close that it will be seeking additional authority from Congress to seize and sell Russian assets. Attorney-General Garland said he hopes for the authority to give the proceeds of those sales directly to Ukraine.

Overnight, the Asian markets were mostly red, with the exception of mainland China.  Taiwan (-2.05%), Japan (-1.17%), and South Korea (-1.10%) passed the widespread losses.  However, Shenzhen (+4.37%) and Shanghai (+2.49%) were clear outliers and the only appreciable green in the region. (The China rally came as official data showed that Chinese industrial profits rose 8.5% in Q1. This result shocked analysts who were expecting Covid-related slowed profits.)  In Europe, stocks are green across the region at mid-day, with the lone exception of Greece.  The FTSE (+0.83%), DAX (+0.25%), and CAC (+0.44%) lead the way on market-cap and volume.  However, some of the smaller exchanges are moving more (especially Russia at +3.01%) in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap higher at the start of the day.  The DIA implies a +0.90% open, the SPY is implying a +0.67% open, and the QQQ implies a +0.54% open at this hour.  10-year bond yields are up a bit to 2.767% and Oil (WTI) is up fractionally to $101.99/barrel in early trading.

The major economic news scheduled for release on Wednesday includes Mar. Trade Balance and Mar. Retail Inventories (both at 8:30 am), Mar. Pending Home Sales (10 am), and Crude Oil Inventories (10:30 am).  However, there is a blizzard of major earnings reports scheduled for the day including AMT, APH, ADP, BA, BSX, BG, CVE, GIB, CHKP, CHEF, CME, CSTM, DAN, ETR, EEFT, EVR, FISV, GRMN, GD, GPI, HOG, HELE, HES, HUM, IQV, KHC, MHO, MKL, MAS, NSC, ODFL, OSK, OC, PAG, PRG, ROL, R, SABR, STX, SLGN, SPOT, SHOO, STM, TMUS, TMHC, TEL, TECK, TDY, TRN, UMC, VRT, WNC, and WAB before the open.  Then after the close, AFL, ALGN, ALSN, AMED, AWK, AMGN, AR, ASGN, AVB, AVT, AXS, BMRN, CHRW, CACI, CP, CG, CLS, CCS, CAKE, FIX, CYH, DFS, ESI, EHC, EQT, EQIX, RE, F, GGG, HP, HTZ, HOLX, ICLR, INVH, JBSS, LVS, MAT, MTH, FB, MEOH, MAA, MOH, MYRG, NBR, NEX, ORLY, PYPL, PPC, PINS, PLXS, PTC, QCOM, RJF, RRX, NOW, SAVE, FTI, TDOC, TROX, UCTT, URI, WFRD, WSC, and AUY report.

So far this morning, CNC, UPS, VLO, ADM, GE, PEP, MMM, UBS, DHI, SHW, WM, GLW, ATLKY, AVY, GPK, ROPST, So far this morning, AMT, HUM, BG, GSK, GD, KHC, ADP, TEL, STM, GPI, BSX, ASAZY, SPOT, GIB, DAN, OC, CSTM, TMHC, DASTY, CME, EVR, HELE, WNC, and SHOO have all posted beats on both revenue and earnings.  Meanwhile, TMUS, DB, TECK, UMC, and TDY all missed on revenue while beating on earnings.  On the other side, VRT, CVE, MKL, ETR, and CHKP have reported beating the estimates on revenue but missed on the bottom line. Finally, BA, CS, EEFT, HOG, LYG, RNECY, TLSNY, TRN, and WAB all reported misses on both lines.

Another huge wave of largely good earnings leads the news today. Elsewhere, Europe is so far shrugging off the risks posed by Russia cutting natural gas supplies to two European nations as well as the Germans saying a Russian oil embargo would be “manageable.” With that said, despite backing off overnight highs, it looks like we are back in the “day-to-day chop” mode…at least at the start of the day. Also remember, that despite yesterday being an exception to the rule, we have been experiencing intraday reversals a lot lately. So, do not get caught in any whipsaw you are not prepared to weather. Respect the market condition and continue to be cautious. Don’t be in a hurry to chase gaps and early moves. It is better to give up a little of the move than to have to suffer through reversal pains after you jump early.

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

Ed

Swing Trade Ideas for your consideration and watchlist: No Trade Ideas today. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

Disclosure: We do not act on all trades we mention, and not all mentions acted on the day of the mention. All trades we mention are for your consideration only.

Free YouTube Education  •  Subscription Plans • Private 2-Hour Coaching

DISCLAIMER: Investing / Trading involves significant financial risk and is not suitable for everyone. No communication from Hit and Run Candlesticks Inc, its affiliates or representatives is not financial or trading advice. All information provided by Hit and Run Candlesticks Inc, its affiliates and representatives are intended for educational purposes only. You are advised to test any new trading approach before implementing it.  Past performance does not guarantee future results.  Terms of Service