Inflation Puts Fed in Focus As Meet Starts

Markets made a small gained on Monday in a tighter than average trading range.  The large-caps printed indecisive candles with the QQQ being the most bullish of the bunch.  On the day, SPY gained 0.20%, DIA lost 0.16%, and QQQ gained 0.66%.  The VXX fell eight-tenths of a percent to 39.84 and T2122 remained well into overbought territory at 92.41.  10-year bond yields rose slightly to 1.567% and Oil (WTI) fell a third of a percent to $61.92. 

Commodity prices are soaring with Corn futures hitting their highest price in at least 7 years Monday and Copper reaching a decade high.  In unrelated news, Bloomberg reports oil refineries such as XOM, MRO, VLO, COP are now back to running at 2019 levels as they anticipate a normal summer demand curve and are stockpiling gasoline. In an interesting currency move, Russia sells more than half of its exports in Euro terms rather than in Dollar terms.  This includes the bulk of their trade with China. This “de-dollarization” will definitely reduce the impacts of future US sanctions. However, the dollar still reigns supreme (ease of use) globally. So, full Russian conversion to a Euro-based export economy is not expected. 

After the close, TSLA posted a beat on both the top and bottom lines.  This includes a 74% increase in revenue from a year ago (but only beat by $100 million).  LYFT also announced plans to sell its self-driving unit to Japanese carmaker Toyota for $550 million in cash (deal will also reduce LYFT operating expense by $100 million/year).

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,875,045 confirmed cases and deaths are now at 586,611.  The number of new cases has ticked lower again and are back down below the peak level from last summer to an average of 58,300 new cases per day. The same is true of deaths, which are trending down again, now at 715 per day.  The CDC announced Monday that the number of vaccinations done in the US fell for the second straight week, although 59% of Americans have received at least one shot.  This is a major concern as the CDC reports surveys show over a quarter of Americans do not intend to get vaccinated and 73% of the unvaccinated would refuse the JNJ shot.  Experts say herd immunity will require 70-85% of the population to be vaccinated.  Still, Dr. Fauci (NIH) kept an upbeat outlook in his Monday press conference, saying we could reach a turning point in the pandemic within a few weeks…if we can maintain the recent rate of vaccinations.

Globally, the numbers rose to 148,581,460 confirmed cases and the confirmed deaths are now at 3,136,635 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is now at the all-time peak and with 824,434 new cases per day.  Mortality, which lags, is also rising sharply again at 12,884 new deaths per day.  The White House confirmed Monday that the country will share the (unapproved in the US) AZN vaccine stockpile with poorer countries.  In other cooperation, many countries have offered oxygen and equipment to India, but much of it will arrive too late for the immediate crisis in New Delhi and Mumbai.  Meanwhile, in Europe, the EU has filed a lawsuit against AZN for breaching its contract on deliveries.  Finally, Turkey has announced its strictest lockdown to date, but put off the start until Thursday. 

Overnight, Asian markets were mixed, but mostly red on modest moves.  Malaysia (-1.03%), and Japan (-0.46%) led the losses while India (+1.16%) and Shenzhen (+0.23%) paced the gains.  In Europe, we see a similar picture with only Denmark (+1.39%) showing appreciable gains while the FTSE (-0.13%), DAX (-0.32%), and CAC (-0.15%) are much more typical at this point in the day.  In the US, as of 7:30 am, US Futures are pointing to an open on the green side of flat.  The DIA is implying a +0.07% open, the SPY implying at +0.11% open, and the QQQ implying a +0.14% open at this hour.

The major economic news scheduled for Tuesday is limited to Conf. Board Consumer Confidence (10 am).  Major earnings reports on the day include MMM, ABB, ADM, ABG, BP, CNC, GLW, CEQP, DTE, EBIX, ECL, LLY, ENTG, FSV, FISV, GE, GPK, HAS, HUBB, IVZ, JBLU, LECO, MMC, NVS, PCAR, PII, PHM, RTX, ROP, ST, SHW, SYF, TRU, UBS, UPS, AND WM before the open.  Then after the close, AMD, GOOGL, AMGN, ACGL, BXP, BYD, CHRW, COF, CHE, CB, EIX, EQR, FFIV, GOOG, ILMN, JNPR, MATX, MXIM, MSFT, MDLZ, MRC, NCR, NOV, OLN, OKE, PFG, RXN, SBUX, SYK, FTI, TER, TX, TFII, V, and YUMC report.

A boatload of earnings and the beginning of the Fed meeting that starts today are likely to drive markets Tuesday. While there are more rumbling on taxes (this time on breaks proposed to be given to lower income Americans), that is just talking points now and not a likely market driver. So, while the bulls have the momentum, we have to watch the resistance above that seemed to put up a fight yesterday.

Stay on the right side of the trend, do not predict reversals, but also avoid chasing trades you have missed. Continue to respect support and resistance, but that does not mean assuming it will hold. (Just lock in profits or be prepared to watch at those levels.) As always, keep taking your goals off the table when you achieve them and maintain your discipline by following those trading rules. Don't let your emotions run away with you. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: WKHS, TLRY, FCEL, CGC, SOLO, PLUG, NKLA, SKLZ. You can find Rick's review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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 PlansPrivate 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

China Inflation and Infrastructure Turn

Markets opened mostly flat and then put in a steady rally almost all day.  However, a selloff the last 15 minutes showed profit-taking to end the week.  Nonetheless, all 3 major averages put in strong white candles and created potential Fig Newton type patterns.  On the day, SPY gained 1.08%, DIA gained 0.68%, and QQQ gained 1.26%.  The VXX started with a 1-for-4 split to open at 41.36, but then sold off almost 4% to close at 40.17 and T2122 rose deeper into the overbought territory at 95.67.  10-year bond yield closed up slightly to 1.56% and Oil (WTI) gained 1% to $62.04/barrel.

US Markets may see China as a forerunner of what is to come in the US.  That country has reported record growth in the 1st quarter with a strong recovery underway.  However, Sunday night Bloomberg also reported Chinese April factory inflation is running far ahead of analyst expectations based on surveys of 500 Chinese small and medium-sized enterprises.  If US markets see that as an indication of the future for the US, the bulls may have a tough row to hoe.

Speaking of potential causes of future inflation, there was a twist in the Infrastructure plan plot on Sunday. Key Democratic Senator (a party rebel) Manchin praised the GOP $568 billion “counter-proposal” to the Democratic $2.25 trillion plan.  However, on the same day, Republican Senator Graham told Fox News that GOP Senators were ready to back as much as $900 billion in a stimulus package.  This could be additional evidence that some infrastructure improvement plan will get passed this time.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,824,389 confirmed cases and deaths are now at 586,152.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 57,208 new cases per day.  However, deaths are just starting to plateau again, now at 724 per day.  After the close Friday, the CDC lifted the pause on JNJ vaccine use, which will help with shortages.  However, a drop in vaccine demand had already become more than a bit concerning and could become the primary obstacle to herd immunity as early as May according to Dr. Fauci (NIH).

Globally, the numbers rose to 147,874,851 confirmed cases and the confirmed deaths are now at 3,124,681 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is now at the all-time peak and with 818,823 new cases per day.  Mortality, which lags, is also rising sharply again at 12,742 new deaths per day. The situation is India has become dire as the country broken the global record for new cases for the 5th straight day.  The world has started mobilizing to send oxygen and other aid to that country.  However, in Europe, the UK and the Netherlands have further eased restrictions.

Overnight, Asian markets were mixed.  Taiwan (+1.57%) and South Korea (+0.99%) led gainers while Shanghai (-0.95%) and Shenzhen (-0.89%) passed the losses.  In Europe, markets are mixed, but lean green in modest trading so far today.  The FTSE (+0.14%), DAX (-0.07%), and CAC (+0.15%) are indicative of the continent.  Only Greece (+1.69%) has moved more than a percent so far today.  As of 7:40 am, US Futures are pointing to a mixed and relatively flat open.  The DIA is implying a +0.10% open, the SPY implying a -0.09% open, and the QQQ implying a -0.36% open.

The major economic news scheduled for Monday is limited to Mar. Durable Goods Orders (8:30 am).  Major earnings reports on the day include ACI, CHKP, LII, and OTIS before the open.  Then after the close, AMP, AMKR, AXTA, BRO, CDNS, CNI, LU, MKSI, NXPI, OMF, PKG, RRC, SBAC, SSNC, TSLA, and UHS report.

Ahead of a big week of earnings, another Fed Meeting, and other major economic news, markets may be a little uncertain this week. The bulls have the longer-term momentum, but the last week was a choppy sideways slog. Looking at it more broadly, we are still very near the highs and still quite extended after the early April run. Fear remains very low, considering where we are and what we've seen the last week. So, trade accordingly.

Follow the trend, do not predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: LAZR, VLDR, PLUG, FCEL, UAVS. 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

|607% in just 24 months |

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 PlansPrivate 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

Supreme Court Limits Watchdog Agencies

Markets opened flat on better than expected (lower) Weekly Jobless Claims.  However, stocks spent the morning just on the res side of flat. Then about 1pm Bloomberg reported that President Biden is considering a capital gains tax hike on wealthy Americans. That led to an immediate selloff, reaching the lows of the day about 2pm. After that markets ground sideways again into the close.  The led to Bearish Harami candles on all 3 major indices.  On the day, SPY lost 0.91%, DIA lost 0.93%, and QQQ lost 1.21%.  The VXX gained well over 6% to 10.47 and T2122 fell, but remains inside the overbought territory at 82.69.  10-year bond yields fell again to 1.543% and Oil (WTI) rose half a percent to $61.64/barrel.

The Bloomberg report said that the Biden proposal would raise Capital Gains tax to 43.4% for the wealthiest 0.03% of Americans with the rate being 39.6% for those earning more than $1 million per year.  In other Washington news, the Senate GOP announced their own $568 billion Infrastructure plan to counter President Biden’s $2.3 trillion package.  The plan came in a bit smaller than expected since GOP Senators have been talking with reporters about a $600-$800 billion plan in recent days. However, at least it is something since Senate Republicans have repeatedly killed infrastructure packages in the last couple of years.  So, this announcement likely signals that some package will get passed this time.  The obvious differences between the GOP and Democratic plans are that the Republic version does not contain money for elderly and disabled, manufacturing industry funds ("green" industries, research, and technology like chipmaking), affordable housing, and also includes about $70 billion less than the Democratic plan for the things that are covered.

In other news, the US Supreme Court has severely limited government agencies (FTC in the specific case) to extract economic relief for consumers or impose sanctions on businesses, even when fraudulent or monopolistic business practices are used.  FB had filed a motion in favor of the eventual ruling saying the FTC has no power to force divestiture in its ongoing antitrust case related to their purchase of WhatsApp and Instagram despite findings of monopolistic actions.  GOOG did not file in the case, but faces a similar FTC action related to their search and search advertising operations. The major telecom companies and ISPs also will benefit from this ruling.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,669,121 confirmed cases and deaths are now at 584,226.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 64,204 new cases per day.  However, deaths are just starting to plateau again, now at 730 per day.  Texas A&M University announced on Thursday that they have detected a new variant that shows signs of resistance to the mechanisms of existing vaccines.  It also shows sign of being more contagious and causing more severe illness than the earlier variants.  The rate of US vaccinations has also dropped with some states now having more supply of vaccine than demand for shots.

Globally, the numbers rose to 145,453,767 confirmed cases and the confirmed deaths are now at 3,088,267 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is now at the all-time peak and with 806,371 new cases per day.  Mortality, which lags, is also rising sharply again at 12,196 new deaths per day. Pakistan called out its army to enforce restrictions and guidelines as the country has run low on oxygen supplies.  Neighboring India is supplying hospitals with only two hours’ worth of oxygen at a time as supplies are still critical in the state containing New Delhi.  In Germany, the government is pulling the “emergency brake” law and will lockdown most of the country again as of Saturday.

Overnight, Asian markets were mixed again, but leaned strongly to the green side.  Taiwan (+1.19%) and Hong Kong (+1.12%) were the biggest gainers with Thailand (-0.93%) and Japan (-0.57%) leading the losses.  However, in Europe, so far this morning markets are red across the board on modest moves.  The FTSE (-0.52%), DAX (-0.38%), and CAC (-0.26%) are typical of the continent.  As of 7:30 am, US Futures are pointing to an open on the green side of flat.  The DIA is implying a +0.12% open, the SPY implying a +0.21% open, and the QQQ implying a +0.14% open at this point.

The major economic news scheduled for Friday includes Mfg. and Services PMI (both at 9:45 am) and Mar. New Home Sales (10 am).  Major earnings reports on the day include AXP, ALV, HON, KMB, RF, and SLB before the open.  There are no major earnings reports after the close.

The bears had their moment as the initial reaction to the Capital Gains tax for the extremely wealthy hit the news. However, the selloff was not dramatic in a broader sense and price remains right in the range of the slight pullback we have seen this week. So, looking at it more broadly, we are still very near the highs and only have seen a relief pullback. Certainly, no new trend has formed yet. Fear remains very low and the market is still extended, but bullish. So, trade accordingly..

Continue to fight the FOMO. Follow the trend, do not predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: KKR, SKLZ, SLV, NKLA, VXX. 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

|607% in just 24 months |

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 PlansPrivate 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

PreMarket Waiting on Jobless Claims

Markets opened up just on the South side of flat and the bulls were in-charge the rest of the day on a slow, protracted rally that closed near the highs.  This reversed the 2-day losing streak and left us with Bullish Engulfing candles in the SPY, DIA, and QQQ.  On the day, the SPY and DIA both gained 0.92% and the QQQ gained 0.86%.  The VXX fell over 5% to 9.84 and T2122 shot back up well into the overbought territory at 92.89.  10-year bond yields fell again to 1.554% and Oil (WTI) fell over 2.5% to $61.08/barrel.

In follow-up to the Archegos fund over-leverage collapse, Credit Suisse (one of the major lenders allowing Archegos to lever up) reported a $275 million loss for the quarter and expects to take another $650 million hit next quarter from the same event.  In related news, the SEC has begun an investigation of US funds regarding leverage disclosures and both the House and Senate Banking Committees have begun research into large US banks that fund such derivative leverage.  This will include testimony from the CEOs of JPM, BAC, C, WFC, GS, and MS in late May.

Commodity prices are spiking recently. Interestingly, not so much for commodity input prices. For example, raw wood (logs) have not gone up, but cut lumber prices have gone through the roof. Regardless, so far this earnings season, most of the major companies reporting have been saying they now have “pricing power.” (Meaning they feel public expectations are going to allow them to increase prices to improve profits in quarters to come.)  This includes KO, PG, CLX, etc.  CNBC had a couple of analysts on air last night saying they expect AMZN will also have that pricing power and is likely to raise prices to increase profit soon.  If they do so, that trend will almost immediately be followed by WMT, TGT, and other retailers.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,602,051 confirmed cases and deaths are now at 583,330.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 65,239 new cases per day.  However, deaths are just starting to plateau again, now at 736 per day.  The White House announced that we have now exceeded 200 million vaccination jabs given accounting for more than 51.5% of adults having one jab.  In fact, the CDC says 26% of the entire population is now fully vaccinated.

Globally, the numbers rose to 144,561,695 confirmed cases and the confirmed deaths are now at 3,074,781 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and are now at an all-time peak and with 799,520 new cases per day.  Mortality, which lags, is also rising sharply again at 12,258 new deaths per day. India reported a new record number of cases (surpassing the worst day in the US) with nearly 315,000 new cases. 

Overnight, Asian markets were mixed be mostly green.  Japan (+2.38%) was an outlier to the upside, but most exchanges in the region reported modest gains.  Exceptions included Thailand (-0.75%), Taiwan (-0.61%), and Shanghai (-0.23%).   In Europe, so far today, with the exception of Russia just on the red side of flat, markets are green across the board.  The FTSE (+0.07%) is flat, while the DAX (+0.44%) and CAC (+0.63%) are up as of mid-day.  At 7:30 am, US Futures are pointing to an open on the red side of flat, albeit before the Weekly Jobless Claims are released.

The only major economic news scheduled for Thursday are those Weekly Jobless Claims (8:30 am) and Mar. Existing Home Sales (10 am).  Major earnings reports on the day include ALK, ALLE, AAL, AEP, T, BIIB, BX, CLF, DHI, DHR, DOW, FAF, FCX, GPC, HCA, HBAN, IQV, NUE, ODFL, ORI, PNR, POOL, DGX, RS, SAP, SNA, SON, LUV, TAL, TSCO, TPH, UNP, VLO, and WSO all before the open.  Then after the close, CSL, CE, FE, INTC, MAT, STX, AKX, SNAP, and SIVB report.

Even with the bulls stepping back into the market Wednesday, there has not been a lot of energy in markets this week. Markets are back to approaching the recent all-time highs and are extended again on a modest move. So, just as I warned of getting all-in on the short side yesterday, I think we need to be careful getting giddy on the long side today. Fear remains extremely low in an extended market. So, the risk of a more significant and abrupt relief pullback remains.

Remember, you don't have to jump in or jump out. Maybe dipping a toe or starting small is a more reasonable approach to this market at this point. Fight the FOMO. Follow the trend, do not predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: FSR, GLW, HPQ, LULU. 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

|607% in just 24 months |

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 PlansPrivate 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

NFLX Subscriber Miss = ReOpening Shift?

Markets gapped down slightly on Tuesday and then followed-through most of the morning before grinding sideways in a tight range the rest of the day.  This left us with a black Spinning Top indecisive candle in all 3 major indices on a so-far mild pullback of just over one percent.  On the day, SPY lost 0.70%, DIA lost 0.77%, and QQQ lost 0.73%.  VXX gained two percent on the day to 10.40 and T2122 fell a bit to 44.30, still in the midrange.  10-year bond yields fell significantly again to 1.562% and Oil (WTI) dropped 1.2% to $62.61/barrel.

After hours, NFLX reported a huge miss on subscriber numbers for Q1, despite a 24% gain in revenue and a strong beat on earnings.  AAL also announced plans to begin hiring pilots again as travel continues to pick up.  These both may be bellwethers of a market shift into reopening plays. Earlier in the afternoon, AAPL said they will begin enforcing the iPhone privacy changes FB has been fighting as of next week. This morning, GS has upgraded NCLH on the expectation of a resumption in cruises later this year.

New mortgage demand jumped almost 9% as rates fell to almost a two-month low.  This was the first increase in mortgage applications since February.  Refinance applications jumped 10%, but remained 23% lower than one year ago.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,536,470 confirmed cases and deaths are now at 582,456.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 67,151 new cases per day.  However, deaths are just starting to plateau again, now at 747 per day.  All Americans 16 and older are eligible for vaccination as of Monday.  In bad news for JNJ on the PR front, as both the CDC and CNBC reported that the company lied to the public when it claimed that the competing vaccines from PFE and MRNA also have caused clotting issues.  JNJ cited a study from Brown University, the lead author of which told CNBC there was no such finding or any problems whatsoever were found for any vaccines other than the one from JNJ.

Globally, the numbers rose to 143,663,051 confirmed cases and the confirmed deaths are now at 3,060,651 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is very near the all-time peak and are now at 789,158 per day.  Mortality, which lags, is also rising sharply again at 12,196 new deaths per day.  The WHO announced that the world has had more cases this week than any previous week since the beginning of the pandemic.  Nonetheless, the Netherlands announced easing restrictions on April 28.  JNJ vaccine shipments will resume in the EU, Norway, and Iceland after completion of the European clotting investigation. Meanwhile, in India the situation is getting desperate as the country reported another new high number of cases, hospitals are over capacity and the state containing Mumbai reported at least 22 deaths of people waiting for oxygen as supplies have been depleted.

Overnight, Asian markets were nearly red across the board.  The only green in the region was Shenzhen (+0.35%).  However, Japan (-2.03%), Hong Kong (-1.76%), and South Korea (-1.52%) were more representative.  In Europe, markets are mixed, but lean to the green side so far in the day.  Russia (-1.02%) leads the losses, but the FTSE (+0.46%), DAX (+0.24%), and CAC (+0.71%) are more typical of the continent at mid-day.  As of 7:30 am, US Futures are pointing to a flat open.  The DIA is implying a +0.04% open, the SPY implying a +0.02% open, and the QQQ implying a -0.14% open.

The only major economic news scheduled for Wednesday is Crude Oil Inventories at 10:30 am.  Major earnings reports on the day include ANTM, ASML, BKR, ERIC, FHN, HAL, KNX, LAD, NDAQ, NEE, NVR, RCI, TEL, and VZ before the open.  Then after the close, CACI, CP, CMG, CCI, EFX, KMI, LRCX, LSTR, LVS, PLXS, RHI, RUSHA, SNBR, STC, UFPI, VMI, and WHR report.

Despite the mild (controlled?) pullback of the last two days, the bears do not seem to have overpowering momentum. This feels like a normal relief pullback in a rally. Certainly the market has been extended on its strong run since the tail-end of March. However, there is a possibile support level just below and if the uptrend has been broken, it was a tightly-drawn trendline for sure. And we definitely have not bult a downtrend (which requires lower highs and lower lows). So, unless you are sure we are now in a bear trend, you might think twice before getting all-in on the short side.

Remember, cash is a valid position. We don't have to trade every day or week for that matter. Make sure we have a trend and follow it. Do not predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: GDX, BTG, SSRM, KGC, NUGT. 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

|607% in just 24 months |

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 PlansPrivate 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

TSLA Trouble, KO Beats On Strong Demand

Markets made a small gap higher at the open Friday and then ground sideways in a flat session to end the week.  That left all 3 major indices in indecisive Doji candles, but also closing at new all-time high closes.  On the day, QQQ gained 0.12%, SPY gained 0.33%, and DIA gained 0.41%.  VXX fell a bit again to 9.81 and T2122 rose slightly further into the overbought territory at 88.82.  10-year bond yields fell again to 1.59% and Oil (WTI) fell half a percent to $63.07/barrel.

On Friday TSM released its annual report saying that trade tensions may well make the global chip shortage worse.  Taiwan (particularly TSM) is already stuck between Chinese and American blacklists.  However, the company warns that new protectionist measures in the works by both sides are making key chip-making equipment (such as from AMAT) harder to get and is hampering the company’s ability to increase capacity.  This report came just days after two Republican members of Congress urged the US to mitigate the risk of using Taiwanese companies as suppliers of technology.  TSM is the leading producer of chips in the world, supplying AAPL, AMD, NVDA, Samsung, and many other technology market leaders.

On Saturday the Consumer Product Safety Commission issued an “urgent warning” to consumers that they should stop using the PTON treadmill.  PTON responded by saying there is no reason to stop using their machine if safety instructions have been followed.  Then Sunday, a TSLA crashed in TX (killing two) apparently operating under the TSLA “Full Self-Driving” autopilot mode (with nobody in the driver’s seat.  In better stock news, KO beat on both lines during pre-market and said demand has returned to pre-pandemic levels.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,404,463 confirmed cases and deaths are now at 581,061.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 68,151 new cases per day.  However, deaths are just starting to plateau again, now at 738 per day.  The CDC said Sunday that more than half of US adults have received at least one Covdi-19 vaccination dose and one-third of adults are now fully vaccinated.  In addition, Dr. Fauci said Sunday he expects a decision on the JNJ vaccine to be made by Friday and he expects the vaccine to go back into use, with a warning label.  However, the bad news is that US demand for vaccination is waning. 

Globally, the numbers rose to 142,102,302 confirmed cases and the confirmed deaths are now at 3,035,109 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is very near the all-time peak and are now at 760,528 per day.  Mortality, which lags, is also rising sharply again at 11,864 new deaths per day. Monday marked the 5th straight day of a record high for new cases in India. In Europe, PFE/BNTX have agreed to supply an extra 100 million does to the EU, including an extra 50 million during Q2 (bringing the Q2 total to 240 million and the grand total to 600 million).

Overnight, Asian markets were mostly green with India (-1.77%), Indonesia (-0.55%), and Malaysia (-0.50%) being the only red.  Shenzhen (+2.89%), Thailand (+1.68%), and Shanghai (+1.49%) led the gainers.  In Europe, markets are mixed on mostly modest moves so far today.  Greece (-2.02%) is a dramatic outlier. However, the FTSE (+0.19%), DAX (-0.04%, and CAC (+0.41%) are typical of the continent.  As of 7:40 am, US Futures are pointing to a red open.  The DIA is implying a -0.24% open, the SPY implying a -0.26% open, and the QQQ implying a -0.33% open.

There is no major economic news scheduled for Monday.  Major earnings reports on the day include KO, MTB, and PLD before the open.  Then after the close, CCK, IBM, STLD, UAL, and ZION all report.

The bulls continue to refuse to be denied. Even with bad news for tech darling TSLA over the weekend, it does not seem like the bears have much traction as earnings continue to be blowout positive so far this quarter. On average 85% of the companies that have reported have beat estimates...and are beating by an average of 22%. So, think long and hard before you fight the trend. However, also be leery about this kind of bull run lasting too much longer without relief. Long runs without down days or pullbacks aren't normal.

Follow the trend, don't predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success. Also, remember this is Friday, so prepare for the weekend news cycle, and don't forget to pay yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Monday, but Rick will be back home Monday. 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

|607% in just 24 months |

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 PlansPrivate 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

Chinese and US Economies Both Red Hot

Markets gapped higher on blowout March Retail Sales and lower than expected new Jobless Claims.  Then we saw a rally the first 90 minutes of the day before grinding sideways in a tight range the rest of the day in all 3 major indices, all closing very near the highs. All 3 indices also closed at new all-time highs.  On the day, SPY gained 1.08%, DIA gained 0.86%, and QQQ gained 1.51%.  VXX fell another 3.30% to 9.97 and T2122 fell a little, but remains just inside the overbought territory at 82.53.  10-year bond yields fell sharply on the day to 1.569% and Oil (WTI) gained a third of a percent to $63.35/barrel.

On a very small sample size, so far this earnings season companies are far above consensus estimates.  Of the 34 that have reported as of day-end Thursday, 88% have beat estimates…and beat them by an average of 22%.  Overseas Friday, China has announced that its GDP grew 18.3% in Q1. This may help put the recent Chinese clamp-down on bank lending into context.  (Which may correlate to US market fears over Fed action as our own economy is also growing very fast.)

In miscellaneous news, In Thursday’s retail sales report, every segment of retail is now above pre-pandemic sales levels with the lone exception of restaurants.  The NFL also picked CZR, DKNG, and Fanduel as their sports-betting partners in a 5-year deal worth about $1 billion.  Airlines companies have said they are expecting massive domestic travel rebounds, but DAL, UAL, and AAL are still bearish on international traffic (especially to Europe) returning to pre-pandemic levels this year. 

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,224,139 confirmed cases and deaths are now at 578,993.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 71,919 new cases per day.  However, deaths are just starting to plateau again, now at 727 per day.  There was a lot of bad news on the vaccine front Thursday.  During the day, it was made public that the CEO of PFE had told CNBC on April 1 that it is likely people will need a booster shot within 12 months of being fully vaccinated.  At the same event the CEO of JNJ had told CNBC that people may well need to be vaccinated against covid annually.  CNBC did not say why this news was kept quiet for two weeks afterwards.  The CDC also disclosed that 5,800 who had been vaccinated contracted the virus anyway with about 7% of those infected requiring hospitalization and 74 dying.  Paired with fear over blood clots and general ignorance/skepticism about vaccines, this does not bode well for a virus that is quick to evolve (mutate). In skepticism front, over 14 million doses have piled up unused, mainly in Southern states such as MS, TN, AR, AL, GA, LA, and MO.   

Globally, the numbers rose to 139,809,244 confirmed cases and the confirmed deaths are now at 3,002,313 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is very near the all-time peak and are now at 736,804 per day.  Mortality, which lags, is also rising sharply again at 11,592 new deaths per day. The WHO said today that the global infection rate is nearing the all-time high again.  In South America, Brazil continues to have a new record number of deaths daily and Columbia has locked-down its 5 largest cities again.  In Asia, India again had a record number of new cases amidst a religious pilgrimage festival.  Other countries in the region reporting surges are Indonesia, the Philippines, Malaysia, and Cambodia (all of which have instituted some kind of restrictions).

Overnight, Asian markets were green across the board on incredibly strong growth numbers out of China.  However, interestingly, the increases in exchanges were moderate with Hong Kong (+0.81%) being by far the largest gainer. In Europe, markets are mostly green on more diverse trading.  The CAC (+0.35%), FTSE (+0.50%), and DAX (+0.94%) are typical of the spread across the exchanges of the continent.  As of 7:30 am, US Futures are pointing to an open on the green side of flat.  The DIA is implying a gain of 0.16%, the SPY implying a gain of 0.10%, and the QQQ implying a gain of 0.03%..

The major economic news scheduled for Friday is limited to Mar. Building Permits, Mar. Housing Starts (both at 8:30 am) and Michigan Consumer Sentiment (10 am).  The major earnings reports on the day include ALLY, BK, CFG, KSU, MS, PNC, and STT before the open.  There are no earnings reports scheduled for after the close.

The bulls just refuse to be denied it seems. For example, the DIA has not seen a significant black candle this month. So, don't fight the trend. With the strong news out of China and a lack of much data or reports in the US today, the bears are not likely to have much energy. However, also be leery about this kind of bull run lasting too much longer without relief. Long runs without down days or pullbacks isn't normal.

Follow the trend, don't predict reversals, but also avoid chasing trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success. Also, remember this is Friday, so prepare for the weekend news cycle, and don't forget to pay yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Friday, but Rick will be back home Monday. 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

|607% in just 24 months |

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 PlansPrivate 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

Earnings Beats and Economic News Lead

Markets opened flat on Wednesday despite a blowout quarter announced during pre-market by JPM.  The DIA had a small rally the first hour, traded sideways until mid-afternoon and then sold off the rest of the day.  The SPY did the same minus the morning rally and the QQQ sold off all day long.  This left us with a Bearish Engulfing candle in the QQQ, a Shooting Star type candle in the DIA and just a black candle in the SPY. No record high closes, but none of the 3 are more than 1.25% from their all-time high close.  VXX gained 2% to 10.29 and T2122 climbed back into the overbought territory at 87.50.   10-year bond yields rose slightly to 1.632% and Oil (WTI) spiked more than 4.5% to $62.93/barrel.

Banks continue to top estimates on blow-out trading gains even amidst loan losses.  Today BAC and C followed the lead of JPM, WFC, and GS yesterday in beating on both the top and bottom lines.  In other sectors, UNH and PEP also posted beats on both lines.

"Expert" analysts are also expecting a pop from Retail Sales numbers this morning. The driver expected for this move is the $1400 stimulus checks the public has gotten during the last month. In fact those analysts are expecting more than a 6% increase, with some going as far as to say they expect a 10% increase over February. So, the potential exists for disappointment of a miss versus expectations and also for a beat that drives infation fear. Be careful.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 32,149,223 confirmed cases and deaths are now at 578,092.  The number of new cases has ticked higher again and are back above the peak of last summer to an average of 72,688 new cases per day.  However, deaths are just starting to plateau again, now at 746 per day. After hours, the CDC decided to postpone a decision on resuming use of the JNJ vaccine while more research can be done on the potential blood clotting issue.  In better news, the country will go over 200 million vaccination doses delivered on Friday as the country went over 195 million on Wednesday according to the CDC.  Finally, a Duke University report says the US will have 300 million excess vaccine doses by July due to anti-vaxxers, science-skeptics, and evangelicals.

Globally, the numbers rose to 138,976,244 confirmed cases and the confirmed deaths are now at 2,988,801 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases continue to rise and is very near the all-time peak and are now at 722,922 per day.  Mortality, which lags, is also rising sharply again at 11,543 new deaths per day. In Asia, India has imposed more restrictions, including a curfew in the capitol amidst another record high number of new cases that has caused banquet halls and hotels to be converted into make-shift hospitals.  In Japan, a high-ranking official did not rule out cancelling the Olympics again during an interview with the Tokyo Broadcast System.  Closer to home, Brazil is seeing its outbreak continue to see record deaths. 

Overnight, Asian markets were mixed again.  Taiwan (+1.25%) was an outlier to the upside with Thailand (-1.61%) an outlier to the downside.  Most regionals exchanges showed moderate moves in either direction.  In Europe, markets are mostly green on modest moves at this point in the day.  The FTSE (+0.33%), DAX (+0.19%), and CAC (+0.22%) are typical with Russia (-0.81%) and Portugal (-0.79%) leading the losses.  As of 7:30 am, US Futures are pointing to a green open.  The DIA is implying a +0.40$ open, the SPY implying a +0.44% open, and the QQQ implying a +0.67% open. Bond yields slipped again overnight as well with the 10-year yield now at 1.618%.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Mar. Retail Sales, NY Empire State Mfg. Index, and Philly Fed Mfg. Index (all at 8:30 am), Mar. Industrial Production (9:15 am), Feb Retail Inventories (10 am) and 2 Fed speakers (Bostic at 11:30 am and Daly at 2 pm).  Major earnings reports on the day include BAC, BLK, C, DAL, PEP, RAD, TSM, TFC, USB, and UNH before the open.  Then after the close, AA, JBHT, PPG, and WIT report.

Despite yesterday's less than stellar day, the bulls remain in control of the trend and spirits seem buoyed by earnings reported so far. This is shaping up to be a tremendous quarter for growth, meaning the next cycle should be even better than this one for earnings. However, the fear of inflation remains the ghost in the room for markets. With a number of reports coming this morning that could be seen as good or bad despite what they report.

Follow the trend, don't predict reversals, and don't chase trades you have missed. Respect support and resistance. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Thursday. 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

|607% in just 24 months |

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 PlansPrivate 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

Ship Shortage, CPI, and JNJ Vaccine Pause

Markets opened just south of flat on Monday and then proceeded to grind sideways the rest of the day.  This left us with inside day Doji across all 3 major indices.  On the day, SPY gained 0.05% (to a new all-time high close), DIA lost 0.09%, and QQQ fell 0.13%.  The VXX fell to 10.17 and T2122 fell outside of the overbought territory to 72.62.  10-year bond yields gained slightly to 1.671% and Oil (WTI) rose two-thirds of a percent to $59.71/barrel.

In Chip news, at the “Chip Summit” President Biden called for the chip, broadband, and battery technology portions of his Infrastructure plan to be approved.  He read a letter from 23 senators and 42 House members expressing bipartisan support for $50 billion in government spending for semiconductor manufacturing and research.  The 3 major US Auto-makers attended and all decried the loss of earnings and employee hours due to current chip shortages.  For their part, the major chipmakers (TSM, INTC, Samsung, etc.) had all already announced tens of billions of dollars of investment (each, TSM having committed more than $100 billion) in new production capacity over the next 2-3 years.  However, an Auto-Industry association called for new, immediate tax cuts to help automotive chip manufacturers add lines to existing plants now. In other chip news, NVDA announced it will begin making a server processor to compete with INTC and AMD in the highly-profitable data center market.

Less than a day ago, Fed Chair Powell told CBS 60 Minutes that it was “extremely unlikely” that the Fed consider raising rates this year.  However, after-hours Monday, St. Louis Fed President Bullard told Bloomberg that as soon as the US reaches 75%-80% vaccinated, he believes the “tapering debate” will take place.  This comes 12 hours before the CPI number and a slew of other Fed speakers weigh in.  Elsewhere, Treasury Sec. Yellen announced that China will not be labeled a “Currency Manipulator” in her first semi-annual foreign exchange report to Congress.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 31,990,143 confirmed cases and deaths are now at 576,298.  The number of new cases has ticked higher again to an average of 69,926 cases per day. However, deaths are just starting to plateau again, now at 747 per day. Overnight, the FDA and CDC both called for a pause in the use of JNJ vaccine due to clotting issues.  In addition, on Monday CDC Dir. Walensky said that MI should “shut things down” again because vaccinations alone will not stop the overwhelming surge in cases the state is seeing.  On the plus side, the CDC also said that 50% of American adults will have at least one dose of vaccine by the end of this week.

Globally, the numbers rose to 137,340,422 confirmed cases and the confirmed deaths are now at 2,961,423 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases are rising again (about 17,000 per day increase) and are now at 688,363 per day.  Mortality, which lags, is rising again at 11,270 new deaths per day. The WHO said Monday that the world has seen a seventh straight week of increasing cases.  Today, Germany reported an increase of almost 11,000 cases as the German Health Minister said the country had reached peak ICU capacity.  On a brighter side, a new study published by the journal Lancet says the UK variant is much more transmissible but no more severe than the original virus.

Overnight, Asian markets were mixed.  Thailand (-1.61%) led otherwise modest losses while India (+1.36%) and South Korea (+1.07%) led otherwise modest gainers.  In Europe, markets are mixed on showing only small moves to either side so far Tuesday.  The FTSE is down (-0.13%), DAX up (+0.12%), and CAC up (+0.28%) as of mid-day.  As of 7:30 am, US Futures are all pointing to a modestly red open at this point (before CPI release).  The DIA is implying a -0.38% open, the SPY implying a -0.30% open, and the QQQ implying a -0.11% open.  Bond yields rose slightly overnight to 1.68% and Oil (WTI) is up half a percent to $60/barrel in premarket trading.

The major economic news scheduled for Tuesday is limited to Mar. CPI (8:30 am) and 4 Fed speakers (Daly at noon, George at noon, Harker at noon, and Bostic at 3:15 pm).  Major earnings reports on the day are limited to FAST before the open.  There are no major reports after the close.

The fear of inflation may be heightened today with Bullard's less dovish note last night, CPI numbers this morning, and a slew of other Fed speakers later in the day. However, although we had indecisive moves on Monday, there is no doubting the trend is strongly bullish. With earnings season starting again on Wednesday, we may be in yet another "wait and see" environment.

Don't predict moves or chase trades you have missed. Respect support and resistance as well as the trend. Keep taking your profits off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow those trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Tuesday. 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

|607% in just 24 months |

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Fed Chair Sees Huge Growth At Hand

Markets opened flat on Friday and ground sideways for most of the day. Then the bulls stepped in to rally hard the last 45 minutes of the day, going out on the highs.  All three major indices closed at new all-time high closes on strong white candles.  On the day, the SPY closed up 0.73%, DIA closed up 0.81%, and QQ closed up 0.61%.  The VXX was flat at 10.31 and T2122 remains in the overbought territory at 85.41.  10-year bond yields were flat after the pre-market surge at 1.662% and Oil (WTI) was off half a percent to $59.34/barrel.

In weekend news, after the close Friday, GM announced even more cuts to overtime and shifts at US truck plants due to the global chip shortage.  This came after both F and GM announced plans to idle some plants for the same reason.  However, GM announced the normal summer downtime weeks will be canceled, in hopes the shortage will be over and production those weeks can make up for shutdowns now. This is all backdrop to a Whitehouse Chip Summit today. However, this summit is not likely to have any short-term impacts. Producers are already selling every chip they can make and it takes years to add Fab capacity to any chip manufacturing company. On Saturday, BABA was fined $2.8 billion (US value) by Chinese regulators for antitrust activities. Sunday it was leaked that MSFT is in late-stage talks to buy AI-technology firm NUAN for a purported value of $16 billion (potentially $56/share).

In other news, Fed Chair Powell told 60 Minutes that the US economy is poised for explosive growth due to vaccines and stimulus. Specifically, he said projections are pointing to the largest increase in GDP since at least 1984.  He also said it remains “highly unlikely” the Fed will raise rates this year but expects short-term inflation to be “moderately above the Fed’s 2% target.”  In other news, Sunday France made climate change news, as the put forth rules that would ban short-haul commercial flights.  The ban would prohibit any flights that cover less than the distance that can be travelled by train in less than 2.5 hours.

Related to the virus, US infections are rising again after plateauing at a level above the fall level.  The totals have risen to 31,918,601 confirmed cases and deaths are now at 575,829.  The number of new cases has ticked higher again to an average of 68,071 new cases per day.  However, new deaths are trending down again, now at 755 per day.  After another a week of a record number of vaccinations, including a record 4.6 million on Saturday alone, the country will have to deal with an 86% reduction in JNJ vaccine as the company has suffered manufacturing and regulatory clearance of their Baltimore facility.  MI continues to be in crisis as the latest surge of cases and hospitalization caused by variants is hitting younger and healthier people in that state.

Globally, the numbers rose to 136,734,096 confirmed cases and the confirmed deaths are now at 2,951,407 deaths.  The trends have reversed and are now trending toward trouble again as we have seen significant upticks recently.  The world’s average new cases are rising again (about 17,000 per day increase) and are now at 668,744 per day.  Mortality, which lags, is rising again at 11,54 new deaths per day.  In India, things have gotten worse with a seventh straight day of record-high new cases.  This comes as the government has outlawed the export of vaccine and treatment drug Remdesivir.  India is the world’s largest producer of both.  In the UK, more restrictions were lifted, allowing non-essential businesses to reopen.  In China, the government admitted the country’s covid vaccines are “not highly effective” (contrary to their earlier reports) and that solutions would include more shots, increased dosages, or mixing those vaccines with others that are based on different technologies (such as PFE, MRNA, JNJ, or AZN vaccines).

Overnight, Asian markets were mostly solidly red.  The flat exchanges South Korea (+0.12%) and Taiwan (+0.03%) were the lone green for the day.  Shenzhen (-2.30%), India (-3.53%), and Shanghai (-1.09%) led the losses.  In Europe, markets are mixed but lean to the red side so far today.  The FTSE (-0.30%), DAX (+0.15%), and CAC (+0.14%) lead as usual midday based on their size.  However, most smaller exchanges are following the FTSE lead. As of 7:30 am, US Futures are all on the red side of flat at this point.  The DIA is implying a -0.12% open, the SPY implying a -0.10% open, and the QQQ implying a -0.21% open.  Bond yields held steady overnight, but Oil (WTI) is up 1.33% in premarket trading.

The major economic news scheduled for Monday is limited to the 10-year bond auction (1 pm) and Mar. Federal Budget Balance (2 pm).  There are no major earnings reports on the day.

The trend remains bullish as of Monday morning, with all 3 major indices sitting at all-time highs, the Fed Chair predicting blowout economic growth, and no major news scheduled for the day. Yet the rest of the world and US premarkets are showing some concern. With earnings season starting again on Wednesday, we may be in a wait and see environment. So, it would not hard to imagine that markets may might drift today. However, that trend is clearly bullish and those bulls do love new highs.

Respect support and resistance as well as the trend. Don't predict moves or chase trades you have missed. Keep taking your trade goals (profits) off the table when you can and maintain your discipline. Stay on the right side of the market trend and follow your trading rules. As we know, consistency is the key to long-term trading success.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Monday. 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

|607% in just 24 months |

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 PlansPrivate 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

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