Stimulus Deal Almost There

Markets started off flat on Thursday, but began a rally at 11 am that lasted the rest of the day (on optimistic stimulus comments from House Speaker Pelosi).  This left all 3 major indices with hammer-like candles (although the QQQ hammer has a black body).  On the day, SPY gained 0.56%, DIA gained 0.62%, and QQQ was dead flat.  The VXX lost 2% to 22.15 and T2122 4-week New High-Low Ratio climbed back into overbought territory at 86.56.  10-year bond yields rose sharply to 0.865% and Oil (WTI) was also up 1.5% to $40.65/barrel.

The big news during the day was the House Speaker Pelosi told reporters “we are just about there” on a stimulus deal.  She went on to say the remaining issues seem to be wording and then getting Senate Republicans to agree to the deal.  However, White House staff (like Economic Advisor Kudlow) expressed optimism that they “could round up the needed votes from their side of the aisle.”  That said, no official deal has been announced yet, nor votes scheduled, let alone timing of any disbursements.

After the close, the FDA approved GILD antiviral drug remdesivir as an emergency use treatment for Covid-19 and their stock soared after-hours.  MAT stock also jumped on an earnings beat (heavy Barbie and Hot Wheels sales).  However, even though INTC beat overall, the stock got thoroughly hammered on poor results both in the consumer desktop and the cash-cow datacenter sectors (where AMD is eating their lunch despite INTC’s massive market share).  Later Thursday night a CA Appeals Court ruled UBER and LYFT must comply with state and federal employee labor laws for all people they had previously treated as independent contractors.

On the virus front, in the US the numbers show we now have 8,664,365 confirmed cases and 228,423 deaths.  After another day with 74,301 cases, the 7-day average daily new case count has risen to 62,993/day, while the 973 deaths only moved the daily average of deaths slightly to 808.  5 states reported new record high daily case counts, while 14 more states reported record-high 7-day average counts.   Chicago announced business closures from 10 pm to 6 am as new cases, hospitalizations and deaths have spiked in that region. 

Globally, the numbers rose to 42,083,997 confirmed cases and the confirmed deaths are now at 1,144,239 deaths.  This includes the world seeing over 478,000 new cases Thursday (a record high new case count).  Global Covid deaths have also risen (almost 7,000 again on the day), but on average remain about 5,690 per day.  A record for new cases were reported throughout Europe, including Spain, France, Italy, Portugal, Germany, and the Netherlands.  However, in Asia, India continues to open up its country (economy) in belief they are past the most recent wave.

Overnight, Asian markets were mixed, but leaned to the red.  Shenzhen (-1.90%) and Shanghai (-1.04%) led the losses, while Hong Kong (+0.54%) and New Zealand (+0.51%) led gainers.  In Europe, markets are solidly green across the board so far today on hope for US stimulus.  Among the big 3 bourses, the FTSE is up 1.53%, the DAX up 1.11%, and the CAC up 1.37%.  The rest of European Exchanges are more modestly green.  As of 7:30 am, US futures are pointing to a modestly higher open with all 3 major indices showing +0.22% as of now. 

The major economic news for Friday is limited to Mfg. PMI and Services PMI (both at 9:45 am).  However, major earnings reports include ALV, AXP, BLMN, CLF, CRI, and ITW all report before the open.  There are no earnings reports after the close.

With the Presidental Debate done, little major economic news, and relatively few major earnings, the main driver of stocks Friday is likely to be stimulus negotiations. Even with both sides of the negotiation saying a deal is close, much doubt remains. The third-side that was essentially not part of the negotiations (Senate GOP) will have the ball in their court once a deal is passed. So, major doubts remain whether anything will get done before the election. That being the case, we are likely to see more volatility until more clarity emerges with hope driving markets up and fear of delay or renegotiation with the Senate Republicans driving prices down. Meanwhile, the virus continues to surge, but markets seem to have baked that fact into the cake and are now more worried about political risk and stimulus.

Remember this is Friday, so think about whether you need to hedge or lighten up in front of the weekend news cycles. Also, continue to be careful and nimble in this whip-saw market. The short-term trend remains bearish and has broken the medium-term uptrend. However, it looks like we may have found some support the last 3-4 days and all it will take is a whiff of a stimulus deal to turn the bulls loose. So, keep locking-in your profits and sticking to your trading rules. Don’t get too greedy, don't chase the moves you have missed, and don't predict. Be sure you respect potential support and resistance.  Follow the trend and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: DIS, WBA, GILD, SCHW, SO, WRB, XLE, TLRY, USB, AA. 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

Jobless Claims, Stimulus, and Debate Lead

Wednesday was another roller coaster day for stocks as the opened before running up and down all day, closing on the lows.  All 3 major indices printed ugly black high-wick, inverted hammer type candles.  On the day the QQQ was flat (-0.08%), SPY was down 0.21%, and DIA was down 0.35%.  The VXX was also down to 22.67 and T2122 fell back to almost exactly mid-range.  10-year bond yields rose again to 0.818% (the High since June) and Oil (WTI) fell over 4% to $39.97/barrel.

Stimulus (or the lack thereof) remained the main story during the day.  The Senate failed to pass the $500 billion PPP loan/grant program Majority Leader McConnell had been pushing.  At the same time, while negotiations continue, House Speaker Pelosi and Treasury Sec. Mnuchin failed to reach a deal.  However, both sides announced that differences are narrowing and that they are optimistic for a deal.  Talks will continue on Thursday.  However, even if a deal is reached, it is still an open question if and when McConnell would bring the deal to a Senate vote or whether they could get a larger deal passed.  FDA Head Hahn also said that while no timeline exists, the goal remains that all Americans will be able to begin a vaccine course by sometime next Spring.

Purdue Pharma has plead guilty to 3 federal criminal charges stemming from opioid marketing, will pay a $8 billion fine, and the Sackler family will close the company as an entity while the operations continue as a new company.  Several State Attorney’s General objected to the deal, which would create a government-controlled business from the assets of the company (to continue making/selling Oxycontin).  The objection is based on the states would likely have gotten more money from a private sale, because at least one other drug manufacturer has expressed interest in purchasing the business.  However, the DOJ has completed the deal anyway.

On the virus front, in the US the numbers show we now have 8,585,748 confirmed cases and 227,419 deaths.  After another day in excess of 63,600 cases, the 7-day average daily new case count has risen to 61,481/day, while the over 1,200 deaths only moved the daily average of deaths slightly to 794.  With that background, the CDC reported an alarming trend with surging cases all across the country and particularly high transmission levels in the Midwest as national cases have risen 17% in the last week.  However, NIH Director Collins says a viable vaccine should be approved in the next couple of months with wide availability sometime in Q2 of 2021.  In related good news, the head of the “Warp Speed” program told Bloomberg that it is possible both the JNJ and AZN phase 3 trials would be allowed to restart this week. 

Globally, the numbers rose to 41,568,570 confirmed cases and the confirmed deaths are now at 1,137,684 deaths.  This includes the world seeing over 437,000 new cases Wednesday (a record high new case count).  Global Covid deaths have also risen (almost 7,000 on the day), but on average remain about 5,640 per day.  In the UK, the country saw another record number of new cases.  In Poland, the daily death count has reached four times the count during the first wave as the country recorded another consecutive record number of new cases and has turned the national stadium into a field hospital.  A similar situation runs throughout Europe, in particular the Eastern part of the continent including Russia, but also Italy, Belgium, Germany, and Ireland.

Overnight, Asian markets were mostly lower with South Korea (-0.67%) and Shenzhen (-0.49%) leading the modest losses.  In Europe, markets are mixed so far today with very modest moves so far.  Among the big 3 bourses, the FTSE is up 0.10%, the DAX flat +0.01%, and the CAC up 0.17%.  The rest of European Exchanges are mainly in the red.  As of 7:30 am, US futures are pointing to a modestly lower open with all 3 major indices showing -0.20% as of now. 

The major economic news for Thursday is limited to Initial Jobless Claims (8:30 am), Sept. Existing Home Sales (10 am), and a Fed speaker (Kaplan at 6 pm).   However, there is also the final Presidential debate at 9 pm.  Major earnings reports include AAL, AB, AEP, CTXS, DGX, DHR, DOW, EQT, FAF, FCX, FITB, GPC, GWW, HBAN, KMB, LUV, MTB, NOC, NUE, PAG, PHM, POOL, RCI, RS, SIRI, SON, STM, T, TSCO, UNP, and VLO all before the open.  Then after the close, COF, INTC, MAT, RHI, SIVB, and TFII report. 

Jobless claims or some tidbit from the stimulus negotiations are likely the only drivers today, in front of the last Presidential Debate. That being the case, we may see another day of rest in the markets as traders seek more clarity. The virus continues to surge, but markets seem to have baked that fact into the cake and are now more worried about political risk and stimulus. Of course, earnings reports remain the wildcard, with mixed but generally positive results reported so far against much-lowered expectations.

Continue to be careful and nimble in this whipping market. The short-term trend remains bearish and has broken the medium-term uptrend. However, all it takes is a whiff of a stimulus deal to turn the bulls loose. So, keep locking-in your profits and sticking to your trading rules. Don’t get too greedy, don't chase the moves you have missed, and don't predict. Be sure you respect potential support and resistance.  Follow the trend and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: AA, BKR, WRB, HUN, SO, DIS, KSS. 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

Stop Me If You've Heard This - No Deal Yet

Tuesday saw another volatile day with a half percent gap higher followed by a roller coaster ride that traded in a 1.25% range before closing back just below the open.  The result was a high-wick Doji day that did nothing to break the downtrend.  On the day, SPY was up 0.38%, DIA up 0.35%, and QQQ up 0.21%.  The VXX was flat at 23.23 and T2122 rose a bit but remains firmly in the mid-range at 63.89.  10-year bond yields rose again to 0.791% and /Oil (WTI) rose a percent and a half to $41.51/barrel.

The main news on stimulus was positive during the day with House Speaker Pelosi saying a deal could come before day end and Senate Majority Leader McConnell saying that if a deal was reached, he would hold a vote in the Senate “at some point.”  However, Pelosi’s statement came before she had spoken to Treasury Sec. Mnuchin Tuesday and McConnell also said he was still doesn’t support a bigger deal and is doubtful that such a deal would pass the vote if he held one.  In the evening, White House Chief of Staff Meadows said more progress was made in negotiations, but big differences remain.

In other news, just before the open Tuesday, the US government sued GOOG over anti-trust violations.  In particular, they cite a deal GOOG struck with AAPL in 2018 to make Google the default search engine on all AAPL devices and software (Safari).  As a result, apparently almost half of all GOOG search traffic came from AAPL devices in 2019.  Emails filed with the case report that an AAPL senior executive wrote to GOOG saying their goal was for the two companies “to work as if they were on company.”  Of course, GOOG later released a statement saying the suit is deeply flawed and would hurt consumers by “artificially propping up” lower-quality search engines.

On the virus front, in the US the numbers show we now have 8,521,465 confirmed cases and 226,204 deaths.  After another day in excess of 62,000 cases, the 7-day average daily new case count has risen to 60,915/day, while the nearly 1,000 deaths did little to move the lagging daily average of deaths, which remains relatively flat at 759.  42 states are reporting an increase in Covid-19 hospitalizations as 20% of all hospitals nationally are reporting 80% or more of their ICU beds are full.  However, there are some parts of the country (those that locked down hardest early in the pandemic) that are now easing restrictions. This includes San Francisco, which has now opened non-essential office spaces and various indoor venues.

Globally, the numbers rose to 41,115,504 confirmed cases and the confirmed deaths are now at 1,130,693 deaths.  This includes the world seeing just under 400,000 new cases a day.  The good news is that global reported Covid deaths remain about 5,500 per day. In the UK, Manchester was forced to lock down based on the city’s spike in cases, but local authorities and even Tory party factions continue to rail against PM Johnson and the restrictions.  Cases also jumped again in Germany amidst talk of more restrictions from Chancellor Merkel.  The Czech Republic saw another all-time high in new cases, including their PM. 

Overnight, Asian markets were mixed yet again on modest moves both directions.  Hong Kong (+0.75%) led the gainers being boosted by airline shares soaring after an announcement of major layoffs (5,900) by Hong Kong based Cathay Pacific.  Meanwhile Shenzhen (-1.10%) and Malaysia (-1.23%) led the losses.  However, most of the Asian exchanges were split modestly on either side of break-even.  In Europe, markets are red across the board on pessimism over more US stimulus.  Among the big 3 bourses, the FTSE is down 1.13%, the DAX down 0.83%, and the CAC down 0.96%.  the rest of the continent’s exchanges are following the same pattern at this point in their day.  As of 7:30 am, US futures are relatively flat, all 3 showing -0.10% to -0.15% as of now. 

The major economic news for Wednesday is limited to Oil Inventories (10:30 am) and a pair of Fed speakers (Brainard at 8:50 am and Mester at 10 am).  However, major earnings reports include ABT, AAN, APH, AVY, BKR, BIIB, ERIC, IPG, KEY, KNX, LAD, NEE, NTRS, SLGN, TMO, and VZ before the open.  Then after the close, CMG, CCI, CSX, DFS, EW, EFX, FTI, GL, KMI, LRCX, MTH, TSLA, UFPI, WHR, and XLNX after the close.

With little news on the schedule, stimulus negotiations and the Senate vote on a much smaller PPP-only bill are likely to lead the news today. The virus continues to surge and the Presidential campaigns may slack off a bit today in preparation for Thursday's debate. However, we have seen hope spring eternal for more stimulus and all we can be sure of is that volatility remains high. Of course, earnings remain the wildcard, with mixed but generally positive results reported so far against much-lowered expectations.

Continue to be careful and nimble in this whipping market. The short-term trend remains bearish and has broken the medium-term uptrend. However, all it takes is a whiff of a stimulus deal to turn the bulls loose. So, keep locking-in your profits and sticking to your trading rules. Don’t get too greedy, don't chase the moves you have missed, and don't predict. Be sure you respect potential support and resistance.  Follow the trend and trade your plan.

Ed

Swing Trade Ideas for your consideration and watchlist: RIOT, TWTR, FITB, BIDU, CARR, F, FCX, NIO. 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

Still No Stimulus Deal But Hope Remains

Stocks gapped higher at the open for no particular reason except hope for stimulus, but that was just a bull trap.  After the first 5-minutes, the rest of the day saw an all-day selloff which saw prices close near the lows.  The DIA printed what looked like an Evening Star pattern, as did the SPY (if you squint) with the QQQ printing the biggest black candle of the bunch.  All 3 indices gave up their mid-term uptrends and look to be headed down toward their 50sma for a retest.  On the day, QQQ was down 1.63%, SPY down 1.52%, and DIA down 1.38%.  The VXX rose over 4% to 23.24 and T2122 fell all the way to the lower end of the midrange at 32.28.  10-year bond yields rose significantly to 0.772% and oil fell half a percent to $40.71/barrel.

On the stimulus front, after the close Monday it was reported that House Speaker Pelosi and Treasury Sec. Mnuchin made some progress in their talks.  The pair plan to talk again Tuesday.  In the meantime, Senate Republicans oppose the deal the two sides are working toward.  So, on Tuesday, Majority Leader McConnel is still planning to propose a bill about one-fourth the size what Pelosi and Mnuchin are negotiating (covering $500 billion in PPP Loan/Grants for small businesses) in hope of passing it in the Senate in a vote Wednesday.  With all this, there still seems to be optimism in the market that a deal can be reached before the election.

After hours, INTC announced that they had agreed to sell their NAND memory unit to South Korean firm SK Hynix for $9 billion.  Early this morning PG reported a huge beat on sales (+9%) on high demand for household items.

On the virus front, in the US the numbers show we now have 8,459,041 confirmed cases and 225,241 deaths.  The 7-day average daily new case count rose again to 59,124/day, while the lagging average of deaths remains relatively flat at 741/day.  At the moment, 37 states are reporting virus hospitalizations increasing more than 5% since last week.  More ominously, a half dozen states report ICU bed utilization over 80%. At the same time, 41 states are reporting new case numbers growing by more than 5%. 

Globally, the numbers rose to 40,720,262 confirmed cases and the confirmed deaths are now at 1,124,213 deaths.  In Europe, Ireland has imposed a 6-week national lockdown closing bars, restaurants, offices, and limiting gatherings to fewer than 6 people.  Meanwhile, the UK has set a deadline for the city of Manchester to comply with a lockdown order with the threat of national government intervention if they do not comply.  However, in Asia, Hong Kong has slightly reduced restrictions after a week with a better trend in new cases.

Overnight, Asian markets were mixed again.  Japan (-0.44%), Australia (-0.72%) are typical on the losing side.  Meanwhile, Shanghai (+0.47%) and South Korea (+0.50%) are typical on the green side.  Shenzhen (+1.33%) was the only mover of more than one percent.  In Europe, markets are also mixed, but generally lean to the positive side.  Among the big 3 bourses, the FTSE (+0.31%) and CAC (+0.56%) on green while the DAX (-0.27%) shows red at this point.  The rest of the continent is mixed, but the larger moves are to the plus side at this point in their day.  As of 7:30 am, US futures are pointing to another gap higher at the open. The large-cap indices are both implying a move of +0.74%, while the QQQ is indicating +0.71% at this point.  

The major economic news for Tuesday is limited to Sept. Building Permits and Sept. Housing Starts (both at 8:30 am), and 2 Fed speakers (Williams at 9 am, Quarles at 10:50 am.  However, earnings are ramping up with ACI, CP, DOV, GPK, IQV, LMT, MAN, NVR, PCAR, PM, PG, RF, and TRV reporting before the open.  Then after the close AGR, CNI, CSL, NFLX, TER, THC, TXN, and WRB all report.

The virus continues to surge, no stimulus deal has been reached, and the politicians of both parties are more focused on the impending election than the nation's business. Nonetheless, the hope/expectation of more stimulus very soon appears to remain high in the market. earnings reports are likely to remain the big drivers of the market Monday. Earnings are the wildcard, with mixed but generally positive results reported against much-lowered expectations. The one constant is raised volatility. And don't forget there are ACB confirmation votes and the final Presidential Debate coming this week that is sure to raise the political risk.

So, continue to be careful in this market. The short-term trend remains strongly bearish and has broken the medium-term uptrend. Lock-in your profits whenever you can and stick to your rules. Singles and doubles in the bank beat hope for a home run every time. Don’t get too greedy, don't chase the moves you have missed, and don't predict. Be sure you respect potential support and resistance.  Follow the trend and stick with your trade plans. Monday's candles were ugly, but again this morning the market seems to want to shrug that off.

Ed

Swing Trade Ideas for your consideration and watchlist: MRNA, TNA, FAS, DDOG, BYND, RIOT, NIO. 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

Bulls Looking to Gap Again Monday

Markets gapped higher at the open and ran higher the first hour Friday on better than expected Sept. Retail Sales.  However, a mid-morning selloff led to a sideways grind that lasted until 3pm, when the floor fell out from underneath the indices.  That late-day selling left all 3 major indices with higher wicks and ugly black candles (although the DIA managed to remain a Gravestone Doji).  On the day, SPY ended down 0.06%, QQQ down 0.55%, and DIA up 0.33%.  The VXX was flat at 22.27 and T2122 remains just inside the overbought territory at 81.48.  10-year bond yields rose to 0.749% and Oil (WTI) fell slightly to $40.78/barrel.

On the stimulus front, on Friday House Speaker Pelosi told other Democratic leaders that the 2 sides remain far apart on several issues.  These are funding for state/local governments, tax breaks for working families, child care funding, and the liability waiver that Republicans want for businesses.  Meanwhile, Senate Majority Leader McConnell insists the two sides are negotiating at 4 times the level the Senate GOP will accept and on Saturday said he’s proceeding with votes on a $500 billion PPP Small Business loan/grant bill on Tuesday and Wednesday. In response, on Sunday, Speaker Pelosi set a Tuesday deadline for a deal prior to the election.

On Sunday AAL said they intend to return to the use of the BA 737 Max in December.  Then, early Monday, COP said it will acquire driller CXO for $9.7 billion.  In economic news, China also announced that its economy grew 4.9% in Q3, which brings YTD growth up to +0.7% versus 2019.  However, in the Middle East, the IMF is forecasting a 4.1% economic contraction and oil prices to remain in the $40-$50/barrel range through 2021

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,388,013 confirmed cases and 224,732 deaths.  The 7-day average daily new case count rose again to 56,322/day, while the lagging average of deaths remains relatively flat at 718/day.  21 states reported a record number of new cases at least once in the last week.  At the moment, 38 states are reporting new case numbers growing by more than 5% with only 2 states trending down and the country as a whole has seen a 16% increase in cases in the last week. 

Globally, the numbers rose to 40,348,289 confirmed cases and the confirmed deaths are now at 1,119,305 deaths.  Europe has overtaken the US to become the area with the highest average daily new case count (to be fair, Europe including Russia does have nearly 2.5 times the US population).  This comes as the WHO is warning that many major cities across Europe may reach ICU bed capacity in the next couple of weeks based on the current new case and hospitalization rates.  On cue, Poland began converting a soccer stadium into a field hospital, Italy announced new restrictions and the UK  is in negotiations to lockdown its Northern city of Manchester.

Overnight, Asian markets were mixed, but overall, modestly higher.  Taiwan (+1.24%) and Japan (+1.11%) led the gainers, while Thailand (-2.02% on political unrest) and China (-0.70%) led the losers.  In Europe, markets are also mixed by generally higher so far today.  Among the big 3 bourses, the FTSE is down (-0.22%), the DAX flat (-0.03%), and the CAC up (+0.32%).  The other European bourses show a modest move in either direction, but lean to the green side.   As of 7:30am, US futures are pointing to a gap higher at the open.  The DIA implying +0.70%, the SPY suggesting +0.83%, and the QQQ indicating +1.00% at this point. 

The major economic news for Monday is limited to Sept. Federal Budget Balance and 3 Fed speakers (Chair Powell at 8 am, Clarida at 11:45 am, and Harker at 3 pm.  Major Earnings Reports include HAL before the open and CCK, IBM, LOGI, PPG, STLD, and ZION after the close.

The surging virus, lack of a stimulus deal, and earnings reports are likely to remain the big drivers of the market Monday. However, any potential news on the political front remains an overhang for at least another couple of weeks. And of course, the M&A world seems to still be in vogue as we head into the stretch run of the year. The one thing that is sure is that posturing is sure to add to volatility. So, continue to be careful in this market.

Lock-in your profits whenever you can and stick to your rules. Don’t get too greedy, chase the moves you have missed, and don't predict. Be sure you respect potential support and resistance.  Follow the trend and stick wiht your trade plans. Friday's candles were ugly, but the market seems to want to shrug that off this morning.

Ed

Swing Trade Ideas for your consideration and watchlist: GLW, URI, HAS, NIO, CGC, GPS, MCRB, SPCE. 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

No Stimulus Deal Yet as Virus Surges

Markets gapped down 1.25% on Thursday on decreased expectations for stimulus and a much higher than expected Initial Jobless Claims.  However, the bulls spent most of the day working their way back toward the Wednesday close before taking a step back in the final 15 minutes.  On the day, the large-caps both ended flat and the NASDAQ closed down, but all 3 remain in a Bull Flag type pattern.  At the close, QQQ was down 0.67%, SPY down 0.11%, and DIA down 0.03%.  The VXX was up only slightly to 22.10 and T2122 climbed back into overbought territory at 86.39.  10-year bond yields rose to 0.734% and Oil (WTI) was flat at $41.01/barrel.

On the stimulus front, Treasury Sec. Mnuchin told reporters that the White House will no longer let funding targets over Covid-19 testing hold back a stimulus deal.  Later the president said he would raise his offer above the Administration’s current $1.8 trillion, but gave no specifics.  These two developments raised hopes in the market that a deal may still get done soon.  However, after hours, Senate Majority Leader McConnell rejected the idea of any large stimulus bill passing the Senate, regardless of whether the White House backs the bill or not.  He told reporters that the $500 billion PPC bill Senate Republicans will propose and vote for next week is the right level of stimulus.

In an interesting follow-up to a story earlier this week, Robinhood confirmed that almost 2,000 of their trader’s accounts were hacked from a data leak that had been sold on the dark web.  CNBC reported that E*Trade, Schwab, TDA, and others have also been hacked and the Treasury Dept. reports that the total theft through these leaks has been about $1 billion since February.  However, Robinhood is the latest and most high profile due to their notoriety on social media during the pandemic.

European Aviation regulators have declared the BA 737 Max plane fit to fly in European air space again, even before the company makes the final changes demanded by the US FAA. This is very good news for BA, which has struggled with a Public Relations nightmare over this problem plane. In other European news, UK's PM Johnson told the country to prepare for a "No Deal Brexit" (breaking of an international treaty, using WTO tarrif rates, and turmoil around a hard border in Ireland) as no progress has been made in trade negotiations.

On the virus front, in the US we now have 8,219,123 confirmed cases and 222,754 deaths.  After 66,219 new cases Thursday, the 7-day average daily new case count rose again to 54,413/day, while the lagging average of deaths remains relatively flat at 711/day.  36 states are reporting increasing new case numbers and the country as a whole has seen a 14% increase in cases in the last week.  In good news, MRNA said it may have efficacy data on the first 53 patients in its Phase 3 trial sometime in November, but will not have safety data on even those 53 until some unspecified time beyond then.

Globally, the numbers rose to 39,250,410 confirmed cases and the confirmed deaths are now at 1,104,131 deaths.  ECB President Lagarde said that economic stimulus in the form of interest rate cuts, forward guidance, and asset purchases is ready and waiting as 80% of European countries are seeing a surge in cases.  In the UK, another region of the UK moved into the highest alert level with a surge of cases, binging a lockdown to that region.  France, the Netherlands, Czech Republic, Poland, Belgium, Spain, and Russia are all sitting at a record level of new cases as the rate of spread seems to be even worse than in the US.  Analysts speculate this is because Europe is farther North than the US and may well be further into their seasonal shift indoors.

Overnight, Asian markets were mixed and saw modest moves in both directions.  Hong Kong was the biggest winner at +0.94, while South Korea was the biggest loser at -0.83%.  In Europe, markets are nearly green across the board, with the lone outlier of a red Russia.  The big 3 bourses are showing the FTSE +1.31%, DAX +0.87%, and CAC +1.49%.  Other European bourses show a more moderate positive move so far Friday. As of 7:30am, US futures are also pointing to a modestly higher open.  The DIA and SPY are both implying about a 0.25% gap up, while the QQQ is showing a 0.36% gap up at this point. 

The major economic news for Friday includes Sept. Retail Sales (8:30 am), Sept. Industrial Production (9:15 am), as well as Aug. Business Inventories and Univ. of Michigan Consumer Sentiment (both at 10 am).  Major Earnings Reports include ALLY, BK, CFG, JBHT, SLB, STT, and VFC before the open.  There are no earnings reports after the close.

Just like yesterday, the surging virus, lack of a stimulus deal, and earnings reports are likely to be the main drivers of the market today. However, news on stimulus (good, bad, and/or conflicting) may also be likely in front of the weekend news cycle. Regardless, the one thing that is sure is that political overhang and posturing are sure to add to volatility. So, continue to be careful in this market.

As always, lock-in profits whenever you can and stick to your rules. Don’t chase moves you have missed, don't predict, and respect potential support and resistance.  Follow the trend and the short-term trend remains to the downside. However, the market is in a longer Bull trend and doing a Flag pattern type move despite yesterday's strong white candle. Just stick to those trading plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: FITB, GLW, CGC, TSLA, SPCE, X, OKE, FCX, GPS, INTC. Also, the public is invited to join Rick in the trading room starting at 9 am using this link: https://bit.ly/Hrcopenroom 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

Bears Looking Strong in PreMarket

Markets opened flat Wednesday and after a slight rally, sold off all morning before a range-bound roller-coaster near the lows all afternoon.  The result is a Bull Flag pattern in all the major averages.  On the day, QQQ was down 0.84%, SPY down 0.63%, and DIA down 0.56%.  The VXX fell a percent to 21.92 and T2122 fell outside the overbought territory to 72.50.  10-year bond yields were unchanged at 0.727% and Oil (WTI) rallied over 2% to $41.11/barrel.

On the stimulus front, Treasury Sec. Mnuchin and House Speaker Pelosi spoke again Wednesday but did not reach a deal.  Mnuchin threw cold water on the market with comments after the meeting to the effect that getting a deal done before the election will be very difficult.  However, they will meet again Thursday.

After the close, WFC announced they have fired more than 100 employees for abuse of the relief fund programs.  However, they stressed a lower than expected loan loss for the quarter.  UAL also posted a larger than expected loss on the quarter and again stressed the need for relief from the US government.

France said Wednesday that they intend to proceed with a tax on digital transactions with customers located in their country.  The French Finance Minister also said the EU should press ahead with its own plans for an EU-wide digital tax (to prohibit the big tech companies from shifting profits to low-tax Ireland in order to avoid taxation).  US sanctions and tariffs on France are scheduled to take place in retaliation as of January.

On the virus front, in the US the numbers showing we now have 8,153,740 confirmed cases and 221,872 deaths.  After almost 60,000 new cases Wednesday, the 7-day average daily new case count rose again to 53,151/day, while the lagging average of deaths remains relatively flat at 723/day.  36 states are reporting increasing new case numbers and the country as a whole has seen a 14% increase in cases in the last week.

Globally, the numbers rose to 38,814,533 confirmed cases and the confirmed deaths are now at 1,098,012 deaths.   In France, new restrictions (including 9pm curfews) were announced as both new cases and hospitalization reached the highest level since June and exceeded their preset threshold for additional measures.  Both Germany and Italy recorded their highest number of new cases since the start of the pandemic and Russia recorded a record number of deaths Wednesday.  Meanwhile, in Spain, all bars and restaurants in the Catalonia region have been closed again for at least 2 weeks. Across the Channel, in a controversial move, Wales has banned incoming travelers from high-risk areas of the UK, including Scotland, Northern England, and Northern Ireland. 

Overnight, Asian markets were red across the board (with the lone exception of a modestly positive Australia).  Hong Kong and India were the only losses of more than 2%.  In Europe, markets are following Asia with major losses at this point in the day.  The big 3 bourses are showing the FTSE -1.88%, DAX -2.72%, and CAC -2.15% on renewed virus and shutdown fears.  There is a similar scorecard across the rest of the continent’s exchanges.  As of 7:30am, US futures are also pointing to a significant gap down.  The DIA and SPY are both implying about a 1% gap lower, while the QQQ is showing a 1.40% gap down at this point. 

The major economic news for Thursday includes Sept. Import/Exports, Weekly Initial Jobless Claims, NY Empire Mfg. Index, and Philly Fed Mfg. Index (all at 8:30 am), Crude Oil Inventories (11 am) and 3 Fed speakers (Kaplan at 11 am, Quarles at 11 am, and Kashkari at 5 pm).  Major Earnings Reports include CMC, MS, SCHW, TFC, TSM, and WBA before the open as well as ISRG after the close.

The surging virus, lack of a stimulus deal, and earnings reports are likely to be the main drivers of the market. However, the flurry of economic news at 8:30 am may have something to say about the open. Regardless of the open, political overhang and stimulus posturing are sure to add to volatility during the day. So, be careful if you are going to wade into this market anew.

Be nimble and make sure you lock-in profits whenever you can. As always, maintain your discipline.  Stick to those rules and don’t chase moves you have missed.  Follow the trend (and the short-term trend is down in a longer Bull trend doing a Flag pattern move now). Just stick to those trading plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas today. However, the public is invited to join Rick in the trading room starting at 9 am (where many trade ideas will be discussed) using this link: https://bit.ly/Hrcopenroom 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

More Earnings and No News on Stimulus

Markets opened mixed and flat Tuesday as Earnings season kicked off.  However, the large-caps saw a slow selloff lasting all the way to the lows about 3 pm.  Then a rally the last hour closed the DIA and SPY up off their lows, both printing Bearish Harami candles.  Meanwhile, the QQQ gapped up almost two-thirds of a percent but immediately sold off below Monday’s close.  Then an all-day roller coaster ride ended up with price closing almost exactly where it closed Monday.  On the day, QQQ was flat -0.00%, DIA down 0.60%, and SPY down 0.65%.  The VXX rose slightly to 22.15 while T2122 fell back to the edge of the overbought territory at 80.17.  Bonds began trading Tuesday after the holiday and fell to 0.729% as Oil (WTI) rose to $40.17/barrel.

On the stimulus front, Senate Majority Leader McConnell has had enough negotiations (he is not a primary negotiator anyway) and has said the Senate will vote on a small plan that essentially covers just the PPP business loan/grant program.  However, any bill the Senate passes is very likely DOA in the House.  Meanwhile, President Trump sent out another nebulous tweet urging Congress to “go big or go home” on stimulus (no amount or specifics mentioned).  And House Speaker Pelosi has again told reporters the White House proposal falls significantly short of what is needed to address the crisis.

During the day, the big banks got hammered with C and JPM both printing big, ugly Bearish Engulfing candles.  This came as both reported beats on both the top and bottom lines.  BAC and WFC (which report Wednesday) also got caught in that selling.  The other major stock news on the day was the AAPL iPhone announcement which includes a $100 price increase and adds 5G capability while also not providing a charging cable or earpiece.  Finally, overnight, PPC agreed to pay a $110 million fine for Chicken price-fixing.

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,093,600 confirmed cases and 220,900 deaths.  The 7-day average daily new case count rose (about 1,000 increase) again to 51,691/day, while the lagging average of deaths remains relatively flat at 712/day.  Prior to the open Tuesday, JNJ became the second to pause their Phase 3 Trial over another unexplained illness of a study participant.  Then in the afternoon, LLY was forced to pause the trial of their antibody treatment (the one President Trump received) by US regulators over potential safety concerns.

Globally, the numbers rose to 38,426,539 confirmed cases and the confirmed deaths are now at 1,091,759 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In the UK, despite the worsening situation, Cabinet Member Coffey said there is unlikely to be a national lockdown in the next 2 weeks, instead insisting the PM had decided to go with regional measures and local lockdowns in hope that will be enough to stop the spread.  Meanwhile, in Germany, Chancellor Merkel is scheduled to release more restrictions later today. 

Overnight, Asian markets were mixed, but mostly lower as the region reacted to a speech by Chinese President Xi Jingping.  Japan and Hong Kong ended flat, with Shanghai, Shenzhen, and South Korea lower.  The other Asian markets were mixed with only India (+0.72%) showing any appreciable gain.  In Europe, markets are also mixed, but again mostly lower so far today.  The big 3 bourses are all on the red side of flat with the only markets showing noticeable moves being the smaller countries as of mid-day. As of 7:30 am, US futures are mixed and flat with the DIA and QQQ just on the green side of even and the SPY just on the red side. 

The major economic news for Wednesday is limited to Sept. Core PPI (8:30 am) and 4 Fed speakers (Clarida at 9 am, Quarles at 9:30 am, Quarles again at 3 pm, and Kaplan at 6 pm).  Major Earnings Reports include ASML, BAC, GS, INFY, PGR, PNC, USB, UNH, and WFC before the open.   Then after the close, AA, and UAL report.

Earnings are ramping up, the tea leaf reading of those numbers and statements follow, and stimulus talks (or lack thereof with Treas. Sec. Mnuchin out of the country), as well as political wrangling and the ACB confirmation hearings, will dominate the news.   So, there is a lot of volatility risk overhanging the market.  It looks like we are starting out looking at a consolidation day.  However, that volatility can see us run either direction.

Continue to be careful, nimble, and potentially light in your trades.  Make sure you lock-in profits whenever you can and maintain your discipline.  Stick to those rules, follow the trend, and don’t chase moves you have missed.  Just stick to those plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: ABUS, OKE, XRT, KODK, XSPA, MRNA, SPCE, AMD. 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 Start JNJ Trial Stops

On Monday, markets gapped up three-quarters of a percent and then continue to rally most of the day for no particular reason.  Then we saw a half-percent selloff the last 90 minutes of the day, again with no news explanation.  That said, profit-taking makes sense after such a run of gap-ups and white candles.  On the day, QQQ was up a gaudy 3.09%, its best day since April with AAPL and AMZN leading the charge in front of their big events on Tuesday.  However, the large-caps were also quite positive with the SPY up 1.58% and the DIA up 0.86%.  VXX dropped to 21.85 and the T2122 remains deep in the overbought territory at 97.55 (but notice it did pull back just a bit).  Bond markets were closed, but Oil (WTI) fell almost 3% again to $39.52/barrel.

While I said there was no particular explanation for Monday’s market move, it is possible "hope for more stimulus" was the cause. However, there were no headlines on the negotiations, the last word from both sides was an impasse, and the political focus has moved to the confirmation of ACB. However, after-hours Bloomberg reported that their analysts are again seeing patterns in the CBOE NDX Volatility index as they saw during the summer.  Specifically, they claim to again see signs of day-trading options traders from the new, stay-at-home economy (read Robinhood traders) pushing moves in both directions during the day.  This new group of traders is driving marginal demand for contracts (particularly in the big-name FAANGM tickers) that, in turn, leads to increased volatility and outsized moves as they pile in and out both during premarket and during the day.

After the close, DIS announced they are reorganizing their various divisions to make their primary focus the video streaming business.  Technology research company Gartner also announced that the US personal computer industry had the best in 10 years on Q3.  PC shipments were up almost 11.5% for Q3 and they are expecting blow-out quarterly reports by HP, DELL, AAPL, MSFT along with various foreign PC makers.  However, overnight JNJ halted Phase 3 vaccine testing due to an unexplained illness.

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,038,037 confirmed cases and 220,018 deaths.  The 7-day average daily new case count rose again to 50,612/day.  Dr. Fauci (NIH) told reporters that “the US is on a trajectory of getting worse” with 31 states are trending upward in daily cases compared to one week ago.  (Not good as we are just now entering Winter and flu season.) One example of the problem is the small population state of ND, which has less than 20 ICU beds available for the entire state, recorded nearly 500 new cases on Monday, and is already shipping patients to other nearby states.  The main model used by the White House Task Force (Univ. of Washington) is predicting 180,000 more deaths in the US by the end of January unless major improvements in mask usage and social distancing are implemented.

Globally, the numbers rose to 38,097,303 confirmed cases and the confirmed deaths are now at 1,086,400 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In the UK, PM Johnson is under fire from all sides for continuing with his “half a loaf” approach.  He increased restrictions Monday, but did not institute a second two-week national lockdown that the scientific advisory committee has been urging for 3 weeks.  In the meantime, the daily case count in the UK is 3 times that of their worst pre-summer lockdown week.  France also continues to have major issues as their national testing positivity rate reached 12.8% Monday.  Spain, Italy and Germany also all continue to struggle with new measures as their second wave surges continue.

Overnight, Asian markets started strong (following the US), but fizzled.  However, they did close modestly positive.  Australia led the gainers up 1.04%, but most of the Asian exchanges ended flat to modestly green such as Shanghai +0.04%, Japan +0.18%, South Korea -0.02%, and Hong Kong was closed due to a typhoon.  In Europe we see a mixed, but much redder scoreboard so far today.  All 3 of the major bourses are negative, with FTSE down 0.41%, DAX down 0.42%, and CAC down 0.33% as of mid-day.  As of 7:30am, US futures are mixed with the QQQ implying a gap up of 0.96%, but the large-caps are both projecting a red open with the DIA down 0.38% and SPY down 0.08%. 

The major economic news for Tuesday is limited to Sept. Core CPI (8:30 am) and Sept. Fed Budget Balance (2 pm).  and no earnings reports scheduled for Monday.  However, earnings season kicks off again with BLK, C, SAL, FAST, FRC, JNJ, JPM, and WIT all reporting before the open.  Other major events include the AAPL iPhone product refresh and AMZN Prime Day. 

Both earnings season, as well as AMZN Prime days (and competitor sales), kick-off in an attempt to jumpstart Xmas sales early, AAPL is holding its iPhone launch event today.  Those are likely to be the drivers today, although the JNJ Trial stoppage will also likely have an impact.  However, there is always room for political or stimulus news causing volatility in this triple-silly season.

So, with the pandemic, political, and earnings risk hanging overhead, be careful, nimble, and potentially light in your trades.  Lock-in profits whenever you can and maintain your discipline.  Stick to your rules, follow the trend, and don’t chase moves you have missed.  Our job as traders is to reduce risk and create consistent gains, not knock the cover off the ball every time we swing.

Ed

Swing Trade Ideas for your consideration and watchlist: CSX, FITB, MCD, DVAX, F, TLRY, ET. 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

Stimulus Hopes Remain Alive

Markets gapped up Friday on more hope for stimulus.  After that the large-caps ground sideways in a slight downtrend.  This left them in indecisive candles.  However, the QQQ continued an uptrend and closed near its highs.  For the day, QQQ was up 1.53%, SPY up 0.89%, and DIA up 0.58%.  The VXX fell over 5% to 22.29 and T2122 remains deep in the overbought territory at 98.89. 10-year bond yields were essentially flat at 0.779% and Oil (WTI) fell 1.63% to $40.52/barrel.

On the stimulus front, over the weekend the White House raised their offer and Chief Economic Advisor Kudlow said they may go well above the Democrat-proposed $2.2 trillion. The White House also sent another letter to Congress pleading to separate another portion of the package (PPP loans/grants this time) as a stand-alone bill.  Still, House Speaker Pelosi seems to be holding her ground that no piece-meal one-off bills will be passed and any bill must be part of a larger agreement.  So, both of the main negotiators say the sides remain at an impasse.  Worse yet, Republican Senators have also attacked the White House’s attempt to reach a deal by raising the offer, and now say there is virtually no chance of passing any deal before the election.  However, market optimism for a deal soon remains alive as negotiations continue.

The Chinese Central Bank made it easier to short the yuan over the weekend. Sunday night the Chinese currency traded down 0.6% (a significant move for forex). Of course, a weaker yuan makes non-Chinese products and commodities more expensive in China and also makes Chinese products and commodities cheaper throughout the rest of the world.  In addition, the Chinese government announced a market-based reform that will give local authorities more power to regulate local businesses.  These moves could be related to US-China trade relations, but were definitely seen as positives by the Asian markets.

On the virus front, in the US, the numbers show we now have 7,992,810 confirmed cases and 219,702 deaths.  After 56,652000 cases Thursday, the 7-day average daily new case count rose again to just over 50,000/day, while the lagging average of deaths remains flat at 725/day.  31 states are trending upward in daily cases, with only 3 states trending downward compared to one week ago.  At the same time, the US government has struck a $486 billion deal with AZN for 100,000 doses of an antibody cocktail treatment similar to the one President Trump received.  Delivery should begin by the end of 2020 with the US having the option to buy up to another 1 million doses by the end of 2021.

Globally, the numbers rose to 37,795,463 confirmed cases and the confirmed deaths are now at 1,081,934 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In Europe, things are getting bleak again.  Germany confirmed the most daily virus-related deaths since May on Saturday.  Meanwhile, Russia, the Czech Republic and Hungary all reported records for new cases on both Saturday and Sunday.  Italy’s new cases climbed for a sixth straight day, reaching the highest daily level since March.  In the UK, on Sunday a government Minister announced new restrictions, and one of the chief scientific advisors told the BBC a second national lockdown was quite possible unless they can curb the sharp rise in cases and hospitalizations.

Overnight, Asian markets were mostly higher, with outsized gains in China.  Shenzhen (+3.31%) led that way, followed by Shanghai (+2.64%), and Hong Kong (+2.20%).  The only appreciable loser on the day was Malaysia (-0.78%).  In Europe, markets are also mostly higher Monday.  The FTSE (-0.08%) is flat while the DAX (+0.28%), and CAC (+0.52%) are positive.  As of midday the only significant loss is in Greece (-1.54%). As of 7:30am, US futures are implying a mixed open with the Dow flat (+0.01%), S&P500 up (+0.45%), and the Nasdaq gapping (+1.37%).

There are no major economic news and no earnings reports scheduled for Monday.

With earnings season (as well as AMZN Prime days and the AAPL iPhone launch event) not starting until Tuesday and no economic news scheduled for today, Monday may be a “wait and see” day for the markets.  However, there is always room for political or stimulus news causing volatility. This is especially true given the market's love for more stimulus and apparent willingness to assume it will come sooner or later, and if later then bigger. Also, don't forget today is a federal holiday, and bond markets are closed.

So, with the political, economic, and earnings risk hanging overhead, be careful, nimble, and potentially light in your trades.  Lock-in profits whenever you can and maintain your discipline.  Stick to your rules, follow the trend, and don’t chase moves you have missed.  Welcome back and I hope it was a great weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: DOMO, WKHS, AAPL, FVRR, INTC, KO, GNUS. 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.

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