May CPI Print Will Call The Tune Early

Markets turned in a mostly dull day Wednesday as traders seem to be waiting on the Premarket CPI data today.  However, an afternoon selloff took markets out on the lows and created ugly black candles in all 3 major indices.  The DIA printed a Bearish Doji Continuation pattern to boot.  On the day SPY lost 0.15%, DIA lost 0.45%, and QQQ gained 0.02%.  The VXX rose over 1.5% to 33.68 and T2122 fell just outside the edge of the overbought territory to 79.37.  10-year bond yields fell significantly to 1.492% in spite of near-unanimous expectation of rising inflation and Oil (WWTI) fell half a percent to $69.75/barrel.

Wednesday was a massive profit-taking day for the meme stocks.  AMC fell over 10%, CLOV was down 23%, WEN was down almost 13%, while GME was flat. Part of GME’s ability to hold was the announcement that two AMZN execs have been hired as GME’s CEO and CFO.  GME also reported 25% sales growth when it reported after-hours.  However, the company also declined to provide an outlook and report also included a plan to sell 5 million more shares.  GME fell 12% in after-hours on that earnings report.

Global banking regulators (Basel Committee on Banking Supervision) are proposing “conservative” rules related to Bitcoin.  Under the plan, banks would need to hold cash equal to their cryptocurrency holdings as part of their capital reserves.  This is strict compared to the “fractional reserves” required for other assets such as loans, options, or other leveraged derivatives.  In essence, this is a case of global banking authorities giving the governments of the world cover to use the banks of their countries to partially control cryptocurrency markets.  Oddly enough, bitcoin is up overnight on this news, now just under $38,000.

Related to the virus, new US infections continue to fall.  The totals rose to 34,264,727 confirmed cases and deaths are now at 613,494. These numbers are now under-reported again as some states (mostly Southern) have decided to stop reporting data on a daily basis. Nonetheless, on the data we do have, the number of new cases is falling again and are back down to an average of 14,019 new cases per day (the lowest number since March 2020). Deaths are also falling, just more slowly, but are now down to 409 per day (again, the lowest number since March 2020).  

The CDC reported that less than half of the JNJ vaccine doses sent to states have been administered.  This compares to PFE and MRNA, which have seen more than 83% of the doses administered and delivered a much larger number of doses to boot.  The JNJ news is a concern because many of the JNJ doses will expire by month-end.  However, Dr. Fauci (NIH) told reporters Wednesday that the FDA is considering extending the expiration date of the JNJ vaccines to avoid wasting those doses.

Overnight, Asian markets were mixed, but mostly green with Shenzhen (+1.19%) and Taiwan (+1.14%) leading gainers.  In Europe, stocks are mixed and muted as traders wait on the US inflation reading for May.  The FTSE (+0.26%) and DAX (+0.04%) are green while the CAC (-0.21%) is in the red as of mid-morning.  As of 7:30 am, US Futures are also pointing to a modest, mixed open.  The DIA is implying a +0.16% open, the SPY implying a +0.04% open, and the QQQ implying a -0.22% slight gap down an hour in front of the CPI print.

The major economic news scheduled for Thursday includes May CPI and Weekly Initial Jobless Claims (both at 8:30 am), the WASDE Report (World Ag Forecasts, at noon), and May Fed Budget Balance (2 pm).  The only major earnings reports on the day are SIG before the open and CHWY and PLAY after the close.

All eyes are on the May CPI print at 8:30, which is a bit odd since there is a very large consensus that the number will come in showing much higher inflation than April, yet nobody expects it to impact Fed actions in the short-term. Personally, I expect some brief volatility in markets and then a return to normal, no matter what the print. So, if you are not already hedged, there is nothing to do before the open. Even then, I might wait a bit before overreacting the first minutes of the market. Then again, that's just me.

With the SPY fighting resistance and the DIA and QQQ fighting to hold trend, divergence and volatility are likely. Remember that consistency is the key to long-term trading success. So, keep hitting those singles and doubles. Follow the trend (the one appropriate for your trading horizon) and respect support and resistance levels. However, don't just assume those levels will hold...they are all breached eventually. Beyond that, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|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

Traders Look For Another Inflation Cue

Indecision reigned Tuesday as markets diverged in a wavering sideways pattern all day.  This left us with a black Spinning Top in the QQQ, Potential Hanging Man in the SPY, and Doji type in the DIA.  On the day, the SPY gained 0.03%, DIA lost 0.07%, and QQQ gained 0.05%.  However, the small-caps continued their run higher as the IWM gained 1.06%.  The VXX gained a little over a percent to 33.18 and T2122 climbed higher into the overbought territory at 93.12. 10-year bond yields fell on better-than-expected Trade Deficit data to 1.531% and Oil (WTI) rose a.45% to $70.24/barrel.

Meme stock climbed back on the galloping horse Tuesday as put in a 15% range, but ended flat.  However, the Reddit eye had moved to CLOVW (Warrants) which shot 161% higher on the day.  WEN also they were pitched on the Reddit WallStreetBets forum, trading in 16% range after a 19% gap higher and closing up 26% on the day. In a related story, social media darling Bitcoin fell to $32,000 overnight after trading at $39,000 a week ago and trading at $37,000 on Monday.

As traders watch inflation for clues as to Fed action, we saw contradicting signals Tuesday.  Lumber futures fell 5% with a top industry executive telling CNBC he expects more price relief over the next 6-12 months.  However, CMG also raised their prices 4%, stating that the increase was to offset wage inflation.  For what it is worth, the Dow Jones Economist Survey consensus is that we see a 4.7% annualized CPI for May, up from 4.2% in April.  In addition, 10-year bond yields are down in premarket trading.  However, this is all prelude to the Thursday morning May CPI and next week’s May PPI data.   

As expected, the Senate passed a bipartisan $250 billion technology and manufacturing bill aimed at better competing with China.  The bill will pay for some research, but largely will go for subsidies to chip and robot makers which set up manufacturing facilities in the US, as well as an overhaul of the National Science Foundation. Companies that can expect to see a part of that $52 billion in chipmaker subsidies include TSM, INTC, AMAT, MU, and NVDA. In unrelated news, a bipartisan group of Congressmen have proposed an $878 billion infrastructure bill compromise now that White House - GOP Senatorial negotiations have ended.

Related to the virus, globally, the numbers rose to 174,802,246 confirmed cases and the confirmed deaths are now at 3,764,250 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 400,740 new cases per day.  Mortality, which lags, is also falling but remains at 9,617 new deaths per day.  

Overnight, Asian markets were mixed, but leaned to the red side in modest trading after Chinese Producer Prices surged the most they had since 2008 (up 9% in May).  South Korea (-0.97%), India (-0.67%), and Taiwan (-0.64%) paced the losses. Thailand (+0.83%) and Indonesia (+0.80%) led gainers.  In Europe, markets are also mixed so far this Wednesday.  Oddly, the 3 major exchanges are all on the red side with the FTSE (-0.58%) and DAX (-0.55%) pacing the losses and CAC (-0.06%) flat.  The rest of the continent is mixed, but leans green.  As of 7:30 am, US Futures are flat with the DIA implying a -0.09% open, the SPY implying a +0.08% open and the QQQ implying a +0.30% open.

The only major economic news scheduled for Wednesday is Crude Oil Inventories (10:30 am) and 10-year Bond Auction (1 pm).  Major earnings reports on the day include BF.A, BF.B, CPB, and UNFI before the open.  Then, after the close, GME, GEF, and RH report.

Large-caps seem to be struggling with resistance while the tech-heavy QQQ try to not fall back down retest their breakout as support. Yet the biggest moves are now coming from the IWM, where we may see signs of a small rotation into those small-cap names. Divergence is not that uncommon, but it is not the norm. It can be a sign of a change in market character (preceding a turn). However, we have to be careful not to predict the future...just be aware and prepared to act should market conditions change.

Consistency is the key to long-term trading success. So, keep hitting those singles and doubles rather than swinging for the fence. Follow the trend (the one appropriate for your trading horizon) and respect support and resistance levels. However, don't just assume those levels will hold...they will be breached eventually. Beyond that, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules.

Ed

Swing Trade Ideas for your consideration and watchlist: ATER, SSYS, XELA, SNX, OTRK, EBON, JMIA, TDOC, PLBY, STLD. 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

Divergence and Morning Internet Outage

The market opened just South of flat on Monday.  After a morning selloff, markets ground sideways most of the day in the large-caps with the SPY and QQQ putting in a small rally the last hour.  This left a Doji-Harami in the SPY, a Bearish Engulfing in the DIA and a white candle that broke out of the last week’s range in the QQQ.  However, the big divergence was with small-caps (IWM) that rallied most of the day, closing not far from the highs and gaining 1.34%.  Meanwhile, on the day the SPY lost 0.08%, DIA lost 0.38%, and QQQ gained 0.30%.  The VXX was down almost 2% to 32.77 and T2122 remains in the overbought territory at 84.59.  10-year bond yields fell a bit more to 1.569% and Oil (WTI) was down six-tenths of a percent to $69.20/barrel.

During the day, AAPL announced new operating systems for the Mac, iPad, iPhone, and Apple Watch.  Meanwhile GOOG agreed to a $268 million settlement with the EU over antitrust activities.  KHC also announced they have begun buying back up to $2.8 billion of their own debt (bonds) with offers that expire June 11.  On the other end of the debt scale, MSTR announced that it is selling bonds (borrowing) later in the week in order to fund the purchase of $400 million more of Bitcoin.  In addition, after a 9.5% gap up and a 16% additional range, AMC continued its Reddit-fueled climb, closing up 14.8%.  However, the big news of Monday was BIIB, which surged 60% before pulling back to close up 38% on the FDA approval of their Alzheimer’s Disease drug.

Commerce Sec. Raimondo told CNBC that the global semiconductor chip shortage will be a daily challenge for the US economy (including the Auto, computer, and consumer goods industries) for the next year.  She noted the Senate is close to approving $52 billion in subsidies for chip manufacturers.  However, her outlook is far more optimistic than semiconductor industry analysts that expect the shortages to last well into 2023, based on the long time it takes for manufacturers like TSM, INTC, QCOM, AVGO, MU, NVDA, AMAT, HXSCL, and Samsung to bring additional semiconductor capacity online.  (Most capacity has long since been booked through at least 2022 at this point.)

There was a major global internet outage reported early today as FSLY (cloud services provider) went down.   This impacted a large chunk of the internet traffic and impacted AMZN, TGT, CNN, Bloomberg, Reddit, Hulu, SPOT, and even the UK government were offline.  FSLY says the problem is now fixed, but many sites remain out as of 7 am.    

Related to the virus, new US infections continue to fall.  The totals rose to 34,227,237 confirmed cases and deaths are now at 612,701.  However, the number of new cases is falling again and are back down to an average of 14,317 new cases per day (the lowest number since March 2020). Deaths are also falling, just more slowly, but are now down to 400 per day (again, the lowest number since March 2020).  CRM CEO Benioff said Monday that he expects at least half of the company’s employees to work from home after the pandemic.  (This is up from 20% of the employees that worked from home in 2019.)  Globally, the numbers rose to 174,429,426 confirmed cases and the confirmed deaths are now at 3,753,525 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 412,986 new cases per day.  Mortality, which lags, is also falling, but remains at 9,670 new deaths per day.  

Overnight, Asian markets were mostly in the red.  Indonesia (-1.16%) and Shenzhen (-0.98%) paced the losses while Malaysia (+0.60%) was the only exchange to remain appreciably green.  In Europe, markets are mixed but lean toward the green side at this point in the day. The FTSE (+0.25%) and CAC (+0.21%) are modestly green with the DAX (+0.05%) flat as of mid-morning.  At 7:30 am, US Futures are also pointing to a mixed and modest open.  The QQQ is implying a gap up of 0.39%, but the DIA is implying a -0.06% open and the SPY is implying a +0.09% open at this point.

Major economic news scheduled for Tuesday is limited to April Trade Balance (8:30 am) and April JOLTS /Job Openings (10 am).  Major earnings reports on the day include ASO, MOMO, NAV, and THO before the open.  Then, after the close, ABM, BEST, and CASY report.

Markets seem to be looking to continue the divergence seen Monday. The SPY appears to be stuck at all-time high resistance, while the DIA looks to have failed its latest test of that all-time high resistance, and yet the QQQ and IWM appear to be trying to follow-through Monday's breakout of their recent ranges. With no huge news and no big earnings to push markets, we may see the chop and volatility resume. However, keep an eye on that divergence which might, just possibly, signal a rotation back into the high-flying tech sector that led the rally earlier this year.

Follow the trend (the one appropriate for your trading horizon) and respect support and resistance levels (but don't just assume they will hold). Beyond that, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Consistency is the key to long-term trading success. So, keep hitting those singles and doubles rather than swinging for the fence.

Ed

Swing Trade Ideas for your consideration and watchlist: SPCE, JMIA, PLTR, MSFT, TDOC, FB. 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

Weekend News Lead by Yellen Deal - Talk

Markets gapped-up Friday as the May Payroll numbers seemed to hit the sweet spot.  After that, stocks did a very slow, but steady climb into the last few minutes of the day.  This left us with strong white candles in all 3 major indices.  On the day, SPY gained 0.91%, DIA gained 0.54%, and QQQ gained 1.70%.  The VXX fell over 5% to 33.39 and T2122 climbed back into the overbought territory at 87.62.  10-year bond yields fell to 1.557% and Oil (WTI) rose eight-tenths of a percent to $69.37/barrel.

The big weekend news was the G-7 (US, Canada, France, Germany, Italy, Japan, and the UK) agreeing to back a proposal for corporations to pay a minimum of “at least 15%” tax rate.  In addition, the agreement included rules forcing companies with at least a 10% profit margin to pay taxes on at least 20% of the profits earned, in the country where the sale was made.  This is a step toward preventing corporate shell games to avoid taxes by moving profits to low-tax haven countries.  While these are major steps in the negotiations around digital economy taxation, these measures are still a long way from implementation, perhaps years.  Getting sign-off by the G-20 (which includes China, India, Brazil, and Russia among others) is the next step.  Key opponents of such digital tax rules include AAPL, GOOG, FB, etc. as well as countries whose business model is “low tax rates to draw in major companies.”

Sunday, Treasury Sec. Yellen told Bloomberg that the US has been fighting inflation and interest rates that are “too low” for a decade.  So, she said that slightly higher interest rates would be a good thing, not a bad thing.  She (former Fed Chair) said this is also the Fed’s point of view.  So, she concluded that President Biden’s $4 trillion spending proposals (which would increase spending $400 billion per year) would be a positive for the economy and society in general.

Related to the virus, new US infections continue to fall.  The totals rose to 34,210,782 confirmed cases and deaths are now at 612,366.  However, the number of new cases is falling again and are back down to an average of 13,185 new cases per day (the lowest number since March 2020). Deaths are also falling, just more slowly, but are now down to 375 per day (again, the lowest number since March 2020).    

Globally, the numbers rose to 1724,092,834 confirmed cases and the confirmed deaths are now at 3,745,093 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 418,913 new cases per day.  Mortality, which lags, is also falling, but remains at 9,741 new deaths per day.

Overnight, Asian markets were mixed on very modest moves.  Singapore (+0.79%), New Zealand (+0.53%), and India (+0.52%) led the gainers.  Meanwhile, Malaysia (-0.76%), Hong Kong (-0.45%), and Taiwan (-0.37%) paced the losers.  In Europe, markets are mostly green on modest moves so far today.  The FTSE (+0.26%), DAX (+0.15%), and CAC (+0.31%) are typical of most of the continent’s exchanges.  As of 7:30 am, US Futures are also pointing to a flat open.  The DIA is implying a +0.09% open, the SPY implying a -0.04% open, and the QQQ implying a -0.13% open.

There is no major economic news scheduled for Monday.  There are no major earnings reports on the day.  The only major earnings reports on the day come after the closing bell when MRVL, REVG, SFIX, and MTN report

It seems that markets want to start the week off slow at the open Monday as the bulls chase the record highs, just points away. A lower than expected May Payrolls number Friday helped alleviate inflation fears, but only time will tell if that feeds over into Monday trading. The global tax news, while impactful on major multi-national tax dodgers, is still months or years away. So that proves Yellen's chops on deal-making, but should not move markets in the short-term. So, just remember we are at the all-time highs, an area that has proved to be resistant before. However, the mid-term and short-term trends are bullish.

Follow the trend (the one appropriate for your trading horizon) and respect support and resistance levels (but don't just assume they will hold). Beyond that, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Consistency is the key to long-term trading success. So, keep hitting those singles and doubles rather than swinging for the fence.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|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

May Payrolls Will Likely Set Direction

On Thursday, May ADP Nonfarm Payrolls came in 50% above expectation and the Weekly Jobless Claims came in slightly under estimates.  Nonetheless, stock markets gapped down to start the day.  The large-caps then immediately began fading the gap, before the sideways grind started at 11am and lasted the rest of the day.  So, it was another day of pre-market move, immediate fade, and then just drifting sideways most of the session.  This left gap-down indecisive Spinning Top type candles in all 3 major indices.  On the day, SPY was down 0.36%, DIA was down 0.10%, and QQQ was down 1.08%.  The VXX rose about 2% to 35.24 and T2122 fell just outside the overbought territory at 76.84.  10-year bond yields spiked to 1.627% and Oil (WTI) was flat at $68,84/barrel.

During the day, the Washington Post reported that President Biden is pushing a 15% minimum corporate tax rate (for companies who pay little or no tax now).  This was floated as a way to partially fund infrastructure spending.  CNBC reported that this would raise tax revenues $140 billion over 10 years on top of the $700 billion that a new 28% normal corporate tax rate would raise.  This news hit many major tech stocks hard, who fall into this category, including AMZN, NVDA, QCOM, NFLX, and MU.  However, the implications are broader than just tech, as many names like MCD, PFE, and FEDX have all fallen into the group that have paid less than 15% in taxes in the past.  In a completely unrelated story, FB was hit with new antitrust probes in the EU and UK overnight.

The AMC roller-coaster continued Thursday as gapped down 7%, suffered an 83% range for the day, halted trading multiple times, and closed down 18%.  The company also completed the sale of 12 million new shares (announced during the premarket and completed by lunch) to rake in $587 million of new capital and outraging the Reddit group that had been squeezing the shorts.  Then, overnight, the CEO of AMC told an interview that he wants to sell 25 million more new shares (twice as many as were issued Thursday).  Unsurprisingly, the in the pre-market AMC is down in very volatile trading.

Related to the virus, new US infections continue to fall.  The totals rose to 34,174,752 confirmed cases and deaths are now at 611,611.  However, the number of new cases is falling again and are back down to an average of 15,549 new cases per day (the lowest number since March 2020). Deaths are also falling, just more slowly, but are now down to 390 per day (again, the lowest number since March 2020).  The NIH has reported that a new oral treatment for Covid-19 (named TEMPOL, from ADMP) has shown promise in a study published in the journal Science.  If approved, the drug would join GILD’s drug remdesivir as the only FDA-approved treatments for the disease.  ADMP’s stock soared 61% on the news.  In not so good news, the average number of vaccinations per day has fallen to about 800,000.    

Globally, the numbers rose to 172,963,233 confirmed cases and the confirmed deaths are now at 3,718,849 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 458,650 new cases per day.  Mortality, which lags, is also falling, but remains at 10,270 new deaths per day.

Overnight, Asian markets were mostly red, on modes moves.  Malaysia (-0.76%) and Taiwan (-0.57%) paced the losses while Shenzhen (+0.74%) and New Zealand (+0.53%) led the gainers.  However, in Europe markets are mostly green on small moves so far today as the world waits on US data.  The FTSE (-0.12%) is down, while the DAX (+0.07%) and CAC (+0.04%) are both just on the green side of break-even.  As of 7:30 am, US Futures are also pointing to a mixed, flat open as we wait on the premarket data releases.  The DIA is implying a -0.07% open, the SPY implying a +0.05% open, and the QQQ implying a +0.12% open at this hour.

The major economic news scheduled for Friday includes the May Nonfarms Payrolls, May Participation Rate, May Unemployment Rate, and May Avg. Hourly Earnings (all at 8:30 am), Apr. Factory Orders (10 am), and Fed Chair Powell speaks at 7 am.  There are no major earnings reports on the day.

All eyes seem to be pointed toward the May Payroll data. The reaction to this number will undoubtedly call the tune at least early in the day. Economists are estimating a +650k report, but remember that the April number came in much lower than expected a month ago. Regardless, the long and mid-term trends remain bullish, while, for the moment markets are in a short-term pullback. Caution is clearly warranted in a market when the moves are made outside of open session hours.

Remember this is Friday, so don't forget to pay yourself and get any hedging or position-lightening in front of the weekend done. Beyond that, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick with the trend (the one appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). However, also remember that you don't have to trade every day. Don't be afraid to take some time to stop trading and sharpen your axe instead. Consistency is the key to long-term trading success. And a refined process and sharpened skills are the keys to consistency. So, keep hitting those singles and doubles rather than swinging for the fence.

Ed

Swing Trade Ideas for your consideration and watchlist: GOEV, AI, SKLZ, QD, KSS, DELL. 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

A Slew of Data and the AMC Circus in Town

Without a major driver, markets ground sideways all day in the 3 major indices.  This left all 3 printing an indecisive Doji-Harami candle Wednesday.  On the day, SPY gained 0.17%, DIA gained 0.14%, and QQQ gained 0.20%. The VXX fell 2.5% to 34.61 and T2122 fell a bit, but still remains well into the overbought territory at 87.58. 10-year bond yields fell a bit to 1.591% and Oil (WTI) gained 1.5% to $68.76/barrel.  In related news, after the close, the Fed announced that it will soon begin selling the $13.7 billion in corporate debt it purchased in 2020, at some unspecified time in the future.  (More details as the sale nears.) While this is a trivial amount (in Fed or Fiscal stimulus terms), this is the first sign whatsoever of Fed tapering its easing policy.

The meme stock AMC continued its wild, perhaps miraculous ride on the “social-media short squeeze” train Wednesday.  The stock closed up 100% after a 16% gap-up, several trading halts, and a 105% range day.  That leaves the stock up a cumulative 432% in the last 7 trading days and a cool 2,900% for the year. Overnight that wild ride continued with a 20% range, but only up 1% as of 7:30 am (in VERY volatile trading).  To top this all off, AMC filed with the SEC early today to sell 11 million new shares.  In a related story, it’s interesting to think that Mudrick Capitol (who had bought $230 million of AMC in a new offering on Tuesday, only to flip the stock a few hours later for a purported near $100 million profit) ended up missing out on another potential $300 million, which it could have earned by holding the stock an additional 24 hours. 

News leaked near the close that XOM appears to have "lost" a third board seat (out of 13) to the activist group seeking to push the company to move away from fossil fuels and toward becoming a carbon-neutral business. Prior to Wednesday, it had been confirmed that activist group Engine No. 1 had won 2 board seats. However, now the vote counting has been completed and it shows they actually won 3 of the seats.  In other corporate news, after the close, FEYE announced it is selling its security products business (and name) to a private equity firm.  The remaining cyber forensics unit will continue under the name Mandiant Solutions. No word yet on how this impacts the FEYE ticker or whether Mandiant will list under a different ticker name.

Related to the virus, new US infections continue to fall.  The totals rose to 34,154,305 confirmed cases and deaths are now at 611,020.  However, the number of new cases continues to fall and is back down to an average of 16,501 new cases per day (the lowest number since March 2020). Deaths are also falling, just more slowly, but are also now down to March 2020 levels at 405 per day.   

Globally, the numbers rose to 172,478,958 confirmed cases and the confirmed deaths are now at 3,708,029 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 466,464 new cases per day.  Mortality, which lags, is also falling, but remains at 10,408 new deaths per day.

Overnight, Asian markets were mixed yet again, on uneven moves.  The regional catalyst seems to be May Chinese PMI number coming in below April and less than expected (although still strongly expansionist at 55.1).  Indonesia (+0.99%), India (+0.73%) and South Korea (+0.72%) led gainers, while Hong Kong (-1.13%) and Shenzhen (-0.65%) paced the losses.  In Europe, markets are red across the board so far Thursday.  The FTSE (-0.98%), DAX (-0.63%), and CAC (-0.48%) are typical of the continent.  As of 7:30 am, US Futures point toward a lower open.  The DIA is implying a -0.56% open, the SPY implying a -0.67% gap down, and the QQQ implying a -0.95% gap down to start the day.

The major economic news scheduled for Thursday includes May ADP Nonfarm Employment (8:15 am), Weekly Initial Jobless Claims, Q1 Nonfarm Productivity, and Q1 Unit Labor Costs (all at 8:30 am), May Services PMI (9:45 am), ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (11 am), and 2 Fed speakers (Bostic at 12:30 pm and Quarles at 3:05 pm).  Major earnings reports before the open are limited to DOOO, CIEN, SJM, and TTC.   Then, after the close, AVGO, FIVE, JOAN, LULU, NGL, and SAIC report.  

Fear out of the Chinese data (strong expansion, but not blowing the lid off the economic pot) has global markets spooked early this morning. With a slew of US economic data to follow before the open, it's too early to call the opening market sentiment. However, the sideways grind of the last few days certainly appears more "toppy" than ever. Regardless, the long and mid-term trends remain bullish, while, for the moment the short-term trend is sideways. Caution is clearly warranted.

As always, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick with the trend (the one appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). However, also remember that you don't have to trade every day. Don't be afraid to take some time to stop trading and sharpen your axe instead. Consistency is the key to long-term trading success. And a refined process and sharpened skills are the keys to consistency. So, keep hitting those singles and doubles rather than swinging for the fence.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|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

Meat Supplier is Latest Hit By Hackers

Markets gapped up Tuesday on optimism coming off the long weekend (or perhaps in sympathy with European markets that celebrated EU stimulus spending).  However, after the gap, the rest of the day was a fading of the gap and then a sideways grind in a tight range.   QQQ printed what could be seen as a bearish engulfing of a Doji while the large-caps both just printed large ugly candles.  This leaves us with a potential double-top in the large caps.  On the day, SPY lost 0.09%, DIA gained 0.08%, and QQQ lost 0.33%.  The VXX rose 2.25% to 35.48 and T2122 shot back up well into the overbought territory at 91.84.  10-year bond yields rose to 1.61% and Oil (WTI) was up about 2.5% to $67.93/barrel (the highest level since 2018).

Brazilian-based meat processor JBSAY suffered a ransomware cyberattack over the weekend. The company accounts for 25% of US beef packing, but also has significant market share in the pork and poultry markets as well.  JBSAY will close all US plants today.  However, it is likely that much just like the Colonial pipeline impact on gas prices, the impact is likely to be short-term. That said, it will lead to increased profits for their competitors and general meat price inflation throughout the US food industry, for at least for the next few weeks.  TSN, SYY, HRL, CAG, PPC, KR, WMT are a few of the tickers that can be affected by this situation.

After another incredibly volatile day with a 20% range, AMC ended Tuesday up almost 23% (which was very close to where it had gapped up to open).  It looks to be doing it again today, up 21% at the moment but having been up 40% overnight.  In other social-media-driven market news, Elon Musk tweeted support for the Korean publisher (Korean-listed Samsung Publishing) behind the “Baby Shark” video/meme.  The stock soared 10% (a huge move for the stock) in Korean trading. In "crypto craze" news, Dogecoin is soaring in (+30%) since COIN (the largest crypto exchange) enabled some of its users to trade that cryptocurrency Tuesday.

Related to the virus, new US infections continue to fall.  The totals rose to 34,136,738 confirmed cases and deaths are now at 610,436. However, the number of new cases is falling again and are back down to an average of 17,387 new cases per day (the lowest number since March 2020). Deaths are also falling, and are now down to 416 per day (again, the lowest number since March 2020).  The NIH announced that it has begun a small trial (150 patients) of mix-and-match vaccination, where the patient was originally full-vaccinated using PFE, MDNA, or JNJ vaccine, but the receive a booster shot from a different drug company 3-4 months after the original vaccination was complete. 

Globally, the numbers rose to 171,993,794 confirmed cases and the confirmed deaths are now at 3,577,436 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 476,511 new cases per day.  Mortality, which lags, is also falling, but remains at 10,569 new deaths per day.  In some great news, the UK recorded no Covid deaths on the day for the first time since the pandemic began.

Overnight, Asian markets were mixed again, but this time more evenly split.  Shenzhen (-1.18%), Singapore (-0.82%), and Shanghai (-0.76%) paced the losses.  Meanwhile, Indonesia (+1.41%), Australian (+1.05%), and Malaysia (+0.76%) led gainers.  This all came on reports that the region’s economy has bounced back to pre-pandemic levels during Q1.  In Europe, markets lean more to the green side, but on modest moves.  The 3 major indices are basically flat with the FTSE (+0.14%), DAX (-0.02%), and CAC (+0.17%) basically unchanged at this point in their day.  This came as the ECB said that core inflation is not high and it would be premature to tighten monetary policy.  As of 7:30 am, US Futures are flat.  The DIA is implying a +0.09% open, the SPY implying a +0.02% open, and the QQQ implying a -0.01% open.

The major economic news scheduled for Wednesday is limited to Fed Beige Book (2 pm) and 2 Fed speakers (Bostic and Brainard, both at 2 pm).  Major earnings reports before the open are limited to AAP and DCI.  Then, after the close, EDR, NTAP, PVH, SPTN, and SPLK report.  

Markets are looking undecided so far this morning after a volatile, if flat, start to June. With no major economic news or earnings expected on the day, it is possible we see a rest day in front of a bevy of news that is scheduled for Thursday morning. Regardless, the long and mid-term trends remain bullish, while the short-term trend is sideways. Inflation fear remains the main concern for markets, but the Fed and Central Banks around the globe continue to tell us not to worry since they are not changing policy and inflation is transient and not core. At the same time, a screaming economy and blowout profits are still the stories told by the vast majority of important earnings reports.

Remember that you don't have to trade every day. It's hard to make money trading a market that "gaps and fades" and generally grinds sideways. So, don't be afraid to take some time to stop trading and sharpen your axe instead. Consistency is the key to long-term trading success. So, as always, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick with the trend (the one appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). Keep hitting those singles and doubles rather than swinging for the fence. Welcome back from the holiday...let's go make some money.

Ed

Swing Trade Ideas for your consideration and watchlist: SENS, QD, WKHS, MARA, AI. 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

EU Stimulus and Meme Stock Rally

Despite premarket economic data that was worse than expected (Apr PCE Prices +3.1 vs. +2.9% est.) markets still gapped higher at the open Friday.  However, from there we saw a sideways grind the rest of the day, fading the gap in all 3 major indices.  Only the QQQ printed a potential candle signal with what could be called a Shooting Star type of candle.  On the day, SPY gained 0.21%, DIA gained 0.30%, and QQQ gained 0.32%. The VXX rose 1.5% to 34.70 and T2122 fell back out of the overbought territory to 75 even.  10-year bond yields fell to 1.581% and Oil (WTI) was just shy of flay to $66.61/barrel.  All of this happened on very light volume as traders had left early for an extra-long weekend.

The meme stocks had another day of massive volatility Friday as GME had a range of more than 20% to close down almost 13% and AMC had a 52% range to close down 1.6% on the day.  For the week, AMC was up over 116% and GME up over 25% on ranges of 202% and 55% respectively.  For its part, AMC is taking advantage of the situation by selling more stock ($231 million) and the ride seems primed to continue as AMC is up over 12% in early premarket trading Monday.

Private equity firm KKR took tech data analytics firm CLDR private early today at a cost of $4.7 billion ($16/share).  CLDR had closed at $12.86 on Friday, so holders got a 24% premium.  (KKR is famous for buying companies, slicing/dicing them, recombining them with complementary companies and the IPOing the new entity.)

Related to the virus, new US infections continue to fall.  The totals rose to 34,113,146 confirmed cases and deaths are now at 609,767.  However, the number of new cases is falling again and are back down to an average of 17,275 new cases per day (the lowest number since March 2020). Deaths are still plateauing or falling more slowly, but are now down to 460 per day (the lowest number since March 2020).  The CDC says that nearly 51% of the population is at least partially vaccinated while 41% is now fully vaccinated.  While statistically that is not enough to reach herd immunity, it is a step in that direction with signs of normalcy returning. 

Globally, the numbers rose to 171,520,497 confirmed cases and the confirmed deaths are now at 3,566,430 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 485,983 new cases per day.  Mortality, which lags, is also falling, but remains at 10,801 new deaths per day.

Overnight, Asian markets were mixed, but leaned strongly to the green side Monday.  Indonesia (+1.69%), Thailand (+1.57%), New Zealand (+1.15%), and Hong Kong (+1.08%) were the major movers with much more modest moves by the larger exchanges and small moves among the few red ones.  In Europe, markets are green across the board as the EU is finally ready to spend the more than $917 billion in emergency stimulus it raised earlier in the pandemic.  This will be new spending, on top of the stimulus already spent by the 27 EU countries.  The FTSE (+1.11%), DAX (+1.49%), and QQQ (+0.84%) are typical of the region.  As of 7:30 am, US Futures are pointing toward the large-caps testing the all-time highs with the QQQ testing the highs of the recent range.  The SPY is implying a +0.59% open, the DIA implying a +0.71% open, and the QQQ implying a 0.50% open at this hour.

The major economic news scheduled for Tuesday is limited to Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  Major earnings reports before the open are limited to BNS.  Then after the close, HPE and ZM report. 

Markets seem to be in a good mood for a virtual Monday. Apparently, the long weekend did the traders some good. Of course, the nearly $1 trillion in new stimulus spending in the EU is helpful. So, we start June on a positive note and challenging the highs again. Even the lagging QQQs are only 2% from their all-time highs. And the outlook for the economy (profits) remains strong with the big names claiming to have pricing power, more government spending (nationally and abroad) on tap. While inflation is a very real concept, the Fed assures us not to worry about it this year. In that vein, one thing to keep in mind is that deficits and inflation are long-term economic problems for investors, not short-term market problems for traders.

Consistency is the key to long-term trading success. So, as always, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick with the trend (the one appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). Keep hitting those singles and doubles rather than swinging for the fence. Welcome back from the holiday...let's go make some money.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|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

Reddit Squeezing and Russian Phishing

Markets started with a little gap (up a quarter percent on SPY, half percent on DIA, and down a tenth of a percent on QQQ).  However, that was it for the day as markets traded sideways in a tight rant the rest of the day.  This left all 3 major indices as small-body, black-body candles.  It should be noted that all week stocks have been trading on very low volumes, as markets look ahead to a long weekend.  On the day, SPY (+0.03%) was flat, DIA (+0.36%) gained a tad, and QQQ (-0.38%) lost just a bit.  The VXX fell almost 5% again to 34.16, and T2122 sneaked into the overbought territory at 82.93.  10-year bond yields rose to 1.601% and Oil (WTI) was up nine-tenths of a percent to $66.79/barrel.

MSFT said in a blog post that the same Russian hacking group (MSFT has named the group Nobelium) that carried out the SWI attack early last year have launched a new attack. The impacts of last year’s catastrophic attack are still not fully known or at least have not been made public. However, it appears that the new attack has targeted at least 150 organizations globally.  MSFT said that at least 25% of the targeted groups in the latest attack are humanitarian or human-rights-related organizations.  However, governments, consulting companies, and non-governmental think tanks are also among the targets, which span 24 countries so far.

The Reddit crowd continues to pump the “meme stocks” as AMC shares shot up over 36% on the day and GME gained over 11%.  AMC is up 121% on the week and GME up almost 44% over the same time.  The so-called “short-squeeze” plays certainly work when the squeezers can collaborate on social media.  These moves seem to be continuing in pre-market trading Friday.

Related to the virus, new US infections continue to fall.  The totals rose to 33,999,680 confirmed cases and deaths are now at 607,726.  However, the number of new cases is falling again and are back down to an average of 23,060 new cases per day (the lowest number since June). Deaths are also still falling and are now down to 526 per day (the lowest number since March 2020).   

Globally, the numbers rose to 169,710,788 confirmed cases and the confirmed deaths are now at 3,527,082 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 538,292 new cases per day.  Mortality, which lags, is also falling, but remains at 11,280 new deaths per day.  SNY and GSK have begun Phase 3 trials of their own joint-venture vaccine.

Overnight, Asian markets were mixed, but leaned to the green side on very uneven trading.  Japan (+2.10%), Taiwan (+1.62%), and Australia (+1.19%) stood out among the gainers.  Meanwhile, losses were mild, with New Zealand (-0.50%) and Shenzhen (-0.30%) being the most significant.  In Europe, markets are nearly all green so far today.  The FTSE (+0.31%), DAX (+0.60%), and CAC (+0.69%) are typical of the continent at mid-day.  As of 7:30 am, US Futures are pointing to another gap higher.  The DIA is implying a +0.50% open, the SPY implying a +0.39% open, and the QQQ implying a +0.36% open…but some significant economic data lies ahead before the open.

The major economic news scheduled for Friday include April PCE Price Index, April Trade Balance, April Personal Spending, and April Retail Inventories (all at 8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  Major earnings reports before the open include BIG and CAL.  There are no major earnings reports after the close.

Markets are seeking to end the pre-holiday week on a positive note as the bulls look to make the first push of the day. Expect volume to dry up quickly today, but then again the entire week has happened on low volume. The PCE Price Index might have an effect if it touches the inflation nerve of Mr. Market. Beyond that, look for traders to square up their books, place their hedges, and hit the road early today.

As always, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick to the trend (appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). Consistency is the key to long-term trading success. So, keep hitting singles and doubles rather than swinging for the fence. Don't forget to pay yourself on Pay Day, or that this is a long weekend. And enjoy the holiday!

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|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

3 Big Economic Reports Today

Markets traded in a very tight range all day Wednesday on light volume as it appeared traders decided to get an early start to the long weekend.  All 3 major indices printed indecisive Doji candles at the break-even level.  On the day SPY gained 0.19%, DIA gained 0.03%, and QQQ gained 0.35%.  The VXX fell almost 5% to 35.91 and T2122 remains in the mid-range at 69.66.  10-year bond yields rose slightly to 1.581% and Oil (WTI) gained a fraction to $66.17/barrel.

During the day, the AMZN purchase of MGM Studios for $8.45 billion was agreed.  The move puts them in better position to compete in the streaming space versus NFLX and DIS.  XOM management also lost a historic proxy battle which allowed environmental activists to gain at least 2 (and possibly 3) of the 13 board seats.  The activist group (Engine No. 1) has been pushing the company to move away from fossil fuel and toward a role in a zero-carbon footprint world.  Big bank CEOs also took a grilling on Capitol Hill.  From the left they were hammered over PPP, diversity and collections policies.  From the right, they were hit over “woke capitalism” and what their stance was on budget deficits.  After-hour NVDA beat on both lines on an 84% growth in revenue.

US and Chinese trade representatives held their first phone call since President Biden took office.  No details have been leaked, other than both sides saying it was a candid and constructive call, with both sides agreeing to further discussions.  In what may or may not be separate trade news, Bloomberg reports China has eased its “Offshore Funding Limit” for foreign banks (allowing foreign banks to own larger stakes in Chinese banks), which had been one of the measures imposed during the prior administration’s US-China Trade War. So at least the big banks got somehting out of a day they were grilled by US legislators.

Related to the virus, new US infections continue to fall.  The totals rose to 33,971,207 confirmed cases and deaths are now at 606,179.  However, the number of new cases is falling again and are back down to an average of 23,917 new cases per day (the lowest number since June). Deaths are still plateauing or falling more slowly, but are now down to 537 per day (the lowest number since March 2020).  On Wednesday, 7 major health officials asked Congress to investigate the origin of Covid-19.  President Biden also publicly tasked the US intelligence community to an investigate and report on the origin within 90 days.  Finally, a study published in the JAMA said that 73% of the “moderate to severe” cases saw patients reporting symptoms at least 2 months after diagnosis. 

Globally, the numbers rose to 169,143,484 confirmed cases and the confirmed deaths are now at 3,513,941 deaths.  The trends are better again as we have seen a slowing in the rate of increase now that India has passed its peaked.  The world’s average new cases are falling quickly now, but remain at 555,028 new cases per day.  Mortality, which lags, is also falling, but remains at 11,487 new deaths per day.  Wednesday, the EU asked JNJ to carry out most studies of their vaccine after a Belgian death.  In the Australian state of Victoria, another 7-day lockdown has been issued after a new local outbreak.

Overnight, Asian markets were mixed, but leaned to the green side on uneven, but mostly modest moves.  Malaysia (+1.02%) and Thailand (+0.92%) led the gains, with New Zealand (-0.84%) pacing the losses as the largest exchanges saw smaller moves.  In Europe, markets are mostly modestly green so far today, but the largest exchanges lag.  The FTSE (-0.22%), DAX (-0.20%), and CAC (+0.59%) are not taking their typical leadership roles in the move, with several continental exchanges more green and more red than the big boys.  As of 7:30 am, US Futures are pointing to a modestly lower open (albeit an hour before major economic news).  The DIA is implying a flat +0.02% open, the SPY implying a slightly down -0.18% open, and the QQQ implying a -0.37% fall at the open.

The major economic news scheduled for Thursday includes April Durable Goods Orders, Q1 GDP, and Weekly Initial Jobless Claims (all at 8:30 am), and April Pending home Sales (10 am).  The big bank CEOs will also be in for their second day of testimony (public berating?) on Capitol Hill. Major earnings reports before the open include BBY, BURL, CM, DG, DLTR, MDT, RY, SAFM, and TD.  Then after the close, ADSK, COST, DELL, GPS, GES, HPQ, YY, CRM, ULTA, and VMW report.

Those 3 major reports coming at 8:30 am are likely to call the tune in early trading. However, the volume has been light enough the last few days that it is possible traders are just taking the week off in order to stretch the long weekend ahead. So, beware of volatility and moves on very light volume. Either way, be wary of a resting or indecisive market we've seen the last few days possibly indicating resistance.

As always, keep locking in profits as soon as you achieve your trade goals and maintain discipline by following your trading rules. Stick to the trend (appropriate for your trade horizon) and respect support and resistance levels (but don't just assume they will hold). Consistency is the key to long-term trading success. So, keep hitting singles and doubles rather than swinging for the fence.

Ed

Swing Trade Ideas for your consideration and watchlist: VIAC, FSLY, RKT, NKLA, LAC, FUBO, WKHS, GOGO, BFLY, SOLO, TLRY, SKLZ, RUN. 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.

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