Thursday gave us a more or less flat open after the brutal prior day.  Then markets proceeded on a whippy day-long rally in all 3 major indices.  This left the two large-cap indices as Bullish Harami-type candles.  On the day, SPY gained 1.43%, DIA gained 1.80%, and QQQ gained 0.72%. However, the downtrend was not broken in any of the major indices and there is no indication that the whipsaw action will not continue on Friday.  The VXX fell almost 6% to 25.72 and T2122 came up a bit, but remains in the oversold territory at 14.48.  10-year bond yield rose to 1.449% and Oil (WTI) came up just under 1.9% to $66.81/barrel.

During the day, Germany issued another national lockdown (but only for the unvaccinated).  Their government is debating a national vaccination mandate, but it is unclear if this will happen since Chancellor Merkel leaving office next week.  On our side of the Atlantic, Congress passed a bill to provide temporary funding, avoid a government shutdown, and kick the can down the road until February on passing a budget.  However, the bill still must pass the Senate by Friday to avoid a shutdown and there are indications Senate Republicans will use this leverage to demand a prohibition against government vaccine mandates in the bill.  In an unexpected development, in early-morning hours the Senate passed the shutdown avoidance bill mostly on party lines.

Right at the end of the day, the FTC sued to block NVDA’s acquisition of the chipmaker Arm.  NVDA stock did not respond to the news in the last 30 minutes of the day.  Arm is an alternative chip architecture to the traditional x86 architecture used by the market-leading chipmaker such as TSM.  Arm chips are used in AAPL and QCOM devices as well as Android phones.  In addition to the US lawsuit, this $40 billion purchase by NVDA (from Softbank) also faces stiff resistance from the UK (one-time home of Arm) and the EU by extension.

Thursday afternoon the SEC ruled it is able to force the immediate delisting of Chinese companies that fail to meet the Public Company Accounting Oversight Board (PCAOB) audit requirements.  This stemmed from the 2020 case of Luckin Cofee (LKNCY), who fired its CEO after finding massive internal fraud, where the company simply “created” $310 million in sales on paper.  Thursday night, Chinese ride-hailing company DIDI announced it will delist from the NYSE rather than comply.  The company said it would convert US-listed shares into international exchange shares that are “freely tradeable.” Oddly, DIDI stock spiked 14% higher on this news in the premarket.

Overnight, Asian markets were mixed.  Japan (+1.00%), Shanghai (+0.94%), and Shenzhen (+0.86%) led to the upside.  Meanwhile, India (-1.18%), and Indonesia (-0.69%) paced the losses.  In Europe, markets are mostly green at mid-day.  The FTSE (+0.42%), DAX (+0.24%), and CAC (+0.09%) are representative of the continent, with only a few exchanges slightly on the red side of flat in early-afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat open in front of a lot of data.  The DIA is implying a +0.03% open, the SPY implies a -0.02% open, and the QQQ is implying a -0.03% open at this hour.  10-year bond yields are lower to 1.431% and Oil (WTI) is up more than 2.5% in early trading.

Major economic news scheduled for release Friday includes Nov. Nonfarm Payrolls, Nov. Avg. Hourly Earnings, Nov. Participation Rate, Nov. Unemployment Rate (all at 8:30 am), Nov. Services PMI (9:45 am), and Nov. ISM Non-Mfg. PMI and Oct. Factory Orders (both at 10 am).  The major earnings reports scheduled for the day include BMO, DOLE, and GCO before the open.  There are no earnings reports scheduled for after the close.

The back and forth whipsaw action continued Thursday. However, the market seems to either need some rest or perhaps it is just waiting on the PAyrolls data. In either case, no gap is implied at this point. That said, more volatility is likely as markets adjust to the idea that the Fed will be focusing more on fighting inflation than job creation over the next year. If you’re a swing trader, be very wary of this type of market. Chop is a condition for the very fast (scalpers) and very slow (long-term trading) with the guys in the middle..well…getting shopped up. So, if you don’t trade hedged and you are not extremely quick to be in/out, it’s past time to consider stepping back and waiting for a trending and less volatile environment.

Remember, you don’t have to trade every day or week. Also, keep in mind this is Friday…so don’t forget to prepare for hte weekend news cycle. Stick to your trade rules and on managing the things you can control. (Not trying to force the market to obey your desires.) If you do trade, that should always include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: APA, FANG, ERX, COP, MRO, CVX, HAL, XOP, BP, XOM. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Wednesday was another massive whipsaw way.  All 3 major indices gapped at least a percent higher at the open and then followed through as Fed Chair Powell and Tres. Sec. Yellen testimonies turned up nothing market-moving.  However, in the late morning a case of the omicron variant was identified in California and a selloff started.  As scalpers, profit-takers and stops kicked in, the selloff turned into a rout.  This left us with upper wicks that had challenged (and failed) the downtrend line over big, ugly black candles in all 3 major indices.  It also made for the largest 2-day drop since October 2020.  On the day, SPY lost 1.10%, DIA lost 1.29%, and QQQ lost 1.69%.  The VXX rose 7% to 27.30 and T2122 fell even further to a very oversold 1.63.  The 10-year bond yields fell to 1.424% and Oil (WTI) dropped another 1.5% to $65.18/barrel.

As was mentioned, the first case of the omicron variant was identified in CA.  The person who contracted it was fully vaccinated, but it is worth noting that, so far, the patient is only experiencing mild symptoms.  However, President Biden did tighten travel restrictions and mask mandates again as part of his plan to fight Covid.  

After the close, FIVE and SPLK beat on both lines, while SNPS beat on earnings, but came in in-line on revenue.  However, PVH beat strongly on earnings but came in light on revenue.  In neon-earnings news, DIS replaced their long-standing board chair (Bob Iger) with Susan Arnold.  SQ also changed its name to Block (as a signal they will move to work more on crypto).

This morning DG posted beats on both lines.  The company also announced plans to open 1,000 “Popshelf” stores aimed toward a younger and wealthier demographic than has been the company’s target to date.  The stores are scheduled to all be in place by the end of fiscal 2025.

Overnight, Asian markets were mixed, but leaned to the up side.  Japan (-0.65%) was the clear loser on the day while South Korea (+1.57%), India (+1.37%), and Indonesia (+1.17%) led the wider-spread move up.  In Europe, markets are red across the board at mid-day.  The FTSE (-0.90%), DAX (-1.54%), and CAC (-1.28%) are leading the way lower on renewed Covid (omicron variant) fears in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a mixed open.  The DIA is implying a +0.67% open, the SPY implies a +0.37% open, while the QQQ implies a slightly red -0.04% open.  10-year bond yields are up only slightly and Oil (WTI) is up two-thirds of a percent in early trading.

The major economic news scheduled for release Thursday is limited to Weekly Jobless Claims (8:30 am) and 3 speakers (Fed Member Quarles at 11 am, Fed member Bostic at 11:30 am, and Fed member Daly at 11:30 am).  The major earnings reports scheduled for the day include CM, DG, EXPR, GMS, KR, SIG, and TD before the open.  Then after the close, COO, DOCU, JOAN, MRVL, and ULTA report.

Yesterday’s action was just another case of the whipsaw that continues over the last week. Volatility is likely to continue as markets adjust to the idea that the Fed will focus more on fighting inflation over the next year. As said before in this blog, nimble scalpers are in heaven with this many intraday swings. However, this makes for an extremely hard market for swing traders to be successful. So, if you don’t trade hedged and you are not extremely quick to be in/out, it’s past time to consider stepping back and waiting for a trending and less volatile environment.

Remember, you don’t have to trade every day or week. Focus on the times when the trend and chart setup gives you have an edge. Stick to your trade rules and on managing the things you can control. (Not trying to force the market to obey your desires.) If you do trade, that should always include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: No stock picks this morning, but members can see them in the trading room at 9 am. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Tuesday was a rough day for markets as a modest gap-down turned into a rout as Fed Chair Powell said the FOMC will discuss accelerating the bond-buying taper by a few months at its upcoming meeting.  Markets stabilized and ground sideways from noon on, but closed near the lows.  This left us with a Doji-Gap down black candle in the SPY and ugly black candles in all 3 major indices.  On the day, SPY lost 1.95%, DIA lost 1.79%, and QQQ lost 1.41%.  The VXX rose 15% to 25.47 and T2122 dropped to a very oversold 2.93.  10-year bond yields fell to 1.444% and Oil (WTI) plummeted 4.5% to $66.77/barrel.

In Covid news, before the open, MRNA CEO Bancel told the Financial Times that he expects all existing vaccines to be less effective against the omicron variant.  This was a contributor to the gap-down open.  In a completely separate report, REGN said their antibody treatment may be less effective against the variant as well.  MRNA was down 4.36% and REGN was down 2.73% on the day.  What wasn’t stressed is that this is to be expected of mutated viruses and new vaccines and treatments for the variant are already under development.  

After the close, CRM beat on both lines.  It also announced that it was promoting Bret Taylor (former CEO of a previous CRM acquisition) to Co-CEO alongside one of the founders (Marc Bennioff).  In other after-hours reports, NTAP beat on both lines, while GFS and HPE both beat on earnings and missed on revenue. 

So far this morning, PDCO, DOOO, GIII, and DCI have all beat on both lines.  RY beat on revenue but missed on earnings. Refinance mortgage applications fell 15% for the week as 30-year fixed, conforming interest rates increased to 3.31% on average.  However, new home purchase applications rose 5% for the week.

Overnight, Asian markets were mostly green.  South Korea (+2.14%), Singapore (+1.87%), and Thailand (+1.41%) led the way higher, but the gains were widespread.  In Europe, stocks are green across the board at mid-day.  The FTSE (+1.51%), DAX (+1.66%), and CAC (+1.66%) are leading European markets higher in early afternoon trading.  As of 7:30 am, US Futures point to a significant gap higher as American markets follow the move higher.  The DIA is implying a +0.85% open, the SPY implies a +1.23% open, and QQQ implies a 1.46% open, 10-year bond yields are also up to 1.483% and Oil (WTI) is up 4.43% in early trading.

The major economic news scheduled for release Wednesday includes Nov. ADP nonfarm Payrolls (8:15 am), Nov. Mfg. PMI (9:45 am), Nov. ISM Mfg. PMI (10 am), Crude Oil Inventories (10:30 am), Fed Beige Book (2 pm), and a couple of major speakers (Fed Chair Powell testifies and Treas. Sec. Yellen speaks, both at 10 am).  The major earnings reports scheduled for the day include DCI, DOOO, GIII, PDCO, and RY before the open.  Then after the close, FIVE, PVH, SPLK, and SNPS report.

The whipsaw is continuing this morning as the cycle of overreaction and snap-back to omicron and Fed news keeps volatility high. This is not an easy market for swing trading, but nimble scalpers are loving what they see. So, be a little leery of chasing into what could turn out to be a pop and drop.

That said, for the agile or hedged, at least a short-term rebound seems to be in the cards this morning. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Friday was a brutal half-day for the bulls. A new variant of Covid out of South Africa (Omicron) has been labeled a threat by the WHO and world markets are ran for cover.  In the US, a 2% gap down, led to follow-through the first two hours. However, a rally from 11:30-12:30 am brought markets back to the gap-down level, only to be met with more hard selling until 12:55 pm.  Interestingly, there was a bullish move on MASSIVE volume (probably dark pool volume from the open) the last 5 minutes.  This all left us with a gap-down Spinning Top in the DIA, and gap-down big black candles in the SPY and QQQ.  On the half-day, SPY lost 2.23%, QQQ lost 1.90%, and DIA lost 2.52%.  The VXX spiked to 26.16 and T2122 dropped deep into the oversold territory at 3.88.  10-year bond yields fell off a cliff as traders ran for safety to 1.482% and Oil (WTI) dove an incredible amount of more than 13% to $68.17/barrel.

As mentioned above, the Omicron variant made most of the economic news over the last 4 days.  Cases have been found in Europe, Australia and Dr. Fauci (NIH) says it is likely already in the US as well.  Travel restrictions are already being imposed globally.  So, the market faces uncertainty about what can be done to contain the economic fallout over this new outbreak as we enter Winter and with central banks and fiscal policies already facing heavy inflation.  On the other hand, we don’t know the mortality rate of the new variant and it does appear that the pharma response will be faster this time.  (MRNA says testing is already underway and an Omicron vaccine could be ready in early 2022.)  So, while the market hates uncertainty, don’t be surprised if at least today we see a rebound after what may be perceived as Friday’s overreaction.  

In-store retail traffic was down 28% on Black Friday compared to 2019 according to retail industry analysts.  This was despite closures having Thanksgiving Day sales down 90% from 2019.  However, Black Friday sales were still up 48% from the 2020 levels.  In addition, online retailers report sales slightly lower than last year ($8.9 billion vs. $9.0 billion in 2020) on Friday.  With all of this said, given the tremendously strong Q3 retail results, analysts are predicting that shoppers have just been buying throughout the season rather than so heavily on the Thanksgiving weekend.  One industry analyst (Adobe Analytics) is still predicting Cyber Monday to be the biggest shopping day of the year according to CNBC. 

TSLA changed its tune Friday.  What had been an all-out push for deliveries at any cost for several quarters was reversed when CEO Elon Musk told employees to focus on “minimizing the cost of deliveries” rather than on hitting end-of-quarter delivery goals.  However, the company still expects to meet its broad goal of achieving 50% average growth in deliveries for the year.

Overnight, Asian markets were mostly down.  Japan (-1.63%), Singapore (-1.44%), and Thailand (-1.30%) led the way lower.  Only Indonesia (+0.71%) was appreciably green, although Shenzhen (+0.22%) and India (+0.16%) both stayed above water.  In Europe, however, markets are strongly green across the board at mid-day.  The only exception is Denmark (-0.30%).  The FTSE (+1.04%), DAX (+0.48%), and CAC (+0.98%) are leading the charge, but some of the smaller exchanges are up considerably more (such as Russia at +2.11%).  As of 7:30 am, US Futures are pointing to a rebound.  The DIA is implying a +0.52% open, the SPY implies a +0.71% open, and the QQQ is implying a +0.87% open at this hour.  Oil is already making a strong comeback (up 4.97% at this time) and 10-year bond rates are also spiking in early trading.

The major economic news scheduled for release Monday includes Oct. Pending Home Sales (10 am) and an onslaught of speakers (Fed Chair Powell testifies at 10 am, Treas. Sec. Yellen speaks at 10 am, Fed member Williams speaks at 10:30 am, Fed member Clarida speaks a 1 pm, Fed member Williams speaks at 3 pm, Chair Powell speaks at 3:05 pm, and Fed member Bowman speaks at 5:05 pm.  Major earnings reports scheduled for the day are limited to LI before the open.  There are no major earnings reports scheduled for after the close.

The bulls have had 2.5 days to consider the real potential impact of Omicron and get past initial fears. They seem to be trying to mount a rebound charge in Europe and, so far, are looking to follow Europe back higher this morning. A lot of technical damage needs to be fixed but the bulls look ready to try early.

Be leery of chasing into what could turn out to be a pop and drop. However, for the nimble, at least a short-term rebound seems to be in the cards this morning. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: PLD, ON, DVN, PFE, HPQ, LCID, KR. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Tuesday saw a morning selloff, mid-day doldrums, and an afternoon rally in all 3 major indices.  This left us with a white-bodied Spinning Top in the SPY, a long-legged Doji in the QQQ, and a decent white candle in the DIA.  The SPY and QQQ are testing their T-lines and the DIA is still not far below its own T-line.  On the day, SPY gained 0.13%, DIA gained 0.51%, and QQQ lost 0.46%.  The VXX fell to 20.85 and T2122 fell to 23.98 (still just outside of the oversold territory).  10-year bond yields rose sharply again to 1.676% and Oil (ETI) defied the major economies tapping their strategic oil reserves to rise 2.63% to $78.77/barrel.

During the afternoon a federal jury found CVS, WBA, and WMT liable for recklessly distributing massive amounts of opioids in Southern Ohio.  Two Ohio counties had each claimed $1 billion in damages stemming from the flood of drug overdoses tied to prescriptions filled by the 3 pharmacy chains.  Damages will not be determined until Spring and appeals are sure to follow the verdict.  WMT stock took little notice of the ruling, but CVS and WBA exhibited massive volatility for 10 minutes before returning to where price had been before the ruling.

After the close, DELL, HPQ, and VMW beat on both lines.  In retail GPS missed on both lines and lowered forecasts while citing supply chain issues.  Meanwhile, JWN missed badly on earnings at the same time they beat on revenue.  JWN stock was down 25% in after-hours trading. 

In an interesting statement (which may be seen as a challenge in Beijing), JPM CEO Jamie Dimon told an audience in Boston that JPM is the same age as the Chinese Communist Party, but he’d bet that JPM lasts longer.  Earlier this year, JPM won Chinese regulatory approval to fully own its Chinese subsidiary.  Dimon later went on to say China is one of the biggest opportunities in the world and reiterated JPM’s commitment to doing business in China. 

Overnight, Asian markets were mixed on mostly very modest moves.  Japan (-1.58%) was a huge outlier since the second largest moving exchange was Thailand (+0.21%).  In Europe, markets are also mixed, but lean red at mid-day.  The FTSE (+0.08%), DAX (-0.65%), and CAC (-0.22%) lead the way with a few green holdouts…most notably Belgium (+0.75%) in early afternoon trading.  As of 7:30 am, US Futures are pointing to a down open.  The DIA is implying a -0.34% open, the SPY implies a -0.31% open, and the QQQ is implying a -0.39% open at this hour.  The dramatic rise in 10-year bond rates the first two days of the week seems to be the proximate cause of the fear.

Due to the holiday-shortened week, there is a lot of data today.  The major economic news scheduled for release Wednesday includes Oct. Durable Goods Orders, Q3 GDP, Oct. Trade Balance, Weekly Initial Jobless Claims, and Oct. Retail Inventories (all at 8:30 am), Oct. Core PCE Price Index, Oct. New Home Sales, Oct. PCE Price Index, and TSUN Consumer Expectations (all at 10 am), Crude Oil Inventories (10:30 am), and FOMC Meeting Minutes (2 pm).  Major earnings reports scheduled for the day include DE and HTHT before the open.  There are no major earnings reports scheduled for after the close.

Fast-rising interest rates seem to have spooked traders early today. However, will all that data coming at 8:30 am and 10 am, I am not so sure the opening tune has been called yet. Beware of volatility today, both from the data/news and from volume drying up as big money gets out of town to stretch the holiday weekend. It is worth noting that all 3 of the major indices seem to be giving up their T-lines in premarket trading, but again a lot of data comes within the next hour. The mid-term and long-term trends remain bullish, but in the short-term, the bears have the momentum. Remember. this is virtual Friday for many and at best Thursday is a holiday and we’ll see only half a day of trading Friday.

Watch your current positions before looking to add any new trades. Consider how you want to enter the weekend news cycle (and potential low-volume week ahead) and if there is any profit-taking or hedging to get done. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: Rick is still not feeling up to snuff, 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

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

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

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

Monday was a “Pop and Drop” day.  News that President Biden would renominate Jerome Powell to Chair the Fed led to a gap up and follow-through the first hour of the day.  However, all 3 indices spent the rest of the day selling off and grinding sideways, closing out the day with a heavy selloff the last 30 minutes of the day.  This left us with ugly black candles with large upper wicks.  The SPY and QQQ also printed Bearish Engulfing (of a Doji) type of candle.  On the day, SPY lost 0.28%, QQQ lost 1.16%, and DIA gained 0.08%.  The VXX rose to 21.22 and T2122 climbed just outside of the oversold territory to 25.25.  10-year bond yields spiked to 1.629% (a +0.095% gain on the day, huge in bonds) and Oil (WTI) rose half of a percent to $76.32/barrel.

Part of the reason for the market selloff and bond yield spike came during the mid-morning press conference.  At that presser, both Fed Chair Powell and new Vice-chair Lael Brainard (who had been the other potential nominee for Chair) stressed the need to fight inflation.  This was a bit of a surprise coming from Brainard, who has generally been seen as very doveish among Fed members.  Interestingly, contrary to their own words at the presser, a White House source told Bloomberg that their priority will be full employment (which has been the Fed priority so far).  It is also worth noting that many CNBC reported that many Congressional progressives had expected Brainard to get a top regulatory role, but that will not be the case since she is being nominated as Fed Vice-Chair (assuming approval).

After the close, A, ZM, URBN, CENT, and KEYS all beat on both lines.  A clean sweep to the upside among major reports for the evening.  Today will be another heavy retail earnings day with the preceding retail earnings reports pointing toward a strong quarter across the board for the industry. 

So far this morning, the big news is that the US will tap its strategic oil reserves. China, India, Japan, the UK, and South Korea will all join in this effort to quell energy inflation by tapping their own reserves. The move may be more symbolic than truly supply-shaping. However, President Biden announced the US will release 50 million barrels from the US Reserve. This while US oil consumption is around 18 million barrels per day.

This morning, ADI, ANF, BBY, BURL, DKS, DLTR, DY, ESLT, and SJM have all beat on both lines.  Meanwhile, MDT and J have beat on earnings but came up short on revenue.  So, another great day of earnings is underway, especially in retail. Some retailers, such as DKS, are even raising guidance after crushing Q3 numbers.

Overnight, Asian markets were mixed, but leaned to the downside.  Hong Kong (-1.20%), Taiwan (-0.77%), and Indonesia (-0.68%) paced the losses.  On the other side, Australia (+0.78%) and India (+0.50%) led the gains.  In Europe, markets are strongly (but not completely) red at mid-day.  The FTSE (unchanged), DAX (-0.67%), and CAC (-0.20%) are typical with only Russia (+1.68%) showing green in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a mixed, flat open.  The DIA implies a +0.05% open, the SPY implies a -0.03% open, and the QQQ is implying a -0.20% open at this hour.  10-year bond yields are rising again and Oil (WTI) is off half of a percent in early trading.

The major economic news scheduled for release Tuesday is limited to Manufacturing PMI (9:45 am) and Services PMI (10 am).  Major earnings reports scheduled for the day include ANF, AEO, ADI, BBY, BURL, CBRL, DKS, DLTR, DY, ESLT, SJM, J, MDT, and XPEV before the open.  Then after the close, ADSK, DELL, GPS, GES, HPQ, JWN, PSTG, and VMW report.

It looks like markets are recovering from overnight lows and looking to open just on the red side of flat following the terrible close Monday. It is worth noting that the QQQ and SPY are at their T-lines, while the DIA has long since given up that level as support. The mid-term and long-term trends remain bullish, but in the short-term, the bears have the momentum. Remember that it’s a short week for the market. So, don’t be surprised if volume dries up.

Watch your current positions before looking to add any new trades. Consider how you want to enter the weekend news cycle (and potential low-volume week ahead) and if there is any profit-taking or hedging to get done. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: Rick is still not feeling up to snuff, 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

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

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

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

We saw a divergence on Friday.  The SPY opened flat and then meandered sideways all day, leaving a black-bodied indecisive candle with a larger upper wick.  The DIA gapped down, sold off for half an hour and then meandered sideways the rest of the day, leaving a large black-bodied candle.  However, the QQQ gapped higher at the open and rallied for half an hour before doing the same sideways meander the rest of the day.  This left it as a white-bodied Spinning Top candle.  On the day, QQQ gained 0.56%, SPY lost 0.18%, and DIA lost 0.96%.  The VXX rose to 20.96 and T2122 dropped into the oversold territory at 16.43.  10-year bond yields fell significantly to 1.541% and Oil (WTI) was down over 4% before closing down 3.67% at $76.11/barrel (a 6-week low).

After the close Friday, F and RIVN announced they are canceling plans to co-develop an electric vehicle.  F still retains a 12% ownership stake in RIVN.  The CEO of F (Jim Farley) referenced “growing confidence” that F can “win in the electric space” by itself as part of the reasoning for the announcement.

Protests against Covid rules, lockdowns, and vaccination requirements broke out across Europe over the weekend.  As cases have reached all-time highs (by a considerable margin) in places like Germany and Austria and cases are rising in France, Italy, UK, etc.  Going into Winter, this could be a very bad situation for that region and its economy…and by extension, the US and Asia.  

Overnight, Asian markets were mixed.  South Korea (+1.42%) and Shenzhen (+1.41%) led to the upside, while India (-1.96%) paced the losses.  However, outside of those 3 exchanges, most moves in the region were modest.  In Europe, markets are mostly red at mid-day.  The FTSE (flat), DAX (-0.06%), and CAC (-0.12%) are fairly indicative of the region in early afternoon trading with the exception of Russia (-2.75%) which continues to get hammered on the recent fall in oil prices.  As of 7:45 am, US Futures are pointing toward a green open.  The DIA is implying a +0.25% open, the SPY implies a +0.29% open and the QQQ implies a +0.40% open. 

The major economic news scheduled for release Monday is limited to Oct. Existing Home Sales (10 am).  Major earnings reports scheduled for the day are limited to AVYA before the open.  Then after the close, A, KEYS, URBN, and ZM report.

Sorry for the delay this morning. A lack of sleep the last 3 days has caught up with me. Remember this is a short week for the market. Expect light volume, especially as the week wears on as traders look to extend the holiday or get an early jump on Travel.

So, watch your current positions before looking to add any new trades. Consider how you want to enter the weekend news cycle (and potential low-volume week ahead) and if there is any profit-taking or hedging to get done. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped up a bit on Thursday and then put in a choppy day.  A mid-afternoon rally took s to the highs, but we backed off the last few minutes.  It is worth noting that the DIA diverged from SPY and QQQ as CSCO and KD (formerly IBM) had outsized moves to the downside.  This action gave us a black hammer candle in the DIA, a strong white candle with a lower wick in the QQQ (also closing at a new all-time high close), and a white hammer-type candle in the SPY (also closing at a new all-time high close).  On the day, SPY gained 0.34%, QQQ gained 1.03%, and DIA lost 0.13%.  The VXX gained almost a percent to 20.71 and T2122 fell to 26.09.  10-year bond yields fell just slightly to 1.584% and Oil (WTI) rose slightly to $78.67/barrel.

After the close ROST continued the strong retail earnings and WDAY and INTU kept the trend going as all 3 posted beats on both the revenue and earnings lines.  However, AMAT missed on both lines, which was an interesting result in the red-hot semiconductor business. This morning FL beat on both lines but said it expects supply chain issues to impact Q4 and is suffering in premarket as a result.

Despite the strong earnings in retail, rationalization continues.  CVS, which had a blowout quarter announced Thursday that it will be closing 900 of its 10,000 US stores as it shifts to slightly more of an online-focused business model.  M also blew away estimates for the quarter.  However, they too said they will close 10 stores in January and are still considering the timing of the closure of 60 more stores (which were part of the previously announced 125 store closures planned by 2023).  Again, M said they are focusing on a stronger “digital presence.”  

In government news, the House is scheduled to vote on the President’s Social Spending (and budget) bill today.  Republican wrangling to slow the vote appears to not have worked.  However, even if passed, the bill would then go to the Senate, which does not plan to even start considering the bill until after the Thanksgiving break.  Another potential shoe to fall is the nomination of the next Fed Chair.  President Biden has said it will be announced as soon as today, but in the next few days at least.  While the renomination of Chair Powell continues to be the betting favorite, a second possibility is Fed Governor Lael Brainard.  CNBC analysts predict markets would move quickly (in a bullish way) if Brainard were nominated because she is a noted dove (and thus likely to be slower on the tapering and slower to raise rates).

Overnight, Asian markets were mixed again with a wide spread of results.  Indonesia (+1.26%), Shenzhen (+1.19%), and Shanghai (+1.13%) paced the gainers, but the green was widespread among the major exchanges in the region.  Meanwhile, Hong Kong (-1.07%) was the biggest loser by a third of a percent due to follow-through after BABA’s terrible report on Thursday.  In Europe, markets are red almost across the board as a resurgence of Covid-19 has forced more mitigation measures, including lockdowns for the unvaccinated in Germany and a full lockdown in neighboring Austria.  Even after the ECB’s President Lagarde said that any rate hike in 2022 is not in the cards, did not help.  The FTSE (-0.60%), DAX (-0.18%), and CAC (-0.73%) are typical of the continent, with only two minor and barely green exchanges at mid-day.  As of 7:30 am, US Futures are pointing toward a mixed open.  The DIA is implying a -0.58% open, the SPY implies a -0.26% open, and the QQQ implies a +0.36% open at this hour.

The major economic news scheduled for release Friday is limited to Oct. Building Permits (8:30 am) and a couple of Fed speakers (Waller at 10:45 am and Clarida at 12:15 pm).  However, remember that this is options expiration Friday.  So, be wary of volatility and pinning, especially in the afternoon. Major earnings reports scheduled for the day are limited to FL before the open.  There are no earnings reports scheduled for after the close.

The bullish trend continues, especially in the QQQ and to a lesser extent SPY, both of which sit at all-time highs. However, there is a notable divergence by the mega-cap DIA (which to be fair is only 1.5% from its own all-time high). In particular, CVX is pulling the DIA down hard in premarkets as Oil (WTI) is continuing its very recent cliff-fall (down another 3.5% in early trading).

Remember that it’s Friday and next week is a short week for the market. So, watch your current positions before looking to add any new trades. Consider how you want to enter the weekend news cycle (and potential low-volume week ahead) and if there is any profit-taking or hedging to get done. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Stocks opened flat Wednesday and then meandered sideways with a slight bearish lean the rest of the day.  This left us with a Bearish Harami Spinning Top in the SPY, a black follow-through (from the prior day’s Gravestone Doji) candle in the DIA, and a Doji in the QQQ.  On the day, SPY lost 0.25%, DIA lost 0.57%, and QQQ gained 0.05%.  The VXX gained 1.63% to 20.52 and T2122 fell to 31.91.  10-year bond yields fell to 1.587% and Oil (WTI) dropped 3.37% to $78.04/barrel.

As noted, Oil dropped hard on Wednesday.  The primary reasons for this were concerns about oversupply expressed in reports from the Intl. Energy Agency and OPEC.  Both organizations cited concerns over the reemergence of Covid in Europe. Not cited, but certainly looming, was the major pressure President Biden has been placed under to release oil from the US strategic reserve.  At any rate, contrary to the concerns about oversupply, US Oil inventories fell 2.1 million barrels last week versus an analyst consensus expectation of an increase of 1.4 million barrels.

After hours, NVDA crushed earnings, easily beating the consensus forecast on both lines.  The company reported an unexpected 55% growth in data center sales as the advent of Artificial Intelligence (which uses specialty cards NVDA makes) grows across the business world.  In earnings news from this morning, retail continues to post strong earnings as M, KSS, JD, and BJ all handily beat on both lines of their reports.  However, BABA missed on both lines, a victim of the Chinese government crackdown on their domestic online industry.  

Bloomberg reports that JPM economists are now predicting the Fed will make its first interest rate hike in September 2022.  Their report says the economy has changed in fundamental ways since the last time the Fed said outright it did not expect a rate hike until at least 2023.  The author (Michael Feroli) says that the FOMC’s goal of full employment will be reached by the middle of 2022 and the bond-buying taper should be complete by June.  At that point, according to Feroli, the Fed will have no choice but to raise rates in order to fight inflation.  Among the other big bank economists, GS recently said they expect the first rate hike in July, but MS economists still expect rates to remain unchanged throughout all of 2022.

Overnight, Asian markets were mostly red.  Hong Kong (-1.29%), Shenzhen (-0.90%), and India (-0.75%) paced the losses.  Taiwan (+0.44%) and Thailand (+0.39%) were the only appreciable winners in the region Thursday.  In Europe, markets are also mostly in the red at mid-day.  The FTSE (-0.18%), DAX (+0.06%), and CAC (+0.08%) are the big dogs in the region, but many of the smaller exchanges are further south (such as Portugal -0.86%, Norway -0.76%, and Finland -0.69%) in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a green open.  The DIA is implying a +0.10% open, the SPY implies a +0.25% open, and the QQQ is implying a +0.51% open at this hour.

The major economic news scheduled for release Thursday is limited to Weekly Initial Jobless Claims and Philly Fed Mfg. Index (both at 8:30 am) as well as 3 Fed speakers (Bostic at 7:30 am, Williams at 9:30 am, and Daly at 3:30 pm).  Major earnings reports scheduled for the day include BABA, BERY, BJ, CSIQ, PLCE, AVAL, JD, KSS, M, MMS, WOOF, and VIPS before the open.  Then after the close, AMAT, BECN, CAL, FTCH, INTU, PANW, POST, ROST, UGI, WSM, WWD, and WDAY report.

With strong retail industry earnings continuing (signaling there is no let-up in spending by the consumer), the bulls have plenty of energy to help them run again this morning. Premarket prices are looking to challenge the all-time highs in the SPY and QQQ at the open, with the DIA lagging. Both the short and long-term trends are bullish in the SPY and QQQ and the short-term pullback continues in the DIA. However, that DIA longer-term trend remains bullish and even those mega-caps sit near all-time highs.

Watch your current positions before looking to add any new trades. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets opened flat Tuesday and rallied slowly until 2 pm on strong economic news.  At that point, they slowly sold off into the close.  This left us with Bullish Engulfing candles in the SPY and QQQ, both with upper wicks, and a Gravestone Doji-type candle in the DIA.  On the day, SPY gained 0.39%, DIA gained 0.19%, and QQQ gained 0.73%.  The VXX gained slightly to 20.19 and T2122 remains in the mid-range at 59.66.  10-year bond yields rose again to 1.644% and Oil (WTI) was flat at $80.78/barrel.

As mentioned, before the open, October Retail Sales and Exports came in much stronger than expected.  Industrial Production also came in strong with only a slightly higher than expected increase in September Business Inventories.  Socks rallied on this news. In related news, the retail sector got off to a good start on Q3 earnings as HD and WMT (both before the open) and then LZB (after close) all easily beat on both the revenue and earnings lines.  The good news in retail reports has continued this morning with easy beats on both lines from BIDU, LOW, TGT, and TJX so far.  (TGT beat revenue estimates by $2 billion for Q3.) LOW has also increased estimates for Q4 after posting 2.2% same-store sales growth (analysts had expected a 1.4% decline). The story seems to be that the consumer is in a “buy, buy, buy” mode.

During the day Tuesday, the electric vehicle industry made news as recent listing LCID passed F and GM in market capitalization.  This resulted from a gain of almost 24% on the day.  (LCID went public through a reverse merger and the stock has been parabolic since mid-October.)  While not as ridiculously high as TSLA (over $1.2 trillion), the $89 billion market value tops rival NIO ($71 billion).  LCID announced Monday evening a sizable increase in purchase reservations (17,000 now vs. 13,000 in Q3).  They also announced it has a 20,000-vehicle production target for 2022, which would amount to approximately $2.2 billion in revenue.

Tuesday evening Treasury Sec. Yellen sent a letter to Speaker of the House Pelosi saying that she now estimates the US will hit its debt limit on Dec. 15.  This is nearly two weeks later than the forecast made in October (Dec. 3), when the decision to suspend the debt ceiling was pushed back to December.  The reason cited for the change of date is that the $1 trillion Infrastructure Law has funded some programs at a lower level than originally expected and slightly reduced spending.  The increase in the debt limit has been tied to President Biden’s (and Democrats) Social Spending bill.  The House is expected to vote on the Social Spending Bill this week and the Senate will take up the bill after returning from the Thanksgiving recess (about Nov. 29).

Overnight, Asian markets were mixed.  South Korea (-1.16%) was an outlier as Australia (-0.68%), India (-0.56%), and Japan (-0.40%) were really the leaders to the downside.  Meanwhile, Shenzhen (+0.67%), Shanghai (+0.44%), and Taiwan (+0.40%) led to the upside.  In Europe, markets are also mixed, but on smaller moves as of mid-day.  The FTSE (-0.33%), DAX (+0.12%), and CAC (+0.07%) are typical of the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a mixed and flat open.  The DIA is implying a -0.06% open, the SPY is implying an unchanged open, and the QQQ implies a +0.14% open at this hour.  10-year bond rates are unchanged and Oil (WTI) is down seven-tenths of a percent in early trading.

The major economic news scheduled for release Wednesday includes Oct. Building Permits and Oct. Housing Starts (both at 8:30 am), Crude Oil Inventories (10:30 am), and a slew of Fed speakers (Williams at 9:10 am, Bowman at 11 am, Waller at 12:40 pm, Daly at 12:40 pm, and Bostic at 4:10 pm).  Major earnings reports scheduled for the day include BIDU, BILI, BV, IQ, LOW, MTOR, TGT, TJX, and ZIM before the open.  Then after the close, BBWI, CSCO, CPRT, HI, YY, NVDA, TTEK, VSCO, and ZTO report.

Mortgage rates have continued to spike in the last week and as a result, refinance demand was down again, this time down 5% on the week. The less rate-sensitive new home purchase mortgage applications rose 2% week-on-week. Still, the great earnings out of the Retail Industry is likely to be the driver for markets early. Remember that the short-term trend is now bullish in the SPY and QQQ and the pullback trend is being challenged in the DIA. However, that longer-term strong bullish trend remains in place and we sit near all-time highs.

Watch your current positions before looking to add any new trades. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and continue to think twice before holding through earnings…especially without a hedge.

Ed

Swing Trade Ideas for your consideration and watchlist: RMO, PLUG, NCTY, AEM, BA, CHPT. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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