Jobless Claims Lead the News

The bulls refused to give back any more ground as they can smell those all-time highs just a quarter percent above in the SPY.  So, stocks gapped up 0.80% and rallied in a volatile way all day long, closing in the top 20% of their range.  On the day, SPY closed up 1.36%, DIA up 1.00%, and QQQ up a hefty 2.52%. As those numbers show, money flooded back into those high-tech, mega-cap FAANG stocks, especially TSLA on the follow-through to its stock split.  VXX was down sharply to 25.50 and T2122 also dropped a touch to 91.94 (still well into the overbought territory).  10-year bond yields rose again to 0.67% as money chased risk and Oil (WTI) rose $42.59/barrel.

On the virus front, in the US, the numbers show we now have 5,360,488 confirmed cases and 169,135 deaths.  The news cases Tuesday were 54,345, which is just under the 7-day average.  However, again the 1,386 deaths were well above the average.  The only real news on this front is concern over the data quality.  The number of tests done in the most infected states (FL, TX, CA) have fallen in the last two weeks, as the national average number of daily tests has fallen 19% in that time. This reduction takes place even while the percent positive results has increased over that time.  In addition, another group of three dozen public health advisors sent a letter to HHS extremely concerned about the Federally mandated change in data collection procedures and mechanisms causing inaccuracies. 

Globally, the number of cases rose to 20,836,339 confirmed cases and 747,865 deaths.  In Asia, China announced today that chicken (or perhaps its packaging) imported from Brazil tested positive for the virus.  India reported 67,000 new cases, which was a record high for that country.  Meanwhile, in Europe, France saw its largest increase in daily cases since May 6.

Overnight, Asian markets were mixed again, but this time lean to the green side of flat.  The winners were led by Japan (+1.78%) and Singapore (+1.28%).  The only loser of note was Australia (-0.67%).  Elsewhere the Asian market could best be described as just on the green side of flat.  In Europe, markets are broadly in the red so far today.  The FTSE leads the losses (-1.14%), but everywhere except Russia (+0.46%) sees some red at this point in the day.  In the US, as of 7:30 am futures are pointing to a flat open.  The Nasdaq futures are just on the green side, while the SPY and DIA futures are just on the red side of break-even.

The major economic news for Thursday is limited to July Import / Exports and Weekly Initial Jobless Claims (both at 8:30 am).  Major earnings are limited to ENS, NTES, and WCC before the open.  Then after the close AMAT, BIDU, and IQ report. 

The SPY sits just below its all-time high.  It seems likely the bulls won’t give into a pullback before it tastes those sweet new highs.  So, be careful betting on shorts until that has been accomplished.  However, despite Tuesday’s black candle, markets remain quite extended.  So, longs carry a fair bit of risk here too.

All we can do is either lighten up positions, tighten up stops or pay extra attention to any trend reversal.  Stick with your trading rules and execute them with discipline.  Don’t predict reversals or chase missed-moves, and don’t be greedy.  Take your profits along the way.  Remember, our job is to achieve trade goals consistently, not to hit the lottery. 

Ed

The Daily Swing Trade Ideas for today: PHM, KHC, MAS, CL, FAST, DHI, EBAY, FTV, SWKS, KLAC. 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

Late-Day Selloff and TSLA Split

Markets gapped up four-tenths of a percent on hopes from Russia’s approval and claim it has a safe and effective vaccine.  Stocks then rode the roller-coaster until mid-afternoon.  However, at 2 pm a steep selloff started and ran all the way into the close.  It is possible a story that no stimulus package was imminent or perhaps an early leak prior to the announcement that Former-VP Biden selected Senator Kamal Harris as his running mate was the cause.  (Personally, I think it was the Big-10 canceling fall football that sank spirits.)

Regardless of the cause of the late selloff, of the 3 major indices, only the QQQ broke its uptrend.  However, SPY closed down 0.83%, DIA down 0.34%, and QQQ down 1.89% as a rotation from the tech high-fliers into recovery economy tickers continued even during the selloff.  VXX was up to 36.95 and T2122 fell a touch to 93.19 (still deep in the overbought territory).  Oil (WTI) was down slightly to $41.68/barrel and 10-year bond yields rose strongly to 0.64%.

After the close, TSLA announced a 5-for-1 stock split for stockholders as of August 21. During the day BA reported 43 more plane orders were cancelled in July (bringing the total to 836 cancelled so far this year). However, that significant decrease needs to be weighed against the fact the company still has almost a 4,500-plane production backlog to work through.

On the virus front, in the US, the numbers show we now have 5,306,851 confirmed cases and 167,761 deaths.  New cases for Tuesday were at 54,519, which is slightly under the 7-day average.  However, the 1,504 deaths for the day were well above the average.  After the close, the President announced the US had reached a deal with MRNA to buy 100 million doses of their experimental vaccine for $1.53 billion.  The state of FL reported a record jump in virus deaths on the day (increasing almost 3x from Monday).  Interestingly, that state’s average daily new cases were down 38%, but tests done per day dropped an even larger 46% in the last two weeks (likely partially due to hurricane Isaias).

Globally, the number of cases rose above 20 million as it reached 20,553,328 confirmed cases and 746,652 deaths.  The UK reported that its economy contracted 20.4% in Q2.  This is right in line with analyst expectations following a small contraction in Q1.  However, it does put them technically into a recession.  Germany saw a new spike as they reported over 1,000 new cases Tuesday.  While that is less than 2% of the US cases, bear in mind that they also only have 25% of the US population.

Overnight, once again Asian markets were mixed.  Hong Kong and Thailand were the only decent size gainers.  Meanwhile, China and New Zealand led the losers.  The rest of the countries delivered smaller moves spread around break-even. In Europe, bourses are technically mixed but lean heavily toward the green.  The DAX is just on the red side of flat while Sweden and Denmark are showing half-percent loses. Elsewhere we see a healthy green numbers, led by the FTSE being up 1.1%.  In the US, as of 7:30 am futures are pointing to a gap higher.  Today the gaps will be less varied with the SPY looking at +0.74%, the QQQ at +0.89%, and the DIA at +0.93%.

The major economic news for Wednesday includes July CPI (8:30 am), Crude Oil Inventories (10:30 am), July Federal Budget Balance (2 pm), and 3 Fed speakers (Rosengren at 10 am, Kaplan at 11 am, and Daly at 3 pm).  Major earnings are limited to AIT, APG, and PFGC before the open.  Then after the close CACI, CSCO, and SPTN report. 

The large-caps put in their first black candle since July 28 yesterday, following the QQQ which put in its 3rd in a row.  Still, as mentioned above, the trend remains bullish in the large-caps and the QQQ barely broke its own.  The point is that it is hard to call Tuesday’s late selloff a trend break.  So, all we can do is keep an eye on it and not go too long or short until we get more information.  Stick to those trading rules and execute with discipline.  Don’t predict reversals or chase missed-moves, and don’t be greedy.  Take your profits along the way.  Remember, our job is to achieve trade goals consistently, not to hit the lottery. 

Ed

The Daily Swing Trade Ideas for today: CME, QCOM, SQ, SCHW, MA, STNE, PLNT, V, FTV, W. 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

Russian Vaccine News Lifts Spirits

Markets opened flat, rode the roller-coaster all morning, and then were calm all afternoon.  There was what appears to be a rotation underway, out of the mega-cap FAANG stocks that have led the rally since March and into the "big recovered economy" stocks such as Industrials and Energy.  On the day SPY was up 0.30%, QQQ was down 0.43%, and DIA was up 1.28% (on that rotation).  VXX fell once again to 25.75 and T2122 rose slightly to 97.34, deeper into the overbought territory.  10-year Bond yields rose to 0.58% and Oil (WTI) rose to $41.99/barrel. 

The President’s executive orders from Saturday seemed to be a non-story on Monday.  Uncertainty, likely legal challenges, and the limited nature of the orders made the focus stay on a bi-partisan deal.  Treasury Sec. Mnuchin said the White House was willing to put more money on the table, but reportedly made no new offers.  Democrats have not made another offer either after their “meet in the middle” $2 trillion deal rejected Friday.  Both sides said over the weekend (and again Monday) that they are ready to negotiate, but the sides have also not talked since Friday according to Mnuchin.

In related news, President Trump floated that he is again seriously considering doing a Capital Gains tax cut.  As with the Payroll Tax and to be charitable, it is unclear if he has the legal authority to cut taxes by himself. While he claimed this move would create a lot of jobs via reinvestment, he reportedly also decided against the action a year ago because it would not help the working class enough.  (For example, the top 1% of taxpayers had over 75% of the long-term capital gains last year per the IRS report.)  However, it is another stimulus idea under consideration.

On the virus front, in the US, the numbers show we now have 5,251,997 confirmed cases and 166,201 deaths.  In good news, for the first time in well over a month, there are less than 50,000 virus hospitalizations in the country.  This comes as the 7-day average of both new confirmed cases and deaths have leveled off after the very recent pullback. So, the front line of the fight is getting at least a little respite.

Globally, the number of cases rose above 20 million as it reached 20,281,373 confirmed cases and 739,770 deaths. In the early hours today, President Putin claimed their country had given regulatory approval for a Russian vaccine that had proven safe and effective.  In a jab at the west, they named this vaccine “Sputnik V” and Putin said they had ordered a billion doses for global distribution.  Markets popped on the news, despite widespread skepticism about the truth and science behind the claim.  Whether true or not, the news did give hope for the vaccine development underway in the UK and US.

Overnight, Asian markets were mixed again.  China and Taiwan led the losers this time, while Japan, Hong Kong, and South Korea led gainers.  However, in Europe markets are strongly green across the board on Russia-prompted vaccine hopes.  The FTSE is up 2.5%, the DAX up 2.6%, and the CAC up 2.7% so far today.  In the US, as of 7:30 am futures are pointing to a varying gap higher.  The DIA implied open is up 1%, the SPY up 0.62%, and the QQQ up 0.39% seemingly reinforcing the rotation from high-flying tech into mainstream recovery economy names. 

The only major economic news for Tuesday is July PPI (8:30 am) and a Fed speaker (Daly at noon).  Major earnings are also very limited to BR, SYY, and YPF before the open.  There are no major earnings reports after the close.

Markets continue their bullish march. With no major economic news and high spirits from the Russian vaccine approval, we may well see more upside run. However, beware that we are over-extended and that it appears a controlled (not desperate selling or buying, just methodical movement from one group to another) rotation is ongoing. So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon.  Keep your discipline and mind those trading rules. You put them in place for a reason (to help control emotion and avoid mistakes).  As always, follow the trend, don’t predict reversals or chase missed-moves, and take your profits along the way.  Remember, we just need to make our goals consistently. We don't have to swing for massive gains on any one trade. 

Ed

The Daily Swing Trade Ideas for today: PLAY, HWM, DFS, NBL, FTI, F, XLE, TSN, WMT. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Stimulus and Exec Orders Lead News

Markets gapped down Friday on Trade War fears (China and Canada) and perhaps second thoughts on good July Payrolls number (better than expected but less than half of the June increase).  After a roller-coaster day markets ended on an upswing.  The SPY closed up 0.07%, the DIA up 0.26%, and QQQ faired worst at down 1.15%.   VXX fell again to 26.53 and the T2122 (4-week New High/Low Ratio) closed up deep into the overbought territory at 96.20.  10-year bond yields rose slightly to 0.566% and oil (WTI) was down to $41.60/barrel.

Stimulus talks broke down Friday. The White House rejected an offer from Democrats, saying it wasn’t actually a $1.5 trillion reduction (to $2 trillion) and the administration could not see spending more than about $1 trillion.  Then on Saturday the President issued executive orders and memorandum that will at least possibly restart an Enhanced Unemployment program ($300 of federal funds, if states first put up $100 per week).  He also deferred Payroll Tax collection through December, deferred federal Student loan payments (again through December), and told the HHS to continue to review evictions for “reasonableness”).  The impact and timing of these actions is unclear and legal challenges are possible (likely?) for some of the fiats.  Sunday, the President said he is already considering revising the Enhanced Unemployment order to just be $300/week (avoiding a state mandate).

Over the weekend, CNBC also reported that BRK repurchased over $5.1 billion of its own stock in May and June. This was a record amount for the company and over twice that they had bought back in the same period the year prior.  However, this should be seen in the context of BRK having a record of $146 billion in cash on hand.  The reason this is of note is that Warren Buffett has famously said buybacks are a sign the company cannot find anything better to do with their money. So, this may be a tangible indication BRK feels stocks the stock market is way over-priced…or perhaps that their own stock is extremely underpriced.

On the virus front, in the US, the numbers show we now have 5,199,524 confirmed cases and 165,617 deaths.  The good news that even ignoring habitually under-reported weekend numbers, the averages of new cases are flattening again. The same appears to be true (in a lagging sense) of deaths, although the 7-day average is still over 1,000 per day.  Over the weekend, 26 states saw rising infection rates, but in good news, 18 states also saw decreasing hospitalization rates.  The bad news is that a survey found that one-third of Americans say they won’t take a vaccine if/when available and another 24% are unsure whether they will.  This means the effectiveness in a herd immunity sense would be dramatically lessened if over half the population were to refuse a vaccine.

Globally, the number of cases rose above 20 million as it reached 20,046,642 confirmed cases and 734,525 deaths.  A survey of German businesses found that they expect virus restrictions to last until at least April.  This comes as new cases have picked up in Germany, France, Spain, etc.  In Asia, Japan continues to see an uptick, and Australia’s second-largest state reported a record number of cases and deaths on Monday.

Overnight, Asian markets were mixed, but lean to the green side.  China, South Korea and Australia were the winners, with Japan, Hong Kong, and Singapore leading the losers.  In Europe markets are leaning more to the green side.  However, the moves are less than half a percent so far in their day.  In the US, at 7:30 am futures are flat with the 3 major indices straddling and close to the break-even line from Friday. 

The only major economic news for Monday is June JOLTS (10 am).  Major earnings include DUK, GOLD, MAR, MELI, ON, and PARR before the open.  Then after the close, BKD, CNXN, IFF, NGL, NTR, OXY, SPG, and TME report.

Markets continue to be relentlessly bullish, but at least the techs are looking a little tired and everything is extended.  The truth is all 3 indices could use a little rest.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon.  Stick to those trading rules and execute them with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, our job is to achieve trade goals consistently, not hit massive winners. 

Ed

The Daily Swing Trade Ideas for today: UNM, DFS, MS, XLU, JCI, SLB, NKE, FEYE, PM, HAL. 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

Trade, Payrolls and Stimulus Lead News

Markets opened flat and ground sideways until noon.  However, FB and AAPL led markets higher as the bulls stepped in again to put together a rally all afternoon.  On the day, QQQ was up 1.32% (another all-time high close), SPY up 0.67%, and DIA up 0.70%.  VXX fell again as there was no fear to be seen in markets, closing at 26.74 and T2122 fell back to 87.72, which is still in overbought territory.  10-year bond yields fell to 0.538% and Oil (WTI) was off slightly to $41.98/barrel.  Gold once again closed at an all-time high of $2,074.80/oz.

President Trump has imposed a 10% tariff on aluminum imports from Canada again (a year after they were dropped and one month after the USMCA pact went into effect).  Canada responded by threatening retaliatory tariffs on US goods according to Reuters.  To go along with his theme of nationalism and “protecting us from foreigners,” the President also banned US firms from doing business with the Chinese companies behind the TikTok and WeChat apps.  Byte Dance (owner of TikTok) has threatened legal action over the ban and had already been in talks to sell to MSFT for over a week.  There was no mention of what made this ban urgent now, when less than a week ago the President said if TikTok was sold to MSFT by Sept. 15 it could avoid the ban.

The other economic news out of Washington was the stimulus deal.  Both Republican and Democrat negotiators claimed more progress was made in talks, but that the sides remain far apart.  President Trump sought to pressure the negotiations by again making the threat to take Executive Orders to do the portions he likes.  (This renewed threat may have led to or helped the afternoon rally. I’m just not sure of the timing on his comments vs. the rally.)  It remains unclear exactly what measures he has the legal right to do.  However, he’s shown a tendency in the past to issue orders and make opponents challenge them in court where legal procedures can be used to render challenges irrelevant due to timing. Among the possibilities are a so-called Payroll Tax Holiday (although it is unclear if this would only be a postponement since he cannot rewrite the tax code by fiat). The other thing mentioned is an extension of the moratorium on evictions.

In the Real Estate Sector, mortgage rates fell again to another record low, the eighth record low this year. Oddly, at the same time a survey by the National Assn. of Homebuilders found that housing is still less affordable than it has been for over 18 months. (That claim is based on the percent of homes sold to people who qualify for loans who have an income at or below the US median.  In other words, tighter lending standards mean fewer “average Americans” qualify to buy a home.)  In a related story, CNBC also reported that 32% of Americans had missed mortgage payments as of July 31.

On the virus front, in the US, we went over 5 million cases as the numbers show we now have 5,032,805 confirmed cases and 162,812 deaths.  On the day, we saw over 58,600 new cases and over 1,200 deaths (still above the 7-day average).  TX saw its positive test rate climb to a tad more than 17% Thursday, just shy of the mid-July peak. Several other states instituted new or extended their mask mandates.

Globally, the number of cases has reached 19,293,179 confirmed cases and 718,326 deaths.  In Asia, India reported a record number of new cases as the (15% more than its previous high).  In Europe, for the second day in a row, Germany saw the largest number of new cases since early May.  Spain and France have also reached their highest 7-day average of new cases since April.

Overnight, Asian markets were in the red across the board, with the lone exception of South Korea which managed a gain of 0.39%.  The key driver was the trade war news as the US took the actions described above.  However, in Europe markets are more mixed and very near flat across the board.  The FTSE is “up” 0.02%, the DAX up 0.23%, and the CAC down 0.26%. In the US, at 7:30 am futures are flat, all 3 major indices are pointing to a down open as the futures sit at -0.38% in all 3 major indices.

The major economic news for Friday is limited to July Avg. Hourly Earnings, July Nonfarm Payrolls, and July Unemployment Rate (all at 8:30 am).  However, obviously July Non-farm Payrolls is a big one and is under close scrutiny by markets. Major earnings include DISH, IEP, MGA, UFS, and VTR all before the open.  There are no major earnings after the close.

Markets remain unrelentingly bullish and have made quite a nice run this week.  However, by most counts, markets are again extended.  Still, this most recent surge has come in a more orderly action (fewer huge gaps and whipsaw candles).  And that sort of price action tends to allow moves to last longer.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon.   

Stick to those trading rules and execute with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, a trader’s job is to consistently achieve goals and build their account.  Also bear in mind this is Friday…so lock in some profits ahead of the weekend news cycles.

Ed

The Daily Swing Trade Ideas for today: PM, PENN, AES, ABT, KO, FAST, NKE, MCD. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Jobless Claims And Progress On Deal

Markets gapped modestly higher Wednesday on a DIS beat of massively reduced expectations and were held back by a huge miss in new ADP July payrolls and the lack of progress on a stimulus package deal.  The SPY and QQQ chopped sideways the whole day, but DIA had a rally on the back of DIS and BA (after GOP Senators proposed $25 billion in airline industry aid.  On the day DIA was up 1.34%, SPY up 0.60%, and QQQ up 0.25%.  The VXX fell 2% to 27.04 and T2122 rose higher into the overbought territory at 94.81.  10-year bond yields rose to 0.551% and oil climbed to $42.16/barrel.  Gold also continued its rally closing at another record of $2,051.40/oz as the dollar continued to devalue. 

Bloomberg reported Wednesday afternoon that the country's 4 largest banks (JPM, WFC, BAC, C) had $152 billion in loans that are in “deferred payments” status as of the end of June.  Since there is no standardized reporting of this information to the SEC, it is likely the total in "deferred" status is much higher.  For example, WFC only reports on residential loan deferrals (not commercial).  At the same time, C outlined only that most of its deferred payments are coming from credit cards.

The stimulus plan negotiations made some progress Wednesday with the White House agreeing to higher unemployment benefits through December (70% of compensation plus $400/week) and Democrats agreeing to reduce their Postal Service funding from $25 billion to $10 billion.  Meanwhile, away from the negotiations, Republican Senators who are up for reelection offered their own bill that is even more generous than what the White House agreed. The 3 Senators offered 80% of compensation plus $400-$500/week (at State discretion) for August and then 80% plus $400/week through the end of the year. Even though not part of the negotiations, since it was introduced as a bill, one has to assume their levels become the minimum of an end-deal.

In the US, the virus numbers show we have 4,973,741 confirmed cases and 161,608 deaths.  On the day, we saw over 55,000 new cases (still suspiciously well below a week ago and far below the 7-day average) and over 1,300 deaths (above the 7-day average).  KS reported late Wednesday that its counties that do not have mask mandates have seen higher spread rates than those that have mandates.  Meanwhile, another group (The Infectious Disease Society of America) urged a Federal mask mandate in an open letter to VP Pence.  In virus-related business news, JNJ reached a $1 billion deal with the government to produce 100 million doses of vaccine, once a vaccine has been approved. 

Globally, the number of cases has reached 19,005,651 confirmed cases and 711,863 deaths.  In Europe, both France and Germany reported their highest daily increase in cases since May while the spread in Spain is back to levels it saw in April. Poland also increased restrictions a notch again.  In Asia, Australia’s 2nd largest city (Melbourne) has been placed on total lockdown for 6 weeks.  In China, despite a tiny new case count, the country has ramped up testing to 4.85 million tests per day.

Overnight, Asian markets were mixed but leaned toward the green side again.  The only significant movers were South Korea (+1.33%) and Singapore (+1.04%).  At the same time, China, Japan, and Hong Kong were modestly lower.  However, in Europe, we see red across the board at this point.  The FTSE is down 2%, CAC down 1.2%, and DAX down 0.85%.  The only news I know of that may be the driver in Europe is the Bank of England holding rates steady and warning of slower recovery.  However, it may be the trade war between the US and China or even the lack of a US stimulus deal that weighs on sentiment.  In the US, at 7:30 am futures are flat, all 3 major indices sitting just on the red side of break-even from yesterday’s close.

The major economic news is limited to Initial Jobless Claims (8:30 am) and a Fed speaker (Kaplan at 10 am).  Major earnings releases include ADNT, AEP, AES, BCE, BDX, BHC, BLL, BMY, CAH, CNP, CNQ, COMM, CORE, GLP, HFC, HII, HLT, HWM, JLL, KBR, LNG, MYL, NSIT, OLN, PH, PWR, TEN, THS, TRGP, VIAC, WLK, and ZTS all before the open.  Then after the close, AEE, AVT, BECN, BHF, CWK, DXC, ED, EOG, FLO, HLF, MWK, PBA, PRSP, POST, RSG, TDS, TMUS, UBER, UNVR, and WCN report.  

Markets remain seemingly unrelentingly bullish.  The SPY is now back to within 2% of its all-time high and QQQ seems to print new all-time highs daily.  However, by most counts, markets could use a rest again.  Still, this most recent surge has come in a more orderly action (fewer huge gaps and whipsaw candles).  And that sort of price action tends to allow moves to last longer.  So, don’t fight the trend, but remain aware that another pause or swing to the downside may come soon. 

As always, stick to your trading rules and execute with discipline.  Follow the trend, don’t predict reversals or chase missed-moves, and don’t be greedy.  Take profits along the way.  Remember, a trader’s job is to consistently achieve goals and build their account.  It’s a job, so treat it that way and work rather than hoping to catch those 2,500% “lightening in a bottle” trades.  There are a lot of reads that made a killing taking profit on the KODK explosion and a lot more that chased or wanted even more and have now blown out their account.  Learn that lesson.  

Ed

The Daily Swing Trade Ideas for today: BB, MRO, F, NLY, NIO, CAR, PAAS, ABT, URI, IAG. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Stimulus Negotiations Keep Plodding On

Markets gapped down slightly Tuesday and then chopped sideways until the last hour of the day.  Then the bulls stepped in for a late-day rally that ran prices up into the close.  On the day SPY closed up 0.39%, QQQ up 0.37%, and DIA up 0.63%.  This made for another all-time high close in the QQQ.  VXX was down again, closing at 27.62 and T2122 rose into the overbought territory at 90.78.  10-year bond yields fell as money chased safety closing at 0.51% and Oil (WTI) finished up to $41.59/barrel.  Gold was also up again, closing at $2,034.60/oz. 

The stimulus deal remains far from done.  Interestingly, the splits in the GOP side have resulted in Senate Majority Leader McConnell being sidelined.  When asked Tuesday evening, he was unaware of the status of negotiations.  However, he did say that if / when the White House and Democrats do reach an agreement, he is prepared to support the deal.  Meanwhile, Speaker of the House Pelosi told Fox News she doesn’t think a deal will be reached this week, while the White House told them a deal will be made this week. Negotiators will resume talks Wednesday.

Late in the day Tuesday, Bloomberg reported that Fed sources tell them the FOMC is expected to soon announce another major push to add inflation to the economy.  This is nothing new as markets seem to have been banking on such a move with rising commodity prices and a falling dollar.  However, it has never been announced that this is actually an official policy.  The new policy and programs aimed at implementing it should be announced sometime in the next few weeks.  Still, there are reportedly internal detractors to the policy who fear the idea of purposefully raising inflation in a high unemployment environment as well as fearing the “unintended consequences” of simply pushing rates to an arbitrary number hoping for only good effects. 

In the US, the virus numbers show we have 4,918,770 confirmed cases and 160,323 deaths.  US daily numbers remain questionable as among others, CA reported dramatic undercounts the last few days due to the changes in destination and format of reporting, as well as now having two formats under new HHS policies.  On the day the report was 54,504 (low relative to a week ago) new cases and 1,362 deaths (which is more in line with historical data).  Tuesday also saw another of the expected cases of students testing positive after returning to schools.  This time a second-grader in GA.

On Tuesday, 34 State Attorneys General wrote a letter to HHC Sec. Azar warning him that GILD is not supplying enough of the drug remdesivir and that GILD’s recently announced drug pricing is impeding treatment of the virus.  They urged the use of the Bayh-Dole Act to allow another company to make the patented drug (which was developed partially using public funds).  In addition, 6 States (LA, MD, MS, MI, OH, VA) have acted to fill the void left by Federal inaction by forming their own pact to purchase 3 million quick-result tests themselves from BDX and QDEL rather than wait any more on Federal action. 

Globally, the number of cases has reached 18,731,900 confirmed cases and 705,023 deaths.  In China, the recent surge of cases seems to have been back under control with 22 reported new cases today.  However, Japan reported over 1,200 new cases for the 8th straight day over 1,000, which for them is wildfire spread. In Australia, the 3rd day of lockdown has not yet seen a break in new case numbers. Deaths also remain at record numbers in Victoria province.

Overnight, Asian markets were mixed, but leaned toward the green side and were mostly calm.  Only South Korea (+1.4%) and Indonesia (+1.03%) saw one percent moves.  In Europe, we see green across the board at this point in the day on the back of good European Earnings reports.  The FTSE is up 1% and the DAX and CAC are both up eight-tenths of a percent so far.  In the US, at 7:30 am futures are pointing to a modest gap higher at the open.  The DIA and SPY are looking to open up about 0.60% and the QQQ up about 0.32%.  

The major economic news for Wednesday includes ADP nonfarm Payrolls (8:15 am), Import/Exports (8:30 am), July Markit Service PMI (9:45 am), July ISM Non-Mfg. PMI (10 am), Crude Oil Inventories (10L30 am), and a Fed Speaker (Mester at 5 pm).  Major earnings reports include ABC, ATH, BWA, CDW, CVS, DISCA, HMC, HUM, NLSN, NI, NXST, ODP, PRGO, PGR, REGN, REYN, SRE, TA, TEVA, TRI, VRT, AND W before the open.  Then after the close, ADT, ALB, CWH, CVNA, CENTA, CTL ,CF, DCP, DOX, ET, FISV, GDDY, LNC, MET, PSA, RE, RMD, SQ, TRMB, UHAL, WELL, and WDC all report. (Sorry for the wrong list yesterday.)

Markets remain stubbornly bullish, but in a methodical way (not the huge gaps and big whiplash candles we saw not too long ago).  We are approaching resistance in the large-cap indices, but the QQQ has clear skies overhead. The main driver will continue to be the stimulus deal negotiations.  Democrats say they are staunch at $3.4 trillion and the Republicans, while split, seem to be at a number around $1 trillion.  The area in between is where traders will hope or fear as Mr. Market either counts his money too soon or expects less than we’ll get.  

Keep an eye on those mega-cap FAANG stocks.  Yesterday they again pointed the way.  Although they were split 50/50 on green/red lines among the eight largest cap stocks, the percentages pointed to exactly the index results we saw.  Also, don’t forget to stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Our job is to consistently make our goals, not catch lightning in a bottle all in one trade.

Ed

The Daily Swing Trade Ideas for today: BJ, GPS, XLB, DG, XLP, PM, HD, XLI, VZ, APA, FRO. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Stimulus Negotiations Continue

Large Caps gapped a little over a half percent higher at the open.  The rest of the day saw a sideways rollercoaster chop within a half percent range.  The tech-heavy QQQ did the same thing except that its gap and chop range were both eight-tenths of a percent instead of half a percent.  On the day, QQQ was up 1.35%, DIA was up 0.90%, and SPY was up 0.70%.  VXX was flat, closing at 28.46 and T2122 rose back close to the overbought territory at 79.59.  10-year bond yields gained a bit to 0.554% and Oil (WTI) rose back to $40.78/barrel. 

On Monday MSFT confirmed they are in talks to buy the TikTok application.  MSFT stock was up over 5.6% on the news. As we know President Trump has threatened to ban the application, ostensibly on security concerns. However, many analysts see the move as a means of slowing Chinese growth in data technology, an industry dominated by US companies. Hence, the President's "suggestion" the MSFT buy the whole company and not just North American operations. Regardless, the ban threat is the impetus for Chinese company Byte Dance to sell the app. However, going a stunning step further, Trump said Monday that the US government should be paid a substantial amount of money because he is the one forcing Byte Dance to sell.  "Nice business you have there, it’d be a shame if it burned down.  And it will burn down unless you sell it to somebody I like better, by a specific date, and I also get a nice cut from the deal."

During the day, several Fed members pushed the urgency of getting more fiscal relief.  Bloomberg cited comments from 4 of the Fed voters essentially saying it is critical that more money is pumped into the economy from the fiscal side…and soon.  They all also made the point that unless inflation spike North of 2%, the Fed will do nothing to slow their own stimulus programs. Meanwhile, on the fiscal side haggling resumed Monday. All sides said the talks were productive, but there was no deal reached.  In another Fed-related story, the FOMC said it has raised its own borrowing limit again, this time to $1 trillion for Q3 in order to support its monetary stimulus programs.

In the US, the virus numbers show we have 4,862,513 confirmed cases and 158,968 deaths.  The daily new case count fell precipitously (and perhaps suspiciously) Monday to 48,622 (from over 71,000 Friday or even 68,000 the prior Monday for example). This could be an anomaly, the result of HHS taking over data collection/reporting, or simply great luck.  In any event, IF the numbers are accurate this is a major 30% step in the right direction.  Deaths stayed at their normal pattern of low Monday numbers at 568, but even so a tremendously lower number Friday or even the previous Monday.

Globally, the number of cases has reached 18,476,324 confirmed cases and 698,224 deaths.  In Australia, they have deployed their military to enforce isolation as well as levying very stiff fines in order to curb the spread.  In Europe, a German Medical Assn. reported today that they believe the country is now experiencing a second wave.  This also fits with the surge of cases seen in Spain.  In Asia, India reported a sixth straight day of over 50,000 new cases reported (number seen to be widely under-reported in that country due to medical infrastructure and testing capacity).

Overnight, Asian markets were mostly well to the positive side.  Only Shenzhen was red and Shanghai flat.  The rest of the Asian markets were strongly green.  In Europe, markets are a bit more mixed and much closer to flat as poor earnings and dividend cuts such as by BP take their toll.  The DAX is in the red with the CAC flat, and the FTSE modestly green so far today.  In the US, at 7:45 am futures are pointing to a modestly lower open.  The DIA and SPY are looking at an open about 0.30% lower, while the is looking toward a gap down of 0.45%.  

The major economic news for Tuesday is limited to June Factory Orders (10 am).  The major earnings reports on the day include ACM, AMCX, AME, ARMK, ATI, BP, EMR, EXC, EXPD, FIS, HSIC, IT, LDOS, LEA, OMI, REZI, SPR, TDG, USFD, VMC, WEC, WRK, and ZBH all before the open.  Then after the close ACHC, ALL, ATVI, AIZ, BBSI, DIS, DK, DVN, ENLC, EQH, FNF, FOXA, MCHP, OI, PAGP, PRU, PXD, TX, and WU report.

Markets are not wildly bullish, but the whippy grind higher continues.  A positive trend in virus news certainly can’t hurt, even if it is only one data point so far.  However, the real driver is the negotiations on a stimulus deal.  When reached, that should buoy markets as we know Mr. Market loves him some free money.  

As always, keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Remember, our job is to make our goal consistently, not to win the lottery on one trade.

Ed

The Daily Swing Trade Ideas for today: AA, NIO, TAL, EBAY, TNA, DHI, XRT, CARR. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Stimulus Negotiation and PMI Data on Tap

Markets gapped higher Friday about six-tenths of a percent on the back of huge beats by the major tech stocks.  However, this was met with an instant selloff that more than faded the gap.  The lows were reached about 1 pm, followed by an hour of sideways grinding.  However, at 2 pm a strong late-day rally drove prices higher right into the end of the day and saw prices close on the highs.  For the day, DIA gained 0.41%, SPY gained 0.79%, and QQQ gained 1.78% as those major FAANG stocks (particularly AAPL) led the market.  VXX fell to 28.52 and the T2122 4-week New High/Low Ratio fell to 59.68.  The 10-year bond fell slightly to 0.533% and Oil (WTI) rose to $40.45/barrel. 

The Enhanced Unemployment Benefit expired Friday as Congress, the Senate and the White House made little to no progress on negotiations.  Republicans blamed Democrats for not accepting partial stop-gaps and Democrats blamed Republicans for waiting months to get to work and not even arriving at a proposal half of their own caucus will support.  This all comes as rent and loan defaults are a growing concern in the real estate and banking sectors.  Somewhat related to more stimulus, this weekend Fitch reduced the US Debt outlook from stable to negative citing current high fiscal deficits, deteriorating public finances, and a likely path to increasing medium-term debt.

In the virus front itself, in the US, the virus numbers show we now have 4,813,984 confirmed cases and 158,375 deaths.  Friday saw over 71,000 new cases, well above the 7-day average. Deaths also remained far above the 7-day average at over 1,100 for the 5th day in a row.  Dr. Fauci said this weekend that the virus is so contagious it is likely to never completely disappear, even with effective vaccines. On Sunday, his counterpart Dr. Birx warned that we are now in a new phase with “extraordinarily widespread” cases in the US.

Globally, the number of cases has reached 18,258,528 confirmed cases and 697,395 deaths.  On Friday the W.H.O. reported a single-day record of over 300,000 new cases across the world.  This weekend Russia said it is gearing up for a national vaccination program planning to start with healthcare workers and teachers.  They’ll use a vaccine supposedly developed by themselves, although no scientific study data on the vaccine has been released.  Western experts are skeptical that Russia really has an effective vaccine developed, tested, manufactured, and ready for rollout all 4-6 months ahead of the rest of the world.  However, that is the Russian claim.  In Australia, strict new measures including total curfews have been implemented in its second-largest state.

Overnight, Asian markets were mixed again, with Japan and China as big gainers (on private survey reports showing China’s PMI (not government numbers) came in at a blowout 52.8 (highest in 9 years).  In Europe, markets are basically green across the board, but there is a clear dichotomy so far today with the DAX up over 2% and the FTSE up less than seven-tenths of a percent on strong Eurozone Manufacturing PMI.  In the US, at 7:30 am futures are pointing to a higher open, but following the European example, with a large spread.  The DIA is looking to open up 0.30%, the SPY up 0.47%, and the QQQ up 0.91%. 

The major economic news for Monday is limited to July Mfg. PMI (9:45 am), July ISM Mfg. Employment and July ISM Mfg. PMI (both at 10 am).  The major earnings reports on the day include AHCO, ACM, AMCX, AME, ARMK, ATI, BP, EMR, EXC, EXPD, FIS, HSIC, LDOS, LEA, OMI, REZI, SPR, TDG, USFD, VMC, WEC, WRK, and ZBH all before the open.  Then after the close ACHC, ALL, ATVI, AIZ, BBSI, DIS, DK, ENLC, EQH, FNF, MCHP, OI, PAGP, PRU, PXD, TX, and WU report.  

The whiplash continued Friday with all three major indices printing Hammer or Hanging Man type candles. However, while both large-cap indices continue to consolidate, the mega-tech earnings blowouts saw the QQQ nearing a retest of the all-time highs. Manufacturing data that comes out this morning is expected to give the US a boost the way it did in Asia and Europe. However, remember that the virus remains much more of an unresolved problem here than elsewhere among the top economies.

The trend remains bullish, but volatility and certainty of direction also plays a significant role. So, continue to keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick with your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Our job is to achieve our trade goals on a consistent basis, not to hit home runs every time we swing the bat.

Ed

The Daily Swing Trade Ideas for today: RIOT, NAT, IAG, DXC, NLOK, CSCO, PYPL, MSFT, ADBE. 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

Big Tech Blowouts Help Futures

Markets gapped down on the 33% Q2 GDP contraction and unexpected rising jobless claims.  However, after a half-hour of follow-through, the bulls stepped back in and rallied stocks until 1 pm.  The rest of the day was a tight-range grind sideways.  This left the SPY down 0.36%, the DIA down 0.84%, and the QQQ up 0.52% on the day. The VXX climbed 2% to 29.20 while T2122 fell to 73.94.  10-year bond yields fell to 0.548% and Oil (WTI) dropped 2% to $40.41/barrel. Yet, despite all this on the day, the main characteristics for the last week have been consolidation and chop.  

After the close AAPL, AMZN, FB, and GOOG all reported strong beats.  With their mega-caps, this will surely drive markets higher at least at the open Friday. AMZN’s surge in sales and profit was expected with all the pandemic online buying but it was still impressive.  AAPL’s beat was much larger than expected with a major beat on iPhone sales to give them a record quarter.  They also announced a 4-for-1 stock split as on August 24.  It is also worth noting the FB beat on ad revenue despite the advertising boycott, though they did mention that it could have an impact for Q3.

In the US, the virus numbers show we have 4,635,226 confirmed cases and 155,306 deaths.  With new cases came in at 68,569 Thursday (above the 7-day average) and deaths remained high at 1,465 (far above the 7-day average).  Several states had record new cases confirmed Thursday, but not the usual suspects.  This time it was states such as MO that set records.  However, FL had almost 10,000, TX almost 9,000, and CA almost 8,200 as they still lead in actual new case count.  In a virus-impact story, after the close, S&P said that over 150 firms that received PPP loans are planning layoffs.  This is only based on layoff notices and does not include all states.  44% of the layoffs are described as “permanent” with 22% more “unclassified.” 

Globally, the number of cases has reached 17,505,359 confirmed cases and 677,459 deaths.  In Latin America, Argentina reported its highest number of infections and deaths on Thursday. Meanwhile, Brazil continues to see large numbers with another 58,000 new cases.  Closer to home, Mexico   In Asia, the outbreaks in Japan, Hong Kong, Vietnam, India, and Australia.  China also reports a 3rd straight day of the new outbreak, but they have a stricter measure than we do, as they mean over 100 cases, not tens of thousands.  

Overnight, Asian markets were mixed yet again, with Australia down 2% and Japan down almost 3%.  However, Shenzhen was up over 1.3% and Shanghai up 0.7% as Chinese Factory Data beat expectations.  The remainder of Asian Market moves were modest and probably leaned to the red.  In Europe, markets are also mixed, but lean much more heavily to the green side.  The 3 major bourses all have very modest moves so far, with the FTSE flat, CAC up a quarter percent, and the DAX up six-tenths at this point in the day.  This all comes as Eurozone GDP fell 12.1% in Q2. In the US, as of 7:30 am futures are pointing to one percent gap up in the QQQ, but the DIA and SPY are just on the green side of flat.

The major economic news for Friday includes June PCE, Q2 Employment Cost, and June Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  The major earnings reports include ABBV, AON, BAH, BERY, CAT, CBRE, CHD, CHTR, CL, CVX, D, GT, HRC, IMO, ITW, JCI, LHX, LYB, MRK, NWL, PBF, PEG, PSX, SNA, SPB, TU, VFC, WY, and XOM all before the open.  INTU is the only major earnings after the close.  

The consolidation and back-and-forth chop continued again Thursday.  However, the mega-tech earnings blowouts should give the bulls some energy early today.  Vaccine manufacturers continue to rack up major contracts as Japan and the US both signed major deals.  So that industry’s stocks should get a boost.  However, remember that despite the swings, nothing has really changed in the trend or chart.  The trend remains bullish and the chart remains consolidating.

Continue to keep an eye on those mega-cap FAANG stocks as our “canary in the coalmine.”  Stick to your rules.  Follow the trend, don’t predict reversals or chase missed-moves, and always take profits as you go.  Remember, our job is to make our goal consistently, not to win the lottery on one trade. And don't forget it's Friday, so lock-in some profits ahead of the weekend spin cycle.

Ed

The Daily Swing Trade Ideas for today: CWH, LOGI, FAST, XLK, AA, CRWD, ABT, KRE, COF. Trade your plan, take profits along the way, and smart. Also, don't forget to check for upcoming earnings. Finally, remember that the stocks/ETFs 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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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.

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