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 2^nd 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

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 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 8^th straight day over 1,000, which for them is wildfire spread. In Australia, the 3^rd 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

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

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

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 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 5^th 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

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 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 3^rd 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.

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 about three-tenths of a percent and proceeded to put in a slow, steady all-day rally.   As expected, the Fed decision and statement gave no surprises and only the big Tech anti-trust hearings caused any blip at all.  However, stocks still closed near their highs.  Yet even with a nice candle on the day, no major ground has been gained by the bulls or bears for the week as a whole.  The SPY closed up 1.20%, the DIA up 0.59%, and the QQQ up 1.15% for the day.  The VXX fell to 28.52 and T2122 climbed well back into the overbought territory at 91.57.  10-year bond yields fell slightly to 0.577% and Oil (WTI) rose slightly to $41.30/barrel.

The key takeaway from Fed Chair Powell’s press conference was that the FOMC is “not even thinking about raising rates” and while recovering, “the economy remains well below the levels at the beginning of the year.”  So monetary policy should remain full speed ahead on the printing presses. On the Fiscal side, the Democrats and Republicans remain far apart (as well as the Republicans within their own ranks) on another Stimulus bill agreement.

On the Anti-trust hearings, the CEOs of AAPL, AMZN, FB, and GOOG were beaten up with evidence of anti-competitive activities.  The CEO’s general approach seemed to be denial or reframing of the allegations.  However, Jeff Bezos went a different route, claiming to be shocked and concerned at the accusations.  It is worth noting that FB, AMZN, GOOG, and AAPL stocks all rose well over a percent on the day. So, Mr. Market did not care about at least the first couple hours of the process.

In the US, the virus numbers show we have 4,568,375 confirmed cases and 153,848 deaths.  With new cases came in at 66,921 Wednesday and deaths rose again to 1,485.  TX passed NY to join CA and FL with the distinction of being the most-infected states.  This came as another group of scientists called for a second national shutdown.  The first group was 150 scientists who wrote an open letter last weekend.  Johns Hopkins University Infectious Disease Department scientists became the second group, recommending 10 steps which included a national lockdown and nationally mandatory masks to stem the tide.

Globally, the number of cases has reached 17,213,663 confirmed cases and 670,909 deaths.  In Asia, Australia, Hong Kong, India, and Vietnam all had record numbers of new cases while Japan and South Korea were near record highs. In Europe, Italy extended its state of emergency through Oct. 15.  This comes as Germany reports the sharpest quarterly economic drop on record (a 10.1% contraction).

Overnight, Asian markets were mixed yet again, but this time lean toward the red.  However, the moves were modest.  The lone outlier is Taiwan, which was up 1.45%.  In Europe, markets are strongly red across the board on poor economic data and a resurgence of cases in a number of EU countries.  As of this point, the FTSE is down 1.92%, the DAX down 2.85%, and the CAC down 1.68%.  In the US, as of 7:30 am futures are pointing to a once percent gap down across the 3 major indices.  However, the economic data at 8:30 am is likely to have a significant impact one way or the other.   

The major economic news for Thursday is limited to Q2 GDP and Initial Jobless Claims (both at 8:30 am).  Major earnings include AOS, AGCO, ALXN, AMT, BUD, APTV, ARW, AZN, BAX, CARR, CI, CLF, CNHI, CMCSA, COP, DAN, DBD, DD, FNMA, FMCC, FMS, GPC, GPI, HBI, HUBB, IDA, ICE, IP, K, KDP, KHC, LIN, LKQ, LLY, MA, MAS, MCO, MD, MMC, MT, NEM, NOC, ODFL, OSK, PG, SAH, SIRI, SNDR, SO, SWK, TAP, TMHC, TXT, UPS, VLO, WM, WLTW, XEL, XYL, and YUM all before the open.  Then AAPL, AJG, AMZN, ATUS, BLDR, CC, DVA, EA, F, FB, FLEX, FLS, GILD, GOOG, HIG, INT, LPLA, MHK, MOH, MTZ, RLGY, SEM, X, VRTX, and XPO all report after the close.

Wednesday gave us a nice candle in an otherwise consolidating last week. With no sign of a stimulus deal yet, it will surely be GDP and Jobless Claims that call the tune for the day. However, there are a lot of important earnings today(but most of the mega-cap tech names are after the close). So, volatility is likely to continue after the news.

Did you ever think you’d see a day when if we were lucky enough to see a 30% GDP contraction, that might be seen as a major beat of estimates? The point is we are in uncharted waters. We really don’t know how good or bad any number will be seen by the overall market. All we know for sure is that bulls have been wearing their rose-colored glasses for some time and that whipsaws are fast.

Keep the FAANG stocks in your line of sight as they will point the way. Follow the trend, don’t try to predict reversals or chase moves that got away. And always, always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: OIH, V, SIG, SYF, FITB, FAST, 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.

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 down slightly, then ground sideways until 3 pm when a late-day selloff closed us on the lows Tuesday.  Overall, it was a blah summer day, seeming to wait on Fed news or some other catalyst. On the day, SPY closed down 0.59%, DIA down 0.76%, and QQQ down 1.27%.  Oddly on a down day, VXX also closed down to 29.17, but as expected T2122 also fell just a touch to 78.07.  10-year bond yields were flat at 0.579% and Oil (WTI) fell back to $40.93/barrel.  On the upside, Gold closed at another all-time high.

During the afternoon, the Fed announced it is extending its pandemic loan programs (previously planned to end in September) through at least the end of the year.  At the same time, Senate Majority Leader McConnell was telling the press what he refuses to negotiate with Democrats and other Republican Senators were saying they oppose the GOP plan.  Not to be outdone, Senate Minority Leader Schumer was attacking the Republican plan from the opposite direction.

Last evening, V reported sharply lower revenue and earnings.  The company said that even as the country was reopening in June, they saw spending using their cards down 10% during the month (which was actually an estimate beat).  BBY also announced that they will join the bandwagon of companies that will not open Thanksgiving Day.

In the US, the virus numbers show we have 4,498,475 confirmed cases and 152,343 deaths.  With new cases came in at 64,729 Tuesday and deaths more than doubled day-to-day to 1,245. FL and NC both reported a record number of virus hospitalizations Tuesday.  However, FL also reported a bit less than their 7-day average of new cases. Outbreak fears seem to have shifted from the sunbelt to the IN, OH, KY, and TN area.

Globally, the number of cases has reached 16,923,001 confirmed cases and 664,191 deaths.  UK PM Johnson warned of a second wave in Europe.  This came as the UK and Germany both toughened their travel restrictions for Spain based on an outbreak in the Barcelona region.  This came as the Spanish PM warned tougher measures will be needed unless the spread is broken in the next 10 days. In Asia, the Vietnamese PM said every city and province in his country is now at high risk for infection and that they will institute strict lockdowns.  Hong Kong Chief Executive Lam said the city was on the verge of a crippling outbreak as well.

Overnight, Asian markets were mixed yet again, with Japan and India significantly lower, but China strongly higher.  The rest of the national bourses were mixed and closer to flat.  In Europe, a similar scene is taking place with the only significant moves being France to the upside and Italy to the downside so far on Wednesday.  In the US, as of 7:30 am futures are pointing to a flat to mildly green open. 

The major economic news for Wednesday includes June Trade Balance and June Retail Inventories (both at 8:30 am), June Pending Home Sales (10 am), Crude Oil Inventories (10:30 am), FOMC Statement and Rate Decision (2 pm), and the FOMC Press Conf. (2:30 pm).  Major earnings include AAN, AER, ANTM, ADP, AXTA, BA, BSX, BCO, BG, CLS, GIB, CME, ENB, EPB, ETN, ETR, GD, GE, GM, HES, IPG, MGLN, MKL, NSC, OC, PAG, R, SNY, SC, SMG, SPOT, TROW, TEL, and TT all before the open.  Then after the close, ADM, AMP, APA, AR, ASGN, AVTR, CCI, CERN, CTSH, CXO, EQIX, FBHS, FTI, LRCX, PYPL, QCOM, QRVO, NOW, SFM, TPC, URI, and YUMC.

With the FOMC not until afternoon and the government arguing over who gets what money and which politician gets the credit, it looks like earnings will drive any move prior to the Fed. And while the FOMC is not expected to make any policy moves, the market is waiting for either reassurance or a scare from Chair Powell’s comments. So, while we will likely see volatility in spots, it would not be unexpected to see drift until 2pm. Also, remember that most Fed moves see a whipsaw 10-15 minutes after the initial move.

Keep an eye on those FAANG stocks as our “canary in the coalmine” and follow the trend. Don’t try to predict reversals, don’t chase moves that got away, and always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: NIO, GM, XLU, KR, HOG, YNDX, ZS, IYR, BAC. 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.

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

A quarter percent higher open led to a roller-coaster morning.  However, an afternoon rally saw markets close near their highs, particularly on strength from the mega-cap tech stocks.  The QQQ gained 1.78%, SPY gained 0.74%, and DIA gained 0.48%.  The VXX closed down to 29.34 and T2122 settled right on the edge of overbought territory at 80.08.  10-year bond yields rose a bit to 0.610% and Oil (WTI) also rose slightly to $41.61/barrel.  It’s also worth noting that gold soared to a record high of $1,931.50/oz.

Last evening INTC announced their head of Engineering (who was widely expected to be the next CEO) will leave the company next Monday.  No word on if or how this relates to INTC’s announced engineering and manufacturing delays. Unrelated, but about the same time, T subsidiary Warner Brothers also announced that their widely-anticipated new high-budget film Tenet will be released internationally first and then a few weeks later in select US cities in an attempt to reduce virus impact. GOOG announced they are extending their work-from-home plan through at least July 2021.  Finally, MCD reported early this am with a 30% revenue drop and a same-store sales short-fall of just 2.3%.

In the US, the virus numbers show we have 4,433,532 confirmed cases and 150,450 deaths.  With new cases falling to 61,571 and deaths down to 596, there are signs of plateauing again in at least the 3 worst-hit states (FL, TX, and AZ).  Better yet, PFE announced that they had started their phase 3 trial in conjunction with German biotech partner BNTX.  This was a timeline acceleration to avoid falling behind MRNA whose own phase 3 trials also began on Monday.  It will take a couple of weeks to enroll enough participants in either study and the preliminary results ought to be available as soon as the end of October.

Globally, the number of cases has reached 16,672,852 confirmed cases and 657,270 deaths.  The numbers are worrying.  However, the real issue of concern is that even the countries that actually acted fast and decisively, and seemingly had the virus under control, are now seeing a resurgence.  Among these are China, Hong Kong, Vietnam, Japan, and South Korea.  The obvious question is if countries with extremely high mask compliance and fast, strict quarantines have trouble controlling this virus, what does that imply for much less compliant and much more economically-focused countries like the US?

Overnight, Asian markets were mixed again, but leaning more to the green side. China, South Korea, and India all put up gains of over 1%.   Japan, Australian, and Thailand were the losers on the day, but not down as much as the winners were up.  In Europe, markets are much more on the red side so far in the day.  The moves are modest, but the red is broad-based with only Greece, Belgium, and the FTSE on the green side.  In the US, as of 7:30 am futures are pointing to a gap lower a third of one percent at the open. 

The only major economic news for Tuesday is Conf. Board Consumer Confidence (10 am).  However, there are a lot of major earnings with ABG, BEN, CMI, CNC, DHI, DTE, ECL, GLW, HOG, HUN, IVZ, LH, LW, MCD, MDC, MLM, MMM, MO, OMC, PFE, PII, ROP, RTX, SPGI, SHW, XRX, and ZBRA are all among those reporting before the open.  After the close, AMD, AFL, AKAM, AMGN, CAR, CB, CHRW, CE, CYH, EBAY, EIX, FTV, THG, JNPR, MDLZ, MRC, NCR, OKE, PKG, SBUX, SSNC, STX, UNM, and V all report.

Monday gave us morning indecision and an afternoon rally (perhaps on Fed hopes). However, nothing really changed in the trend or chart.  While it was a decent candle in the QQQ, we still did not print a Morning Star, the bullish trend remains in place, and there remains work ahead if bulls plan to push up through the top again. 

Today is a light day on planned news and may well be driven by earnings, hopeful vaccine news, and politicking over stimulus. However, we could also sit on our hands for a day waiting on reassurance from the Fed.  

Keep an eye on those FAANG stocks as our “canary in the coalmine.”  Follow the trend, don’t chase or predict reversals, and always take profits as you go.  Remember, trading is a job and we’re here to consistently make profits, not win the lottery.

Ed

The Daily Swing Trade Ideas for today: WU, XHB, COF, IBM, OIH, HAL, DFS, SLB, HPR, XLV, VXX. 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.

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 down Friday and then gave us indecision to end the week.  Both the SPY and DIA printed Doji and QQQ printed a White Spinning Top.  Only the SPY broke its uptrend line, but only the QQQ flipped its Volatility Stop (10. 1.5) from green to red.  For the day, the SPY lost 0.64%, the DIA lost 0.75% and the QQQ lost 0.95%.  VXX was also flat at 30.17 and T2122 fell back into the mid-range at 66.97.  10-year bond yield were flat at 0.587% and Oil (WTI) climbed slightly to $41.34/barrel.  For the week, we had indecisive trading that closed down a bit as once again the mega-cap tech names led markets by the nose all week.

This week has the potential to be the most news-filled of the summer (at least so far).  Republicans are expected to finally finish their relief plan so that negotiations can begin with Democrats, perhaps as soon as Monday.  Over the week, there will also be 1,200 major earnings reports released, including most of the huge FAANG stocks that truly drive market direction.  The CEOs of those FAANG stocks will also be testifying before Congress during an Antitrust hearing on Wednesday.  On that day, the Fed also ends its regular meeting and although no new announcements are expected, their statement and the Q/A will be important.  Lastly, on Thursday the first read of Q2 GDP will come out, giving us as idea how bad the economy crashed during the first belated shutdown.  On top of all this, we know virus and virus impact news will continue hot and heavy.

On Sunday, Bloomberg reported the big banks such as BAC, GS, and JPM now expect the EU’s economic recovery to be larger and faster than that of the US.  The overall theme is that leadership and fast action breed public confidence and the EU scores much better at this than the US.  Those experts point to July PMI data, where the EU PMIs handily beat analyst expectations, while the US PMI came in below expectations.  In the longer-term, the EU will also have much less debt to pay off.  The US has spent a bit more than $10 Trillion (so far) in combined fiscal and monetary stimulus (not including state spending).  By contrast, the supposedly socialist EU, with a 50% larger population, has spent a fourth of that number even including individual EU-member spending. The bottom line is that companies focused on EU markets may be favored over those that focus on US markets in the short to medium-term timeframes.

In the US, the virus numbers show we have 4,371,992 confirmed cases and 149,852 deaths.  Over the weekend, the country saw the 7-day averages rise to 69,000 new cases and 937 new virus deaths. On Friday, MCD and CMG both also joined the long list of retailers now requiring all customers to wear masks.  Thankfully, TX and AZ saw a reduction in new reported cases.  However, this may be less a trend and more about the hurricane and normal weekend activities impacting numbers.

Globally, the numbers have reached 16,446,932 confirmed cases and 652,852 deaths.  It took just over 4 days for the world to go from 15 million to 16 million cases and that pace continues.  This came as new outbreaks were found in China, Hong Kong, Vietnam, Japan, Spain, Sweden, Romania, and Bulgaria.  The Chinese outbreak was the largest since the initial Wuhan eruption. The W.H.O. also reported rampant spread throughout sub-Saharan Africa.  Finally, Latin American has become the current epicenter with Brazil, Mexico, Peru, and Chile now all among the top 8 most-infected countries.

Overnight, Asian markets were mixed but generally close to flat.  The exception was Thailand, where in addition to other news items, they are experiencing public demonstrations related to both government response and social problems.  (Not a great atmosphere in a country prone to military dictatorships.)  In Europe, markets are following Asia. The major bourses are all within a quarter percent on either side of flat so far today. In the US, as of 7:30 am futures are pointing to a gap higher of between a third (DIA) and one percent (QQQ) at the open. 

The only major economic news for Monday is June Durable Goods Orders (8:30 am).  However, Monday is the slow kickoff of an otherwise heavy week of earnings.  Before the bell Monday, we’ll get reports from AVY, CX, EQT, HAS, RPM, and SAP (SAP announced a spinoff IPO of a division as well).  After the close, AMKR, BRO, CINF, FIX, CR, EHC, FFIV, NOV, NXPI, OMF, PFG, TFII, and UHS report.

Friday gave us indecisive follow-through to Thursday’s ugly candles, but the uptrend has not been broken and we have potential support below.  So, the fight is still on between the bulls and bears in the short-term.  We have a lot of news coming this week, which leaves open the possibility of either a lot of volatility or a flat market too overwhelmed by conflicting news to make a move. 

That said, remember that the market has only paid attention to good news for months now. The point is we may see a pause to get more assurance, but the lean is definitely still in the bulls favor.  So, watch those FAANG stocks as our “canary in the coal mine,” but follow the trend.  Don’t chase or predict reversals, and always take profits as you go.  Remember, consistent singles and doubles win championships, not occasional home runs.

Ed

The Daily Swing Trade Ideas for today: BBY, LULU, AA, FDX, WEN, KO, TGT, TCOM, DNKG. 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.

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 down slightly Thursday on worse than expected Initial Jobless Claims (1.4mil vs. 1.3mil expected).  However, prices bobbed around flat until Noon, when a strong selloff took us to the lows where prices remained the rest of the day.  All 3 major indices put in ugly black candles but did manage to close up off the lows a bit.  So, despite the bad day, the bullish trend was not broken.  On the day SPY lost 1.19%, DIA lost 1.22%, and QQQ lost 2.61% as the mega-cap tech names led markets lower.  The VXX closed up to 30.07 and T2122 fell a bit to 89.47, which is still well into overbought territory.  10-year bond yields fell again as money chased bond safety, closing at 0.577%.  Oil (WTI) was also down, closing at $41.06/barrel.

The GOP continues to haggle over their stimulus proposal.  Late Thursday Senate Majority Leader McConnell said Senate Republicans will release their plan sometime next week.  The Republican plan is expected to be in the $1-1.5 Trillion range and the Democratic plan proposed $3.5 Trillion.  So, we’d expect the final number to be in-between the two extremes.

After the close, INTC beat on the top and bottom lines, but guided down for Q3 and announced yet another delay in their next-generation chips (which is already a couple years behind schedule and had been planned for a release 2021).  INTC now plan for that 7nm chip release to be in late 2022 or even 2023.  (INTC still uses 14nm and competitor AMD has been shipping 7nm chips since 2019.) After-hours, INTC stock was hammered and AMD was up by about the same amount that INTC was down.

In the very suspiciously-timed US-China relations story, the Trump Administration continued to ramp up the “good guy vs. bad guy” theme in yet another scathing speech overnight by Sec. of State Pompeo.  Of course, as promised, China retaliated over the US closing the Chinese Houston Consulate by forcing the closure of the US Chengdu consulate.  Asian and European markets reacted poorly to these escalations, which traders fear could lead to another trade war.

On the COVID story, in the US, the virus numbers show we have 4,170,333 confirmed cases and 147,342 deaths.  The country saw just over 69,100 new cases and 1,150 new virus deaths on Thursday.  DIS also announced it is pushing back the release of several major movie franchises for a year over virus fears.  These include Mulan, Star Wars, and Avatar.  Not coincidentally, AMC theatres also have pushed back their reopening until at least mid-Aug. in light of the current surge in cases nationwide. 

Globally, the number of cases has reached 15,684,371 confirmed cases and 637,222 deaths.  Brazil had its second-highest number of cases Thursday as the outbreak continues in that country.  Cases in that South American country have tripled in the last 30 days.  A little further North, China offered Latin American and Caribbean countries a $1 billion low-interest loan to help them finance the purchase of a Covid-19 vaccine.  In Asia, both India and Japan again reported their highest number of daily infections on Thursday.

Overnight, Asian markets were down on the US-China tensions.  Prices were off significantly across the board, but Shanghai (-3.86%) and Shenzhen (-5.00%) took the hardest hit.  In Europe, a similar case is taking shape.  All the European bourses are down significantly, with the sole exception of Russia, which is just on the green side of flat so far today. In the US, as of 7:30 am futures are pointing to a modest gap lower of about three-tenths of a percent with the exception of the QQQ which is looking at three-quarters of a percent gap down.  

The major economic news for Friday includes July Mfg. PMI and July Services PMI (both at 9:45 am) as well as June New Home Sales (10 am).  Major earnings releases include AXP, BLMN, FMX, HON, NEE, SLB, and VZ all before the open.

Thursday’s ugly candles still managed to maintain the uptrend, but we are right there.  So, it will be important to see whether the bears can get some follow-through or the bulls can bounce us up off trend and back into the green for the week.   Continue to expect volatility as virus news, stimulus rumors, earnings, and the US-China stories are all likely to make headlines today.

As Swing Traders, all we can do is watch the chart and follow the trend.  Remember to keep an eye on those FAANG stocks as our “canary in the coalmine.”  Remain focused on short-term charts and don’t chase, don’t predict, and always take profits as you go.  In earnings season, be wary of both reactions and re-reactions.  And don’t forget it’s Friday.  So take some profits and be prepared to weather the weekend news cycles.

Ed

The Daily Swing Trade Ideas for today: LABD, XLF, XOP, ITB, XHB, XLE, XLI, XLB, XRT, VXX. 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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