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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

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

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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

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

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

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

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

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

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

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

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets made a modest gap higher at the open Friday and then waffled until mid-morning.  At that point there a sharp rally for about 45 minutes before the market went dead-flat the rest of the day.  This left us with strong white candles in the QQQ and SPY, but a Spinning Top in the DIA.  On the day, SPY gained 0.75%, QQQ gained 1.06%, and DIA gained 0.51%.  The VXX fell to 20.36 and T2122 rose, but remains in the mid-range at 71.00.  10-year bond yields rose to 1.578% and Oil fell a percent to $80.77/barrel.

During last week, Elon Musk ended up selling about $6.9 billion worth of TSLA stock.  This included about $1.2 billion on Friday.  Despite his having used a TWTR poll a week ago as justification, one of the main reasons behind his sale was to get the cash to pay taxes on a large pool of stock options he will be exercising this quarter. TSLA stock fell 15.4% on the week.  However, in his apparent effort to remain in the news, this weekend, Musk taunted Senator Bernie Sanders and, in the process, suggested he may sell more shares of TSLA.

President Biden is scheduled to hold a several-hour “virtual summit” with Chinese President Xi today.  The focus will be on Taiwan, its security, and rising tensions over what China calls a “renegade province” (or country, although we have never recognized them as a separate country).  Trade, tariffs, and global supply chain issues are not scheduled to be on the agenda.  However, the US-imposed tariffs are a major Chinese concern and on the US side, the Chinese commitment to reduce the use of coal (COP24 watered-down agreement) and the Chinese treatment of Uyghur minorities are priority issues.

Retail will take the earnings spotlight this week.  WMT, HD, LOW, TGT, TGX, KSS, M, ROST, and FL all report later this week.  In addition to Q3 reports, markets will be listening to how companies plan to cope with supply problems and spiking inflation in Q4.  In related news, TSN beat on both lines and AAP beat on revenue, but missed on earnings in their reports this morning.

Overnight, Asian markets were mixed but mostly green.  South Korea (+1.03%), Taiwan (+0.66%), and Japan (+0.56%) paced the gainers.  Meanwhile, Malaysia (-0.58%), Indonesia (-0.53%), and Shenzhen (-0.47%) were the only appreciable losers.  In Europe, markets are more mixed and lean to the red side on modest moves.  The FTSE (-0.19%), DAX (+0.12%), and CAC (+0.42%) are typical of the spread across the continent at mid-day.  As of 7:30 am, US Futures are pointing toward a green open.  The SIA is implying a +0.29% open, the SPY is implying a +0.23% open, and the QQQ implies a +0.24% open at this hour.

The only major economic news scheduled for release Monday is limited to NY Empire State Mfg. Index (8:30 am).  Major earnings reports scheduled for the day are limited to ACM, DDL, TSN, and WMG before the open.  Then after the close, AAP, EDR, and RXT report.

With only the Empire State Mfg. Index report this morning and little earnings news, the path seems open for bulls to follow through on Friday and move prices higher (at least early). Remember that the short-term (pullback) downtrend has been broken in the SPY and QQQ and is being challenged in the DIA. However, that longer-term strong bullish trend remains in place and we sit near all-time highs.

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

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped higher at the open Thursday, but then drifted sideways back inside the gap the rest of the day on light holiday volume.  DIA was the exception as it opened flat and traded down all day as traders punished DIS for their terrible report the night before.  This left us with black candles in all 3 major indices.  On the day, SPY gained 0.04%, DIA lost 0.45%, and QQQ gained 0.28%.  The VXX fell 2% to 21.14 and T2122 rose a little but remains solidly in the mid-range at 63.51.  10-year bond yields rose to 1.57% and Oil (WTI) fell to $81.17/barrel.

This morning, JNJ announced plans to split into two companies, one focused on consumer healthcare products and the other being its pharmaceutical and medical device business units.  (This is the second version of such a scheme in months.) The logic behind this plan is to move all liability from the Johnson’s Baby Powder cancer lawsuits into the consumer products business, insulating the larger business unit from liability.  The move came just days after the company’s attempted “Texas two-step” (to split off just the talc business alone and choose its own bankruptcy court to limit company liability) failed and the courts ruled that the JNJ bankruptcy will be heard and litigated in the company’s home state of New Jersey.  Hence the company is looking to divide to protect what parts of the company it can.  JNJ stock is soaring in premarket on the news.

Continuing the conglomerate breakup theme started by GE and followed (for different reasons) by JNJ, Toshiba announced overnight that it is also breaking up.  This one is a breakup into 3 companies. TOSYY will spin off its “device and storage” business which makes chips (now branded as Kioxia) as well as its “energy and infrastructure” units into their own companies.  This split comes after a 5-month strategic review that was spawned by a governance scandal.  The company hoped the reorganization is completed by the second half of 2023.  Toshiba closed 1% lower on the news in Japan.

So far this morning, SPB reported a beat on both lines and AZN beat on revenue but missed on earnings.  In other business news, Elon Musk took a back-handed shot at new rival RIVN.  In a tweet last night, Musk said “I hope they (RIVN) are able to achieve high production and breakeven cash flow.  That is the true test.”  He went on to say TSLA is the only American carmaker to do so in the past 100 years.  RIVN is up 58% from its IPO price in two days of trading (and up 4% in premarket).  TSLA is up about 8% over the same time and is flat in premarket trading.

Overnight, Asian markets were mostly green.  South Korea (+1.50%), India (+1.28%), and Japan (+1.13%) led the way.  However, gains were widespread and only New Zealand (-0.91%), Indonesia (-0.60%), and Singapore (-0.30%) were in the red in the region.  In Europe, markets are more mixed at mid-day.  The FTSE (-0.39%), DAX (+0.16%), and CAC (+0.35%) are typical of the continent in early-afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly green start to the day.  The DIA is implying a +0.28% open, the SPY implies a +0.22% open, and the QQQ implies a +0.25% open at this hour.  Bonds are up off overnight lows to 1.568% and Oil (WTI) is down almost 2% in early trading.

The major economic news scheduled for release Friday is limited to Sept. JOLTS and Michigan Consumer Sentiment (both at 10 am) as well as a Fed speaker (Williams at 12:10 pm).  Major earnings reports scheduled for the day are limited to AZN and SPB before the open.  There are no major earnings reports after the close.

With no economic news before the open and coming off a slow holiday session, markets are seeming to want to drift higher. While the trend of “rationalizing conglomerates” (breaking into actually related units) will get a lot of talk, that is not enough to move markets. Remember that the short-term trend is down, but the longer-term trend is very bullish and we sit near all-time highs.

Watch your current positions before looking to add any new trades. Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Trade carefully and think twice about holding through earnings.

Ed

Swing Trade Ideas for your consideration and watchlist: WISH, VUZI, CSIQ, CRSR, FAST, LUMN, ROOT, FCX, QS. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped lower at the open, after a higher-than-expected CPI number (4.6% vs 4.3% est.), but then rallied to fade the gap the first half-hour of the day.  However, that was the last sighting of the bulls as stocks sold off from 10 am all the way into the close.  This left us with black Spinning Top type candles that closed below the T-line (8ema) in all 3 major indices.  On the day, SPY lost 0.80%, DIA lost 0.61%, and QQQ lost 1.47%.  The VXX rose just under 2% to 21.58 and T2122 dropped back to mid-range at 54.08.  10-year bond yields spiked to 1.565% and Oil (WTI) fell almost 3.5% to $81.28/barrel.

In addition to the CPI number, new Jobless claims came in slightly higher than expected, but still down 4,000 below the prior week.  Interestingly, oil inventories came in far, far lower than expected (less than half of expected and less than one-third of the prior week’s inventory at 1 million barrels vs 2.13 million barrels expected).

After the close DIS reported a miss on both lines.  In particular, it was a bad miss on earnings.  In addition, the company reported on Disney+ subscriber estimates and overall reduced streaming demand across all of its properties (Disney+, ESPN+, Hulu+, etc.).  What makes the Disney+ subscriber miss worse is that the company had previously lowered the forecast before missing their own estimate.

In a follow-up to his “Twitter poll” self-promotion on Saturday (where almost 58% said he should sell 10% of his TSLA stock), Elon Musk sold $4.98 billion of TSLA stock on Tuesday and Wednesday.  The SEC filing indicates these were not planned sales.  Despite his “poll”, it turns out Musk made the sale so he could satisfy tax obligations after exercising a large block of stock options.  TSLA fell more than 15% on Tuesday before rebounding 4% on Wednesday.

Overnight, Asian markets were mixed, but the real movers were on the green side.  Shenzhen (+1.27%), Shanghai (+1.15%), and Hong Kong (+1.01%) led the way as China rebounded.  In Europe, markets are also mixed at mid-day.  The big exchanges are all green (barely in cases), but there are more than a half of a percent losses across many of the smaller countries.  The FTSE (+0.42%) leads with the DAX (+0.07%) and CAC (+0.08%) staying barely above water in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a green open.  The DIA is implying a +0.13% open, the SPY implies a +0.36% open, and the QQQ implies a robust +0.61% open at this hour.

Due to the Veterans Day holiday, there is no US economic news scheduled for release, but OPEC releases its monthly report at 7 am.  Major earnings reports scheduled for the day include MT, AZUL, BHG, BAM, CAE, CRC, EPC, OGN, SBH, TPR, and WB before the open.  Then after the close, FLO and PAGS report.

With no economic news on the agenda as well as government offices and banks closed for the holiday, do not be surprised if markets drift on light volume. One story that is likely to gain some traction is another surge in cases in Germany (more than 50,000 new cases per day on a population of 83 million), which is obviously a major economy and tied to all of the EU.

The trend remains bullish and the pullback of the last few days is a healthy thing for a rally (easing over-extension). With that said, we know consolidations and pullbacks can last a lot longer than we expect. So, just as with long-term trend reversals, don’t get caught trying to predict short-term reversals either. The trend is our friend.

Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Watch your current positions before looking to add any new trades. Trade carefully and think twice about holding through earnings.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets opened flat on Tuesday but sold off hard the first half-hour of the day.  From that point, stocks traded sideways in a pretty tight range the rest of the day but did close up off the lows.  This left us with black candles in all 3 major indices and broke a long string of consecutively higher closes in the large caps.  However, all 3 indices remained in their uptrends and above the 8ema (T-line).  On the day, SPY lost 0.32%, DIA lost 0.29%, and QQQ lost 0.69%.  The VXX rose to 21.21 and T2122 fell to just outside of the overbought territory at 78.79.  10-year bond yields fell to 1.441% and Oil (WTI) rose almost 3% to $84.40/barrel.

Before the open Tuesday, wholesale prices were announced.  They came in up 0.6% for the month and up 8.6% year-on-year (the highest pace in 11 years).  As such, markets sold off early on Tuesday. The PPI was seen as a potential read-through to the more widely watched CPI number coming today.  The consensus expectation for the CPI number is 0.6% for the month and 4.3% year-on-year. However, those seem a lot less likely given the 8.6% wholesale-level increase.

During the day, the big business news was the GE announcement that they will break their company.  The 3 new companies will focus on aviation, healthcare, and energy.  This will be done by spinning off the health care unit by mid-2023 and then spinning off the energy unit by early 2024.  GE stock closed up 2.65% after a very volatile (more than 5% range) on the day.  While activist investors had been calling for such a move for a long time and many thought that was the reason Larry Culp (GE’s first “outsider” CEO) was brought in, the timing surprised the market.

In miscellaneous news, RIVN is set to launch its IPO this morning.  The company priced its shares above the underwriter-valued range (initially $60, then $73) at $78 per share.  Mortgage rates have also dived in the last week, moving from 3.24% to 3.16% on average nationally for a 30-year fixed, conforming loan.  As a result, refinance loan demand was up 7% and new home purchase loan application were up 3% for the week.  Finally, GOOG lost another appeal of the $2.8 billion fine the EU imposed in 2017 for antitrust law breaches.  The company can drag it out the requirement to pay even further with one last appeal to the EU’s highest court and this is exactly what GOOG is expected to do.

Overnight, Asian markets were mostly in the red.  Hong Kong (+0.74%), Indonesia (+0.20%), and Taiwan (+0.10%) were the only exceptions.  However, South Korea (-1.09%), Japan (-0.61%), and Shanghai (-0.41%) paced the losses in the rest of the region.  In Europe, markets are mixed, but mostly red at mid-day.  The FTSE (+0.44%), DAX (-0.12%), and CAC (-0.37%) are typical of the region, with the lone outlier of Denmark (-1.54%).  As of 7:30 am, US Futures are pointing to a down open.  The DIA is implying a -0.16% open, the SPY implies a -0.25% open, and the QQQ is implying a -0.47% open ahead of the news.  10-year bond yields are up to 1.474% and Oil (WTI) is down nine-tenths of a percent in early trading.

The major economic news scheduled for release on Wednesday is limited to Oct. CPI and Weekly Initial Jobless Claims (both at 8:30 am), Crude Oil Inventories (10:30 am), and Oct. Federal Budget Balance (2 pm).  (The Jobless Claims come a day early this week due to the Veterans Day government holiday on Thursday.)  Major earnings reports scheduled for the day include ADNT, AER, ARCO, ARKO, GIB, DFH, ENR, KELYA, EYE, PFGC, RPRX, WEN, and WWW before the open.  Then after the close, APP, ATO, BZH, COMP, ENS, ULCC, KGC, OPAD, OPEN, SPTN, and DIS report.

Inflation is in focus this morning, along with jobless claims. However, after the win streak on the Jobless Claims front the last 6 weeks, few are expecting a jump in claims today. However, the CPI data is expected to come in much hotter than the 4.3% rate consensus forecast. The reaction to this number is likely to call the tune and drive markets at least the first part of the day.

The trend remains bullish, but the last couple of candles have given the bulls come relief from extension. Yes, they were black candles, but this was a good thing for bulls because that over-extension was preventing some new buying. With that said, consolidations and pullbacks can last a lot longer than you expect. So, just as with long-term trend reversals, don’t get caught trying to predict short-term reversals either. The trend is our friend.

Focus on your trade rules and on managing the things you can control. That should include consistently taking profits when you have them and moving your stops in your favor. Watch your current positions before looking to add any new trades. Trade carefully and think twice about holding through earnings.

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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