Bears Piling On and NFLX Report Helps

The bears sprung a massive bull trap on Thursday, with a 3% intraday reversal mid-day.  Markets gapped higher and all 3 major indices followed through until about 11 am.  At that point, the 3 were up 1.5-2.0% on the day. Then the bears sprung the trap and selling kicked in, continuing the rest of the day. It even accelerated to a sheer drop in the last 15 minutes of the day.  This left us with big, ugly, black candles with large upper wicks in all 3 major indices.  On the day, SPY lost 1.10%, DIA lost 0.88%, and QQQ lost 1.30%.  The QQQ and DIA both fell through their 200sma, not finding support.  VXX rose another 4% to 21.22 and T2122 dropped deep into the oversold territory at 1.41.  10-year bond yields fell to 1.811% and Oil (WTI) also fell three-quarters of a percent to $86.29.

Click for video

PTON got more bad news Thursday. The company announced it has halted production of its bikes and treadmills as demand has fallen dramatically.  On the day, PTON fell another percent and is now below the original IPO price.  In reaction, PTON put out a pre-announcement this morning, saying they expect Q2 revenue will be within their previously released guidance range and that they are taking significant corrective action to improve profitability.

After hours, NFLX reported a beat on earnings and came in inline on revenue, but it also reported slowing subscriber growth and it forecast future growth slowing even further.  As a result, NFLX fell 25% in post-market trading.  In other earnings news, so far this morning ALLY, INFO, and SLB have all beaten on both lines.  HBAN beat on earnings but missed on revenue.

Overnight, Asian markets were nearly red across the board, with only Hong Kong (+0.05%) hanging on to the green by the skin of its teeth.  Australia (-2.27%), Taiwan (-1.75%), and Shenzhen (-1.19%) paced the region’s losses.  In Europe, we see red across the board at mid-day.  The FTSE (-1.07%), DAX (-1.78%), and CAC (-1.66%) are leading the region lower as fears of a Russia-Ukraine war and rising rates grip markets.  As of 7:30 am, US Futures are pointing toward a down start to the day.   The DIA implies a -0.29% open, the SPY implies a -0.56% open, and the QQQ implies a -0.91% open at this hour.

The major economic news scheduled for release Friday is limited to Leading Indicators at 10 am.  Major earnings reports scheduled for before the market include: ALLY, HBAN, INFO, and SLB.  There are no earnings reports scheduled for after the close.

LTA Scanning Software

After Thursday's afternoon selloff, fear is clearly gripping the bulls. We may be seeing capitulation selling as the correction picks up pace. So, be careful about chasing shorts. Just like chasing longs, that can be a dangerous approach in a volatile market. Also, don't forget it is Friday and we need to prepare for the weekend news cycle. In addition, Friday is payday...so take some profits if you have them.

Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. And keep in mind that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.)

Ed

Swing Trade Ideas for your consideration and watchlist: AAPL, PENN, PLTR, DLTR, PM, XP. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

China Cuts Rates and Bears Roar

Stocks gave us a small gap higher at the open Wednesday.  However, that was just the start of a roller-coaster “gap and crap” action that saw all 3 major indices close near their lows again.  This left us with big ugly black candles in all of those indices.  For the day, SPY lost 1.02%, DIA lost 0.96%, and QQQ lost 1.09%.  The VXX rose another 2.4% to 20.27 and T2122 fell deeper into the oversold territory at 12.75.  10-year bond yields actually fell a bit to 1.85% and Oil (WTI) was up another 1.46% to $86.68 on reports a Russian invasion of Ukraine may be imminent.

Click for video

In a follow-up to a report made the other day about PTON hiring McKinsey to evaluate costs, there were two pieces of news today.  First, leaked audios came out with PTON execs are discussing cutting 41% of their sales and marketing staff, cutting some staff from their eCommerce group, and also closing 15 retail stores.  Secondly, CNBC has reported that PTON insiders sold over $500 million of stock prior to the start of the big decline that started in January 2021.

In other business news, T and VZ turned on their long-hyped 5G networks nationally.  Well, almost nationally.  The companies voluntarily “left off” 5G in 2-mile diameter exclusion zones around the 50 largest airports.  This was due to FAA fears that part of the 5G spectrum could interfere with altimeters used by planes to fly during bad weather.  The FAA has cleared about 45% of the larger passenger and transport aircraft to not be impacted.  However, if it had been turned on around those airports, the FAA estimated there would have been about 1,100 flight cancellations or delays per day.  (TMUS 5G is not impacted because it uses different frequencies than the low-band that T and VZ use.)

On the earnings front, so far this morning AAL, FHN, FITB, KEY, MTB, SNV, and TRV have all beat on both lines.  BKR and RF beat on revenue but missed on earnings.  UNP and NTRS do not report until closer to the open.

Overnight, Asian markets were mixed.  Hong Kong (+3.42%) was a massive outlier to the upside as China cut lending rates.  Oddly enough, mainland China exchanges closed slightly down after the news.  However, Japan (+1.11%) and South Korea (+0.72%) lead the way higher in the rest of Asia.  On the downside, India (-1.01%) was the only appreciable loser with half a dozen other exchanges being just on the red side of flat.  In Europe, stocks are mixed on modest moves as of mid-day.  The FTSE (-0.02%), DAX (+0.15%), and CAC (-0.20%) are typical of the continent.  As of 7:30 am, US Futures are pointing toward a gap higher.  The DIA implies a +0.45% open, the SPY is implying a +0.50% open, and the QQQ implies a +0.84% open at this hour.  10-year bond yields and Oil (WTI) are both down a bit in early trading.

The major economic news scheduled for release Thursday includes Weekly Initial Jobless Claims and Philly Fed Mfg. Index (both at 8:30 am), Dec Existing Home Sales (10 am), and Crude Oil Inventories (11 am).  Major earnings reports scheduled for before the market include: AAL, BKR, FITB, FHN, KEY, MTB, NTRS, RF, SNV, TRV, and UNP.  Then, after the close, CSX, ISRG, NFLX, PPG, and SIVB report.

LTA Scanning Software

The Chinese rate cut overnight was the big news, but earnings and fear of inflation (and Fed reactions to it) are likely to continue to be the main US market drivers. The bulls have not given up, even as the QQQ nears correction territory. However, "mind the gap" as morning optimism is just as likely to be a "gap and crap" as it is a the bottom is in. The bears clearly still have all the momentum so far this week (and year). In short, continue to trade carefully.

Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. And keep in mind that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.)

Ed

Swing Trade Ideas for your consideration and watchlist: EGO, BEKE, SWK, AU, EBAY, UAL, GDX, SAND. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Earnings Lead the Way This Morning

Markets gapped down Tuesday and while the large-caps were more sideways after that, all three major indices closed not too far up off their lows.  This left us with gap-down Black candles to start the week.  On the day, SPY lost 1.76%, DIA lost 1.45%, and QQQ lost 2.49%.  The VXX climbed more than 7.6% to 19.86 and T2122 dropped into the oversold area at 14.15.  10-year bond yields spiked massively to 1.875% and Oil *WTI) soared another 2.41% to $85.85 on middle-eastern and Russia/Ukraine war fears.

Click for video

The big business news on the day was MSFT acquiring ATVI in a $68.7 billion all-cash deal.  MSFT will pay $95/share in the deal, which will make it the number three company in that space.  It also gets ATVI out from under massive clouds around their corporate culture and legal issues around sexual discrimination and harassment suits filed by employees and the State of CA.  Oddly, ATVI spiked as high as $93 in premarket, opened at $86.68, and closed back down to $82.31…which was still up almost 26% on the day.  MSFT closed down 2.43% on the day.

In other business news, PTON hired consulting company McKinsey to “evaluate their cost structures.”  This almost always results in mass layoffs, store closures, and even business offering rationalization.  PTON closed down 3.51% on the day after the announcement.  Elsewhere, for the second time in less than a year, JPM announced it is raising salaries across a broad group of employees in an effort to keep and attract talent.

On the earnings front, so far today UNH, FAST, PG, and CFG have all reported beats on both lines.  BAC, MS, and ASML reported beats on earnings but came in light versus revenue estimates.  However, USB missed on both lines.

Overnight, Asian markets were mostly strongly lower, with a couple of very minor exceptions.  Japan (-2.80%) was an outlier, but New Zealand (-1.58%), Shenzhen (-1.28%), and Australia (-1.03%) were representative of the regional trend.  In Europe, stocks are mixed, but mostly modestly higher at mid-day.  Russia (+4.43%) is an outlier and is snapping back from a terrible Tuesday (war fear). However, the FTSE (+0.27%), DAX (+0.31%), and CAC (+0.70%) are leading most of the region higher in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a modestly green open.  The DIA implies a +0.22% open, the SPY is implying a +0.28% open, and the QQQ implies a +0.31% open at this hour.  Bond yields continue to rise at 1.886% and Oil (WTI) is up another 1.29% in early trading.

The major economic news scheduled for release Wednesday is limited to Dec. Building Permits and Dec. Housing Starts (both at 8:30 am).  Major earnings reports scheduled for before the market include: ASML, BAC, CFG, CMA, FAST, MS, PG, PLD, STT, USB, UNH.  Then, after the close, AA, DFS, FUL, KMI, and UAL report.

LTA Scanning Software

Earnings, inflation, and fear over the acceleration of the Fed's hawkish turn continue to be the major drivers in the market. The question of the day is whether we have found a little support OR the earnings news is just a setup for another "gap and crap." The bears clearly still have all the momentum so far this week (and year). The wild ride in Oil since the beginning of December shows no sign of letup. However, one has to ask whether this is a bull trap as extended as the commodity and the major names are at this point. So, be careful in that space. Keep in mind that even though the direction is bearish, intraday whipsaw volatility remains likely. In short, trade carefully.

Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. And keep in mind that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.)

Ed

Swing Trade Ideas for your consideration and watchlist: BEKE, CECE, SCCO, TECK, EBAY, NEM, AMGN, HSY, RWM, UNG, QID. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Oil Surge and Bank Earnings Continue

Markets gapped down about three-quarters of a percent on Friday.  However, after the open, all 3 major indices oscillated on the day with the SPY and QQQ ending up back above the gap in positive territory.  This left us with large gap-down white candles in the SPY and QQQ and a gap-down white Spinning Top candle in the DIA.  On the day, SPY gained 0.04%, QQQ gained 0.62%, and DIA lost 0.57%.  The VXX fell a bit to 18.45 and T2122 also dropped a bit but remained in the mid-range at 46.65.  10-year bond yields spiked to 1.793% and Oil (WTI) rose to $83.82/barrel.

Click for video

Earnings season is continuing to get into high gear.  This morning, BK, SBNY, and TFC all beat on both lines.  PNC beat on earnings but missed slightly on revenue.  However, the big news was that GS posted a massive miss on earnings, even with a huge beat on revenue. SCHW doesn’t report until after 8:30 am.

On Sunday Reuters reported that the oil market continues its recent tremendous rally as three factors have come into play.  First, outages (and threatened outages) from such places as Oman, UAE, and Russia’s far-east as well as fears of outages in politically torn Kazakhstan forced buyers to look elsewhere, driving up the price of supplies from the west.  Secondly, the impact of the omicron variant had been over-estimated by market participants, meaning demand remained more robust than was expected in December.  Finally, US and Canadian inventories have fallen to the lowest level since October 2018 (as a result of number two).  All of which have added buying pressure to western Oil markets.  In the last week, large integrated oil and gas names have spiked.  Among the winners on the week were BP (+7.99%), PBR (+14.53%), XOM (+4.34%), CVX (+3.14%), and RDS.A (+5.88%). 

The PBOC (Chinese Central Bank) released data overnight that showed the country’s “Digital Yuan” (cryptocurrency) added 261 million users in the last 6 months of 2021.  However, the total transactions over those 6 months were only worth about $8.3 trillion. As a reference, the country’s Alipay (phone-based payment system) accounted for almost $1.6 trillion in transactions during that same period.  You will need to decide for yourself whether this is good or bad news for crypto names.

Overnight, Asian markets were mostly lower.  India (-1.07%), Thailand (-0.99%), and South Korea (-0.89%) paced the losses.  Only Shanghai (+0.80%) and Shenzhen (+0.19%) showed green.  In Europe, markets are red across the board at mid-day.  The FTSE (-0.59%), DAX (-1.01%), and CAC (-1.03%) are typical of early afternoon trading in the region.  However, Russia (-4.70%) is a massive outlier to the downside (perhaps on tensions related to Ukraine and specifically gas and oil flows to Europe).  As of 7:30 am, US Futures are pointing toward a red start to the week.  The DIA is implying a -0.70% open, the SPY implies a -1.04% open, and the QQQ implies a -1.64% open at this hour.  10-year bond yields are also spiking to 1.818% and Oil (WTI)is up another 1.46% in early trading.

The major economic news scheduled for release Tuesday is limited to NY Fed Empire State Mfg. Index (8:30 am).  However, earnings season is back in gear with pre-market reports from BK, GS, PNC, SBNY, SCHW, and TFC.  Then, after the close, CNCX, IBKR, and JBHT report.

LTA Scanning Software

The Fed's hawkish turn continues to spook markets and huge increases in energy prices weigh on general business and market sentiment. It looks like we are headed to test the recent lows again this morning. So, the bears clearly have the momentum in what is shaping up to be a rough January. Expect the rotation toward safety to continue with Oil and mega-cap non-cyclical names faring best. Keep in mind that even though the direction is bearish, intraday whipsaw volatility remains likely. In short, trade carefully.

Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. And keep in mind that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.)

Ed

Swing Trade Ideas for your consideration and watchlist: SQQQ, SPXU, XOM, BTU, CG, ILMN, TGT, F, AMAT. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Earnings Season Kicks Into Gear Again

Markets made a small gap higher on slightly better than expected PPI results.  However, after a short grind sideways, that was all she wrote for the bulls in the SPY and QQQ.  The DIA held out until noon, but then it too started selling off.  All 3 major indices closed near their lows of the day and failed their T-line tests.  In addition, if you can look past the DIA having a long lower ick on the first candle, all 3 finished printing Evening Star signals Thursday.  On the day, SPY lost 1.38%, DIA lost 0.48%, and QQQ lost 2.50%.  The VXX gained over 6% to 18.74 and T2122 dropped back into its mid-range at 54.81.  10-year bond yields fell to 1.701% and Oil (WTI) dropped a bit over a percent to $81.70/barrel.

Click for video

During the day, another FOMC voter called for a rate hike in March.  This makes 5 voting members which have publicly made a call for a rate hike at that meeting.  In addition, after the close, Philly Fed President Harker told CNBC that he does not know if 3 rate hikes in 2022 will be enough. He said that he personally sees 3 or 4 needed, in addition to other Fed tightening measures.

After the close, the Supreme Court blocked the Biden Administration’s “vaccine or test” requirement for large private employers.  The reversal impacts 84 million employees of private companies with more than 100 employees.  However, the court left the vaccine mandate for healthcare workers (in any facility that accepts Medicare or Medicaid).  This does not change company-mandated testing or vaccination such as required by the major banks (GS, MS, BAC, JPM, etc.). 

Earnings season kicks into high gear again this morning with the big banks.  So far, C, JPM, WFC, and regional bank FRC all beat on both lines.  BLK beat on earnings but came in a little light on revenue. 

Overnight, Asian markets were mostly in the red.  South Korea (-1.36%), Japan (-1.28%), and Australia (-1.08%) led the way lower.  In Europe, markets are down on every exchange except Norway at mid-day.  The FTSE (-0.16%) is hanging on better, but the DAX (-0.73%) and CAC (-0.79%) are typical of the continent in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly down open with a lot of data to come this morning.  The DIA implies a -0.18% open, the SPY is implying a -0.21% open, and the QQQ implies a -0.34% open at this hour.  10-year bond yields have spiked back up to 1.74% and Oil (WTI) is up three-quarters of a percent in early trading.

The major economic news scheduled for release Friday includes Dec. Retail Sales and Dec. Import/Export Price Index (both at 8:30 am), Dec. Industrial Production (9:15 am), Nov. Business Inventories and Michigan Consumer Sentiment (both at 10 am), and a Fed speaker (Williams at 11 am).  However, earnings season gets going again with pre-market reports from BLK, C, FRC, JPM, and WFC.  There are no major reports scheduled for after the close.

LTA Scanning Software

The hawkish sentiments expressed by Fed members the last few days have world markets worried.  With lower highs confirmed in all 3 major indices Thursday, the trend is to the downside now and all 3 have also failed their T-line. For the swing trader, this puts us in a bearish market at least short-term. The fact that the mega-cap DIA is the strongest of the indices tells us that money is seeking safety and continues to rotate out of high-growth/high-volatility names. Keep in mind that whipsaw volatility remains likely at least intraday and that bear moves tend to be faster than bullish ones. In short, be careful of long positions, unless they are in inverse names.

Remember this is Friday and we have a long holiday weekend since US markets are closed Monday in celebration of Martin Luther King Day. Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor. And keep in mind that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.)

Ed

Swing Trade Ideas for your consideration and watchlist: VXX, COST, FSLY, PANW, NVDA, PENN, PLTR, SNAP, GMA. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

PPI Data is On Deck Today

Markets shrugged off the CPI data and gapped higher at the open as the bull desperately tried to follow through on the prior two up days. However, after the gap, we saw whipsaw action that ended near where it opened.  This gave us indecisive black Doji-type candles sitting at or just above the T-line in all 3 major indices.  (Not what I would call clearly breaking any T-line resistance.) On the day, SPY gained 0.31%, DIA gained 0.16%, and QQQ gained 0.44%.  The VXX fell a percent to 17.63 and T2122 remains in the overbought territory at 82.13.  10-year bond yields fell to 1.739% and Oil (WTI) jumped another 1.91% to $82.78/barrel.

Click for video

As mentioned, before the open the December Consumer Price Index (CPI) data was released.  It came in a +7.0%, which was right in line with consensus forecasts and was the highest since 1982.  However, the last couple of days talking-heads on the various financial media outlets had been preparing traders for an even higher print.  So, apparently, the market took “in-line, at many-decade highs” as good news.  Later in the morning, crude oil inventories came in down significantly more than expected (-4.55million barrels vs -1.9million barrels est.), which was at least part of the reason for Oil price spikes on the day.

In a follow-up to last year’s Texas electricity crisis, Bloomberg reports there still appear to be problems.  At the start of the year (starting January 2), a cold snap caused the state to lose over 1.3 gigawatts of electric generation.  The losses were related to cold and specifically to their natural gas-fueled power plants.  This lost capacity caused short-term blackouts in areas of the state as the peak demand exceeded capacity by 2.4%.  Since Texas is not connected to the national electrical grids, the state is unable to pull the needed shortfall from other regions of the country. 

Overnight, Asian markets were mixed again.  Shenzhen (-1.96%), Shanghai (-1.17%), and Japan (-0.96%) were the main losses.  Meanwhile, the rest of the region was green, but only on modest moves.  In Europe, stocks are leaning to the downside on modest moves (with the exception of Russia (-2.25%) at mid-day.  The FTSE (-0.06%), DAX (-0.02%), and CAC (-0.61%) lead the region lower, but half a dozen of the smaller exchanges are green by half of a percent or less in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA implies a +0.12% open, the SPY is implying a +0.06% open, and the QQQ implies a +0.06% open at this hour. 10-year bond yields are moving higher again to 1.746% and Oil (WTI) is down slightly in early trading.

The major economic news scheduled for release Thursday is limited to Dec. PPI and Weekly Initial Jobless Claims (both at 8:30 am).  However, there is also a Fed speaker (Brainard testifies before her nomination hearing for the Fed Vice-Chair position at 10 am).  The major earnings reports scheduled for before the market is limited to TSM and DAL.  There are no major reports scheduled for after the close.

LTA Scanning Software

Markets seemed unphased by the CPI data, but indecision quickly set in. All 3 major indices are struggling to break through and free of their T-line as traders contemplate the next move. However, the rotation out of growth and toward value (as well as names with pricing power) sure looks like a longer-term trend as inflation will be the underlying driver of markets for the foreseeable future. Remember that whipsaw action has been the norm. So, don't take positions unless you can handle at least short-term pain.

The first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.) Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: BUD, TX, CAT, MDLZ, KO, XP, T. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

CPI Data Likely to Call the Tune Today

Markets opened down very slightly on Tuesday and meandered around in lower territory until 11 am.  From that point, all 3 major indices sallied hard (especially in the QQQ) for an hour.  After 12 pm, all 3 then drifted bullishly, closing near the highs.  This left strong white candles that followed through on Monday’s intraday rally, but have yet to test their T-lines (8ema).  On the day, SPY gained 0.91%, DIA gained 0.49%, and QQQ gained 1.50% as the rotation out of tech reversed on the day.  The VXX fell 3.5% to 17.82 and T2122 spiked up into the overbought territory at 87.92.  10-year bond yields fell to 1.742% and Oil (WTI) spiked 4.15% to $81.48/barrel.

Click for video

During the day, Fed Chair Powell spoke to the Senate in hearings on his renomination.  He told the Senators that the economy is healthy enough and needs a tighter monetary policy to control inflation and that the Fed will tackle the problem.  While he avoided any specifics on actions or timing, he did say that this will include the end of Bond Purchases, interest rate hikes, and a significant reduction in the Fed Balance Sheet (selling bonds and mortgage-backed assets). Powell also explained that there were two key factors that caused the Fed to be wrong about inflation.  First, he said the Fed expected supply chain issues to be resolved SUBSTANTIALLY faster than they have been.  Second, he said the Fed expected a much quicker and more significant return of the workforce (reducing wage pressure) than materialized with the “great retirement.”  While his testimony on inflation was not new, markets did take heart from the session and stocks rallied

Just before the close, a Federal District Judge granted the FTC a second chance to file suit against FB.  FTC Commissioner Khan is expected to refile the suit alleging that FB engaged in illegal monopolistic activity.  FB did not have time to react during the day on Tuesday, but after hours the stock is pulling back.

C announced Tuesday afternoon that it is exiting retail and small business banking in Mexico. This is the latest move in the company’s shift toward focusing on operations centered around global wealth centers.  There are several “potential” candidates to purchase the C Mexican operation, but none are listed in the US.  The C Mexican banking operations accounted for $3.5 billion in revenue and $44 billion in assets during the first 9 months of 2021 and the company was Mexico’s third-largest bank. 

Overnight, Asian markets were mixed green across the board with the lone exception of Malaysia (-0.07%).  Hong Kong (+2.79%), Japan (+1.92%), and South Korea (+1.54%) led the gainers.  In Europe, markets lean heavily to the green side with only two smaller exchanges in the red at mid-day.  The FTSE (+0.55%), DAX (+0.18%), and CAC (+0.43%) lead the way in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a flat open ahead of the CPI data.  The DIA implies a +0.08% open, the SPY is implying a +0.08% open, and the QQQ implies a +0.16% open at this hour.  10-year bond yields are flat and Oil (WTI) is up half of a percent in early trading as we wait on the CPI data.

The major economic news scheduled for release Wednesday includes Dec. CPI (8:30 am), Crude Oil Inventories (10:30 am), the WASDE report (noon), Fed Beige Book (2 pm), and Dec. Federal Budget Balance (2 pm).  However, there are also 2 Fed speakers (Brainard at 10 am and Kashkari at 1 pm).  The major earnings reports scheduled for before the market is limited to INFY, JEF, and WIT.  Then after the close, KBH reports.

LTA Scanning Software

Markets seem to be waiting on the CPI data this morning before traders decide how to move next. With T-line resistance tests in all 3 major indices in the immediate future, keep an eye on the markets before you chase individual tickers. Yes, we have had two white candles. However, this is not how uptrends are measured. So, be careful of getting caught in the "buy the dip" rush. Also, remember that intraday whipsaw (like Monday's massive reversal) continues to be the norm lately.

Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.) Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: ITUB, BABA, WFG, TME, AA, BWA, T, APA. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Bulls Look to Follow-Up Dimon Reversal

Monday was certainly a wild ride.  Markets gapped down (0.8% in the SPY, 0.36% in the DIA, and 1.4% in the QQQ) and proceeded to follow through, selling off to the lows by 11 am.  However, from that point, stocks rallied hard in a wildly whipsaw-like rally that ended the day on the highs.  This left us a white hammer in the SPY, a black hammer in the DIA, and a large-body white candle with a long lower wick in the QQQ.  On the day, SPY lost 0.12%, DIA lost 0.45%, and QQQ gained 0.07%.  It should be noted that the QQQ was down nearly 3% before its torrid intraday rally.  The VXX was down almost 2% to 18.47 and T2122 fell to 38.15 (still in the mid-range).  10-year bond yields fell just a bit to 1.759% and Oil (WTI) was down two-thirds of a percent to $778.40/barrel.

Click for video

During the day, two different major banks came out saying they expect at least 4 rate hikes by the Fed this year.  Before the bell, GS said they are now forecasting 4 rate hikes in 2022.  Later in the day, Jamie Dimon of JPM said he expects “the best growth in decades,” a “soft landing” on inflation, and is very bullish.  (Whether coincidence or not, this is when the market started its intraday rally.)  However, he also said he would not be surprised if the Fed went further than 4 hikes.  In fact, he said he would be surprised if it was only 4 rates hikes in 2022. Of course, we have to temper his words by the fact the Fed has projected that it will do 3 rate hikes this year…and big banks do best during periods of rising interest rates (so he could be “talking his book”).

After the close Monday, Fed Vice-Chair Richard Clarida announced he will be stepping down as of this Friday. The surprise move comes with his term expiring in a few weeks on January 31.  The move seems to stem from scrutiny over Clarida’s trading done in February 2020 just as the Fed was preparing to roll out its unprecedented array of rate cuts, QE, and lending facilities that caused markets to go on one of the strongest rallies in history starting in late March 2020.  Clarida has always maintained that the trades were part of a “long-planned portfolio rebalancing” and were not related in any way to Fed plans.

In what is likely to be a global trend, China has taken the next step with its digital currency (e-CNY).  The country has already gotten all leading Chinese mobile payment and e-commerce companies like BABA, TME, WeChat, and Alipay onboard.  However, now the regional tests (10 major cities) have now been rolled out nationally.  The PBOC (Central Bank) announced Monday that it will also be pushing the “digital Yuan” at this year’s Olympics in an effort to gauge global interest and speed broader adoption.  While the US and other countries are far behind China in the move toward a block-chain digital currency (complete government visibility of all transactions), the trend is clear around the world, including the US

Overnight, Asian markets were mixed again.  Shenzhen (-1.27%), Japan (-0.90%), and Australia (-0.77%) paced the losses.  Meanwhile, Malaysia (+0.91%), Thailand (+0.61%), and Singapore (+0.60%) led the gainers.  In Europe, markets are green across the board at mid-day.  The FTSE (+0.67%), DAX (+1.12%), and CAC (+1.33%) are fairly typical of the spread across the region.  As of 7:30 am, US Futures are pointing toward a mixed green open.  The DIA implies a +0.17% open, the SPY is implying a +0.31% open, and the QQQ implies a +0.49% open at this hour as rotation back toward tech (growth) seems to be back in play.  10-year bond yields are down a bit to 1.762% and Oil (WTI) is up almost 1.5%.

There is no major economic news scheduled for release Tuesday.  However, there are 3 Fed speakers (Mester at 9 am, George at 9:30 am, and Chair Powell faces his re-nomination testimony at 10 am).  The major earnings reports scheduled for before the market is limited to ACI and SNX.  There are no major reports scheduled for after the close.

LTA Scanning Software

The market seems to be trying to follow through this morning on what may have been a "Dimon's outlook rally" yesterday. However, keep in mind that all 3 major indices are still in a downtrend and none of them have tested (let alone broken through) their T-lines yet. So, be careful of getting caught in the "buy the dip" rush. The bears still have the trend and overall momentum. Also, remember that intraday whipsaw (like Monday's massive reversal) has been the norm lately.

Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.) Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: TREE, ABBV, DVN, TRIP, GSK, BMY, 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Bear Looking to Keep The Momentum

Markets opened flat on Friday.  However, the SPY and QQQ proceeded to sell off until 11 am.  During this time the DIA simply meandered sideways.  From 11-noon, all 3 indices rallied and then ground sideways until about 3:15 pm.  All 3 then sold off the last 45 minutes of the day.  This left indecisive candles in all 3 indices with a white Doji in the DIA, a black Spinning Top in the SPY, and a black candle with good-sized wicks on both ends in the QQQ.  On the day, SPY lost 0.40%, DIA lost 0.02%, and QQQ lost 1.08%.  VXX lost almost 3% to 18.82 and T2122 remained in the mid-range at 61.99.  10-year bond yields rose sharply again to 1.767% and Oil (WTI) lost seven-tenths of a percent to $78.90/barrel.  For the first week of the year, SPY was down 1.87%, DIA was down just 0.28%, but the rotation was obvious as the QQQ was down 4.52%.

Click for video

During premarket Friday there was some conflicting data.  December Nonfarm Payrolls came in a +199k, which was less than half of what was expected.  (Oddly, the ADP Dec. Nonfarm Payrolls had come in a +807k, versus the same +400k expected just two days prior.) However, the Dec. Unemployment rate fell to 3.9% (versus 4.1% expected) while the Participation rate remained steady.  So, markets were left with either “which data do you believe?” or “None of the data is good” as their options.

During the day Friday, C followed up on its October announcement that vaccination is a condition of employment.  It sent a memo to all employees saying that if they had not proven they have been vaccinated by next week they will be put on unpaid leave and will be terminated as of January 31.  CNBC reports that about 90% of the workforce at C has already submitted proof of vaccination, but that still leaves 22,000 employees at risk of termination, which could have an impact on bank operations.  So far, the other major banks (JPM, BAC, WFC, GS, and MS) have not gone as far as terminating their non-compliant staff.

Friday gave us some very odd food inflation data.  Despite widespread food inflation and news of high food prices, fertilizer prices had a wild week, especially on Friday.  After the price of urea (nitrogen) had swung at least $100/short ton each day of the week, Friday saw fertilizer prices fall 12% (most since 2009).  This massive fall in price is unexplained and comes despite the fact very little of that commodity was available at the discounted price.  (US production is sold out, there are production plant closures across Europe due to a lack of natural gas, China still not willing or able to export until at least May, and the Middle East essentially sold out with production already sold through the end of February.)  Yet the prices fell 12% on a single day.

Overnight, Asian markets were mixed.  Hong Kong (+1.08%) and India (+1.07%) led the gainers while South Korea (-0.95%) was the only red ticker that was not nearly flat.  In Europe, stocks are strongly in the red, with only a couple of minor exchanges showing green at mid-day.  The FTSE (-0.12%), DAX (-0.39%), and CAC (-0.54%) are typical of the region in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a down open.  The DIA implies a -0.13% open, the SPY is implying a -0.31% open, and the QQQ implies a -0.67% open as it appears both the rotation and pullback will remain in place at least early Monday.  10-year bond yields are up very slightly and Oil (WTI) is down two-thirds of a percent in early trading.

There is no major economic news scheduled for release Monday.  The only major earnings report scheduled for before the market is CMC.  There are no major reports scheduled for after the close.

LTA Scanning Software

The bears seem to have maintained the momentum over the weekend as premarket prices are sitting at the lows across the board. Be very careful with long positions and remember that hedging and waiting are both valid ways to reduce risk. However, also remember that intraday whipsaw has been the norm lately, especially in large-cap spaces.

Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.) Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: JNJ, CTRA, CVS, FCX, DG, TNA, MMC, GME, SKIN. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

Payrolls and Overnight Asian Chip News

Stocks put in a roller-coaster day that ended indecisively in the SPY and QQQ.  DIA was also volatile but ended the day down more than the others.  This left us with a long-legged Doji in the SPY, a Spinning Top candle in the QQQ, and a black candle in the DIA.  On the day, SPY lost 0.09%, QQQ, lost 0.07%, and DIA lost 0.47%.  The VXX rose slightly to 19.38 and T2122 rose to mid-range at 47.26.  10-year bond yields came back down after being over 1.75% during the morning to close at 1.723% and Oil (WTI) spiked to $79.58/barrel.

Click for video

After the close, CNBC reported that hedge funds are dumping tech stocks (growth stocks) at a massive pace so far in 2022.  They claimed it was the largest rotation by the big money funds in a decade.  This is also obvious on the chart as the QQQ is down 5% so far this year.

Meanwhile, two Asian chipmakers reported strong quarterly updates overnight.  Samsung and STMicro both reported blowout numbers with Samsung saying that its operating profit will be up 52% while STMicro reported its full-year came in +25% sales from the previous year.  Both commented on the strong demand for contract manufacturing services (where they make chips for other brands such as INTC, AMD, NVDA, QCOM, AVGO, and many other tech companies).  However, they also directly compete with some of those as well as TSM, MU, TI, and others. European chip stocks are spiking on the read-through.  We may see the same later with the US chipmaker stocks.

Overnight, Asian markets were mixed again, but leaned heavily to the upside today.  Hong Kong (+1.82%), Australia (+1.29%), and South Korea (+1.18%) led the way higher.  Taiwan (-1.08%) was a big outlier to the downside with the 4 other red exchanges all being not far below flat.  In Europe, markets are mixed at mid-day.  The FTSE (-0.09%), DAX (-0.40%), and CAC (-0.24%) are all trading lower.  However, most of the smaller exchanges are on the upside in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a mixed and modest open.  The DIA implies a -0.01% open, the SPY is implying a +0.14% open, and the QQQ implies a +0.25% open (on read-through from those Asian chipmaker reports).  10-year bond yields are flat (but expect volatility when the Payrolls number hits) and Oil (WTI) is up almost another percent to $80.10/barrel in early trading.

The major economic news scheduled for release Friday includes Dec. Avg. Hourly Earnings, Dec. Nonfarm Payrolls, Dec. Participation Rate, and Dec. Unemployment Rate (all at 8:30 am).  The major earnings reports scheduled for before the market is limited to GBX.  There are no major reports scheduled for after the close.

LTA Scanning Software

Expect movement this morning, especially in the Treasury market and on inflation-sensitive names. If the ADP Nonfarm Payrolls number (more than twice as big of a gain than expected) is any indication of the official Payrolls report at 8:30 am, we could see fear of an overheating in the economy. (For reference, ADP came in a +807k vs +400k est. and the consensus forecast for the official number today is also +400k.) The point is, don't be surprised by a big premarket reaction, which may well lead to either follow-through or a snapback after traders have had a chance to digest the news.

Volatility is the watchword now as markets are not quite sure whether it is time for a downtrend or at least a pullback. Remember that the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, don't be stubborn. When you're wrong, just admit it and take your loss. (That's why we set stops.) Stick to your trading rules and on managing the things you can control. Don't chase, trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: IGT, APTV, FFIE, BTU, F, FE, GM, TGT. 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.

TC2000 Discount

🎯 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 PlansPrivate 2-Hour Coaching

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

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