Budget-Debt Limit Fight and China Crypto Statement

Markets gapped higher at the open Thursday and then followed through strongly the first half-hour of the day.  Then we saw a very slow, steady rally into 2 pm before doing a very slow, steady selloff into the close.  This left us with strong, white, gap-up candles that left an upper wick in all 3 major indices.  On the day, SPY gained 1.21%, DIA gained 1.48%, and QQQ gained 0.92%.  The VXX fell over 6% to 25.37 and T2122 rose to just outside the overbought territory at 76.21.  10-year bond yields spiked to 1.427% and Oil (WTI) rose 1.4% to $73.24 even though the Dollar fell on the day.

During the day, the White House began alerting federal agencies to prepare for a government shutdown next Thursday night.  Democrats are scrambling to move ahead with a bill that links the budget (government shutdown) with increasing the debt ceiling (the next crisis).  Bloomberg reports that House Speaker Pelosi and Senate Majority Leader Schumer are now pointing to a showdown vote on Saturday.  If the vote fails, we can expect more machinations next week and a probable shutdown next Friday.  To this point, these issues have been ignored by markets, but with the weekend news cycle ahead, Fed meeting behind, and events drawing nearer, today may be a new story. 

After the close, the CDC endorsed the use of PFE booster shots for older and at-risk patients.  TRIP reported a missed on both lines last evening.  Meanwhile, NKE reported a miss on revenue, but COST managed a beat on both lines.  NKE is down 5% in premarket even as TRIP is down half of a percent and COST is up six-tenths of a percent this morning.

Overnight, Bitcoin and other major cryptocurrencies fell by more than 5%.  Ethereum, the second-largest crypto fell more than 8%. The moves come after China’s Central Bank posted a Q&A on its website that said all crypto-related activities are illegal and that there would be a harsh crackdown on that entire market.  This is not China's first attack on the alternate currencies, but adding to the earlier moves against crypto mining along with the country's trials of their own digital currency last year, some analysts believe this is the start of their move to force the use of only government-transparent digital currencies. This is a move likely to be followed by all major powers as governments do not want to give up control of and visibility to at least as much of all transactions as they have now. In other foreign political news, polls say Germany is poised to see a new ruling party after elections on Sunday. (The current CDU has been in power since 2005.)

Overnight, Asian markets were mixed.  Japan (+2.06%) and Taiwan (+1.07%) stood out on the upside while Hong Kong (-1.30%) and Shanghai (-0.81%) stood out to the downside.  In Europe, stocks are red across the board at mid-day. The FTSE (-0.20%), DAX (-0.72%), and CAC (-0.94%) are representative.  However, the much smaller exchanges are feeling the hit much harder.  Greece (-2.28%), Norway (-1.89%), and Finland (-1.56%) lead the pain parade in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap-down at the bell.  The DIA is implying a -0.38% open, the SPY implying a -0.50% open, and the QQQ implying a -0.67% open at this hour.  The Dollar is rebounding this morning as 10-year bond yields are at 1.417% and Oil (WTI) is down a third of a percent in early trading.

The major economic news scheduled for release on Friday is limited to August New Home Sales (10 am) and a trio of Fed speakers (Chairman Powell, Bowman, and Clarida all at 10 am).  The major earnings reports scheduled for the day are limited to CCL before the open.  There are no earnings reports scheduled for after the close.

A volatile week that started with a sizeable Evergrande gap-down and has proceeded with a whipsaw-filled recovery of that gap is now about to wind down. With more Fed speakers seeking to soothe markets on tap for today, but the prospect of a showdown vote over a government shutdown and debt ceiling coming this weekend...do not be surprised if we see a Mr. Market be manic again today. The short-term trend is now bullish, but we have yet to take out the downtrend that goes back to the beginning of the month, at least in the SPY and QQQ. So, the bulls still have serious work ahead if they want to overcome the pullback's technical damage.

Manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Remember that it's discipline and good trading rules that separate trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers. Finally, it is Friday, so consider how you want your account sitting Monday morning, and don't forget to pay yourself.

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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Traders Digest Fed as Bulls Try to Rally

Markets gapped four to six-tenths of a percent higher Wednesday as fears over the Chinese Evergrande debt crisis faded.  The bulls followed though all morning and then volatility set in during the afternoon after the Fed announcement and press conference.  This left us with gap-up indecisive Spinning Top candles in all 3 major indices.  On the day, SPY closed up 0.98%, DIA gained 0.99%, and QQQ gained 0.93%.  The VXX fell over 6% to 27.06 and T2122 rose a bit but remains in the mid-range at 68.70. 10-year bond yields fell to 1.307% and Oil (WTI) gained 2% to $71.95/barrel.

The FOMC held rates near zero as expected Wednesday afternoon.  Fed Chair Powell also said that the tapering of asset buying will come soon, which most analysts expect to mean the taper will start in November following an October announcement.  During questions, Powell implied the taper (any purchases) would come to an end in mid-2022.  The Fed now forecasts 5.9% GDP growth for the year (down from a 7% forecast in June) and 3.8% in 2022 (versus the June 3.3% estimate).  They expect inflation of 3.7% for the year (versus 3% previous estimate) and 2.3% for 2022 (compared to the June estimate of 2.1%). Powell also told reporters that the Fed is considering “whether to issue” their own cryptocurrency (and perhaps in a more telling follow-up answer “in what form that may be”). 

After the close, FB announced its Chief Technology Officer is stepping down.  In other evening news, Auto Industry consulting firm AlixPartners has raised its forecast of lost vehicle sales due to the global chip shortage.  The firm now estimates 7.7 million units of lost production for 2021 (up from 3.9 million in their May forecast), which would amount to $210 billion in lost revenue for the industry.  This will primarily be felt by US giants GM, F, and FCAU (Fiat, Chrysler, Dodge, and Jeep), because the Japanese auto industry had a normal practice of holding a year’s worth of supply inventory in their supply chain.  Now that the inventory has been used up, Japanese auto firms are hurting as well, but they postponed their pain far longer than US automakers.

The FDC is set to vote on PFE booster shots for “older and at-risk patients” today. In the meantime, Covid-19 surpassed the 1918 Spanish Flu as the deadliest pandemic in US history on Monday.  As of yesterday, the US has seen 43.4 million total cases and 699,748 total deaths in the country.  Meanwhile, the averages 130,121 new cases and 1,678 new deaths per day across America.  In related news, yesterday the President announced the US will buy another 500 million doses of the PFE vaccine to donate to poorer nations, raising the total US donation commitment to 1.1 billion doses.

Overnight, Asian markets were mostly higher as China pumped $17 billion of liquidity into their banking system and told local governments to “prepare for a storm and be ready to step-in (if needed) at the last minute” to prevent spill-over events from the Evergrande defaults.  Japan (-0.67%) and South Korea (-0.41%) were the only red in the region today.  India (+1.57%), Hong Kong (+1.19%), and Australia (+1.00%) were the leaders to the upside.  In Europe, markets are green across the board at mid-day. The FTSE (+0.05%) is the laggard after British PM Johnson failed to get the trade deal he had been promising prior to and shortly after Brexit.  However, the DAX (+0.76%) and CAC (+0.85%) are typical of the region, even though some of the smaller exchanges are up almost 1.5% in early afternoon trading.  As of 7:30 am, US Futures are pointing toward another gap higher.  The DIA is implying a +0.47% open, the SPY implying a +0.52% open, and the QQQ implying a +0.54% open.  10-year bond yields are flat with Oil down three-quarters of a percent even as the Dollar is down sharply in early trading.

The major economic news scheduled for release on Thursday is limited to Weekly Jobless Claims (8:30 am), Mfg. PMI and Services PMI (both at 9:45 am).  The major earnings scheduled for the day include CAN, DRI, and RAD before the open.  Then after the close, AIR, COST, NKE, and TCOM report.

As markets digest (second-guess) the Fed results and afternoon reaction and fear over the Chinese debt default from Evergrande fades, US stocks are looking to rally at the open again. The question is whether the overhead resistance created on the recent pullback will hold or if the bulls will have their way. Either way, volatility remains elevated, the short-term trend remains bearish, and the next news story will be the success or failure of both the US Debt Ceiling raise and passing a budget to allow continuing government operations after September. It now appears any bipartisan efforts have failed, which leaves open the question of whether Democrats can come together enough to ram-through one-party solutions to those problems.

Remember, the trend is your friend until it ends. Right now, that trend remains bearish with a lot of volatility. So, manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: PLUG, FCEL, BB, NET, PLTR. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Evergrande Fear Fades As We Wait on Fed

Markets gapped about six-tenths of a percent higher at the open Tuesday as markets tried to recover from the ugly Monday session.  However, volatility continued to reign as prices swung in waves all day.  Unfortunately for bulls, the last two major waves of the day were to the downside.  This left us with black-body candles with upper wicks that went out on or near the lows in all 3 major indices.  On the day, SPY lost 0.10%, DIA lost 0.09%, and QQQ gained 0.12%.  The VXX fell to 28.70 and T2122 popped back out of the oversold territory to 28.37.  10-year bond yields rose to 1.323% and Oil (WTI) rose slightly to $70.51/barrel.

After the close, a US government agency, headed by Attorney General Garland, reported it will be "reviewing" the proposed ZM acquisition of FIVN (announced in July). In the announcement, the agency pointed to foreign participation (ZM has R&D operations in China and FIVN has operations in Russia). 

Elsewhere after hours, FDX shares fell as the company missed on earnings and cut its Q4 profit forecast as cost increases are expected to outpace their recently announced price increase.  In addition, DIS shares fell hard when CEO Chapek told a GS event that his company believes the Delta variant will cause Q4 subscription growth to come in below previous estimates.  On the other side, SFIX shares jumped after the company unexpectedly reported a profit while beating on both lines.  ADBE also rose after beating on both lines.

Following very strong Housing starts data yesterday, this morning's weekly mortgage demand spiked to the highest level since April.  Analysts say this points to strong home sales for September.  The average 30-year fixed, conforming loan rate remains at 3.03%. However, new purchase loan applications rose 2%, but refinance applications climbed 7% week-on-week.  While mortgage demand remains below the same week a year ago, the gap is narrowing.

Overnight, Asian markets were mostly modestly lower.  An IMF spokesman said they do not expect the Evergrande crisis to be a “Chinese Lehman Brothers moment.” She said the differences include the company owning physical assets (properties) and the Chinese government has much stronger controls over their financial markets and is in a better fiscal position to simply take ownership of the debt and assets if needed than the US/West did in 2008.  Taiwan (-2.03%) was the outlier because after a drop at the open, Shanghai (+0.40%) recovered fully and both Shenzhen (-0.57%) and Japan (-0.67%) made significant comebacks.  In Europe, markets are up significantly at mid-day, bouncing as they have seen a lack of panic in Chinese markets.  The FTSE (+1.15%), DAX (+0.55%), and CAC (+1.11%) are typical of the region in early afternoon trading.  As of 7:30 am, US Futures are also pointing to another up open.  The DIA is implying a +0.58% open, the SPY implying a +0.51% open, and QQQ implying a +0.30% open.

The major economic news scheduled for release on Wednesday includes August Existing Home Sales (10 am), Crude Oil Inventories (10:30 am), and Fed Interest Rate Projections, Fed Interest Rate Decision, and FOMC statement (all at 2 pm), and the Fed Chair presser (2:30 pm).  The major earnings scheduled for the day include GIS before the open.  Then after the close, FUL, KBH, and SCS report.

With the rest of the world rebounding as the Evergrande debt crisis in China did not look so scary today, US markets are likely to wait and see what the Fed does/says before making big bets. The ugly day Monday and volatility then and Tuesday should give us pause about any further pullback or reversal into rally mode. We have resistance overhead and some support below. So, consider how much confirmation you want before blindly chasing an intraday trend.

Remember, you don't have to trade every day. Activity does not equal progress. And when you do trade, the Trend is your friend. Right now, that trend remains bearish with a lot of volatility. So, manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Bulls Look to Rebound From Evergrande

Stop me if you’ve heard this one before.  So, China caught a virus and the US got sick.  Ba-dum-dum.  In this case, China's virus is the Evergrande fund's $300 billion loan default, and "the US" refers to US markets. At any rate, US markets started the week with a big gap down and then put in a wide-ranging, indecisive Spinning Top candle day in all 3 major indices.  On the day, SPY lost 1.66%, DIA lost 1.80%, and QQQ lost 2.17%.  That made Monday the worst day since May.  However, for context, it’s important to remember that we are still just 4-6% off the all-time high in the various indices.  The VXX rose almost 11% to 29.74 and T2122 dropped deep into the oversold territory at 3.54.  10-year bond yields fell to 1.311% and Oil (WTI) dropped 1.56% to $70.85/barrel.

Afterhours, RDS.A announced a deal to sell the entirety of its Permian Basin assets (operations and drilling rights) to COP.  The deal was for $9.5 billion and includes current production of 175,000 barrels per day.  This deal ends Shell’s US onshore production operations, but RDS.A will continue to operate their production offshore from Texas. 

On Monday, Covid-19 surpassed the 1918 Spanish Flu as the deadliest pandemic in US history.  There have been 43.1 million total cases and 694,619 total deaths in the country.  Meanwhile, the averages 133,979 new cases and 1,623 new deaths per day across America.  In related news, this morning JNJ (whose top vaccine selling point was a single dose) says that the vaccine is 94% effective when a booster dose is given two months after the original dose.

Overnight, Asian markets were mixed, but mostly green.  Japan (-2.17%) was a huge e outlier as fear from the Evergrande debt crisis impacting Japanese firms gripped the Nikkei.  However, the region's few other losses were very minor.  Meanwhile, India (+0.95%), Thailand (+0.74%), Shenzhen (+0.71%), and Singapore (+0.71%) led the gainers.  In Europe, we see green across the board at mid-day.  The FTSE (+1.14%), DAX (+1.53%), and CAC (+1.37%) are typical as the continent rebounds from the initial Evergrande shock.  As of 7:45 am, US Futures are pointing toward a gap higher at the bell.  The DIA is implying a +0.83% open, the SPY implying a +0.77% open, and the QQQ implying a +0.75% open.  10-year bond yields and Oil are also rebounding in early trade as the Dollar is just on the red side of flat so far this morning. 

The only major economic news scheduled for release on Tuesday are August Building Permits, Q2 Current Accounts, and August Housing Starts (all at 8:30 am).  The major earnings scheduled for the day include AZO and CBRL before the open.  Then after the close, ADBE, FDX, and SFIX report.

Markets are trying to rebound after the ugly Monday session. However, a lot of technical damage was done and the whipsaw is in effect both intraday and interday. Be careful not to get caught in that whiplash. Also, with the Fed Meeting starting today, it would not be surprising for markets to start drifting until the FOMC shows its next card Wednesday afternoon. So, be ready for a dead drift sideways if it comes.

Keep in mind that you don't have to trade every day. And when you do trade, the Trend is your friend. Right now, that trend is bearish. So, manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Stuck Between Support and Resistance

On Thursday, August Retail Sales came in much, much hotter than expected (+0.7% vs. -0.8% expected) and Jobless Claims came in slightly higher than expected (332k vs 330k) in the first week since extended unemployment expired.  As a result, large caps opened flat while the QQQ gapped down about three-tenths of a percent.  At that point, all 3 sold off for half an hour before starting a slow rally that lasted into the last hour.  However, they then backed off the highs a bit.  This left us with indecisive Doji or Spinning Top candles in all 3 major indices that continue to have trouble breaking through the T-line resistance.  On the day, SPY lost 0.17%, DIA lost 0.18%, and QQQ gained 0.07%.  The VXX rose slightly to 25.15 and T2122 remains in the mid-range at 48.07.  10-year bond yields rose to 1.338% and Oil (WTI) was flat at $72.60 despite a spike in the Dollar (up three-tenths of a percent against other major currencies).

Overnight, Asian markets were mixed but leaned to the green side.  New Zealand (+1.18%) and Hong Kong (+1.03%) were the standout movers to the upside and Australia (-0.76%) was by far the biggest loser on the day.  In Europe, markets are mixed, but mostly lower on modest moves at mid-day.  The FTSE (-0.12%), DAX (-0.26%), and CAC (-0.17%) are typical for the continent in early afternoon trade.  As of 7:30 am, US Futures are pointing toward a modestly lower open.  The DIA is implying a -0.18% open, the SPY implying a -0.25% open, and the QQQ implying a -0.28% open at this hour.  The Dollar is also down a bit with 10-year bond yields up to 1.343% and Oil down half of a percent in early trading. 

The only major economic news scheduled for release on Friday is Michigan Consumer Sentiment at 10 am.  There are no major earnings scheduled for the day.

This afternoon, the FDA Vaccine Advisory panel is meeting to debate and vote on whether to recommend PFE and MRNA booster shots for the general public.  There seems to be a debate amongst the panel on whether there is enough scientific evidence that the booster provides enough additional protection to outweigh the use of all production capacity and vaccine doses for initial vaccinations.  Of course, this has to be weighed against the hesitancy and lack of compliance among the remaining unvaccinated.  Either way, the panel votes, PFE and MRNA (and later JNJ) are all likely to be unaffected.  Their vaccine capacity will be used somewhere at roughly the same profit margin. However, future case surge numbers and economic impacts may be influenced by the decision  

Markets have seemed to consolidate this week, even with intraday volatility with the major indices stuck between resistance overhead and support below. However, the short-term bearish trend remains in place. It appears the fear of reduced economic growth (nationally and globally) remains the dominant driver in the market at the moment. This is interesting since BAC reports that money is piling into stocks at the fastest pace in over a year. BAC said that over $62 billion came out of money-market funds in the first 3 days of this week, with $51 billion of that going into stocks and most of the remainder going into bonds. With all this said, all eyes are looking ahead to the Fed meeting next week for the next clue. So, be careful making bets today.

Remember this is Friday. So, prepare yourself for the weekend news cycle and the likelihood of doldrums heading into the Fed meeting next week. Keep in mind that you don't have to trade every day. And when you do trade, the Trend is your friend. Manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Last Major Economic Data Ahead of Fed

Markets opened flat on Wednesday and then sold off briefly before starting a slow rally that lasted all day long.  The major indices are all testing their T-line (8ema) above as of day end.  This left us with Bullish Harami candles that closed near their highs in all 3 major indices.  On the day, SPY gained 0.83%, DIA gained 0.68%, and QQQ gained 0.74%.  The VXX fell almost 4% to 25.43 and T2122 rose into the mid-range at 65.42.  10-year bond yields rose to 1.304% and Oil (WTI) gained over 3% to $72.64/barrel as oil inventories came in tighter than expected (Gulf of Mexico production still only at 60% of pre-hurricane Ida levels) and the Dollar fell against other major currencies.

Tax hikes to pay for the Democratic domestic agenda were passed out of the House Ways and Means Committee on Wednesday.  The current version would raise $2.9 trillion, primarily by increasing the top corporate tax rate to 26.5% and imposing a 3% surcharge (added tax) on individuals earning more than $5 million per year. 

Last night, Elon Musk’s SpaceX launched an all-civilian rocket into actual orbit of the earth.  (360 miles, many times higher than the sub-orbital flights of the SPCE and Blue Origin flights. The consensus is that this accomplishment is exponentially more difficult than the flights accomplished by the other two companies.) There is speculation that SpaceX will be taken public via IPO in the next year.

Yesterday the FDA refused to take a stance on the PFS booster shot.  The agency cited a lack of “verified” data.  MRNA also released data on “breakthrough” cases that the company said support the need for booster shots.  In general virus news, the total number of cases has risen to 42,479,780 confirmed cases and deaths are now at 685,023.  Meanwhile, the averages have seemed to are plateau at 152,891 new cases and 1,609 new deaths per day.  

Overnight, Asian markets were mostly in the red again, led by Chinese stocks.  Shenzhen (-1.91%), Hong Kong (-1.46%), and Shanghai (-1.34%) led the region lower.  However, India (+0.63%) and Australia (+0.58%) were the clear leaders on the green side as Australian unemployment came in lower than expected.  In Europe however, markets are mostly on the green side at mid-day.  The FTSE (+0.48%), DAX (+0.54%), and CAC (+1.09%) are typical of the region with only Russia (-0.36%) and Portugal (-0.45%) on the red side of the ledger in early afternoon trading.  As of 7:30 am, US Futures are pointing to a flat open again.  The DIA is implying a +0.01% open, the SPY implying a -0.07% open, and the QQQ implying a -0.16% open at this hour.  The Dollar and 10-year bond yields are up and Oil (along with other commodities) down in early trading.

The major economic news scheduled for release on Thursday includes August Retail Sales, Philly Fed Mfg. Index, and Weekly Jobless Claims (all at 8:30 am), and July Business Inventories (10 am).  Notably, these are the last major economic data points coming ahead of next week's Fed meeting. There are no major earnings scheduled for the day.

The bulls pushed back against the recent downtrend yesterday. However, the large-caps are still fighting with the T-line and 17-ema (as well as recent levels) as resistance above. While the QQQ is just back up above the two moving averages, it too continues to have resistance overhead. The point is that while the bulls woke up Wednesday, none of the major indices have broken the downtrend yet. With that backdrop, the morning news, especially Jobless Claims, are likely to drive early action today.

Remember you don't have to trade every day and that the Trend is your friend. Manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: IGT, CTRM, CSCO, PLAN, F, PLTR, FSM, INTC, DVN. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

MSFT Buyback and Industrial Production

On Tuesday, CPI came in better than expected (core CPI much better) and markets gave us another little bull trap.  A gap up of about a third of a percent was met with immediate strong selling that lasted for an hour.  Then, after a small late-morning rally, the bears stepped in again all afternoon.  This left us with big, ugly black candles in all 3 major indices, including a Bearish Engulfing of a Doji in the DIA.  On the day, SPY lost 0.54%, DIA lost 0.81%, and QQQ lost 0.28%.  The VXX rose to 26.46 and T2122 fell into the oversold territory at 15.81.  10-year bond yields fell to 1.284% and Oil (WTI) rose to $70.77/barrel.

During the day the Senate grilled SEC Chair Gensler on various items.  Several called on him to set tighter rules on cryptocurrencies.  He told them the SEC is working overtime to create a set of rules to oversee the crypto markets.  He also said the SEC is working on several approaches on how to handle brokers' conflict of interest when they take payments for order flow.  In other political-related news, Senator Warren sent a letter to the Fed calling for them to break up WFC over their various improprieties over the years that have been fraudulent and anti-consumer. 

During the afternoon, AAPL held its annual product announcement event.  Among the products put out this year are a new iPhone 13 (in 4 models from $699 to $1,099), a new iPad and iPad mini, and a new Apple Watch.  The main new features of the flagship phones are a bigger battery (1.5-2.5 longer battery life) and an improved camera.  In other tech news, early this morning MSFT announced a dividend increase and a new $60 billion share buyback program.

New mortgage demand spiked 7% last week (week-on-week), even as rate for a 30-year fixed-rate loan remained unchanged.  While a definite change in trend for demand, this is still 11% lower than a year ago.  At the same time, applications for loan refinancing fell 3% week-on-week and remain just below where they were a year ago. 

Overnight, Asian markets were mostly red after China’s retail sales came in much slower than expected for August. (Chinese retail sales grew 2.5% for the month versus an expected 7% growth.)  Hong Kong (-1.84%) was far-and-away the biggest loser, but losses were widespread at a more moderate pace.  India (+0.80%) was an outlier among the 3 exchanges that managed green numbers.  In Europe, stocks are also mostly in the red at mid-day.  The FTSE (+0.06%), DAX (-0.18%), and CAC (-0.54%) are typical of the region, with only Norway (+0.52%) more than barely green in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a mixed, flat open.  The DIA is implying a dead flat open, the SPY implying a +0.10% open, and the QQQ implying a +0.21% open.  The Dollar is down, as are 10-year bond yields, with Oil (WTI) up 1.33% (as are most commodities in reaction to the dollar) in early trading.

The major economic news scheduled for release on Wednesday includes the August Import/Export Price Index and NY Fed Empire State Mfg. Index (both at 8:30 am), August Industrial Production (9:15 am), and Crude Oil Inventories (110:30 am).  Major earnings reports scheduled for release are limited to JKS and WEBR before the open.  There are no earnings announcements scheduled for after the close.

After the bears sprung another bull trap at the open yesterday, they remained in control of the short-term trend. However, the longer-term trend remains bullish and markets are just a bit extended to the downside at the moment. However, before predicting that means a reversal, remember the market can remain wrong longer than you can stay solvent being right too early. As of now, less than 40% of stocks are above their 40-day moving average and only 43% are above their 200sma. This could be maintained, even in a rally, given the huge cap weightings of the massive Tech names. However, it is not a recipe for long-term market growth. So, the short-term outlook remains bearish and we need to keep an eye out for signs of a broader pullback.

Remember you don't have to trade every day and that the Trend is your friend. Manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry about the things you can't control. Discipline and good trading rules are what separates trading success from failure over the long run. Above all, consistently take profits when you have them. A good trader refuses to let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: No tickers 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Pre-Market Flat, CPI Will Call Tune Early

Markets gapped higher again (two-thirds of a percent this time) on Monday and once again that gap was met with immediate selling pressure in the SPY and QQQ.  However, the major action was over and markets stabilized by 10:15 am and then just ground sideways the rest of the day in those two indices.  The DIA did not immediately selloff, but instead ground sideways all way with an afternoon selloff and recovery.  This left us with a Bull Harami Doji in the DIA and black candles with lower wicks in the SPY and QQQ.  On the day, SPY gained 0.25%, DIA gained 0.75%, and QQQ lost 0.07%.  The VXX fell to 26.09 and T2122 rose back into the mid-range at 46.76.  10-year bond yields fell to 1.328% and Oil (WTI) rose 1.33% to $70.64/ barrel.

During the day Monday, House Democrats outlined the tax hikes they want to pay for the Infrastructure and Budget bills.  The plan calls for corporate taxes to increase to 18% for the first $400,000 of income, 21% for the next $4.6 million of income, and 26.5% for everything over $5 million in income.  While this is more than the current 21% highest rate, it is a percent less than previous proposals floated and still less than the 35% rate that prevailed until 2017.  On the individual side, the House plan does not include a repeal of the “stepped-up-basis” (meaning inherited wealth would not need to be marked-to-market at the time of inheritance) that had previously been proposed.  However, it does raise the capital gained top rate to 28.8% and adds a 3% surcharge on individuals that have post-deduction incomes exceeding $5 million.  This all said the proposal is still far from law yet as some Senate Democrats have proposed a 25% max corporate tax rate and certain critical House Democrats will not be happy that the plan does not include an increase in deductions for State and Local taxes. 

AAPL has had a busy few days.  On Monday the company rushed out a critical patch for its messaging app that had been vulnerable to spyware infections without even clicking.  This came only days after losing a lawsuit Friday which means they can no longer require app developers to use their payment system or prevent developers from contacting customers directly.  Offsetting those pieces of bad news, AAPL will hold its annual new product announcement dog and pony show today at 1 pm Eastern.  New versions of the iPhone, AirPods, and Apple Watch are expected. 

In miscellaneous stock news after the close Monday, WHR announced it has raised its employee vaccination bonus to $1,000. (This comes even as Covid cases fell from the recent peak, two weeks ago to “only” 144,300 new cases per day.) Elsewhere, ORCL reported a miss on revenue, but beat on earnings after the close. They also announced plans to increase spending encouraging customers to switch to (more profitable) cloud services instead of on-premise software and increased cloud capital spending by $1 billion.  Finally, INTU announced it will buy email marketing company Mailchimp for $12 billion.

Overnight, Asian markets were mixed again. Shanghai (-1.42%) and Hong Kong (-1.21%) led the region’s losses as China was forced to lockdown Xiamen, a city of 4.5 million due to an outbreak of Delta variant and just as a Southern China Mid-Autumn Festival was planned (and now canceled).  On the upside, Japan (+0.73%) and South Korea (+0.67%) led the gains.  Europe is also mixed but is leaning red as of mid-day but on more modest moves.  The FTSE (-0.25%), DAX (+0.10%), and CAC (-0.53%) are typical of the region although a couple of smaller exchanges have managed to gain three-tenths of a percent.  As of 7:30 am, US Futures are flat in front of the CPI report.  The DIA is implying a +0.02% open, the SPY implying a +0.05% open, and the QQQ implying a -0.03% open.  The Dollar is just South of flat while 10-year bond yields are up to 1.341% and Oil (WTI) is up half a percent in early trading.

The only major economic news scheduled for release on Tuesday is limited to August CPI (8:30 am).  The major earnings reports scheduled for Tuesday are limited to CNM before the open.  There are no earnings announcements scheduled for after the close.

The bears remain in charge of the short-term trend while the longer-term is much a rosier picture. The main longer-term technical concern is not the short-term trend, but instead breadth. For quite some time the bulls have been moving forward on fewer new highs, with the Mega-cap Tech names dragging the indices higher. As of now, less than 46% of stocks are above their 40-day moving average. While clearly, this is sustainable for a while given the massive weightings of TSLA, AAPL, and AMZN, it is not a recipe for a long sustained continuing rally. So, the short-term outlook remains bearish until we fix some of the technical damage done recently (break resistances and add breadth), but also keep an eye out for signs of a broader pullback.

Thought for the day: the Trend is your friend, so follow it. As always, manage your existing trades before you chase any new ones. Focus on the process and on managing the things you can control. Don't worry too much about the things you can't control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won't let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: CARA, SDC, CLX, MPC, BP, COP, MRO, APPS, XLE, MSFT, LOW, GS, 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.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

PreMarket Bullish After Rough Last Week

Markets gapped up half a percent on Friday. However, the bears stepped in right away and sold off hard until noon.  There was an early afternoon bounce in all 3 major indices, but the bears stepped in again about 1:30 pm and drove prices lower all the way into the close.  This left us with 3 ugly black candles in the major indices, closing near the lows and taking out potential support levels across the board.  On the day, SPY lost 0.79%, DIA lost 0.75%, and QQQ lost 0.76%.  The VXX rose just under 4% to 27.06 and T2122 dropped just into the oversold territory at 19.58.  10-year bond yields spiked dramatically to 1.343% (it was a very volatile week for bond yields, both up and down) and Oil (WTI) rose 2.3% to $69.71/barrel on continued production concerns out of the Gulf of Mexico. 

During the day Friday, the big news was the AAPL court ruling.  A federal judge handed down a ruling in the EPIC Games vs AAPL lawsuit.  This ruling bars AAPL from forcing app developers to use only the AAPL payment system (and pay a 30% service fee) as well as prohibiting apps from providing links to their own websites or having direct contact with end-users.  This is a landmark anti-trust ruling that will surely be appealed to the end of the earth by AAPL.  However, it also would apply to very similar policies that GOOG enforces (and which would be barred under this precedent if EPIC Games sues GOOG now). For reference, even though AAPL does not disclose the numbers, industry analysts estimate the Apple store accounted for about $25 billion in profit from this 30% cut in 2020.  GOOG also does not disclose detailed financials but is estimated to have generated about $3.5 billion in profit from their own app store in 2020.

In weekend stock news, KSU has decided to accept the $31 billion offer (2.884 shares and $90 cash per share) from CP.  This came after regulators rejected key portions of a $33.6 billion offer from CNI.  On the other side of the Pacific, China will reportedly break up Ant Group’s AliPay in order to separate the company from its sister (fellow Ant Group) company BABA. This action will read through to all the Chinese Tech titans (TME for example) and also has implications for AAPL and GOOG (see story above) and other US firms that operate in the giant Chinese market. 

We start the week with Senate returning (the House follows next Monday) to face a number of deadlines and with more economic data ahead this week.  Items on the Congressional economic agenda include the Infrastructure bill ($1 trillion), the Budget bill ($3.5 trillion), Appropriations (government funding), and Debt Ceiling raise.  Economic data includes CPI, Industrial Production, NY Empire and Philly Fed Mfg. Indexes, Retail Sales, Business Inventories, and Michigan Consumer Sentiment…all later this week.

Overnight, Asian markets were mixed, but mostly in the red on modest moves.  Hong Kong (-1.50%) was a big outlier to the downside and New Zealand (+0.81%) a big outlier to the upside.  However, in Europe, stocks are starting the week green across the board on healthy moves at mid-day.  The FTSE (+0.82%), DAX (+1.07%), and CAC (0.81%) lead the way, but gains are widespread in early afternoon trading.  As of 7:30 am, US Futures are following Europe and pointing to a gap higher.  The DIA is implying a +0.58% open, the SPY implying a +0.55% open, and the QQQ implying a +0.51% open.  The Dollar is stronger this morning and the 10-year bond yields down to 1.324% while Oil (WTI) is trading about eight-tenths of a percent higher in early action.

The only major economic news scheduled for release on Monday is August Federal Budget Balance (2 pm).  The are no major earnings reports scheduled before the open.  After the close, ORCL is the only major report scheduled.

You would be forgiven if you looked at a weekly chart and saw Evening Star signals in the large-cap indices and a Bearish Engulfing signal in the QQQ. Any way you slice it, last week's loss of 1.5-2.1% in the major indices was not good news for the bulls. However, traders seem to be looking to rebound (buy the dip) in premarket action. Bloomberg also reported today that economists are starting to buy the Fed line that the inflation we have and are seeing is tied to the stimulus injections and may fade soon. So, there is a little something for both sides. The only sure thing is that we face some technical damage from the (especially in the DIA) that will have to be overcome before we could move higher.

As always, manage your existing trades before you chase any new ones. Remember you don't have to trade every day. So, consider whether this market suits your trading style or not before blindly trading. Focus on the process and on managing the things you can control. Don't worry too much about the things outside of your control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won't let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: AMC, APA, BP, RAD, BFLY, FB, NVDA, MSFT. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

9/11, PPI, Oil Output, and WFC Top the News

Markets opened flat Thursday after Weekly Jobless claims came in well below estimate (310k vs 335k est.) in the last report before the end of extended unemployment will hit the books.  Stocks then put in a little rally the first half-hour.  At that point, we saw a slow fade back to flat at 1 pm.  However, at one Fed member Bowman told the American Bankers Assn. she is “still encouraged about the economic recovery and expects the Fed to taper bond buying this year.” This was nothing new, but markets still sold off hard for 30 minutes before grinding sideways in a tight range the rest of the day.  This left us with Inverted Hammer-type candles in all 3 major indices with prices going out near the lows.  On the day, SPY lost 0.42%, QQQ lost 0.34%, and DIA lost 0.38%.  The VXX gained 2% to 26.06 and T2122 held steady at 33.54.  10-year bond yields dropped to 1.295% and Oil (WTI) fell almost 2% to $67.98/barrel. 

Despite the drop in oil prices, Bloomberg reported Thursday evening that US Oil output fell to its lowest level on record (going back to 1983) after Hurricane Ida.  This amounts to a 1.5mil barrel/day production decline.  In fact, 75% of US oil and gas production in the Gulf of Mexico remains offline more than 10 days after the storm left the gulf.  Maybe most alarmingly, on Wednesday, RDS.A (one of the largest global oil producers) declared “force majeure” on many of its open contracts to deliver oil. This news about the severity of the problem can't help but impact the Oil E&P tickers that focus on the gulf.

After the close, WFC announced it will pay another $250 million fine.  This one stems from a banking regulator finding that WFC did not properly execute a mortgage loss mitigation program.  This violated a 2018 consent order and was tied to the company’s loan modification program.  The Office of the Comptroller of the Currency said they are also considering putting limits on the bank’s future activities since it has engaged in “unsafe and unsound practices.”  Oddly, WFC stock rose 1.6% in after-hours trading on the news.

Thursday evening, New York joined CA to become the second state (and large population state to boot) that will ban the sale of new internal combustions vehicles by 2035.  The NY ban impacts both cars and trucks, while CA only bans internal-combustion light-duty trucks (SUVs and pickups) as of then.  This is more evidence of the major shift in the auto industry, potentially working in favor of TSLA, NKLA (head starts) and requiring major retooling and technology shifts from the old guard like GM, F, and FCAU. Obviously, batteries, electricity production, and charging station infrastructure-related industries will benefit from the accelerating trend.

Overnight, Asian markets were mostly green on modest moves.  The three exceptions to this rule were Hong Kong (+1.91%), Japan (+1.25%), and Taiwan (+0.98%) which posted strong week-ending gains as Chinese game stocks made a comeback after the Thursday overreaction to the downside.  In Europe, stocks are mostly higher on modest moves as the region rebounds from fear that preceded the ECB meeting.  The FTSE (+0.34%), DAX (+0.45%), and CAC (+0.36%) are leading the way at mid-day.  As of 7:30 am, US Futures are pointing to a gap higher.  The DIA is implying a +0.52% open, the SPY implying a +0.45% open, and the QQQ implying a +0.44% open at this hour.  10-year bond yields are up to 1.321%, Oil (WTI) is up 1.85% to $69.41/barrel, and the dollar is down just slightly in early trading.

The major economic news scheduled for release on Friday is limited to August PPI (8:30 am), and WASDE Report (noon).  The major earnings reports scheduled for the day are limited to KR before the open.  There are no reports scheduled for after the close.

The bulls have been showing a few cracks in their armor this week with the DIA and SPY both printing 4 lower closes and the QQQ now having printed 2 lower closes. However, the T-line (8ema) may still give the QQQ support as the massive high-tech names continue to do work for the bulls with the "buy the dip" outlook. Expect the PPI to impact futures later this morning and this may lead to some volatility early. However, also remember this is Friday, there will be a lot of 9/11 remembrances distracting traders and it has been a light-volume week with no major news (and a heavier news cycle coming next week). So, we may see more drifting on low volume today.

As always, manage your existing trades before you chase any new ones. Remember you don't have to trade every day. So, consider whether this market suits your trading style or not before blindly trading. Focus on the process and on managing the things you can control. Don't worry too much about the things outside of your control. Good trading rules and discipline is what separates long-term success from failure in trading. However, above all, consistently take profits when you have them. A good trader just won't let greed turn their winners into losers.

Ed

Swing Trade Ideas for your consideration and watchlist: There are 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

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