Markets gapped down on Friday, but that was a bear trap as the bulls immediately started a slow, steady, all-day rally that closed near the highs.  This left us with another large shite candle in all 3 major indices.  It was the fourth straight gain on a strong white candle and saw the large-caps cross up through their 50sma.  On the day, SPY gained 0.78%, DIA gained 0.50%, and QQQ gained 2.05%.  This capped the best week since 2020.  The VXX fell 4.4% to 25 and T2122 remains very overbought at 93.23.  10-year bond yields fell to 2.153% and Oil (WTI) gained 2% to $105.10.

This morning it was announced that BRKB has purchased another insurance company (Y) over the weekend for $11.6 billion in cash.  That represents less than a 2% premium on the Y closing price Friday, after it is clear that word of the deal had leaked and Y spiked 23% on the day.  In other business news, another BA 737 plane (this one now a 737 Max) has crashed.  This time the crash was in China with 132 people on board.  BA stock has been down as much as 10% in premarket.

SNAP Case Study | Actual Trade

On the Russian invasion story, the Ukrainian defense continues to surprise everyone, especially the Russians.  On Sunday the Russians issued an ultimatum to surrender to the defenders of Mariupol and then giving everyone in the city until this morning to be exit (to Russian “refugee camps”?). This was clearly an implication that Russia will go “full Aleppo” on the city as of today.  The demands were rejected.  China has ordered their national coal stocks to be replenished (presumably from Russia) overnight.  This raises the specter of sanctions spreading to China after last week’s marathon sessions of warning the Chinese not to give Russia any material help.

In economic news later this week, we have a trio of Fed speakers on Tuesday (Williams at 10:35 am, Daly at 2 pm, and Mester at 5 pm).  On Wednesday we get Feb. New Home Sales (10 am), Crude Oil Inventories (10:30 am) and a couple of more Fed speakers (Chair Powell at 8 am and Daly at 11:45 am).  Thursday brings Feb. Durable Goods Orders, Q4 Current Account, and Weekly Initial Jobless Claims at 8:30 am, Mfg. and Services PMIs (9:45 am) and more Fed speakers (Waller at 9:10 am and Bostic at 11 am).  Finally, Friday we get Michigan Consumer Sentiment and Feb. Pending Home Sales (10 am) and two more Fed speakers (Williams at 10 am and Waller at noon).

Overnight, the Asian markets were mixed.  Singapore (+0.75%), Japan (+0.65%), and Taiwan (+0.59%) led gainers while India (-0.98%), Hong Kong (-0.89%, and South Korea (-0.77%) paced the losses.  This comes as China has handled the recent covid resurgence well and it appears economic impacts will be minimal as one city at a time is locked down and then later released.  In Europe, stocks are also mixed on modest moves at mid-day.  The FTSE (+0.70%), DAX (+0.05%), and CAC (-0.09%) are typical of the range across the continent in early afternoon trading.  It is worth noting that in Russia they have allowed bonds to resume trading, but not stocks.  Russian bond yields have spiked to almost 20% in their premarket but fell back to 13% when the Russian bond exchange opened.  As of 7:30 am, US Futures are pointing toward a flat open.  The DIA implies a -0.17% open, the SPY is implying a +0.08% open, and the QQQ implies a -0.01% open at this hour.  10-year bond yields are surging again this morning at 2.189% and Oil (WTI) is spiking again, up over 4% to $109.09/barrel.

The only major economic news scheduled for release on Monday are two Fed speakers (Bostic at 8 am and Chair Powell at 10 am).  The only major earnings report scheduled before the Open is PDD.  After the market close, NKE and TME report.

The week ahead looks like a slow week for economic news with a lot of Fed speakers out talking their opinions on the economy and monetary policy. After 4 days of strong rally, markets are very extended. Even if a bottom has already been put in, rest and consolidation is clearly in order. However, remember we can’t predict Mr. Market, he can remain “wrong” a lot longer than we can stay solvent being “right too early.” So, be careful of chasing optimism at this point, but recognize that the longer-term downtrend has been broken. We just need to see a higher low hold and bulls to step in to establish the new uptrend.

Stick to your trading rules and manage the things that you can control. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Stocks gapped down modestly at the open Thursday, but then rallied for the rest of the day, although QQQ had a false start on that rally before doing the same.  All 3 major indices closed near the high of the day.  This gave a third straight large white candle and significantly up day (best 3-day gain since November 2020).  The SPY and DIA ended the day just below their 50sma.  On the day, SPY gained 1.25%, DIA gained 1.20%, and QQQ gained 1.21%.  The VXX rose to 26.15 and T2122 shot deep into the overbought territory at 94.04.  10-year bond yields were flat at 2.176% and Oil (WTI) spiked 8.69% to $103.30/barrel.

On the invasion story, the WHO said Thursday that Russia has attacked 43 hospitals and clinics so far.  The US accused them of war crimes for an attack on a Mariupol theatre that was clearly marked “Children” and was being used as a mass shelter.  In terms of companies, PZZA said it could not pull out of Russia, because the vast majority of its locations in Russia are owned by local franchises.  QSR finds itself in a similar position and is looking at divesting from its partnership after the Russian partner refused to close the Russian Burger King locations. Finally, note that overnight GS said the market is now too relaxed on the risks posed by the invasion.

SNAP Case Study | Actual Trade

During the day Thursday, Jobless Claims, Building Permits, and Housing Starts all came in slightly better than expected. Then after the close, FDX and GME both missed on earnings, but beat on revenue.  On the other side, JOAN beat on earnings but also missed on revenue.  Also, overnight Nickel fell 12% as it has dropped the maximum that is allowed by rule (limit) for the third day in a row at the London Metals Exchange.

Bloomberg reported late Thursday that the new AAPL low-end ($429) iPhone SE, which goes on sale today, will not have to give their phone carrier information at the time of purchase.  The phone can then be paired to any phone network at a later time using eSim technology.  This move is meant to push more sales to AAPL itself, as opposed to being purchased through T or TMUS.  This change will eventually come to VZ network users as well, but contractual obligations are stopping AAPL from doing it at this time.

Fed voter (and lone dissenter at this week’s meeting) James Bullard was talking his position early today.  The St. Louis Fed President (who wanted a half percent hike Wednesday and a full percent hike before July) released a statement this morning saying he feels the Fed needs to raise rates to 3% this year (versus the 1.75% the Fed consensus believed at the Wednesday meeting).  He said only this kind of move would show that the Fed is serious about fighting inflation.

Overnight, the Asian markets were slightly mixed but leaned to the upside.  India (+1.84%), New Zealand (+1.47%), and Shanghai (+1.12%) led the move higher with only Hong Kong (-0.41%) and Thailand (-0.19%) lower on the day.  In Europe, with the exception of Norway (+0.14%), stocks are lower across the board at mid-day.  The FTSE (-0.73%), DAX (-1.50%), and CAC (-1.46%) lead the continent due to market cap and volume, but losses are widespread in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap-down start to the day.  The DIA implies a -0.64% open, the SPY is implying a -0.73% open, and the QQQ implies a -0.75% open at this hour.  10-year bond yields are lower to 2.137% and Oil (WTI) is up another eight-tenths of a percent to $103.83 in early trading.

The major economic news scheduled for release on Friday is limited to Feb. Existing Home Sales (10 am).  However, remember that it is also “quadruple witching day” with stock index futures, stock options, options on stock index futures, and stock index options all expiring.  So, there may be some pegging, rolling or volume anomalies in the afternoon.  There are no major earnings reports either before or after the market on Friday.

Markets have had a very strong week on the back of back-to-back-to-back strong days. This makes all 3 major indices quite extended in the short term. So, rest or pullback would be the normal expectation. Also remember, that we are still in a downtrend. So, be careful chasing that optimism or getting any more net-long at this point. Finally, don’t forget this is Friday with a weekend news cycle ahead. Despite the recent optimism, there is a war going on at the doorstep of Europe (2nd or 3rd largest economy/market in the world) and sanctions going on that the IMF thinks will hurt the global economy. So, risk definitely exists. Finally, don’t forget it’s Quadruple Witching Friday and we may see some seemingly squirrely moves today, especially in the afternoon.

Stick to your trading rules and manage the things that you can control. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

It was another roller-coaster day in markets Wednesday as stocks gapped higher (following Europe and Asia on hope around Ukraine).  After an hour of follow-through, stocks ground sideways until 1 pm when a strong selloff took hold and completely erased all of the day’s gains by 2:30 pm.  However, the Fed press conference led to a huge rally the last 90 minutes took stocks out on the highs.  That left us with large white candles with significant lower wicks in all 3 major indices.  On the day, SPY gained 2.21%, DIA gained 1.54%, and QQQ gained 3.71%.  The VXX fell almost 8% to 26.52 and T2122 shot up into the overbought territory at 85.25.  10-year bond yields rose to 2.174% and Oil (WTI) fell almost 1.6% to $94.90/barrel.  (It is worth noting that Oil Inventories came in much higher than expected (+4.35mil vs -1.38mil expected), which could help on the gas price front in the short-term.

During the afternoon, the Fed announced a quarter-percent interest rate hike as was expected. However, they also outlined that they now expect this to be the first of 7 rate hikes, with another 0.25% hike expected each of the 6 remaining Fed meetings this year, which would bring the funds rate to 1.9% by year-end. Only James Bullard (hawk) dissented, as he wanted a half-percent hike today.  This was a better outlook than had been feared and led to a rally.  However, the market was also happy to hear that the Fed will not begin reducing its balance sheet (by selling the $9 trillion of securities it has purchased over the pandemic) until some future meeting.  The dot plot shows that half the Fed members expect they will need more than 7 hikes to resolve the inflation problem, but half believe 7 will be enough.  In general, Chair Powell was upbeat about future growth prospects but also cited unknown variability from the Russian invasion and Supply Chain issues.

SNAP Case Study | Actual Trade

On the Russia front, the country claimed that it made the $117 mil debt payment that was due Wednesday.  However, they did it with funds that were frozen by sanctions (and offered to alternatively pay in rubles to a Russian bank, which raised concerns over default since the owners of that debt were not actually paid in money they can access.  Related to the oil situation, the IEA said that Russian oil production could drop 30% (3 million barrels/day) in April as sanctions have removed 13% of their markets and major oil-producing, trading firms, and shipping companies have all stopped working with Russian oil.  There is enough spare global capacity to make up the 3 million barrels to be lost, but it would take major increases by Saudi Arabia and UAE, which have so far not done so in solidarity with OPEC+ production limits.  Finally, Russia has begun seizing hundreds of jets (worth about $12.4 billion) owned by US and European leasing companies.  Those planes will then be given to Russian airlines. The move will allow Russia to continue to operate its domestic flights using the confiscated planes.

S&P Global reduced its forecast for light vehicle production for 2022 and 2023 by 2.6 million (a 3% reduction globally).  They cited parts shortages due to supply chain problems (presumably related to Covid).  However, the main cause for the cut was the war in Ukraine.  (Ukraine is the source of many European wiring harnesses as well as electrical and communications components.)  The impacts of the war lowered its 2022 European production numbers by 1.7 million, which includes a 1 million cut due to lost demand from the combination of Ukraine and Russia.

After the close, LEN beat on both lines.  Meanwhile, WSM beat on earnings while missing on revenue.  On the other side, EDR missed on earnings while beating on revenue.  However, GES missed on both lines. So far this morning, ACN, CMC, PAGS, OEZVY, SIG, and GIII have all reported beats on both lines.   However, DG, and DBI beat on earnings while missing on revenue.  On the other hand, CSIQ missed on both earnings and revenue.

Overnight, the Asian markets were strongly green across the board again. Hong Kong (+7.04%) again was a dramatic outlier to the upside, making for over 16% gain in 2 days in that exchange as China has said they will support IPOs and are making progress in the US delisting negotiations.  Outside of that, Japan (+3.46%), Taiwan (+3.00%), and Shenzhen (+2.40%) led the region higher.  In Europe, markets are mixed but lean to the upside.  The FTSE (+0.11%), DAX (-0.60%), and CAC (+0.16%) lead the region due to volume, but Denmark (+1.44%) is the biggest gainer in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modestly lower open.  The DIA implies a -0.27% open, the SPY is implying a -0.32% open, and the QQQ implies a -0.45% open at this hour.  10-year bond yields are down slightly to 2.137% and Oil (WTI) is spiking higher 5% to $99.83 in early trading.

The major economic news scheduled for release on Thursday includes Feb. Building Permits, Feb. Housing Starts, Philly Fed Mfg. Index, and Weekly Initial Jobless Claims (all at 8:30 am), and Feb. Industrial Production (9:15 am).  The major earnings reports scheduled for release before the open include CAN, CSIQ, CMC, DBI, DG, GIII, and SIG.  Then after the close FDX, GME, and JOAN report.

The Fed news was received very well yesterday with no shocks and the minor surprises being taken as positive for markets. However, as usual, after a night to sleep on the news, the market may be looking to swing back the other direction after it has sunk in that nothing has really changed since Tuesday. Remember that we remain in a downtrend and have moved an awful long way in the last 2 days. So, rest or pullback would be the normal expectation, even in an uptrend. Be careful chasing that optimism of a bottom having been put in…we don’t have higher highs and higher lows yet, just hopium at this point.

Stick to your trading rules and manage the things that you can control. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: FTCI, PNR, XRT, ALDX, FSM, OSH, AG, MRNA, TWTR, XLV, FSLR, AMD, X. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

US markets rebounded Tuesday on the hope brought by 3 EU Prime Ministers visiting Kyiv and PPI coming in lighter than expected.  Stocks gapped higher and then put in morning and afternoon rallies separated by a 2-hour period of consolidation.  As a result, all 3 major indices printed large white candles that closed near their highs.  On the day, SPY gained 2.20%, DIA gained 1.85%, and QQQ gained 3.14%.  This move put the large-cap indices back above their T-lines.  VXX had a crazy day and was halted numerous times before closing little changed at 28.70.  However, T2122 shot back up into the mid-range at 47.01.  10-year bond yields remained little-changed at 2.146%, but Oil plummeted again on improved prospects for peace, down 7.64% to $95.14/barrel after having been at $93.56 at mid-day.  That is a drop of over 30% from the high reached on March 8th.

On the Russia story, as mentioned above 3 Prime Ministers from EU countries are now in Kyiv to hold talks with Ukrainian President Zelensky.  Zelensky will also speak to the US Congress via zoom today.  President Biden will make his own address after signing that $13.6 billion aid package for Ukraine.  In Europe, the EU and Britain added more individuals from Russia and Belarus to the list of sanctioned people.  For their part, Russia “sanctioned” a number of American politicians from the President to members of Congress…to the extent their sanctions are of any interest.  Russia also has $117 million in bond payments due today. However, there is some optimism coming from Ukrainian President Zelensky saying talks with Russia are becoming more realistic.

SNAP Case Study | Actual Trade

During the day, Sarah Raskin withdrew her candidacy for the office of Fed Vice Chair after WV Senator Manchin effectively killed the nomination Sunday at the behest of the Oil and Gas industry.  President Biden called for an immediate up/down vote on his 4 remaining Fed nominees (sitting Chair Powell, sitting member Brainard, Lisa Cook, and Philip Jefferson).  No word yet on who the President will nominate as a replacement for Raskin to be Vice-Chair (and the top Bank Regulator).

Mortgage demand fell this week as interest rates surged again.  After a brief reprieve, 30-year fixed-rate mortgages spiked higher from 4.09% the week prior to 4.27% this week (for loans with 20% down payments).  Refinancing loan applications fell 3% for the week (and were 49% lower than one year ago).  New home purchase loans rose 1% on the week and were 8% lower than the same week in 2021.

Overnight, the Asian markets were green across the board.  The biggest moves came in China where their government said negotiation with US regulators over cooperating on US-Listed Chinese stocks was progressing.  Hong Kong (+9.08%) was a massive outlier, but Shenzhen (+4.02%) and Shanghai (+3.48%) were no slouches as Chinese stocks soared.  Europe is following Asia with stocks showing green across the board at mid-day.  This came on renewed hope from the 3 EU Prime Ministers’ visit and Ukrainian President Zelenskyy saying that talks with Russia are sounding more realistic.  The FTSE (+1.17%) lags, but the DAX (+3.22%) and CAC (+3.54%) are leading the way higher in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap higher on the same optimism.  The DIA implies a +1.02% open, the SPY is implying a +1.15% open, and the QQQ implies a +1.68% open at this hour.  10-year bond yields are rising again to 2.174% and Oil (WTI) is up fractionally to $95.90/barrel in early trading.

The major economic news scheduled for release on Wednesday includes Feb. Import/Exports and Feb. Retail Sales (both at 8:30 am), Jan. Retail Inventories (10 am), Crude Oil Inventories (10:30 am), FOMC Interest Rate Decision, FOMC statement, Fed Interest Rate Projections (dots) (all at 2 pm), and Chair Powell’s Press Conf. (2:30 pm).  Ukrainian President Zelensky will also speak to Congress at 9 am and President Biden will speak about 1 pm after signing the Ukrainian aid bill.  The major earnings reports scheduled for release before the open include ARCO, JBL, and LE.  Then after the close EDR, GES, LEN, WSM, and ZTO report.

Markets are looking to gap higher on optimism out of Asia and Ukraine. However, this is a big news day with the Fed holding center stage. So, the entire mood of the market may change mid-afternoon, depending on the rate decision, interest rate outlook (dots), and especially the statement and press conference. Be careful chasing any optimism based out of Ukraine, because we all know we are only one artillery barrage or missile strike from being back to pessimism. Also, remember that we have seen light volumes the last week and that moves on small volume may just be retail-led head fakes. So, continue to trade carefully. Also, be aware that the Chinese Covid lockdowns are spreading along with new cases. So, supply chain issues could get worse.

Stick to your trading rules and manage the things that you can control. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: HTZ, X, CLF, CRWD, XME, RS, AMED, CHGG, FSM, EVGO, LDOS, DLTR, BTG, CF, PAAS, NYMT. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

On Monday, markets gapped slightly higher and then followed through the first hour of the day. However, at that point, we saw a strong selloff that lasted until about 2 pm when the lows were reached and markets ground sideways in a tight range the rest of the day.  This left us with black candles with larger upper wicks than lower wicks.  The SPY also became the last of the 3 major indices to print a death cross (50sma crossing below 200sma). On the day, SPY lost 0.74%, DIA gained 0.03%, and QQQ lost 1.92%. The VXX gained almost 10% to 28.92 and T2122 fell into the oversold territory at 13.27.  10-year bond yields spiked again to 2.142% and Oil (WTI) rallied after falling below $100 to close at $102.97 (-6.73%).

On the Russia story, the US and China held 7+ hours of intense talks Monday where the US was trying to “warn off” China from helping Russia to circumvent the Western sanctions.  An anonymous source told reporters after the talks that if China does materially support Russia, there will be consequences (sanctions) for China as well.  Then, overnight the Chinese Foreign Minister told his Spanish counterpart that “China is not a party to the conflict and wants to avoid US sanctions over the situation.” The EU also agreed to the 4^th set of sanctions on Russia, including matching the US by revoking the Russian “most favored nation” trade status.  In a surprise (and another hopeful) move overnight, 3 EU leaders (the Prime Ministers of Poland, Slovenia, and the Czech Republic) will travel to Kyiv, even as the Ukrainian capital is entering a 35-hour curfew amidst new Russian missile attacks.

SNAP Case Study | Actual Trade

Among stocks, TSLA (-3.64%) took a big hit Monday after news broke that the company had been buying aluminum from Russia for the last two years.  Then overnight, TLSA hiked the price of all vehicles produced in the US.  The same holds true of Model 3 and Model Y cars made in China.  (The latter is notable because it was the company’s second price hike in the last week in that country.)

In other stock news, during the day yesterday, AAPL fell 2.66%, perhaps partially on the new lockdown in Shenzhen China (some AAPL components are produced in that major tech production city).  Then, after the close, MTN and CANO reported misses on both the revenue and earnings lines.

Even as the Fed meeting starts, President Biden’s set of 3 new Fed nominees has run into trouble.  Former Fed Governor and Deputy Treasury Sec. Raskin has been black-balled as a Vice-Chair nominee by WV Senator Manchin.  In his announcement, Manchin cited her previous “all-of-the-above energy policy” statements, which is code for her “support of green energy” and shows him voting the way that his coal, oil, and gas industry financial supporters prefer to send a political message.  Senator Manchin’s opposition to her likely kills her nomination.  This is a quite striking political move since there was no pretense he felt she was unqualified to be a Fed Member again and would have nothing to do anything related to national Energy policy. 

Overnight, the Asian markets leaned heavily to the downside, particularly in China.  Hong Kong (-5.72%), Shanghai (-4.95%), and Shenzhen (-4.36%) led the region lower.  In Europe, with the lone exception of Denmark (which is just on the green side of flat, the entire continent is in the red at mid-day.  The FTSE (-0.79%), DAX (-0.99%), and CAC (-1.01%) are leading stocks lower in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a modest green opening ahead of economic news. The DIA implies a +0.23% open, the SPY is implying a +0.35% open, and the QQQ implies a +0.58% open at this hour.  10-year bond yields are down slightly to 2.131% and Oil (WTI) is plummeting downward (-8.13%) to $94.58/barrel in early trading.

The major economic news scheduled for release on Tuesday is limited to Feb. PPI and NY Empire State Mfg. Index (both at 8:30 am).  The major earnings reports scheduled for release before the open Monday is limited to DOLE.  Then after the close CAL, KODK, GOCO, and YY report. 

Intraday reversals and volatility continue to be the rule in markets. A sharp drop in oil prices overnight is just another example. (While unknown for sure, it could be that China signaling they won’t do anything to help Russia that would get them into sanctions could be cause for relief in Oil markets.) However, US markets may settle down Tuesday as traders wait for the actual Fed announcements before placing too many more bets. In any event, we’ve seen a lot of chop on decreased volumes lately as the trend remains bearish. So, continue to trade carefully. Also, be aware that the Chinese Covid lockdowns are spreading. Another major city (Dongguan) was placed in lockdown overnight. This came as the Chinese report a new spike in cases in 28 provinces. So, supply chain issues could get worse.

Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: CLS, HES, BK, GT, DXC, FAST, BAC, LOW, DIS, WFC, XRT, HPE, CMCSA, ORCL, BNTX, MRNA, DGX. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped up on Friday but immediately began a volatile selloff that more than faded that gap.  This left us with large Bearish Engulfing candles in the SPY, QQQ, and IWM as well as a Bearish Dark Cloud Cover in the DIA.  All 4 of these indices gapped up through and then failed the test of their T-lines (8ema) during the day.  Again, all this happened on less than average volume.  On the day, SPY lost 1.25%, DIA lost 0.58%, QQQ lost 2.07%, and IWM lost 1.60%.  The VXX rose 2% to 26.34 and T2122 fell to 25.85 (at the lower end of the mid-range).  10-year bond yields were essentially flat at 1.995% and Oil (WTI) rose another 3.15% to $109.36.

On the Russia story, on Friday President Biden revoked Russia’s “Most Favored Nation” trade status.  This opens the door to more trade restrictions such as tariffs and import bans.  In the EU, the Parliament voted to phase out various “investment for citizenship” programs (especially in Cyprus, Malta, and Bulgaria) that allow Russian oligarchs to hide/move assets through dual-citizenships.  On Saturday, the Russian Central Bank extended the halt on stock trading through Friday 3/18.  On Sunday it was reported by Bloomberg that Russia has bombed within 11 miles of NATO member Poland, has asked China for military aid, and has killed an American journalist.  However, over the weekend, both Putin and Ukrainian PM Zelensky mentioned that there has been at least some progress in cease-fire talks. DB added its name to the list of banks leaving Russia in a U-turn from their announcement Thursday. (DB is also one of the major lenders to Russia.)

SNAP Case Study | Actual Trade

Despite the situation in the US, on Sunday, China placed the entire city of Shenzhen on lockdown after 66 cases of Omicron were reported.  This city is China’s technology center, home to manufacturing and headquarters for most is the country’s technology companies. The city of Shanghai also restricted all, but essential travel. Both lockdowns are likely to further exasperate global supply chain problems. Both cities are also home to the two major mainland China stock exchanges (as reflected in the fear shown in those exchanges below).

The economic news for this week includes no news on Monday.  Tuesday, we get the Feb Core PPI and NY Empire State Mfg. Index.  Wednesday will be the big news day, with Feb. Import/Exports, Jan. Retail Inventories, Crude Oil Inventories, the Fed Rate decision, announcements and Interest Rate Projections (dots).  Thursday will bring Feb. Housing Starts, Feb. Industrial Production, and Philly Fed Mfg. Index.  Friday rounds out the week with Feb. Existing Home Sales and Fed speakers.

Overnight, the Asian markets were mixed but leaned to the red side.  Hong Kong (-4.97%), Shenzhen (-3.08%), and Shanghai (-2.60%) led the region lower as covid cases in China have picked up significantly.  However, it was not all red as India (+1.45%), Australia (+1.21%), and Japan (+0.58%) led the gainers.  In Europe, stocks are varied, but mostly green at mid-day.  The FTSE (+0.28%), DAX (+2.89%), and CAC (+1.49%) are typical of the spread across the continent with a couple exchanges in the red and Russia still closed.  As of 7:30 am, US Futures are pointing toward a gap higher at the opening bell.  The DIA implies a +1.04% open, the SPY is implying a +0.84% open, and the QQQ implies a +0.53% open at this hour.  10-year bond yields are up to 2.066% and Oil (WTI) is plummeting 5.7% to $103.09/barrel in early trading.

There is no major economic news scheduled for release on Monday.  The major earnings reports scheduled for release before the open Monday is limited to GOL.  Then after the close MTN reports.    

Volatility still reigns as we are seeing another gap take shape for the open today. This move comes on without any particularly good news, other than the rumor of progress in peace talks, but also in the face of more Covid problems in China. So, remember that the pattern lately has been either to fade the gap or at least have a wild roller-coaster ride after the gap. Also, keep in mind that with the Fed news coming Wednesday, we may see a “wait and see” mood take over the market, especially after the morning gap settles. We’ve seen a lot of chop on decreased volumes lately and the trend remains bearish. So, trade carefully.

Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: APPH, HTZ, NET, XRT, CAR, WMT, SBUX, ON, CRSP, CHPT, URA, SQQQ, CLOV. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Stocks gapped down about 1.2% on a +7.9% Annual CPI numbers Thursday and then put in a roller-coaster morning that found the lows of the day about noon.  However, from there stocks rallied slow and steady the rest of the day.  This left us with white body candles with significant wicks (Doji type in the QQQ) but had recovered most of the gap down in the large-cap indices by day end.  It is worth noting that volume was extremely low in all 3 major indices.  On the day, SPY lost 0.47%, DIA lost 0.37%, and QQQ lost 1.11%.  The VXX fell over 4% to 25.83 and T2122 fell back to the mid-range at 51.38.  10-year bond yields shot up to 1.992% and Oil (WTI) fell another 2.16% to $106.25/barrel.

After the close, DOCU, NTCO, and ULTA reported beats on both lines.  However, both ORCL and ZUMZ missed on earnings while reporting in line on revenue.  ORCL said that losses on investments into a gene-sequencing company and ARM server chip manufacturer (neither listed) were the cause of the earnings miss.  After hours, electric vehicle maker RIVN also missed on earnings and announced they expect to produce only 25,000 vehicles this year, far below Wall Street expectations.

SNAP Case Study | Actual Trade

On the Russia story, they started to retaliate against Western sanctions on Thursday.  Russia Prime Minister Mishustin said that legislation has already been drafted to seize the assets of Western companies that have suspended operations in their country.  This would include over 240 western companies such as MCD, AAPL, BP, SHEL, XOM, GS, JPM, KO, MSFT, MSFT, IBM, TM, etc.  They also banned the export of a wide range of products including telecom, medical, automotive, electrical, and agricultural products through the end of 2022. This export ban is mainly a PR stunt since importers of such equipment have largely already ended those sales.  On the “companies exiting Russia” front, both GS and JPM joined the list by announcing they’re in the process of winding down Russian operations.  Beyond all this, Western banks such as C, CS, DB, and GS are owed more than $121 billion by Russia. Those banks told Bloomberg they are now expecting at least significant losses (if they are paid in Rubles that cannot be moved out of Russia, as the Ruble devalues) and possibly total losses on those loans. On the ground in Ukraine, Russia has expanded its offensive to the West and is now attacking cities within 70 miles of the Polish border.

The ECB made a surprise announcement that it will end its bond-buying program.  However, this will not take effect until Q3 and only if economic data continues to support that faster than planned move.  It is worth noting that ECB President Lagarde said the war in Ukraine “is having a material impact on economic activity and inflation” and therefore circumstances may change.  Still, ending buying in Q3 is the latest plan.

Overnight, the Asian markets were mixed but leaned to the red side.  Japan (-2.05%), Hong Kong (-1.61%), and Taiwan (-0.97%) led the region lower.  In Europe, stocks are strongly in the green across the board at mid-day. The FTSE (+1.69%), DAX (+3.21%), and CAC (+2.46%) are representative of the continent in early afternoon trading.  As of 7:30 am, US Futures are also pointing toward a strongly green start to the day.  The DIA implies a +1.25% open, the SPY is implying a +1.39% open, and the QQQ implies a +1.56% open at this hour.  10-year bond yields have breached the 2% level and Oil (WTI) is up modestly to $1.06.65/barrel in early trading.

The major economic news scheduled for release on Friday is limited to Michigan Consumer Sentiment (10 am).  There are no major earnings reports scheduled for release Friday.    

Once again, volatility reigns as we are seeing another gap in the opposite direction today. This move comes on without any particularly good news and therefore must be seen to be whiplash (reaction to over-reaction). Just remember that the pattern lately has been either to fade the gap or at least have a wild roller-coaster ride after the gap. Also, remember that this is Friday and there is a weekend news cycle to live through before we can adjust any trades. So, prepare yourself for that situation by getting flat, small, or hedged. Who knows what the news out of Ukraine could be this weekend? New scanctions? Escalation? Progress from talks now that Russia is in a better position? It could go any direction.

I know it is a very hard thing to do…the right thing often is. However, if a volatile, choppy market is not your wheelhouse and you aren’t able to become that fast daytrader, sitting on your hands is the best move you could make. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. Trading is a marathon, not a sprint. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

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

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets made a massive gap higher (2% to 2.5%) Wednesday after commodity prices began to fall the previous night.  However, the rest of the day was a roller-coaster ride with a slightly bullish trend.  This resulted in the best day since the recovery from the Covid Crash (June 2020).  We were left with a Spinning Top in the SPY, a Doji in the DIA, and a white candle with larger wicks on both ends in the QQQ.  All 3 of the indices did test, but none of them was able to break through, their T-line by day end.  On the day, SPY gained 2.66%, DIA gained 2.10%, and QQQ gained 3.60%.  The VXX fell 4% to 27.03 and T2122 rose to just outside the overbought territory at 79.41.  10-year bond yields spiked to 1.943% and Oil (WTI) took a tremendous beating (down 13% at one point before rallying), closing down 10.54% to $110.66/barrel.  Wheat also fell more than 6.5% on the day.

After the close, AMZN announced a 20-for-1 stock split for owners of record on May 27 (effective June 3, 2022).  In addition, the company announced a $10 billion stock buyback program, which replaces the current $5 billion buyback program.  The stock spiked over 13.5% on the news during post-market trading. Also after the close, LU, FNV, KRO, and CRWD all reported beats on both lines.  However, BEKE missed on earnings while beating on revenue.

SNAP Case Study | Actual Trade

Overnight, the House passed a bipartisan $1.5 trillion omnibus spending bill (including $13.6 billion for Ukraine) Wednesday evening.  Covid-19 Relief spending was stripped out to avoid contention and make it easier to get to 60 votes in the Senate.  The Senate will take up the bill today and it needs to be passed by Friday to avoid a government shutdown.

Related to Oil prices, US Energy Sec. Granholm called on US oil and gas companies to increase production.  However, many oil industry officials at the conference expressed reluctance to add even more capacity.  The executives noted that the White House had also asked OPEC to increase output. (On that front, the UAE openly called Wednesday for OPEC to increase production to replace any Russian oil that is banned by the West.)  So, US companies fear the cost and long-term nature of adding US capacity when it is possible that supply may have overcome the current deficit by the time that output was online (i.e. prices may have come back down).  There was also an unstated concern about US government policies intended to promote competing “green” alternatives to oil and gas. Those concerns aside, US producers have already increased US output by a million barrels per day this year. 

On the Russian invasion story, CAT and DE joined the chorus of companies that have suspended sales and business operations to Russia.  MCD clarified that their closure of 850 restaurants in Russia will cost them $50 million per month. Meanwhile, Russia has escalated the bombardment of surrounded cities.  In Mariupol, they bombed a children’s hospital as well as the civilian evacuation corridor, killing several people.  Russian Foreign Minister Lavrov also claimed they have found an alternative buyer for oil and gas that is now being sold to Europe.

Overnight, the Asian markets were strongly green across the board.  Japan (+3.94%), Taiwan (+2.46%), and Shenzhen (+2.18%) led the way higher.  However, in Europe, stocks are mostly red (with the exceptions of Norway (+0.14%) and Finland (+0.22%)) at mid-day.  The FTSE (-1.30%), DAX (-3.10%), and CAC (-2.43%) are leading the way lower in early afternoon trading.  As of 7:30 am, US Futures are pointing toward a gap lower at the bell.  The DIA implies a -0.89% open, the SPY is implying a -0.89% open, and the QQQ implies a -1.31% open at this hour.  10-year bond yields are up to 1.953% and Oil (WTI) has spiked another 4.35% to $113.40/barrel in early trading.

The major economic news scheduled for release on Thursday is limited to February CPI and Weekly Initial Jobless Claims (both at 8:30 am) and Feb. Federal Budget Balance (2 pm).  The major earnings reports scheduled for release before the open are limited to BZUN, CLVT, GCO, and JD.  Then after the close DOCU, ORCL, and ULTA report.   

Volatility remains king as it appears we will see a significant gap down at the open. However, there is CPI data before the open and that may change things. The question is whether hot CPI data will lead to more fear when a rate hike next week is already assumed to be a certainty. Regardless of how we open, be wary of intraday swings and be very cautious. So, if you are trading, trade small, be nimble, and be prepared to accept volatility-caused pain.

Trading is a marathon, not a sprint. So, ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: OPCH, OXY, WU, OLED, PENN, RKT, KO, ENPH, BCC, UPST, HPQ, BLNK, PLUG, NET, RUN, FSLR. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

The volatility train kept rolling Tuesday with premarkets falling back to nominally flat opens that were followed by an all-day roller-coaster.  We closed on a downswing.  This gave us huge, high-wick, inverted hammer (I don’t believe those are bullish) type candles in the SPY and DIA.  Meanwhile, the QQQ printed a black, long-legged Doji.  All 3 major indices are close to challenging the breakout of their “dreaded-h” patterns.  On the day, SPY lost 0.74%, DIA lost 0.58%, and QQQ lost 0.46%.  The VXX was down 1% to 28.15 and T2122 remains in the low end of the midrange at 29.12.  10-year bond yields rose to 1.852% and Oil (WTI) spiked almost 4.5% to $124.75/barrel.

The Russian invasion and sanctions continue to be the story driving markets.  MCD stock took a big hit (almost 5%) Monday as it was noted over the weekend that MCD has a larger footprint in Russia than other fast-food chains.  After the close, Russia threatened to stop gas flows to Europe and said the world will see $300 Oil if the WOn the Russian invasion and sanctions front, MCD and SBUX both announced they are closing all Russian locations (MCD has 850) until further notice.  KO followed suit by also suspending business in Russia.  PEP announced they have suspended soda sales, but will continue to sell snacks and other products to Russia.  President Biden also announced a ban on the import of Russian Oil/Gas and the UK announced they will be completely out of Russian oil by the end of this year.  Then overnight, commodity prices fell as traders at least temporarily came to the conclusion the initial reaction (such as a 350% spike in Nickel prices) was an over-reaction.

SNAP Case Study | Actual Trade

AAPL had a blasé product announcement event Tuesday.  The company unexpectedly raised the price of their replacement entry-level iPhone SE by 7.5% (to $429 from $399), showing that they are not concerned about gaining market share in the mid-range phone market (the one phone segment AAPL lags far behind).  Other announcements were as expected, with new iPhone colors, a new iPad, a faster Mac, and a 27” display, all of which are priced at the extreme end of those product categories relative to competitors.

Overnight, President Biden issued an executive order on cryptocurrencies.  The order basically sets up a framework for regulating cryptocurrencies to protect consumers, businesses, and investors while mitigating systemic risk.  He also directed the government to explore the technology and capacity needs for a potential Central Bank Digital Currency (such as China now has).  While critics immediately said they fear the move will make the US fall behind other countries due to the regulation, others such as exchange managers say it is a constructive approach.  In either case, Bitcoin spiked 8% on the news as markets love the removal of uncertainty.

After the close, CASY, ABM, and SFIX all beat on both lines.  However, SFIX shares plummeted after the company announced that it is slashing forecasts for the full year.  So far this morning, ZIM, THO, KFY, and REVG have all reported beats on both lines.  However, ADDYY, CPB, and DSEY all reported beats on earnings while missing on revenue.

Overnight, the Asian markets were mixed but leaned slightly green.  Shanghai (-1.13%), Shenzhen (-1.12%), and South Korea (-1.09%) paced the losers with India (+2.07%), Thailand (+1.52%), and Singapore (+1.48%) leading the more plentiful gainers.  In Europe, stocks are mostly (and strongly) green at mid-day.  The FTSE (+1.35%) lags with the DAX (+4.50%) and CAC (+4.53%) leading most of the rest in a bull charge.  Only Norway and Denmark see any red and they are only fractionally down.  As of 7:30 am, US Futures are pointing toward a strong gap higher.  The DIA implies a +1.44% open, the SPY is implying a +1.58% open, and the QQQ implies a +1.98% open at this hour.  10-year bond yields are up to 1.91% and Oil (WTI) is down 2.26% to $120.87 in early trading.

The major economic news scheduled for release on Wednesday is limited to January JOLTS (10 am), Crude Oil Inventories (10:30 am), and the WASDE report (noon).  The major earnings reports scheduled for release before the open are limited to ADDYY, CPB, PLCE, DSEY, KFY, REVG, THO, UNFI, and ZIM.  Then after the close SID, BEKE, LU, and NTCO report.  

Once again, volatility is king as it appears we will see a significant gap at the open. However, Russian bombing of Ukrainian cities is picking up pace as it now appears the Russian strategy is to reduce the major cities to rubble before entering. The question is whether the bulls can sustain the early momentum after the open given the various threats to European gas supplies and the increasing likelihood of at least partial western energy sanctions. Remain very cautious. A gap up DOES NOT indicate a bottom has been put in. So, if you are trading, trade small, be nimble, and be prepared to accept volatility-caused pain.

Trading is a marathon, not a sprint. So, ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: BITO, WOOF, ZIM, OSTK, DLTR, PLUG, TSLA, MDT, MVIS, AAPL, CLOV, FSK, OLED, ENPH. You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

On the strength of the Russian invasion and increased fear over what it may do to the global economy, the bears controlled the market all day long Monday.  The open was relatively flat, but from that point all 3 major indices sold off the entire day, closing on the lows.  This left us with massive black candles heading toward the breakout point of Bearish-h patterns in all those indices.  On the day, SPY lost 2.91%, DIA lost 2.37% and QQQ lost 3.69%.  The VXX was up nearly 9% to 28.49 and T2122 still has not reached oversold territory, sitting at 25.75.  10-year bond yields rose to 1.782% and Oil (ETI) fell back from the highs, but still gained 3.76% to $120.05/barrel.

The Russian invasion and sanctions continue to be the story driving markets.  MCD stock took a big hit (almost 5%) Monday as it was noted over the weekend that MCD has a larger footprint in Russia than other fast-food chains.  After the close, Russia threatened to stop gas flows to Europe and said the world will see $300 Oil if the West puts sanctions on Russian energy exports.  Russian Deputy Prime Minister Novak said, “no decision on whether to shut down the flow had been taken yet and the pipeline is running at full capacity now.”  However, the threat was not veiled.  European market gas prices surged almost 80% in reaction to the threat. (Roughly 40% of European natural gas and 25% of the oil comes from Russia.) On the front, the last major holdout RDS.A apologized for buying a shipment of Russian oil after the invasion and announced they will stop buying from Russia. They join XOM, BP, and others in boycotting Russian Oil.

SNAP Case Study | Actual Trade

Overnight, the London Metals Exchange was forced to halt the trading of Nickel after an unprecedented 250% spike in the metal.  (Russia is the world’s largest exporter of nickel.)  As with Wheat (Russia and Ukraine produce one-third of the world’s supply) and Oil (Russia is the third-largest exporter), commodities are on a rocketship with the disruptions caused by the Russian aggression.

AAPL will hold its first product launch event of the year today.  Bloomberg reports that the company will announce a low-cost ($399) version of its iPhone, replacing a non-5G model launched in 2019.  Cupertino is also supposed to announce a new mid-range iPad Air, a revised Mac computer, and a new version (15.4) of the iOS operating system

Overnight, the Asian markets were mostly deeply in the red again.  India (+0.95%) was the lone green in the region.  However, Shenzhen (-2.62%), Shanghai (-2.35%), and Taiwan (-2.06%) led the region lower.  In Europe, stocks are mixed but lean to the green side at mid-day.  The FTSE (+0.14%), DAX (+0.98%), and CAC (+2.00%) are fairly indicative of early afternoon trading on the continent with 4 smaller exchanges in the red (Athens -2.63% is an outlier) and Russia remaining closed.  As of 7:30 am, US Futures are pointing toward a green open.  The DIA implies a +0.57% open, the SPY is implying a +0.63% open, and the QQQ implies a +0.39% open at this hour.  10-year bond yields have rebounded to 1.851% and Oil (WTI) is up another 3% to $122.96/barrel in early trading.

The major economic news scheduled for release on Tuesday is limited to January Imports/Exports and January Trade Balance (all at 8:30 am).  However, the EIA will also publish its Short-Term Energy Outlook at noon, which may garner some headlines given the Oil situation.  The major earnings reports scheduled for release before the open are limited to DKS and WOOF.  Then after the close ABM, CASY, and SFIX reports.   

The volatility parade continues as the Russian bombing of Ukrainian cities picks up pace. Today it looks like the gap will be bullish after yesterday’s all-day selloff. The question is whether the bulls can sustain momentum after the open given the overnight threats to European gas supplies and the likelihood of some sort of western energy sanctions. So, remain very cautious. If you are trading, trade small, be nimble, and be prepared to accept volatility-caused pain.

Trading is a marathon, not a sprint. So, ask yourself whether you have an edge in this sort of volatility. If not, sitting on your hands may be the best move you could make. Remember that you don’t have to trade every day (or even week) and you definitely don’t need to chase gaps and moves. So, stick to your trading rules and manage the things that you can control. Trade with the trend, don’t chase, keep consistently taking profits when you have them, and move your stops in your favor. The first rule of making money in the market is to not lose big money in the market. So, don’t be stubborn, and protect yourself from yourself. If you are wrong, just admit it and take your loss. (That’s why we set stops in the first place.)

Ed

Swing Trade Ideas for your consideration and watchlist: EOLS, ENPH, CLOV, OLED, OSTK, MDT, LHCG, PFE, CHPT, LUMN, FCEL, PLUG, TAN You can find Rick’s review of tickers on his YouTube Channel here. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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