Broader markets gapped higher to start the day Wednesday while DIA diverged.  SPY gapped up 1.31%, DIA opened just 0.03% higher, gapped up a whopping 2.37%.  At that point, all three major index ETFs rallied for an hour.  From that point QQQ and SPY traded sideways and drifted back to their opening level by 1:30 p.m.  Meanwhile, DIA continued its post-open rally until 1:30 p.m.  From there, all three rallied until 3 p.m. when they rode a rollercoaster down and back up and then back down during the last hour as profit-taking kicked in. This action gave us gap-up, white-bodied Spinning Top candles in all three of those ETFs.  SPY and DIA had most of their wicks on top while QQQ had more balanced wicks and larger body.  SPY and QQQ also rejoined DIA above their respective T-lines (8ema).  This all happened on average volume in SPY and QQQ as well as well above-average volume in the DIA.

On the day, nine of the 10 sectors were in the green with Technology (+2.93%) way out in front of Basic Materials (+1.58%) and the rest of the sectors.  Meanwhile, it was Consumer Defensive (-0.09%) that was the only sector in the red (barely).  At the same time, SPY gained 1.63%, DIA gained 0.27%, and QQQ gained 2.96%.  VXX fell 2.36% to close at 46.25.  Meanwhile, T2122 gained a fraction, remaining at the very bottom of the overbought area at 80.54.  On the bond front, 10-year bond yields plummeted to 4.031% and Oil (WTI) spiked 5.02% to close at $78.47 per barrel.  So, the Bears got handed the heads at the open and in the first-hour follow-through.  Then the pre and during FOMC rally kicked them again.  However, the profit-taking eased their pain a bit at the end of the day.  Again, it was AI that led the day after AMD’s (+4.36%) great earnings Tuesday night and then the Reuter’s report that could stoke sales for NVDA (+12.81%) as the US supposedly will allow allies to ship chip-making equipment to China.  In short, it was a turn-around day for SPY and QQQ while DIA continues its rally, coming within less than half a percent of its all-time high. (It is also worth noting that NVDA traded more than three times as much dollar volume than the next closest ticker in the market Wednesday.)

The major economic news scheduled for Wednesday included the July ADP Nonfarm Employment Change, which showed a much smaller increase than expected at +122k (compared to a forecasted +147k and June’s +155k).  Later, the Q2 Employment Cost Index was better than anticipated at +0.9% (versus a +1.0% forecast and down significantly from the Q1 +1.2% number).  Then, the July Chicago PMI was down but still a bit better than predicted at 45.3 (compared to a 44.8 forecast and the June 47.4 reading).  Moments later, the June Pending Home Sales were much, much stronger than expected at +4.8% (versus a +1.4% forecast and May’s -1.9% value).  On the oil front, Weekly EIA Crude Oil Inventories showed a bigger drawdown that predicted at -3.436 million barrels (compared to a -1.600-million-barrel estimate and the prior week’s -3.741-million-barrel drawdown.  Later, as expected, the FOMC held rates steady.

In Fed speak news, at his FOMC Meeting press conference, Fed Chair Powell said that recent inflation data was giving the committee greater confidence that inflation is moving back toward the 2% target.  Powell said, “There has been some further progress toward the Committee’s 2% objective.”  He continued by saying there was a growing POSSIBILITY of a rate cut in September, saying, “there is a growing sense of confidence that you could move at the next meeting” (as long as inflation data reaffirms the current softening trend).  When pressed for a rate cut commitment by reporters, Powell replied, “We have made no decisions on future meetings.”

After the close, ACHC, AFL, AEM, ALGT, ALL, ANSS, APA, ARM, AVB, CHRW, CVNA, COKE, CTSH, COMP, CTVA, CACC, EBAY, EXAS, FMC, GNW, GRBK, IR, JAZZ, KGC, LRCX, LUNMF, META, MGM, MAA, NE, CNXN, PPC, QGEN, QCOM, QDEL, RRX, RUSHA, RHP, TTEK, VICI, and WDC all reported beats on both the revenue and earnings lines.  Meanwhile, AGI, BALY, BBSI, BV, CAKE, CMPR, CODI, CRBG, DLX, ES, GLF, GT, THG, HLF, HST, IEX, KD, MKL, MET, MUSA, NFG, PGRE, PK, PTC, PTVE, SON, SSRM, and TDOC missed on revenue while beating earnings.  On the side, ALB, AWK, ETSY, EXPI, SCI, and TS beat on revenue while missing on earnings.  However, AIG, AR, CWH, EG, VAC, MYRG, SUI, TWI, and RIG missed on both the top and bottom lines.

In stock news, on Wednesday, JBLU announced it has agreed to buy “sustainable aviation fuel” from VLO for use on NY flights. Later, Bloomberg reported that DIA is planning to eliminate around 140 jobs from its television unit (about 2% of that staff). It also plans to cut 13% of the NatGeo staff (number unknown).  At the same time, Reuters reported that C has repeatedly breached a Fed rule (regulations W) that limits intercompany transactions, leading to errors in internal liquidity reporting.  (No formal investigation by the Fed has been announced yet.)  Later, ALB (the world’s largest lithium producer) announced another round of cost-cutting, citing tumbling lithium prices globally.

In stock legal and governmental news, on Wednesday, INTC won the London case in which its private rival R2 had sought an injunction preventing the sale of INTC chips due to patent infringement.  (A similar case is pending in the US.)  At the same time, MO said it had sent data to the FDA on the growth of illegal “nicotine pouches” telling the agency this is the early stage of a massive black market for vape products in the US.  (MO and BTI say they have lost substantial US sales to illegal, unapproved nicotine products.)  Later, DAL put a number on its losses from the CRWD-caused IT outage that caused it to cancel thousands of flights.  DAL said it lost $500 million after announcing Tuesday it would take legal action against CRWD and MSFT over the disaster. Separately, CRWD shareholders filed suit against the company related to the outage, alleging the company defrauded them by concealing the inadequate state of its software quality system. 

Elsewhere, UBS filed suit against BAC for $200 million over allegations stemming from the 2008 global financial crisis. The suit alleges that BAC refused to cover the cost of risky mortgages issued prior to the crisis, which Countrywide had sold as bundles and had agreed to indemnify against being poorly written or fraudulent.  BAC later acquired Countrywide.  Later, Russia fined GOOGL $58k for failing to restore pro-Russia disinformation YouTube channels that GOOGL had banned.  At the same time, the NHTSA announced that HYMTF (Hyundai) will recall 49k vehicles over unintentional airbag deactivation or deployment.  Later, Reuters reported that a TSLA vehicle that hit and killed a Seattle motorcyclist was in “Full Self-Driving” mode.  The NHTSA acknowledged the incident and said it already had an investigation underway related to similar cases.

Overnight, Asian markets were mixed with half of the 12 exchanges in the red and half in the green.  Japan (-2.49%) and Singapore (-1.04%) paced the losses while Taiwan (+1.99%) and New Zealand (+0.67%) led the gainers.  In Europe, we see a similar mixed picture at midday with eight of the 15 bourses in the red while seven are showing green.  The CAC (-0.83%), DAX (-0.68%), and FTSE (+0.29%) lead the region on volume in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward modest follow-through on Wednesday’s gains.  The DIA implies a flat +0.05% open, the SPY is implying a +0.44% open, and the QQQ implies a +0.53% open at this hour.  At the same time, 10-Year bond yields are at 4.063% and Oil (WTI) is up almost a percent to $78.63 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, and Preliminary Q2 Unit Labor Costs (all at 8:30 a.m.), July S&P Global Mfg. PMI (9:45 a.m.), June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices (all at 10 a.m.) and the Fed Balance Sheet (4:30 p.m.).  The major earnings reports before the open include ADT, AER, APD, ALE, ATUS, AME, BUD, HOUS, APG, APO, APTV, MT, ARW, AXTA, BALL, BHC, BCE, BDX, BDC, BIIB, OWL, CNQ, CVE, CI, CIGI, COP, CROX, CMI, D, LPG, DRVN, DNB, ETN, ETR, NVRI, EXC, RACE, AG, FTDR, GIL, HSY, HTZ, DINO, HII, NSIT, NSP, IBP, ICE, IRM, ITRI, ITT, JHG, K, KIM, KEX, KTB, LH, LAUR, LTH, LNC, LAD, MIDD, NBIX, PATK, PBF, BTU, PNW, PWR, REGN, RBLX, SABR, SNDR, SHEL, SIRI, SO, STGW, TRGP, TFX, TRI, TM, TAC, UPBD, VAL, GWW, W, WEN, WCC, XEL, and XPO. Then, after the close, AES, AL, ALHC, LNT, AMZN, AEE, AAPL, ACA, TEAM, BECN, BZH, BIO, SQ, BKNG, BFAM, CE, CGAU, CC, CIVI, CLX, COIN, ED, CTRA, DASH, DORM, DKNG, EOG, ERO, FND, GEN, GDDY, HUBG, ICFI, INTC, LEG, MTZ, MATX, MELI, MTD, MCHP, MSI, NXT, OTEX, OPEN, OEC, POST, PRU, RGA, RMD, RNG, RKT, ROKU, RYAN, SEM, SNAP, SWN, TROX, TPC, TWLO, X, VTR, VRTX, and WSC report.

In economic news later this week, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.

In terms of earnings reports later this week, on Friday, ARCB, ARES, ABG, BSAC, BERY, BTSG, BEPC, BEP, CBOE, GTLS, CVX, CHD, CNK, ENB, ESAB, XOM, FLR, FYBR, IMO, LIN, LYB, MGA, NMRK, OMI, PRGO, PAA, PAGP, PPL, TIXT, USM, and AMC report.

So far this morning, AER, ABEV, BUD, AXTA, BIIB, BIP. CNQ, CI, CROX, DLAKY, ETN, ETR, NVRI, EXC, GCI, GEL, GIL, GVA, DINO, HII, ING, IRM, KIM, KTB, LH, LAUR, LTH, LNC, LAD, REGN, SCGLY, STGW, SCMWY, TRP, TRI, TIPT, TM, TRN, and UPBD all reported beats on both the revenue and earnings lines.  Meanwhile, APD, ALE, AME, APTV, BALL, BDX, LPG, ITT, MIDD, SHEL, TFX, W, and XPO all missed on revenue while beating on earnings.  On the other side, APO, CVE, NBIX, PBF, PWR, and VNT beat on revenue while missing on earnings.  However, ADT, ATUS, MT, BCE, COP, HSY, SAVE, WEN, WCC, and XEL missed on both the top and bottom lines.

In miscellaneous news, on Wednesday, Reuters reported that US restrictions on the export of chipmaking equipment to China will exempt some US allies.  However, later, Bloomberg reported that the US is considering new restrictions on AI memory chip sales to China.  (MU is the main US supplier of such chips.)  Meanwhile, billionaire Bill Ackman canceled the IPO of his Pershing Square US Closed-end fund (scheduled for Tuesday) when it became clear he would not raise nearly as much money as he had hoped. 

In geopolitical news, Israel escalated and expanded its conflicts by killing the Hamas political leader (and main negotiator with Israel related to a cease fire and release of hostages) by missile strike in Iran.  This raises fears of a broader regional conflict.  It also helps PM Netanyahu keep the conflicts going, which ensures his continuing as PM.  Elsewhere, Ukraine received the first group of F-16 fighter-bombers.  These are not coming directly from the US (although LMT and GD will get significant parts and maintenance supply contracts from this transfer).  However, the US will also sell F-35s (made by LMT and sub-contractor NOC) to back-fill the jets sent to Ukraine.

With that background, it looks as if the market is indecisively looking to follow-through on Wednesday’s gains. All three major index ETFs are higher. SPY and QQQ both gapped higher, traded back down, then reversed and are near the highs of the premarket at the moment. This leaves them with a lot of wick and white-bodied Hammer type candles. Meanwhile, DIA gapped down, immediately reverses and has printed a white-bodied candle with no wick, sitting at early session highs. So, the Bulls are in control in the premarket, they just did it different ways between the narrower DIA and broader SPY and QQQ ETFs. All three major index ETFs are above their T-line (8ema) and pushing higher from the previous session. This means the short-term, mid-term, and longer-term, the trends are all bullish and within a few percent of their all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator is right at the bottom edge of its overbought area this morning. So, there is still room to run either direction, but it would seem like again the Bears have a little more slack with which to work. With regard to those 10 big dog tickers, seven of the 10 are in the green so far in the premarket as META (+8.12%) is the leader followed by NVDA (+2.93%) which brings heavy volume in addition to its price move. TSLA (-0.55%) is by far the laggard of the 10. So, the wind seems behind those tech big dogs this morning.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

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Tuesday brought a Bull trap at the open.  SPY gapped up 0.27%, DIA opened 0.07% higher, and QQQ gapped up 0.44%.  However, as mentioned, this was a Bull Trap as all three major index ETFs sold off.  QQQ sold off most sharply, recrossing its opening gap by 10 a.m. and trading sharply lower until 1 p.m. Meanwhile, DIA diverged by following through until 10 a.m. and then sold off the slowest of the three, not really going negative, but reaching the lows at 1 p.m. At the same time, SPY was somewhere between QQQ and DIA, recrossing its opening gap by 10:30 a.m. and reaching the lows by 1 p.m.  From there, all three major index ETFs put in a modest rally in waves. This action gave us a black-bodied candle with modest upper wick and large lower wick in the SPY.  (SPY also retested and failed its T-line (8ema) during the day.  In the DIA, we saw a white-bodied Spinning Top type candle with the larger part of the wick at the top.  Finally, QQQ gave us a large black-bodied candle with a larger lower wick.  This happened on a bit below-average volume in the SPY, DIA, and QQQ.

On the day, the 10 sectors were evenly split with Financial Services (+0.86%) and Energy (+0.84%) leading the gainers. Meanwhile, Technology (-1.43%) was the biggest mover and way out in front leading the losing sectors lower.  At the same time, SPY fell 0.51%, DIA gained 0.48%, and QQQ dropped 1.37%.  VXX jumped 3.18% to close at 47.37.  Meanwhile, T2122 climbed into the very bottom of the overbought area at 80.39.  On the bond front, 10-year bond yields dropped to close at 4.14% and Oil (WTI) dropped another 0.71% to close at $75.28 per barrel.  So, we now find ourselves with SPY trying to hold on to the support of the June lows (and its 50sma) while QQQ being brutalized (both now in Dreaded h patterns).  However, DIA didn’t seem to get the message and remains in a short-term uptrend.  (QQQ is down more than 9% from its all-time, and recent, high while SPY is down just under 4% from its all-time high, and DIA is 1.5% from its own.)  Despite these divergences, the intraday volatility (whipsaw) remains rough in all three.

The major economic news scheduled Tuesday included July Conf. Board Consumer Confidence, which came in up and a touch stronger than expected at 100.3 (versus a forecast of 99.7 and the June reading or 97.8).  At the same time, the June JOLTs Job Openings were down, but still higher than predicted at 8.184 million (compared to a forecast of 8.020 million and the May value of 8.230 million).  Then, after the close, the API Weekly Crude Oil Stocks report showed a larger drawdown at 4.495 million barrels (versus the prior week’s -3.900-million-barrel drawdown).

After the close, AMD, ACGL, ANET, EQH, AXS, AX, BXP, CP, EA, EXR, FSLR, HLI, LFUS, MTCH, MSFT, MOD, NOG, PINS, QRVO, SWKS, SYK, UMBF, UNM, and WU all reported beats on both the revenue and earnings lines.  Meanwhile, FE, LSTR, LYV, MCY, MDLZ, MEOH, NGD, OI, OVV, PSA, QUAD, SBUX, and TEX missed on revenue while beating on earnings.  However, CZR, HA, SW, TX, and WERN missed on both the top and bottom lines. (After-hours trading was disappointed in MSFT cloud services despite beats on both lines. However, traders liked AMD after-hours and their raise of guidance on AI and otherwise strong chip demand.)

In stock news, on Tuesday, the Wall Steet Journal reported on the results of its own investigation of TSLA’s “Autopilot” system. The article highlighted longstanding “issues” after analyzing 200 TSLA Autopilot crashes. Later, Reuters reported the BRKB has sold more than $3 billion worth of BAC shares this month.  (This report came after the latest tranche of 18.4 million shares between July 25 and July 29.)  At the same time, SAVE (a no-frills, low-cost airline) announced plans to move into the higher-margin business class market in Europe.  Later, SLTA announced it is offering a new round of voluntary buyouts to US salaried workers.  (The company made the same offer twice in 2023.) 

Elsewhere, CNP (which has been in the crosshairs due to slow recovery of electric services in Houston after Hurricane Beryl) said that it now expects up to $1.3 billion in “restoration costs” from the storm.  Later, Reuters reported exclusively that BLK is in talks to acquire ROIC.  At the same time, Bloomberg reported INTC is now planning to cut thousands of jobs as part of a cost-cutting program.  (The report said the cuts could be announced this week.)  After the close, MSFT said it now expects an outage in its Azure cloud service and Office365 to be resolved by the end of the night.  MSFT said the outage, which began early Tuesday, was caused by a surge in usage.

In stock legal and governmental news, on Tuesday, META agreed to pay $1.4 billion to the state of TX to settle the state’s lawsuit accusing the company of illegally using its facial-recognition technology to collect user biometric data.  Separately, META agreed to pay $650 million to settle a class-action biometric data privacy lawsuit in IL.  Later, the NHTSA announced TSLA will recall 1.85 million 2021 to 2024 vehicles related to a software failure to detect an unlatched hood.  At the same time, the Consumer Product Safety Administration issued a directive stating that AMZN is responsible for the sale of any hazardous products by third-parties through their platform.  (AMZN said it would appeal the ruling.  Meanwhile, the FDA issued a similar directive to both AMZN and WMT related to products like chemical peels and other dangerous chemicals sold by third-parties through the company website. 

Elsewhere, AMP filed suit against LPLA alleging the latter systematically harvested and misused confidential client information in violation of multiple securities laws.  Later, the US Dept. of Justice filed a civil suit against NSC alleging the company is delaying passenger trains on the NYC to New Orleans route in violation of federal law.  At the same time, a VA Appeals Court overturned a $2 billion jury verdict against PEGA (payable to APPN) for trade secret theft.  The judge said the original court have committed a series of errors.  (APPN said it would appeal the loss.)  Later, a lawsuit was filed against WFC, alleging the company mismanaged the health insurance plan of tens of thousands of employees, causing them to overpay for prescription drugs.  (The suit claims examples where the plan caused 400% overcharges to employees on some drugs.)  After the close, Reuters reported that EADSY (Airbus) faces a criminal probe in the UK over potential violations of export control laws.

Overnight, Asian markets were nearly green across the board.  Only Taiwan (-0.11%) was in the red while Shenzhen (+3.37%), Shanghai (+2.06%), and Hong Kong (+2.01%) led the region higher.  (This came as the Bank of Japan raised interest rates a quarter percent and there was a Reuters report that the US will exempt its allies from restrictions against selling chipmaking equipment to China…which is why China stocks soared.)  Meanwhile, in Europe, we see green across the board at midday.  The CAC (+1.27%), DAX (+0.44%, lagging behind due to Tuesday’s report of contracting German GDP), and FTSE (+1.30%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a divergent green start to the day.  The DIA implies a flat +0.09% open, the SPY is implying a +0.94% gap higher, and the QQQ implies a 1.56% gap higher to open trading.  At the same time, 10-Year bond yields are down to 4.133% and Oil (WTI) is spiking, up 3.31% to $77.19 per barrel in early trading.

The major economic news scheduled for Wednesday includes July ADP Nonfarm Employment Change (8:15 a.m.), Q2 Employment Cost Index (8:30 a.m.), July Chicago PMI (9:45 a.m.), June Pending Home Sales (10 a.m.), Weekly EIA Crude Oil Inventories (10:30 a.m.), Fed Interest Rate decision and the FOMC Statement (both at 2 p.m.), and Fed Chair Press Conference (2:30 p.m.).  The major earnings reports before the open include MO, ADP, AN, BBVA, BLCO, BA, BWA, BG, CDW, COR, GIB, CHEF, CLH, CNH, DAN, XRAY, DD, ENTG, FTS, GRMN, GTES, GEHC, GNRC, GGB, GSK, HES, HUM, HCM, JCI, KKR, KHC, LECO, MAR, MA, EDU, NCLH, OMF, OPCH, OSK, PSN, PAG, PNM, RITM, SMG, SLGN, SITE, SCL, SHOO, TMUS, TEF, TEVA, TKR, TT, TTMI, ULS, UMC, UTHR, VRSK, WAT, and WEC.  Then, after the close, ACHC, AFL, AEM, AGI, ALB, ALGT, ALL, AIG, AWK, ANSS, AR, APA, ARM, AVB, BALY, BBSI, BV, CHRW, CWH, CVNA, CAKE, CMPR, CTSH, CODI,  COMP, CRBG, CTVA, DLX, EBAY, ETSY, EG, ES, EXAS, EXPI, FMC, GLF, GT, THG, HLF, HST, IEX, IR, JAZZ, KGC, KD, LRCX, MKL, VAC, META, MET, MGM, MAA, MUSA, MYRG, NFG, NE, PTVE, PGRE, PK, CNXN, PTC, QGEN, QCOM, QDEL, RRX, RUSHA, RHP, SCI, SON, SSRM, SUI, TDOC, TS, TTEK, TWI, RIG, VICI, and WDC report. 

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices.  Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.

In terms of earnings reports later this week, on Thursday, we hear from ADT, AER, APD, ALE, ATUS, AME, BUD, HOUS, APG, APO, APTV, MT, ARW, AXTA, BALL, BHC, BCE, BDX, BDC, BIIB, OWL, CNQ, CVE, CI, CIGI, COP, CROX, CMI, D, LPG, DRVN, DNB, ETN, ETR, NVRI, EXC, RACE, AG, FTDR, GIL, HSY, HTZ, DINO, HII, NSIT, NSP, IBP, ICE, IRM, ITRI, ITT, JHG, K, KIM, KEX, KTB, LH, LAUR, LTH, LNC, LAD, MIDD, NBIX, PATK, PBF, BTU, PNW, PWR, REGN, RBLX, SABR, SNDR, SHEL, SIRI, SO, STGW, TRGP, TFX, TRI, TM, TAC, UPBD, VAL, GWW, W, WEN, WCC, XEL, XPO, AES, AL, ALHC, LNT, AMZN, AEE, AAPL, ACA, TEAM, BECN, BZH, BIO, SQ, BKNG, BFAM, CE, CGAU, CC, CIVI, CLX, COIN, ED, CTRA, DASH, DORM, DKNG, EOG, ERO, FND, GEN, GDDY, HUBG, ICFI, INTC, LEG, MTZ, MATX, MELI, MTD, MCHP, MSI, NXT, OTEX, OPEN, OEC, POST, PRU, RGA, RMD, RNG, RKT, ROKU, RYAN, SEM, SNAP, SWN, TROX, TPC, TWLO, X, VTR, VRTX, and WSC.  Finally, on Friday, ARCB, ARES, ABG, BSAC, BERY, BTSG, BEPC, BEP, CBOE, GTLS, CVX, CHD, CNK, ENB, ESAB, XOM, FLR, FYBR, IMO, LIN, LYB, MGA, NMRK, OMI, PRGO, PAA, PAGP, PPL, TIXT, USM, and AMC report.

So far this morning, ADP, BLCO, COR, CHEF, CNH, DAN, DD, ENTG, GRMN, GSK, HSBC, HUM, KKR, OMF, OPCH, OSK, PSN, RITM, SMG, SITE, SHOO, TMUS, TEF, TKR, TT, ULS, UMC, and WAT all reported beats on both the revenue and earnings lines.  Meanwhile, BBVA, BWA, GIB, FTS, GEHC, GNRC, JCI, MAR, PAG, PNM, SLGN, VRSK, and WEC reported missed on revenue while beating on earnings.  On the other side, MO, CCJ, and UTHR beat on revenue while missing on earnings.  However, AN, BG, CDW, XRAY, EDU, and SCL missed on both the top and bottom lines.

In miscellaneous news, on Tuesday evening Republican members of the Judiciary Committee demanded that more than 130 investors explain how they justify their environmental, social, and governance guidelines used to guide their investments.  The GOP said those investing guidelines may be found to violate antitrust laws, but in reality, Republicans are looking to stoke the issue in support of the fossil fuel industries (coal, oil, and gas).  Meanwhile, the US Trade Representative said Tuesday that new tariffs on an array of Chinese imports will be delayed for at least two weeks.  This comes as the USTR reviews 1,100 comments (appeals) related to specific products.  (The tariffs were scheduled to take effect on August 1.)  Elsewhere, Eurozone GDP rose 0.3% in Q2, sustain the same pace as it had in Q1.  France and Spain had better than expected results while Germany showed a 0.1% contraction in the quarter.

In geopolitical news, Israel escalated its conflict with Hezbollah (not Gaza) by striking Beirut, Lebanon with a missile in what it said was aimed at killing a senior leader of the group.  Israel said the strike was in response to the recent rocket attack that hit the occupied Golan Heights, killing 12 children. The Israeli IDF said the strike had killed a senior Hezbollah military commander, but some news outlets disputed that claim.  Regardless, five stories of the building struck were collapsed.  Casualties are not yet known.  (Fears are that Israeli PM Netanyahu is attempting to escalate their conflicts in an effort to retain his position as head of a War Cabinet.  Obviously, every escalation has an impact on global oil markets and shipping via the Suez Canal and Red Sea.)  Elsewhere, Venezuela’s election commission announced vote totals from Sunday’s Presidential election that showed 109% of citizens had voted.  This came as protests have escalated across that country where strongman Maduro clearly stole the election.  So far, some 750 arrests, (including leading opposition figures) and several deaths have been reported. However, in other places, police fled rather than attack protesters and crowds have even taken some military outposts.

With that background, it looks as if the Bulls are in control in the premarket. All three major index ETFs gapped higher to start the early session. However, DIA has sold back down toward Tuesday’s close. Meanwhile, SPY is following through with a large white-bodied candle while QQQ is printing an indecisive Doji after the gap to start the premarket. DIA remains above its T-line (8ema) while SPY is crossing above in the early session. QQQ remains below its T-line but is getting closer to a retest from below. The very short-term trend is now Bullish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain bullish and still not all that far from their all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator is right at the edge of its overbought area this morning. So, there is still room to run either direction, but it would seem like again the Bears have a little more slack with which to work. With regard to those 10 big dog tickers, eight of the 10 are in the green so far in the premarket as AMD (+8.39%) is the leader on its strong report and guidance while MSFT (-3.36%) is by far the laggard as it is punished for a strong report but weaker than expected cloud sales. As usual, NVDA (+6.79%) is well out in front of the others in terms of dollar volume traded and is spiking in sympathy with direct competitor AMD’s good report.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped higher on Monday, following the rest of the globe higher early.  SPY gapped up 0.30%, DIA opened 0.23% higher, and QQQ gapped up 0.62%.  From there all three major index ETFs rode a roller-coaster all day, recrossing the morning gap to reach the lows at 11:30 a.m., climbing back to the early highs about 12:30 p.m., and then selling off again, only to begin rebounding at about 2:30 p.m.  This action gave us indecisive candles in all three.  The SPY gave us a black-bodied Spinning Top type candle that did not quite retest its T-line (8ema) from below.  At the same time, DIA printed a black-bodied Hanging Man type candle that did not quite retest its T-line from above and QQQ printed a black-bodied Spinning Top candle.  This happened on well below-average volume in the SPY, DIA, and QQQ.

On the day, six of the 10 sectors were in the red with Energy (-0.87%) out front leading the market lower.  On the other side, Consumer Cyclical (+0.65%) held up significantly better than the other sector.  At the same time, SPY gained 0.06%, DIA fell 0.13%, and QQQ gained 0.20%.  VXX fell 1.47% to close at 46.09.  Meanwhile, T2122 dropped out of its overbought territory to close at the top of its mid-range at 78.40.  On the bond front, 10-year bond yields dropped to close at 416.8% and Oil (WTI) dropped another 1.74% to close at $75.83 per barrel.  So, we saw a gap higher in all three major index ETFs, followed by a volatile day.  The whipsaw was worse in the QQQ and of a lower magnitude in the DIA with SPY in between the other two.

There was no major economic news scheduled for Monday and, obviously, FOMC members could not speak with their July meeting starting Tuesday. 

After the close, AMKR, CNO, CR, CVI, ESI, EQR, FFIV, FLS, HOLX, NEU, SFM, and VIV all reported beats on both the revenue and earnings lines.  Meanwhile, CWK, ST, SBAC, WELL, and WWD missed on revenue while beating on earnings.  On the other side, SYM beat on revenue while missing on earnings.  However, CHK and SANM missed on both the top and bottom lines.

In stock news, on Monday, the CEO of L (James Tisch) announced he will step down on December 31, with his son Benjamin slated to take over as his successor.  At the same time, the Financial Times reported that Swiss pharma company Roche is now accelerating its development of a weight-loss drug after promising data from its early-stage trials.  Roche is reportedly now hoping to be available by 2028, two years earlier than previously planned.  (This would be a direct competitor to NVO’s Wegovy and LLY’s Zepbound weight-loss drugs.)  Later, OXY announced it will sell its Delaware Basis assets (located in TX and NM) to PR for about $818 million.  At the same time, AAPL reached its first labor agreement, striking a tentative deal with retail workers at its Towson, MD store.  (The union members still need to ratify the contract.)

Elsewhere, Reuters reported that EADSY (Airbus) is restructuring its Space Systems unit without waiting on the outcome of consolidation talks with Italy-based DRS and French THLLY (Thales).  At the same time, ESGR announced it had agreed to a $5.1 billion buyout (taking it private) which amounts to $338 per share.  Later, MCD reported its first decline in sales in 13 quarters.  At the same time, Reuters reported that SJM is now exploring the sale of its Voortman Bakery brand for more than $350 million.  After the close, RSNT announced it agreed to buy rival FBMS in an all-stock deal worth $1.2 billion.  (FBMS owners will receive 1 share of RNST for each share of FBMS held.)

In stock legal and governmental news, on Monday, Reuters reported that HPE will get unconditional EU antitrust approval for its $14 billion acquisition of JNPR.  (The deal was originally announced in January.)  The decision is scheduled to be announced on August 1.  Later, a US District Judge ruled that WFC must face a lawsuit alleging the company defrauded shareholders by proclaiming their commitment to hiring diversity at the same time it was conducting “sham job interviews” of women and non-white applicants (with no intention of hiring them).  Later, the FCC announced that CHTR will a pay a $15 million civil penalty to resolve an investigation into the company’s non-compliance with network and 911 outage rules.  After the close, DAL announced it had hired a law firm and will seek compensations from MSFT and CRWD related to the recent global outage.  (No details were provided, but DAL canceled many thousands of flights due to its inability to recover from the IT outage.)

Overnight, Asian markets were mixed but leaned toward the red side. Hong Kong (-1.37%) paced the losses while New Zealand (+0.63%) led the gainers.  In Europe, we see the opposite picture taking shape with four red bourses and 11 in the green at midday.  The CAC (+0.45%), DAX (+0.45%), and FTSE (-0.20%) lead the region higher in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a modestly green start to the morning.  The DIA implies a flat +0.02% open, the SPY is implying a +0.17% open, and the QQQ implies a +0.20% open at this hour.  At the same time, 10-Year bond yields are at 4.168% and Oil (WTI) is off slightly to $75.73 per barrel in early trading.

The major economic news scheduled for Tuesday includes the July Conf. Board Consumer Confidence and June JOLTs Job Openings (both at 10 a.m.) as well as API Weekly Crude Oil Stocks report (4:30 p.m.).  The major earnings reports before the open include AGCO, AEP, AMT, ADM, ARCC, BGC, BP, CNP, GLW, EXP, ECL, EPD, IT, GPK, HWM, HUBB, ITW, INCY, IGT, JBLU, LDOS, DRS, LGIH, MHO, MRK, ONEW, PYPL, PFE, PSX, PHIN, PG, PEG, SPGI, SOFI, SWK, SYY, UFPI, WSO, XYL, and ZBRA.  Then, after the close, AMD, ACGL, ANET, EQH, AXS, BXP, CZR, CP, EA, EXR, FSLR, FE, HA, HLI, LSTR, LFUS, LYV, MTCH, MCY, MEOH, MSFT, MOD, MDLZ, NGD, NOG, OI, OVV, PINS, PSA, QRVO, QUAD, SWKS, SBUX, SYK, TEX, TX, UNM, WERN, and WU report.

In economic news later this week, on Wednesday, July ADP Nonfarm Employment Change, Q2 Employment Cost Index, July Chicago PMI, June Pending Home Sales, Weekly EIA Crude Oil Inventories, Fed Interest Rate decision, the FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices.  Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.

In terms of earnings reports later this week, on Wednesday, MO, ADP, AN, BBVA, BLCO, BA, BWA, BG, CDW, COR, GIB, CHEF, CLH, CNH, DAN, XRAY, DD, ENTG, FTS, GRMN, GTES, GEHC, GNRC, GGB, GSK, HES, HUM, HCM, JCI, KKR, KHC, LECO, MAR, MA, EDU, NCLH, OMF, OPCH, OSK, PSN, PAG, PNM, RITM, SMG, SLGN, SITE, SCL, SHOO, TMUS, TEF, TEVA, TKR, TT, TTMI, ULS, UMC, UTHR, VRSK, WAT, WEC, ACHC, AFL, AEM, AGI, ALB, ALGT, ALL, AIG, AWK, ANSS, AR, APA, ARM, AVB, BALY, BBSI, BV, CHRW, CWH, CVNA, CAKE, CMPR, CTSH, CODI,  COMP, CRBG, CTVA, DLX, EBAY, ETSY, EG, ES, EXAS, EXPI, FMC, GLF, GT, THG, HLF, HST, IEX, IR, JAZZ, KGC, KD, LRCX, MKL, VAC, META, MET, MGM, MAA, MUSA, MYRG, NFG, NE, PTVE, PGRE, PK, CNXN, PTC, QGEN, QCOM, QDEL, RRX, RUSHA, RHP, SCI, SON, SSRM, SUI, TDOC, TS, TTEK, TWI, RIG, VICI, and WDC report.  On Thursday, we hear from ADT, AER, APD, ALE, ATUS, AME, BUD, HOUS, APG, APO, APTV, MT, ARW, AXTA, BALL, BHC, BCE, BDX, BDC, BIIB, OWL, CNQ, CVE, CI, CIGI, COP, CROX, CMI, D, LPG, DRVN, DNB, ETN, ETR, NVRI, EXC, RACE, AG, FTDR, GIL, HSY, HTZ, DINO, HII, NSIT, NSP, IBP, ICE, IRM, ITRI, ITT, JHG, K, KIM, KEX, KTB, LH, LAUR, LTH, LNC, LAD, MIDD, NBIX, PATK, PBF, BTU, PNW, PWR, REGN, RBLX, SABR, SNDR, SHEL, SIRI, SO, STGW, TRGP, TFX, TRI, TM, TAC, UPBD, VAL, GWW, W, WEN, WCC, XEL, XPO, AES, AL, ALHC, LNT, AMZN, AEE, AAPL, ACA, TEAM, BECN, BZH, BIO, SQ, BKNG, BFAM, CE, CGAU, CC, CIVI, CLX, COIN, ED, CTRA, DASH, DORM, DKNG, EOG, ERO, FND, GEN, GDDY, HUBG, ICFI, INTC, LEG, MTZ, MATX, MELI, MTD, MCHP, MSI, NXT, OTEX, OPEN, OEC, POST, PRU, RGA, RMD, RNG, RKT, ROKU, RYAN, SEM, SNAP, SWN, TROX, TPC, TWLO, X, VTR, VRTX, and WSC.  Finally, on Friday, ARCB, ARES, ABG, BSAC, BERY, BTSG, BEPC, BEP, CBOE, GTLS, CVX, CHD, CNK, ENB, ESAB, XOM, FLR, FYBR, IMO, LIN, LYB, MGA, NMRK, OMI, PRGO, PAA, PAGP, PPL, TIXT, USM, and AMC report.

So far this morning, AEP, AMT, ARCC, CNP, IT, HWM, JBLU, LDOS, LGIH, MRK, NMR, PYPL, PFE, PSX, SOFI, SWK, XYL, and ZBRA all reported beats on both the revenue and earnings lines.  Meanwhile, BP, EXP, GPK, IGT, and PG missed on the revenue line while beating on earnings.  However, ADM and EDP missed on both the top and bottom lines.

In miscellaneous news, in Congress, Democratic Senator Warner (VA) introduced a bill to reform the Fed Discount Window, requiring all but the smallest banks to be prepared (pre-qualified and registered) to borrow from the Fed in the event of a liquidity problem.  This is contrary to the current situation where banks have soften felt is was a stigma and comes as the FOMC has been working hard (top-down) to get banks set up to be able to access those emergency funds.  Meanwhile, in Britian, new Labor Finance Minister announced an immediate cut of more than $7.072 billion in 2024 spending. She told Parliament that the previous Conservative administration had left spending on track to go $28 billion over budget this year. In addition, she announced tentative plans for another $10.4 billion in cuts for 2025.  (The interesting thing about this is that it is a complete 180-degree from public stereotypes that liberals spend and conservatives are fiscally sound, which is often not true.)  The point is that cuts may slow a UK economic rebound as Labor tries to get the budget in order.  Elsewhere, China took another step toward hiding its market situation.  Beijing announced that beginning August 18^th, it will stop publishing daily inflow/outflow data for overseas funds. 

In miscellaneous geopolitical news, it appears Russians continue their attacks on France during the Olympic games.  In addition, to coordinated arson attacks that shut down the rail system the day of the opening ceremonies, on Monday many of the country’s fiber optic broadband services were cut. However, broadband service in Paris were not sabotaged, perhaps due to heightened security in that area. Elsewhere, Bloomberg reported Monday that South Korea has identified who North Korean leader Kim Jong Un has chosen as his eventual successor.  Kim Jun-ae, Un’s preteen daughter (South Korea believes the daughter is 11 years old and his second of three children with his wife) has been tapped as the eventual heir apparent.  Meanwhile, in Venezuela, the Maduro regime appears to have stolen yet another election.  Exit polls had the opposition leader (third in line and the two leading opposition figures were barred from running) had captured more that 65% of votes.  However, Maduro’s hand-picked election commission declared that he had won by 51% to 44%.  At least hundreds of protesters took to the streets of Caracas to protest the “certified election” of Maduro.

With that background, it looks as if traders are waking up both modestly bullish and undecided this morning. All three major index ETFs gapped just a bit higher to start the premarket, but have traded indecisively since then. SPY and QQQ are printing white-bodied candles with wicks while DIA is printing a black-bodied candle (all three of which are small) in the early session. DIA remains above its T-line (8ema) while SPY and QQQ remain below their own T-lines. The very short-term trend is now Bullish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain bullish and still not all that far from their all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator has dropped to just outside overbought territory at the top-end of its mid-range. So, there is still room to run either direction, but it would seem the Bears have a little more slack with which to work. With regard to those 10 big dog tickers, eight of the 10 are in the green so far in the premarket as NFLX (+0.80%) is the leader (it is unusual that is the case) NVDA (-0.17%) is the laggard. TSLA (+0.41%) is well out in front of the others in terms of dollar volume traded followed by NVDA with a big drop off to the rest.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Friday saw the Bulls take back some ground after a bearish week.  The SPY gapped up 0.75%, DIA gapped up 0.59%, and QQQ gapped up 0.97%.  All three of the major index ETFs then followed through to the highs of the day at 1:30 p.m.  From there, all three sold off more modestly until 3 p.m. At that point, all three chopped sideways for the rest of the day.  This action gave us a gap-up, large white-bodied candle with an upper wick in the DIA.  In the SPY, we got a gap-up, white-bodied, Inside Day, Inverted Hammer type of candle. Meanwhile, QQQ printed a gap-up, white-bodied, Doji Harami. This happened on average volume in SPY and DIA as well as above-average volume in the QQQ.

On the day, all 10 sectors were in the green with Communications Services (+1.85%) out front leading the market higher.  On the other side, Energy (+0.57%) was the worst-performing sector.  At the same time, SPY gained 1.12%, DIA gained 1.62%, and QQQ gained 1.03%.  VXX plummeted 5.67% to close at 46.78.  Meanwhile, T2122 spiked up into the overbought territory at 90.27.  On the bond front, 10-year bond yields dropped to close at 4193% and Oil (WTI) dropped 2.32% to close at $76.46 per barrel.  So, we saw a gap higher and some follow-through on the PCE news.  However, there was still indecision, especially in the QQQ while DIA was stronger than its two peer index ETFs.  This was the second straight down week in SPY (-0.83%).  At the same time, QQQ (-2.58%) had its third down week in a row.  Finally, DIA (+0.75%) had its fourth straight up week.

The major economic news scheduled for Friday included the June Core PCE Price Index, which came in flat (Year-on-Year) at +2.6% (which was a tick higher than the +2.5% forecast but in line with May’s +2.6%).  On the Month-on-Month basis, the June Core PCE Price Index was up a tick at +0.2% (in line with the +0.2% forecast and up a tick from May’s +0.1%).  On the headline number, the June PCE Price Index (Year-on-Year) was down a touch to +2.5% (versus the +2.5% forecast and down a tick from May’s +2.6% reading).  For the Month-on-Month basis, the June PCE Price Index was up a tick to +0.1%, which was in line with the forecast but a tick higher than May’s 0.0% value.  At the same time, June Personal Spending was down a tick to +0.3% (versus a +0.3% forecast but a tick lower than May’s +0.4% reading).  Later, Michigan Consumer Sentiment fell but not as much as expected at 66.4 (compared to a 66.0 forecast but down from June’s 68.2 number).  In terms of outlook, Michigan Consumer Expectations were better than anticipated at 68.8 (versus a 67.2 forecast but down from June’s 69.6 reading).  The Michigan Consumer 1-Year Inflation Expectations were down to 2.9% (in line with a 2.9% forecast and down a tick from June’s 3.0% value).  Finally, the Michigan Consumer 5-Year Inflation Expectations were flat at 3.0% (compared to the 2.9% forecast but flat versus June’s 3.0%).   

In stock news, on Friday, Bloomberg reported that HON is considering a $10 billion IPO of its Quantinuum unit.  Later, MMM skyrocketed closing up 22.36% on the session.  That was the stock’s biggest one-day gain in more than 40 years as the new CEO used his first earnings call to lay out his plan for the future.  After the close, TM announced it has decided to put new engines into nearly 100k previously-recalled 2022-2023 Tundra pickup trucks and 3,500 previously-recalled Lexus SUVs.  (The June recall was for engines losing power while driving.) 

Meanwhile, INTC has serious problems. A design flaw in the last two generations of INTC desktop CPUs (13^th and 14^th generation) is causing a massive number of them to die (something between 50% and 100% after a couple of years of use).  This time to death can (and is) greatly accelerated when systems take advantage of configurations intended to improve the processor speed by increasing voltages. (As a side note, INTC has advertised they can be and worked with partners, i.e. motherboard manufacturers, to make it easier for users to accomplish.) For example, many users are reporting CPU failures after just a few months of use.  Then, over the weekend, it was reported that INTC’s next generation of CPU (still at least months, if not a year, from release) will have the same problem.  It is uncertain exactly how big a financial hit the company will take, but it will be significant.  In addition, INTC has been taking non-stop PR hits in the tech industry for three weeks now (when the nearly year-old story gained traction due to industry expert studies of the problem).  There is likely to be a revenue hit when next generation designs (and the ones that follow) must be reworked.

In stock legal and governmental news, on Friday, India’s central bank fined V (just $288,000) for using an unauthorized payment transfer method after it had ordered V to stop.  At the same time, the SEC filed charges against short seller Left from Citron Capital for running a $20 million “fraud scheme” (reverse pump and dump).  Later, the FDA warned patients using NVO’s wildly popular weight-loss drug about over-dosing risks.  At the same time, INDV reached a $86 million opioid settlement with 16 states.   Later, Reuters reported that Italian sources confirmed that AMZN is now under a second investigation for tax evasion. 

Elsewhere, a US federal judge blocked a Dept. of Labor rule from taking effect.  The rule would have expanded the types of retirement advisors who must act with fiduciary responsibility (in the client’s interest).  Later, MSFT agreed to pay $6.625 million to settle a proposed class action lawsuit that alleged the company has overcharged its advertisers on its LinkedIn service.  At the same time, the Federal Railroad Administration told the Senate Commerce Committee that UNP interfered with a federal safety audit by coaching employees how to respond to questions.  This caused the agency to end the audit.  Meanwhile, Europe’s drug regulator rejected BIIB’s Alzheimer’s treatment Leqembi (which had already received approval in the US from the FDA).

Overnight, Asian markets were mostly green with only two of the twelve exchanges in the red.  Japan (+2.13%), Hong Kong (+1.28%), South Korea (+1.23%), and Thailand (1.21%) led the region higher.  In Europe, we see a similar picture taking shape with 13 of the 15 bourses in the green at midday.  The CAC (-0.32%), DAX (+0.31%), and FTSE (+0.75%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a gap higher to start the day.  The DIA implies a +0.42% open, the SPY is implying a +0.45% open, and the QQQ implies a +0.71% open at this hour.  At the same time, 10-Year bond yields are down briskly to 4.158% and Oil (WTI) is off 0.61% to $76.65 per barrel in early trading.

There are no major economic news scheduled for Monday.  The major earnings reports before the open include AMG, ARLP, CTRI, CAN, MCD, ON, RVTY, and PHG.  Then, after the close, AMKR, CHK, CNO, CR, CWK, CVI, ESI, EQR, FFIV, FLS, HOLX, SANM, SBAC, ST, SFM, VIV, WELL, and WWD report.

In economic news later this week, on Tuesday we get July Conf. Board Consumer Confidence and the API Weekly Crude Oil Stocks report.  Then Wednesday, July ADP Nonfarm Employment Change, Q2 Employment Cost Index, July Chicago PMI, June Pending Home Sales, Weekly EIA Crude Oil Inventories, Fed Interest Rate decision, the FOMC Statement, and Fed Chair Press Conference are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q2 Nonfarm Productivity, Preliminary Q2 Unit Labor Costs, July S&P Global Mfg. PMI, June Construction Spending, July ISM Mfg. Employment, July ISM Mfg. PMI, and July ISM Mfg. Prices.  Finally, on Friday, July Avg. Hourly Earnings, July Nonfarm Payrolls, July Private Nonfarm Payrolls, July Participation Rate, July Unemployment Rate, and Jun Factory Orders are reported.

In terms of earnings reports later this week, on Tuesday, we hear from AGCO, AEP, AMT, ADM, ARCC, BGC, BP, CNP, GLW, EXP, ECL, EPD, IT, GPK, HWM, HUBB, ITW, INCY, IGT, JBLU, LDOS, DRS, LGIH, MHO, MRK, ONEW, PYPL, PFE, PSX, PHIN, PG, PEG, SPGI, SOFI, SWK, SYY, UFPI, WSO, XYL, ZBRA, AMD, ACGL, ANET, EQH, AXS, BXP, CZR, CP, EA, EXR, FSLR, FE, HA, HLI, LSTR, LFUS, LYV, MTCH, MCY, MEOH, MSFT, MOD, MDLZ, NGD, NOG, OI, OVV, PINS, PSA, QRVO, QUAD, SWKS, SBUX, SYK, TEX, TX, UNM, WERN, and WU.  Then Wednesday, MO, ADP, AN, BBVA, BLCO, BA, BWA, BG, CDW, COR, GIB, CHEF, CLH, CNH, DAN, XRAY, DD, ENTG, FTS, GRMN, GTES, GEHC, GNRC, GGB, GSK, HES, HUM, HCM, JCI, KKR, KHC, LECO, MAR, MA, EDU, NCLH, OMF, OPCH, OSK, PSN, PAG, PNM, RITM, SMG, SLGN, SITE, SCL, SHOO, TMUS, TEF, TEVA, TKR, TT, TTMI, ULS, UMC, UTHR, VRSK, WAT, WEC, ACHC, AFL, AEM, AGI, ALB, ALGT, ALL, AIG, AWK, ANSS, AR, APA, ARM, AVB, BALY, BBSI, BV, CHRW, CWH, CVNA, CAKE, CMPR, CTSH, CODI,  COMP, CRBG, CTVA, DLX, EBAY, ETSY, EG, ES, EXAS, EXPI, FMC, GLF, GT, THG, HLF, HST, IEX, IR, JAZZ, KGC, KD, LRCX, MKL, VAC, META, MET, MGM, MAA, MUSA, MYRG, NFG, NE, PTVE, PGRE, PK, CNXN, PTC, QGEN, QCOM, QDEL, RRX, RUSHA, RHP, SCI, SON, SSRM, SUI, TDOC, TS, TTEK, TWI, RIG, VICI, and WDC report.  On Thursday, we hear from ADT, AER, APD, ALE, ATUS, AME, BUD, HOUS, APG, APO, APTV, MT, ARW, AXTA, BALL, BHC, BCE, BDX, BDC, BIIB, OWL, CNQ, CVE, CI, CIGI, COP, CROX, CMI, D, LPG, DRVN, DNB, ETN, ETR, NVRI, EXC, RACE, AG, FTDR, GIL, HSY, HTZ, DINO, HII, NSIT, NSP, IBP, ICE, IRM, ITRI, ITT, JHG, K, KIM, KEX, KTB, LH, LAUR, LTH, LNC, LAD, MIDD, NBIX, PATK, PBF, BTU, PNW, PWR, REGN, RBLX, SABR, SNDR, SHEL, SIRI, SO, STGW, TRGP, TFX, TRI, TM, TAC, UPBD, VAL, GWW, W, WEN, WCC, XEL, XPO, AES, AL, ALHC, LNT, AMZN, AEE, AAPL, ACA, TEAM, BECN, BZH, BIO, SQ, BKNG, BFAM, CE, CGAU, CC, CIVI, CLX, COIN, ED, CTRA, DASH, DORM, DKNG, EOG, ERO, FND, GEN, GDDY, HUBG, ICFI, INTC, LEG, MTZ, MATX, MELI, MTD, MCHP, MSI, NXT, OTEX, OPEN, OEC, POST, PRU, RGA, RMD, RNG, RKT, ROKU, RYAN, SEM, SNAP, SWN, TROX, TPC, TWLO, X, VTR, VRTX, and WSC.  Finally, on Friday, ARCB, ARES, ABG, BSAC, BERY, BTSG, BEPC, BEP, CBOE, GTLS, CVX, CHD, CNK, ENB, ESAB, XOM, FLR, FYBR, IMO, LIN, LYB, MGA, NMRK, OMI, PRGO, PAA, PAGP, PPL, TIXT, USM, and AMC report.

With that background, it looks as if the Bulls are in control in the premarket. All three major index ETFs gapped higher to start the early session and have put in white-bodied candles (very little wick) since that point. SPY looks as if it will try to retest it T-line (8ema) from below today and DIA is already challenging Friday’s high. The very short-term trend is now Bullish. However, QQQ and SPY remain below their T-line. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not all that far from all-time highs. In terms of extension, none of the major index ETFs are too stretched from their T-line. At the same time, the T2122 indicator is now in its over-bought range, but not pegged to the top end. So, this means the market still has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are in the green in the early session with TSLA (+1.77%) well out in front of the others while AAPL (+0.01%) is the laggard and just barely green.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 were volatile Thursday, giving us great whiplash moves.  SPY opened flat at +0.02%, DIA opened down 0.03%, and QQQ opened 0.05% higher.  At that point, SPY and QQQ sold off sharply until 10:15 a.m. when they hit the lows of the day.  Then they both reversed and rallied hard back across the open to the highs of the day at 1:15 p.m.  However, then they both reversed again selling off hard again trying to reach the lows again, but coming up just a little short.  Meanwhile, DIA just rallied after its open, also reaching the highs of the day at 1:15 p.m.  Then it too sold off, but not quite as strongly as the other two major index ETFs.  This action gave us a black-bodied, large-bodied Spinning Top candle in QQQ, a black-bodied, large Inverted Hammer in the SPY, and a white-bodied Inverted Hammer in the DIA. 

On the day, six of the 10 sectors were in the green with Industrials (+1.09%) out front leading the gaining sectors higher.  On the other side, Technology (-0.76%) was again the worst-performing sector.  At the same time, SPY fell 0.52%, DIA gained 0.21%, and QQQ fell 1.10%.  VXX climber just a bit to 49.59.  Meanwhile, T2122 spiked back up into the upper half of its mid-range at 59.11.  On the bond front, 10-year bond yields fell to close at 4.246% and Oil (WTI) gained 0.68% to close at $78.12 per barrel.  This happened on above-average volume in the QQQ and average volume in the SPY and DIA.  So, Thursday saw a continuation of the sharp selloff in SPY and QQQ.  However, DIA held its ground after the rough week or so.  If there was any upside for Bulls, it would be that the QQQ closed on its long-term uptrend line dating back to October.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in just below predictions at 235k (compared to a forecast of 237k and the prior week’s 245k).  For the ongoing side, Weekly Continuing Jobless Claims were also better than expected at 1,851k (versus a forecast of 1,860k, which was also the prior week’s value).  At the same time, June Core Durable Goods Orders showed a jump of +0.5% (compared to a forecasted +0.2% and the far better than May’s -0.1%).  On the headline number, June Durable Goods Orders showed a large and unexpected decline of -6.6% (versus a forecast calling for +0.3% and May’s +0.1% reading).  I’ve got no idea how the core and headline numbers on that work together.  In terms of Preliminary Q2 PCE Prices, they were up 2.90% (compared to a +2.70% forecast but down from June version’s +3.70%).  At the same time, Preliminary Q2 GDP was much stronger than anticipated at +2.80% (versus a +2.0% forecast and a June value of +1.4%).  In terms of prices, the Preliminary Q2 GDP Price Index was not as high as was expected at +2.3% (compared to the +2.6% forecast and well down from the June +3.1% reading).  Finally, after the close, the Fed Balance Sheet showed a modest decline of $3 billion for the week, down to $7.205 trillion from the prior week’s $7.208 trillion value.

After the close, ALSN, AJG, ASB, BKR, BYD, CINF, COLB, FIX, DECK, EIX, ENIC, ENSG, ERIE, FIBK, HIG, LHX, LPLA, DOC, SKYW, SSNC, TXRH, UCTT, and VLTO all reported beats on both the revenue and earnings lines.  Meanwhile, ATR, COLM, DXCM, DLR, EMN, EGO, FBIN, MTX, MHK, NSC, and TFII missed on revenue while beating on earnings.  On the other side, TBBK, SAM, and PFG beat on revenue while missing on earnings.  However, BTE, JNPR, OLN, SKX, WY, and WKC missed on both the top and bottom lines.

In stock news, on Thursday, WBD stock fell 5.67% after it failed to renew its NBA broadcast rights contract (on its TNT channel).  (WBD indicated it intended to sue after the league rejected its offer to match the bid from AMZN.)  At the same time, Reuters reported that iPhone sales in China during Q2 fell 6.7% while Chinese rival Huawei saw its China phone sale surge by 10%.  Later, AAL lowered its annual revenue forecast, citing a poor sales strategy.  At the same time, INST announced it had agreed to be acquired by KKR for $23.60 per share or $4.8 billion.  Later, VLO announced it plans to run its refineries at 92% of capacity in Q3.  This is down from the 94% VLO operated at during Q2 and well below its previously-announced plan to operate at more than 95% of capacity. 

Meanwhile, Reuters reported that TSLA CEO Musk intends to ask the board of TSLA to make a $5 billion investment into his xAI startup company.  Later, BAC announced its payments app had handled a record $500 billion in payments by mid-year.  At the same time, in Canada, WMT announced it will invest $53 million to increase the wages of 40,000 Canadian workers.  Later, Bloomberg reported that GM intends to begin charging for Cruise robotaxi rides in early 2025.  At the same time, LUV announced it will end its long-standing “open seating” policy as the airline seeks to improve earnings by instituting seating price tiers.  Later, OpenAI announced it is now testing a direct competitor to GOOGL and to a much lesser extent MSFT (which is a also ran in the market in question) search engines called SearchGPT.

In stock legal and governmental news, on Thursday, Reuters reported multiple sources tell it META will be hit with its first EU antitrust fines within a few weeks.  The fines are for META tying classified advertisements service Marketplace with its Facebook social network.  (The fine could be as much as $13.4 billion, which is 10% of its 2023 global revenue.)  At the same time, in the UK, COIN was fined $4.5 million for breaching the British financial crimes requirements.  Later, the US Dept. of justice announced that it and BA had finalized the company’s guilty plea.  BA will pay at least $243.6 million in fines for breaching its 2021 agreement that allowed it to avoid charges then.  At the same time, Russia reduced the speed of GOOGL’s YouTube service by 40% in order (with a threat to reduce it further to down 70%) next week) to pressure the company to reinstate blocked Russian YouTube channels. 

Elsewhere, the KR $25 billion acquisition of ACI has been halted until after a trial in CO that is scheduled to start in September.  At the same time, the CA Supreme Court rejected a union lawsuit, upholding the recent ballot measure that called for treating UBER and LYFT drivers as independent contractors instead of employees.  Later, BAYRY (Bayer) announced a settlement where it will pay $160 million to resolve Seattle’s PCB contamination lawsuit against the company’s Monsanto unit.  At the same time, a shareholder has filed suit to block the long and troubled merger (acquisition) of PARA by Skydance Media.  The suit alleges the deal would cost non-voting shareholders $1.65 billion.

Overnight, Asian markets were mixed but leaned toward the green.  India (+1.76%), Shenzhen (+1.45%), and Thailand (+1.10%) led the seven gainers. Meanwhile, Taiwan (-3.29%) was an outlier as it resumed trading after being closed due to typhoon for two days.  That outlier was nearly 3% worse than any of the other four red exchanges. In Europe, markets lean heavily toward the green at midday with only two of the 15 bourses in the red.  The CAC (+0.90%), DAX (+0.31%), and FTSE (+0.68%) lead the region higher in early afternoon trade.  In the US, as of 7:00 a.m., Futures are pointing toward a strongly green open early (before PCE data).  The DIA implies a +0.60% open, the SPY is implying a +0.75% open, and the QQQ implies a +0.99% open at this hour.  At the same time, 10-Year bond yields are down to 4.244% and Oil (WTI) is off 0.42% to $77.95 per barrel in early trading.

The major economic news scheduled for Friday, June Core PCE Price Index, June PCE Price Index, and June Personal Spending (all at 8:30 a.m.), Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations (all at 10 a.m.) are reported.  The major earnings reports before the open include MMM, AB, AON, AVTR, BAH, BMY, CNC, CHTR, CL, BEN, GNTX, NWL, POR, SAIA, and TROW.  There are no major earnings reports scheduled for after the close.

In miscellaneous news, on Thursday, the Pentagon announced it had found another $2 billion accounting error that had caused the value of munitions sent to Ukraine to be overvalued.  (They had used replacement cost rather than depreciated value to place a price on the goods.)  This effectively increases the amount the US can send Ukraine by another $2 billion.  Elsewhere, attacks on French railways are causing travel chaos in Paris as the city preps for today’s opening ceremony of the Olympics.  About 250k passengers will be disrupted today and more than 800k disrupted over the weekend.  At the same time, a French-Swiss airport (Basel-Mulhouse) was evacuated and closed for safety reasons.  Finally, in overnight news, Reuters reported that HMC plans to close a factory in China as well as temporarily halting production at another plant.  The halt is part of a retooling to start producing more electric vehicles amidst heavy competition from Chinese EV rivals.

So far this morning, MMM, AFLYY, AB, BASFY, BMY, CHTR, CL, POR, TROW, and VLOWY all reported beats on both the revenue and earnings lines.  Meanwhile, AVTR and CRI missed on revenue while beating on earnings.  On the other side, AON, BAH, and CNC beat on revenue while missing on earnings. 

With that background, it looks as if the Bulls are looking to start Friday with a significant gap higher. All three major index ETFs began the premarket with a gap up and have followed through with white-bodied candles. Only QQQ has wicks on its early session candle, indicating less indecision among the DIA and SPY early. DIS is even retesting its T-line (8ema) from below having crossed above in the premarket. However, with all that said, we are still an hour away from the PCE Inflation data that could rock the boat (which just don’t know in what direction). So, after a rough four days in the market, it appears the Bulls have some momentum very early on a Friday. The short-term trend remains Bearish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not all that far from all-time highs. In terms of extension, even considering the premarket move higher, QQQ is stretched below its T-line. At the same time, the T2122 indicator is now in its mid-range. Therefore, overall, this means the market still has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are solidly or strongly in the green in the early session with AMD (+2.39%) and NVDA (+2.31%) leading the group higher on strong moves and good volume. Meanwhile, GOOGL (+0.41%) is the laggard, having moved less than half as much as the next lowest performer MSFT (+0.87%).

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Tuesday saw similar movement across all three major index ETFs, but with different magnitudes.  SPY opened down 0.02%, DIA opened up 0.04%, and QQQ opened down 0.17%.  From there, all three meandered back-and-forth around the “gaps” with SPY and DIA moving in a 0.50% range while QQQ moved in a 0.85% range.  This was only interrupted by a selloff the last 10 minutes across all three major index ETFs.  This action gave us black-bodied, inverted Hammer type candles in the SPY, DIA, and QQQ.  SPY and QQQ both retested their T-line (8ema) from below and failed the test during the day.  Meanwhile, DIA retested its own T-line from above and fell through by just four cents.  (So, it’s still a test in progress.)

On the day, six of the 10 sectors were in the red with Energy (-1.26%) way out front leading the market lower.  On the other side, Financial Services (+0.31%) held up better than the other sectors.  At the same time, SPY fell 0.16%, DIA fell 0.16%, and QQQ fell 0.35%. VXX fell 0.82% to close at a very low at 10.83.  T2122 fell a bit, climbed just a bit further into its overbought range at 85.97.  On the bond front, 10-year bond yields closed at 4.253% and Oil (WTI) continued to fall, down another 1.19% to close at $77.47 per barrel.  This all happened on far below-average volume in the SPY, DIA and QQQ.  So, Tuesday saw a pause after Monday’s gains.  continuation of the pullback from all-time highs with QQQ leading, SPY in the middle, and DIA following (just as it did on the way up). 

The major economic news scheduled for Tuesday included June Existing Home Sales, which came in light at 3.89 million (compared to a forecast of 3.99 million and the May reading of 4.11 million).  Then, after the close, API Weekly Crude Oil Stocks showed a much larger drawdown than expected at -3.900 million barrels (versus a forecasted build of 0.700 million barrels but less of a drawdown that the prior week’s -4.440 million barrels).

After the close, GOOGL, AGR, CALM, CB, EWBC, ENVA, GOOG, MTDR, PKG, RRR, STX, and TXN all reported beats on both the revenue and earnings lines.  Meanwhile, CSGP, EQT, MAT, RRC, and V missed on the revenue line while beating on earnings.  On the other side, NBR and TSLA beat on revenue while missing on earnings. However, CNI, COF, and WFRD missed on both the top and bottom lines.

In stock news, on Tuesday, KMB, KO, PM, SHW, HCA, GM, LMT, and even UPS (despite reporting its Q2 miss) raised their annual guidance.  Later, tech industry magazine Information reported that AAPL is working on a foldable iPhone with a planned release date in 2026.  At the same time, GM announced it has delayed plans for a self-driving version of the Chevrolet Bolt without a steering wheel.  (In 2022, GM have petitioned the NHTSA to allow deployment of 2,500 self-driving vehicles without human controls.)  Later, META released a new version of its Llama AI model, the biggest (largest training data set) model it has released to date.  At the same time, IEX announced it will buy private firm Mott Corp for $1 billion in cash.  (The move would improve IEX’s presence in the medical technologies industry.)  Later, cybersecurity startup Wiz ended talks with GOOGL related to the tech giant’s $23 billion deal to acquire the Israeli firm.  Meanwhile, German private firm Robert Bosch announced it had agreed to buy JCI’s residential ventilation business for $8 billion.  After the close, BA announced it has resumed deliveries of 737 MAX jets to China.

In stock legal and governmental news, on Tuesday, AMZN unit Whole Foods reported it had reached a settlement in a lawsuit filed against it alleging the company fired an employee over refusing to remove a Black Lives Matter facemask.  Terms of the deal were not disclosed.  At the same time, the NHTSA announced that STLA has recalled 19,516 hybrid mini-vans in the US over fire potential from a battery pack, advising any customers to park the vehicles outside until they are repaired.  Later, Italy seized $131 million from the Italian unit of AMZN over alleged tax fraud and illegal labor practices.  At the same time, the US FTC has launched an investigation into individual pricing based on previous purchase history, consumer location data, and other personal data.  The FTC has asked MA, JPM, and six other companies to provide information on their “targeted pricing” practices.  The FTC is also seeking information from software providers and consultancies involved in implementing such systems. 

Elsewhere, the FAA launched a safety review of LUV after a series of near-misses involving their planes.  At the same time, the US Dept. of Transportation announced it has opened a probe into DAL related to the more than 5,000 flights the carrier has canceled due to the global cyber outage last Friday.  (DAL had canceled 30% of its flights Friday through Monday and 13% of its flights Tuesday, while other airlines recovered much more quickly.)  Among the complaints from stranded passengers was phone agent wait times of well over 12 hours for those trying to reroute. After the close, the state of CO announced it has ramped up its response to bird flu and now requires dairies to test their milk every week following outbreaks and many cases of bird to cow transmission in the state.  (CO found 47 cattle herds that have been infected so far, with 60% of those coming in the last month.  This comes after 3.1 million chickens were culled or died of the disease in that state.)

Overnight, Asian markets were mostly red.  Only Taiwan (+2.76%), the region’s biggest mover and New Zealand (+0.85%) were in the green.  Meanwhile, Shenzhen (-1.32%), Japan (-1.11%), and Hong Kong (-0.91%) led the rest of the region lower.  In Europe, we see a similar picture taking shape with only three of the 15 bourses in the green at midday.  The CAC (-1.00%), DAX (-0.71%), and FTSE (-0.19%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a gap lower to start the day.  The DIA implies a -0.45% open, the SPY is implying a -0.78% open, and the QQQ implies a -1.15% open after TSLA’s fourth consecutive quarterly miss.  At the same time, 10-Year bond yields are just on the green side of flat at 4.24% and Oil (WTI) is up nearly one percent to $77.71 per barrel in early trading. 

The major economic news scheduled for Wednesday includes, Building Permits, June Goods Trade Balance, and June Retail Inventories (all at 8:30 a.m.), S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, and June New Home Sales (all at 10 a.m.), and EIA Weekly Crude Inventories (10:30 a.m.).  Fed Governor Bowman also speaks at 4:05 p.m.  The major earnings reports before the open include Wednesday, we hear from, ALLE, APH, T, BSX, CHKP, CME, EQNR, EVR, FI, FLEX, FMX, FTV, GEV, GD, GPI, IP, IPG, KBR, LW, LII, NEE, ODFL, ORAN, OTIS, BPOP, PRG, RCI, ROP, TMHC, TEL, TECK, TDY, THC, TMO, TNL, VRT, and WAB.  Then after the close, ALGN, AMP, ASGN, CSL, CLS, CCS, CHE, CMG, CHDN, CYH, EW, FAF, F, GL, GGG, ICLR, IBM, INVH, KALU, KLAC, KNX, LVS, MTH, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, RNR, RSG, ROL, NOW, TER, TYL, URI, UHS, VMI, WCN, WFG, WHR, WM, and WH report.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, June Core Durable Goods Orders, June Durable Goods Orders, Preliminary Q2 PCE Prices, Preliminary Q2 GDP, Preliminary Q2 GDP Price Index, Preliminary Goods Trade Balance, Preliminary Retail Inventories, and the Fed Balance Sheet.  Finally, on Friday, June Core PCE Price Index, June PCE Price Index, June Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, ABBV, AAL, ARCH, AMBP, AZN, BFH, BC, CRS, CARR, CBRE, CX, CMS, CFR, DAR, DOV, DOW, DTE, FCNCA, FCFS, FSV, FCN, GTX, HOG, HAS, HP, HNI, HON, KDP, LAZ, LEA, LKQ, MAS, NDAQ, NYCB, NOC, ORI, PCG, POOL, RS, RCL, RPM, RTX, R, SNY, LUV, STLA, STM, FTI, TSCO, TRU, TPH, UNP, VLO, VC, WST, WEX, WTW, XRX, ALSN, ATR, AJG, BKR, SAM, BYD, CINF, COLM, DECK, DXCM, DLR, EMN, EIX, EGO, FBIN, HIG, JNPR, LHX, LPLA, MTX, MHK, NSC, NOV, OLN, DOC, PFG, SKX, SKYW, SSNC, TXRH, TFII, VLTO, WY, and WKC report.  Finally, on Friday, we hear from MMM, AB, AON, AVTR, BAH, BMY, CNC, CHTR, CL, BEN, GNTX, NWL, POR, SAIA, and TROW.

So far this morning, ALLE, BXMT, BSX, CHKP, CME, EVR, FI, IPG, NAVI, BPOP. SF, TMHC, THC, TMO, TNL, VRT, WNC, and WAB all reported beats on both the revenue and earning lines.  Meanwhile, EQNR, GEV, GPI, IP, KBR, LII, ODFL, OTIS, RCI, ROP, TEL, TECK, and TDY all missed on revenue while beating on earnings.  On the other side, GD beat on revenue while missing on earnings.  However, T missed on both the top and bottom lines.

In miscellaneous news, a US District Judge in Philadelphia rejected a lawsuit seeking to block the FTC rule which prohibits “non-compete agreements” as a condition of employment.  Elsewhere, the Equip. Leasing and Finance Assn. (ELFA) said Tuesday that companies borrow 4% less to finance equipment in June. (This came after double-digit growth in the borrowing the two prior months.)  Later, Bloomberg reported that an Pentagon technology services provider owned by LMT was recently hacked, resulting in internal documents being stolen.  (In addition to the Dept. of Defense, the Dept. of Homeland Security, NASA and numerous other agencies and foreign entities were among the customers of that LMT unit.)  Meanwhile, KHC suffered a little blow when its iconic “Wienermobile” hit another car and flipped on a Chicago highway Tuesday.  (Fortunately for hot dog fans, KHC has several Wienermobiles it can roll out to fill the void.)

With that background, it looks as if the Bears are in control early in the premarket. All three major index ETFs gapped down significantly to start the early session. However, they have printed small, indecisive candles since that gap lower. So, there is no unanimity of feeling among traders. All three major index ETFs are below their T-line (8ema), meaning the DIA lost its test from above as of the Tuesday close. So, the premarket looks solidly Bearish and the short-term is likewise pointing down. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and still not far from all-time highs. In terms of extension, QQQ is getting a little stretched below its T-line by the morning gap down. At the same time, the T2122 indicator remains in the overbought area. Therefore, those mixed signals mean the market has room to run in either direction if the market can find momentum. With regard to those 10 big dog tickers, all 10 are strongly red in the early session with TSLA (-8.37%) leading by a wide margin in terms of move and dollar-volume traded early. AAPL (-0.12%) and NFLX (-0.52%) are holding up better than the other big dogs.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Friday saw markets open down to varying degrees.  SPY opened 0.06% lower, DIA gapped down 0.31%, and QQQ opened 0.08% lower.  At that point, all three major index ETFs chopped sideways for 30 minutes.  However, from there, all three sold off until 2:45 p.m. and then meandered along the bottom the rest of the day.  This action gave us black-bodied, large-ish candles with wicks on both ends in all three major index ETFs.  DIA crossed back below its T-line (8ema) while QQQ pulled fairly far below its own T-line.  SPY sits in about midway between DIA and QQQ in terms of its distance below its T-line. 

On the day, eight of the 10 sectors were in the red with Technology (-0.97%) out front leading the market lower.  On the other side, Healthcare (+0.24%) held up much better than the other sectors.  At the same time, SPY fell 0.68%, DIA fell 0.93%, and QQQ fell 0.89%. VXX shot up 4.25% to close at a still low at 11.53.  T2122 fell a bit, but remains in the center of its mid-range at 40.26.  On the bond front, 10-year bond yields popped again to 4.24% and Oil (WTI) plummeted 3.08% to close at $80.29 per barrel.  This all happened on average volume in the SPY, DIA and QQQ.  So, again on Friday saw a continuation of the pullback from all-time highs with QQQ leading, SPY in the middle, and DIA following (just as it did on the way up). 

There was no major economic news scheduled for Friday.

In economic speak news, on NY Fed President Williams said Friday that the FOMC is “getting closer” to the point where it can start cutting rates.  Williams said, “I feel like the past three months—and I would include in June, based on what we’ve seen — seems to be getting us closer to a disinflationary trend that we’re looking for.”  He continued, “I would like to see more data to gain further confidence inflation is moving sustainably towards our 2% goal. We’ve got a few good months now.”  Later, Atlanta Fed President Bostic said that he now only expects one rate cut this year.  Bostic told reporters, “The economy continues to deliver surprises and it continues to be more resilient and more energized than I had forecast, … And as a consequence, I’ve sort of re-calibrated when I think it’s appropriate to move.”  Bostic continued, “We will have to see how the data comes in over the next several weeks.” 

In stock news, on Friday, SERV shares spiked and closed up 187% (after being up more than 241% during the day) after NVDA disclosed it had taken a 10% stake in the company.  Later, Reuters reported that OXY is in talks with Columbia’s Ecopetrol over the sale of a 30% stake in shale oil producer CrownRock by OXY for $3.6 billion.  At the same time, AAL announced it had reached a tentative contract deal with the union representing 28k flight attendants after three years of negotiations.  Later, Bloomberg reported that UL has begun discussions with buyout firms about the possible sale of its ice cream unit, which includes the “Ben & Jerry’s” brand.  (BX is among to top firms on the potential buyer side.)

In stock legal and governmental news, on Friday, LLY announced that it had received approval for its weight loss drug tirzepatide from Chinese regulators. (NVO’s Wegovy, a competing GLP-1 weight loss drug had already been approved.)  At the same time, a US District Court ruled that BKNG violated the Computer Fraud and Abuse Act by scraping data from the RYAAY website. Later, Bloomberg reported HE had reached a tentative settlement of more than $4 billion, which would resolve hundreds of lawsuits stemming from the 2023 wildfires on Maui.  At the same time, Reuters reported that the EU is set to impose provisional tariffs on Chinese biodiesel due to unfairly low pricing (government subsidized). Meanwhile, ORCL agreed to pay $115 million to settle a suit alleging the company violated CA consumer privacy by collecting and selling personal data without permission.

Elsewhere on Friday, a court filing by class action law firms accused BRKB of colluding with three other law firms to convince fire victims to reach lowball settlements on suits filed against BRKB’s PacifiCorp.  At the same time, the NHTSA disclosed that STLA paid $190.7 million in US fuel economy penalties for the years 2019 and 2020.  In addition. STLA still owes another $459.7 million in outstanding penalties for the same infractions prior to 2021.  (In 2023, STLA paid $235.5 million for the same thing covering 2018 and $156.6 million covering 2016-2017.)  Later, the Fed fined GDOT $44 million for “unfair and deceptive” practices in its “prepaid debit card” services.  At the close, Bloomberg reported that the FTC has opened an investigations into OXY, HES, and FANG over their communications with OPEC officials. 

Overnight, Asian markets were red across the board wit the lone exception of Hong Kong (+1.25%).  Taiwan (-2.68%), Japan (-1.16%), and South Korea (-1.14%) seem to have reacted poorly to Biden dropping out of the US Presidential race just hours before the Asian opens.  This idea was bolstered as China made a surprise interest rate cuts in both short-term and long-term rates.  (Unlike the US, China cut 7-day, one-year, and 5-year PBOC (China’s Central Bank) rates by a tenth of a percent each.  However, in Europe, we see very strong green across the board at midday.  The CAC (+1.33%), DAX (+1.35%), and FTSE (+0.73%) lead very broad gains of more than a percent on an initial positive reaction to Biden’s Sunday move.  In the US, as of 7:30 a.m., Futures are pointing toward a strong start to the morning.  The DIA implies just a +0.16% open, but the SPY implies a +0.50% open, and the QQQ implies a +0.82% open at this hour.  At the same time, 10-Year bond yields are down to 4.22% and Oil (WTI) is off by half a percent to $79.72 per barrel.

There is no major economic news scheduled for Monday.  The major earnings reports before the open include are limited to IQV, KSPI, TFC, and VZ.  Then, after the close, ARE, BOKF, BRO, CDNS, CLF, CCK, LOGI, MEDP, NUE, NXPI, SAP, VLRS, WRB, and ZION report.

In economic news later this week, on Tuesday, we get June Existing Home Sales and API Weekly Crude Oil Stocks report.  Then Wednesday, Building Permits, June Goods Trade Balance, June Retail Inventories, S&P Global Mfg. PMI, S&P Global Services PMI, S&P Global Composite PMI, June New Home Sales, and EIA Weekly Crude Inventories are reported.  Fed Governor Bowman also speaks.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, June Core Durable Goods Orders, June Durable Goods Orders, Preliminary Q2 PCE Prices, Preliminary Q2 GDP, Preliminary Q2 GDP Price Index, Preliminary Goods Trade Balance, Preliminary Retail Inventories, and the Fed Balance Sheet.  Finally, on Friday, June Core PCE Price Index, June PCE Price Index, June Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, and Michigan Consumer 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Tuesday, AOS, ACI, ALFVY, AVY, KO, CMCSA, CSTM, DHR, FELE, FCX, GE, GM, GPC, HCA, HRI, IVZ, KMB, LMT, MCO, MSCI, PCAR, PNR, PM, PII, PHM, DGX, SHW, SPOT, UPS, WBS, GOOGL, ABR, CNI, COF, CB, CSGP, EWBC, ENVA, EQT, GOOG, MTDR, MAT, NBR, PKG, RRC, STX, TSLA, TXN, V, and WFRD report.  Then Wednesday, we hear from, ALLE, APH, T, BSX, CHKP, CME, EQNR, EVR, FI, FLEX, FMX, FTV, GEV, GD, GPI, IP, IPG, KBR, LW, LII, NEE, ODFL, ORAN, OTIS, BPOP, PRG, RCI, ROP, TMHC, TEL, TECK, TDY, THC, TMO, TNL, VRT, WAB, ALGN, AMP, ASGN, CSL, CLS, CCS, CHE, CMG, CHDN, CYH, EW, FAF, F, GL, GGG, ICLR, IBM, INVH, KALU, KLAC, KNX, LVS, MTH, MOH, NEM, ORLY, OII, PTEN, PLXS, RJF, RNR, RSG, ROL, NOW, TER, TYL, URI, UHS, VMI, WCN, WFG, WHR, WM, and WH.  On Thursday, ABBV, AAL, ARCH, AMBP, AZN, BFH, BC, CRS, CARR, CBRE, CX, CMS, CFR, DAR, DOV, DOW, DTE, FCNCA, FCFS, FSV, FCN, GTX, HOG, HAS, HP, HNI, HON, KDP, LAZ, LEA, LKQ, MAS, NDAQ, NYCB, NOC, ORI, PCG, POOL, RS, RCL, RPM, RTX, R, SNY, LUV, STLA, STM, FTI, TSCO, TRU, TPH, UNP, VLO, VC, WST, WEX, WTW, XRX, ALSN, ATR, AJG, BKR, SAM, BYD, CINF, COLM, DECK, DXCM, DLR, EMN, EIX, EGO, FBIN, HIG, JNPR, LHX, LPLA, MTX, MHK, NSC, NOV, OLN, DOC, PFG, SKX, SKYW, SSNC, TXRH, TFII, VLTO, WY, and WKC report.  Finally, on Friday, we hear from MMM, AB, AON, AVTR, BAH, BMY, CNC, CHTR, CL, BEN, GNTX, NWL, POR, SAIA, and TROW.

So far this morning, IQV and TFC reported beats on both the revenue and earnings lines.  Meanwhile, VZ missed on revenue while beating on earnings.

In miscellaneous news, after the close Thursday, a federal appeals court blocked the Biden Administration from continuing to implement a new student debt relief plan at the request of seven GOP-led states.  (The Dept. of Education said it had already granted $5.5 billion in debt relief to 414k borrowers under that “SAVE” plan.)  At the same time, the IMF said the US should raise taxes to reduce the US federal debt and put off any rate cut until at least late 2024.  Meanwhile, mortgage finance agency Freddie Mac told Reuters Thursday that the US 30-year fixed-rate mortgages fell to the lowest rate since mid-March, with the national average down to 6.77% from the prior week’s 6.89%.  Finally, Reuters reported that the state of CA reported that TSLA car registrations fell in Q2.  TSLA’s 52,211 new registrations for Q2 was down and a third consecutive quarter of falling new registrations. 

With that background, it looks as if the markets are enjoying the Sunday and overnight news. All three major index ETFs gapped up to start the premarket session. Since that point, SPY and QQQ have followed through with good-sized white-body candles showing no wick at this point. For its part, DIA gapped less and has given a smaller white-body candle as it retests its T-line (8ema) from below. So, the premarket looks strongly Bullish, but the short-term trend is Bearish. Meanwhile, in the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish and not far from all-time highs. In terms of extension, QQQ is the most extended to the downside, but the early session action has relieve the worst of its over-done issue. At the same time, the T2122 indicator remains in the center of its mid-range. Therefore, the market has room to run in either direction if the Bulls or Bears can find momentum. With regard to those 10 big dog tickers, all 10 are strongly green in the early session with the biggest dog (NVDA, +2.06%) leading that way again both in terms of move and volume. However, the least of the big dog movers is NFLX (+0.40%).

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 gave us divergent gaps to start the day.  However, by mid-morning the three major index ETFs had gotten their direction synchronized again.  SPY gapped up 0.29%, DIA gapped down 0.26%, and QQQ gapped up 0.77%.  However, after the gap up and bobbing around for 45 minutes, SPY sold off sharply until 12:30, bounced for an hour, and then started another leg lower.  It ended the day on a modest bounce.  At the same time, after its open, DIA followed-through to the upside for an hour.  Then, it too also sold off sharply until 12:30, ground sideways for 75 minutes, and then started its own second leg lower, ending the day on a small 30-minute bounce.  Meanwhile, after the large gap higher, QQQ immediately sold off sharply until noon, bounced significantly for 75 minutes, and then started another leg back toward the noon lows.  Still, QQQ bounced more sharply than its peer EFTs over the final 40-minutes.  This action gave us large-body, black candles in all three major index ETFs.  SPY had wicks at both ends, failing a retest of the T-line (8ema) from below.  QQQ had a wick only at the lower end and it was a larger wick than the other two had.  However, DIA printed a new all-time high, leaving a large upper wick but did not even approach its own T-line from above. 

On the day, all 10 sectors were in the red with Healthcare (-2.22%) way out front (by almost 0.75%) leading the market lower.  On the other side, Energy (-0.06%) held up much better than the other sectors.  At the same time, SPY fell 0.77%, DIA fell 1.26%, and QQQ fell 0.47%.  VXX gained another 2.88% to close above 11 at a still very low at 11.06.  T2122 dropped out of its overbought territory, all the way down to the center of its mid-range at 46.34.  On the bond front, 10-year bond yields popped to 4.197% and Oil (WTI) fell 0.78% to close at $82.20 per barrel. This happened on heavy volume in DIA, above-average volume in QQQ, and average volume in the SPY.  So, again on Thursday we saw a head fake move higher at the open.  However, the Bears were in command all day after the open. 

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in higher than expected at 243k (compared to a forecast of 229k and the prior week’s 223k).  On the ongoing side, Weekly Continuing Jobless Claims were also up and above predictions at 1,867k (versus the 1,860k forecast and the prior week’s 1,847k reading).  At the same time, the Philly Fed Mfg. Index was up to 15.2 (compared to the June -2.5 value).  Later, the June US Leading Economic Indicators Index was up and a tick better than anticipate at -0.2% (compared to a -0.3% forecast and May’s -0.4%).  Then, after the close, the Fed’s Weekly Balance Sheet showed a $16 billion reduction, from $7.224 trillion to $7.208 trillion.

In economic speak news, on Thursday, Dallas Fed President Logan lauded progress made by the Fed in making sure that banks can tap Fed emergency liquidity if needed.  Logan said, “(The Fed Discount Window) has been effective in supporting the stability of the banking and financial systems and, in turn, the flow of credit to households and businesses.”  She continued, “A critical element of ensuring the safety of the banking system is making sure banks are prepared to use the discount window if circumstances call for it.”  Logan said more than 5,000 deposit-taking banks have completed the paperwork to be able to access the Discount Window in a crisis.  In addition, those banks have increased the pool of collateral available to back loans through the window from $1 trillion in 2023 to $3 trillion now.

After the close, DIT, ISRG, NFLX, and WAL all reported beats on both the revenue and earnings lines.  Meanwhile, AIR and PPG reported misses on revenue while beating on earnings.  However, SCHL missed on both the top and bottom lines.

In stock news, on Thursday, the Financial Times reported that WBD is discussing the potential to break up the company to boost stock valuations.  At the same time, F laid out plans to rework a Canadian plant that had been intended to build a future electric vehicle (starting in 2025) to instead build larger, gasoline-powered F-series pickup trucks.  Later, the Financial Times reported that META is in talks to purchase a 5% stake in eyewear maker ESLOF (EssilorLuxottica, which makes Ray-Ban).  At the same time, Adobe Analytics said that AMZN Prime Day boosted US online retail shopping to a record $14.2 billion.  This was up 11% from the event in 2023.  Later, Bloomberg reported that AAPL is in talks to license more Hollywood films, in order to boost its streaming content portfolio.  Elsewhere, NFLX announced it is discontinuing its cheapest “$11.99 Basic Plan” (the lowest ad-free plan).  NFLX had stopped taking new Basic Plan subscriptions in January.

Meanwhile, SPWR plummeted 40% after it informed clients that it was pausing some operations.  The cessations include ending some leases and power purchase agreements as well as halting new product shipping.  Elsewhere, SMAR share spiked (but ended only 5.45% higher) after Reuters reported the company is considering buyout offers from private equity firms.  After the close, Reuters reported that OpenAI has begun talks with AVGO over the development of a new AI chip, in an effort to overcome shortages of AI chips from NVDA and AMD.  (Earlier this year, OpenAI CEO Altman made news when he announced plans to raise billions to be used to set up AI chip manufacturing plants in partnership with TSM, INTC, and Korean Samsung.)

In stock legal and governmental news, on Thursday, the NHTSA announces that HYMTF (Hyundai) will recall 67k vehicles over fuel pump issues that can cause a loss of power during operation.  Later, C announced it had reached a settlement with a Montreal exchange to resolve claims the bank had failed to report options trades over the exchange’s reporting threshold.  The amount of the settlement was about $150k.  At the same time, the highest court in Trinidad and Tobago reaffirmed a decision that recognizes COP’s $1.33 billion arbitration claim against the country of Venezuela. The decision will enable COP to begin legal action to seize Venezuelan assets in that country to satisfy the claim.  Later, the NHTSA announced that STLA will recall 24k Chrysler hybrid minivans over fire risk. 

Overnight, Asian markets were mostly down with only three of the 12 exchanges hanging onto green territory.  Taiwan (-2.26%) and Hong Kong (-2.03%) were the worst performers (by a percent), but losses were widespread.  In Europe, we see a similar picture taking shape as only three of 15 bourses are in the green at midday.  Russia (+1.39%) is a notable outlier.  However, the CAC (-0.56%), DAX (-0.70%), and FTSE (-0.54%) lead the region lower in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a modestly lower start to the day.  The DIA implies a -0.16% open, the SPY is implying a -0.06% open, and the QQQ implies a -0.15% open at this hour.  At the same time, 10-Year bond yields are rising again to 4.203% and Oil WTI) is off 0.39% to $82.50 per barrel in early trading.

There is no major economic news scheduled for Friday.  However, Fed members Williams (10:40 a.m.) and Bostic (12:45 p.m.) speak.  The major earnings reports before the open include AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT.  There are no major reports scheduled for after the close.

So far this morning, CMA, FITB, HBAN, RF, and SLB all reported beats on both the revenue and earnings lines.  (Apparently, the hand-wringing over regional banks and loans is misplaced so far.)  Meanwhile, AXP, EEFT, HAL, SDVKY, and TRV all missed on revenue while beating on earnings.  However, ALV missed on both the top and bottom lines.

In miscellaneous news, after the close Thursday, a federal appeals court blocked the Biden Administration from continuing to implement a new student debt relief plan at the request of seven GOP-led states.  (The Dept. of Education said it had already granted $5.5 billion in debt relief to 414k borrowers under that “SAVE” plan.)  At the same time, the IMF said the US should raise taxes to reduce the US federal debt and put off any rate cut until at least late 2024.  Meanwhile, mortgage finance agency Freddie Mac told Reuters Thursday that the US 30-year fixed-rate mortgages fell to the lowest rate since mid-March, with the national average down to 6.77% from the prior week’s 6.89%.  Finally, Reuters reported that the state of CA reported that TSLA car registrations fell in Q2.  TSLA’s 52,211 new registrations for Q2 was down and a third consecutive quarter of falling new registrations. 

In overnight news, computer systems around the world failed Friday.  This took firms from banking, to stock exchanges, to airlines offline.  So far, there seem to be two unrelated causes.  The first was a MSFT Windows crashing due to a conflict between that system and CRWD’s security software.  Separately, MSFT reported outages of its Azure and Office 365 cloud systems.  Combined, this caused an unprecedented and widespread computer outage globally.  The exact causes are unknown, but it is likely to be related to a software update, possibly by MSFT since it had two separate set of issues.

With that background, it looks as if the markets are indecisive again this morning. SPY and QQQ gapped higher while DIA gapped a bit lower to start the premarket. All three major index ETFs have put in mostly wick since that point as the Bulls and Bears remain uncertain who has the strength in the early session. Overall, the short-term trend is Bearish. The rotation out of tech and into small-caps and the traditional mega-cap names also took a break (or stopped) on Thursday. However, for the mid-term and longer-term, there is no way to look at markets except to say they remain very bullish. In terms of extension, none of the three major index ETFs are stretched away from their T-line (8ema). Meanwhile, the T2122 indicator is back down into the center of its mid-range. Therefore, the market has room to run in either direction if the Bulls or Bears can find momentum. With regard to those 10 big dog tickers, eight of the 10 are in the green this morning. AAPL (+0.83%) and GOOGL (+0.74%) lead the way. Obviously, due to the overnight issues, MSFT (-1.38%) lags far behind and leads the morning dollar-volume traded. Lastly, don’t forget that it is Friday, Pay Day, and there is a weekend news cycle ahead. So, prepare your account for that situation.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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

Wednesday saw divergence in the market again.  SPY gapped down 1.05%, QQQ gapped down 1.63%, and DIA gapped up 0.24%.  Those opens were an indication of the day ahead for all three major index ETFs.  DIA spent the day slowly and steadily rallying after the gap up.  Meanwhile, QQQ and SPY followed their gaps down with bearish follow-through.  However, all three did bob along their extremes the last couple hours (DIA along the highs and SPY/QQQ along the lows).  This action gave us a large body white candle with a small upper wick in the DIA, a gap-down black-bodied Inverted Hammer type candle that crossed below its T-line (8ema) in the SPY, and a very large gap-down, very-large, black-bodied candle that crossed far below its T-line in the QQQ.  (This was the QQQ’s worst day since 2022, hit by a double whammy of isolationist comments from Trump and a Bloomberg report that the Biden Administration may again tighten export restrictions on tech products being sold to China.)

On the day, six of the 10 sectors were in the red with Technology (-3.48%) way, way out front (by almost 2%) leading the market lower.  On the other side, the Consumer Defensive (+1.14%) sector held up better than the others.  At the same time, SPY fell 1.40%, DIA gained a 0.55%, and QQQ plummeted 2.94%.  VXX gained 3.27% to close at a still extremely low at 10.75.  T2122 fell again but remains in the top half of its overbought territory at 91.48.  On the bond front, 10-year bond yields dropped again to 4.157% and Oil (WTI) spiked 2.67% to close at $82.92 per barrel.  This happened on very heavy volume in QQQ, greater-than-average volume in DIA, and below-average volume in SPY.  So, again Wednesday we saw a divergent day.  DIA powered its way higher, meanwhile Trump’s comments helped crush the big tech stocks that tend to lead the SPY and QQQ.

The major economic news scheduled for Wednesday included June Building Permits, which were about as expected at 1.446 million (compared to a 1.400 million forecast and the May 1.399 million reading).  At the same time, the June Housing Starts were stronger than expected at 1.353 million (versus the 1.300 million forecast and the May 1.314 million reading).  Later, June Industrial Production (Month-on-Month) was down but higher than predicted at +0.6% (compared to a +0.3% forecast but lower than the May +0.9%). On an annual basis, June Industrial Production was up sharply at +1.58% versus May’s +0.34%.  Later, EIA Crude Oil Inventories showed a much larger drawdown than anticipated at -4.870 million barrels (compared to a forecasted -0.900 million barrels and the previous week’s -3.443 million barrels). 

In economic speak news, on Wednesday Fed Governor Waller indicated that a rate cut “is drawing closer.”  However, he also indicates that likely means September or later by saying, “I believe current data are consistent with achieving a ‘soft landing,’ and I will be looking for data over the next couple months to buttress this view.” Waller went on, “While I don’t believe we have reached our final destination, I do believe we are getting closer to the time when a cut in the policy rate is warranted.”  He continued, saying that under the most optimistic scenario, “I could envision a rate cut in the not-too-distant future.”

After the close, AA, OZK, CCI, DFS, EFX, STLD, and SNV all reported beats on both the revenue and earnings lines.  Meanwhile, KMI, LBRT, and UAL missed on revenue while beating on earnings.  On the other side, FNB and WTFC beat on the revenue line but missed on earnings.

In stock news, on Wednesday, Information (Technology trade publication) reported that both GOOGL and MSFT are offering Chinese companies access to NVDA’s high-end chips (illegal to export to China due to sanctions) via cloud services.  At the same time, LLY (-3.82%) and NVO (-03.87%) stocks fell after private Swiss competitor Roche announced positive Phase 1 study results of its oral GLP-1 drug.  Later, DFS said it will sell its student loan portfolio to CG and KKR for up to $10.8 billion.  (This is a premium over the $10.1 billion principal owed on the loans but far below expected total payback if the loans are repaid with interest.  Meanwhile, the Wall Street Journal reported that BYND has initiated debt restructuring discussions with bondholders due to declining liquidity that has resulted from revenue declines.  After the close, DRI announced it has struck a deal to acquire CHUY for $605 million ($37.50 per share).  (CHUY closed at $25.27 per share.)

In stock legal and governmental news, on Wednesday, COF announced it will commit $265 billion over 5 years to “lending, philanthropy and investment” (read 99.9% to lending operations and investment).  This was done in an attempt to gain approval of its acquisition of DFS and included a promise to maintain lending operations to low- and-moderate-income communities.  Later, the NHTSA announced BMWYY will recall 1,145 US vehicles over air bag concerns.  At the same time, EU antitrust regulators are soliciting rivals’ opinions on a deal between GOOGL and Korean-based Samsung on AI chatbots.  Later, the NTSB announce it has scheduled 20 hours of hearings related to the BA 737 MAX 9 in-flight door plug blowout on an ALK flight in January.  Hearings will take place August 6-7, with 10 hours each day.

Overnight, Asian markets were mixed but leaned slightly to the green on breadth but with the biggest movers still reeling from Trump’s comments.  Japan (-2.36%) and Tiawan (-1.56%) remain scared of being left to the wolf (China) by a transactional and isolationist MAGA administration.  Meanwhile, India (+0.76%) was by far the biggest gainer in the region.  In Europe, the bourses are mostly in the green with only three of 15 exchanges showing red at midday.  The CAC (+0.48%), DAX (+0.19%), and FTSE (+0.58%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed start to the session.  The DIA implies a -0.16% open, the SPY is implying a +0.10% open, and the QQQ implies a +0.35% open at this hour.  At the same time, 10-Year bond yields are back up to 4.186% and Oil (WTI) is just on the red side of flat at $82.78 per barrel in early trading.

The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, and Philly Fed Mfg. Index (all at 8:30 a.m.), June US Leading Economic Indicators Index (10 a.m.), and the Fed’s Balance Sheet (4:30 p.m.).  We also hear from Fed member Daly (6:05 p.m.) and Fed Governor Bowman (7:45 p.m.).  The major earnings reports before the open include ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, and TXT.  Then, after the close, AIR, ISRG, NFLX, PPG, and SCHL report.

In economic news later this week, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, ABT, BKU, CBSH, CHI, HXL, INFY, KEY, MTB, MAN, NVS, TSM, TELNY, TLSNY, and VIRT all reported beats on both the revenue and earnings lines.  Meanwhile, DPZ, MMC, NOK, and TXT missed on revenue while beating on earnings.  On the other side, BX and TCBI beat on revenue while missing on earnings.  However, SNA missed on both the top and bottom line.

In miscellaneous news, Bloomberg reported Wednesday that US is suffering from a massive natural gas glut.  Projections now expect that by October, inventories are expected to reach the highest level since at least 2016.  This is the reason cited for the collapse of the October-January Futures spread.  Elsewhere, President Biden was diagnosed with COVID-19.  Later, the US Dept. of Education announced adjustments to a prior plan which will forgive another $1.2 billion in student debt (covering 35k public service workers).  Finally, at the RNC Convention, the newly appointed VP candidate Vance blamed US wage losses on China.  Felon Navarro also went directly from prison to the stage.  Rather than his previous anti-China talking points, this time (probably understandably) he continued his GOP victimhood agenda, lying about the 2020 election, his plan to steal it, the January 6 attack on the capital, and his conviction for defying a Congressional subpoena.

With that background, it looks as if the markets are indecisive this morning with none of the three major index ETFs showing a premarket candles that is more body than wick. Overall, the short-term trend is mixed (QQQ and SPY down while DIA is up). We are seeing continued rotation out of tech and into small-caps and the traditional mega-cap names. However, for the mid-term and longer-term, there is no way to look at markets except to say they are extremely bullish. In terms of extension, only DIA is stretched (to the upside). Meanwhile, the T2122 indicator remains well overbought. Therefore, the market may still be in need of more rest or a pullback. (Just remember, the market can stay over-extended longer than we can stay solvent predicting a turn too early.) With regard to those 10 big dog tickers, all 10 are in the green this morning. NVDA (+2.17%) and AMD (+1.88%) trying to mount a comeback by the AI chip leaders.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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 jumped higher again on Tuesday.  SPY gapped up 0.25%, DIA gapped up 0.37%, and QQQ gapped up 0.29% to start the day.  From there, was saw divergence. SPY chopped its way sideways until 2:15 p.m. before rallying into the close.  At the same time, DIA rallied sharply from the open until 11:15 a.m.  Then it meandered sideways until 1:30 p.m. before rallying more modestly but steadily the rest of the day.  For its part, after the gap higher, QQQ immediately faded the gap and sold off to reach the lows of the day at 12:30 p.m.  The rest of the say saw a modest QQQ rally that got it back just above the prior close by the end of the session. This action gave us a huge, gap-up, white candle in the DIA (with tiny upper wick), a gap-up white-bodied candle in the SPY, and a black-bodied long-legged Spinning Top in the QQQ. DIA and SPY both printed new all-time highs and new all-time high closes.  Meanwhile, QQQ retested its T-line (8ema) from above and passed the test again.

On the day, all 10 sectors were in the green with Industrials (+2.72%) leading the market, but the gains were wide-spread with five sectors up more than 1.70%.  On the other side, Energy (+0.14%) was by far the laggard sector.  At the same time, SPY gained 0.58%, DIA gained a whopping 1.81%, and QQQ gained 0.04%. (It is worth noting that for the fourth consecutive day we have seen a rotation into small-caps with IWM (+3.76%) way out in front of the three major index ETFs.  VXX gained 0.97% to close at a still extremely low at 10.41.  T2122 spiked to the extreme top end of its overbought territory at 99.20.  On the bond front, 10-year bond yields dropped sharply to 4.161% and Oil (WTI) fell 1.31% to close at $80.84 per barrel.  This happened on very heavy volume (twice the average volume) in DIA, but less than average volume in SPY and QQQ.  So, Tuesday was a divergent day with a modest selloff in most of the tech names that have led markets for ages.  NVDA (-1.62%), GOOGL (-1.40%), and META (-1.28%) fell.  However, among the DIA names, UNH (+6.47%), CAT (+4.31%), BA (+3.91%), and HD (+2.97%) spiked.  (It is worth noting that 19 of the 30 were up more than 1.00%.) 

The major economic news scheduled for Tuesday included the June Import Price Index, which was flat and lower than expected at 0.0% (compared to a forecast of +0.2% but higher than the May -0.2% reading).  On the other side, the June Export Price Index was also lower than expected at -0.5% (versus a -0.1% forecast but not as far down as in May when the value was -0.7%).  At the same time, June Core Retail Sales were much stronger than predicted at +0.9% (compared to a forecasted +0.2% and a May reading of +0.4%).  For the headline number, June Retail Sales were flat at 0.0% (versus the forecast of -0.3% and the May value of +0.3%).  Later, May Business Inventories grew 0.5% (compared to a +0.4% forecast and April’s +0.3%).  At the same time, May Retail Inventories were flat at 0.0% (versus a 0.0% forecast and down from April’s +0.3%).  Then, after the close, the API Weekly Crude Oil Stocks report showed a significant drawdown of 4.440 million barrels (compared to the prior week’s -1.923-million-barrel drawdown). 

In economic speak news, on Tuesday, Fed Governor Kugler expressed cautious optimism that inflation is falling back to the FOMC’s 2% target.  She said, “We’re seeing more progress on all three categories now.” (She was referring to inflation on goods, services, and housing.)  Kugler continued, “I’m cautiously optimistic that we’re seeing progress and the type of progress that we need to get back to 2%.”  She indicated that the job market is rebalancing, saying, “This continued rebalancing suggests that inflation will continue to move down toward our 2% target.”  She also said that if current trends continue, “I anticipate that it will be appropriate to begin easing monetary policy later this year.”

After the close, HWC, IBKR, and OMC all reported beats on both the revenue and earnings lines.  Meanwhile, JBHT missed on both the top and bottom lines.

In stock news, on Tuesday, PM announced it would be expanding the production of its nicotine pouches (Zyn), investing $600 million to build a new CO plant to expand their production.  Later, Russian tech firm YNDX spun off a portion of its business called Nebius Group, located in Amsterdam, for $5.4 billion.  (EU sanctions against the founder of YNDX were lifted in March, allowing the deal to proceed.)  At the same time, Bloomberg reported that VZ is in talks over the possibly of selling 5,000-6,000 cell service towers across the US.  VZ is reportedly looking for $3 billion.  (In 2015, VZ sold 11,000 towers to AMT for $5 billion.)  Meanwhile, TCRT announced a 1-for-10 reverse split to take effect July 17 at 5 p.m.  At the same time, 28k flight attendants will vote on whether to authorize a strike as their AFA union will begin negotiating a new contract with UAL.  After the close, Bloomberg reported that TSLA is hiring hundreds of new employees for its yet to be approved robotaxi program.  (Each robotaxi must constantly be monitored by a human supervisor due to deficiencies in the long claimed “full self-driving” system.)

In stock legal and governmental news, on Tuesday, Reuters reported that the FTC has requested details on its deal to hire the top executives and researchers from AI startup Adept.  (Similar investigations are also ongoing related to MSFT and GOOGL hiring away the main talent from AI startups.)  At the same time, SKX filed suit against private brand LL Bean, alleging the latter infringe on two of SKX’s patents.  Later, Reuters reported that the European Commission has told VLKAF (Volkswagen) and BMWYY (BMW) that they may consider lowering the tariffs on those two carmakers’ imports from China of electric vehicles.  (The article said the EC is willing to classify the two automakers as “cooperating companies,” which would make them eligible for 20.8% tariffs compared to the general China EV tariff of 37.6%.)  Meanwhile, TRP said that an arbitration tribunal has thrown out its claim seeking to recover $15 billion from the US government related to the cancellation of the Keystone XL pipeline.  At the same time, a group of restaurants in the Houston area filed a $100 million lawsuit against CNP alleging the utility has displayed incompetence and negligence in efforts to restore power quickly following Hurricane Beryl. 

Overnight, Asian markets were evenly mixed. Taiwan (-0.95%) and South Korea (-0.80%) paced the losses while New Zealand (+0.88%) and Australia (+0.73%) led the gainers.  In Europe, with the notable exception of Russia (+1.39%) we see red across the board at midday.  The CAC (-0.57%), DAX (-0.81%), and FTSE (-0.33%) lead the region lower in early afternoon trade.  Meanwhile, in the US, markets are looking to gap lower on Trump’s statements that foreign nations (Taiwan and South Korea…and by implication Europe) should pay for US military facilities and expenditures).  The DIA implies a -0.34% open, the SPY is implying a -1.01% open, and the QQQ implies a -1.55% open at this hour.  At the same time, 10-Year bond yields are down to 4.172% and Oil (WTI) is up half a percent to $81.15 per barrel in early trading.

The major economic news scheduled for Wednesday includes June Building Permits and June Housing Starts (both at 8:30 a.m.), June Industrial Production (9:15 a.m.), EIA Crude Oil Inventories (10:30 a.m.), and Fed Beige Book (2 p.m.).  Fed Governor Waller also speaks at 9:35 a.m.  The major earnings reports before the open include ALLY, ASML, CFG, ELV, FHN, JNJ, NTRS, PLD, SYF, and USB.  Then, after the close, AA, CCI, DFS, EFX, KMI, LBRT, STLD, SNV, UAL, and WTFC report.

In economic news later this week, on Thursday, we get Weekly, Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, US Leading Economic Indicators Index, Fed’s Balance Sheet.  We also hear from Fed member Daly and Fed Governor Bowman.  Finally, on Friday, Fed members Williams and Bostic speak.

In terms of earnings reports later this week, Thursday, ABT, ALK, BX, CTAS, CHI, DPZ, HXL, INFY, KEY, MTB, MAN, MMC, NOK, NVS, SNA, TSM, TXT, AIR, ISRG, NFLX, PPG, and SCHL report.  Finally, on Friday, AXP, ALV, CMA, EEFT, FITB, HAL, HBAN, RF, SDVKY, SLB, TRV, and WIT report.

So far this morning, ASML, ELV, JNJ, NTRS, SYF, and USB all reported beats on both the revenue and earnings lines.  Meanwhile, ALLY and ASAZY missed on revenue while beating on earnings.  On the other side, CFG and FHN beat on revenue while missing on earnings.  ASML and ALLY posted significant earnings beats.  However, ASML lowered forward guidance.

In miscellaneous news, BAC released the results of its survey of fund managers.  This time, the survey finds that fund managers are still bullish on stocks.  However, growth expectations are the lowest since March of 2022.  27% now expect a softening global economy over the next 12 months (up sharply from just 6% feeling that way in June).  Nonetheless, 68% still expect a soft landing in the US, with another 18% expecting no landing at all.  Only 11% are expecting a hard landing. In addition, 67% of the surveyed expect no recession in the next 12 months.  Meanwhile, Bloomberg reported that Wall Street’s biggest banks have pulled off a clean sweep this quarter, all reporting higher-than-expected gains. They have averaged an 18% increase in revenue during Q2. Finally, after the close, Cox Automotive reported car repossessions were up 23% in the first half of 2024 compared to the first half of 2023.

With that background, it looks as if the market is dropping and will be seeking shelter after the disgraced ex-President’s remarks. QQQ gapped down through its T-line (8ema), SPY gapped lower and is now retesting its T-line from above, but DIA is just giving a modest lower candle in the early session after a massive gain Tuesday. All three major index ETFs have printed a black-body candle since the start of the early session. Overall, the short-term trend remains bullish but perhaps under pressure. We are seeing rotation out of tech and into small-caps and the traditional mega-cap names. However, for the mid-term and longer-term, there is no way to look at markets except to say they are extremely bullish. In terms of extension, only DIA is stretched (to the upside). Meanwhile, the T2122 indicator remains extremely overbought. Therefore, the market may be in need of some rest or a pullback. (Just remember, the market can stay over-extended longer than we can stay solvent predicting a turn too early.) With regard to those 10 big dog tickers, nine of the 10 are in the red this morning. AMD (-4.51%), NVDA (-4.05%) and any other name that depends on Taiwan is down hard on Trump’s isolationist comments. Only INTC (+0.58%) has managed to stay on the green side of flat among those market leaders.

As always, be deliberate and disciplined…but don’t be stubborn. If you have a loss, admit you were wrong and take that loss before it gets out of hand. And when the price does move in your direction, always move your stops in your favor and take a little profit off the table. You have to keep the “Legend of the Man in the Green Bathrobe” in mind. In a winning situation, it is NOT HOUSE MONEY you’re betting, it’s YOUR MONEY! There is no reason to keep raising your bet (risk) size just because you’ve had a win. Finally, remember that trading is not a hobby, it’s a job. The gains are real and so is the risk. So, treat it that way. Do the work and follow the process. Stick to your trading rules, trade with the trend, and take those profits when you have them. Do the work!

See you in the trading room.

Ed

🎯 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