Markets started off flat Thursday with DIA having the biggest move at the open.  SPY and QQQ both opened less than 0.01% lower while DIA “gapped” down 0.10%. From there, both SPY and QQQ meandered sideways, re-crossing their opening level several times.  Then about 1 p.m. both started a slide to the downside that lasted the rest of the day.  For its part, DIA rallied after the open, reaching the high if the say at 10 a.m., and then starting a long, slow selloff that lasted the entire day.  This action gave us black-bodied candles with upper wicks in all three major index ETFs.  SPY and QQQ printed Bearish Harami candles, while DIA just gave us a big black candle.  All three remain above their T-line (and did not ever retest that average on the day).  This all happened on well below-average volume.

On the day, five of the 10 of the sectors were in the red and the other five in the green as Healthcare (-1.03%) was the biggest mover and led the way lower.  On the other side, Consumer Defensive (+0.56%) led a far more tightly-packed group of positive sectors.  At the same time, SPY lost 0.16%, DIA lost 0.50%, and QQQ lost 0.28%. VXX rose just a tad to close at 42.42 and T2122 dropped back right into the center of its mid-range to close at 53.44.  Meanwhile, 10-Year bond yields fell just slightly to 4.18% while Oil (WTI) was just on the red side of flat, closing at $68.52 per barrel. So, Thursday was basically a day of consolidation.  That was the first such day in a while for SPY and QQQ, but a continuation of a consolidation process that has lasted 1.5 weeks in DIA. 

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in higher than expected at 224k (compared to a forecast and previous week’s value of 215k). In terms of ongoing claims, Weekly Continuing Jobless Claims were well down at 1,871k (versus a forecast of 1,910k and the prior week’s reading of 1,896k).  At the same time, Oct. Imports were down to $339.60 billion (compared to the September $352.30 billion number).  Meanwhile, Oct. Exports were only down a touch to $265.70 billion (versus September’s $267.90 billion).  Together, this gave us an Oct. Trade Balance that was down to $73.80 billion (compared to a forecasted $75.70 billion and September’s $83.80 billion reading).  Later, after the close, the Fed Balance Sheet showed a $9 billion decrease for the week, falling from $6.905 trillion to $6.896 trillion.

In Fed news, on Thursday, there were no Fed speakers of note. However, the New York Fed released a study that shows tariffs during Trump’s first term hurt stock values and reduced business sales, profits, and employment.  The report said, “most firms suffered large valuation losses on tariff-announcement days. We also document that these financial losses translated into future reductions in profits, employment, sales, and labor productivity.”  The report continued, “because global supply chains are complex and foreign countries retaliate … Our results show that firms experienced large losses in expected cash flows and real outcomes. These losses were broad-based, with firms exposed to China experiencing the largest losses.”  (The report makes no comment on Trump’s newly threatened 25% tariffs on Mexico and Canada or 10% tariff on Chinese goods.  It also makes no mention of the tariffs in the last four years of the Biden Administration.)

After the close, DOCU, HPE, LULU, WOOF, ULTA, VEEV, and VSCO all reported beats on both the revenue and earnings lines.  Meanwhile, COO missed on revenue while beating on earnings.

Overnight, Asian markets leaned toward the red side with eight of the 12 exchanges below break-even.  That said, China had a good day with Hong Kong (+1.56%), Shenzhen (+1.48%) and Shanghai (+1.05%) making the biggest moves in the region.  Japan (-0.77%), Singapore (-0.69%) and New Zealand (-0.68%) paced the losses.  In Europe, we see a mixed picture taking shape at midday with seven of the 14 bourses above break-even.  The CAC (+1.32%), DAX (+0.16%), and FTSE (-0.12%) lead the region in mixed early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward an open just on the red side of flat again.  The DIA implies a -0.08% open, the SPY is implying a =0.09% open, and the QQQ implies a -0.03% open at this hour.  At the same time, 10-Year Bond yields are down slightly to 4.178% and Oil (WTI) is off 1.04% to $67.59 per barrel in early trading.

The major economic news scheduled for Friday we get Nov. Average Hourly Earnings, Nov. Nonfarm Payrolls, Nov. Private Nonfarm Payrolls, Nov. Participation Rate, Nov. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations, October Consumer Credit.  We also hear from Fed members Bowman and Daily.  The major earnings reports scheduled for before the open are limited to DOOO and GCO.  Then, after the close, there are no major reports scheduled.

With that background, market is again undecided early in the premarket session.  All three major index ETFs opened close to flat and have printed very small candles with wicks on both ends up to this point of the early session. Keep in mind that the SPY, DIA, and QQQ all sit very near all-time highs.  All three are also still above their T-line (8ema).  So, the short-term trend is now bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, yesterday’s consolidation gave the T-line a chance to make up ground on the QQQ.  So, none of the big three are too far stretched from their 8ema.  The T2122 indicator ais also back in the very center of its mid-range. So, both sides of the market have room to move today if they can find momentum.  In terms of the 10 Big Dogs, five of the 10 are in green numbers at this point of the morning while the other five show red.  GOOGL (-0.16%) is leading a tightly packed group in modest losses.  On the other side, TSLA (+1.34%) is way, way out front (by a full percent) pacing the gainers.  TLSA is also leading in terms of dollar-volume traded, sitting at a about 2.5 times as much traded than NVDA (-0.12%), which itself has traded almost 4 times as much as the next one of the big dogs.  Finally, remember its Friday.  Prepare your account for the weekend news cycles and don’t forget to take profits.  (It is payday after all.) 

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 was pretty much all about the open.  SPY gapped up 0.30%, DIA gapped up 0.45%, and QQQ gapped up 0.66%.  From there, all three major index ETFs did some form of grinding sideways until 2 p.m.  At that point, all three started a steady, but modest, rally that ran into the close.  This action gave us gap-up, large-body, white body candles in all three major index ETFs.  All three printed new all-time highs and closed at new all-time high closes.  This happened on below-average volume in SPY and QQQ as well as average volume in the DIA.

On the day, six of the 10 of the sectors were in the red again and the other four in the green as Energy (-1.90%) was way, way out in front leading the majority of sectors to the downside.  On the other side, Technology (+1.67%) far ahead of any other sector.   Meanwhile, SPY gained 0.62%, DIA lost 0.68%, and QQQ gained 1.24%. VXX gained half a percent to close at 42.33 and T2122 dropped back a little more, but remains in the top part of the mid-range to close at 64.03. At the same time, 10-Year bond yields fell to 4.184% while Oil (WTI) dropped 1.73%, closing at $68.73 per barrel. What we saw Wednesday saw gaps higher across the market.  That was followed by a sideways grind most of the day and then a modest rally into the close. All three major index ETFs printed new all-time highs and closed at new all-time high closes. So, the Bulls were clearly in control…even if most of the gain came on the opening gap higher.

The major economic news scheduled Wednesday included November ADP Nonfarm Employment Change, which came in with lower growth than expected at +146k (versus a +166k forecast and October’s +184k reading).  Later, Nov. S&P Global Services PMI also came in light at 56.1 (compared to a 57.0 forecast, but up from October’s 55.0 value).  When combined with Tuesday’s Nov. S&P Global Mfg. PMI this gave us a Nov. S&P Global Composite PMI of 54.9 (versus a 55.3 forecast, but up from October’s 54.1 number).  Later, Oct. Factory Orders were lighter than predicted at +0.2% (compared to a +0.3% forecast but up significantly from September’s -0.2% reading).  At the same time, Nov. ISM Non-Mfg. Employment Index was down to 51.5 (versus a 53.0 forecast and October value).  Meanwhile, the Nov. ISM Non-Mfg. PMI itself was also low at 52.1 (compared to a 55.5 forecast and October’s 56.0 number).  Later, EIA Weekly Crude Oil Inventories showed a much bigger drawdown than anticipated at -5.073 million barrels (versus a forecasted draw of 1.600 million barrels and the previous week’s -1.844 million barrels).

In Fed news, on Wednesday, St. Louis Fed President Musalem told Bloomberg that he expected “additional easing of moderately restrictive policy toward neutral will be appropriate over time.” However, he hedged his bets on how much or how fast, saying, “Along this baseline path, it seems important to maintain policy optionality, and the time may be approaching to consider slowing the pace of interest rate reductions, or pausing, to carefully assess the current economic environment, incoming information and evolving outlook.”  Later, Fed Chair Powell told an interview, “We can afford to be a little more cautious as we as we try to find neutral rate.”  Powell continued, “The economy is stronger than we thought it was going to be in September … the labor market is is better, and inflation is coming a little higher.”  After his speech, Powell was asked about being undermined by a “Shadow Fed Chairman” (an idea broached by Trump’s nominated Treasury Sec.).  Powell said, “I don’t think that’s on the table at all … There’s a set of institutional relationships between the Fed and every administration … I fully expect that we’ll have the same general kinds of relationships (with Trump Admin. officials).  There’s got to be trust and mutual respect and acknowledgement of the different authorities and boundaries that we have.”

After the close, FIVE, PVH, and SNPS reported beats on both revenue and earnings lines.  Meanwhile, AEO missed on revenue while beating on earnings.  On the other side, GEF beat on revenue while missing on earnings.

Overnight, Asian markets were mostly green with just three of the 12 exchanges below the break-even level.  India (+0.98%) paced the gains while Hong Kong (-0.92%) and South Korea (-0.90%) were by far the biggest losers.  In Europe, we see a similar picture taking shape at midday with just four of 14 bourses in the red.  The CAC (+0.12%), DAX (+0.31%), and FTSE (-0.08%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a start just on the red side of flat.  The DIA implies a -0.02% open, the SPY is implying a -0.05% open, and the QQQ implies a -0.06% open at this hour.  At the same time, 10-Year Bond yields are back up a touch to 4.217% and Oil (WTI) is back up a quarter-percent to $68.67 (after an overnight slump) in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Oct. Imports, Oct. Exports, Oct. Trade Balance (all at 8:30 a.m.), and Fed Balance Sheet (4:30 p.m.). The major earnings reports scheduled for before the open are limited to BMO, BF.A, CAL, CM, CSIQ, DG, GMS, KFY, KR, PDCO, SAIC, SIG, and TD.  Then, after the close, COO, DOCU, HPE, LULU, WOOF, ULTA, VEEV, and VSCO report.

In economic news later this week, on Friday, we get, Nov. Average Hourly Earnings, Nov. Nonfarm Payrolls, Nov. Private Nonfarm Payrolls, Nov. Participation Rate, Nov. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations, October Consumer Credit.  We also hear from Fed members Bowman and Daily.

In terms of earnings reports later this week, on Friday, we hear from DOOO and GCO.

So far this morning, CM, KFY, and SAIC reported beats on both the revenue and earnings lines.  Meanwhile, CSIQ missed on revenue while beating on earnings. On the other side, BMO, DG, GMS, PDCO, and TD all beat on revenue while missing on the earnings line.  However, CAL and SIG missed on both the top and bottom lines.

With that background, markets seem undecided early in the premarket.  All three major index ETFs are just on the red side of flat.  QQQ started the early session with a gap down, but has rallied to print a white-bodied candle to get nearly back to even. Keep in mind that the SPY, DIA, and QQQ sit at all-time highs.  All three are above their T-line (8ema).  So, the short-term trend is now bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, only QQQ is now stretched above its T-line, but SPY and DIA are still not extended. The T2122 indicator remains in the top half of its mid-range. So, both sides of the market have room to move, but the Bears may have more slack to work with today. In terms of the 10 Big Dogs, nine of the 10 are in green numbers at this point of the morning again, albeit on modest moves. GOOGL (+0.44%) is leading the way higher while AMD (-0.22%) is the only big dog in the red.  In a return to post-election norm, TLSA (+0.39%) is leading in terms of dollar-volume traded, sitting at a little less than 1.5 times as much traded than NVDA (+0.10%), which itself has traded almost 9 times as much as the next one of the 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

Tuesday saw a modest divergence at the opening bell.  SPY opened 0.04% lower, DIA opened 0.10% higher, and QQQ gapped down 0.27%.  From there, SPY and QQQ just meandered sideways in a tight channel before making a modest and slow afternoon rally.  QQQ printed a new all-time high and new all-time high close.  SPY printed a new all-time high close.  At the same time, after its lower open, DIA followed-through to the downside until 11:45 a.m.  Then it rallied almost back to the prior close level before meandering sideways the rest of the day. This action gave us Spinning Top candles in the SPY and DIA as well as a large-body white candle.  SPY was a white-body Spinning Top and DIA was a black-body Spinning Top. This all happened on well below-average volume in all three major index ETFs.

On the day, six of the 10 of the sectors were in the red again and the other four in the green as Utilities (-0.78%) was out in front pacing the losses and leading the market to the downside.  On the other side, Communications Services (+0.60%) led the gainers.   Meanwhile, SPY gained 0.05%, DIA lost 0.19%, and QQQ gained 0.31%. VXX fell half a percent to close at 42.07 and T2122 dropped back a little more, but remains in the top part of the mid-range to close at 69.79. At the same time, 10-Year bond yields rose a bit to 4.226% while Oil (WTI) popped 2.76%, closing at $69.98 per barrel. So, what we saw Tuesday was basically consolidation by the SPY and DIA (even though SPY did print a new all-time high close).  However, QQQ continued its rally despite a gap down to start the day.  META (+3.51%), AMZN (+1.30%), AAPL (+1.28%), and NVDA (+1.18%) led that rally in the QQQ.

The major economic news scheduled for Tuesday was limited to October JOLTs which came in higher than expected at 7.744 million (compared to a 7.510 million forecast and a September 7.372 million reading).  Then, after the close, the API Weekly Crude Oil Stock Report showed an unexpected inventory build of 1.232 million barrels (versus a forecasted 2.060-million-barrel drawdown and the prior week’s 5.935-million-barrel drawdown).

In Fed news, on Tuesday, FOMC members steered away from providing rate guidance ahead of December’s meeting.  San Francisco Fed President Daly told Fox Business “I think we need to have an open mind here.”  Later, Chicago Fed President Goolsbee said, “Over the next year it feels to me like rates come down a fair amount from where they are now, but we meet every six weeks because the conditions change.”  For her part, Fed Governor Kugler simply gave backward-looking comments to a Detroit event, saying, “I view the economy as being in a good position after making significant progress in recent years toward our dual-mandate goals of maximum employment and stable prices.” 

After the close, PSTG, OKTA, and MRVL reported beats on both the revenue and earnings lines.  Meanwhile, CRM beat on revenue while missing on earnings.

Overnight, Asian markets were mixed with six exchanges in the red, five in the green, and one unchanged.  South Korea (-1.44%) paced the losses, as expected given the political turmoil of the last 24 hours in that country.  Meanwhile, Taiwan (+0.99%) led the gainers.  In Europe, the bourses are mostly green at midday with four in the red and 10 in the green.  The CAC (+0.52%), DAX (+1.05%, and FTSE (-0.23%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a green start to the day.  The DIA implies a +0.42% open, the SPY is implying a +0.30% open, and the QQQ implies a +0.64% open at this hour.  At the same time, 10-Year Bond yields are up to 4.261% and Oil (WTI) is just on the green side of flat at $70.00 per barrel in early trading.

The major economic news scheduled for Wednesday includes Nov. ADP Nonfarm Employment Change, Nov. S&P Global Services PMI, Nov. S&P Global Composite PMI, Oct. Factory Orders, Nov. ISM Non-Mfg. Employment, Nov. ISM Non-Mfg. PMI, EIA Crude Oil Inventories, and Fed Beige Book.  We also hear from Fed Chair Powell. The major earnings reports scheduled for before the open are limited to CPB, CHWY, CBRL, DLTR, FL, HRL, RY, and THO.  Then, after the close, AEO, FIVE, GEF, PVH, and SNPS.

In economic news later this week, on Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Oct. Imports, Oct. Exports, Oct. Trade Balance, and Fed Balance Sheet.  Finally, on Friday, we get, Nov. Average Hourly Earnings, Nov. Nonfarm Payrolls, Nov. Private Nonfarm Payrolls, Nov. Participation Rate, Nov. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations, October Consumer Credit.  We also hear from Fed members Bowman and Daily.

In terms of earnings reports later this week, on Thursday, BMO, BF.A, CAL, CM, CSIQ, DG, GMS, KFY, KR, PDCO, SAIC, SIG, TD, COO, DOCU, HPE, LULU, WOOF, ULTA, VEEV, and VSCO report.  Finally, on Friday, we hear from DOOO and GCO.

So far this morning, CPB, DLTR, and RY reported beats on both the revenue and earnings lines. Meanwhile, CHWY beat on revenue while missing on earnings. However, FL, HRL, and THO missed on both the top and bottom lines.

With that background, markets seem bullish early in the day.  All three major index ETFs gapped up a bit to start the premarket and all three have printed small white-bodied candles since that point.  However, it is worth noting all three have backed off just slightly from their absolute high of the early session.  In addition, keep in mind that the SPY and QQQ sit at all-time highs while DIA is less than half a percent below its own all-time high.  All three are above their T-line (8ema).  So, the short-term trend is now bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, QQQ is now stretched above its T-line, but SPY and DIA are still not too far extended. The T2122 indicator is now back in the top half of its mid-range. So, either side has room to move, but the Bears may have more slack to work with today. In terms of the 10 Big Dogs, nine of the 10 are in green numbers at this point of the early morning session. NVDA (+1.16%) is leading the way higher while META (-0.27%) is the only big dog in the red and by far the laggard of the group.  In a return to pre-election norm, NVDA is leading in terms of dollar-volume traded, sitting at a little less than 1.5 times as much traded than TSLA, which itself has traded almost 4 times as much as the next one of the 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

Markets diverged again at the start of the day on Monday.  SPY opened 0.09% higher, DIA opened 0.11% higher, and QQQ gapped up 0.26%.  From there, SPY wandered to the side with a very slight bullish trend the rest of the day.  At the same time, after the open, QQQ sold off sharply for an hour before meandering sideways the rest of the day.  Finally, QQQ rallied sharply for and hour and the less strongly until 12:25 p.m.  Then it drifted modestly lower until 2:30 p.m. when it began a modest rally that lasted into the close.  This action gave us divergent candles among those big three major index ETFs as well.  QQQ printed a dap up big white candle that printed a new all-time high and new all-time high close.  It is also at the breakout of a J-hook pattern.  For its part, SPY printed a gap-up, white-bodied Spinning Top candle that was also printed a new all-time high and new all-time high close.  However, DIA printed a large-body, black candle that only missed being a Dark Cloud Cover by virtue of Friday’s upper wick. 

On the day, six of the 10 of the sectors were in the red and the other four in the green as Technology (+1.21%) was far out in front leading the market higher while Utilities (-1.55%) was lagging far behind.  Meanwhile, SPY gained 0.18%, DIA lost 0.30%, and QQQ gained 1.09%. VXX fell slightly again to close at 42.30 and T2122 dropped back a little further out of its overbought territory into the top part of the mid-range to close at 71.03.  At the same time, 10-Year bond yields fell a bit to 4.192% while Oil (WTI) was flat, closing at $68.08 per barrel. So, Tuesday was a day where SPY and QQQ gapped up, but then diverged with SPY melting higher.  At the same time, DIA gapped down and sold off before reversing to rally more strongly the rest of the day.  This happened on well below-average volume in all three major index ETFs.

The major economic news scheduled for Monday was limited to November S&P Global Mfg. PMI, which came in a bit higher than expected at 49.7 (compared to a 48.8 forecast and an October 48.5 reading).  Later, Oct. Construction Spending was much higher than expected at +0.4% (versus a +0.2% forecast and a September value of +0.1%).  At the same time, Nov. ISM Mfg. Employment was up at 48.1 (compared to the October 44.4 reading).  Meanwhile, Nov. ISM Mfg. PMI was up at 48.4 (versus a 47.7 forecast and a previous reading of 46.5).  At the same time, Nov. ISM Mfg. Prices were down sharply to 50.3 (compared to a 55.2 forecast and October’s 54.8 number).

In Fed news, on Monday, Atlanta Fed President Bostic said he has an open mind on whether the FOMC should cut rates at the December meeting.  Bostic said, “There is a lot of uncertainty. … I am not going into this meeting with a sense that it (a rate cut) is preordained. We have important data points that are coming in, including information to be released Friday on November job growth.”  However, he went on to indicate that his starting point is leaning toward another cut when he said, “My base case on inflation remains that we are on track to reach the 2% objective…weighing the totality of the data, I do not view the recent bumpiness as a sign that progress toward price stability has completely stalled.” (And if inflation is still falling, his previous statements favor a move to solve the other mandate of full employment.) 

Later, Fed Governor Waller said he was leaning toward another cut in December.  Waller said, “At present I lean toward supporting a cut to the policy rate at our December meeting. But that decision will depend on whether data that we will receive before then surprises to the upside and alters my forecast for the path of inflation.”  Finally, later on, New York Fed President Williams said that the FOMC is likely to cut rates, without giving a timeline.  Williams said, “Monetary policy remains in restrictive territory to support the sustainable return of inflation to our 2 percent goal,” and “I expect it will be appropriate to continue to move to a more neutral policy setting over time.”  Williams went on to say the economy is in “a good place” and he sees inflation continuing to ebb toward 2% and the labor market remaining “strong.”

After the close, ZS reported significant beats on both the revenue and earnings lines.

Overnight, Asian markets were nearly green across the board with the lone exception of Shenzhen (-0.40%).  Japan (+1.91%), South Korea (+1.86%), and Taiwan (+1.28%) paced the broad and strong gains in the region.  In Europe, we see the same picture taking shape with only Portugal (-0.14%) in the red with 13 green bourses at midday.  The CAC (+0.29%), DAX (+0.14%), and FTSE (+0.74%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a flat start to the day.  The DIA implies a -0.02% open, the SPY is implying a +0.02% open, and QQQ implies a -0.05% open at this hour.  At the same time, 10-Year bond yields are back up to 4.213% and Oil (WTI) is up 1.37% to $69.03 per barrel in early trading.

The major economic news scheduled for Tuesday is limited to October JOLTs (10 a.m.) and API Weekly Crude Oil Stock Report (4:30 p.m.).  The major earnings reports scheduled for before the open are limited to BNS, CNM, and DCI.  Then, after the close, MRVL, OKTA, PSTG, and CRM.

In economic news later this week, on Wednesday, we get Nov. ADP Nonfarm Employment Change, Nov. S&P Global Services PMI, Nov. S&P Global Composite PMI, Oct. Factory Orders, Nov. ISM Non-Mfg. Employment, Nov. ISM Non-Mfg. PMI, EIA Crude Oil Inventories, and Fed Beige Book.  We also hear from Fed Chair Powell. Then Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Oct. Imports, Oct. Exports, Oct. Trade Balance, and Fed Balance Sheet.  Finally, on Friday, we get, Nov. Average Hourly Earnings, Nov. Nonfarm Payrolls, Nov. Private Nonfarm Payrolls, Nov. Participation Rate, Nov. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, Michigan 5-Year Inflation Expectations, October Consumer Credit.  We also hear from Fed members Bowman and Daily.

In terms of earnings reports later this week, on Wednesday, we hear from CPB, CHWY, CBRL, DLTR, FL, HRL, RY, THO, AEO, FIVE, GEF, PVH, and SNPS.  Then Thursday, BMO, BF.A, CAL, CM, CSIQ, DG, GMS, KFY, KR, PDCO, SAIC, SIG, TD, COO, DOCU, HPE, LULU, WOOF, ULTA, VEEV, and VSCO report.  Finally, on Friday, we hear from DOOO and GCO.

So far this morning, DCI reported beats on both the revenue and earnings lines.  At the same time, BNS beat on revenue while missing on earnings.

With that background, markets seem basically flat early.  All three major index ETFs opened the premarket about where they closed Monday and have printed indecisive, tiny candles since that point.  It is worth noting that SPY and QQQ sit at all-time highs while DIA is less than half a percent below its own all-time high.  All three are above their T-line (8ema).  So, the short-term trend is now bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, QQQ is the furthest above its T-line, but none of the three are too far extended. The T2122 indicator is now back in the top end of its mid-range. So, either side has room to move, but the Bears may have a little more slack to work with today. In terms of the 10 Big Dogs, six of the 10 are in green numbers at this point of the early morning session. AMD (+1.18%) is leading the way higher while TSLA (-0.74%) is by far the main laggard of the group.  In a post-election norm, TSLA is leading in terms of dollar-volume traded, sitting at 2 times as much traded than NVDA, which itself has traded almost 10 times as much as the next one of the 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

Markets diverged at the start of the day on Tuesday. SPY gapped up 0.23%, DIA gapped down 0.19%, and QQQ gapped up 0.32%. At that point, QQQ chopped to the side along its opening level for the rest of the day. Meanwhile, SPY ground sideways along the open until 10:45 a.m. when it started a long, very slow, melt higher rally that lasted all day.  For its part, after the gap down, DIA followed through to the downside for the first hour.  Then it rallied in a steady fashion the rest of the day, recrossing its gap by 1:30 p.m. and continuing higher.  They all three took a tiny bit of profit the last 10 minutes of the day. This action gave us white-bodied candles on all those three major index ETFs.  SPY printed a gap-up, large-bodied, white candle with tiny wicks at both ends.  DIA printed a white-bodied candle with significant lower wick.  Both of them printed new all-time highs and new all-time high closes.  Meanwhile, QQQ printed a gap-up, white-bodied, Bullish Harami Spinning Top candle. 

On the day, five of the 10 of the sectors were in the green and the other five in the red as Utilities (+1.06%) was well out in front (by 0.44%) leading the way higher. On the other side, Basic Materials (-0.99%) was by far the laggard (by 0.51%).  Meanwhile, SPY gained 0.52%, DIA gained 0.29%, and QQQ gained 0.54%. VXX fell slightly again to close at 43.61 and T2122 dropped back out of its overbought territory into the top of the mid-range to close at 75.97.  At the same time, 10-Year bond yields climbed a bit to 4.295% while Oil (WTI) fell 0.45% to close at $68.63 per barrel. So, Tuesday was a day where SPY and QQQ gapped up, but then diverged with SPY melting higher.  At the same time, DIA gapped down and sold off before reversing to rally more strongly the rest of the day.  This all happened on above-average volume in the DIA and a bit below-average volume in the SPY and QQQ.

There was no major economic news scheduled for Tuesday included October Building Permits, which came in a bit higher than expected at 1.419 million (compared to a forecast of 1.416 million and a September reading of 1.425 million).  Later, November Conference Board Consumer Confidence was down a tick to 111.7 (versus a forecast of 111.8 but still up from the October 109.6 value).  At the same time, October New Home Sales were down sharply to 610k (compared to a 725k forecast and September reading of 738k).  Later, after the close, API Weekly Crude Oil Stocks report showed an unexpected 5.935-million-barrel drawdown (versus an expected +0.250 million barrels and the prior week’s 4.753-million-barrel inventory build).

In Fed news, the November FOMC Meeting Minutes indicated that Fed members see more cuts ahead, but in a more gradual pace.  The minutes said, “If the data comes in about as expected, with inflation continuing to move down sustainably to 2 percent and the economy remaining near maximum employment, then it would likely be appropriate to move gradually toward a more neutral stance of policy over time.”  The continued by saying that progress on inflation continues to hold sway. They indicated some Fed members supported accelerated rate cuts should the labor market or economic growth deteriorate faster than expected. While other members floated the idea of a pause if inflation remains elevated.  In addition, there was some “discussion” on where rates will end up (the so-called neutral rate) that neither stimulates nor drags on economic growth.  That uncertainty “complicated the assessment of the degree of restrictiveness” needed among Fed members. 

After the close, ADSK, CRWD, JWN, NTNX, URBN, and WDAY all reported beats on both the revenue and earnings lines.  Meanwhile, DELL missed on revenue while beating on earnings. On the other side, HPQ beat on revenue while missing on earnings.  However, GES missed on both the top and bottom lines.

Overnight, Asian markets were mixed but leaned toward the green side with big gains in China.  Hong Kon (+2.31%), Shenzhen (+2.25%), and Shanghai (+1.53%) led the gainers while Taiwan (-1.52%) was by far the biggest loser.  In Europe, the bourses are mostly red at midday with just three of 14 exchanges above break-even.  The CAC (-1.08%) is an outlier, while the DAX (-0.49%) and FTSE (+0.05%) are more typical in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed, flatish start to the day.  The DIA implies a +0.07% open, the SPY is implying a -0.09% open, and the QQQ implies a -0.25% open at this hour.  At the same time, 10-Year bonds are down to 4.26% and Oil (WTI) is up 0.48% in early trading.

The major economic news scheduled for Wednesday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. Core Durable Goods Orders, Preliminary Oct. Durable Goods Orders, Preliminary Q3 GDP, Preliminary Q3 GDP Price Index, Preliminary Oct. Goods Trade Balance, Preliminary Oct. Retail Inventories (all at 8:30 p.m.), Chicago PMI (9:45 a.m.), October Core PCE Price Index, October PCE Price Index, October Pending Home Sales, and October Personal Spending (10 a.m.), and Weekly EIA Crude Oil Inventories (10:30 a.m.). There are no major earnings reports scheduled for either before the open or after the close. 

In economic news later this week, on Thursday, markets are closed and there is no planned news due to the Thanksgiving holiday.  Finally, on Friday we get Chicago PMI and markets close early at 1 p.m. for additional holiday time off.

In terms of earnings reports later this week, there are no reports of note Wednesday.  Again, Thursday there are no notable reports scheduled with markets closed.  Finally, on Friday, MNSO reports.

So far this morning, YY missed on revenue while beating on the earnings line.

With that background, I suspect a good portion of traders are already gone for the holiday or are waiting for the 8:30 a.m.  and 10 a.m. data dumps before heading out the door.  Either way, so far in premarket there is broad indecision with all three major index ETFs printing Doji or small-body Spinning Top candles for the early session.  It is worth noting that SPY and DID sit at all-time highs while QQQ is only 1.25% below its own all-time high.  All three are above their T-line (8ema).  So, the short-term trend is now bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, DIA is still getting a bit stretched above its T-line, but the other two are not far from their 8ema. The T2122 indicator is now back in the top end of its mid-range. So, either side has room to move, but the Bears may have a more slack to work with today. In terms of the 10 Big Dogs, six of the 10 are in the red at this point of the early morning session. TSLA (+0.49%) is leading the way higher while NVDA (-1.33%) is by far the main laggard of the group.  In a reversion to pre-election form, NVDA is leading in terms of dollar-volume traded, sitting at almost 3 times as much traded than TSLA, which itself has traded 3 times as much as the next premarket volume leader.  Finally, if you follow Trader Almanac logic, remember it says that the day preceding a holiday (especially effectively a 4-day holiday) is often bullish with traders in great spirits.

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

Monday saw markets gap higher to start the holiday week. SPY gapped up 0.67%, DIA gapped up 0.78%, and QQQ gapped up 0.82%. From there we saw divergence among the three major index ETFs.  SPY and QQQ immediately began to sell off with QQQ recrossing its gap by 12:15 p.m. and SPY doing the same by 12:45 p.m.  That was the low for SPY, which bounced a little and traded sideways the rest of the day after 1:30 p.m. Meanwhile, QQQ continued South before reaching its low at 12:50 p.m. and doing its own bounce back to the prior close level and then trading sideways the rest of the day.  For its part, after the gap higher, DIA traded sideways, then meandered lower to cross back into the top of the gap.  It reached the low at 12:45 p.m. and then rallied back up above the open to trade sideways into the close.  This action gave us, gap-up, indecisive candles in all three major index ETFs.  DIA was the leader, printing a gap-up, white-bodied, Spinning Top that gave us both a new all-time high and new all-time high close.  SPY also gave us a gap-up, Spinning Top, but this one was black-bodied and gave us a new all-time high but not the close.  QQQ was the laggard, printing a gap-up, black-bodied, large-body Spinning Top.

On the day, nine of the 10 of the sectors were in the green again as Consumer Cyclical (+1.48%) was well out in front leading the way higher.  This time, Energy (-1.68%) was by far the laggard (by 1.75%) and the only sector in the red.  Meanwhile, SPY gained 0.34%, DIA gained 0.99%, and QQQ gained 0.16%.  VXX dropped another 4.11% to close at 43.88 and T2122 climbed even higher into the top of its overbought territory to close at 96.48.  At the same time, 10-Year bond yields dropped sharply to 4.275% while Oil (WTI) dropped 3.03% to close at $69.08 per barrel. So, Monday was all about the morning gap.  DIA was able to hold onto the gap gains while the two broader-based index ETFs recrossed their gaps and managed to climb back to stay modestly positive.   This all happened on average volume in all three major index ETFs.

There was no major economic news scheduled for Monday.

In Fed news, on Monday, Reuters reported on a San Francisco Fed economic letter that was penned by the Fed’s Economist Emeritus (and top productivity expert) John Fernald, who is no a professor as INSEAD in France.  (Fernald has long been very cautious about extrapolating short-term productivity gain trends into broader conclusions.)  The new note released Monday, left open the possibility that the recent surge in productivity my not fade and, instead, may be signaling a new breakout in productivity not seen since 1995-2004.  The research note said, “This pandemic boom-and-bust in productivity growth was a predictable cyclical response overlaid on a broad continuation of the underlying slow growth pace.”  However, it continued, “there are some reasons for optimism, including recent official data revisions that show faster productivity growth since the pandemic than had been previously estimated.” However, the four authors stayed cautious, saying, “Much is still uncertain about the productivity effects of emerging technologies like generative artificial intelligence, which will only be revealed over time, as the economy continues to evolve in the aftermath of the pandemic.”

After the close, A, TBBB. WWD, and Z all reported beats on both the revenue and earnings lines.  Meanwhile, CENT and FLNC missed on revenue while beating on earnings.  However, SUPV missed (massively) on both the top and bottom lines.

Overnight, Asian markets were mostly in the red.  Nine of the 12 exchanges were in negative territory and the ones that were in the green did not make substantial gains. Taiwan (-1.17%), Japan (-0.87%), and Shenzhen (-0.84%) paced the losses.  In Europe, with the sole exception of Athens (+0.18%), we see red across the board on Tuesday.  The CAC (-0.22%), DAX (-0.31%), and FTSE (-0.29%) lead the region lower in early afternoon trade. In the US, as of 7:15 a.m., Futures point toward a mixed start for the day.  The DIA implies a -0.12% open, the SPY is implying a +0.23% open, and the QQQ implies a +0.30% open at this hour.  At the same time, 10-Year bond yields are back up a bit to 4.283% and Oil (WTI) is up 1.07% to $69.68 per barrel in early trading.

The major economic news scheduled for Tuesday includes October Building Permits (8 a.m.), November Conference Board Consumer Confidence and October New Home Sales (both at 10 a.m.), November FOMC Meeting Minutes (2 p.m.), and API Weekly Crude Oil Stocks report (4:30 p.m.).  The major earnings reports scheduled for before the open are limited to ANF, ADI, BBY, BURL, DKS, HTHT, SJM, KSS, M, and TITN.  Then, after the close, ADSK, CRWD, DELL, GES, HPQ, YY, JWN, NTNX, URBN, and WDAY report. 

In economic news later this week, on Wednesday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. Core Durable Goods Orders, Preliminary Oct. Durable Goods Orders, Preliminary Q3 GDP, Preliminary Q3 GDP Price Index, Preliminary Oct. Goods Trade Balance, Preliminary Oct. Retail Inventories, October Core PCE Price Index, October PCE Price Index, October Pending Home Sales, October Personal Spending, and Weekly EIA Crude Oil Inventories.  On Thursday, markets are closed for the Thanksgiving holiday.  Finally, on Friday we get Chicago PMI and markets close early at 1 p.m. for additional holiday time off.

In terms of earnings reports later this week, there are no reports of note Wednesday.  Again, Thursday there are no notable reports scheduled.  Finally, on Friday, MNSO reports.

So far this morning, ADI, DKS, SJM, and TITN have all reported beats on both the revenue and earnings lines.  Meanwhile, BURL missed on revenue while beating on earnings.  However, BBY, HTHT, and KSS missed on both the top and bottom lines.

With that background, it looks like the market is of two minds.  Coming from all-time highs, DIA started the premarket even higher only to start working on a black-bodied Spinning Top type candle.  Meanwhile, SPY and QQQ both started the early session lower, but have since put in large-body, small-wick, white candles in the premarket.  All three are above their T-line (8ema). So, the short-term trend is now bullish.  Looking further out, the mid-term and longer-term trends also remain bullish with prices sitting at or near all-time highs.  In terms of extension, DIA is getting a bit stretched above its T-line, but the other two are not far from their 8ema.  However, the T2122 indicator is now back in the top end of overbought territory. So, the Bears may have a more slack to work with today, but there is still room to run higher if the bulls find traction (especially in SPY and QQQ).  In terms of the 10 Big Dogs, all 10 are in the green at this point of the early session morning.  NVDA (+1.01%) is leading the way higher while MSFT (+0.01%) is the laggard at this point.  TSLA  (+0.21%) is leading in terms of dollar-volume traded, sitting at 1.5 times as much traded than NVDA, which itself has traded 6.5 times as much as the next premarket volume leader.

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 closed out the week on a positive note.  SPY opened flat, DIA opened 0.14% higher, and QQQ opened down 0.10%.  From there, SPY and QQQ spend the day meandering sideways in a roller coaster of waves.  SPY spent almost the entire day on the positive side while QQQ wandered back-and-forth across its opening gap.  For its part, DIA rallied sharply the first 20 minutes, but then spent the rest of the day in a slow meander with a slight bullish trend.  This action gave us white-bodied candles in all three major index ETFs.  SPY printed a white candle with tiny wicks on each end.  At the same time, DIA printed a gap-up, larger white-bodied candle with tiny wicks on each end. Finally, QQQ gave us a white-bodied Spinning Top candle that retested its T-line (8ema) and passed the test.  This happened on well-above average volume in DIA as well as well-below average volume in SPY and QQQ.

On the day, nine of the 10 of the sectors were in the green as Industrials (+1.32%) led the way higher for the second day in a row.  This time, Utilities (-0.06%) was the only sector in the red and laggard.  Meanwhile, SPY gained 0.31%, DIA gained 0.95%, and QQQ gained 0.16%.  VXX dropped almost 4% to close at 45.76 and T2122 climbed even higher into the top of its overbought territory to close at 95.24.  At the same time, 10-Year bond yields fell slightly to 4.414% while Oil (WTI) popped another 1.65% to close at $71.24 per barrel.   So, Friday was basically a meander day where all three major index ETFs were bullish, but not decisively in rally mode. 

The major economic news scheduled for Friday included Preliminary November S&P Global Mfg. PMI, which met expectations at 48.4 (in-line with the 48.8 forecast and up just a bit from October’s 48.5 reading).  On the services side, Preliminary November S&P Global Services PMI was higher than expected at 57.0 (versus a 55.2 forecast and October’s 55.0 value).  Combined, this gave us a Preliminary November S&P Global Composite PMI of 55.3 (compared to October’s 54.1 number).  Later, Michigan Consumer Sentiment missed expectations at 71.8 (versus a forecast of 73.7 but up from the October 70.5 reading).  In terms of expectations, the Michigan Consumer Expectations were also lower than predicted at 76.9 (compared to a forecast of 78.5 but, again, up from October’s 74.1 value). Looking forward, the Michigan Consumer 1-Year Inflation Expectations were down a tick to 2.6% (in-line with a 2.6% forecast and down one tick from October’s 2.7% expectation).  Looking further out, the Michigan Consumer 5-Year Inflation Expectations were up and higher than anticipated at 3.2% (compared to a 3.1% forecast and October’s 3.0% reading).

Overnight, Asian markets were mixed, but leaned toward the green side.  India (+1.32%), South Korea (+1.32%), and Japan (+1.30%) led the seven gainers.  On the other side, Hong Kong (-0.41%) and Singapore (-0.39%) were the main losers among the five exchanges in red.  In Europe, the bourses are mostly green at midday with just three of the 14 in the red.  The CAC (+0.02%), DAX (+0.23%), and FTSE (+0.16%) lead the region higher in early afternoon trade.  In the US, as of 6:45 a.m., Futures are pointing toward a gap higher to start the week.  The DIA implies a +0.71% open, the SPY is implying a +0.53% open, and the QQQ implies a +0.59% open at this hour.  At the same time, 10-Year bond yields are down to 4.353% and Oil (WTI) is off by a third of a percent to $71.03 per barrel in early trading.

There is no major economic news scheduled for Monday. The major earnings reports scheduled for before the open are limited to BBWI.  Then, after the close, A, CENT, FLNC, SUPV, TBBB. WWD, and Z report. 

In economic news later this week, on Tuesday, we get November Conference Board Consumer Confidence, October New Home Sales, November FOMC Meeting Minutes, and the API Weekly Crude Oil Stocks report.  Then Wednesday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Oct. Core Durable Goods Orders, Preliminary Oct. Durable Goods Orders, Preliminary Q3 GDP, Preliminary Q3 GDP Price Index, Preliminary Oct. Goods Trade Balance, Preliminary Oct. Retail Inventories, October Core PCE Price Index, October PCE Price Index, October Pending Home Sales, October Personal Spending, and Weekly EIA Crude Oil Inventories.  On Thursday, markets are closed for the Thanksgiving holiday.  Finally, on Friday we get Chicago PMI and markets close early at 1 p.m. for additional holiday time off.

In terms of earnings reports later this week, on Tuesday, we hear from ANF, ADI, BBY, BURL, DKS, HTHT, SJM, KSS, M, TITN, ADSK, CRWD, DELL, GES, HPQ, YY, JWN, NTNX, URBN, and WDAY. There are no reports of note Wednesday.  Again, Thursday there are no notable reports scheduled.  Finally, on Friday, MNSO reports.

So far this morning, BBWI reported beats on both the revenue and earnings lines.

With that background, it looks like the Bulls are in charge early in the premarket.  All three major index ETFs gapped higher and have followed through with small, white-body candles early in that premarket.  It is worth noting that DIA sits at a new all-time high in the early session.  All three are above their T-line (8ema). So, the short-term trend is now bullish.  Looking further out, the mid-term and longer-term trends also remain bullish.  In terms of extension, none of the major index ETFs are stretched from their T-lines, but the T2122 indicator is now back in the top end of overbought territory. So, the Bears may have a little more slack to work with today, but there is still room to run higher if the bulls find traction.  In terms of the 10 Big Dogs, nine of the 10 are in the green at this point of the early session morning.  TSLA (+2.05%) is leading the way higher while INTC (-0.29%) is the only big dog in the red at this point.  TSLA is also leading in terms of dollar-volume traded, sitting at 1.5 times as much traded than NVDA (+0.04%), which itself has traded 4.5 times as much as the next premarket volume leader.

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

Thursday started with a small Bull trap, that once washed out led to a strong gain.  SPY gapped up 0.49%, DIA gapped up 0.34%, and QQQ gapped up 0.58%.  However, all three major index ETFs immediately sold off, recrossing their gaps in less than 10 minutes.  DIA hit its low of the day at 9:40 a.m., while SPY and QQQ hit their low at 10:30 a.m. From there all three rallied to the highs at about 1:35 p.m. before wobbling sideways the rest of the day.  (DIA definitely had a slight bearish trend to its late-day meander to the side.)  This action gave us divergent, but all indecisive candles across the three major index ETFs.  SPY printed a gap-up, long-legged Doji that crossed above, retested from above, and passed the test of its T-line.  QQQ printed a similar candle, but its version was a gap-up, black-bodied long, lower-wick Spinning Top. It also gapped above, retested from above, and passed the test of its T-line.  Finally, the DIA printed a gap-up, large-body, white-body Spinning Top that gapped up to its 8ema, retested that T-line and closed above that average.  This all happened on below-average volume in the SPY, average volume in the QQQ, and very heavy volume in the DIA.

On the day, all 10 of the sectors were in the green as Industrials (+1.40%) and Utilities (+1.38%) led the pack higher. On the other side, Communication Services (+0.51%) and Consumer Cyclicals (+0.52%) were the laggards.  At the same time, SPY gained 0.54%, DIA gained 1.07%, and QQQ gained 0.36%.  VXX fell slightly to close at 47.65 and T2122 jumped up into its overbought territory to close at 88.38.  Meanwhile, 10-Year bond yields rose again to 4.428% while Oil (WTI) popped 2.14% to close at $70.21 per barrel.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in a bit better than expected at 213k (compared to a forecast of 220k and a prior week reading of 219k).  On the ongoing front, Weekly Continuing Jobless Claims were considerably higher than expected at 1,908k (versus a forecast of 1,870k and last week’s value of 1,872k).  At the same time, the Philly Fed Mfg. Index was worse that anticipated at -5.5 (compared to the +7.4 forecast and the October +10.3 number).  On the jobs side, the Philly Fed Mfg. Employment Index was up at 8.6 (versus the October reading of -2.2).  Later, October Existing Home Sales were slightly better than predicted at 3.96 million (compared to a 3.95 million forecast and the Sept. 3.83 million value).  At the same time, the US Leading Economic Indicator Index was down a tick to -0.4% (versus a forecast and previous reading, which were both -0.3%).  Then, after the close, the Fed Balance Sheet showed a reduction of $43 billion for the week to $6.924 trillion.

In Fed news, on Thursday, Chicago Fed President Goolsbee reiterated his support for more rate cuts.  However, he also indicated that he is open to lowing the pace of cuts.  Goolsbee said, “My view is that the long arc over the last year and a half, inflation is way down and on its way to 2 percent. Labor markets have cooled to something close to stable full employment.” He went on to say, “interest rates should be a fair bit lower than where they are today.” However, he continued by saying that “(given uncertainties such as what the Trump Administration ends up doing,) it may make sense to slow the pace of rate cuts as we get close (to the terminal rate).”

After the close, CPRT, GAP, INTU, and NTAP reported beats on both the revenue and earnings lines.  Meanwhile, ROST and UGI both missed on revenue while beating on the earnings line.

Overnight, Asian markets were mostly green with the clear exception of China.  India (+2.39%), New Zealand (+2.17%) and Taiwan (+1.55%) paced the nine gainers.  On the other side, Shenzhen (-3.52%), Shanghai (-3.06%), and Hong Kong (-1.89%) were the only losers in that region.  Meanwhile, in Europe, 12 of the 14 bourses are in the green at midday.  The CAC (+0.1%), DAX (+0.24%), and FTSE (+0.86%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly lower start to the morning.  DIA implies a -0.01% open, the SPY is implying a -0.12% open, and the QQQ implies a -0.24% open at this hour.  At the same time, 10-Year bond yields are down to 4.39% and Oil (WTI) is off just under a percent to $69.45 per barrel in early trading.

The major economic news scheduled for Friday includes Preliminary November S&P Global Mfg. PMI, Preliminary November S&P Global Services PMI, and Preliminary November S&P Global Composite PMI (all at 9:45 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.).  After the close, we hear from Fed Governor Bowman again at 6:15 p.m.  There are no major earnings reports scheduled for either before the open or after the close Friday. 

So far this morning, there are no notable earnings reports before the open.

With that background, it looks like markets are indecisive this morning.  All three major index ETFs opened the premarket slightly lower. At that point, all three continued lower before reversing to run back up toward the start of the early session.  SPY is printing a Doji that has passed a retest of its T-line (8ema) from above.  Meanwhile, DIA is giving us a Dragonfly Doji after not quite retesting the T-line from above.  Finally, the QQQ is showing us a black-bodied Hammer that sits just above its T-line after a retest from above.  So, the short-term trend is now slightly bullish-to-indeterminant with all three major index ETFs sitting very near above their T-line. However, the mid-term and longer-term trends remain bullish.  In terms of extension, none of the major index ETFs are stretched from their T-lines, but the T2122 indicator is now back in center of its overbought range. So, the Bears may have a little more slack to work with today, but there is still room to run higher if the bulls find traction.  In terms of the 10 Big Dogs, seven of the 10 are in the red at this point of the early session morning.  GOOGL (-0.85%) is leading the way lower while TSLA (+0.52%) is holding up best. being punished for last night’s strong earnings report.  NVDA (-0.54%) is the leader in dollar-volume traded this morning, having traded almost 1.5 times as much stock as TSLA, which itself has traded almost 9 times as much as the next premarket volume leader.

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 started the day mostly flat.  SPY opened dead flat, DIA gapped up 0.15%, and QQQ opened 0.05% lower.  From there, all three major index ETFs sold off sharply for the first hour before meandering along a volatile bottom until 2:30 p.m.  At that point, we saw a sharp rally back to flat (or even positive in DIA) by day end.  This action gave us Dragonfly Doji candles in the SPY and QQQ while DIA printed a white-bodied, long-handled Hammer candle.  SPY closed just pennies above its T-line (8ema) while DIA retested and failed its retest from below of its own T-line. (It was not a huge fail, as it came up about 40 cents short of that average.)  This all happened on below-average volume in the SPY and QQQ while DIA delivered average volume.

On the day, eight of the 10 sectors were green as Healthcare (+0.81%) and Energy (+0.77%) were out front leading the rest of the market higher. On the other side, it was Consumer Defensive (-0.19%) and Financial Services (-0.14%) were the laggards that were in the red.  At the same time, SPY gained 0.03%, DIA gained 0.33%, and QQQ lost 0.06%.  VXX climbed 3.56% to close at 48.03 and T2122 climbed again to the center of the mid-range to close at 53.79.  Meanwhile, 10-Year bond yields rose again to 4.416% while Oil (WTI) fell 0.63% to close at $68.95 per barrel. So, Wednesday was a day marked by fears about NVDA earnings and, secondarily, the end of the world in a nuclear flash.  However, either NVDA news leaked or traders same to their senses late and drove the major averages back to flat.

The major economic news scheduled for Wednesday was limited to EIA Weekly Crude Oil Inventories, which came in with a just slightly larger than expected inventory build at +0.545 million barrels (compared to a forecast of +0.400 million barrels and down from the prior week’s +2.089-million-barrel reading).

In Fed news, on Wednesday, Fed Governor Bowman (the most hawkish FOMC member) said she backs a cautious approach to further rate cuts.  Bowman said, “I would prefer to proceed cautiously in bringing the policy rate down to better assess how far we are from the end point, while recognizing that we have not yet achieved our inflation goal and closely watching the evolution of the labor market.”  She continued, saying, “My estimate of the neutral policy rate is much higher than it was before the pandemic, and therefore we may be closer to a neutral policy stance than we currently think.” Unlike Chairman Powell (and most other Fed members), Bowman said she still does not see the risks to the dual mandates as balanced.  She said, “I see greater risks to the price stability side of our mandate, especially while the labor market remains near full employment, but it is also possible that we could see a deterioration in labor market conditions.” Later, Boston Fed President Collins reiterated that she sees more FOMC rate cuts ahead. Collins told an audience Wednesday that, “I expect additional adjustments will likely be appropriate over time, to move the policy rate gradually from its current restrictive stance back into a more neutral range.” She went on to say that she thought the economy was “in a good place” with inflation continuing to fall.  Collins said, “I see little scope for wages to disrupt the ongoing disinflation progress.”  At the same time, Fed Governor Cook indicated she was much more in Collins’ camp (as compared to Bowman’s camp).  Cook told an audience, “The totality of the data suggests that a disinflationary trajectory is still in place and that the labor market is gradually cooling.” She went on, “Going forward, I still see the direction of the appropriate policy rate path to be downward.”

After the close, BBAR, KLC, NVDA, PANW, and SNOW all reported beats on both the revenue and earnings lines.  (NVDA had a 10% revenue beat, which amounted to nearly doubling sales from one year prior, and a 9.5% earnings beat.  They also said they expect to beat on revenue in Q4 as well. HOWEVER, the Q4 sales forecast will not beat estimates by as much as Q3 beat them. So, NVDA stock is trading lower.)  Meanwhile, MMS beat on revenue while missing on earnings.  On the other side, CPA missed on revenue while beating on earnings.  However, SQM missed on both the top and bottom lines.

Overnight, Asian markets were nearly all red with the lone exception of Shanghai (+0.07%).  Thailand (-1.51%) was the biggest loser, followed by Japan (-0.85%), and India (-0.72%).  In Europe, the picture leans toward the green side with eight of the 14 bourses above break-even at midday.  The CAC (-0.13%), DAX (+0.37%), and FTSE (+0.39%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly green start to the day ahead of data.  The DIA implies a +0.33% open, the SPY is implying a +0.24% start, and the QQQ implies a +0.17% open at this hour.  At the same time, 10-Year bond yields are down to 4.398% and Oil (WTI) has popped +2.07% to $70.17 per barrel in early trading.

The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, and Philly Fed Mfg. Employment (all at 8:30 a.m.), October Existing Home Sales and US Leading Economic Indicator Index (both at 10 a.m.), and the Fed Balance Sheet (4:30 p.m.). Then, after the close (4:30 p.m.) we also hear from Fed Vice-Chair Barr.  The major earnings reports scheduled for before the open include ATKR, BIDU, BJ, ROAD, DE, IQ, BEKE, PDD, VSTS, and WMG.  Then, after the close, CPRT, GAP, INTU, NTAP, ROST, and UGI report. 

In economic news later this week, on Friday, Preliminary November S&P Global Mfg. PMI, Preliminary November S&P Global Services PMI, Preliminary November S&P Global Composite PMI, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, Michigan Consumer 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Friday, there are no major reports scheduled.

So far this morning, DE reported beats on both the revenue and earnings lines.  At the same time, BJ, IQ, and BEKE missed on revenue while beating on earnings.  On the other side, ATKR and BIDU beat on revenue while missing on earnings.  However, PDD missed on both the top; and bottom lines.

With that background, it looks like the Bulls have control at this point of the morning.  All three major index ETFs gapped down modestly to start the premarket and followed through at least a little (especially in the QQQ).  However, then the Bulls stepped in and drove price back up, creating white-bodied candles that are back above their T-lines (8ema).  Although, to be fair, QQQ is the laggard and barely above its T-line. So, the short-term trend is now bullish-to-indeterminant. Still, the mid-term and longer-term trends remain bullish.  In terms of extension, none of the major index ETFs are stretched from their T-lines and the T2122 indicator is now back in center of its mid-range.  So, there is plenty of room to run for either the Bulls or Bears, if either can get some momentum going. In terms of the 10 Big Dogs, eight of the 10 are in the green at this point of the early session morning.  META (+0.49%) is leading the way for the gainers while NVDA (-1.02%) is being punished for last night’s strong earnings report.  Again, in a reversion to the way things were prior to the election (and probably due to earnings), NVDA is the leader in dollar-volume traded this morning, having traded almost 4 times as much stock as TSLA (+0.03%), which itself has traded almost 10 times as much as the next premarket volume leader.

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 brought us a gap-down (on Putin nuke threat) bullish action day. SPY gapped down 0.58%, DIA gapped 0.80% lower, and gapped down 0.53%.  From there, DIA made a small detour lower, but then followed the SPY and QQQ in a consistent rally by all three major index ETFs until 2 p.m.  Then they all three sold off for 40 minutes before drifting modestly higher the rest of the day.  This action gave us white candles in the SPY, DIA, and QQQ.  SPY gave us a large, gap-down, white-bodied outside day candle that retested its T-line (8ema) from below…and closed right on the average (to the penny).  Meanwhile, DIA printed more of a gap-down, white-bodied fat Spinning Top.  Finally, QQQ gave us a gap-down, large, white-bodied candle with a small upper wick. QQQ came close, but did not quite retest its T-line from below. This all happened on below-average volume in all three major index ETFs. (Well below-average in QQQ.)

On the day, seven of the 10 sectors were green as Technology (+1.11%) and Utilities (+0.83%) were way out front leading the rest of the market higher. On the other side, Communications Services (-0.53%) was by far the worst-performing sector.  At the same time, SPY gained 0.37%, DIA lost 0.31%, and QQQ gained 0.69%.  VXX climbed 3.32% to close at 46.38 and T2122 climbed slightly, but remains in the bottom half of its mid-range to close at 46.38.  Meanwhile, 10-Year bond yields fell to 4.392% while Oil (WTI) gained 0.61% to close at $69.58 per barrel.  So, Tuesday was a day marked by Putin’s bellowing that led the West to knee-jerk into fear of nuclear war.  However, almost as soon as the market opened, traders regained their senses to realize that like everything in life, it’s not as bad a feared (or as good as hoped).  So, we rallied off the lows in a steady pace until some mid-afternoon profit-taking.

The major economic news scheduled for Tuesday was limited, but included Preliminary October Building Permits, which came in a bit lower than expected at 1.416 million (compared to a forecast of 1.440 million and a September reading of 1.425 million). At the same time, October Housing Starts were also a little light at 1.311 million (versus a forecast of 1.340 million and the September 1.353 million value).  Then, after the close, the API Weekly Crude Oil Stocks report showed a larger inventory build than predicted at +4.753 million barrels (compared to a forecasted 0.800-million-barrel build and the prior week’s 0.777-million-barrel drawdown).

In Fed news, on Tuesday, Kansas City Fed President Schmid said, “The decision to lower rates is an acknowledgement of the … growing confidence that … inflation is on a path to reach the Fed’s 2% objective.  A confidence based in part on signs that both labor and product markets have come into better balance in recent months.”  Schmid continued, “(It) remains to be seen how much further interest rates will decline or where they might eventually settle.”  He went on to warn against worrying about inflation from too much government spending, saying, “Large fiscal deficits will not be inflationary because the Fed will do its job. … However, that could mean persistently higher interest rates.” (A back-handed warning about too much spending and cutting of taxes.)

After the close, KEYS, LZB, QFIN, and SNEX reported beats on both the revenue and earnings lines.  At the same time, ZTO missed (massively) on revenue while beating on earnings.

Overnight, Asian markets were mixed again.  Shenzhen (+0.78%) and Shanghai (+0.66%) were the biggest gainers while Taiwan (-0.70%) was by far the biggest loser on the day.  In Europe, with two minor exceptions, we see green across the board at midday.  The CAC (+0.13%), DAX (+0.25%), and FTSE (-0.07%) lead the region higher on volume in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly green start to the day.  The DIA implies a +0.23% open, the SPY is implying a +0.18% open, and the QQQ implies a +0.24% open at this hour.  At the same time, 10-Year bond yields are back up to 4.43% and Oil (WTI) is up 0.65% to $69.84 per barrel in early trading.

The major economic news scheduled for Wednesday is limited to EIA Weekly Crude Oil Inventories (10:30 a.m.).  However, we also hear from Fed Governor Bowman at 12:15 p.m.  The major earnings reports scheduled for before the open include RERE, BERY, DY, NIO, TGT, TJX, WSM, YSG, and ZIM.  Then, after the close, BBAR, SQM, CPA, MMS, NVDA, PANW, and SNOW report. 

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Philly Fed Mfg. Index, Philly Fed Mfg. Employment, October Existing Home Sales, US Leading Economic Index, and the Fed Balance Sheet.  Finally, on Friday, Preliminary November S&P Global Mfg. PMI, Preliminary November S&P Global Services PMI, Preliminary November S&P Global Composite PMI, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan Consumer 1-Year Inflation Expectations, Michigan Consumer 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, we hear from ATKR, BIDU, BJ, ROAD, DE, IQ, BEKE, PDD, VSTS, WMG, CPRT, GAP, INTU, NTAP, ROST, and UGI.  Finally, on Friday, there are no major reports scheduled.

So far this morning, RERE, DY, TJX, and ZIM all reported beats on both the revenue and earnings lines.  However, NIO and TGT missed on both the top and bottom lines.

With that background, it looks like the market is indecisively positive so far this morning in the premarket.  All three major index ETFs made a small gap higher to start the early session, but all three have printed Doji-like candles since that start.  SPY and QQQ are above their T-line (by virtue of the gap and only barely) while DIA remains below.  So, the short-term trend is indeterminant-to-bearish. Still, the mid-term and longer-term trends remain bullish.  In terms of extension, none of the major index ETFs are stretched from their T-lines and the T2122 indicator is now back in center of its mid-range.  So, there is plenty of room to run for either the Bulls or Bears, if either can get some momentum. In terms of the 10 Big Dogs, exactly half are in the green and the other half in the red so far this morning.  NFLX (+0.69%) is leading the way for the gainers while AMZN (-0.31%) is the worst laggard.  In a reversion to the way things were prior to the election, NVDA (+0.44%) is the leader in dollar-volume traded this morning, having traded about 1.5 times as much stock as TSLA (-0.18%).

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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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.

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