Wednesday saw the market open flattish and meander back and for the around the gap.  SPY opened 0.08% higher, DIA opened 0.12% higher, and QQQ opened 0.09% lower.  As mentioned, after that open, all three major index ETFs meandered back and forth below and above that initial “gap” all day. This action gave us indecisive, Spinning Top or Doji-like candles in all three, which all also remain above their T-line (8ema). This all happened on below-average volume in all three major index ETFs.

On the day, all 10 sectors were red with Basic Materials -1.79%) and Healthcare (-1.59%) out in front leading the market lower.  On the other side, Technology (-0.03%) and Consumer Defensive (-0.28%) held up much better than the other sectors. At the same time, SPY lost 0.33%, DIA lost 0.82%, and QQQ lost 0.18%.  VXX fell slightly to close at 44.52 and T2122 dropped all the way down into the lower half of its mid-range to close at 40.64.  Meanwhile, 10-Year bond yields spiked again to 4.426% while Oil (WTI) was just on the red side of flat to close at $68.03 per barrel.  So, Tuesday gave us a morning selloff followed by a more modest bounce and then a drift lower the last hour of the day.  For the first time in five days, none of the major index ETFs printed a new all-time high.  With that said, we still look a little toppy with all three major ETFs well above their T-line (8ema).

The major economic news scheduled for Wednesday included October Core CPI (Month-on-Month), which came in exactly as expected at +0.3% (compared to a forecast and September reading of +0.3%).  On an annualized basis, October Core CPI (Year-on-Year) also came in just as expected at +3.3% (versus a forecast and September value of +3.3%).  At the same time, the headline October CPI (month-on-month) was also as anticipated at +0.2% (compared to a forecast and September reading of +0.2%).  On an annualized basis, October CPI (Year-on-Year) was +2.6% (versus a forecast of +2.6% and the September reading of +2.4%).  Later, the October Federal Budget Balance showed a significantly higher than expected deficit of $257.0 billion (compared to the $226.4 billion forecast and far higher than the September $64.0 billion shortfall).  Then, after the close, the API Weekly Crude Oil Stocks report showed a unexpected drawdown of 0.777 million barrels (versus a predicted 1-million-barrel increase and the previous week’s 3.132-million-barrel increase).

In Fed news, Minneapolis Fed President Kashkari told Bloomberg, “I’ve got confidence about that (inflation heading down toward 2%), but we need to wait.”  He continued, “We’ve got another month or six weeks of data to analyze before we make any (more rate cut) decisions.” Later, St. Louis Fed President Musalem told a Memphis Economic conference that the Fed is in the “last mile” of the inflation fight and the FOMC can now afford to be deliberate.  Musalem said, “In my baseline scenario, based on current information, I expect inflation to converge toward 2% over the medium term … but recent information suggests to me that the risk of inflation ceasing to converge toward 2%, or moving higher, has risen, while the risk of an unwelcome deterioration in the labor market has remained unchanged or possibly fallen.” 

Meanwhile, Kansas City Fed President Schmid expressed growing confidence that inflation is headed back to 2%.  Schmid said his confidence is “based in part on signs that both labor and product markets have come into better balance in recent months.”  He continued, “While now is the time to begin dialing back the restrictiveness of monetary policy, it remains to be seen how much further interest rates will decline or where they might eventually settle.”  Speaking about the deficit, Schmid said, “As an optimist, my hope is that productivity growth can outrun both demographics and debt … But as a central banker, I will not let my enthusiasm get ahead of the data or my commitment to the Fed’s dual mandate of price stability and full employment.”  (In other words, he basically ducked the question.) At the same time, Dallas Fed President Logan said, “I anticipate the FOMC will most likely need more rate cuts to finish the journey” (meaning bringing inflation down to 2%). 

After the close, BZH, CSCO, HI, SARO, and TTEK reported beats on both the revenue and earnings lines. Meanwhile, AGRO and NU missed on revenue while beating on the earnings line.  On the other side, BV, GPCR, and HP beat on revenue while missing on earnings.

Overnight, Asian markets were mixed, but leaned toward the red with four exchanges above break-even and eight below-water.  Shenzhen (-2.83%) Hong Kong (-1.96%), and Shanghai (-1.73%) were by far the biggest movers. In Europe, with the exception of Athens (-0.3%) we see green across the board at midday.  The CAC (+1.08%), DAX (+1.32%) and FTSE (+0.40%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly green start to the morning.  DIA implies a +0.25% open, the SPY is implying a +0.13% open, and QQQ implies a +0.07% open at this hour.  At the same time, 10-Year bond yields are up to 4.443% and Oil (WTI) is up 0.70% to $68.91 per barrel in early trading.

There is major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, October Core PPI, and October PPI (all at 8:30 a.m.), EIA Weekly Crude Oil Inventories (11 a.m.), and Fed’s Balance Sheet (4:30 p.m.).  We also hear from Fed Chair Powell (3 p.m.) and Fed member Williams (4:15 p.m.). The major earnings reports scheduled for before the open include AAP, AZUL, BILI, EFXT, JD, NTES, NICE, NOMD, SBH, TLN, DIS, and ZK.  Then, after the close, AMAT, GLOB, and POST report. 

In economic news later this week, on Friday, October Core Retail Sales, October Retail Sales, October Export Price Index, October Import Price Index, Ny Empire State Mfg. Index, October Industrial Production, September Business Inventories, September Retail Inventories are reported.

In terms of earnings reports later this week, on Friday BABA and SPB report.

So far this morning, BN, EXFT, JD, NTES, NICE, SIEGY, and have all reported beats on both the revenue and earnings lines.  Meanwhile, NOMD, SBH, DIS, and ZK all missed on revenue while beating on earnings. On the other side, BILI beat on the revenue line while missing on earnings.  However, AAP missed on both the top and bottom lines.

With that background, markets seem tepid to modestly bullish and perhaps trying to put in a bottom to their three-day pullback.  All three major index ETFs opened the premarket slightly higher.  Since that point they have put in small candles with SPY and QQQ printing small, Doji-like candles and DIA giving us a small, white, Marubozu candle.  All three remain above their T-line (8ema).  So, the short, mid-term, and long-term trends remain bullish. In terms of over extension, none of the SPY, DIA, or QQQ are stretched above their T-lines and the T2122 indicator is now back in the lower half of its mid-range.  So, there is room to run for either the Bulls or Bears, if either can get some momentum. In terms of the 10 Big Dogs, seven of the 10 are in the green this morning.  AMD (+0.99%) is the biggest price mover (on overnight news of a 4% global layoff).  Meanwhile, TSLA (-0.47% on $280 million traded) is the leader in dollar-volume traded. (Again, this is the post-Trump win norm, but NVDA had been in that leader spot for 18 months prior to the election.) 

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 opened flat on Tuesday.  DIA was the only one of the major index ETFs who’s open (+0.14%) was even worth noting.  After that open, DIA ground sideways for 15 minutes before selling off for three hours, bouncing modestly for an hour and then selling modestly into the close.  For its part, SPY traded sideways for 30 minutes, then followed DIA south, bouncing more strongly at 1 p.m. and then selling off modestly again at 2:45 p.m.  Meanwhile, QQQ chopped sideways for an hour, sold off more modestly than its peer index ETFs until 1 p.m., rallying almost back to flat by 2:45 p.m. and then drifting lower.  This action gave us black-bodied, indecisive candles in the SPY and QQQ (Spinning Top type).  For its part, DIS printed a big, black, Bearish Engulfing candle.  This happened on average volume in DIA as well as below-average volume in SPY and QQQ.

On the day, all 10 sectors were red with Basic Materials -1.79%) and Healthcare (-1.59%) out in front leading the market lower.  On the other side, Technology (-0.03%) and Consumer Defensive (-0.28%) held up much better than the other sectors. At the same time, SPY lost 0.33%, DIA lost 0.82%, and QQQ lost 0.18%.  VXX fell slightly to close at 44.52 and T2122 dropped all the way down into the lower half of its mid-range to close at 40.64.  Meanwhile, 10-Year bond yields spiked again to 4.426% while Oil (WTI) was just on the red side of flat to close at $68.03 per barrel.  So, Tuesday gave us a morning selloff followed by a more modest bounce and then a drift lower the last hour of the day.  For the first time in five days, none of the major index ETFs printed a new all-time high.  With that said, we still look a little toppy with all three major ETFs well above their T-line (8ema).

The major economic news scheduled for Tuesday was limited to NY Fed 1-Year Consumer Inflation Expectations, which fell a tick to 2.9% (down from September’s 3.0% reading).

In Fed news, Richmond Fed President Barkin indicated he feels the FOMC is in a good position. Barkin said, “A strong but choosier consumer, coupled with a more productive and better valued workforce has landed the economy in a good place.”  He continued, “The Fed is in position to respond appropriately regardless of how the economy evolves.”  Later, Fed Governor Waller urged the private sector to embrace payment system innovations like stablecoins, saying “(the FedNow real-time payment system) can bolster private sector efforts to link financial institutions in a decentralized and diverse banking system.” In talking about “synthetic dollars,” Waller said, “These assets could have a lot of potential benefits and eliminate inefficiencies in the financial system.”  Even later, Minneapolis Fed President Kashkari said he thinks the FOMC monetary policy is “In my judgment we are still at a modestly contractionary stance, but ultimately the economy will guide us, in terms of how far we are needing to go in cutting interest rates.”

After the close, CAE, CART, FIHL, FLUT, NATL, RKT, and SWKS all reported beats on both the revenue and earnings lines.  Meanwhile, DOX and OXY missed on revenue while beating on earnings. On the other side, LNW and SPOT beat on revenue but missed on earnings. However, PLUS and NGL missed on both the top and bottom line.

Overnight, Asian markets were mixed, but leaned toward the red side again.  Six of the 11 exchanges were in the red as South Korea (-2.64%) and Japan (-1.66%) led the way lower.  In Europe, we see an even weaker picture with just two of 14 bourses in the green at midday (although on much smaller moves than Asia).  The CAC (-0.16%), DAX (-0.06%), and FTSE (-0.14%) lead the region lower in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a modestly lower start to the day ahead of CPI data.  The DIA implies a -0.30% open, the SPY is implying a -0.23% open, and the QQQ implies a -0.26% open at this hour.  At the same time, 10-year bond yields are back down a bit to 4.416% and Oil (WTI) is up half a percent to $68.49 per barrel in early trading.

There is major economic news scheduled for Wednesday includes October Core CPI and October CPI (both at 8:30 a.m.), EIA Short-Term Energy Outlook (noon), October Federal Budget Balance (2 p.m.), and API Weekly Crude Oil Stocks (4:30 p.m.).  We also hear from Fed members Kashkari (8:30 a.m.) and Williams (9:30 a.m.). The major earnings reports scheduled for before the open include ARCO, BKKT, DOLE, GFF, and KMDA.  Then, after the close, AGRO, BZH, BRFS, BV, CSCO, DADA, EC, HP, HI, NU, SARO, and TTEK report. 

In economic news later this week, on Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, October Core PPI, October PPI, EIA Weekly Crude Oil Inventories, and Fed’s Balance Sheet.  We also heat from Fed Chair Powell and Fed member Williams.  Finally, on Friday, October Core Retail Sales, October Retail Sales, October Export Price Index, October Import Price Index, Ny Empire State Mfg. Index, October Industrial Production, September Business Inventories, September Retail Inventories are reported.

In terms of earnings reports later this week, on Thursday, we hear from AAP, AZUL, BILI, EFXT, JD, NTES, NICE, NOMD, SBH, TLN, DIS, ZK, AMAT, GLOB, and POST. Finally, on Friday BABA and SPB report.

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

With that background markets seem to be continuing Monday’s modest retreat.  All three of the major index ETFs opened the premarket lower and have printed small black candles since then. QQQ has the largest of the black bodies in the early session.  (Again, remember that this is before CPI data.)  However, all three also remain above their T-line (8ema).  So, the short, mid-term, and long-term trend remain bullish. In terms of over extension, the premarket action has brough SPY, DIA, and QQQ back within a normal distance above their T-lines and the T2122 indicator is now back in the lower half of its mid-range.  So, there is room to run for either the Bulls or Bears, if either can get some momentum.  (This small pullback is just what the doctor ordered for the health of a rally. With that said, we have to remember that every Bearish trend starts with a pullback.)  In terms of the 10 Big Dogs, six of the 10 are in the red this morning.  By far the biggest mover, both in terms of price change and dollar-volume traded is TSLA (+1.86% on $1.0 billion traded) which is a percent greater move than the next ticker (either direction).  It is also almost four times the dollar-volume traded as NVDA (+0.25% on $261 million traded). This continued the massive change in these factors since the Trump win.  (You will have to decided for yourself if this signals an end to AI exuberance or is just a “Trump will pay Musk back” anomaly.)

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 the market open higher.  SPY gaps up 0.28%, DIA gapped up 0.40%, and QQQ gapped up 0.24%.  From there, SPY meandered sideways in the gap the rest of the day. Meanwhile, after the open, DIA continued to rally for 30 minutes before trading sideways with a slight bearish trend and ending the day about half way back to its opening level. As for QQQ, after the open gap up, it immediately sold off for 30 minutes recrossing the opening gap in the first 15 minutes before meandering sideways below Friday’s close the rest of the day.  This action gave us, gap-up black-bodied Hanging Man candles in both the SPY and QQQ.  (Both printed new all-time highs and SPY did manage to print a new all-time high close.)  At the same time, DIA gave us a gap-up, Shooting Star or Inverted Hammer type of candle that printed another all-time high and all-time high close.  This happened on above-average volume in DIA as well as below-average volume in SPY and QQQ.

On the day, eight of the 10 sectors were green with Financial Services (+1.72%) way out in front leading the gainers higher.  On the other side, Basic Materials (-0.95%) was again by far the biggest loser. At the same time, SPY gained 0.10%, DIA gained 0.66%, and QQQ lost 0.06%.  VXX fell slightly to close at 44.65 and T2122 rose back into the bottom of its overbought territory, closing at 83.16.  Meanwhile, 10-Year bond yields rose slightly to 4.306% while Oil (WTI) dropped another 3.13% to close at $68.18 per barrel. So, Monday saw a divergent, if mostly sideways day among the three major index ETFs.  It certainly felt a little toppy in nature.

There was no major economic news scheduled for Monday.  

After the close, GRAB reported beats on both the revenue and earnings lines.  At the same time, IAC beat on revenue while missing (massively) on earnings.  On the other side, LYV missed on revenue while beating on earnings.

Overnight, Asian markets were red across the board.  Hong Kong (-2.84%), Taiwan (-2.33%), and Shanghai (-1.39%) paced the losses.  In Europe, we see the same picture taking shape with region-wide losses at midday.  The CAC (-1.31%), DAX (-0.93%), and FTSE (-0.98%) are leading the region lower in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a modestly red start to the day.  DIA implies a -0.10% open, the SPY is implying a -0.11% open, and QQQ implies a -0.07% open at this hour.  At the same time, 10-Year bond yields are up to 4.361% and Oil (WTI) is up a quarter of a percent to $68.21 per barrel in early trading.

There is major economic news scheduled for Tuesday is limited to NY Fed 1-Year Consumer Inflation Expectations (11 a.m.).  We also hear from Fed members Waller (10 a.m.), Kashkari (2 p.m.), and Harker (5 p.m.).  Major earnings reports scheduled for before the open include ALIT, AZN, SID, SATS, HTZ, HD, IGT, MOS, ONON, PTVE, SE, SHOP, SGRY, TME, THS, and TSN.  Then, after the close, AE, DOX, AHR, ARMN, CAE, PLUS, FIHL, FLUT, ICUI, CART, LNW, NATL, NGL, OXY, RXT, RKT, SWKS, SPOT, STNE, SU, and MODG report.

In economic news later this week, on Wednesday, we get October Core CPI, October CPI, EIS Short-Term Energy Outlook, October Federal Budget Balance, and API Weekly Crude Oil Stocks. We also hear from Fed Member Williams.  On Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, October Core PPI, October PPI, EIA Weekly Crude Oil Inventories, and Fed’s Balance Sheet.  We also heat from Fed Chair Powell and Fed member Williams.  Finally, on Friday, October Core Retail Sales, October Retail Sales, October Export Price Index, October Import Price Index, Ny Empire State Mfg. Index, October Industrial Production, September Business Inventories, September Retail Inventories are reported.

In terms of earnings reports later this week, on Wednesday, ARCO, BKKT, DOLE, GFF, KMDA, AGRO, BZH, BRFS, BV, CSCO, DADA, EC, HP, HI, NU, SARO, and TTEK report.  On Thursday, we hear from AAP, AZUL, BILI, EFXT, JD, NTES, NICE, NOMD, SBH, TLN, DIS, ZK, AMAT, GLOB, and POST. Finally, on Friday BABA and SPB report.

So far this morning, AZN, HD, and SLVM reported beats on both the revenue and earnings lines.  Meanwhile, THS missed on revenue while beating on earnings. On the other side, ONON, SE, and TME beat on revenue while missing on earnings. However, IGT and PTVE missed on both the top and bottom lines.

With that background markets seem tepid at these heights.  All three major index ETFs opened the premarket modestly lower and have given us indecisive Doji-like candles since that start.  However, the short, mid-term, and long-term trend remain very bullish. In terms of overextension, all three are stretched above their T-line (8ema) and the T2122 indicator is now in (the lower end of) its overbought territory.  So, while there may be a bit more room to run, the market is in need of a pause or pullback for the health of the rally.  With that said, we have to remember that markets can stay over-baked longer that any of us can remain solvent betting on a reversal.  In terms of the 10 Big Dogs, seven of the 10 are in the red this morning.  INTC (-1.44%) leads the losses while NVDA (+0.41%) paces the gains.  Once again, TSLA (-1.08%) is far-and-away the dollar-volume leader, having traded a very heavy $3.4 billion so far this morning…nine times as much as NVDA, which itself has traded 10 times as much as the third-place stock.  (This is definitely a Trump win phenomenon.)

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gave us a mixed start to the day Friday.  SPY opened 0.09% higher, DIA gapped up 0.23%, and QQQ opened 0.08% lower.  We also saw a divergence from that point, at least early.  SPY immediately began to rally and chased new highs right up to 2:45 p.m.  From there, SPY saw profit-taking all the way into the close. At the same time, after the open, DIA sold for 10 minutes off from the open before joining SPY in a rally until 11:30 a.m.  It then chopped sideways until 2 p.m. before rallying again to the highs at 2:45p.m.  At that point, DIA also took profits into the close. For its part, QQQ sold off a quarter percent after the open, chopping around until 11 a.m. when it followed the larger-cap index ETFs in a rally that lasted until 1:45 p.m.  Then QQQ ground sideways for an hour only to selloff back to Thursday’s close and grind sideways just above that the rest of the day.

This action gave us, white-bodied candles in all three major index ETFs.  The DIA gave us a gap-up Spinning Top candle that registered as a new all-time high and a new all-time high close. SPY printed a gap-up, white-bodied candle with significant upper wick. It came within 36 cents of the $600 level while delivering a new all-time high and all-time high close.  Meanwhile, QQQ gave us a gap-down, white-bodied Spinning Top that also printed a new all-time high and all-time high close. For the week, QQQ gained 5.48%, SPY gained 4.76%, and DIA gained 4.69%. 

On the day, seven of the 10 sectors were green with Utilities (+1.21%) way out in front leading the gainers higher.  On the other side, Basic Materials (-1.10%) lagging way, way behind all other sectors (by more than 1%). At the same time, SPY gained 0.43%, DIA gained 0.62%, and QQQ gained 0.12%.  VXX dropped another 0.71% to close at 44.77 and T2122 fell back to just outside of its overbought territory, closing at 77.27.  Meanwhile, 10-Year bond yields fell to a still high 4.302% while Oil (WTI) dropped 2.63% to close at $70.46 per barrel.  So, Friday saw more of the Bulls being in control as the election day and post-election rally continued. 

The major economic news scheduled for Friday included Preliminary Michigan Nov. Consumer Sentiment, which came in up to 73.0 (compared to a forecast of 71.0 and a October reading of 70.5). At the same time, Preliminary Michigan November Consumer Expectations were also up to 78.5 (versus a 74.1 October value).  Meanwhile, the Preliminary Michigan November 1-Year Inflation Expectations fell a tick to 2.6% (compared to a forecast and October reading of 2.7%).  Finally, Preliminary Michigan November 5-Year Inflation Expectations were up a tick to 3.1% (versus a forecast and October value of 3.0%).

After the close, PBR reported a beat on both the revenue and earnings lines.

In stock news, on Friday, PNC announced plans to expand by adding 100 new bank branches with an investment of $500 million. Later, BA announced it plans to repay the employees it furloughed during the recent strike for the wages they lost.  However, BA still plans to proceed with the 10% cut in its global workforce (17,000 jobs worldwide). At the same time, Reuters reported that STLA and its Chinese partner Leapmotor have scrapped plans to build a second electric vehicle model at the STLA plant in Poland. Instead, the joint venture is considering making that second model a STLA plant in Germany.  Later, Bloomberg reported that BA is considering a sale of its Jeppesen navigation business for $6 billion.  Reportedly, potential suitors include private equity firms, which have expressed interest in that unit.  At the same time, Reuters reported exclusively that BA and SPR are very close to reaching a funding agreement that would give SPR a lifeline of cash.  (The deal will reportedly be announced as soon as this weekend. The exact details on amounts were not disclosed.) 

Elsewhere, TSLA closed above the $1 trillion market cap level for the first time.  This comes after a massive 29% gain for the week on speculation the Trump administration will pay back CEO Musk for hi support.  After the close, BNKG announced it expects to cut jobs as part of a broader cost-cutting program.  (No specifics were announced.)  At the same time, ENPH said it would be cutting about 500 employees and contractors (about 17% of the workforce). Later, BROS CEO Barone told CNBC that it plans to open 160 new coffee shops in 2025. (BROS currently has 950 locations.) Meanwhile, CRM announced it needs to hire more than 1,000 workers to help it sell its generative AI agent product. 

In stock legal and governmental news, on Friday, China approved a $1.4 trillion plan to bolster its economy by selling bonds and allowing local governments to refinance their massive, “hidden” (off books) debt loads.  The theory is that this will free up resources for the local governments to spend elsewhere, thus stimulating the economy.  At the same time, a US District Judge in CA ruled that META CEO Zuckerberg is not personally liable in the 25 lawsuits alleging that his company purposefully addicted children to social media.  However, the cases against META itself (brought both by many States Attorney General and the families of alleged victims) were allowed to proceed.  Later, TM “announced” that CA-led (but now in place in 12 states and the District of Columbia) electrical vehicle mandates that begin being phased in next year are “impossible to meet.”  TM went on to say, if the mandates are not changed, US customers will see fewer car choices in many states. 

In stock legal and governmental news, on Thursday, the NHTSA announced that VLKAF (Volkswagen) is recalling 114k vehicles in the US over airbag concerns. Later, TPR announced it has paused integration of CPRI while it appeals a US court decision to clock the $8.5 billion acquisition. At the same time, a US federal appeals court ruled that WBD’s CNN unit must face a now-revived defamation lawsuit from “Project Veritas” which CNN had reported was responsible for promoting disinformation and doxing.  Later, the CA Public Utilities Commission increased reporting requirements on autonomous vehicle “incidents” (now at a trip level) for collisions, traffic citations, and stoppage events (when the self-driven vehicles get stuck).  GM, GOOGL, and TSLA are the companies immediately impacted.

Meanwhile, AAL lost its appeal of the US Justice Dept. decision to block the airline’s partnership with JBLU.  The US  1^st District Court of Appeals three judge panel ruled unanimously that the lower court judge’s decision was correct in siding with the Justice Dept. and FTC.  (However, this may be a non-event as the Trump administration is widely expected to be more corporate-friendly, including in terms of mergers and acquisitions.  So, the partnership could be floated again after January.)

In miscellaneous news, on Friday, the New York Times reported sources tell it the new Trump administration is preparing to withdraw from the Paris climate agreement and also shrink the size of some national parks and monuments to open up land for the oil industry to drill.  (The US is already the world’s largest oil producer, but one campaign mantra of Republicans was “drill baby drill.”)  In other oil news, the Dept. of Energy announced Friday that it had purchased its last batch of oil to replenish the Strategic Petroleum Reserve with a contract to buy another 2.4 million barrels for delivery in April through May.  (This is the final batch because the Republican House rescinded about $2.05 billion of the funds the previous Democratic House had earmarked to replenish the reserve.)  So, 180 million barrels was released from the reserve at a sale price of $95/barrel.  Then the Dept. of Energy has replenished 59 million barrels at an average cost of $76/barrel, netting about $3.5 billion in profit but leaving the reserve 121 million barrels short of full capacity but also with $20.5 billion more money in hand and presumably falling oil prices under the new administration should they decide to complete the replenishment.  Elsewhere, MCO said Friday that the risks to US fiscal health increased after the election of Trump. (However, this is based on an assumption that Trump will actually implement the policies he promised during the campaign.  This includes corporate and personal tax cuts, across the board import tariffs, and deporting a significant chunk of the US labor force. That is far from certain as Trump isn’t known for keeping promises.)

Overnight, Asian markets were mostly in the red with just four of the 12 exchanges above break-even.  Shenzhen (+2.03%) was by far the biggest gainer while Hong Kong (-1.45%) and South Korea (-1.15%) paced the losses.  However, in Europe, we see green across the board at midday Monday.  The CAC (+1.17%), DAX (+1.37%), and FTSE (+0l.75%) lead the region high on broad-based gains in early afternoon trade.  In the US, as of 7:45 a.m., Futures are pointing toward more gains.  The DIA implies a +0.43% open, the SPY is implying a +0.38% open, and the QQQ implies a +0.39% open at this hour.  At the same time, 10-Year Bonds are down to 4.306% and Oil (WTI) is down 1.85% to $69.08 per barrel in early trading.

There is major economic news scheduled for Monday due to Veteran’s Day.  US Bond markets are closed for the day, but stock markets are open as usual. Major earnings reports scheduled for before the open include ARMK and ICL.  Then, after the close, GRAB, IAC, LYV, and TALO report.

In economic news later this week, on Tuesday, NY Fed 1-Year Consumer Inflation Expectations are reported.  We also hear from Fed members Waller, Kashkari, and Harker.  Then Wednesday, we get October Core CPI, October CPI, EIS Short-Term Energy Outlook, October Federal Budget Balance, and API Weekly Crude Oil Stocks. We also hear from Fed Member Williams.  On Thursday, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, October Core PPI, October PPI, EIA Weekly Crude Oil Inventories, and Fed’s Balance Sheet.  We also heat from Fed Chair Powell and Fed member Williams.  Finally, on Friday, October Core Retail Sales, October Retail Sales, October Export Price Index, October Import Price Index, Ny Empire State Mfg. Index, October Industrial Production, September Business Inventories, September Retail Inventories are reported.

In terms of earnings reports later this week, on Tuesday, we hear from ALIT, AZN, SID, SATS, HTZ, HD, IGT, MOS, ONON, PTVE, SE, SHOP, SGRY, TME, THS, TSN, AE, DOX, AHR, ARMN, CAE, PLUS, FIHL, FLUT, ICUI, CART, LNW, NATL, NGL, OXY, RXT, RKT, SWKS, SPOT, STNE, SU, and MODG.  Then Wednesday, ARCO, BKKT, DOLE, GFF, KMDA, AGRO, BZH, BRFS, BV, CSCO, DADA, EC, HP, HI, NU, SARO, and TTEK report.  On Thursday, we hear from AAP, AZUL, BILI, EFXT, JD, NTES, NICE, NOMD, SBH, TLN, DIS, ZK, AMAT, GLOB, and POST. Finally, on Friday BABA and SPB report.

So far this morning, ICL reported beats on both the revenue and earnings lines. At the same time, ARMK missed on revenue while reporting in-line on earnings.

With that background, it looks like the market is bullish again early Monday. All three major index ETFs made modest gaps higher to start the premarket. Since then, they have all followed-through with white-body candles so far in the early session. SPY, DIA, and QQQ all sit at new all-time highs again as we await the opening bell. Obviously, all three being far above their T-lines (8ema), the short-term trend is very bullish. The mid-term trend is now also very bullish and the longer-term trend remains strongly Bullish in all three as it has been for years. However, with regard to extension, all three major index ETFs are extended far above their T-line while the T2122 indicator remains just outside the bottom of its overbought territory. So, the market is stretched, but theoretically still has some room to push even higher. (Just remember that markets can remain too far extended longer than we can stay solvent betting on the reversal.) At the very least, we can say the Bulls have momentum but are in need of at least a rest, if not pullback. With regard to those 10 big dog tickers, seven of the 10 are in the green this morning with TSLA (7.09%) far out in front of the rest on what presumably is more of the “Trump paying back Musk” trade. INTC (-0.61%) is by far the weakest of the 10. In terms of trading volume, TSLA has traded five times more than NVDA (+0.70%), which is usually the dollar-volume leader. (That situation has been the new normal under the post-Trump win market, but is exactly the opposite of the “AI is the new thing” trade of the last 18 months.) Finally, do not forget that it’s Veteran’s Day, with Bond markets closed, but not a stock market holiday.

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

On Thursday, markets opened higher again.  SPY gapped up 0.35%, DIA opened 0.10% higher, and QQQ gapped up 0.57%.  From there, SPY and QQQ followed-through with a rally that lasted until 12:50 p.m.  At that point, both had an afternoon rest before QQQ began to rally again at 2 p.m. and SPY followed at about 2:45 p.m.  However, both SPY and QQQ also took profits the last 30 minutes of the day.  At the same time, after its open, DIA just meandered sideways around that opening gap all day long.  This action gave us gap-up white bodied candles in the SPY and QQQ as well as a modestly gap-up Doji in the DIA.  SPY and QQQ did have smaller upper wicks on large white bodies.  All three major index ETFs are stretched above their T-line (8ema) now.  This happened on above-average volume in the DIA, average volume in the QQQ, and below-average volume in the SPY.

On the day, seven of the 10 sectors were green with Technology (+2.08%) way, way out front leading the gainers higher.  On the other side, Financial Services (-1.26%) and Communication Services (-1.07%) lagged far behind the other sectors.  At the same time, SPY gained 0.77%, DIA gained 0.04%, and QQQ gained 1.58%.  VXX dropped another 3.53% to close at 45.09 and T2122 fell but remained just inside of its overbought territory, closing at 80.80.  Meanwhile, 10-Year bond yields fell sharply to a still high 4.330% while Oil (WTI) rose 0.50% to close at $72.05 per barrel.  So, the day saw follow-through (especially in the tech area) to Wednesday’s post-election spike. The mega-cap DIA was torn between big profit-taking among financials and the pops from INTC (which is soon going bye-bye from that index), AMZN, AAPL, and MSFT.  Among the market’s big dogs TSLA (+2.90%), led NVDA (+2.25%) in dollar-volume traded although both were over $30 billion and less than $35 billion.  So, it was a lot closer than it normally is in terms of trading.  It is also worth noting that SPY, DIA, and QQQ all printed another new all-time high and another new all-time high close.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which were up slightly but also slightly better than expected at 221k (compared to a forecast of 223k and a prior week reading of 218k).  On the ongoing front, Weekly Continuing Jobless Claims came in higher than expected at 1,892k (versus a 1,880k forecast and the prior week’s 1,853k value). At the same time, Preliminary Q3 Nonfarm Productivity (Qtr.-on-Qtr.) was up but not as strong as predicted at +2.2% (compared to a +2.6% forecast and a Q2 reading of +2.1%).  Meanwhile, the Preliminary Q3 Unit Labor Costs were both down sharply but still far higher than anticipated at +1.9% (versus a forecast of +1.1% and a Q2 reading of +2.4%). Later, Sept. Consumer Credit came in DRAMATICALLY lower than predicted at $6.00 billion (less than half of the $12.20 billion forecast and down from August’s $7.64 billion number).  Then, after the close, the Fed Balance Sheet showed another decline, falling $19 billion on the week down to $6.994 trillion.

Prior to the Fed announcements, the ever attention-needy Trump camp leaked to CNN that the ex-President “would likely allow” the FOMC Chairman to serve out the rest of his term rather than firing him.  During his Press Conference, Fed Chair Powell said he gave one-word “No” answers indicating he would not resign, even if asked, and also that Presidents do not have the legal authority to fire a Fed Chairman. (However, it is worth noting that Chair Powell’s term ends in 2026.)

In Fed news, on Thursday, the Fed Interest Rate Decision was to cut rates 0.25% as expected.  This reduces the Fed Funds rate to 4.75% – 5.00%.  The vote for this cut was unanimous. In its statement, the FOMC said, “The economy has continued to expand at a solid pace,” going on to say “Inflation has made progress toward the Committee’s 2 percent objective but remains somewhat elevated.”  It is also worth noting that the FOMC removed a line from the September statement which had said the committee had “gained greater confidence that inflation was moving toward its 2% target.”  (This may reflect the reasoning for, or result from the decision to, cut only a quarter point instead of the previous half percent cut.)  The statement summation was, “The Committee judges that the risks to achieving its employment and inflation goals are roughly in balance.”  Regarding labor markets, the statement said, “(labor market) conditions have generally eased, and the unemployment rate has moved up but remains low.” (This was a change from language noting a slowing labor market in September.)  

In other news from the Fed Chair press conference, Powell said “In the near term, the election will have no effects on our policy decisions.”  He continued to be pestered by questions about what a new Trump administration means for Fed policy, answering that, “We don’t guess, speculate, and we don’t assume what future policy choices will be” (going on to state the Fed boilerplate “data driven” approach).  This press focus on Trump and what Trump means for the economy led to a shortened press conference.

After the close, AFRM, AKAM, AMN, ANET, AXON, CIVI, ED, DBX, DXC, FTNT, G, PODD, MTD, MSI, NWSA, OPEN, OVV, PINS, QDEL, REZI, RNG, TOST, and TTD all reported beats on both the revenue and earnings lines. Meanwhile, CPAY, EOG, and EXPE missed on revenue while beating on earnings.  On the other side, AL, ABNB, AMRC, BHF, CPRI, EXPI, LGFA, and SOLV beat on revenue while missing on earnings. However, AGL, SQ, DKNG, EVH, MNST, RIVN, and RUN missed on both the top and bottom lines. 

In stock news, on Thursday, Mercury Research reported that INTC’s share of the notebook, desktop, and server market segments is the lowest since 2006. The report said that AMD and ARM were the competitors picking up the lost share.  (Still, it is worth noting that INTC continues to have a 66% in the desktop, 69% in the notebook, and a 70% share in the server space.)  Later, USM announced it has agreed to sell some of its spectrum licenses to T for $1 billion.  At the same time, DUK announced that it expects to see between $2.4 billion and $2.9 billion in costs to restore facilities damaged by Hurricanes Debby, Milton, and Helene. Later, GM announced it is ending production of Cadillac XT4 SUVs as the company shifts more toward electric vehicles. After the close, Bloomberg reported that BLK is in talks with $70 billion hedge fund Millenium Mgmt. over purchasing a stake in the private fund. 

In stock legal and governmental news, on Thursday, the NHTSA announced that VLKAF (Volkswagen) is recalling 114k vehicles in the US over airbag concerns. Later, TPR announced it has paused integration of CPRI while it appeals a US court decision to clock the $8.5 billion acquisition. At the same time, a US federal appeals court ruled that WBD’s CNN unit must face a now-revived defamation lawsuit from “Project Veritas” which CNN had reported was responsible for promoting disinformation and doxing.  Later, the CA Public Utilities Commission increased reporting requirements on autonomous vehicle “incidents” (now at a trip level) for collisions, traffic citations, and stoppage events (when the self-driven vehicles get stuck).  GM, GOOGL, and TSLA are the companies immediately impacted.

In miscellaneous news, on Thursday, the Bank of England also cut its based rate by 25 basis-points to 4.75%. Elsewhere in Europe, German Chancellor Scholz is now facing increasing pressure from business groups (and opposition parties) to call new elections after the collapse of its three-way coalition.  Back in the US, after the Fed rate cut, the Fed Funds Futures market is showing that trades are indicating a 74.5% probability of another quarter-point cut in December.  The other 25.5% probability foresees no cut or increase in December.

In Middle-East War news, on Thursday, the IDF announced it expanded its operations in Northern Gaz, claiming that Hamas has regrouped.  In addition, Israeli strikes in that area killed dozens Thursday, including 27 in one airstrike on a multi-story building in a refugee camp. Elsewhere, the Gaza Ministry of Health reported nearly 44k Palestinians have been killed and another 103k injured since Israel’s responses to the Oct. 7, 2023 Hamas attack began.

Overnight, Asian markets were mixed with five of the 12 exchanges in green and the other seven below break-even.  Hong Kong (-1.07%) was well out in front of the other losers while New Zealand (-1.50%) and Singapore (+1.39%) were well in front of the other gainers.  In Europe, we see a similar picture taking shape with nine of the 14 bourses showing red at midday. The CAC (-0.64%), DAX (-0.60%), and FTSE (-0.78%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a modestly lower start to the day.  DIA implies a -0.02% open, the SPY is implying a -0.12% open, and the QQQ implies a -0.31% open at this hour.  At the same time, 10-Year bond yields are down to 4.308% and Oil (WTI) is down 1.24% to $71.46 per barrel in early trading.

The major economic news scheduled for Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, Michigan November 5-Year Inflation Expectations and Sept. Retail Inventories (all at 10 a.m.).  We also hear from Fed Governor Bowman (11 a.m.). The major earnings reports scheduled for before the open include ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARAA.  Then, after the close, CEPU reports.

So far this morning, ADNT, AMRX, BAX, ERJ, PARAA, and TIXT have all reported beats on both the revenue and earnings lines.  Meanwhile, BLMN, FLO, and SONY missed on revenue while beating on earnings. On the other side, CLMT, FTRE, IEP, and NRG beat on revenue while missing on earnings.  However, WMS, FLR, GTN, and LAMR missed on both the top and bottom lines.

With that background, it looks like the market is basically undecided so far in the premarket. SPY and QQQ did gap modestly higher to start the early session, but have printed black-bodied candles since that point and are back to basically flat. Meanwhile, DIA started premarket a bit lower, and has printed a small white-body candle to also climb back to basically break-even from Thursday’s close. With all three being far above their T-lines (8ema), the short-term trend is very bullish. The mid-term trend has also reversed since the surprise election result and is now bullish and the longer-term trend remains strongly Bullish in all three. Basically, the only thing you need to know is that all three major index ETFs now sit at all-time highs. With regard to extension, all three major index ETFs are extended far above their T-line. However, the T2122 indicator remains just inside the bottom of its overbought territory. So, the market is stretched, but theoretically still has some room to push even higher. At the very least, we can say the Bulls have the momentum but are in need of at least a rest. (Just remember that markets can remain too far extended longer than we can stay solvent betting on the reversal.) With regard to those 10 big dog tickers, nine of the 10 are in the red this morning with only AAPL (+0.10%) clinging to green territory. Meanwhile, INTC (-0.91%) leads the pack lower after leading the gains Thursday. In terms of trading volume, NVDA (-0.07%) and TSLA (-0.03%) are neck-and-neck in terms of dollar-volume traded and both have traded 12 or more times as much as the next closest stock. However, it is a lighter volume trading premarket than usual. Finally, do not forget that it’s Friday…pay day. So take some money off the table to pay yourself and prepare your account for the weekend news cycle. (Happy Birthday on Sunday to my fellow Marines and don’t forget Monday is Veteran’s Day, but not a market holiday.)

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

On Tuesday, markets opened modestly higher and followed-through with a rally until about 1 p.m.  SPY gapped up 0.18%, DIA opened just 0.03% higher, and QQQ gapped up 0.34%.  From there, all three major index ETFs rallied, more quickly at first and then slower after the first hour, but reaching about 1 p.m. before slumping sideways.  SPY and DIA rallied the last few minutes to go out at or near highs while QQQ never quite regained the highs.  This action gave us large, white-bodied candles in all three of the major index ETFs.  SPY printed a Best Friend type candle (Spinning top followed by a gap-up Marubozu candle) to cross back above its T-line (8ema).  Meanwhile, DIA gave us a large, white-bodied candle with small wicks at each end that crossed above its T-line and above its 50sma.  For its part, QQQ printed another Best Friend type signal with a small wick at the top, but it also crossed above its T-line.  This happened on average volume in the DIA, and below-average volume in the SPY and QQQ.

On the day, all 10 sectors were green with Utilities (+1.90%) and Industrials (+1.76%) out front leading the market higher.  On the other side, Communication Services (+0.62%) lagged behind the other sectors.  At the same time, SPY gained 1.20%, DIA gained 1.02%, and QQQ gained 1.28%.  VXX dropped 5.36% to close at 51.55 and T2122 jumped higher to the top end of its mid-range, closing at 72.41.  Meanwhile, 10-Year bond yields fell slightly to 4.289% while Oil (WTI) rose 0.88% to close at $72.10 per barrel.  So, Tuesday was a bullish day across the market, maybe on relief election advertising is done or anticipation one way or the other in the election outcome. No matter the reason, it was the Bulls’ day as Bears never found any traction.  For what it is worth, DIA broke through its downtrend line. 

The major economic news scheduled for Tuesday includes Sept. Exports, which came in down a bit to $267.90 billion (compared to an August reading of $271.80 billion). At the same time, Sept. Imports were up to $352.30 billion (versus an August value of $342.20 billion).  Together, this gave us a Sept. Trade Balance with a larger than predicted deficit of -$84.40 billion (compared to a forecast of $83.80 billion and an August reading of -$70.80 billion).  Later, the Oct. S&P Global Services PMI was down to 55.0 (versus a forecast of 55.3 and a September reading of 55.2).  At the same time, Oct. S&P Global Composite PMI was up, but not as much as anticipated at 54.1 (compared to forecast of 55.3 and a September value of 55.2).  Later, Oct. ISM Non-Mfg. PMI were stronger than expected at 56.0 (versus a 53.8 forecast and a Sept. reading of 54.9).  This included an Oct. ISM Non-Mfg. Employment Index that was up more than predicted at 53.0 (compared to forecast of 48.0 and a September value of 48.1).  At the same time, the Oct. ISM Non-Mfg. Price Index were down but also a tick higher than predicted at 58.1 (versus a forecast of 58.0 and down from September’s 54.9 number).  Then, after the close, the API Weekly Crude Oil Stocks were reported with a significantly larger inventory build than anticipated at +3.132 million barrels (compared to forecast of +1.800 million barrels and a previous week value of -0.573 million barrels).

After the close, AIZ, CRC, CPNG, DVN, GMED, GO, JKHY, KGC, LUMN, MASI, MCHP, MRC, NOG, VIV, and TX all reported beats on both the revenue and earnings lines.  Meanwhile, AFG, FYBR, IFF, and NE beat on revenue while missing on earnings.  On the other side, PAAS missed on revenue while beating on earnings. However, EXAS and PBA missed on both the top and bottom lines.

In stock news, on Tuesday, Reuters reported a survey that found that the major mass retailer like WMT, TGT have imported less holiday product this year than recent years based on the shorter and expected to be weaker holiday sales.  However, even more discounted retailers like DG and DLTR imported the same amount of Christmas items than in past years.  The article also noted that the US National Retail Foundation has reported that November-December sales grew 2.5%-3.5% in 2023.  This was the slowest year-on-year holiday sales growth since 2018.  Later, EMR proposed a buyout of the rest of AZPN at an offer of $240 per share (or $6.53 billion). This was a modest premium on Monday’s closing price for AZPN of $237.59. 

Elsewhere, TSLA CEO Elon Musk responded to previous Reuters reports related to the company’s long-promised and never delivered $25k electric vehicle.  Musk responded Tuesday that it was “pointless” to build a cheap electric vehicle that was not a robotaxi.  Later, CVX, BP, SHEL, and OXY announced they were temporarily halting operations in the Gulf of Mexico as Tropical Storm Rafael strengthens and is expected to become a Category 1 hurricane by Wednesday morning.  At the same time, Reuters reported that ADM has found additional accounting errors after the company was forced to restate six years of financials in March. (ADM will amend its 2023 annual report as well as Q1 and Q2 reports of 2024 following the finding of the new error.)

In stock legal and governmental news, on Tuesday, AMZN announced that it remains committed to a nuclear power plant adjacent to its PA data center campus…despite the plant project (from TLN) being rejected by the Federal Energy Regulatory Comm. (The deal was opposed by some utility industry groups.)  It is unclear how TLN and/or AMZN intend to overcome the regulatory denial.  At the same time, Reuters reported that a Moscow Court fined AAPL about $37k on Tuesday for refusing to delete two podcasts from the Apple Music platform. (This is the opposite of the ruling against GOOGL, which was for deleting YouTube channels of Moscow propaganda.) There was no word on whether the AAPL fine doubles daily after the payment deadline the way GOOGL’s fine has doubled to now be more money than exists in the world. Later, a federal judge dismissed a proposed class-action lawsuit that had been filed against GOOGL.  (The case alleged GOOGL was profiting by refusing to refund millions of dollars stolen from victims in Google Play Store gift card scams.)

Elsewhere, the UK Anti-trust Regulator approved the $19 billion merger of VOD with British firm Hutchinson’s Three UK, stating that the country’s need for investment outweighed the competition concerns. (The agency had blocked the merger nine years prior on the basis of its anti-competitive impacts.)   Later, Reuters reported that NFLX is under investigation for tax fraud in France and the Netherlands with searches of the offices of the company in the two countries took place Tuesday. At the same time, South Korea fined META $15.67 million over its collection of user personal data and giving it to advertisers without user consent.  Later, Reuters reported that AAPL will be the first company y to face fines under the EU’s Digital Markets Law after regulators found that AAPL did violate the law back in June. The report said the fine will likely be announced this month.  (The maximum fine would be 10% of AAPL’s global sales.)  After the close, the FTC sued DAVE, alleging the fintech company misleads consumers by claiming to offer cash advances to gain users of its app, but which few users receive.

In miscellaneous news, on Tuesday, NVDA passed AAPL to again become the world’s most valuable company based on market cap.  NVDA closed at a market value of $3.43 trillion, slightly ahead of AAPL’s $3.38 trillion.  (Poor MSFT is a distant third at $3.06 trillion.)  Elsewhere, Bloomberg reported Tuesday that bond investors have priced in scenarios that would benefit from a Harris election victory while under-investing on positions likely to benefit from a Trump victory.  (They gave no specifics on the exact trades or amounts or how they came to the conclusion one trade would benefit from a Harris win and the other would benefit from a Trump win. However, I wanted to include the info for anyone who is a savvier bond trader.)

In geopolitical news, on Tuesday, Israeli PM Netanyahu fired his rival and now-former Defense Minister Gallant. Netanyahu promoted his ally Foreign Minister Katz to take the Defense Minister spot and unassigned cabinet member Sa’ar to replace Katz as the new Foreign Minister.  Protests erupted across Israel over the firing.  In unrelated news, Israeli police arrested a Netanyahu aid over accusations of leaking information (that gave Netanyahu cover for refusing cease fire proposals) after an Israeli court loosened a government gag order on the info that underlies the case.  Meanwhile, on the ground, an Israeli strike in the north of Gaza killed 30 (mostly women in children according to the AP) on Tuesday.  Elsewhere, in Russian invasion news, in the Kursk region, Ukrainian forces clashed with North Korean troops for the first time Tuesday. (Some North Korean troops were killed a week ago, but that turned out to be due to “friendly fire” from Russian artillery.)  The skirmishes were small-group in nature and there was no word on casualties.

Overnight, Asian markets were mixed with half of the 12 regional exchanges in the red and the other half in the green.  Japan (+2.61%) was by far the biggest gainer while Hong Kong (-2.23%) was by far the biggest loser.  Meanwhile, in Europe, the bourses lean toward the upside at midday with just four of the 14 exchanges below break-even.  The CAC (+1.20%), DAX (+0.83%), and FTSE (+1.27%) lead the region higher in early afternoon trade.  In the US, as of 6:40 a.m., Futures are pointing toward a significant gap higher.  The DIA implies a +2.93% open, the SPY is implying a +2.22% open, and the QQQ implies a +1.63% open at this hour.  At the same time, 10-Year bond yields are spiking higher to 4.477% and Oil (WTI) has fallen 1.40% to $70.98 per barrel in early trading.

The major economic news scheduled for Wednesday includes EIA Weekly Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, and VSH.  Then, after the close, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.

So far this morning, AEP, COR, GIB, CRL, CRARY, CVS, DK, DDL, ENOV, KMT, ADRNY, OC, TEVA, TRMB, and VWDRY all reported beats on both the revenue and earnings lines.  Meanwhile, CLVT, HWM, IRM, JCI, LINE, and PRGO missed on revenue while beating on earnings.  On the other side, HMC and PFGC beat on revenue while missing on earnings. However, NVO, ODP, SUN, TM, and VSH all missed on both the top and bottom lines.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

In overnight news, America chose four more years of the felon, ex-President as it elected him again over current-VP Harris. The country also gave his party control of both the Senate and House, ensuring that faction now has complete control over all three branches of the US government as of January. Markets seem to love the idea, or are at least expressing relief that the election process is done, and are looking like they want to revisit the recent all-time highs.  The Dollar is spiking, which at least in part helps explain the 10-Year bond yield spike, which is contributing to falls in commodity prices early. 

With that background, it looks like the market is spiking higher and strongly bullish again early on Wednesday. All three major index ETFs gapped higher to start the premarket. Since that point, all three have also printed large white-bodied candles. (DIA is back at all-time highs.) With all three gapping far above their T-line (8ema), the short-term trend is bullish. However, the mid-term trend is also reversed and is now again bullish and the longer-term trend remains strongly Bullish in all three. With regard to extension, all three major index ETFs will open extended far above their T-line. However, at least until the market opens the T2122 indicator remains in the top end of its mid-range. So, the Bulls will run this morning. However, markets will also be stretched. Just remember that markets can remain too far extended longer than you can stay solvent betting on the reversal. With regard to those 10 big dog tickers, eight of the 10 are in the green again this morning. TSLA (+12.64%) is getting paid back for Musk getting in bed with Trump. TSLA is also far-and-away the largest dollar-volume trader, having traded nearly six times the traditional leader NVDA (+1.12%). The laggard of the group is META (-1.00%), perhaps on the premise that it will be punished by a pro-Musk government since it competes with Musk’s own social media company.

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 opened modestly on Monday as traders seem to be waiting (on elections, the Fed, or who knows what). SPY opened up just a tiny fraction of a percent, DIA opened down 0.13%, and QQQ opened down 0.12%. From there, SPY and QQQ meandered back and forth above and below the opening level all day. For its part, DIA sold off until noon, rallied half way back to the opening level by 1 p.m. before grinding sideways in a tight range the rest of the day.  This action gave us indecisive candles in all three major index ETFs.  SPY printed a black-bodied Spinning Top candle that retested its 50sma from above, but passed to closed back above that level.  DIA printed a black-bodied, large Hammer type candle that retested its 50sma after gapping below, but failed the test to close back below.  Finally, QQQ printed a black-bodied Spinning Top, Bear Harami for the day.  This happened on well-below-average in the SPY and QQQ as well as below-average volume in the DIA.

On the day, five of the 10 sectors were in the green with Energy (+1.38%) almost one percent out in front leading the gainers higher.  On the other side, Utilities (-0.54%) was two-tenths of a percent ahead of the rest of the losing sectors headed down. At the same time, SPY lost 0.22%, DIA lost 0.56%, and QQQ lost 0.29%.  VXX fell 4.19% to close at 54.47 and T2122 climbed a bit to just get above the edge of its oversold area, but is only in the bottom of its mid-range at 22.84.  Meanwhile, 10-Year bond yields fell to 4.289% while Oi (WTI) spiked 3.21% (on Israeli-raised fears of an Iranian retaliation for its bombing of Iran) to close at $71.73 per barrel. So, Monday was largely a “wait-and-see” day for traders. US Presidential and Congressional elections weigh on the market like a dark cloud that likely will not lift for at least days, maybe weeks, and possibly months. (The GOP has already filed more lawsuits than seen in any other US election and the number of their suits will skyrocket as votes are cast and counted. So, the normal schedule of democracy will likely not occur given the inability of one side to accept defeat or even reality.)

The major economic news scheduled for Monday is limited to September Factory Orders, which came in better than August but a tick worse than expected at -0.5% (compared to a -0.4% forecast and August’s -0.8%).

After the close, AIG, ANDE, AVB, EQH, BFAM, BWXT, CRUS, CWK, ES, FN, GXO, ILMN, NXPI, PARR, PLTR, PRIM, RHP, SANM, SLF, VVX, and VRTX all reported beats on both the revenue and earnings lines.  Meanwhile, CENX, CRBG, CRGY, GT, HUN, O, RRX, and ST missed on revenue while beating on earnings. On the other side, BCC, FANG, FWRD, and HOLX beat on revenue while missing on earnings. However, ATUS, CBT, CE, CLF, JELD and WYNN missed on both the top and bottom lines.

In stock news, on Monday, HXSCL (SK Hynix) stock spiked at the open after NVDA requested expedited delivery for the memory-maker’s new HBM-4 high-bandwidth memory chips.  (The NVDA desire to pull-forward it’s buying is a powerful indicator of high demand for the newer, faster memory chips.  The only other memory makers of any note globally are MU and Korea’s Samsung.)  Later, the Chinese Passenger Car Assn. reported that deliveries of Chinese-made TSLAs fell 5.3% year-on-year in October.  In addition, October sales of Chinese-made Model 3 and Model Y fell 22.7% from September.  At the same time, as reported Monday, ATSG confirmed that it has agreed to be taken private by equity firm Stonepeak for $22.50 per share (a 29.3% premium on Friday’s close).  Later, IT industry analysts reported Monday that NVDA has begun routing motherboard orders away from SMCI following its accounting scandal. (Taiwanese-listed competitors Gigabyte and ASRock seem to be the beneficiaries of the NVDA decision.) 

Elsewhere, F announced that its October sales were up roughly 15% year-on-year. Later, META announced it will extend its ban on new political ads beyond the election, at least until later this week.  After the close, Reuters reported that BCSF and private equity firm Silver Lake are among the potential buyers bidding for a minority stake in INTC’s Altera (programmable chips) unit, which INTC acquired for $17 billion in 2015. At the same time, Bloomberg reported that OpenAI is in talks with the state of CA on becoming a for-profit company (changing structure from a non-profit).  Later, DLTR announced that CEO Dreiling (who only joined the company in March 2022) is stepping down “for personal reasons.” (However, the more likely scenario is that he was ousted due to poor performance in what was supposed to be a turnaround.) No successor was named as of yet.

In stock legal and governmental news, on Monday, Reuters reported that EU antitrust regulators have opened an investigation into whether AAPL’s iPad operating system complies with the EU’s Digital Markets Act. (At question is whether AAPL’s prohibition on other app stores for iPad apps violates the law.) That antitrust commission has just begun soliciting comment from all interested stakeholders. Later, the same EU antitrust regulators announced they will rule on NVO’s $16.5 billion acquisition of CTLC by December 6.  Meanwhile, the Texas Railroad Commission (which, oddly, regulates the TX oil and gas industry) requested state lawmakers for $100 million in emergency funding to keep up with the growing number of leaking or erupting wells in TX oilfields.  (That amount is equivalent to 44% of TX’s entire two-year budget.)  In addition, the head of the agency said that request DID NOT include enough money to protect TX groundwater from well blowouts.

Elsewhere, the NHTSA announced it has closed a probe into 411k F’s SUV and pickups. The probe was started after more than 1,000 complaints of loss of power during operations.  The end of the investigation comes after F acknowledged the problem and recalled 90k of the vehicles.  Later the US State Dept. approved the sale of $4.92 billion of BA military aircraft to South Korea. At the same time, China filed a WTO complaint alleging the EU has improperly set anti-subsidy tariffs on China’s electric vehicles.

In miscellaneous news, on Monday, MS reported that their survey of consumers has found sentiment was the highest in three years at the end of October. Meanwhile, C reported that its survey of chipmakers found that September saw a massive 8.8% month-on-month increase in global semiconductor sales, reaching $61.1 billion for the month.  Elsewhere, the Chinese National People’s Congress Standing Committee held a meeting Monday to discuss moving “off balance sheet debt” of local governments to their official accounts.  Additional talks included increasing local government debt ceilings in order to allow the move. Bloomberg also reported that they are considering permitting local governments to sell $845 billion in bonds by 2027 to finance the hidden debt. 

In Middle East news, on Monday Israel officially ended its recognition of the UN’s Relief and Works Agency for Palestinian Refugees.  This put the previously-voted ban of the organization into effect.  Dismantling UNWRA has long been a goal of Israel, but global humanitarian support for the organization made that move politically untenable.  Israel’s defiance and disregard for international pressure (assured of US support) over the last year allowed Israel to justify the move, blaming support of Hamas for the move.  (Since UNWRA is by far the largest aid and services distributor to Palestinians, the impact is expected to be dire in Palestine.)  Attacks on the day were lighter than recently (mostly due to the Israelis lightening up) as they continue to push the narrative that Iran is “just about” to retaliate for their airstrikes in Tehran last week.

Overnight, Asian markets were mostly strongly green.  Shenzhen (+3.22%), Shanghai (+2.32%), Hong Kong (+2.14%), Thailand (+1.28%), and Japan (+1.11%) led that region higher.  Meanwhile, in Europe, most bourses are green but there is more red showing than in Asia as of midday with five of 14 exchanges below break-even. The CAC (+0.14%), DAX (+0.17%), and FTSE (+0.12%) lead the region higher in early afternoon trade.  In the US, as of 7 a.m., Futures are pointing toward a higher start to the day.  The DIA implies a +0.15% open, the SPY is implying a +0.25% open, and the QQQ implies a +0.41% open at this hour.  At the same time, 10-Year bond yields are back up to 4.311% and Oil (WTI) is up a third of a percent to $71.73 per barrel in early trading.

The major economic news scheduled for Tuesday includes Sept. Exports, Sept. Imports, and Sept. Trade Balance (all at 8:30 a.m.), Oct. S&P Global Services PMI and Oct. S&P Global Composite PMI (9:45 a.m.), Oct. ISM Non-Mfg. PMI, Oct. ISM Non-Mfg. Employment, and Oct. ISM Non-Mfg. Price Index (all at 10 a.m.), and API Weekly Crude Oil Stocks report (4:30 p.m.).  However, the main news of the day will be the US elections (although, as mentioned, the results are not likely to be known Tuesday or maybe even this week).  The major earnings reports scheduled for before the open include AHCO, AGCO, GBTG, APO, ARCH, ADM, BR, BRKR, BLDR, CIGI, CEIX, CMI, DD, EMR, EXPD, RACE, FTS, IT, GGB, GFS, HSIC, HY, INGR, LGIH, LPX, MPC, MLCO, MPLX, NMRK, OGE, ACDC, QSR, TRGP, TRI, TKR, BLD, TAC, ULS, WLK, and YUM.  Then, after the close, AFG, AIZ, CRC, CPNG, DVN, EXAS, FYBR, GMED, GO, IFF, JKHY, KGC, LUMN, MASI, MCHP, MRC, NE, NOG, PAAS, PBA, SMCI, VIV, and TX report.

In economic news later this week, on Wednesday, EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Wednesday, AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, VSH, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.  On Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

In overnight news, BA union members voted to accept the latest tentative contract and thus end the 7+ week strike.  It is worth noting that only 59% of the machinists voted to accept the deal, which includes a 38% pay increase over four years and either a $12k ratification bonus or $7k bonus plus $5k contribution to the employees 401(k). While some workers could return to the job as soon as Wednesday, the official return to work date is November 12.

With that background, it looks like the market is modestly bullish but indecisive again early Tuesday. All three major index ETFs gapped modestly higher to start the premarket. Since that point, all three have also printed Doji-like candles. With all three still below their T-line (8ema), the short-term trend is bearish. However, the mid-term trend is now undetermined (seeming to turn over to bearish but not definitive yet) and the longer-term trend is still solidly Bullish in all three. (Again, despite the recent pullback, they all still within three percent of all-time highs.) With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator has climbed just outside of its oversold area and into the bottom of the mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the green this morning. TSLA (+1.86%) is by far the leading gainer (a full percent ahead of the next best-performing ticker) while AAPL (-0.15%) is the laggard. Once again, overall the premarket volume is light today. However , TSLA is leading NVDA in terms of dollar-volume traded (early) and those two are far out in front of all other tickers.

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 opened higher on Friday after good earnings news and poor payroll data (that can be interpreted as a rationale for another or a bigger Fed rate cut).  SPY gapped up 0.49%, DIA gapped up 0.50%, and QQQ opened up 0.31%. From there, all three major index ETFs followed-through with a strong rally for the first hour.  At that point they all slowly meandered back toward their open.  This action gave us Inverted Hammer type candles in all three major index ETFs.  SPY printed a black-bodied Inverted Hammer.  DIA gave us a gap-up white-bodied, Inverted Hammer that retested its T-line (8ema) from below and failed.  However, DIA did recross its 50sma to the upside.  Finally, QQQ printed a white-bodied, big Inverted Hammer Body candle that was also a Bullish Harami candle.  This all happened on average volume int SPY and QQQ as well as above-average volume in the DIA.

On the day, six of the 10 sectors were in the green with Healthcare (+1.00%) well out in front leading the way higher.  On the other side, Utilities (-1.85%) performed far, far worse (one percent worse) than the next worse sector, Energy (-0.86%).  Meanwhile, SPY gained 0.42%, DIA gained 0.66%, and QQQ gained 0.74%.  VXX fell 1.76% to close at 56.85 and T2122 fell slightly further into oversold territory, but remains in the top of that area at 16.44.  At the same time, 10-Year bond yields spiked again all the way up to 4.386% while Oil (WTI) fell to close at $69.49 per barrel. So, Friday was the Bulls day early but then turned into a long, slow drift lower after the first hour.  Among the big market-movers were the big dogs INTC (+7.81%) and AMZN (+6.19%) as well as earnings moves by CHTR (+11.87%), LULU (+7.81%), and CAH (+7.01%).

The major economic news scheduled for Friday included October Average Hourly Earnings, which was up more than expected at +0.4% (compared to a forecast and September value of +0.3%).  At the same time, October Nonfarm Payrolls were FAR below expectations at +12k (versus a forecast of +106k and the September 223k reading).  On the private side, October Private Nonfarm Payrolls actually fell at -28k (compared to a forecasted +90k and September’s +192k number).  Meanwhile, the October Participation Rate fell a tick to 62.6% (versus the forecast and September 62.7% value).  Together, this gave us an October Unemployment Rate that remained at 4.1% (in-line with the forecast and September reading of 4.1%).  Later, October S&P Global Mfg. PMI was better than predicted at 48.5 (compared to a forecast and Sept. value of 47.8). Shortly after that, September Construction Spending was better than anticipated at +0.1% (versus a 0.0% forecast and in-line with August’s +0.1% reading). At the same time, October ISM Mfg. Employment was up less than expected to 44.4 (compared to a 45.0 forecast but up from September’s 43.9 value).  In the meantime, October ISM Mfg. PMI was lower than predicted at 46.5 (versus a 47.6 forecast and a 47.2 September reading).  This came on October ISM Mfg. Prices were up much more than anticipated at 54.8 (compared to a 49.9 forecast and September’s 48.3 value).  It is worth noting that the weak October Payrolls growth was skewed by hurricanes and the impact of the BA strike, which also impacted BA suppliers.

In stock news, on Friday, WEN announced it is closing 140 restaurants (in addition to 100 closings announced in May) over the months ahead.  (It is worth noting that the hamburger chain is opening 250-300 new location and has 6,000 stores in the US at the moment.)  Later, in a regulatory filing showed that AAPL will invest $1.5 billion in GSAT which will give GSAT funds to expand its satellite coverage.  This includes a 20% stake in GSAT for $400 million as well as $1.1 billion in cash.  After the close, Bloomberg reported that SHOCF and their private-equity peer Silver Lake Mgmt. are in talk about combining their veterinary business units and adding $4 billion in new capital to the combined company. 

Elsewhere, S&P announced that NVDA will replace INTC in the DJIA (DIA) as of November 8.  On Saturday, BRKB announced they have now amassed a $325.2 billion cash stockpile through sales of AAPL and BAC.  Warren Buffett said the company had sold another 100 million shares, which was about 25% of its holdings of AAPL during Q3 (600 million total to date for 2024).  Interestingly, BRKB also did not buy back any of its own stock during the quarter, which suggests company executives do not feel it is a bargain now.  On Sunday, Reuters reported that private equity firm Stonepeak is in advanced talks to acquire ATSG for about $3.1 billion or $22.50 per share (a 29% premium on Friday’s close of $17.40).

In stock legal and governmental news, on Friday, the NY State Supreme Court ruled in favor of PEP, dismissing the state’s case alleging the company of pollution for using plastic single-use plastic packaging.  At the same time, the Federal Energy Regulatory Commission held a hearing on concerns generated by the recent trend of planning to build datacenters on the sites of US power plants.  (The main focus was concerns over system-wide reliability as well as passing more cost onto public electric consumers in favor of the co-located datacenter.)  Later, trade groups for the major airlines criticized the US Justice Dept. review of airline competition in America and demanded that public comment on the review be extended another 60 days beyond the Dec. 23 deadline (in hope a GOP administration could kill the antitrust review for them).  At the same time, the Commerce Dept. imposed a $500k fine on GFS (third-largest chipmaker, with huge market share in lower-end chips) for selling semiconductors to blacklisted Chinese chipmaker SMIC.  Later, COF disclosed (in and SEC filing) that it is being investigated and may face enforcement action from the Consumer Financial Protection Bureau for alleged misrepresentations related to savings accounts.

In miscellaneous news, on Friday, China loosened its foreign investment rules in an effort to increase the amount of foreign funds flowing into the country.  Overseas investors are now allowed to take non-controlling “strategic stakes” in publicly-traded Chinese firms with a $300 million position. (The previous rule required foreigners to take at least a $500 million stake for a “strategic position” designation, but it was still non-controlling.)  Elsewhere, remember that BA has a binary event Monday with a union vote on the tentative deal reached last week.  (Results are not expected until at least the afternoon Monday and probably the evening.)

In Middle East news, over the weekend, Israel claimed it captured a “senior Hezbollah operative” in a raid in Northern Lebanon.  Elsewhere, Israeli airstrikes continued with several dozen killed and hundreds injured in weekend bombings in Lebanon.  In Gaza, at least 13 were killed and several dozen injured in an airstrike of two houses and the refugee camps located next to them.  On the other side, Israel said 11 people were injured in the city of Tira (central Israel) when three Hezbollah rockets hit the city.

Overnight, Asian markets were mostly green with just two of the 12 exchanges in the region under water.  Shenzhen (+1.99%), South Korea (+1.83%), and Shanghai (+1.17%) paced the gainers.  Meanwhile, India (-1.27%) was the only appreciable loser for the day.  (Japan was closed for holiday.)  In Europe, we see a very similar picture taking shape with just two of 14 bourses showing red (barely) at midday.  The CAC (+0.26%), DAX (+0.02%), and FTSE (+0.63%) lead the region higher in early afternoon trade.  In the US, as of 7 a.m., Futures are pointing toward a modest green start to the day.  The DIA implies a +0.10% open, the SPY is implying a +0.20% open, and the QQQ implies a +0.17% open at this hour.  At the same time, 10-Year bond yields are down to 4.277% and Oil (WTI) has spiked 3.09% to $71.65 in early trading.

The major economic news scheduled for Monday is limited to September Factory Orders (11 a.m.).  The major earnings reports scheduled for before the open include FOX, AMG, BRKB, BAM, CC, CNA, CEG, ENTG, FIS, BEN, FTDR, KNF, KOS, MAR, NYT, OMI, PEG, RVTY, YUMC, and ZTS.  Then, after the close, ATUS, AIG, AVB, EQH, BCC, BFAM, BWXT, CBT, CE, CENX, CRUS, CLF, CRBG, CRGY, CWK, FANG, ES, FN, FWRD, GT, GXO, HOLX, HUN, ILMN, ITUB, JELD, NXPI, PLTR, PARR, PRIM, PGR, O, RRX, RHP, SANM, ST, SLF, VVX, VRTX, and WYNN report.

In economic news later this week, on Tuesday we get Sept. Exports, Sept. Imports, Sept. Trade Balance, Oct. S&P Global Services PMI, Oct. S&P Global Composite PMI, Oct. ISM Non-Mfg. PMI, Oct. ISM Non-Mfg. Employment, Oct. ISM Non-Mfg. Price Index, and API Weekly Crude Oil Stocks report.  However, the main news of the day will be the US elections (although the results are not likely to be known that night and, if one side loses, turmoil may not end for months).  Then Wednesday, EIA Crude Oil Inventories are reported.  On Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Preliminary Q3 Nonfarm Productivity, Preliminary Q3 Unit Labor Costs, Sept. Retail Inventories, Fed Interest Rate Decision, FOMC Statement, Fed Chair Press Conference, Sept. Consumer Credit, and Fed Balance Sheet. Finally, Friday brings Michigan November Consumer Sentiment, Michigan November Consumer Expectations, Michigan November 1-Year Inflation Expectations, and Michigan November 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Tuesday, we hear from AHCO, AGCO, GBTG, APO, ARCH, ADM, BR, BRKR, BLDR, CIGI, CEIX, CMI, DD, EMR, EXPD, RACE, FTS, IT, GGB, GFS, HSIC, HY, INGR, LGIH, LPX, MPC, MLCO, MPLX, NMRK, OGE, ACDC, QSR, TRGP, TRI, TKR, BLD, TAC, ULS, WLK, YUM, AFG, AIZ, CRC, CPNG, DVN, EXAS, FYBR, GMED, GO, IFF, JKHY, KGC, LUMN, MASI, MCHP, MRC, NE, NOG, PAAS, PBA, SMCI, VIV, and TX.  Then Wednesday, AEP, BCO, COR, CTRI, GIB, CRL, CLVT, CNDT, CVS, DK, ENOV, HMC, HWM, IRM, JCI, JLL, LINE, NVO, ODP, OC, PFGC, PRGO, PNW, RPRX, SNDR, SRE, FUN, SWX, STWD, SUN, TEVA, TM, TRMB, VSH, AMRK, AGI, ALB, AMC, AEE, APA, APP, ARDT, ARM, ASH, ATO, BTG, BALY, BBSI, BKD, CHRD, COHR, CCU, CTVA, COTY, CAPL, DLX, ET, EMS, ENLC, EQX, FG, FNF, FBIN, FNV, GFL, GILD, HG, HST, HUBS, JXN, JAZZ, KD, LILA, LYFT, MFC, MRO, VAC, MTCH, MATV, MCK, MELI, MEOH, MKSI, MODV, NTR, PAM, PR, PRI, PTC, QGEN, QCOM, RNR, RGLD, SVC, SBGI, SSRM, STE, STRL, SUI, TTWO, TKO, TS, TRIP, TTEC, TPC, UHAL, VSAT, VSTO, WES, WMB, ZG, and Z report.  On Thursday, we hear from GOLF, ADV, APD, AQN, COLD, HOUS, MT, AVAH, GOLD, BCE, BDX, CCJ, CG, COMM, CRH, DDOG, ZRAY, DBD, DUK, EPC, ELAN, EDR, EPAM, EVRG, GEO, HAL, HBI, HSY, HGV, IHRT, IBP, KVUE, LCII, MRNA, TAP, MUR, VYX, NXST, DNOW, OSCR, PZZA, PENN, PCG, PLTK, PRMW, RL, ROK, RXO, SCSC, SEE, SPTN, STGW, SHOO, TPR, TRP, TGNA, TEF, TPX, TDG, UAA, PRKS, USFD, UWMC, VTRS, VST, WBD, KLG, AFRM, AGL, AL, ABNB, AKAM, AMN, ANET, ARKO, AXON, SQ, BHF, CPRI, CIVI, ED, CPAY, BAP, DKNG, DBX, DXC, SSP, EOG, EVH, EXPI, EXPE, FTNT, G, PODD, MTD, MNST, MSI, NWSA, OPEN, OVV, PACS, PINS, QDEL, REZI, RNG, RIVN, SOLV, RUN, TOST, and TTD.  Finally, on Friday, ADNT, WMS, ATSG, AMCX, AXL, AMRX, BAX, BLMN, BEPC, BEP, CLMT, CNH, ERJ, FLO, FLR, FTRE, GLP, GTN, IEP, KOP, LAMR, NRG, PAA, PAGP, RBA, SONY, TIXT, and PARA report.

So far this morning, BNTX, CC, CNA, CEG, L, OMI, and RVTY all reported beats on both the revenue and earning lines.  Meanwhile, BAM, KOS, and YUMC missed on revenue while beating on earnings. On the other side, BRKB came in in-line on revenue while missing on earnings.  However, ENTG missed on both the top and bottom lines.

With that background, it looks like the market is modestly bullish again early Monday. The SPY and QQQ gapped up slightly to start the premarket while DIA opened the early session flat. All three major index ETFs have printed white-body candles, but only DIA is decisive with the two broader ETFs more wick than body so far. With all three below their T-line (8ema), the short-term trend is bearish. However, the mid-term trend is weakly bullish and the longer-term trend is still solidly Bullish in all three. (Again, despite the recent pullback, they all still sit not too far from all-time highs.) With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains just inside the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the red this morning. TSLA (-2.17%) is by far the biggest loser while NVDA (+2.15%) is by far the biggest gainer. Once again, overall the premarket volume is light today. However , NVDA leads TSLA slightly in early dollar-volume traded (and those two are well out in front of all other tickers).

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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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 saw a significant gap lower in all three major index ETFs, perhaps mostly on warnings from META and MSFT that spiraling AI costs may impact earnings. SPY gapped down 0.74%, DIA gapped down 0.63%, and QQQ gapped down 0.84%.  From there, SPY and QQQ immediately began following-through with a selloff, finding some support shortly after 11 a.m. and then meandering sideways until the end of the day. For its part, after the open, DIA chopped sideways along the open until 10:25 a.m. before beginning to selloff sharply until the low of the day at 11 a.m.  At that point, DIA rallied back to its open by 1:30 p.m. and then meandered sideways until the end of the day. All three major index ETFs sold off sharply the last 10 minutes with SPY and QQQ going out very near the low of the day. 

This action gave us gap-down, black-bodied candles in all three.  SPY was a black Marubozu (shaved head) candle that gapped below its T-line (8ema) and closed right on its 50sma.  DIA printed a gap-down, black-body Spinning Top candle that gapped down through its 50sma, retested from below and failed that test.  Finally, QQQ gave us a black Marubozu (shaved head) candle that gapped below its T-line, printed a big black candle, but has not reached its 50sma yet.  This happened on above-average volume in all three of the major index ETFs.

On the day, eight of the 10 sectors were in the red with Technology (-2.71%) way, way out in front (by 1.2%) leading the way lower.  On the other side, Utilities (+0.64%) held up far better than most of the market. Meanwhile, SPY lost 1.98%, DIA lost 0.96%, and QQQ lost 2.52%.  VXX spiked 7.65% higher to close at 57.87 (the highest it has been since early August) and T2122 fell just inside of the oversold territory at 17.55.  At the same time, 10-Year bond yields climbed back up to close at 4.286% while Oil (WTI) jumped 2.92% to close at $70.61 per barrel. So, Thursday was a rough, rough day for the Bulls as Bears gapped us lower and then followed-through in the morning.  We saw a midday sideways chop as the Bulls tried to find their footing.  However, the dark pool came in to close out the day on a whoosh lower. The big losers on the day were the Tech giants, with MSFT (-6.03%), NVDA (-4.81%), and META (-4.09%) leading the parade lower.  Of the 10 “Big Dogs,” only NFLX (+0.30%) was in the green.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in lower than expected at 216k (compared to a forecast of 229k and the prior week’s reading of 228k).  In terms of ongoing claims, Weekly Continuing Jobless Claims were also well down to 1,862k (versus the 1,890k forecast and prior week’s 1,888k).  At the same time, the September Core PCE Price Index came in as anticipated at a flat 2.7% (Year-on-Year), compared to the 2.6% forecast and August value of 2.7%).  On the monthly side, the September Core PCE Price Index was as predicted at 0.3% (versus the 0.3% forecast but up a tick from August’s 0.2% value).  For the headline numbers, the September PCE Price Index was down as predicted to 2.1% (compared to a 2.1% forecast and the August 2.3% reading). This made it the lowest PCE number since 2021.  For the monthly value, the September PCE Price Index was 0.2% (versus a 0.2% forecast but up a tick from August’s 0.1% Month-on-Month value).  At the same time, the Q3 Employment Cost Index was lower than expected at 0.8% (compared to a forecast and Q2 reading of 0.9%).  Meanwhile, September Personal Spending, Month-on-Month, was up more than anticipated at +0.5% (versus a +0.4% forecast and August’s +0.3% number). Then, after the close, the Fed Balance Sheet showed a $16 billion decline to $7.013 trillion (from $7.029 trillion).

After the close, AMZN, AAPL, TEAM, CVCO, CNO, CPS, EMN, ERIE, JNPR, MERC, RGA, SEM, SKYW, X, and VICI all reported beats on both the revenue and earnings lines.  Meanwhile, AES, AMCR, CON, DORM, ICFI, IR, MTZ, SM, and SON missed on revenue while beating on earnings. On the other side, INTC beat on revenue while missing on earnings.  However, CAR and CTRA missed on both the top and bottom lines.

Drilling down, AMZN shares soared after-hours on huge beats with ad revenue up 19% year-on-year and cloud services posting the biggest profit in a decade.  At the same time, INTC spiked 7% on an earnings miss that was less than feared and upbeat guidance. Not to be outdone, AAPL beat and announced that it is seeing early demand for the iPhone 16 (where AAPL is counting on AI revenue to generate future growth). So, despite the very down day for big tech, after-hours a sigh of relief seemed to be released by markets on the three big reports.

In stock news, on Thursday, SIEGY (Siemens) announced it had agreed to buy ALTR for $10.6 billion, strengthening its position in the industrial software market. This will raise SIEGY to number 2 (from number 4) in that market, behind just ANSS.  At the same time, Korean Samsun Electronics announced it had made progress on new “high-bandwidth memory” products, which it said are advancing through qualification tests. (As a result, direct competitor MU, which has recently said it is still in “early days” on its own HBM products, stock fell 4.5%.) Later, GOOGL announced a set of AI features for map applications (such as Google Maps).  At the same time, CMCSA said it is considering the spinoff of its cable TV networks, such as CNBC and MSNBC (but not including NBC or the Peacock streaming network).  Later, PTON announced it has hired former AAPL exec Peter Stern as its new CEO effective January 1. Stern will be tasked with guiding a turnaround for PTON. At the same time, Reuters reported that sources indicate the F has told employees that the company will cut management bonuses by 65% if the company does not speed up the implementation of cost-cutting and quality improvement programs. 

Later, OpenAI announced the release of ChatGPT search capability. The previously-announced tool increases competition for GOOGL’s primary search business.  At the same time, COP raised its annual output forecast, citing improvements in operational efficiency. (COP output has increased 6% year-on-year to 1.92 million barrels per day. It now forecasts 1.94-1.95 million barrels per day for the 2024 average.)  Later, F announced it will halt production of its F-150 Lightning from November 18 until January 6, 2025.  (This includes previously-planned holiday plant shutdown weeks.) Although sales of the vehicle are up 86% year-on-year, they have not grown as much as the company anticipated. After the close, CNBC reported that BA and the Machinist Union reached a sweetened tentative agreement.  (The new dela would provide a 38% pay increase, versus the previous 35% offer that was rejected, over four years. With compounding, it would be a 44% increase by the end of the agreement. It also offers a $12k ratification bonus…or employees could choose a $7k bonus with a $5k contribution to their 401k.  However, the agreement does not include the return of a pension plan that was widely cited as the main reason for the two earlier rejections.  The union urged member to accept the offer and the vote will be Monday.)

In stock legal and governmental news, on Thursday, the European Commission told NVDA that the company needs the approval of the EU Antitrust Regulator before it can close the $700 million purchase of Run:ai.  The public statement said, “The transaction threatens to significantly affect competition in the markets where NVIDIA and Run:ai are active, which are likely to be at least European Economic Area-wide and therefore include the referring country Italy.”  Later, the US 6^th Circuit Court of Appeals heard arguments in a suit brought against the FCC.  In the hearing, brought by the Telecom industry, the court questioned FCC authority to reinstate “Net Neutrality” rules. (This is pretty novel position, considering that the FCC was the agency that did away with the rules in the first place back in 2017.) The current situation allows US telecom providers to charge different rates and set different speeds for internet traffic from AMZN, MSFT, AAPL, GOOGL, and META (among others)…basically as a way to get the tech giants to pay more.  There was no timeline provided for a ruling in the case.

Elsewhere, Russia fined GOOGL $20 decillion ($2 followed by 36 zeroes) which is 20 billion, trillion, trillion dollars.  The fine was for not paying earlier fines for blocking pro-Russian propaganda channels on YouTube.  After the close, a jury in a MO state court found that ABT and RBGLY (Reckitt Benckiser) were not responsible for debilitating intestinal disease for failing to warn the parents of the premature baby formula risks. (This is one of roughly 1,000 similar lawsuits in process in the US.)  At the same time, the SEC announced that JPM has agreed to pay $100 million to settle charges the bank misled customers who invested in “conduit” products. (This includes a $10 million fine and $90 million to be distributed to conduit product customers. It also included a censure, but no admission of liability.)  Meanwhile, a TX jury ordered TXT to pay $16 million to private CA company Rogerson Aircraft for giving the latter’s proprietary information to a rival parts supplier.

In miscellaneous news, on Thursday, oil spiked higher on an Axios report that Israeli intelligence had told it Iran is preparing to attack Israel from inside Iraqi territory.  In other oil news, the US Energy Information Administration reported that US production rose 1.5% to hit another record high in August of 13.4 million barrels per day.  (That topped the previous record of 13.31 million barrels per day in December 2023.)  At the same time, US natural gas production slowed 0.6% to 115.9 billion cubic feet in August.

In Middle East news, on Thursday, multiple outlets reported the Israeli military leaders say the IDF have achieved all of its objectives in both Gaza and Lebanon.  However, the reports also indicate that PM Netanyahu is unlikely to agree to end the campaigns and certainly not before the US election.  Instead, on Thursday, Netanyahu again said the fighting will continue until “absolute victory” and announced that Israel’s “supreme objective” is stopping Iran from getting nuclear weapons.  For its part, Hamas rejected the Egyptian-proposed 2-day ceasefire in exchange for an unspecified number of Israeli hostages.  In northern Israel, seven people (four of which were foreign workers) were killed by a “direct hit.” It was not definitive, but assumed, this resulted from a Hezbollah rocket either direct or after interception.  In Lebanon, Israeli strikes in the North and East of the country (near Baalbek) killed 45.

Overnight, Asian markets were mostly red with just three of the 12 exchanges above break-even.  Japan (-2.63%) was by far the biggest loser, while Hong Kong (+0.93%) led the gainers.  However, in Europe, we see green across the board at midday with all 14 bourses strongly green.  The CAC (+0.71%), DAX (+0.60%), and FTSE (+0.78%) lead the region higher in early afternoon trade.  In the US, as of 7:40 a.m., Futures are pointing toward a modest higher open.  The DIA implies a +0.40% open, the SPY is implying a +0.40% open, and the QQQ implies a +0.47% open at this hour.  At the same time, 10-Year bond yields are up to 4.295% and Oil (WTI) is up 1.89% to $70.57 per barrel in early trading.

The major economic news scheduled for Friday includes October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, and October Unemployment Rate (all at 8:30 a.m.), October S&P Global Mfg. PMI (9:45 a.m.), September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices (all at 10 a.m.).  The major earnings reports scheduled for before the open include AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W.  There are no earnings scheduled for after the close.

So far this morning, ACDVF, ARES, CAH, CBOE, CHTR, CHD, ENB, NMR, MD, SCGLY, TXNM, and WAT all reported beats on both the revenue and earnings lines. Meanwhile, CVX, D, XOM, NVT, PPL, TROW, and W missed on revenue while beating on earnings. On the other side, AMR, BTSG, and LYB beat on revenue while missing on earnings.  However, ARCB, GTLS, and MGA missed on both the top and bottom lines.

With that background, it looks like the market is modestly bullish early this morning. All three major index ETFs have gapped higher and are printing white-body, inside candles against Thursday’s big black candles. All of them are mostly body at this point. So, indecision is not an issue at least yet (ahead of data). With all three below their T-line after the rough session Thursday, the short-term trend is now bearish. However, the mid-term and longer-term trends are obviously still strongly Bullish in all three, as they still sit not far from all-time highs. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema), but QQQ is pushing that limit. In addition, the T2122 indicator is now just inside the oversold area. So, markets do have room to run either direction if traders can find momentum, but the Bulls have more slack to work with today. With regard to those 10 big dog tickers, eight of the 10 are in the green again this morning. As mentioned, AMZN (+7.26%) and INTC (+5.34%) lead the gains in premarket with AAPL (-1.73%) the laggard. AMZN has traded enough stock to even be leading in dollar-volume sold, although normal leader NVDA is close behind it. Once again, overall the premarket volume is light today. Don’t forget it’s Friday, so pay yourself and prepare for the weekend news cycle.

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 gave us some divergence between DIA and its broader index ETF peers.  SPY opened down 0.14%, DIA gapped down 0.42%, and QQQ opened up 0.05%.  At that point, SPY and QQQ started a long, slow, but steady rally that lasted until the end of the day.  During that last 30 minutes SPY and QQQ saw some profit-taking.  For its part, after the gap down, DIA rallied (more sharply than the others) to recross its gap by 10:15 a.m. and hitting the high of the day 15 minutes later.  From there, DIA gave us a long, slow, but steady selloff the rest of the day that took it back down into its gap area.  This action gave us white candles with significant wicks in all three major index ETFs.  SPY printed a white, Piercing Arrow, Spinning Top that gapped below and then closed back above its T-line (8ema).  DIA gave us a gap-down, white-bodied, Inverted Hammer candle that retested and failed its T-line from below.  Finally, QQQ printed a large-body white candle with wicks on both ends which retested and passed the test of its T-line from above. This happened on below-average volume in all three of the major index ETFs.

On the day, nine of the 10 sectors were in the red with Utilities (-1.60%) well out in front leading the way lower.  On the other side, Technology (+1.22%) was by far (by more than 1.4 percent) the strongest sector.  Meanwhile, SPY gained 0.16%, DIA lost 0.37%, and QQQ gained 0.96%.  VXX was down slightly to close at 52.48 and T2122 climbed just a little, but remains in the lower-end of its mid-range at 27.06. At the same time, 10-Year bond yields fell back to close at 4.256% while Oil (WTI) was just on the green side of flat to close at $67.49 per barrel. So, Tuesday was a divergent day where Tech drove the QQQ higher on the strength of AMD (+3.96%), META (+2.62%), and AVGO (+4.20%).  Meanwhile, SPY was little changed and poor DIA was dragged lower by bluebloods like HD (-1.94%), KO (-1.66%), and TRV (-1.47%).

The major economic news scheduled for Tuesday included Preliminary September Goods Trade Balance, which came in worse than expected at -$108.23 billion (versus a forecast of -$95.90 billion and the August reading of -$94.22 billion).  At the same time, Preliminary September Retail Inventories showed slower growth than the prior month at +0.1% (compared to August’s +0.5% value).  Later, the October Conference Board Consumer Confidence was much stronger than anticipated at 108.7 (versus a forecast of 99.5 and a September reading of 99.2).  Meanwhile, September JOLTS Job Openings were down (fewer open jobs) to 7.443 million (compared to a forecast of 7.980 million and August’s 7.861 million reading).  Then, after the close, API Weekly Crude Oil Stocks showed an unexpected drawdown of 0.573 million barrels (versus a predicted inventory build of 2.300 million barrels and the prior week’s 1.643-million-barrel inventory increase.)

After the close, AMD, ALHC, ALSN, GOOGL, BMRN, BXC, BXP, EXE, EIX, EXEL, EXR, FMC, GOOG, IEX, LBTYA, LFUS, MCY, MTH, MOD, MDLZ, QRVO, RUSHA, SNAP, SYK, UMBF, and V all reported beats on both the revenue and earnings lines.  Meanwhile, CAKE, CMG, CB, EQT, NGVT, NGD, PK, RSG, and UNM missed on the revenue line while beating on earnings.  On the other side, DVA, FE, RYI, and UIS beat on revenue while missing on earnings.  However, CZR, CHE, EA, FSLR, LSTR, OI, OKE, and WERN missed on both the top and bottom lines. (AMD disappointed with its forward guidance. However, GOOGL’s beat gave hope to all the big tech names as Ad revenue surged and the stock price went up almost 6% in after-hours trading.)

In stock news, on Tuesday, Reuters reported that VLKAF (Volkswagen) Audi division is in talks with a potential investor for its troubled Brussels plant.  (VLKAF announced in July it is considering closing the plant and laying off the 3,000 employees that work at that facility.)  At the same time, ADDYY (Adidas) announced that it saw strong growth in China during Q3 in contrast to rival brands.  The company said that as a result of demand, they have opened 200 new stores in smaller Chinese cities with a goal of getting to 300 stores by the end of year.  Later, Reuters reported that AVGO is working with OpenAI and TSM to create new AI chips.  (This was a relief for AVGO supporters that had been under pressure from fear that OpenAI would create competition for AVGO chips.)  At the same time, the Wall Street Journal reported that V is planning to lay off about 1,400 employees and contractors by the year end. Later, an SEC filing showed that Meme-stock influencer Keith Gill (Roaring Kitty) has liquidated his entire stake in CHWY.  This comes after he took a 6.6% ownership stake of the company in July.  (CHWY was down more than 10% in after-hours trading on the news.)

In stock legal and governmental news, on Tuesday, the news got worse for BA as the Dept. of Defense Office of Inspector General released a report alleging that the company overcharged the Air Force nearly 8,000% for soap dispensers and $1 million for a dozen spare parts.  Later, the US State Dept. approved the sale of $744 million of RTX-made medium-range air-to-air missiles to Denmark.  At the same time, MCD was sued in what is proposed to be a class-action lawsuit stemming from last week’s E.coli outbreak linked to onions on MCD’s Quarter Pounder burgers.  After the close, Reuters reported that BAC is in talks with the CFPB in an effort to settle the agency’s charges related to fraud and scams on the bank-owned Zelle payment app.  (The report said BAC is also considering litigation against the CFPB if a settlement can’t be reached.)

In miscellaneous news, on Tuesday, Reuters reported that sources tell it China is now considering approving $1.4 trillion in additional debt in the next few years, with money earmarked for reviving its economy.  Other news out of the same Chinese government meetings said President Xi urged provincial officials to pursue the reform initiatives that were identified for them.  Xi also “urged” those officials to meet their assigned social and economic targets.  Elsewhere, in Canada, Canadian deputy foreign minister Morrison told Parliament that Indian Home Affairs Minister Shah was the one who authorized a wave of violence (including homicide) while attempting to suppress Sikh activists on US soil. 

In Middle East news, on Tuesday, Hezbollah named cleric Naim Qassem as its new leader.  The Israeli Defense Minister responded by saying that it was a “Temporary appointment…not for long.”  In the streets, Isael conducted 150 airstrikes on Tuesday.  To the north, Israeli strikes killed 82 and wounded many times that number in Lebanon.  Further South, in Gaza, an IDF air attacks killed 110 with dozens more still missing as it collapsed a five-story residential building.

Overnight, Asian markets were almost red across the board.  Only Japan (+0.96%) was in the green, while Hong Kong (-1.55%), South Korea (-0.92%), and Australia (-0.83%) led the region lower.  In Europe, we see the same picture taking shape with only Norway (+0.46%) in the green at midday.  The CAC (-1.39%), DAX (-0.84%), and FTSE (-0.26%) lead the region lower in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed open.  The DIA implies a -0.20% open, the SPY is implying a +0.12% open, and the QQQ implies a +0.23% open at this hour.  At the same time, 10-Year bond yields are down sharply to 4.218% and Oil (WTI) is up 1% to $67.89 per barrel in early trading.

So far this morning, AER, ADP, AXTA, BLCO, BIIB, EAT, BG, CRTO, EXC, GRMN, GEHC, HUM, JKS, KEX, LKNCY, OMF, OPCH, OSK, PSN, REYN, TEL, TEX, TT, UMC, UTHR, VRSK, and XPO all reported beats on both the revenue and earnings lines.  Meanwhile, CHEF, KHC, and NI missed on revenue while beating on earnings. On the other side, ARCC, CWEN, GPN, GPI, NBIX, SITE, SW, and ZBH beat on revenue while missing on earnings.  However, CAT, CDW, DAN, LLY, MLM, OTIS, and SLGN missed on both the top and bottom lines.

The major economic news scheduled for Wednesday include October ADP Nonfarm Employment Change (8:15 a.m.), Preliminary Q3 PCE Prices, Preliminary Q3 GDP, Preliminary Q3 Price Index (all at 8:30 a.m.), September Pending Home Sales (10 a.m.), and EIA Weekly Crude Oil Inventories (10:30 a.m.).  The major earnings reports scheduled for before the open include ABBV, AER, ARCC, ADP, AVT, AXTA, SAN, BSAC, BLCO, BIIB, EAT, BG, CAT, CDW, CHEF, CLH, DAN, LLY, ENIC, EXC, FLEX, FTV, GRMN, GTES, GEHC, GSK, GPI, HES, HUM, ITW, JKS, KEX, KHC, DRS, MHO, MLM, NBIX, NI, OMF, OPCH, OSK, OTIS, PSN, REYN, SLGN, SITE, SW, SCL, TEL, TEX, TT, UMC, VRSK, VMC, XPO, and ZBH.  Then, after the close, ACHC, AFL, AEM, ALGT, ALL, AWK, AMGN, AR, ACGL, ACA, AXS, BHC, BECN, BIO, BKNG, CHRW, CVNA, CF, CMPR, CLX, CTSH, COIN, COLM, CODI, COMP, CACC, CW, DASH, EBAY, NVST, EQIX, EQR, ETSY, EG, FND, GEN, GDDY, GRBK, THG, HLF, HLI, HUBG, INVH, KMPR, KLAC, LPLA, MTW, MATX, META, MET, MGM, MSFT, MAA, MPWR, MUSA, MYRG, NXT, PGRE, CNXN, PSMT, PRU, PSA, HOOD, ROKU, RYAN, SCI, SFM, APXC, SBUX, SUM, TDOC, TWI, RIG, TTMI, TWLO, VTR, WTS, and WSC report.

In economic news later this week, on Thursday, we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, September Core PCE Price Index, September PCE Price Index, September Personal Spending, Q3 Employment Cost Index, October Chicago PMI, and the Fed Balance Sheet.  Finally, on Friday, October Average Hourly Earnings, October Nonfarm Payrolls, October Private Nonfarm Payrolls, October Participation Rate, October Unemployment Rate, September Construction Spending, October ISM Mfg. Employment, October ISM Mfg. PMI, October ISM Mfg. Employment, October ISM Mfg. Prices, and October S&P Global Mfg. PMI are reported.

In terms of earnings reports later this week, on Thursday, we hear from ALNY, MO, AME, BUD, APG, APTV, ARGX, ARW, AVNT, BALL, BBVA, BDC, BGC, OWL, BWA, BMY, CNQ, CVE, LNG, CI, CNK, CCO, CMS, CMCSAA, COP, CFR, DRVN, DNB, ETN, EME, ETR, NVRI, EL, GNRC, GIL, GPRE, DINO, HII, H, IDA, IDXX, NSIT, NSP, ICE, IP, IQV, ITRI, JHG, K, KIM, KTB, LAZ, LECO, LNC, LIN, HZO, MA, MRK, MIDD, NCLH, OTEX, OGN, PH, PATK, PBF, BTU, PTON, PHIN, PWR, REGN, RBLX, SABR, SN, SHEL, SIRI, SO. STLA, STM, TFX, UBER, UPBD, VAL, VRN, GWW, WEC, WEN, WCC, WTW, XEL, XYL, AES, LNT, AMZN, AMCR, AAPL, TEAM, CAR, CGAU, CNO, CTRA, DORM, EMN, EGO, ERIE, ICFI, IR, INTC, JNPR, MTZ, RGA, SEM, SKYW, SM, X, and VICI.  Finally, on Friday, AMR, ARCB, ARES, BTSG, CAH, CBOE, GTLS, CHTR, CVX, CHD, D, ENB, XOM, IMO, LYB, MGA, NVT, MD, PPL, SPG, TROW, TXNM, USM, WAT, and W report.

With that background, it looks like the market is undecided early this morning. QQQ gapped higher on the strength of GOOGL (+6.64%) earnings and despite the drag from AMD (-7.95%). However it has printed a Doji since that premarket gap. For their part, SPY and DIA opened closer to flat and have also printed indecisive candles in the early session. With QQQ and SPY above their T-line, the short-term trend remains tepidly bullish. The mid-term and longer-term trends are obviously still strongly Bullish in all three, as they all sit within striking distance of another all-time high. With regard to extension, none of the major index ETFs are too far extended from its T-line (8ema). In addition, the T2122 indicator remains at the bottom portion of its mid-range. So, markets do have room to run either direction if traders can find momentum, but the Bulls have just a little more slack to work with today. With regard to those 10 big dog tickers, six of the 10 are in the green again this morning. As mentioned, AMD is by far (by more than 7%) the anchor on that group while GOOGL is 4% out in front leading the gainers higher in premarket. GOOGL has also surpassed normal leader NVDA (-0.37%) in terms of leading dollar-volume trading. Once again, premarket volume is very light today.

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