Bulls Keep On Running

The bulls followed up on Wednesday’s rally with a gap up on Thursday.  However, the rest of the day was indecisive.  Still, the SPY (+0.66%), DIA (+0.75%), and QQQ (+0.85%) each closed at a new all-time high close.  Among the drivers of the move was more relief from de-escalation of the US-Iran conflict and big moves by tech heavyweights AAPL (+2.1%) and AMD (+2.4%).  The VXX fell again to 14.19 and market breadth remains in the mid-range with the T2122 sitting at 66.67.

An important, under-reported story Wed. was significant changes the Trump Administration unveiled to the Environmental Protection Act. If enacted, these may have significant economic (and/or other) impact.  The first change is that there would no longer be any Federal review of construction projects that do not involve substantial federal funding.  Second, it would be much easier for all Federal agencies to approve infrastructure projects without studying or considering environmental or wildlife (endangered species) impacts.  While this technically covers a wide range of construction, the most impacted types would be road, bridge, tunnel, pipelines and telecom construction (including cell tower and 5G build-out).  There will be a 60-day comment period on the new policy proposals before they are made law by the administration.  So, expect a political fight on this one.

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Economic data continues to be strong as Weekly Jobless Claims again came in under expectation yesterday.  (214,000 versus 220,000 expected.)  However, the big news story of the day was not economic, but instead the crash (shootdown?) of the Ukrainian 737 in Tehran.  

Overnight, Asian markets were in all the green.  We also see green across the board in European markets so far.   As of 7:45 am, U.S. futures are pointing to a quarter to half a percent gap up again at this point.

Friday’s major economic news includes Dec. Average Hourly Earnings, Dec. Non-farm Payrolls, and Dec. Unemployment Rate (all at 8:30 am). There are no earnings reports on the day.

Once again, it appears the only thing the bulls fear is over-extension.  They’ve only wanted to hear good news for a long time now.  However, while very bullish “in the now,” this is also a risk factor, because it’s the unexpected shock that really moves markets dramatically.  So, all we can do is continue to be cautious, use hedges and follow the trend.  As always, you know my mantra, keep planning your trades, and trading your plans.  Taking profits along the way, move your stops to protect yourself, and wait for the trade to come to you.  

Ed

Sorry, but no Swing Trade Ideas for your consideration and watchlist on Friday (Pay Day). Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs we mention and talk about are not recommendations to buy or sell.

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

A Measured Response – No, Really It’s True

After a massive overnight recovery from the fear generated by Iranian retaliatory rocket attacks, markets rallied early Wednesday.  However, there was also a selloff when it was announced that President Trump would address the nation late morning.  Completely unexpectedly, the President adopted a relatively de-escalatory tone.  Markets rallied hard the rest of the morning on that surprisingly measured and responsible stance.

However, after lunch, markets chopped sideways the rest of the day.  The day ended off the highs, but the SPY gained 0.52%, the DIA gained 0.58% and the QQQ (which did close at a new all-time high close) gained 0.75%.  As you’d expect, the VXX was down again to a very low 14.80.  While this was a great day for bulls, there are still some concerns about this situation that should be kept in mind. 

Remember, in addition to claiming victory, the President did add more new sanctions and did threaten Iran again.  Second, Iran has not truly backed down and their replacement for the killed General Soleimani is essentially a clone, with the same geopolitical outlook, resources and international networks in place.  Third, after the President’s recent new deployments, the US has 60,000 troops in the Gulf.  This makes for a lot of chances on both sides for mistakes, rogue actions or local events to spiral larger.  Then, of course, we also have the fact that President Trump isn’t known for consistency, especially when it comes to being consistent with positions contrary to his own previous threats or bluster. 

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Finally, President Trump said he’d ask NATO to both: 1) pull out of the 2015 JCPOA deal (which he already pulled the US out of) and 2) get involved in military deterrence of Iran in the Persian Gulf.  However, as late as Tuesday both Germany and France had made statements in support of keeping the deal alive and on Wednesday (prior to Trump’s address) the UK’s PM told UK Parliament that the 2015 deal was the best and only way to create lasting peace in the middle east without a nuclear Iran.  So, NATO support of the President’s request or position seems quite unlikely.

The point is, while the situation seems better than was expected and all is well now, we are not out of the woods on this story yet.  More importantly, the ease at which the market has brushed off potential negatives such as the threat of war should give us pause…a reason to be cautious. 

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Thursday’s major economic news is limited to Weekly Jobless Claims (8:30 am) and three Fed speakers over the course of the morning.  There are no earnings reports on the day.

Overnight, Asian markets were in the green on hopes of middle-east de-escalation.  In Europe, markets are mostly green on the perceived ramp down in tensions.   As of 7:45 am, U.S. futures are pointing to a significant gap higher of between 0.4% and 0.6% across the major indices.

Once again, with any path to de-escalation open, it’s hard to bet against the bulls.  They’ve only wanted to hear good news for a long time now.  However, this is also a risk factor, because it is things Mr. Market doesn’t expect that causes big shocks.  So, all we can do is continue to be nimble, use hedges and/or limit exposure.  As always, you know my mantra, keep planning your trades, and trading your plans.  Taking profits along the way, move your stops to protect yourself, and wait for the trade to come to you. 

Ed

Swing Trade Ideas for your consideration and watchlist: INXN, NFLX, CL, LPX, CNC, BIDU, IGT, ZS, MIC, ULTA. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs we mention and talk about are not recommendations to buy or sell.

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Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

A Path To De-Escalation?

A pause took hold Tuesday as markets gapped a bit lower at the open and then indecisive trading reigned the rest of the day.  At day end, the SPY was down 0.28%, DIA down 0.43%, and the QQQ was flat at -0.01%.  T2122 fell back into its mid-range at 58.16 and even the VXX fell slightly to 15.01.

However, more important than the Tuesday session was the overnight story of the Iranian response to the US assassination of Iran’s top General.  Iranian state television report that they had fired tens of rockets/missiles at least two US bases in Iraq.  This response came hours after the funeral for that Iranian General, where 50 people were killed by a stampede among the hundreds of thousands of mourners chanting for revenge. 

Dow Jones Industrial Average Futures immediately fell over 400 points (1.5%), Oil prices spiked 4%, and Gold rose 2.1% upon news of the Iranian attack.  However, this seems to have been a very measured Iranian response, intended to open the door to de-escalation.  The reason I say this is that these rockets were fired at very large, sprawling bases that had already been under local rocket attacks.  The attacks were also forewarned, allowing the US to prepare.  Therefore, US casualties were less likely…and that is what happened, no US casualties.

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Taking that cue, so far President Trump has backed away from his threats, made no speech to the Nation and has not retaliated.  Perhaps as a result of this “de-escalation so far,” markets have fully recovered overnight. While this story will likely continue to drive news and keep unfolding, for now, US markets have stabilized.

Wednesday’s major economic news is limited to Dec. ADP Nonfarm Payroll (8:15 am) and Crude Oil Inventories (10:30 am).  However, earnings season is starting again with reports from STZ, LEN and WBA before the open.

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Overnight, Asian markets were in the red on the aftermath of the Iranian strike.  In Europe, markets are mixed, but mostly green on the perceived limited response from Iran.   As of 8:00 am, U.S. futures are pointing to flat to slightly higher open.

With a path to de-escalation open, it’s hard to bet against the bulls again.  For months they have seen the good in every event and ignored the bad.  However, anything can happen short-term.  So, all we can do is be nimble and/or use hedges or reduce exposure.  As was pointed out in last night’s e-learning session, even stops can’t protect you from gaps.  However, when you do trade, keep planning your trades, and trading your plans.  As always, keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you. 

Ed

Swing Trade Ideas for your consideration and watchlist: BYND, TWTR, FTCH, ETSY, ANET, BIDU, T, ACHC, GE. Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Bulls Have Moved On…Again

Markets gapped down Monday (on fears over the Iran mess), but the bulls would have none of it.  An all-day rally left all the major indices printing very strong Marubozu (shaved head) candles, closing on the highs.  While the SPY, DIA, and QQQ did not print new all-time highs, we are back within spitting distance of those marks.  Markets are also still not over-bought again (at least by the T2122 metric, which rose, but remains below 80).  Oil prices also stabilized, dipping after the true risk of Persian Gulf conflict was reweighed.

A US Marine Brigadier General (William Seely) sent a letter to the Iraqi Ministry of Defense implying that the US would be removing troops from Iraq, starting with the Green Zone.  However, after-hours the US Department of Defense said the letter was a mistake and denied that US troops will be leaving, but are instead just repositioning.  In the meantime, the US deployed the 82nd Airborne Division (about 3,500 men) and a 2,200 man Marine Rapid-Reaction Group back to the region and President Trump said we were not leaving unless Iraq pays us for building an airbase. Finally, the Pentagon rejected President Trump’s list of threatened 52 Iranian targets as many of them are illegal targets under International law (cultural and religious sites).

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In business news, American Airlines (AAL) reached an agreement with Boeing (BA) over the compensation BA will pay over the grounding of the 737Max.  Finally, Pier 1 Imports (PIR) reported it will close 450 stores (nearly half of their current stores).

Tuesday’s major economic news includes Import/Exports (8:30 am), and Nov. Factory Orders and Nov. Non-Mfg. PMI (both at 10 am).  There are no earnings reports Tuesday.

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Overnight, Asian markets were mixed but mostly green.  In Europe, markets are green across the board at this point.  As of 7:45 am, U.S. futures are sitting on either side of flat as the world seems to have now moved past the latest Persian Gulf crisis for the moment. Even oil is down about a percent at this point. 

The bulls great showing Monday tells us who is in-charge of markets. While anything can happen short-term, as we’ve said before, it’s hard to bet against the bulls in the longer-term. As always, keep planning your trades, trading your plans and keep taking profits along the way. Remember it is consistent singles and doubles that win the game…not occasional home runs. However, it may be time to reconsider any short or hedge positions put on due to the US-Iran situation.

Ed

Swing Trade Ideas for your consideration and watchlist: PTCT, CHGG, BLUE, VG, EXAS, TDOC, GGAL, WORK, GPS, M, ATVI, GRUB Trade smart, take profits along the way and trade your plan. Also, don’t forget to check for upcoming earnings. The stocks/etfs we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

More Fallout From Soleimani Killing

Markets gapped lower Friday on fears and consequences of the US assassination of a top Iranian General (on his way to meet with the Iraqi Prime Minister).  However, the major indices recovered a bit over the session.  At the end of the day, the SPY was down 0.76%, DIA down 0.80% and QQQ down 0.92%.  So, the bulls are not ready to run for cover and we remain near all-time highs.  However, the short-term trend is more sideways than bullish as of the end of the week.

It was a busy weekend of reactions from the US drone strike in Iraq.  Iran says they are no longer bound by the 2015 nuclear deal and are ramping up uranium enrichment.  Rockets were fired into the Green Zone, landing near the US Embassy in Iraq.  The Iraqi government has suspended coalition operations against ISIS.  In addition, the Iraqi Parliament (at the request of the Iraqi PM) has demanded that US troops leave their country and refrain from using Iraqi land, water or air space.  Finally, President Trump is threatening sanctions on Iraq (for kicking us out) and also threatened to strike 52 specific Iranian targets if Iran retaliates…and has deployed thousands more US troops to the area in order to back up that threat. 

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While market impacts over this still-unfolding story are unsure at this point, it would seem likely that oil markets will be unsettled by the threat of war in the Persian Gulf.  (Brent hit $70 today.) Typically, after a middle-eastern crisis, safety plays (Gold and Bonds) tend to fade and stocks gain after an initial reaction.  However, oil prices tend to remain elevated for longer periods.  An interesting non-US fallout is that the Saudi Aramco stock price fell nearly two percent Sunday over fears of Iranian reprisal attacks against Saudi Arabia. 

Monday’s major economic news is limited to Dec. Services PMI (9:45 am).  The only earnings report of note Monday is STT. However, there may be news out of Congress (either over limiting President’s Trumps War Powers toward Iran or on the Impeachment).

In other business news, BA has found another potential design/wiring flaw in their 737Max. Just like the software flaw that caused the crashes, a December audit found that Boeing knew of this problem, but had not reported it to the FAA.

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Overnight, Asian markets were mixed but mostly red on the news out of Iraq.  In Europe, markets are also mixed but mostly red at this point.  As of 7:30 am, U.S. futures are down sharply (greater than 1%) following Thursday’s stellar start to the year.  

The bulls were off to a great start on January 2nd.  However, the killing of Iran’s top general has thrown the world into turmoil again.  It’s hard to bet against the bulls in the longer-term.  However, anything can happen short-term.  So, all we can do is be nimble, add hedges or get flat until things settle.  Continue to plan your trades, and trade your plans.  As always, keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you. 

Ed

Swing Trade Ideas for your consideration and watchlist: CTST, LB, NIO, NUAN, WDAY, TWLO, GE, ROKU, CGC, SHW, XPO. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

US vs. Iran Takes Center Stage

In economic news Thursday, the biggest story of the day came prior to the US market open.  The Chinese Central Bank lowered the amount of capital Chinese Banks must hold.  This move will inject between $800 billion and $1 trillion into the Chinese economy, with world markets hoping that stimulus will cause a world-wide rebound.  Thus we got a gap up.

So, Markets gapped higher to start the new year.  This was met with sideways grind until the bulls kicked it into gear again after 2 pm.  There were significant surges about 2:30 pm and again at 3:50 pm.  The net result was that the SPY closed up 0.94%, DIA up 1.23% and QQQ up 1.67%…all closing at new all-time high closes.  This happened on above-average volume.  As you’d expect, the VXX fell dramatically as well, down to 14.51.  There simply is no fear in this market.

Overnight last night, the potentially most significant story of the day came out of Iraq.  President Trump apparently ordered the targeted killing of Iran’s top military General, while he was in Iraq.  (Akin to some other country killing the Chairman of the US Joint Chiefs of Staff.)  This is the second US airstrike in Iraq targeting Iran or Iranian allies in the last couple of days.  Iran is vowing revenge, the US State Department has ordered Americans out of Iraq and Iraqis are, understandably, not pleased with US actions or the prospect of another war. 

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This action may betray US administration policy.  Obviously it has the potential to spiral into another middle eastern War for the US. (This is conjecture, but based on forward-positioning of tens of thousands of US Troops into Saudi Arabia in recent months, Administration actions against Iran since Trump took office, and the fact that no sitting US President has lost an election during wartime…it seems plausible.)  In any event, Dow futures dropped 350 points on this news overnight.  Oil prices also spiked four percent.

Friday’s major economic news includes Dev. ISM Mfg. PMI (10 am), Crude Oil Inventories (11 am), and a couple of Fed speakers in the afternoon.  The only earnings report of note is LW.

Overnight, Asian markets were mixed but mostly red on the news out of Iraq.  In Europe, markets are also mixed but mostly red at this point.  As of 7:30 am, U.S. futures are down sharply (greater than 1%) following Thursday’s stellar start to the year.  

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The year was off to a great start and the bulls seem to be focusing on optimism over a trade deal with China and potential for some recovery based on Chinese economic stimulus.  However, this military situation with Iran now takes center stage and will bring fear and uncertainty back into markets.  I had intended to say that over-extension and the unknown are the only things to fear early this year.  However, at least one of those unknowns now has a name…Iran.

With that said, we cannot predict geopolitics, US politics or market reactions.  All we can do is add hedges or get flat until things settle.  So, continue to plan your trades, and trade your plans.  Don’t chase the new year rally.  Trade charts you have analyzed and chosen to meet your criteria.  As always, keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you. 

Ed

Swing Trade Ideas for your consideration and watchlist: AMD, GE, TWLO, IEF, MPLX, INTC, CSCO, NKE, INFO, CGC, VXX. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Bulls Have the Momentum

Markets took a rest Friday with gaps higher across the board, met with a fade of the gap selling.  The end result was a flat day with the SPY (down 0.02%) and QQQ (down 0.008%) on the red side of flat and the DIA (up 0.09%) just on the green side of flat. However, this still leaves markets right at all-time highs.  It’s worth noting that volumes were near average across all indices. 

For reference, this was the fifth straight week of gains as Santa Claus continues his rally.  Interestingly, the VXX climbed 2% Friday to a still-low 15.23.  In addition, T2122 fell out of the overbought territory, down to 73.04.

Over the weekend, there was no major news.  North Korea apparently did not follow through on its threatened “Christmas Present for the US.” However, the US did attack apparently Iranian-aligned militias in both Iraq and Syria.  Other than that, there was just a now-normal church shooting and knife attack on a Hanukkah celebration. So, just a standard, low-key weekend…nothing to rile markets

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Monday’s major economic news includes Trade Balance and Auto Inventories (8:30 am), Dec. Chicago PMI (9:45 am), and Nov. Pending Home Sales (10 am).  With another holiday upon us, again this week there are no major earnings reports.

Overnight, Asian markets were mixed.  In Europe, markets are all in the red at this point.  As of 7:30 am, U.S. futures are flat, sitting on either side of Friday’s closing value.

Favorite Charting Software

All-in-all, we are wrapping up another great year for stocks as markets have gained close to 30%, despite trade fears, on the back of three Fed cuts (even with a strong domestic economy).  With those gains in their pocket, it is doubtful bulls will be willing to allow any of their profits to evaporate in the last two days of the year.  So, the bulls have both the momentum and reason to defend the highs the next couple days. 

At this point, it seems over-extension and the unknown are the only things to fear early this week.  With that said, remember that volumes will likely continue to be light as many traders take more time off for the holidays.  So, continue to plan your trades, and trade your plans.  Don’t chase (there will always be another trade, I promise), keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you.

Ed

Swing Trade Ideas for your consideration and watchlist: FTCH, PSX, BX, KO, MA, CPB. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

China Trying to Help Santa

Friday was an indecisive day at the highs as the SPY closed just on the red side of flat, the DIA dead flat, and the QQQ posted a 0.40% gain.  This gave the QQQ another new all-time high close on the strength of its gap higher at the open.  Beyond the open, all three major indices printed Doji-type candles on the day.  The VXX did gain 1.21% but remains at historical lows as fear does not seem to exist in markets now. 

In US news this weekend Congress approved and President Trump signed the new spending bill to prevent a government shutdown.  This bill raised spending to $1.4 Trillion and in the process eliminated taxes used to pay for some of the ACA (Obamacare) programs.  It also avoids the possibility of another government shutdown until at least Sept. 30 2020.  (However, it’s hard to imagine anyone allowing a government shutdown a week before any election, let alone a Presidential election.)

In International news, China announced that next year it will reduce its tariffs on 144 new products (706 products were already in this program in 2019).  This means a total of 850 products will be charged import tariffs below the WTO “most-favored-nation” tariff rates.  Crucial to President Trump this will include Frozen Pork. However, it should be noted that we are talking only a 4% cut (from 12% to 8%).  So, the impact on demand is unknown.  However, it is another trade olive branch.

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Monday’s major economic news is limited to Nov. Core Durable Goods (7:30 am) and Nov. New Home Sales (10 am).  There are no significant earnings reports slated for the entire week.

Overnight, Asian markets were mixed but mostly green.  In Europe, markets are also mixed at this point.  As of 7:30 am, U.S. futures are pointing toward a quarter-percent gap higher at the open.

Favorite Charting Software

The bulls seem to have cleared a path for Santa to continue his rally into year-end.  The Fed continues to quietly pump tens of billions of dollars of liquidity into markets daily through QE.  Meanwhile, a Phase-one Trade Deal seems done, earnings are out of the way and markets are ignoring impeachment.  So, at this point, it seems over-extension and the unknown are the only things to fear.  

With that said, remember that volumes will be light this week as most traders take time off for the holidays.  Continue to plan your trades, and trade your plans.  Don’t chase (there will be another trade, I promise), keep taking profits along the way, move your stops to protect yourself and wait for the trade to come to you. 

Ed

Sorry, but no Swing Trade Ideas this week. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Slow and Steady Rise

The bulls pushed markets steadily higher all day Thursday.  All three major indices printed new all-time high closes with the SPY up 0.41%, the DIA up 0.44%, and the QQQ up 0.63%.  This move was made on roughly average volume and good breadth as T2122 remains at the 84 level.  Meanwhile, the VXX fell again to 14.86 as there is no fear at all in stock markets now. 

Economic data was mixed on Thursday as Jobless claims fell, but fell less than expected.  In addition, the Philly Fed Mfg. Index was much lower than expected.  However, MU, CAG, and DRI all posted strong earnings before the session. 

That said, the main news story of the day was impeachment again.  Markets seem to have discounted it, probably seeing it as a stalemate that can do little economic harm.  The Democrats got an indictment, but the Republicans refuse to recognize those charges and intend to acquit the President regardless of evidence/testimony.  The only question remaining seems to be what the January Senate “trial” will look like.  Regardless, the market has not taken this as bad news, at least as things stand now.

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After hours Thursday NKE posted beats on both the top and bottom lines.  Friday’s major economic news includes Q3 GDP (8:30 am) and Michigan Consumer Sentiment (10 am).  The only major earning report on the day is KMX, which reported a miss on earnings but a beat on sales already this morning.

Thursday’s major economic news includes Weekly Jobless Claims and the Dec. Philly Fed Mfg. Index (both at 8:30 am) and Nov. Existing Home Sales (10 am).  Earnings before the open include ACN (beat on both lines), CAG (beat on both lines), and DRI (beat on earnings, missed on revenue).  Meanwhile, NKE reports after the close.

Overnight, Asian markets were mixed, with Hong Kong a bit higher while the others were flat or in the red.  In Europe, markets are also mixed at this point.  As of 7:30 am, U.S. futures are just on the green side of flat all pointing to less than a tenth of a percent gain at the open.

Favorite Charting Software

Fed rates remain paused (and heavy QE is underway).  A phase-one Trade Deal also seems in hand and there are no major earnings or news events souring moods at this point.  So, the bulls continue to have the momentum heading toward the year-end holidays.  The only fly in the ointment now is fear of over-extension and the unknown. As I’ve said (continuously) continue to plan your trades, and trade your plans.  Keep taking profits without being too greedy, move your stops to protect yourself and wait for the trade to come to you (don’t chase).   

Ed

Sorry, but no Swing Trade Ideas for your watchlist on Friday. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Impeachment, Healthcare, and MU

Once again Wednesday, markets made a small gap higher only to fade the gap in a small range.  The SPY (by 2 cents) and QQQ (by 16 cents) both eked out new all-time high closes again while the DIA closed down just 0.07% from its own all-time high close.  This action the last two days is certainly a consolidation and it does look a little bit “toppy.”  However, the trend remains bullish and breadth continues with T2122 now at 84.39, which is barely in overbought territory.

After hours MU beat estimates on both the top and bottom lines.  It also reported that it had now received all required licenses for supplying Huawei. This had been a massive overhang for MU, because the Chinese company is Micron’s largest customer.

Also, a federal appeals court ruled in favor of a petition supported by the Trump Administration.  They told a lower court that the “individual mandate” of the Affordable Care Act (Obamacare) was unconstitutional.  However, instead of striking down the entire law themselves, they ordered the original lower court to consider whether or not the whole Act, including coverage for pre-existing conditions, should be killed.  This “half a loaf” ruling virtually guarantees the case will be appealed to the Supreme Court (maybe by both sides) and is unlikely to be decided before the 2020 election.  In turn, this also means Healthcare and Health Insurance will be political hot topics again and that the longer-term Insurance industry outlook is likely to remain in doubt for at least another year.

$50.00 discount with code: Privilege

However, the biggest overnight news story was impeachment.  After another day of alternate narrative (reality?), the House voted to impeach President Trump on both counts (Abuse of Power and Obstructing Congress).  The next step will be to send the indictments to the Senate for trial.  Luckily for the President, Republicans have flat out stated they don’t intend to conduct a fair trial (as constitutionally mandated).  Instead, they say they intend to simply acquit the President of all charges. And they have plenty of votes to do just that since conviction requires a supermajority. To me, the interesting question will be Chief Justice Robert’s (who will preside) position on the Senate process and the idea of declaring a verdict before the charges or evidence is even delivered.

Thursday’s major economic news includes Weekly Jobless Claims and the Dec. Philly Fed Mfg. Index (both at 8:30 am) and Nov. Existing Home Sales (10 am).  Earnings before the open include ACN (beat on both lines), CAG (beat on both lines), and DRI (beat on earnings, missed on revenue).  Meanwhile, NKE reports after the close.

Overnight, Asian markets were all slightly in the red.  In Europe, markets are mixed at this point.  And as of 7:30 am, U.S. futures are pointing toward another slight gap higher of between 1/10th and 1/4th percent.

Favorite Charting Software

With Fed rates on pause (and heavy QE underway), a phase one Trade Deal in hand, and earnings out of the way, there doesn’t seem to be many obstacles in the bull’s path.  Despite this, the rally has been on pause for a couple of days on consolidation.  All we can do is continue to trade the chart we get and focus on the swings.  So, continue to work the cliché…plan your trades, and trade your plans.  Keep taking profits without being too greedy, move your stops to protect yourself and wait for the trade to come to you (don’t chase).   

Ed

Swing Trade Ideas for your watchlist and consideration: NEO, PINC, THO, SKX, TWTR, CREE, SPLK, DXC, WCG, VXX. Trade smart, take profits along the way and trade your plan. Also, do not forget to check for upcoming earnings. Stocks we mention and talk about are not recommendations to buy or sell.

SMS text alerts and reminders?👈

Check out our newest YouTube videos👈

🎯 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.

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

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