Bulls Still in Control

On a bullish day, some afternoon volatility left the SPY (up 0.20%) and DIA (up 0.39%) closing at all-time highs.  The QQQ had a more indecisive day closing up 0.04%.  The VXX closed down again at 13.62, while the T2122 stepped back just below overbought to 75.07.  It seemed that markets generally took the second day of earnings and the Phase-One Trade Deal with China in stride. 

Speaking of the trade deal, details released Wed. point to China apparently committing to purchase an additional $200bil of good/services over the next two years, meaning roughly an additional $100bil in 2020.  That would be a massive increase over the past where the 2017 base against these gains was about $130bil/yr. total exports to China.  China also pledged to crack down on intellectual property theft. 

Time will tell if these materialize, or how this shakes out globally (purchases from the US, mean less from elsewhere and both have ripple effects), but it certainly appears to be a big win for the US on a headline level.  Of course, on the downside, tariffs on Chinese goods will remain in place for at least another 10 months before review again.

Beyond follow-up on trade deal details, earnings are now front and center for markets. Already this morning, MS posted a massive beat and had pre-markets soaring.

Thursday’s major economic news includes Dec. Retail Sales, Philly Fed Mfg. Index, and new Jobless Claims (all at 8:30 am), Business Inventories (10 am) as well as another Fed speaker.  Beyond MS, other major earnings reports include BK, BLK, CSX, KMI, SWKS, SYF, and TFC.

Overnight, Asian markets were mixed but mostly green.  In Europe, markets are also mixed, but mostly red, especially the FTSE, DAX, and CAC, so far in their day.  As of 7:30 am, once again U.S. futures are pointing to an open higher of between one-tenth and one-third of a percent at this point.

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Despite some push-back by the bears, the bulls maintained control on signing day for Phase-One of a China Trade deal.  This leaves at or very near of all-time highs across all major indices.  Over-extension and earnings remain the obvious risks.  However, the moves, while relentless, are not over-exuberant.  So, continue to trade with the trend, while employing some caution.  Always look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: ANGI, BLDR, VRTX, OTEX, LDOS, ALLE, ANET, ZAYO, TRIP, AMCX, OSTK, LYFT. 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

|607% in just 24 months |

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

Earnings and Deal Day Part 1

Markets had a somewhat volatile day that ended little changed.  The SPY ended the day down 0.15%, the DIA up 0.07% and the QQQ down 0.39%.  It seems that despite great beats by the big banks (C and JPM) and DAL in the pre-market, traders were leery of earnings season at the current market all-time highs.  There was also a fear that the phase one of the China trade agreement may disappoint markets as details come front and center Wednesday during the signing. 

The latter fear stemmed from Bloomberg reports that the existing tariffs are remaining in place and all provisions of the deal are already known by the public.  CNBC also reported that both sides understand that the US will not review the existing tariffs any sooner than 10 months after the phase one signing (i.e. after the election).  In addition, there is no agreed path toward eventual reduction of existing tariffs or even for new “phase two” talks.  So, the economic drag of the trade war on both economies is here for at least another year.  (Side note: Reports say the existing tariffs are costing the average American $800/year although details were not provided.)

In more cheery news, Amazon has lifted the prohibition on its Marketplace sellers using FedEx ground transport.  In addition, retail sales are coming in at 5% greater than 2018…which may read through to expectations of upcoming earnings reports.

Wednesday’s major economic news includes Dec. Core PPI and Jan. NY Empire Mfg. Index (both at 8:30 am), Oil Inventories (10:30 am) as well as two more Fed speakers.  Earnings reports before the open include BAC, GS, PNC, USB, CSX, TGT, and UNH. (GS beat and TGT missed so far this morning.)

Overnight, Asian markets were red across the board.  In Europe, markets are mixed, but mostly red so far in their day.  As of 7:30 am, once again U.S. futures are pointing to a flat open, just on either side of break-even at this point.

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Even on a rest day, the bulls have maintained control of the trend and we are within spitting distance of new highs.  However, over-extension and disappointment (over earnings or the partial trade deal) risks remain real.  Continue to use caution while still trading with the trend.  Look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: PCG, NKE, BMRN, MPLX, NXPI, DAR, HZNP, RS, OSTK, BLUE, CNQ. 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

|607% in just 24 months |

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

Banks Kick-Off Earnings Again

Once again, the markets gapped higher on Monday.  There was also follow-through as news came that the US is removing China from the “Currency Manipulators” list and this helped the bulls continue to run all day.  At the end of the day SPY was up 0.69% and QQQ up 1.16%, while the DIA was up only 0.27% (held down by UNH).  As you’d expect, the VXX fell to the extremely low value of 13.78 while T2122 climbed back just barely into the overbought region at 81.71.

In addition to the China news, two other stories made news on financial outlets Monday.  The first of these was that the US Budget Deficit topped $1 trillion in 2019.  This was a 17% increase from 2018 and led the National Debt to climb to $23.2 trillion.  The second story was that the Impeachment trial of President Trump is likely to start Tuesday, January 21.

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However, today (the current Tuesday) another earnings season kicks off as the big banks report before the open today.  As this process starts, FactSet is reporting that earnings are expected to have fallen 2% in the fourth quarter.  This would be the fourth straight quarter of reduced earnings.  Still, as always, the companies have sand-bagged their numbers by guiding down forecasts during last quarter’s reports. So, it’s anyone’s guess as to whether Mr. Market “goes with the flow” or “registers protest over the trend.”

Tuesday’s major economic news includes Dec. Core CPI (8:30 am) and Dec. Federal Budget Balance (2 pm) as well as another Fed speaker.  As mentioned above, C, JPM, WFC, DAL, and INFO all report before the open.

Overnight, Asian markets were mixed.  Europe is mixed but mostly red so far in their day.  As of 7:30 am, U.S. futures are pointing to a flat open, just on either side of break-even at this point.

Markets remain at their all-time highs, with the bulls in control of the trend.  However, over-extension remains a risk and earnings kick-off again today.  So, continue to use some caution while trading with the trend.  Look for opportunities, but don’t chase. Most importantly, remember to plan your trades, and trade your plans.  Take profits on a very regular basis, move your stops to protect yourself, and wait for the trade to come to you.   

Ed

Swing Trade Ideas for your consideration and watchlist: LHX, DAR, AMD, VRNT, INTC, MYL, UMPQ, KSU, TEL, AMCX, GRUB, BURL. 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

|607% in just 24 months |

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

New Week – New Highs?

Markets gapped higher again Friday.  However, they sold off steadily the remainder of the day (perhaps to avoid weekend headline risk).  While we closed up off the lows (and frankly still very near all-time highs), the SPY lost 0.29%, the DIA lost 0.46% and the QQQ lost 0.26%.  All three of the major indices printed Bearish Engulfing signals but did not fall back into the recent trading range that we broke out of Thursday.  Interestingly, the VXX fell again as well, to 14.12.  The T2122 also fell but remains in the mid-range at 44.62.

In a follow-up to last week’s main story, Iranians (mostly students) are protesting their own government after Iran publicly accepted the blame for shooting down the Ukrainian Passenger Jet.  Those protests turned violent overnight. President Trump made statements in support of the protesters and veiled threats against Iran cracking down on the protests.  He also threatened Iraq, saying they would lose their account at the New York Fed Bank if US troops are forced to leave Iraq.  (That account is used for processing Iraqi oil sales and to pay their government salaries and contracts.)

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This coming week we will see the signing of Phase One of the China trade deal Wednesday (only Vice Premier Li will attend from China, so President Trump may not take that victory lap yet).  The impeachment “trial” is also likely to start, if not finish this week. 

There is no major economic data or earnings reports on Monday. We’ll also see some more economic data starting Tuesday.  Finally, earnings season kicks back into gear again Tuesday with the big banks reporting.

Overnight, Asian markets were mixed, but mostly in all the green.  Europe is even more mixed with a split between red and green on their boards so far today.   As of 7:45 am, U.S. futures are pointing to a quarter to a third of a percent gap higher at this point.

Overall, markets remain at unprecedented heights and the bulls still control the trend.  However, over-extension remains a risk and we are just a day from truly starting a new earnings season.  So, all we can do is trade with the trend, look for opportunities, and use hedges.  Most importantly, remember to plan your trades, and trade your plans.  (Don’t let emotions jerk you around.) Take 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: ZS, ETSY, GRUB, PFE, BMRN, LHX, NIO, FTCH, ANGI, CGC. 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

|607% in just 24 months |

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 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. 

Favorite Charting Software

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.

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

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.

Favorite Charting Software

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.

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🎯 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.

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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

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

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