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.

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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.

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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

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.

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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.

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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.

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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.

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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

Slow and Steady Santa Rally

Markets gapped slightly higher again Tuesday, then they proceeded to fade and end the day flat, if mildly in the green.  Still, as a result, all three major indices eked out a new all-time high close on indecisive candles.  The bottom line is that while the bulls maintain control, they do not show great enthusiasm. 

After hours Tuesday, FEDX missed earnings estimates and lowered their 2020 guidance.  This may reflect the feud with Amazon although they also blamed the impacts of China tariffs.  That said, it may provide some read-through to general economic activity.

Overnight the Auto industry saw a couple deals.  Fiat Chrysler and Peugeot signed a binding merger agreement.  This will create the world’s fourth largest auto company.  In addition, Isuzu bought Volvo’s small truck division.

Early this morning, the Mortgage Bankers Association reported that mortgage applications fell 5% last week as rates flattened out (stopped falling).  However, that number of applications remains 65% higher that the same week in 2018.  In addition, both GIS and CTAS reported a quarterly beat with revenues in-line with expectations.

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The only major economic news for Wednesday are Oil Inventories (10:30 am).  However, there will also be the House Impeachment vote (9 am), but that is not likely to be a big market-mover.  The only earnings of note after the close are from MU.

Asian markets were in the green overnight.  In Europe, markets are mixed, major labor strikes going on in the UK (Heath Service workers) and France (Transport workers).  As of 7:30 am, U.S. futures are again mixed on either side of flat.

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The Santa rally remains in place.  However, we are not seeing a raging bull run, just a drift higher at the moment. This is not necessarily bad, because it slows the rate at which we get over-extended. Despite the optimism, remember that markets move in a zig-zag motion.  So, the next pullback is not an “if” question, but rather a “when” question. Keep taking profits, moving stops, and trade your plans while we enjoy the Santa sleigh ride. 

Ed

Swing Trade Ideas for your watchlist and consideration: ALLK, NKTR, TGT, CLR, FTCH, GT, KBH, WLL, LYB, PSX, IMMU, CHGG. 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

FDEX, Brexit, and China

Markets gapped higher and were volatile on the day with all three major indices ending at all-time high closes.  (SPY up 0.69%, DIA up 0.34%, and QQQ up 1.00%.) However, the SPY printed an indecisive Doji and the DIA printed a Shooting Star (or at least Gravestone Doji) type candle.  The bottom line is that while the bulls clearly have control, there are some warning signs.  In addition, T2122 is not in the overbought area at 83.46.

Among the major business news on Monday was that BA will halt 737 Max production in January.  This comes due to the delays in FAA recertification, the loss of new sales and cancellations of existing orders have been mounting.  For example, LUV (the largest US customer for 737 Max aircraft) canceled another month of 737 Max flights (300 per day), pushing the earliest they will fly those planes out again until at least April.

Another story was that the fight between FEDX and AMZN has heated up again.  It seems Amazon announced it will no longer permit Amazon Marketplace Sellers to use FEDX for ground deliveries, effective immediately.  In addition, AMZN has announced they will launch their own air delivery service, including 50 aircraft and an air delivery hub opening in Kentucky during 2021.

Overnight in the UK, British press reports that PM Boris Johnson is adding a clause to his Brexit Bill (which now has plenty of votes to pass).  The new clause explicitly rules out any extension of the transition period (the post-breakup period when trade deal was to be negotiated). This means the EU-UK trade deal must be negotiated, written and passed by both sides within 11 months.  While this sounds reasonable, it took the parties 3+ years just to agree to terms of the break-up and the trade deal has always been seen to be the much more complicated task.  The UK Pound fell one and a quarter percent on the news.

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More China trade deal details also came from China overnight.  It seems that part of their additional “Ag purchases” will be in the form of ethanol.  They will also reclassify all trade with Hong Kong to be part of the Chinese portion of the phase one deal.  (This Hong Kong move immediately wipes out $10 billion of their additional $40 billion in purchases from the US.)

The major economic news for Tuesday includes Nov. Building Permits and Nov. Housing Starts (both at 8:30 am), Nov. Industrial Production (9:15 am), and JOLTS (10 am).  The only earnings of note are CTAS and FDX, both after the close.

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Overnight, Asian markets were green.  In Europe, markets are mixed, but mostly in the red on the new hard EU-UK trade deal deadline.  As of 7:30 am, U.S. futures are mixed on either side of flat.  

The Santa Claus rally into year-end sure seems like a high probability.  However, we all know the market psyche is fragile and that we worry about extension at these highs.  All we can do is trade the market we are given and focus on short-term swings.  We all know market move in zigs and zags.  So, continue to take profits, move stops, plan your trades, and trade your plans. 

Ed

Swing Trade Ideas for your watchlist and consideration: CTXS, FIVN, CROX, WCG, ENBL, WWE, GRUB. 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

Small-Group Coaching

NWL Puts up 37.8 for us, KO Calls up 8% and we bought a little VXX today as well as CHGG. I know everyone wants a Santa Clause rally and we may or may not get one, you just never know.

But I do know if we stay consistent with our strategies and listen to the charts we can make our own Christmas.

Check it out Ed Carter will be hosting a small group (10 traders only) coaching class on December 28, 2019. Ed also asked if I would explain the steps I plan to take to double my “Road To Wealth” Account! Of Course, I said yes. Click Here to see More

Like I said only (10 traders max) 3 spots left, we are very serious about this. We want to keep it small so we can make sure you completely understand what we teach. Only 3 Spots Left

Rick Saddler

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SMS text alerts and reminders?👈

Check out our newest 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

Lighthizer’s Trade Triple

Markets were indecisive Friday, as details and implications of the first phase of a US-China Trade Deal and the strong Brexit-affirming majority in the UK were being digested.  The SPY and DIA closed up 0.06% on Doji candles, while the QQQ closed up 0.33% on a Spinning Top candle.  In perhaps an outsized move, the VXX closed down 4.14% as a major source of risk was removed as an overhang.  T2122 fell back into the mid-range at 63.43.

Over the weekend, trade negotiator Robert Lighthizer made a lot of news.  In the first set of stories, Lighthizer acknowledged a series of concessions on the USMCA deal given not to Mexico and Canada directly, but to US Democrats.  To gain passage of the deal, USMCA now includes protections for labor, the environment and excludes some industry-specific prohibitions such as the Pharmaceutical Industry wanted to prevent cross-border drug purchases.

In the second set of articles, he gave more details on the Phase-One Trade Deal with China.  He said that while tariffs will be rolled back from 15% to 7.5% on $120 billion in Chinese-made goods, but that the 25% tariff on $250 billion in goods will remain.  Of course, all new (planned) tariffs were canceled.  Perhaps more interestingly, he also claimed the deal would result in an $80 billion increase (to $200 billion) in exports to China over two years.  However, he also said Chinese purchases of US Ag products would be $16 billion (not the $50 billion President Trump claimed Friday). Lighthizer said that plans are to sign the deal during the first week of January.

Lighthizer’s finale for the week was to break the WTO quorum by stopping the appointment of replacement members.  This essentially means the WTO is paralyzed and can no longer rule on trade disputes.  This gives every country the ability to do whatever they want on trade.  And with the US being the biggest economy and major superpower, we can continue to pursue President Trump’s protectionist/confrontational policies without any legal pushback.

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The major economic news for Monday includes Dec. NY Empire Mfg. Index (8:30 am) as well as Dec. Mfg. PMI and Dec. Services PMI (both at 9:45 am).  There are no earnings scheduled for today.  It is worth noting that Sunday night BA reported it was close to making a decision to either temporarily halt or completely discontinue production of the 737 Max.  It seems no FAA approval and order cancellations have seriously impacted that plane’s viability at least in the short-term.

Overnight, Asian markets were mixed and there remains uncertainty over the actual terms of the US-China Trade deal.  In Europe, markets are all bullish, with the FTSE up 2.25% (still flying the election is out of the way).  As of 7:30 am, U.S. futures are pointing to a gap higher of between a quarter percent (DIA) and half a percent (SPY and QQQ).

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The major economic news Friday includes Nov. Core Retail Sales (8:30 am) and Business Inventories (10 am).  There are no major earnings reports on the day.  

Overnight, Asian markets were mixed.  In Europe, markets are all bullish, with the FTSE up 2.25% (still flying the election is out of the way).  As of 7:30 am, U.S. futures are pointing to a gap higher of between a quarter percent (DIA) and half a percent (SPY and QQQ).

Impeachment will make news this week. However, with Senate Republicans not even pretending they’ll conduct a real trial, that story is unlikely to have any market impact.  So, with the Fed on hold and Phase One of a Trade deal seemingly done, a Santa Claus rally into year-end sure seems like a high probability.  We should keep in mind that we’re always just one angry tweet, comment, or unexpected news item from a pullback.  So, just remember we are at all-time highs and will likely be extended again soon.  Trade the chart we’re given, but don’t expect the trend to last forever.  We all know market move in zigs and zags.  Continue to take profits, move stops, plan your trades, and trade your plans. 

Ed

Swing Trade Ideas for your watchlist and consideration: BLUE, GGAL, AMRN, FTCH, AAPL, CHGG, PG, WU, FSK, KO, LOW, BURL, MLNX. 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

Partial Deal Done…Mostly

Markets ran higher at the open Thursday on a Presidential tweet touting that a phase one trade deal with China is close.  During the day additional leaks claimed it was a “done deal.”  As we should have expected with this story, at the end of the day it was confirmed that a phase-one deal was “done”…except that President Trump had not signed off on it yet.

The net result was that the bulls ran strongly most of the day.  The SPY ended up 0.87%, the DIA up 0.80%, and the QQQ up 0.75% leading to new all-time high closes in all three major indices.  This caused the VXX closed down sharply -5.92%.  Meanwhile, T2122 is inching back toward the over-bought area, now at 78.98.

After hours the President did finally sign-off on the phase-one partial deal, but that while terms have been settled the legal text of the agreement has not yet been written.  (Soooo…it’s done, but not done, close but not quite.)  At any rate, it is being reported that new tariffs are off the table, existing tariffs will be rolled back about 50%. In exchange, the Chinese have agreed to buy $40 billion in US goods.  (This includes the $24 billion/year in Ag products they had been purchasing before this trade war plus an additional $16 billion in other goods.  For reference, the US imports $540 billion/year in goods from China and prior to the trade war China imported $120 billion/year from the US. So, it’s not exactly a major change.  Nonetheless, it will be claimed as a victory and markets are likely to continue their run on this news.

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In other news, Congress agreed to a “deal in principle” for a $1.37 Trillion spending bill to avoid a Government shutdown.  Federal funding will run out on Dec. 20 if a deal is not passed and signed.  This basically adds another $100 billion to the budget, but significantly, it does not back-fill the money President Trump unilaterally took from the military to pay for beginning construction on his border wall.  So, there is no word yet on if the President will sign the bill agreed on by the Senate and Congress.

In the UK, Boris Johnson has won a very comfortable majority in Parliament. (The largest majority since 1987.)  This means Johnson will remain PM, no longer need a coalition and that his Brexit plan has the votes needed for approval.  Presumably, this means the UK will leave the EU in January.  The British Pound surged on this outcome.

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The major economic news Friday includes Nov. Core Retail Sales (8:30 am) and Business Inventories (10 am).  There are no major earnings reports on the day.  

Overnight, Asian markets were all in the green.  In Europe, markets are also all bullish.  As of 6:30 am, U.S. futures are pointing to a half percent gap higher.

Impeachment remains the main domestic story, but (purely coincidentally I’m sure) the partial phase-on trade deal agreement will overshadow this for markets.  With that overhang out of the way and no economic news Friday, the bulls will likely keep running to the upside.  The temptation will be to get caught up in chasing this surge.  Just remember we are at all-time highs and will be extended again soon.  So, trade the chart we are presented, but don’t expect it to last forever.  We all know market move in zig-zags.  Continue to take profits, move stops, plan your trades, and trade your plans. 

Ed

No Swing Trade Ideas for 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

Still Waiting on China News

Markets drifted again Wednesday ending flat in the SPY and DIA, while the QQQ gained half a percent.  This happened on below-average volume.  At the same time, the VXX gained fell 2.33% and T2122 remains in the mid-range at 66.83. So, while still very near all-time highs, markets are drifting this week as we wait on the next news on a potential phase-one China trade deal.

In the news, as expected, the Fed left rates unchanged and again said it would take a major shock before they raised rates.  However, there was no more news on the China Trade deal.  Even so, more talking heads and CEOs say they expect a phase one deal prior to prevent any new tariffs on China.  The FAA also said that 737 Max recertification will not be completed until sometime in 2020.  (The latter hit BA hard at the open, but it recovered all day.

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The major economic news Thursday includes Nov. Core PPI and Weekly Jobless Claims (both at 8:30 am).  The only earnings of note are ADBE, AVGO, COST, and ORCL, all after the close.  However, just as earlier in the week, all of this is likely to be overshadowed as we inch closer to the Dec. 15 “New Tariffs on China” deadline.

Overnight, Asian markets were all in the green, but wide-ranging (NIKKEI up 0.14%, but Hong Kong +1.31%).  In Europe, markets are mixed, but most are green.  As of 7:30 am, U.S. futures are just on the green side of flat.

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Impeachment (and related distractions) remain the main domestic story. In Europe, they are waiting on the outcome of today’s UK election. And the whole world continues waiting on the next twist in the China Trade War. So, markets may drift even more today. However, no matter what chart we get, that’s the market we have to trade.  Continue to take profits, move stops, plan your trades, and trade your plans. 

Ed

Swing Trade Ideas for your watchlist and consideration. GOLD, LDOS, AMKR, LRCX, GPK, DHI, RMD, LOGM, LYFT, XLNX, WUBA. 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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