Markets gapped higher at the open and ran higher the first hour Friday on better than expected Sept. Retail Sales.  However, a mid-morning selloff led to a sideways grind that lasted until 3pm, when the floor fell out from underneath the indices.  That late-day selling left all 3 major indices with higher wicks and ugly black candles (although the DIA managed to remain a Gravestone Doji).  On the day, SPY ended down 0.06%, QQQ down 0.55%, and DIA up 0.33%.  The VXX was flat at 22.27 and T2122 remains just inside the overbought territory at 81.48.  10-year bond yields rose to 0.749% and Oil (WTI) fell slightly to $40.78/barrel.

On the stimulus front, on Friday House Speaker Pelosi told other Democratic leaders that the 2 sides remain far apart on several issues.  These are funding for state/local governments, tax breaks for working families, child care funding, and the liability waiver that Republicans want for businesses.  Meanwhile, Senate Majority Leader McConnell insists the two sides are negotiating at 4 times the level the Senate GOP will accept and on Saturday said he’s proceeding with votes on a $500 billion PPP Small Business loan/grant bill on Tuesday and Wednesday. In response, on Sunday, Speaker Pelosi set a Tuesday deadline for a deal prior to the election.

On Sunday AAL said they intend to return to the use of the BA 737 Max in December.  Then, early Monday, COP said it will acquire driller CXO for $9.7 billion.  In economic news, China also announced that its economy grew 4.9% in Q3, which brings YTD growth up to +0.7% versus 2019.  However, in the Middle East, the IMF is forecasting a 4.1% economic contraction and oil prices to remain in the $40-$50/barrel range through 2021

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,388,013 confirmed cases and 224,732 deaths.  The 7-day average daily new case count rose again to 56,322/day, while the lagging average of deaths remains relatively flat at 718/day.  21 states reported a record number of new cases at least once in the last week.  At the moment, 38 states are reporting new case numbers growing by more than 5% with only 2 states trending down and the country as a whole has seen a 16% increase in cases in the last week. 

Globally, the numbers rose to 40,348,289 confirmed cases and the confirmed deaths are now at 1,119,305 deaths.  Europe has overtaken the US to become the area with the highest average daily new case count (to be fair, Europe including Russia does have nearly 2.5 times the US population).  This comes as the WHO is warning that many major cities across Europe may reach ICU bed capacity in the next couple of weeks based on the current new case and hospitalization rates.  On cue, Poland began converting a soccer stadium into a field hospital, Italy announced new restrictions and the UK  is in negotiations to lockdown its Northern city of Manchester.

Overnight, Asian markets were mixed, but overall, modestly higher.  Taiwan (+1.24%) and Japan (+1.11%) led the gainers, while Thailand (-2.02% on political unrest) and China (-0.70%) led the losers.  In Europe, markets are also mixed by generally higher so far today.  Among the big 3 bourses, the FTSE is down (-0.22%), the DAX flat (-0.03%), and the CAC up (+0.32%).  The other European bourses show a modest move in either direction, but lean to the green side.   As of 7:30am, US futures are pointing to a gap higher at the open.  The DIA implying +0.70%, the SPY suggesting +0.83%, and the QQQ indicating +1.00% at this point. 

The major economic news for Monday is limited to Sept. Federal Budget Balance and 3 Fed speakers (Chair Powell at 8 am, Clarida at 11:45 am, and Harker at 3 pm.  Major Earnings Reports include HAL before the open and CCK, IBM, LOGI, PPG, STLD, and ZION after the close.

The surging virus, lack of a stimulus deal, and earnings reports are likely to remain the big drivers of the market Monday. However, any potential news on the political front remains an overhang for at least another couple of weeks. And of course, the M&A world seems to still be in vogue as we head into the stretch run of the year. The one thing that is sure is that posturing is sure to add to volatility. So, continue to be careful in this market.

Lock-in your profits whenever you can and stick to your rules. Don’t get too greedy, chase the moves you have missed, and don’t predict. Be sure you respect potential support and resistance.  Follow the trend and stick wiht your trade plans. Friday’s candles were ugly, but the market seems to want to shrug that off this morning.

Ed

Swing Trade Ideas for your consideration and watchlist: GLW, URI, HAS, NIO, CGC, GPS, MCRB, SPCE. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets gapped down 1.25% on Thursday on decreased expectations for stimulus and a much higher than expected Initial Jobless Claims.  However, the bulls spent most of the day working their way back toward the Wednesday close before taking a step back in the final 15 minutes.  On the day, the large-caps both ended flat and the NASDAQ closed down, but all 3 remain in a Bull Flag type pattern.  At the close, QQQ was down 0.67%, SPY down 0.11%, and DIA down 0.03%.  The VXX was up only slightly to 22.10 and T2122 climbed back into overbought territory at 86.39.  10-year bond yields rose to 0.734% and Oil (WTI) was flat at $41.01/barrel.

On the stimulus front, Treasury Sec. Mnuchin told reporters that the White House will no longer let funding targets over Covid-19 testing hold back a stimulus deal.  Later the president said he would raise his offer above the Administration’s current $1.8 trillion, but gave no specifics.  These two developments raised hopes in the market that a deal may still get done soon.  However, after hours, Senate Majority Leader McConnell rejected the idea of any large stimulus bill passing the Senate, regardless of whether the White House backs the bill or not.  He told reporters that the $500 billion PPC bill Senate Republicans will propose and vote for next week is the right level of stimulus.

In an interesting follow-up to a story earlier this week, Robinhood confirmed that almost 2,000 of their trader’s accounts were hacked from a data leak that had been sold on the dark web.  CNBC reported that E*Trade, Schwab, TDA, and others have also been hacked and the Treasury Dept. reports that the total theft through these leaks has been about $1 billion since February.  However, Robinhood is the latest and most high profile due to their notoriety on social media during the pandemic.

European Aviation regulators have declared the BA 737 Max plane fit to fly in European air space again, even before the company makes the final changes demanded by the US FAA. This is very good news for BA, which has struggled with a Public Relations nightmare over this problem plane. In other European news, UK’s PM Johnson told the country to prepare for a “No Deal Brexit” (breaking of an international treaty, using WTO tarrif rates, and turmoil around a hard border in Ireland) as no progress has been made in trade negotiations.

On the virus front, in the US we now have 8,219,123 confirmed cases and 222,754 deaths.  After 66,219 new cases Thursday, the 7-day average daily new case count rose again to 54,413/day, while the lagging average of deaths remains relatively flat at 711/day.  36 states are reporting increasing new case numbers and the country as a whole has seen a 14% increase in cases in the last week.  In good news, MRNA said it may have efficacy data on the first 53 patients in its Phase 3 trial sometime in November, but will not have safety data on even those 53 until some unspecified time beyond then.

Globally, the numbers rose to 39,250,410 confirmed cases and the confirmed deaths are now at 1,104,131 deaths.  ECB President Lagarde said that economic stimulus in the form of interest rate cuts, forward guidance, and asset purchases is ready and waiting as 80% of European countries are seeing a surge in cases.  In the UK, another region of the UK moved into the highest alert level with a surge of cases, binging a lockdown to that region.  France, the Netherlands, Czech Republic, Poland, Belgium, Spain, and Russia are all sitting at a record level of new cases as the rate of spread seems to be even worse than in the US.  Analysts speculate this is because Europe is farther North than the US and may well be further into their seasonal shift indoors.

Overnight, Asian markets were mixed and saw modest moves in both directions.  Hong Kong was the biggest winner at +0.94, while South Korea was the biggest loser at -0.83%.  In Europe, markets are nearly green across the board, with the lone outlier of a red Russia.  The big 3 bourses are showing the FTSE +1.31%, DAX +0.87%, and CAC +1.49%.  Other European bourses show a more moderate positive move so far Friday. As of 7:30am, US futures are also pointing to a modestly higher open.  The DIA and SPY are both implying about a 0.25% gap up, while the QQQ is showing a 0.36% gap up at this point. 

The major economic news for Friday includes Sept. Retail Sales (8:30 am), Sept. Industrial Production (9:15 am), as well as Aug. Business Inventories and Univ. of Michigan Consumer Sentiment (both at 10 am).  Major Earnings Reports include ALLY, BK, CFG, JBHT, SLB, STT, and VFC before the open.  There are no earnings reports after the close.

Just like yesterday, the surging virus, lack of a stimulus deal, and earnings reports are likely to be the main drivers of the market today. However, news on stimulus (good, bad, and/or conflicting) may also be likely in front of the weekend news cycle. Regardless, the one thing that is sure is that political overhang and posturing are sure to add to volatility. So, continue to be careful in this market.

As always, lock-in profits whenever you can and stick to your rules. Don’t chase moves you have missed, don’t predict, and respect potential support and resistance.  Follow the trend and the short-term trend remains to the downside. However, the market is in a longer Bull trend and doing a Flag pattern type move despite yesterday’s strong white candle. Just stick to those trading plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: FITB, GLW, CGC, TSLA, SPCE, X, OKE, FCX, GPS, INTC. Also, the public is invited to join Rick in the trading room starting at 9 am using this link: https://bit.ly/Hrcopenroom Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets opened flat Wednesday and after a slight rally, sold off all morning before a range-bound roller-coaster near the lows all afternoon.  The result is a Bull Flag pattern in all the major averages.  On the day, QQQ was down 0.84%, SPY down 0.63%, and DIA down 0.56%.  The VXX fell a percent to 21.92 and T2122 fell outside the overbought territory to 72.50.  10-year bond yields were unchanged at 0.727% and Oil (WTI) rallied over 2% to $41.11/barrel.

On the stimulus front, Treasury Sec. Mnuchin and House Speaker Pelosi spoke again Wednesday but did not reach a deal.  Mnuchin threw cold water on the market with comments after the meeting to the effect that getting a deal done before the election will be very difficult.  However, they will meet again Thursday.

After the close, WFC announced they have fired more than 100 employees for abuse of the relief fund programs.  However, they stressed a lower than expected loan loss for the quarter.  UAL also posted a larger than expected loss on the quarter and again stressed the need for relief from the US government.

France said Wednesday that they intend to proceed with a tax on digital transactions with customers located in their country.  The French Finance Minister also said the EU should press ahead with its own plans for an EU-wide digital tax (to prohibit the big tech companies from shifting profits to low-tax Ireland in order to avoid taxation).  US sanctions and tariffs on France are scheduled to take place in retaliation as of January.

On the virus front, in the US the numbers showing we now have 8,153,740 confirmed cases and 221,872 deaths.  After almost 60,000 new cases Wednesday, the 7-day average daily new case count rose again to 53,151/day, while the lagging average of deaths remains relatively flat at 723/day.  36 states are reporting increasing new case numbers and the country as a whole has seen a 14% increase in cases in the last week.

Globally, the numbers rose to 38,814,533 confirmed cases and the confirmed deaths are now at 1,098,012 deaths.   In France, new restrictions (including 9pm curfews) were announced as both new cases and hospitalization reached the highest level since June and exceeded their preset threshold for additional measures.  Both Germany and Italy recorded their highest number of new cases since the start of the pandemic and Russia recorded a record number of deaths Wednesday.  Meanwhile, in Spain, all bars and restaurants in the Catalonia region have been closed again for at least 2 weeks. Across the Channel, in a controversial move, Wales has banned incoming travelers from high-risk areas of the UK, including Scotland, Northern England, and Northern Ireland. 

Overnight, Asian markets were red across the board (with the lone exception of a modestly positive Australia).  Hong Kong and India were the only losses of more than 2%.  In Europe, markets are following Asia with major losses at this point in the day.  The big 3 bourses are showing the FTSE -1.88%, DAX -2.72%, and CAC -2.15% on renewed virus and shutdown fears.  There is a similar scorecard across the rest of the continent’s exchanges.  As of 7:30am, US futures are also pointing to a significant gap down.  The DIA and SPY are both implying about a 1% gap lower, while the QQQ is showing a 1.40% gap down at this point. 

The major economic news for Thursday includes Sept. Import/Exports, Weekly Initial Jobless Claims, NY Empire Mfg. Index, and Philly Fed Mfg. Index (all at 8:30 am), Crude Oil Inventories (11 am) and 3 Fed speakers (Kaplan at 11 am, Quarles at 11 am, and Kashkari at 5 pm).  Major Earnings Reports include CMC, MS, SCHW, TFC, TSM, and WBA before the open as well as ISRG after the close.

The surging virus, lack of a stimulus deal, and earnings reports are likely to be the main drivers of the market. However, the flurry of economic news at 8:30 am may have something to say about the open. Regardless of the open, political overhang and stimulus posturing are sure to add to volatility during the day. So, be careful if you are going to wade into this market anew.

Be nimble and make sure you lock-in profits whenever you can. As always, maintain your discipline.  Stick to those rules and don’t chase moves you have missed.  Follow the trend (and the short-term trend is down in a longer Bull trend doing a Flag pattern move now). Just stick to those trading plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas today. However, the public is invited to join Rick in the trading room starting at 9 am (where many trade ideas will be discussed) using this link: https://bit.ly/Hrcopenroom Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets opened mixed and flat Tuesday as Earnings season kicked off.  However, the large-caps saw a slow selloff lasting all the way to the lows about 3 pm.  Then a rally the last hour closed the DIA and SPY up off their lows, both printing Bearish Harami candles.  Meanwhile, the QQQ gapped up almost two-thirds of a percent but immediately sold off below Monday’s close.  Then an all-day roller coaster ride ended up with price closing almost exactly where it closed Monday.  On the day, QQQ was flat -0.00%, DIA down 0.60%, and SPY down 0.65%.  The VXX rose slightly to 22.15 while T2122 fell back to the edge of the overbought territory at 80.17.  Bonds began trading Tuesday after the holiday and fell to 0.729% as Oil (WTI) rose to $40.17/barrel.

On the stimulus front, Senate Majority Leader McConnell has had enough negotiations (he is not a primary negotiator anyway) and has said the Senate will vote on a small plan that essentially covers just the PPP business loan/grant program.  However, any bill the Senate passes is very likely DOA in the House.  Meanwhile, President Trump sent out another nebulous tweet urging Congress to “go big or go home” on stimulus (no amount or specifics mentioned).  And House Speaker Pelosi has again told reporters the White House proposal falls significantly short of what is needed to address the crisis.

During the day, the big banks got hammered with C and JPM both printing big, ugly Bearish Engulfing candles.  This came as both reported beats on both the top and bottom lines.  BAC and WFC (which report Wednesday) also got caught in that selling.  The other major stock news on the day was the AAPL iPhone announcement which includes a $100 price increase and adds 5G capability while also not providing a charging cable or earpiece.  Finally, overnight, PPC agreed to pay a $110 million fine for Chicken price-fixing.

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,093,600 confirmed cases and 220,900 deaths.  The 7-day average daily new case count rose (about 1,000 increase) again to 51,691/day, while the lagging average of deaths remains relatively flat at 712/day.  Prior to the open Tuesday, JNJ became the second to pause their Phase 3 Trial over another unexplained illness of a study participant.  Then in the afternoon, LLY was forced to pause the trial of their antibody treatment (the one President Trump received) by US regulators over potential safety concerns.

Globally, the numbers rose to 38,426,539 confirmed cases and the confirmed deaths are now at 1,091,759 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In the UK, despite the worsening situation, Cabinet Member Coffey said there is unlikely to be a national lockdown in the next 2 weeks, instead insisting the PM had decided to go with regional measures and local lockdowns in hope that will be enough to stop the spread.  Meanwhile, in Germany, Chancellor Merkel is scheduled to release more restrictions later today. 

Overnight, Asian markets were mixed, but mostly lower as the region reacted to a speech by Chinese President Xi Jingping.  Japan and Hong Kong ended flat, with Shanghai, Shenzhen, and South Korea lower.  The other Asian markets were mixed with only India (+0.72%) showing any appreciable gain.  In Europe, markets are also mixed, but again mostly lower so far today.  The big 3 bourses are all on the red side of flat with the only markets showing noticeable moves being the smaller countries as of mid-day. As of 7:30 am, US futures are mixed and flat with the DIA and QQQ just on the green side of even and the SPY just on the red side. 

The major economic news for Wednesday is limited to Sept. Core PPI (8:30 am) and 4 Fed speakers (Clarida at 9 am, Quarles at 9:30 am, Quarles again at 3 pm, and Kaplan at 6 pm).  Major Earnings Reports include ASML, BAC, GS, INFY, PGR, PNC, USB, UNH, and WFC before the open.   Then after the close, AA, and UAL report.

Earnings are ramping up, the tea leaf reading of those numbers and statements follow, and stimulus talks (or lack thereof with Treas. Sec. Mnuchin out of the country), as well as political wrangling and the ACB confirmation hearings, will dominate the news.   So, there is a lot of volatility risk overhanging the market.  It looks like we are starting out looking at a consolidation day.  However, that volatility can see us run either direction.

Continue to be careful, nimble, and potentially light in your trades.  Make sure you lock-in profits whenever you can and maintain your discipline.  Stick to those rules, follow the trend, and don’t chase moves you have missed.  Just stick to those plans and they will serve you well.

Ed

Swing Trade Ideas for your consideration and watchlist: ABUS, OKE, XRT, KODK, XSPA, MRNA, SPCE, AMD. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

On Monday, markets gapped up three-quarters of a percent and then continue to rally most of the day for no particular reason.  Then we saw a half-percent selloff the last 90 minutes of the day, again with no news explanation.  That said, profit-taking makes sense after such a run of gap-ups and white candles.  On the day, QQQ was up a gaudy 3.09%, its best day since April with AAPL and AMZN leading the charge in front of their big events on Tuesday.  However, the large-caps were also quite positive with the SPY up 1.58% and the DIA up 0.86%.  VXX dropped to 21.85 and the T2122 remains deep in the overbought territory at 97.55 (but notice it did pull back just a bit).  Bond markets were closed, but Oil (WTI) fell almost 3% again to $39.52/barrel.

While I said there was no particular explanation for Monday’s market move, it is possible “hope for more stimulus” was the cause. However, there were no headlines on the negotiations, the last word from both sides was an impasse, and the political focus has moved to the confirmation of ACB. However, after-hours Bloomberg reported that their analysts are again seeing patterns in the CBOE NDX Volatility index as they saw during the summer.  Specifically, they claim to again see signs of day-trading options traders from the new, stay-at-home economy (read Robinhood traders) pushing moves in both directions during the day.  This new group of traders is driving marginal demand for contracts (particularly in the big-name FAANGM tickers) that, in turn, leads to increased volatility and outsized moves as they pile in and out both during premarket and during the day.

After the close, DIS announced they are reorganizing their various divisions to make their primary focus the video streaming business.  Technology research company Gartner also announced that the US personal computer industry had the best in 10 years on Q3.  PC shipments were up almost 11.5% for Q3 and they are expecting blow-out quarterly reports by HP, DELL, AAPL, MSFT along with various foreign PC makers.  However, overnight JNJ halted Phase 3 vaccine testing due to an unexplained illness.

On the virus front, in the US we have now gone over 8 million cases, with the numbers showing we now have 8,038,037 confirmed cases and 220,018 deaths.  The 7-day average daily new case count rose again to 50,612/day.  Dr. Fauci (NIH) told reporters that “the US is on a trajectory of getting worse” with 31 states are trending upward in daily cases compared to one week ago.  (Not good as we are just now entering Winter and flu season.) One example of the problem is the small population state of ND, which has less than 20 ICU beds available for the entire state, recorded nearly 500 new cases on Monday, and is already shipping patients to other nearby states.  The main model used by the White House Task Force (Univ. of Washington) is predicting 180,000 more deaths in the US by the end of January unless major improvements in mask usage and social distancing are implemented.

Globally, the numbers rose to 38,097,303 confirmed cases and the confirmed deaths are now at 1,086,400 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In the UK, PM Johnson is under fire from all sides for continuing with his “half a loaf” approach.  He increased restrictions Monday, but did not institute a second two-week national lockdown that the scientific advisory committee has been urging for 3 weeks.  In the meantime, the daily case count in the UK is 3 times that of their worst pre-summer lockdown week.  France also continues to have major issues as their national testing positivity rate reached 12.8% Monday.  Spain, Italy and Germany also all continue to struggle with new measures as their second wave surges continue.

Overnight, Asian markets started strong (following the US), but fizzled.  However, they did close modestly positive.  Australia led the gainers up 1.04%, but most of the Asian exchanges ended flat to modestly green such as Shanghai +0.04%, Japan +0.18%, South Korea -0.02%, and Hong Kong was closed due to a typhoon.  In Europe we see a mixed, but much redder scoreboard so far today.  All 3 of the major bourses are negative, with FTSE down 0.41%, DAX down 0.42%, and CAC down 0.33% as of mid-day.  As of 7:30am, US futures are mixed with the QQQ implying a gap up of 0.96%, but the large-caps are both projecting a red open with the DIA down 0.38% and SPY down 0.08%. 

The major economic news for Tuesday is limited to Sept. Core CPI (8:30 am) and Sept. Fed Budget Balance (2 pm).  and no earnings reports scheduled for Monday.  However, earnings season kicks off again with BLK, C, SAL, FAST, FRC, JNJ, JPM, and WIT all reporting before the open.  Other major events include the AAPL iPhone product refresh and AMZN Prime Day. 

Both earnings season, as well as AMZN Prime days (and competitor sales), kick-off in an attempt to jumpstart Xmas sales early, AAPL is holding its iPhone launch event today.  Those are likely to be the drivers today, although the JNJ Trial stoppage will also likely have an impact.  However, there is always room for political or stimulus news causing volatility in this triple-silly season.

So, with the pandemic, political, and earnings risk hanging overhead, be careful, nimble, and potentially light in your trades.  Lock-in profits whenever you can and maintain your discipline.  Stick to your rules, follow the trend, and don’t chase moves you have missed.  Our job as traders is to reduce risk and create consistent gains, not knock the cover off the ball every time we swing.

Ed

Swing Trade Ideas for your consideration and watchlist: CSX, FITB, MCD, DVAX, F, TLRY, ET. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets gapped up Friday on more hope for stimulus.  After that the large-caps ground sideways in a slight downtrend.  This left them in indecisive candles.  However, the QQQ continued an uptrend and closed near its highs.  For the day, QQQ was up 1.53%, SPY up 0.89%, and DIA up 0.58%.  The VXX fell over 5% to 22.29 and T2122 remains deep in the overbought territory at 98.89. 10-year bond yields were essentially flat at 0.779% and Oil (WTI) fell 1.63% to $40.52/barrel.

On the stimulus front, over the weekend the White House raised their offer and Chief Economic Advisor Kudlow said they may go well above the Democrat-proposed $2.2 trillion. The White House also sent another letter to Congress pleading to separate another portion of the package (PPP loans/grants this time) as a stand-alone bill.  Still, House Speaker Pelosi seems to be holding her ground that no piece-meal one-off bills will be passed and any bill must be part of a larger agreement.  So, both of the main negotiators say the sides remain at an impasse.  Worse yet, Republican Senators have also attacked the White House’s attempt to reach a deal by raising the offer, and now say there is virtually no chance of passing any deal before the election.  However, market optimism for a deal soon remains alive as negotiations continue.

The Chinese Central Bank made it easier to short the yuan over the weekend. Sunday night the Chinese currency traded down 0.6% (a significant move for forex). Of course, a weaker yuan makes non-Chinese products and commodities more expensive in China and also makes Chinese products and commodities cheaper throughout the rest of the world.  In addition, the Chinese government announced a market-based reform that will give local authorities more power to regulate local businesses.  These moves could be related to US-China trade relations, but were definitely seen as positives by the Asian markets.

On the virus front, in the US, the numbers show we now have 7,992,810 confirmed cases and 219,702 deaths.  After 56,652000 cases Thursday, the 7-day average daily new case count rose again to just over 50,000/day, while the lagging average of deaths remains flat at 725/day.  31 states are trending upward in daily cases, with only 3 states trending downward compared to one week ago.  At the same time, the US government has struck a $486 billion deal with AZN for 100,000 doses of an antibody cocktail treatment similar to the one President Trump received.  Delivery should begin by the end of 2020 with the US having the option to buy up to another 1 million doses by the end of 2021.

Globally, the numbers rose to 37,795,463 confirmed cases and the confirmed deaths are now at 1,081,934 deaths.  This comes as the world is adding 1 million new cases every 3 days.  In Europe, things are getting bleak again.  Germany confirmed the most daily virus-related deaths since May on Saturday.  Meanwhile, Russia, the Czech Republic and Hungary all reported records for new cases on both Saturday and Sunday.  Italy’s new cases climbed for a sixth straight day, reaching the highest daily level since March.  In the UK, on Sunday a government Minister announced new restrictions, and one of the chief scientific advisors told the BBC a second national lockdown was quite possible unless they can curb the sharp rise in cases and hospitalizations.

Overnight, Asian markets were mostly higher, with outsized gains in China.  Shenzhen (+3.31%) led that way, followed by Shanghai (+2.64%), and Hong Kong (+2.20%).  The only appreciable loser on the day was Malaysia (-0.78%).  In Europe, markets are also mostly higher Monday.  The FTSE (-0.08%) is flat while the DAX (+0.28%), and CAC (+0.52%) are positive.  As of midday the only significant loss is in Greece (-1.54%). As of 7:30am, US futures are implying a mixed open with the Dow flat (+0.01%), S&P500 up (+0.45%), and the Nasdaq gapping (+1.37%).

There are no major economic news and no earnings reports scheduled for Monday.

With earnings season (as well as AMZN Prime days and the AAPL iPhone launch event) not starting until Tuesday and no economic news scheduled for today, Monday may be a “wait and see” day for the markets.  However, there is always room for political or stimulus news causing volatility. This is especially true given the market’s love for more stimulus and apparent willingness to assume it will come sooner or later, and if later then bigger. Also, don’t forget today is a federal holiday, and bond markets are closed.

So, with the political, economic, and earnings risk hanging overhead, be careful, nimble, and potentially light in your trades.  Lock-in profits whenever you can and maintain your discipline.  Stick to your rules, follow the trend, and don’t chase moves you have missed.  Welcome back and I hope it was a great weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: DOMO, WKHS, AAPL, FVRR, INTC, KO, GNUS. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets gapped a half percent higher at the open on Thursday on continued hope for stimulus, despite a worse than expected Weekly Jobless Claims number.  However, they then proceeded to grind sideways in a tight range for the rest of the day.  The DIA and QQQ both printed indecisive black-bodied Hanging Man type candles, while the SPY printed a white-bodies version closing near the highs.  On the day SPY was up 0.89%, QQQ up 0.53%, and the DIA up 0.48%.  The VXX fell 4% to 23.51 and T2122 rose very high into the overbought territory at 98.87.  10-year bond yields fell slightly to 0.779% and Oil (WTI) gained 3.3% to $41.27/barrel.

During the day, there were news stories around whether or not a 2^nd Presidential debate will happen and House Speaker Pelosi saying there will be no airline industry bailout without the broader stimulus bill (calling the President’s bluff from Tuesday on no further stimulus negotiations).  After that, President Trump told reporters that despite his order to stop 2 days ago, negotiations are on-going and have now become productive.  The market largely shrugged off all 3 stories without blinking.  Finally, after hours, it was reported that the President does want a broader stimulus deal and despite his (and White House staff’s conflicting statements…even during time of the most recent negotiation call) Treasury Sec. Mnuchin is negotiating on behalf of the President.

The US Census Bureau reports that nearly 60 million US households expect a member of their family to lose their job or take a pay cut in the next 4 weeks.  They went on to report that 23% of Americans are finding it “somewhat” or “very” difficult to cover typical household expenses.  However, at the same time, MS released a report saying that US households have saved an extra $1.1 trillion in “savings buffer” so far this year (as compared to pre-covid household savings).  I take this to mean the high-end of the income scale has socked away considerably more than usual while the low-end of the scale are barely getting by.

On the virus front, in the US, the numbers show we now have 7,834,289 confirmed cases and 217,750 deaths.  After 56,652 cases Thursday, the 7-day average daily new case count rose again to just under 47,000, while the lagging average of deaths rose only slightly to 725 after another 957 died.  On Thursday, TX reported a 4-week high in hospitalizations and WI began building field hospitals to offset its own surge in hospitalizations.  NY and NJ also both saw the largest number of new cases since mid-May.  Meanwhile, several other (mainly Northern) states also saw a record number of new cases.  However, in relatively good news, HHS Sec. Azar said that IF the vaccines in phase 3 now are approved and IF production goes as planned by the companies involved, then the US may have enough vaccine doses for the whole country by the end of March. 

Globally, the numbers rose to 36,802,540 confirmed cases and the confirmed deaths are now at 1,067,551 deaths.  This comes after almost 350,000 new cases and almost 6,500 new deaths were recorded globally on Thursday.  In Europe, France logged another record high on the 7-day average of new cases and expanded restrictions in response as did Russia.  Italy saw the largest number of new cases in a day since early April.  In addition, Spain’s President ordered for a 15-day state of emergency in the capitol Madrid, but a judge later blocked his order leaving confusion.  Meanwhile the UK reported that their economy expanded 2.1% in August (but that growth was less than a third of July’s growth).

Overnight, Asian markets were mixed, with China (back from a holiday) catching up with a 3% gain in Shenzhen and a 1.68% gain in Shanghai.  However, Japan, South Korea, and Hong Kong were flat to red.  The remaining Asian exchanges were mixed on modest moves. exchanges.  In Europe, markets are also mixed.  The FTSE (+0.42%) and CAC (+0.31%) are positive while the DAX (-0.10%) is flat to down.  This is typical with outliers like Portugal (-1%) and Finland (+0.71%) at this point in the day. As of 7:30am, US futures are pointing toward another modest gap higher.  The DIA and SPY are implying a 0.47% gap up, while the QQQ is implying a 0.32% gap higher. 

There is no major economic news and no earnings reports scheduled for Friday.

After a grinding, sideways day Thursday, it seems like the bulls were waiting on follow-up news on stimulus after the gap. With turmoil in the White House position and the 2 sides of the negotiation still not giving way or making nice (Pelosi and Trump both questioned the other’s mental faculties Thursday), that may not be in the cards.  That said, there are a lot of politicians on both sides of the aisle and branch of government that are up for election.  You can bet most of them would like to deliver another package this month, regardless of whether any stimulus/relief reaches anyone before the election.

And while this goes on, remember there is no other scheduled news today or Monday (Federal holiday) with Earnings season kicking off on Tuesday.  So, with the political, economic, and earnings risk hanging overhead, be careful about the risk you want to carry into the weekend.  It’s payday, so don’t forget to take some money off the table and lock-in profits where you can.  If you are trading, be light, quick and disciplined.  Stick to your rules, follow the trend, and don’t chase moves you have missed.  Have a great day and weekend.

Ed

Swing Trade Ideas for your consideration and watchlist: No trade ideas for Friday. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Markets gapped up Wednesday on hope that President Trump’s flip to tweeting for “one piece at a time” of the stimulus he wants would result in another relief package happening.  Stocks then ground sideways until the early afternoon.  At that point, the bulls stepped in to lead an afternoon rally.  Most of Tuesday’s post-tweet losses were regained by the close Wednesday.  On the day, DIA was up 1.84%, SPY up 1.74%, and QQQ up 1.73%.  The VXX was down 3% to 24.50 and T2122 climbed further into overbought territory to 91.51.  10-year bond yields rose again to 0.783%, but Oil (WTI) fell about 2% to $39.98/barrel.

In stock news, IBM is surging in premarket after it announced plans to spin off an IPO of its Managed Infrastructure unit.  Following the Presidential treatment / endorsement, REGN has asked the FDA for emergency use authorization of the cocktail given to President Trump.  REGN shares were also up in premarket.  Optimism also continues over stimulus, despite the President’s unilateral stoppage of negotiations, as markets seem to think pieces will get done soon as long as the President gets his way.

For a change of pace, the Vice-Presidential debate is leading all non-stock news (instead of the pandemic).  While both sides spin the talking points and claim victory in the event, it seems the biggest take-away for markets may be a calming effect of seeing much more adult behavior.  There were still clashes, but both debaters were allowed to finish a sentence without being talked over and badgered while speaking.  This is likely reassuring to investors.

On the virus front, in the US, the numbers show we now have 7,776,796 confirmed cases and 216,788 deaths.  After almost 49,000 cases Wednesday, the 7-day average daily new case count rose again and is now back up to 45,565, while the lagging average of deaths remains relatively flat now at 721 after another 932 deaths. 

Globally, the numbers rose to 36,439,437 confirmed cases and the confirmed deaths are now at 1,061,239 deaths.  In the UK, Scotland has ordered all bars closed as of Friday for at least 16 days.  At the same time, the UK released a study saying that the mass hospitalizations and deaths are only coming from 14% of patients, because 86% of cases are asymptomatic (which of course makes it harder to stop the spread).  This comes as the Czech Republic reports the highest new case count since the start of the pandemic and Central Europe has surpassed Southern Europe (Spain, Italy, and France) as the epicenter in Europe.  In North American, Canada has reached a new high in its weekly average of new cases, with 80% of the cases coming from Ontario and Quebec.

Overnight, Asian markets were mostly higher on modest gains with Japan (+0.96%) leading the gainers among the major exchanges.  In Europe, so far today we see green across the board, again on modest gains. Among the major European Bourses, the FTSE is at +0.45%, the DAX at +0.65%, and the CAC at +0.50% as of mid-day.  As of 7:30am, US futures following Europe and pointing to roughly half percent gap higher at the open.  The DIA is implying a 0.49% gain, SPY a 0.44% gain, and QQQ a 0.58% gain at the open.

The major economic news for Thursday is limited to Initial Jobless Claims (8:30 am) and a Fed speaker (Kaplan at 6 pm).  Major earnings reports on the day are limited to AYI and DPZ before the open.

The bulls put in an impressive day Wednesday on the rebound from the Tuesday late-day tweet drubbing. We are close to being back where we were just prior to that tweet on what had looked like a positive Tuesday. If the gap higher stays in place for the next couple hours, that move will put markets at (or even just above) the closest resistance level, giving the bulls that chance to deliver a higher-high to make a bullish trend.

Volatility still reigns. The market is simply assuming stimulus without a truly clear path to it taking place. So, continue to be careful. However, if you can be light, nimble, and short-term, this could be a tradable move. In any case, stick to those rules and don’t chase moves you have missed. Lock-in those profits every chance you get. Remember that a trader’s job is to consistently take gains and reduce risk, not win bragging-rights.

Ed

Swing Trade Ideas for your consideration and watchlist: KNDI, BIDU, TXMD, GNUS, LB, OKE, ABUS, AAPL, SRNE. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Tuesday was, shall we say, interesting.  After a small gap down in the QQQ (and up open in the large-caps), markets ground sideways for most of the morning, until Fed Chair Powell told us the economy needed more stimulus once again.  This was seen as just the push negotiations needed and markets rallied hard on the news.  Unfortunately, at 3 pm the President tweeted that he has ordered a halt to any negotiations on more stimulus until after the election (so much for “GET IT DONE”).  Stocks immediately fell off the cliff (down 2.50%) and closed near their lows.  The DIA and SPY printed large Bearish Engulfing signals, but all 3 major indices printed big, ugly black candles.  On the day, DIA was down 1.35%, SPY down 1.42%, and QQQ down 1.78%.  The VXX was relatively flat, climbing to 25.26 and T2122 fell, but remains inside over-bought territory at 84.25.  10-year bond yields spiked on the President’s tweet to 0.749% and oil rose to $40.18/barrel.

While the halt to stimulus talks hammered the airline industry, BA had some additional news.  On the down side, BA slashed plane production forecasts by 11% and went on to say they do not expect the industry to recover for 10 years.  However, on the plus side the FAA proposed a pilot training program (for training and certifying pilots to fly the fixed 737 Max) and said they are finalizing the physical changes requirements list that will allow the 737 Max to be recertified.  This is a very positive milestone to getting that plane back on the market.

To top or yesterday’s episode of Political Theatre, our President has again reversed course overnight and is now again urging Congress to approve stand-alone portions of the stimulus program (no negotiation, just give him the parts he wants). Markets seem to taking this as hope for pieces of the stimulus package. However, this may well be just another of his negotiating tactics. No word on if anyone will take his pleading serious or what the Democratic reaction might be this time.

As mentioned yesterday, House Democrats released the Committee Report on the 16-month investigation into anti-trust activities by the tech giants.  The report says that AAPL, AMZN, FB, and GOOG all have monopoly power over their respective industries and should be treated that way.  Specifically, the report calls for prohibiting dominant companies from entering adjacent business lines (such as Google owning YouTube).  It also would increase enforcement agency budgets and tell them to presume a merger is anti-competitive until the merging companies show the merger would not impact competition.   Finally, it calls for prohibiting dominant firms from preferring their own products over competitors (making it hard, impossible, or much more expensive to use competitor products or services).  Republicans have said the broader measures are “non-starters” for the GOP. However, with bi-partisan cooperation on that committee, some changes are expected to be made as a result of the investigation.

On the virus front itself, in the US, the numbers show we now have 7,724,207 confirmed cases and 215,849 deaths.  The 7-day average daily new case count continues to rise and is now back up to 44,310, while the lagging average of deaths remains relatively flat now at 719 after Tuesday’s 790 deaths.  New case counts continue to grow, but the rate increase only rose in half the states overnight (which is actually a decrease in the number of states showing increasing rates, if that makes sense).  Wisconsin continues to experience a very bad situation with record new cases, new hospitalizations and new deaths.  As a result, Governor Evers instituted more emergency orders Tuesday to limit gatherings as well as building and room occupancies.

Globally, the numbers rose to 36,097,083 confirmed cases and the confirmed deaths are now at 1,055,639 deaths.  The broadening spread in Paris has the city’s Intensive Care beds filling fast as the patient load jumped overnight from about 420 ICU patients per day a month ago to 1,426 overnight.  Germany also reported the highest new case count since April overnight.  In fact, only 4 of the 27 countries in the EU do not report case counts at what the EU determined to be the “critical” level.

Overnight, Asian markets were slightly mixed, but leaned to the positive side.  Japan was flat, Shanghai down 0.20% and Malaysia down 1.32%.  However, Australian was up 1.25%, Hong Kong up 1.09% and Thailand up 1.08%.  The rest of the region saw more modest gains.  In Europe, markets are also mixed but leaning red with no substantial winners at mid-day.  Among the 3 major European Bourses, the FTSE is flat at +0.06%, the DAX down 0.40%, and the CAC down 0.23%.  The rest of the markets are showing modest losses (except Russia which is down 1.55%) at this point.  As of 7:30am, US futures are pointing to a significant gap higher.  The DIA is implying a 0.63% gain, SPY a 0.58% gain, and QQQ a 0.53% gains at the open.

The major economic news for Wednesday is limited to Oil Inventories (10:30 am), September FOMC Minutes (2 pm), FOMC Statement (2 pm), and 3 Fed speakers (Kashkari at 1 pm, Williams at 2 pm, and Williams again at 3 pm).  Major earnings reports are limited to LW and RPM both before the open 

Volatility continues its reign. With uncertainty high around the virus, the election, the President’s health (and unpredictable behavior), markets are in a knee-jerk cycle of concerns. If you feel you have to be trading in this environment, be light, be nimble, and be short-term. In any case, stick to your rules, follow the trend, and don’t chase moves you have missed.  Keep locking-in those profits, because a trader’s job is to make consistent gains…not win bragging-rights about out-guessing some reversal.

Ed

Swing Trade Ideas for your consideration and watchlist: NLS, SQ, W, DHI, WHR, LB, AAPL, PINS. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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 Plans • Private 2-Hour Coaching

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

Monday saw a gap higher about seven-tenths of a percent and continued a strong morning rally apparently on less concern over the President’s health and hope for more stimulus.  After a mid-day grind sideways, a late day rally took the markets out near the highs.  This left us with large white candles across all 3 major indices.  On the day, QQQ closed up 2.13%, SPY up 1.77%, and DIA up 1.70%.  VXX fell 3% to 24.97 and T2122 rose deep into overbought territory at 92.64.  10-year bond yields rose strongly to 0.778% and Oil (WTI) spiked 6% to $39.35/barrel.

On the stimulus story, House Speaker Pelosi and Treasury Sec. Mnuchin spoke for an hour Monday without reaching a deal.  However, the two sides will exchange proposal documents and are scheduled to speak again today.  In related news, LUV told its union employees that it can only avoid mass layoffs if they take large pay cuts (unknown amount) and that there was no time for long, complex negotiations over this matter. The company has already cut executive salaries by 20%.

Related to the year-long Tech Giant Anti-trust hearings in Congress, a Republican committee member (Buck, CO) told Politico that the committee report will call for AMZN and AAPL being prevented from owning marketplaces in which they sell their own products as well as those of competitors.  Other portions of the Democratic majority recommendations would represent a major update of the Glass-Steagall anti-competition law.  The release of the report is being delayed after last-minute new information surfaced related to the FB purchase of Instagram in 2012 and to incorporate GOP comment and objections.  Buck also told the reporter that the things proposed by the committee are non-starters for Republicans.  In an unrelated story, AAPL stopped the sale of competing speakers and earphones ahead of the launch of their own new products in those areas.

On the virus front, in the US, the numbers show we now have 7,679,908 confirmed cases and 215,039 deaths.  The 7-day average daily new case count continues to rise and is now back up to 44,397, while the lagging average of deaths remains relatively flat now at 747.  The new case count is rising in 36 states as of Monday (based on 7-day average). The CDC also revised its guidance again Monday, reversing course to acknowledge that the virus can linger in the air up to hours and can be transmitted via airborne particles.  The FDA also reported that it now expects at least one “emergency use” vaccine application by year-end. Meanwhile, Dr. Fauci again warned that the US is still lagging behind where it needs to be on Covid-19 testing coming into Winter.

Globally, the numbers rose to 35,740,361 confirmed cases and the confirmed deaths are now at 1,046,633 deaths.  In the EU, the European Medicines Agency has begun a rolling review of the BNTX vaccine (Oxford UK study).  This does not reduce the approval hurdles, but does speed up the process of evaluation.  In good news, India reported the lowest new case total (61, 267) it has seen in 6 weeks.  However, in less bright news, several European countries are introducing new restrictions.  France, has raised the alert level to maximum in the region around Paris, ordering the closing of bars again for at least 15 days.  Germany mandated that Parliament wear masks at all times and the Czech Republic declared a second state of emergency.

Overnight, Asian markets were mixed but leaned to the green side as Australia’s central bank held steady on policy and rates.  India (+1.38%) was the only mover of more than 1%.  In Europe, markets are also mixed but leaning green.  The 3 major European Bourses are all slightly positive, with the FTSE up 0.05%, DAX up 0.17%, and CAC up 0.33%.  The losses seen are all in smaller markets like Denmark, Switzerland, and Amsterdam.  As of 7:30am, US futures are all just on the red side of flat.  The DIA is flat at -0.02%, SPY -0.23%, and QQQ -0.36%.

The major economic news for Tuesday includes August Imports, August Exports, and August Trade Balance (all at 8:30 am), August JOLTS (10 am), and a trio of Fed speakers (Chairman Powell at 10:40 am, Harker at 11:45 am, and Kaplan (6 pm). On the earnings front, PAYX reports before the open and LEVI reports after the close.

After Monday’s strong bullish run, we still have no stimulus, but the President did get released to the White House medical facilities (versus actual hospital).  With earnings starting in a few days, it seems the market is both assuming and anticipating another shot of “free money” stimulus.  This comes as Piper Jaffray reports teen spending has hit an all-time low.  So, while it’s hard to bet against the bulls here, there is no general economic optimism or stimulus underpinning the move…just expectation.  In fact, most economists say the recovery is slowing and expect some sort of recession in 2021 regardless. So, be very wary of volatility or, heaven forbid, the government or economy not meeting market expectations.  

I was dead wrong yesterday about the gap-and-fade. The bulls never looked back for some unknown reason.  I suppose that’s just another reminder to not predict…just follow the chart. So, stick to your rules, follow the trend, and don’t chase moves you have missed.  Don’t get too far exposed either direction in this volatile market. Also remember to keep locking-in profits, because a trader’s job is to make consistent gains…not win bragging-rights.

Ed

Swing Trade Ideas for your consideration and watchlist: LB, NIO, NUAN, BLNK, FB, AAPL, BA, INTC. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room 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.

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

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