Tuesday gave us Bull trap as markets opened higher.  SPY gapped up 0.34%, DIA gapped up 0.41%, and QQQ gapped up 0.24%.  However, that was it for the Bulls as all three major index ETFs sold of the rest of the day.  SPY and QQQ sold off sharpest for an hour before chopping sideways with a slight bearish trend until mid-afternoon when the second leg down took over for the last hour, ending on a 15-minute bounce.  In contrast, DIA sold off steadily on a more modest slope, but again, ended the day on a 15-minute bounce.  This action gave us large-body, small-wick, black-bodied candles in all three.  QQQ printed a Bearish Engulfing signal that would also have been an Evening Star, if had occurred at the top of a trend.  SPY did the same, but was engulfing a black Doji.  All three started the day above their T-line (8ema) and crossed back below as SPY and QQQ failed their downtrend lines and DIA barely passed that test from above.

On the day, eight of the 10 of the sectors were in the red as Technology (-1.77%) was way out in front (by 0.58%) leading the other losers lower.  On the other side, Energy (+1.16%) was held up far better than any other sector.  Meanwhile, SPY lost 1.13%, DIA lost 0.42%, and QQQ lost 1.78%. VXX popped 5.72% to close at 46.41 and T2122 dropped into its oversold territory, closing at 14.96.  On the bond side, 10-Year bond yields spiked again to close up at 4.685% while Oil (WTI) gained 1.17% for the day to close at $74.42 per barrel.  So, Tuesday saw the Bulls gap us higher and the Bears were having none of it.  They sold off markets all day, purportedly on strong economic data that raised the specter of a potential Fed switch back to tightening. This happened on above-average volume in SPY and QQQ as well as below-average volume in DIA.

The major economic news scheduled for Tuesday included November Exports, which were up to $273.40 billion (compared to an October $265.70 billion) and Nov. Imports, which were also higher, at $351.60 billion (versus October’s $339.60 billion reading).  This gave us a November Trade Balance of -$78.20 billion which was just on the better side of a -$78.30 forecast but worse than October’s -$73.60 billion value.  Later, Dec. ISM Non-Mfg. PMI came in stronger than expected at 54.1 (compared to a forecast of 53.4 and a November reading of 52.1).  At the same time, the December ISM Non-Mfg. Employment Index was down slightly, as predicted, to 51.4 (versus a 51.4 forecast and a 52.1 November reading).  On the cost side, the Dec. ISM Non-Mfg. Price Index was much higher at 64.4 (versus a 57.5 forecast and November 58.2 value).  At the same time, November JOLTS Job Openings were also up significantly to 8.098 million (as compared to a 7.730 million forecast and October’s 7.839 million number).  Finally, after the close, the API Weekly Crude Oil Stocks report showed a much larger drawdown than anticipated at -4.022 million barrels (versus a -0.250 million barrels forecast and a prior week 1.442-million-barrel drawdown).

In Fed news, on Tuesday, Atlanta Fed President Bostic said he expects the FOMC to be more cautious on rate cuts as inflation is likely to stay on a bumpy path toward the 2% target.  He went on to say, “I think that will call for our policy approach to be more cautious—because we don’t want to overreact to any one data point in an environment where things may bounce around considerably.”  Bostic continued, “I would want to make sure—for sure—that inflation gets to 2 percent, which means we may have to keep our policy rate higher longer than people might expect, or we may have to be more deliberate in the pacing of reducing our policy.”

After the close, AIR and CALM both reported beats on both the revenue and earnings lines.

Overnight, Asian markets were mixed with Singapore (+1.54%) and South Korea (+1.16%) leading the gainers while Taiwan (-1.03%) and Malaysia (-0.92%) paced the losses.  In Europe, markets are on the red side with 12 of 14 bourses below break-even at midday.  The CAC (-0.92%), DAX (-0.15%), and FTSE (-0.35%) lead the region lower in early afternoon trade.  Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.21% open, the SPY is implying a -0.32% open, and the QQQ implies a -0.43% open at this hour.  At the same time, 10-Year Bond yields are spiking again to 4.73% and Oil (WTI) is up half a percent to $74.60 per barrel in early trading.

The major economic news scheduled for Wednesday include ADP December Nonfarm Employment Change (8:15 a.m.), Weekly Initial Jobless Claims and Weekly Continuing Jobless Claims (both at 8:30 a.m.), EIA Weekly Crude Oil Inventories (10:30 a.m.), December FOMC Minutes (2 p.m.), and Nov. Consumer Credit (3 p.m.).  We also hear from Fed Governor Waller (8:30 a.m.).  The major earnings reports scheduled before the open are limited to AYI, ACI, HELE, MSM, RDUS, and UNF. Then after the market close, JEF and PSMT report. 

So far this morning, ACI, HELE, and MSM have all reported beats on both revenue and earnings. At the same time, AYI missed on revenue while beating on earnings. UNF does not report until 8 a.m.

In economic news later this week, on Thursday, we have a National Holiday for President Carter’s funeral.  (However, Fed members Harker and Bowman are still on the schedule to speak as well as the release of the Fed Balance Sheet.  I would not be surprised if those were not moved.)  Finally, on Friday, we get Dec. Average Hourly Earnings, Dec. Nonfarm Payrolls, Dec. Private Nonfarm Payrolls, Dec. Participation Rate, Dec. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Thursday, we hear from KBH.  Finally, on Friday, STZ, DAL, SNX, WBA, and WDFC report.

With that background, it looks like the market is undecided but leaning bearish now in the premarket.  All three major index ETFs gapped up to start the early session and all three rallied from there to briefly retest their T-line (8ema) from below).  However, all three then turned to the bearish side and are back below Tuesday’s close and retesting Tuesday’s low at this point.  That being the case, the short-term trend is bearish. If we look further out, all three are below their downtrend lines, meaning the mid-term trend is also bearish.  However, in the long-term, looking at higher-timeframe charts, the market remains in a strong bull trend.  In terms of extension, none of the three are too far extended from their T-line.  However, T2122 sits in the top half of its oversold area.   So, the market has room to run either direction, but the Bulls have more slack to work with today.  In terms of the 10 Big Dogs, seven of the 10 are in the red with AMD (-2.73%) being the worst off by more than 1.25%.  On the other side, NVDA (+0.60%) is by far the strongest of that group.   For a second straight day, NVDA leads in dollar-volume traded by about 20% over TSLA (which itself has traded five times as much as the next most liquid stock).

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets started the week on a positive note, but ended the day less positive than they started.  SPY gapped up 0.74%, DIA gapped up “just” 0.40%, and QQQ gapped up 1.04%.  From there, all three major index ETFs rallied into midday, but then the selling took over.  QQQ rallied until 11:30 a.m. selling steadily and crossing back into the top of its gap by 1:50 pm. and reversed by 3 p.m. to close just above its open.  Meanwhile, SPY began its own selling at 11:45 a.m. and sold steadily back down into the gap by the close.  At the same time, DIA kept its rally going until noon, but rolled over harder selling back down across the gap by 3 p.m. and closed just below Friday’s close.  This action gave us gap-up indecisive candles in all three major index ETFs.  SPY retested its downtrend and failed the test, printing a black-body Spinning Top with larger upper wick. DIA gapped up through its downtrend, printing a larger-body, black, Spinning Top that retested its 8ema and failed that test, but stayed above the downtrend line. Finally, QQQ gave us a gap-up, white-bodied Spinning Top / Doji type candle that tested its downtrend and closed right at that level.

On the day, six of the 10 of the sectors were green as Technology (+1.65%) was way, way out in front (by 1.2%) leading the other gainers higher.  On the other side, Utilities (-0.69%) and Communication Services (-0.67%) were the laggards.  Meanwhile, SPY gained 0.58%, DIA lost 0.01%, and QQQ gained 1.15%.  VXX fell 0.45% to close at 43.90 and T2122 dropped back to the bottom of its mid-range, closing at 23.44.  On the bond side, 10-Year bond yields continue their post-election rally to close up at 4.618% while Oil (WTI) fell two-thirds of a percent for the day to close at $73.49 per barrel.  So, Monday saw the Bulls gap us higher and rally all morning.  However, the sentiment changed midday and the afternoon was a steady selloff.  As was the case on Friday, this happened on average volume in the QQQ, as well as below-average volume in the SPY and DIA.

The major economic news scheduled for Monday included December S&P Global Services PMI, which came in higher but below expectation at 56.8 (compared to a 58.5 forecast and a November 56.1 reading).  At the same time, December S&P Global Composite PMI was in the same situation, higher but below expectation at 55.4 (versus a 56.6 forecast but above November’s 54.9 number).  Later, November Factory Orders were worse than expected at -0.4% (compared to a -0.3% forecast and October’s +0.5% value).

In Fed news, on Monday, Fed Governor Cook joined the chorus of FOMC members who now say the group can be cautious.  She said, “the labor market has been somewhat more resilient, while inflation has been stickier than I assumed (it would be)” … “Thus, I think we can afford to proceed more cautiously with further cuts.” Cook went on, “Over time, I still think it will likely be appropriate to move the policy rate toward a more neutral stance. (However, cuts to date) have notably reduced the restrictiveness of monetary policy and all along, I envisioned moving more quickly in the early stages of our easing campaign and then easing more gradually as the policy rate came closer to neutral.”  Later, in yet another pre-emptive surrender to the coming Trump Administration, Fed Vice Chair of Supervision Barr announced his decision to resign that post on February 28, 2025. (It should be noted Barr intends to remain as a Fed Governor through Feb. of 2026.)  This paves the way for the incoming President to appoint a much more bank-friendly “supervisor.” However, unless Trump is able to remove a sitting Fed Governor, he would have to appoint that person from among the other six existing Fed Governors. 

Overnight, Asian markets were green across the board (remember that China is closed for holidays).  Japan (+1.97%) led the region higher Tuesday.  In Europe, we also see mostly green with just four of the 14 bourses showing red at midday.  The CAC (+0.66%), DAX (+0.32%), and FTSE (-0.30%) are typical and lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are pointing toward a mixed flat open to start the day.  DIA implies a +0.11% open, the SPY is implying a +0.06% open, but QQQ implies a -0.08% open at this hour.  At the same time, 10-Year Bond yields continue to jump, now at 4.642% and Oil (WTI) is up eight-tenths of a percent to $74.15 per barrel in early trading.

The major economic news scheduled for Tuesday include November Exports, Nov. Imports, and November Trade Balance (all at 8:30 a.m.), Dec. ISM Non-Mfg. PMI, Dec. ISM Non-Mfg. Employment, and Dec. ISM Non-Mfg. Price Index, as well as the Nov. JOLTS Job Openings (all at 10 a.m.).  Then after the close, we get the API Weekly Crude Oil Stocks report at 4:30 p.m.  The major earnings reports scheduled before the open are limited to Tuesday we hear from RPM.  Then after the market close, AIR reports.

So far this morning, RPM reported beats on both the revenue and earnings lines.

In economic news later this week, on Wednesday we get ADP December Nonfarm Employment Change, Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, EIA Weekly Crude Oil Inventories, December FOMC Minutes, and Nov. Consumer Credit.  We also hear from Fed Governor Waller.  On Thursday, we have a National Holiday for President Carter’s funeral.  (However, Fed members Harker and Bowman are still on the schedule to speak as well as the release of the Fed Balance Sheet.  I would not be surprised if those were not moved.)  Finally, on Friday, we get Dec. Average Hourly Earnings, Dec. Nonfarm Payrolls, Dec. Private Nonfarm Payrolls, Dec. Participation Rate, Dec. Unemployment Rate, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations.

In terms of earnings reports later this week, on Wednesday, AYI, ACI, HELE, MSM, RDUS, UNF, JEF, and PSMT report.  On Thursday, we hear from KBH.  Finally, on Friday, STZ, DAL, SNX, WBA, and WDFC report.

With that background, it looks like the market is undecided so far in the premarket with all three major index ETFs giving us small-body (indecisive) candles that sit not too far from Monday’s close.  DIA is retesting its T-line (8ema) and at this point is just above. This puts all three above their T-line at the moment and, that being the case, the short-term trend is bullish. Looking further out, QQQ is again testing its downtrend line that stretches back to the all-time high in December.  SPY is also not far below a retest of its own downtrend line.  Meanwhile, DIA has broken through its own downtrend just by moving sideways. In the long-term, looking at higher-timeframe charts, the market remains in a strong bull trend.  In terms of extension, none of the three are extended from their T-line (8ema) based on the early session.  Meanwhile, T2122 sits just outside of its oversold territory.  So, the market has room to run either direction, but the Bulls have more slack to work with today.  In terms of the 10 Big Dogs, they are split 50/50 with NVDA (+2.48%) way out front leading gainers while TLSA (-1.79%) is far behind pacing the losses.  Reverting back to the pre-election norm, NVDA leads in dollar-volume traded by about 1.5 times over TSLA (which itself has traded five times as much as the next most liquid stock).

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Friday saw a modest rebound in the market.  SPY gapped up 0.51%, DIA gapped up 0.47%, and QQQ gapped up 0.59%.  From there all three major index ETFs gave us sideways chop along their opening level for the first 60 minutes.  However, after 10:30 a.m., markets ground slowly, but steadily, higher into 2:45 pm.  At that point, we saw modest profit-taking that led to a slight drift lower into the close.  This action gave us white-bodied candles in all three major index ETFs.  The SPY and QQQ both printed a gap-up, large body, white candle that crossed above their respective T-lines (8ema) while having small wicks on both ends.  DIA was less decisive, printing a gap-up, white Spinning Top candles that was also a Bullish Harami which retested, but failed to cross its own T-line.  None of the three retested their downtrends that stretch back to the all-time highs they reached in December.

On the day, nine of the 10 of the sectors were green as Technology (+1.86%) was more than half a percent in the lead, guiding the others higher.  On the other side, Consumer Defensive (-0.21%) was the only sector in the red and lagged other sectors by more than a third of a percent.  Meanwhile, SPY gained 1.25%, DIA gained 0.79%, and QQQ gained 1.64%.  VXX fell 5.85% to close at 44.10 and T2122 climbed out of its oversold territory to the center of its mid-range, closing at 46/15.  On the bond side, 10-Year bond yields continue their post-election rally to close up at 4.602% while Oil (WTI) rallied on the day to close at $73.96 per barrel.  So, Friday saw the Bulls rally as we headed into the weekend.  A gap higher and slow, steady rally took up most of the open outcry session.  This happened on average volume in the QQQ, as well as below-average volume in the SPY and DIA.

The major economic news scheduled Friday was limited to the December ISM Mfg. report.  The December ISM Manufacturing Employment Index was down to 45.3 (compared to a 48.0 forecast and a November 48.1 reading).  On the headline number, December ISM Mfg. PMI came in higher at 49.3 (versus a 48.2 forecast and the Nov. 48.4 value).  On the price side, the December ISM Mfg. Price Index was up to 52.5 (compared to a 51.5 forecast and November’s 50.3 number). 

In Fed news, on Friday, Richmond Fed President Barkin said he expects the US economy to grow in 2025 despite the risks and uncertainties posed by the incoming administration (and Trump’s previous threats of across-the-board tariffs and massive deportations).  However, Barkin did admit it is hard to predict the economic impact of Trump policies until we see what he actually does (as opposed to what he promised or threatened).  Barkin said, “I think there is more upside risk than downside risk (on inflation) given the economy’s continued strength and the possibility of renewed wage and other price pressures.”  He continued, “I put myself in the camp of wanting to stay restrictive for longer as opposed to the other school, which would be that we’re done (fighting inflation).”  Later, Fed Governor Kugler also said there was much uncertainty due to the change in administration.  She told CNBC that uncertainty has led to there being “a view that we can take our time, to slow down and be more gradual while watching the data (to see what actually shakes out from new fiscal policies).” However, she said, “(if the resilient jobs market does lose steam) we would be ready to act in a different direction.” … “We’re always responding (to the economy) and seeing what is happening in front of us.” 

Overnight, Asian markets were mixed but leaned toward the red side.  India (-1.62%) and Japan (-1.47%) were by far the biggest loser in the region while Taiwan (+2.79%) and South Korea (+1.91%) were far and away the biggest gainers.  In Europe, we see a much greener picture with 12 of the 14 bourses above break-even at midday.  The CAC (+2.16%), DAX (+1.35%), and lagging FTSE (+0.13%) lead the region higher on volume in early afternoon trade.  In the US, as of 8 a.m., Futures are pointing toward a gap higher.  The DIA implies a +0.43% open, the SPY is implying a +0.84% open, and the QQQ implies a +1.09% open at this hour.  At the same time, 10-Year Bond yields are “down” to 4.596% while Oil (WTI) is up 0.80% to $74.55 per barrel in early trading.

The major economic news scheduled for Monday are limited to the December Federal Budget Balance at 2 p.m.  The major earnings reports scheduled before the open are limited to CMC.  There are no reports scheduled for after the market close.

So far this morning, CMC beat on both the top and bottom lines.

In economic news later this week, on Tuesday we get December Core PPI and Dec. PPI.  Then Wednesday, December Core CPI, December CPI, and NY Fed Empire State Mfg. Index are reported.  On Thursday, we get December Core Retail Sales, Dec. Retila Sales, Dec. Philly Fed Mfg. Index, Dec. Philly Fed Mfg. Employment Index, Dec. Export Price index, Dec. Import Price Index, Nov. Business Inventories, and Nov. Retail Inventories.  Finally, on Friday, we get Preliminary Dec. Building Permits, Dec. Housing Starts, Dec. Industrial Production, and Nov. TIC Net Long-Term Transactions.

In terms of earnings reports later this week, on Tuesday we hear from RPM and AIR.  Then Wednesday, AYI, ACI, HELE, MSM, RDUS, UNF, JEF, and PSMT report.  On Thursday, we hear from KBH.  Finally, on Friday, STZ, DAL, SNX, WBA, and WDFC report.

With that background, it looks like the Bulls are running this morning. All three major index ETFs gapped up to start the premarket and have put in white-body candles since then. SPY and QQQ both are giving us large-body, small-wick white candles. However, DIA is more uncertain giving us a white Spinning Top but has at least crossed back above its T-line in the early session.  That being the case, the short-term trend is bullish. Looking further out, the premarket moves are testing the downtrend lines in the DIA and QQQ, but all three remain in a mid-term downtrend.  In the long-term, looking at higher-timeframe charts, the market remains in a strong bull trend.  In terms of extension, none of the three are extended from their T-line (8ema) based on the early session.  Meanwhile, T2122 sits in the center of its mid-range. So, the market has room to run either direction, but the Bulls have ground they want to recapture and a little momentum on their side. In terms of the 10 Big Dogs, all 10 are in the green at this point of the morning. AMD (+2.88%) and NVDA (+2.61%) are out front leading the tech rally.  On the other end, NFLX (+0.02%%) is the laggard.  Once again, TSLA (+2.30%) is the leader in terms of dollar-volume traded but only by 20% above NVDA in terms of dollars traded. 

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

The Bulls tried to rebound Thursday…they tried.  SPY gapped up 0.87%, DIA gapped up 0.82%, and QQQ gapped up 0.88%.  At that point, all three major index ETFs sold off.  SPY and DIA fell two-thirds of the way back across their gaps by 10:40 a.m. while QQQ completely recrossed its gap during the same time.  From there, SPY and DIA chopped up and down in their gaps all day.  (Well, SPY fell just below its gap the last few minutes of the day.)  Meanwhile, QQQ chopped along the bottom of its gap and then drove South the last 30 minutes.  This action gave us black candles with small upper wicks in all three major index ETFs.  All three remain below their T-line (8ema) while SPY retested its 50sma (and failed the test) from below. Also, while DIA printed an 11^th-straight black candle, it did break the streak of down candles at 10.  This all happened on just-above-average volume in all three major index ETFs.

On the day, eight of the 10 of the sectors were in the red as Basic Materials (-0.94%) was way out front leading the way lower.  On the other side, Utilities (+0.79%) held up far better than any of the other sectors.  Meanwhile, SPY lost 0.03%, DIA gained 0.08%, and QQQ lost 0.45%. VXX spiked another 8.55% to close at 56.14 and T2122 climbed very slightly but remains at the bottom of its oversold territory to close at 0.93. On the bond side, 10-Year bond yields spiked again to close down to 4.572% while Oil (WTI) fell 1.03% to close at $69.85 per barrel.  So, Thursday saw Bulls try to bounce back at the open.  However, it was a short-lived attempt as all three major index ETFs almost immediately fell back into the gap and ended the day very near their lows.

The major economic news scheduled Thursday includes Weekly Initial Jobless Claims, which came in lower than expected at 220k (compared to a 229k forecast and well down from the prior week’s 242k).  On the ongoing side, Weekly Continuing Jobless Claims were also down to 1,874k (versus the 1,890k forecast and 1,879k prior week value).  At the same time, the Q3 Core PCE Price Index was down to 2.20% (still higher than the 2.10% forecast but well-down from Q2’s 2.80% reading).  Meanwhile, the Q3 GDP (Quarter-on-Quarter) was up to 3.1% (compared to a 2.8% forecast and even up from Q2’s 3.0% value).  On the price side, the Q3 GDP Price Index was down to 1.9% (in-line with the 1.9% forecast but far down from Q2’s 2.5% reading).  At the same time, the Philly Fed Mfg. Index was down to -16.4 (versus a +2.9 forecast and the November -5.5 value).  In terms of employment, the Philly Fed Mfg. Employment Index was down to 6.6 (compared to November’s 8.6 reading).  Later, Nov. Existing Home Sales were higher than anticipated at 4.15 million (versus a 4.09 million forecast and well up from October’s 3.96 million number).  At the same time, the Nov. US Leading Economic Indicator Index was up sharply to +0.3% (compared to a -0.1% forecast and up sharply from October’s -0.4% value).  At the close, Oct. TIC Net Long-Term Transactions were down to $152.3 billion (versus September’s $216.1 billion).  Then after the close, Fed’s Balance Sheet was down $8 billion on the week from $6.897 trillion to $6.889 trillion. 

After the close, NKE reported beats on both the revenue and earnings lines.  At the same time, BB, FDX and AVO missed on revenue while beating on earnings.  (AVO missed massively on revenue and beat massively on earnings.)  However, SCHL missed on both the opt and bottom lines.

Overnight, Asian markets were nearly all red.  Only New Zealand (+1.18%) bucked the trend as the other 11 exchanges were under water.  Taiwan (-1.84%), India (-1.52%), and Australia (-1.24%) led the region lower.  In Europe, we see a clean sweep by the Bears at midday.  The CAC (-1.22%), DAX (-1.50%), and FTSE (-0.87%) lead that region lower in early afternoon trade.  Meanwhile, in the US, as of 87:20 a.m., Futures are pointing toward a significant gap lower as Republicans killed the negotiated CR deal on Elon Musk (and later Trump’s) order.  Then they flat out failed to produce any alternative.  So, the US government is set to shutdown tonight.  (Asia tanked on that news and Europe followed.  So, the best guess is that is why we are headed lower to start the day as well.)  The DIA implies a -0.54% open, the SPY is implying a -0.98% open, and the QQQ implies a -1.56% open at this hour.  At the same time, 10-Year Bond yields are “down” to 4.536% and Oil (WTI) is off one percent to $68.70 per barrel in early trading.

The major economic news scheduled for Friday include November Core PCE Price Index, Nov. PCE Price Index, and Nov. Personal Spending (all at 8:30 a.m.), Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations (all at 10 a.m.).  The major earnings reports scheduled for before the open are limited to CCL and WGO.  Then, after the market, there are no reports scheduled. Also, don’t forget that today is triple witching, with stock options, stock index options, and stock index futures all expiring.

So far this morning, WGO missed on both the top and bottom lines.

With that background, it looks like more blood in the streets is in order for Friday.  All three major index ETFs gapped significantly lower to start the premarket.  All three have also followed-through with black-bodied candles with small upper wicks since that start.  That being the case, the short-term trend is very, very bearish. Looking further out, all three have now broken their daily mid-term uptrend lines, but have not yet formed bearish trends.  In the long-term, looking at higher-timeframe charts, this is nothing but a blip in a strong bull trend.  In terms of extension, all three are very extended below their T-line (8ema) based on the early session.  Meanwhile, T2122 is also deep in its oversold territory.  (Less than a point from that indicator’s theoretical oversold limit.) So, the Bulls certainly have reversion to the mean on their side.  However, the Bears have all the momentum and the news cycle in their corner.  In terms of the 10 Big Dogs, all 10 are in significant red numbers at this point of the morning. TSLA (-4.99%) is way out front leading the tech selloff.  On the other end, AAPL (-1.13%) and MSFT (-1.15%) are holding up best.  Once again, TSLA is the leader in terms of dollar-volume traded by about 3 times over NVDA (with the next closest 5 times less in dollar-volume than NVDA).  Finally, remember its Friday…payday…and time to prepare for the weekend news cycles. Also, be aware of triple witching activity in the afternoon.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

On Wednesday, markets started out little changed.  SPY opened 0.04% lower, DIA opened 0.09% higher, and QQQ opened down 0.14%.  From there all three major index ETFs rallied the first hour and then wobbled sideways until 2 p.m.  Then the Fed news started coming out and all three sold off sharply and continuously until a tiny bounce at the end of the day.  This action gave us huge black candles and what could be called Bearish Trader’s Best Friend in the SPY, DIA, and QQQ. SPY and QQQ both crossed below their T-line (8ema), with SPY and DIA both also crossing below their 50sma.  For DIA, this was a 10^th consecutive black candle and lower close in the DIA.  That is the first time this has happened since 1974.  This all took place on well-above-average volume in all three major index ETFs.

On the day, all 10 of the sectors were in the red as Consumer Cyclical (-3.80%) led the way lower.  (However, half the sectors lost more than 3%.)  On the other side, it was Tuesday’s big loser, Communications Service (-1.79%) held up better than any of the other sectors.  Meanwhile, SPY lost 2.98%, DIA lost 2.61%, and QQQ lost 3.61%. VXX spiked 16.78% to close at 51.72 and T2122 fell all the way down to the bottom of its oversold territory to close at 0.82. On the bond side, 10-Year bond yields spiked higher to close down to 4.504% while Oil (WTI) was flat to close at $70.00 per barrel.  So, on Wednesday, the market was all about the Fed…and the market was not pleased with what it heard (see below).  What had started as a modestly bullish day after the modest morning rally turned into a bloodbath the last two hours of the day. 

The major economic news scheduled Wednesday included Preliminary Nov. Building Permits, which came in higher than expected at 1.505 million (compared to a forecast of 1.430 million and an October reading of 1.419 million). At the same time, Q3 Current Account was down again to -$310.90 billion (versus a forecast of -$286.0 billion and a Q2 -$275.0 billion number).  Meanwhile, Nov. Housing Starts were down coming in at 1.289 million (compared to the 1.350 million forecast and October’s 1.312 million value).  Later, the EIA Weekly Crude Inventories showed a smaller-than-predicted drawdown of 0.934 million barrels (versus a forecasted 1.600-million-barrel drawdown and the prior week’s 1.425-million-barrel draw).  Then at 2 p.m., the Fed Interest Rate Decision was a quarter-point cut as anticipated, down to 4.50% compared to the previous 4.75%.  At the same time, Fed Q4 Current Year Interest Rate Projection was stable at 4.4% while the Q4 1^st Year Interest Rate Projection spiked half a percent to 3.9% (up from the prior quarter’s 3.4%).  Looking further out, the Fed Q4 2^nd Year Interest Rate Projection also rose to 3.4% (from the previous value of 2.9%) while the Q4 3^rd Year Interest Rate Projection rose less to 3.1% (compared to the previous 2.9% value).  Far out on the horizon, the Q4 Longer-Term Interest Rate Projection rose a tick to 3.0% (versus the previous quarter’s 2.9% forecast).

In Fed news, as mentioned, the FOMC cut rates a quarter percent as the market had expected.  However, at the same time as the rate-cut announcement, updates to the Fed “Dot Plots” (average of FOMC member interest rate forecasts) showed that they now only expect two quarter-point rate cuts in 2025, with Fed Funds ending 2025 at 4.00%.  It also showed they expect 2024 inflation (PCE inflation rate) to come in at 2.4% and 2025 to ends at 2.5%.  Later, in his press conference, Fed Chair Powell said it is too soon to tell what the new Trump Administration will do to the economy.  When questioned about it, Powell said, “it’s very premature to make any kind of conclusions. We don’t know what will be tariffed, from what countries, for how long, in what size …We need to take our time, not rush and see what the new president delivers.” (Trump campaigned on heavy tariffs, which would be hugely inflationary as well as being economically restrictive.  On the other hand, he also campaigned on more tax cuts for corporations and the wealthy, which would theoretically lead to economic expansion…but lead to an increased deficit.  However, Trump is not known for telling the truth or being consistent. So, time will tell.)  Powell went on to say, “From this point forward it’s appropriate to move forward cautiously and look for progress on inflation … from now we are in place where the risks are in balance.”

After the close, MLKN and SCS reported beats on both the revenue and earnings line.  Meanwhile, MU missed on revenue while beating on earnings.  On the other side, WS beat on revenue while missing on earnings.  However, LEN missed on both the top and bottom lines.

Overnight, Asian markets were mostly red in sympathy with the US.  Shenzhen (+0.61%) was the only appreciable gainer (Malaysia at +0.03% did also hang onto green).  On the other side, South Korea (-1.95%), Australia (-1.70%), and Thailand (-1.53%) led the broad-based losses.  In Europe, we see a similar picture taking shape at midday.  Only Portugal (+0.33%) is in the green as 13 of the 14 bourses are red at midday.  The CAC (-1.54%), DAX (-1.22%), and FTSE (-1.39%) lead the region lower in early afternoon trade.  Meanwhile, in the US, at of 7 a.m., Futures are pointing toward a modest rebound to start the day.  The DIA implies a +0.32% open, the SPY is implying a +0.35% open, and the QQQ implies a +0.23% open at this early hour.  At the same time, 10-Year Bond yields continue to run higher at 4.534% while Oil (WTI) is off 0.21% to $70.43 per barrel in early trading.

The major economic news scheduled for Thursday includes Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q3 Core PCE Price Index, Q3 GDP, Q3 GDP Price Index, Philly Fed Mfg. Index, and Philly Fed Mfg. Employment (all at 8:30 a.m.), Nov. Existing Home Sales and Nov. US Leading Economic Indicator Index (both at 10 a.m.), Oct. TIC Net Long-Term Transactions (4 p.m.), and the Fed’s Balance Sheet (4:30 p.m.).  However, the major earnings reports scheduled for before the open include ACN, KMX, CTAS, CAG, DRI, FDS, LW, and PAYX.  Then, after the market, BB, FDX, AVO, NKE, and SCHL report.

In economic news later this week, on Friday, November Core PCE Price Index, Nov. PCE Price Index, Nov. Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Friday, CCL and WGO report.

So far this morning, ACN beat on both the revenue and earnings lines.  However, LW missed on both the top and bottom lines.

With that background, the market seems to be trying to bounce off of the huge drops on Thursday.  However, this is a very indecisive bounce with all three major index ETFs giving a premarket modest gap up, but then printing mostly wicks and little body in the early session candles. After Thursday, all three are far below their T-line (8ema).  That being the case, the short-term trend is bearish. However, looking further out, the mid-term and longer-term trends remain bullish.  In terms of extension, SPY and especially DIA are stretched below their T-line at this point. (Having been the strongest prior to Thursday’s move, QQQ is not quite as stretched.) Meanwhile, T2122 is deep in its oversold territory.  (Less than a point from that indicator’s theoretical oversold limit.) So, the Bulls certainly have room to run today. However, coming off the Fed reduction in predicted future cuts, the Bears have the momentum.  In terms of the 10 Big Dogs, nine of the 10 are in green numbers at this point of the morning. TSLA (+2.43%) and NVDA (+1.92%) are leading the group higher.  On the other end, AAPL (-0.21%) is the laggard in the bounce. Once again, TSLA is the leader in terms of dollar-volume traded by about 3 times over NVDA (with the next closest 8 times less in dollar-volume than NVDA). 

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets gapped lower on Tuesday.  SPY gapped down 0.42%, DIA gapped down 0.49%, and QQQ gapped down 0.33%.  From there, all three major index ETFs meandered around their opening level, but DIA was the weakest, never quite getting back to the open in the afternoon.  (It is worth noting this was DIA’s nineth-consecutive black, candle and down day…its worst streak since 1978.)  This action gave us Doji-like, indecisive candles in all three.  QQQ was the best-looking candle, printing a black, Spinning Top of Doji-like candle that was also a Bearish Harami (inside day).  At the same time, SPY gapped down below its T-line (8ema) and retested and failed that level on the way to printing a Doji.  Finally, DIA made a big gap-down, black-bodied Spinning Top candle that retested its 50sma and closed above.

On the day, eight of the 10 of the sectors were in the red as Communications Services (-1.13%) and Financial Services (-1.07%) leading the way lower.  On the other side, Healthcare (+0.16%) held up better than any of the other sectors.  Meanwhile, SPY lost 0.41%, DIA lost 0.65%, and QQQ lost 0.44%.  VXX climbed 2.48% to close at 44.29 and T2122 dropped back into the bottom of its oversold territory to close at 6.09.  On the bond side, 10-Year bond yields reversed after an overnight move higher to close down to 4.397% while Oil (WTI) dropped 0.74% to close at $70.19 per barrel.  So, on Tuesday, the market was all about the open. After that start, all three major index ETFs just meandered in waves back-and-forth across the opening level.  This all happened on not far below-average volume in SPY, DIA, and QQQ.

The major economic news scheduled for Tuesday included Nov. Month-on-Month Core Retail Sales, which came in flat at +0.2% (compared to a +0.4% forecast but in-line with October’s +0.2% reading). On the headline side, Nov. Month-on-Month Retail Sales were up +0.7% (higher than the +0.6% forecast and October’s +0.5% number).  Later, the Nov. Month-on-Month Industrial Production was up but still down at -0.1% (versus the +0.3% forecast but better than October’s -0.4% value).  On an annualized basis, Nov. Year-on-Year Industrial Production were down at -0.90% (compared to a forecasted +0.10% and worse than October’s -0.45% reading).  Later, Oct. Business Inventories were up +0.1% (versus the forecasted +0.2% and September’s flat 0.0%).  At the same time, Oct. Retail Inventories were steady at +0.1% (compared to the forecast and prior month value of +0.1%).  Then, after the close, the API Weekly Crude Oil Stocks report showed an unexpectedly large 4.700-million-barrel drawdown (versus a forecasted 1.850-million-barrel drawdown and the previous week’s 0.499-million-barrel inventory build).

In Fed news, the Fed quiet period ends Wednesday with the rate decision, statement, and Fed Chair Press Conference.  So, no Fed news Tuesday.

After the close, HEI reported a miss on revenue while beating on earnings.

Overnight, Asian markets were mixed, but leaned toward the green side with seven of the 12 exchanges above break-even while another was unchanged.  South Korea (+1.12%) was by far the biggest mover and gainer.  On the other side, Japan (-0.72%) paced the losses.  In Europe, the market outlook is brighter with 12 of the 14 bourses in the green at midday.  The CAC (+0.27%), DAX (+0.29%), and FTSE (+0.15%) lead the region higher in early afternoon trade.  In the US, as of 7:30 a.m., Futures are now pointing to a moderate gap up to start the morning.  The DIA implies a +0.30% open, the SPY is implying a +0.31% open, and the QQQ implies a +0.29% open at this hour.  At the same time, 10-Year Bond yields are back up to 4.413% and Oil (WTI) is up 0.86% to $70.68 per barrel in early trading. 

The major economic news scheduled for Wednesday include Preliminary Nov. Building Permits, Q3 Current Account, and Nov. Housing Starts (all at 8:30 a.m.), EIA Weekly Crude Inventories (10:30 a.m.), Fed Interest Rate Decision, FOMC Statement, Q4 Current Year Interest Rate Projection, Q4 1^st Year Interest Rate Projection, Q4 2^nd Year Interest Rate Projection, Q4 3^rd Year Interest Rate Projection, Q4 Longer-Term Interest Rate Projection (all at 2 p.m.), and the FOMC Chair Press Conference (2:30 p.m.).  However, the major earnings reports scheduled for before the open include ABM, BIRK, GIS, JBL, and TTC.   Then, after the market, LEN, MU, MLKN, SCS, and WS report.

In economic news later this week, on Thursday we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q3 Core PCE Price Index, Q3 GDP, Q3 GDP Price Index, Philly Fed Mfg. Index, Philly Fed Mfg. Employment, Nov. Existing Home Sales, Nov. US Leading Economic Indicator Index, Oct. TIC Net Long-Term Transactions, and the Fed’s Balance Sheet.  Finally, on Friday, November Core PCE Price Index, Nov. PCE Price Index, Nov. Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Thursday, we hear from ACN, KMX, CTAS, CAG, DRI, FDS, LW, PAYX, BB, FDX, AVO, NKE, and SCHL.  Finally, on Friday, CCL and WGO report.

So far this morning, AMTM beat on both the top and bottom lines.

With that background, the market seems bullish so far in the premarket early session as more than 95% of Fed Fund Futures trades are expecting a quarter-point cut this afternoon.  All three major index ETFs gapped up to open the premarket and have followed through with white-bodied candles to this point.  SPY has crossed back above its T-line (8ema) and QQQ is headed back toward its all-time high.  With two of the three above their T-line and one below its 8ema, the short-term trend has to be seen as weakly bullish.  However, further out, obviously the mid-term and longer-term trends also remain bullish with index ETFs sitting near those all-time highs.  In terms of extension, yesterday’s pullback helped the T-line make up some ground on the QQQ and this morning’s premarket move higher is helping DIA relieve some of its stretch to the downside.  So, none of them are overly extended from the 8ema.  Meanwhile, the T2122 indicator is deep in its oversold territory.  So, the Bulls have more room to run today. In terms of the 10 Big Dogs, seven of the 10 are in green numbers at this point of the morning. NVDA (+2.76%) is far and away the leader of the group.  On the other end, TSLA (-1.94%) is the biggest loser by 1.80%.  Once again, TSLA is the leader in terms of dollar-volume traded by about 1.75 times over NVDA (with the next closest 15 times less in dollar-volume than NVDA). 

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

DIA diverged from the broader index ETFs Monday.  SPY gapped up 0.25%, DIA opened 0.08% higher, and QQQ gapped up 0.47%. At that point, SPY and QQQ both followed through with a long, slow, but steady rally.  This went on until 3:30 p.m. when both SPY and QQQ sold off the last half hour.  For its part, after opening flat, DIA just chopped sideways for 90 minutes and then sold off for an hour before grinding to the side until 3:30 p.m.  During that last 30 minutes, it too sold off sharply. This action gave us three divergent candles in the major index ETFs.  The QQQ was clearly the bullish leader, gapping higher and then printing a large white-body candle with a small upper wick.  Some would even call it a Trader’s Best Friend signal.  Meanwhile, SPY gave us a gap-up, white-bodied, Spinning Top that retested, and passed the test of, its T-line (8ema).  Finally, DIA printed a black-body candle with a significant upper wick.

On the day, six of the 10 of the sectors were in the red again as Energy (-2.10%) and Communications Services (-1.78%) were far and away the worst-performing sectors. On the other side, Technology (+1.11%) was way, way out front of the other gaining sectors (by 0.90%).  Meanwhile, SPY gained 0.42%, DIA lost 0.23%, and QQQ gained 1.44%.  (In the process, QQQ printed yet another new all-time high and new all-time high close.)  VXX was up 1.69% to close at 43.22 and T2122 climbed, but remained in the top half of its oversold territory to close at 13.11.  On the bond side, 10-Year bond yields climbed yet again to 4.405% while Oil (WTI) dropped 1.00% to close at $70.58 per barrel.  So, Monday gave us gaps higher with follow-through from the SPY and especially the QQQ.  Meanwhile, DIA continued its selloff, printing an eighth-straight black-bodied candle and lower close.  This all happened on below-average volume in all three major index ETFs.

The major economic news scheduled for Monday included the NY Empire State Mfg. Index, which came in sharply lower at +0.20 (compared to a forecast of 6.40 and far below November’s 31.20 reading).  Later, Preliminary December S&P Global Mfg. PMI was down slightly to 48.3 (versus a 49.4 forecast and a November value of 49.7).  At the same time, Preliminary December S&P Services PMI was up at 58.5 (compared to a 55.7 forecast and November’s 56.1 number).  Together, these gave us a Preliminary December S&P Global Composite PMI, which was higher at 56.6 (versus a 55.1 forecast and a November’s 54.9 reading).

In Fed news, we are in the Fed quiet period as the FOMC meeting begins Tuesday. 

Overnight, Asian markets leaned heavily toward the red side with just one of the 12 exchanges in positive territory.  Thailand (-1.70%), India (-1.35%), and South Korea (-1.29%) led the region lower.  In Europe, the story is shaping up to be very similar.  Only three of the 14 bourses are in the green (barely) at midday.  The CAC (+0.15%), DAX (+0.01%), and FTSE (-0.80%) are leading the region lower in early afternoon trade.  In the US, as of 7:15 a.m., Futures are pointing toward a down start to the day.  The DIA implies a -0.35% open, the SPY is implying a -0.31% open, and the QQQ implies a -0.18% open at this hour.  At the same time, 10-Year Bond yields are running higher to 4.436% and Oil (WTI) is down one percent to $70.00 per barrel in early trading.

The major economic news scheduled for Tuesday includes Nov. Core Retail Sales and Nov. Retail Sales (both at 8:30 a.m.), Nov. Industrial Production (9:15 a.m.), Oct. Business Inventories and Oct. Retail Inventories (both at 10 a.m.), and the API Weekly Crude Oil Stocks report (4:30 p.m.).  However, the major earnings reports scheduled for before the open are limited to AMTM. Then, after the market, HEI and WOR report.

In economic news later this week, on Wednesday, Preliminary No. Building Permits, Q3 Current Account, Nov. Housing Starts, EIA Weekly Crude Inventories, Fed Interest Rate Decision, FOMC Statement, Q4 Current Year Interest Rate Projection, Q4 1^st Year Interest Rate Projection, Q4 2^nd Year Interest Rate Projection, Q4 3^rd Year Interest Rate Projection, Q4 Longer-Term Interest Rate Projection, and FOMC Chair Press Conference are reported.  On Thursday we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q3 Core PCE Price Index, Q3 GDP, Q3 GDP Price Index, Philly Fed Mfg. Index, Philly Fed Mfg. Employment, Nov. Existing Home Sales, Nov. US Leading Economic Indicator Index, Oct. TIC Net Long-Term Transactions, and the Fed’s Balance Sheet.  Finally, on Friday, November Core PCE Price Index, Nov. PCE Price Index, Nov. Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Wednesday, ABM, BIRK, GIS, JBL, TTC, LEN, MU, MLKN, SCS, and WS report.  On Thursday, we hear from ACN, KMX, CTAS, CAG, DRI, FDS, LW, PAYX, BB, FDX, AVO, NKE, and SCHL.  Finally, on Friday, CCL and WGO report.

So far this morning, AMTM beat on both the top and bottom lines.

With that background, the market seems bearish so far in the early session.  All three major index ETFs gapped down to open the premarket, although DIA clearly was most bearish while the others gave up ground grudgingly.  Since that start, all three have printed Doji-type, indecisive candles in the early session.  SPY is retesting its T-line (8ema) from above. Once again, at the moment, SPY and QQQ are above their T-line while DIA remains below its own T-line.  It is worth remembering that SPY and QQQ still sit at or near all-time highs, but DIA has given back 2%-3% since its highs.  With one of the three above its T-line, one right at that 8ema, and one below its T-line again, the short-term trend has to be seen as undecided.  However, further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, as of last night, QQQ was getting stretched above and as of this morning DIA is getting a little stretched below its T-line.  Meanwhile, the T2122 indicator remains well into its oversold territory.  So, both sides of the market have room to move and its hard to say whether the cliff-diving DIA or the spiking QQQ is more of an indicator.  In terms of the 10 Big Dogs, nine of the 10 are in red numbers at this point of the morning. NVDA (-1.80%) and AMD (-1.67%) lead the pack lower, while TSLA (+2.60%) sits 2.70% better off than any of the others.  Once again, TSLA is the leader in terms of dollar-volume traded by about 2.25 times over NVDA (with the next closest 12 times less in dollar-volume than NVDA). 

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

On Friday, we saw a bit of a Bull trap.  SPY gapped up 0.29%, DIA opened 0.13% higher, and QQQ gapped up 0.74%.  At that point, all three major index ETFs took 20 minutes to get ready before selling off.  SPY sold off recrossing the gap and continuing South self to the lows at 11:15 a.m., and then drifted sideways with a very slight bullish trend, ending up very near the previous close.  DIA recrossed its gap more quickly but did not sell off as far, reaching its lows at 12:25 p.m. and spending most of the day meandering along the lows, never getting that afternoon modest rally.  Meanwhile, QQQ sold off most sharply but stopped at about 11:10 a.m. before starting a long slow rally back up above the open.  This action gave us a black-bodied, large-body Spinning Top candle in the SPY that crossed just back below its T-line (8ema) after having gapped above it.  DIA printed the same black-body, large-body, Spinning Top candle but with a smaller gap up.  It also printed a seventh-consecutive black and down-close candle.  Finally, QQQ gave us a long-legged, technically black-body, Doji that printed a new all-time high and new all-time high close.

On the day, nine of the 10 of the sectors were in the red again as Basic Materials (-1.41%) was far and away the worst-performing sector. On the other side, Technology (+0.15%) held up better than the other sectors and was the only one in the green. Meanwhile, SPY lost 0.01%, DIA lost 0.20%, and QQQ gained 0.77%. VXX was just on the green side of flat to close at 42.50 and T2122 dropped deeper into the oversold territory to close at 7.06.  On the bond side, 10-Year bond yields climbed yet again to 4.395% while Oil (WTI) climbed 1.51% to close at $71.08 per barrel.  So, once again Friday we saw most of the move happen at the open.  After that there was some reversal, but the afternoon was essentially some form of a sideways grind. This all took place on below-average volume in all three major index ETFs.

The major economic news scheduled for Friday were limited to November Export Price Index, which came in flat at 0.0% (compared to a -0.2% but far better than October’s +1.0% reading).  On the other side, the November Import Price Index was unchanged at +0.1% (versus a forecasted -0.2% but in-line with October’s +0.1% value).

In Fed news, we have started the quiet period ahead of this week’s FOMC meeting. 

Overnight, Asian markets were mixed, but leaned toward the red side.  Shenzhen (-1.30%), Hong Kong (-0.88%), and Thailand (-0.83%) paced the nine losers while New Zealand (+0.34%) and Singapore (+0.28%) led the three gainers.  In Europe, 13 of the 14 bourses are in the red at midday.  The CAC (-0.68%), DAX (-0.27%), and FTSE (-0.29%) are leading the region lower in early afternoon trade.  In the US, as of 6 a.m., Futures are pointing toward a modest green start to the day.  The DIA implies a +0.08% open, the SPY is implying a +0.17% open, and the QQQ implies a +0.29% open at this hour.  At the same time, 10-Year Bond yields are down slightly to 4.381% and Oil (WTI) is off 1.08% to $70.52 per barrel in very early trading.

The major economic news scheduled for Monday includes NY Empire State Mfg. Index (8:30 a.m.), Preliminary December S&P Global Mfg. PMI, Preliminary December S&P Services PMI, and Preliminary December S&P Global Composite PMI (all at 9:45 a.m.).  However, there are no major earnings reports scheduled either before or after the market.

In economic news later this week, on Tuesday we get Nov. Core Retail Sales, Nov. Retail Sales, Nov. Industrial Production, Oct. Business Inventories, Oct. Retail Inventories, and the API Weekly Crude Oil Stocks report.  Then Wednesday, Preliminary No. Building Permits, Q3 Current Account, Nov. Housing Starts, EIA Weekly Crude Inventories, Fed Interest Rate Decision, FOMC Statement, Q4 Current Year Interest Rate Projection, Q4 1^st Year Interest Rate Projection, Q4 2^nd Year Interest Rate Projection, Q4 3^rd Year Interest Rate Projection, Q4 Longer-Term Interest Rate Projection, and FOMC Chair Press Conference are reported.  On Thursday we get Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Q3 Core PCE Price Index, Q3 GDP, Q3 GDP Price Index, Philly Fed Mfg. Index, Philly Fed Mfg. Employment, Nov. Existing Home Sales, Nov. US Leading Economic Indicator Index, Oct. TIC Net Long-Term Transactions, and the Fed’s Balance Sheet.  Finally, on Friday, November Core PCE Price Index, Nov. PCE Price Index, Nov. Personal Spending, Michigan Consumer Sentiment, Michigan Consumer Expectations, Michigan 1-Year Inflation Expectations, and Michigan 5-Year Inflation Expectations are reported.

In terms of earnings reports later this week, on Tuesday we hear from AMTM, HEI, and WOR. Then Wednesday, ABM, BIRK, GIS, JBL, TTC, LEN, MU, MLKN, SCS, and WS report.  On Thursday, we hear from ACN, KMX, CTAS, CAG, DRI, FDS, LW, PAYX, BB, FDX, AVO, NKE, and SCHL.  Finally, on Friday, CCL and WGO report.

With that background, the market seems bullish although divergently so.  All three major index ETFs opened the premarket with a modest gap higher. However, they have diverged in action since that point.  SPY has printed a small, white-bodied candle with no wick or Marubozu. At the same time, DIA has printed an uncertain Doji candle inside Thursday’s candle.  Finally, QQQ has given us a larger Marubozu candle and now sits at all-time highs in the early session.  Once again, SPY and QQQ are above their T-line (8ema) while DIA remains below its own T-line.  It is worth remembering that SPY and QQQ still sit at or near all-time highs, but DIA has given back 2%-3% since its highs.  With one of the three above its T-line, one right at that 8ema, and one below its T-line, the short-term trend has to be seen as undecided.  However, looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, none of the three major index ETFs are too stretched from their T-lines.  Meanwhile, the T2122 indicator is back deep into its oversold territory.  So, while both sides of the market have room to move if they can find momentum, the Bulls have more rope to work with today.  In terms of the 10 Big Dogs, early, seven of the 10 are in green numbers at this point of the morning. GOOGL (+0.77%) and AMD (+0.57%) pace the winners while NVDA (-0.49%) and NFLX (-0.44%) are the laggards. Once again, TSLA (+0.43%) is leading the dollar-volume traded by about 2.5 times over NVDA with the next closest 8 times less dollar-volume than NVDA. 

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Markets were mostly in a sideways meander on Thursday.  SPY opened down 0.14%, DIA opened dead flat, and QQQ gapped down 0.41%. From there all three major index ETFs ground sideways until 12:20 p.m.  At that point, SPY and QQQ continued in their sideways wobble until 1:30 p.m.  Then they started a slow, steady selloff.  However, at 12:20 p.m. DIA led by beginning its slow steady selloff 70 minutes early.  This action gave us black-bodied candles in all three major index ETFs.  SPY tested and crossed down, barely, its T-line (8ema).  DIA printed its sixth-straight black candle with a lower close. Finally, QQQ printed the smallest-bodied candle that was also a Bearish Harami but remains comfortably above its T-line.  This happened on below-average volume in all three.

On the day, nine of the 10 of the sectors were in the red as Basic Materials (-1.40%) and Healthcare (-1.30%) were out front leading the way lower. On the other side, Consumer Defensive (+0.07%) held up better than the other sectors and was the only one in the green.  Meanwhile, SPY lost 0.52%, DIA lost 0.51%, and QQQ lost 0.65%.  VXX gained 0.81% to close at 42.47 and T2122 dropped back down into its oversold territory to close at 13.95. On the bond side, 10-Year bond yields jumped up to 4.336% while Oil (WTI) fell a third of a percent to close at $70.05 per barrel.  So, Thursday was punctuated by a gap lower in DPY and QQQ and then a modest, but steady, afternoon selloff in all three major index ETFs.

The major economic news scheduled for Thursday included Weekly Initial Jobless Claims, which came in higher than expected at 242k (compared to a forecast of 221k and the prior week’s 225k reading).  On the ongoing side, Weekly Continuing Jobless Claims were also slightly higher than anticipated at 1,836k (versus the 1,880k forecast and up from the previous week’s 1,871k).  At the same time, Month-on-Month Nov. Core PPI was down as predicted to +0.2% (compared to a 0.2% forecast and down a tick from October’s +0.3% value).  On the headline number, Month-on-Month Nov. PPI was unexpectedly up to +0.4% (versus a +0.2% forecast and the +0.3% October reading). Later, after the close, the Fed Balance Sheet showed a very modest increase of $1 billion on the week, climbing to $6.897 trillion.

In Fed news, we have started the Fed quiet period ahead of next week’s meeting. 

After the close, AVGO and COST reported misses on revenue while beating on earnings.  On the other side, RH beat on revenue while missing on earnings.

Overnight, Asian markets were mixed with five exchanges in green and seven, including the biggest movers, in red.  Shenzhen (-2.23%) Hong Kong (-2.09%), and Shanghai (-2.01%) led the region lower.  In Europe, we see the opposite picture with four of the 14 bourses in red while 10 sit in the green at midday.  The CAC (+0.25%), DAX (+0.24%), and FTSE (+0.11%) lead the region modestly higher in early afternoon trade. Meanwhile, in the US, as of 7:30 a.m., Futures are pointing toward a green start.  The DIA implies a +0.12% open, the SPY is implying a +0.35% open, and the QQQ implies a +0.79% open at this hour.  At the same time, 10-Year Bond yields are up to 4.351% and Oil (WTI) is up 0.71% to $70.53 per barrel in early trading.

The major economic news scheduled for Friday are limited to November Export Price Index and November Import Price Index (both at 8:30 a.m.).  There are no major earnings reports scheduled either before or after the market.

With that background, the market seems bullish although divergently so.  All three major index ETFs opened the premarket with a modest gap higher. However, they have diverged in action since that point.  SPY has printed a small, white-bodied candle with no wick or Marubozu. At the same time, DIA has printed an uncertain Doji candle inside Thursday’s candle.  Finally, QQQ has given us a larger Marubozu candle and now sits at all-time highs in the early session.  Once again, SPY and QQQ are above their T-line (8ema) while DIA remains below its own T-line.  It is worth remembering that all three sit at or near all-time highs. However, with only two of the three sitting above their T-line the short-term trend has to be seen as modestly bullish.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, none of the three major index ETFs are too stretched from their T-lines.  Meanwhile, the T2122 indicator is back in its oversold territory.  So, while both sides of the market have room to move today if they can find momentum, the Bulls have a bite more rope to work with.  In terms of the 10 Big Dogs, six of the 10 are in red numbers at this point of the morning. NVDA (+1.38%) and AMD (+1.23%) pace the winners while META (-0.58%) is the laggard. Once again, TSLA (+1.08%) is leading the dollar-volume traded by about 1.5 times over NVDA with the next closest 3.5 times behind NVDA.  Lastly, remember its Friday and time to get your account ready for the weekend.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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

Wednesday saw the Bulls in charge after CPI numbers they liked.  SPY gapped 0.44% higher, DIA opened just 0.09% higher, and QQQ gapped up 0.84%.  From there, SPY and QQQ began a modest rally that lasted until noon before trading sideways in a tight range the rest of the day. For its part, after the flat open, DIA meandered back and forth across that tiny gap, but ended the day one a very modest two-hour selloff.  This action gave us a gap-up Bull Kicker type candle with an upper wick.  SPY crossed back above its T-line (8ema) and closed within pennies of another all-time high close.  Meanwhile, QQQ did give us a Bull Kicker candle with tiny upper wick and printed a new all-time high and new all-time high close.  Finally, DIA, ever the contrarian, gave us a black-bodied candle with upper wick and printed a 5^th consecutive black and down candle.  This all happened on below-average volume in all three major index ETFs.

On the day, seven of the 10 of the sectors were in the green as Technology (+1.62%) was way out front leading the market higher. On the other side, Healthcare (-0.67%) was the laggard.  Meanwhile, SPY gained 0.77%, DIA lost 0.27%, and QQQ gained 1.79%.  VXX fell almost another eight-tenths of a percent to close at 42.13 and T2122 climbed out of oversold territory and back into the mid-range to close at 38.62.  On the bond side, 10-Year bond yields climbed to 4.269 while Oil (WTI) popped 2.51% closing at $70.30 per barrel.  So, Wednesday was mostly about the opening gap as traders at least weren’t disappointed by the CPI print.  After that gap up and the modest morning rally, markets just drifted the rest of the day as tech stocks ran higher. TSLA (+5.93%), GOOGL (+5.52%), and NVDA (+3.14) led that charge.

The major economic news scheduled for Wednesday include Month-on-Month Nov. Core CPI which came in flat as expected at +0.3% (compared to a forecast and Oct. reading of +0.3%).  On an annualized basis, Year-on-Year November Core CPI was also flat as expected at +3.3% (versus the forecast an October value of +3.3%).  On the headline number, Month-on-Month Nov. CPI was up a tick to +0.3% (compared to a forecast of +0.3% and October reading of +0.2%).  On the annualized basis, Year-on-Year Nov. CPI was also up a tick to 2.7% (versus a +2.7% forecast and an October value of +2.6%).  Later, EIA Weekly Crude Oil Inventories showed a larger than expected drawdown of 1.435 million barrels (compared to a forecasted 1.000-million-barrel drawdown but much less than the prior week’s 5.073-million-barrel draw).  Later, the November Federal Budget Balance came in with a larger-than-predicted deficit of $367.0 billion (versus a -$ 349.0 billion forecast and dramatically higher than October’s -$257.0 billion).

In Fed news, we have started the Fed quiet period ahead of next week’s meeting. 

After the close, ADBE and NDSN reported beats on both the revenue and earnings lines.

Overnight, Asian markets were mixed but leaned toward the green with eight of the 12 exchanges above break-even.  South Korea (+1.62%), Japan (+1.21%), and Hong Kong (+1.20%) paced the gains.  Meanwhile, India (-0.38%) led the losses.  In Europe, we see a similar picture with nine of the 14 bourses in the green.  The CAC (-0.01%), DAX (+0.03%), and FTSE (+0.13%) lead the region modestly higher in early afternoon trade.  In the US, as of 7:54 a.m., Futures are pointing toward a modestly down start to the day.  The DIA implies a -0.11% open, the SPY is implying a -0.195 open, and the QQQ implies a -0.39% open at this hour.  At the same time, 10-Year Bond yields are spiking to 4.302% and Oil (WTI) is up a quarter percent to $70.45 per barrel in early trading.

The major economic news scheduled for Thursday include Weekly Initial Jobless Claims, Weekly Continuing Jobless Claims, Nov. Core PPI and Nov. PPI (all at 8:30 p.m.), and the Fed Balance Sheet (4:30 p.m.).  The major earnings reports scheduled for before the open are limited to CIEN.  Then, after the close, AVGO, COST, and RH report. 

In economic news later this week, on Friday, Nov. Export Price Index and Nov. Import Price Index are reported.

In terms of earnings reports later this week, there are no reports scheduled for Friday.

So far this morning, CIEN beat on revenue while missing on earnings.

With that background, it seems stocks are modestly lower in a divergent way ahead of the morning data.  All three major index ETFs have gapped a bit lower to start the premarket.  However, SPY had been flat since, QQQ is giving us a black-bodied candle with no wicks, and DIA is printing a white-bodied candle with no wicks climbing back toward flat.  SPY and QQQ remains above their T-line (8ema) while DIA remains below its own T-line.  It bears repeating that SPY, DIA, and QQQ all still sit at or very near their all-time highs.  However, with two of the three sitting modestly above their T-line the short-term trend has to be seen as bullish now.  Looking further out, obviously the mid-term and longer-term trends also remain bullish sitting at or near those all-time highs.  In terms of extension, none of the three major index ETFs are too stretched from their T-lines.  Meanwhile, the T2122 indicator is back in the bottom half of its mid-range.  So, while both sides of the market have room to move today if they can find momentum.  In terms of the 10 Big Dogs, seven of the 10 are in red numbers at this point of the morning.  NVDA (-0.47%) and META (-0.41%) pace the losses while TSLA (+0.38%) is holding up better than the others.  TSLA is also the leader in dollar-volume traded sitting at a little more than 4 times as much money traded than NVDA.

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

See you in the trading room.

Ed

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

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

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

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

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

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

Hit and Run Candlesticks / Road To Wealth Youtube videos

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

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

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