Markets Uncertain to Start The Week

The July Payrolls Data came in better-than-expected Friday, resulting in a slight gap up in the large-cap indices and a gap down in the QQQ.  After that, all 3 major indices more or less ground sideways the remainder of the day.  This left us with indecisive Spinning Top type candles in all major averages.  On the day, SPY gained 0.17% (to a new all-time high close), DIA closed up 0.42% (to a new all-time high close), and QQQ closed down 0.44%.  The VXX fell 2.5% to 28.30 and T2122 rose to just outside the overbought territory at 75.33.  10-year bond yields rose sharply to 1.304% and Oil (WTI) fell 1.4% to $68.11/barrel.

Late Friday afternoon it was reported that US consumer borrowing surged in June by the largest on record.  This amounted to a 10.6% ($37.7 billion) increase compared to May.  A large portion of the increase came from credit card balances and non-revolving loans such as motor vehicle purchase loans.

On Saturday, BRK.B reported operating earnings that were up 21% year-on-year while overall earnings (which reflect the value of Berkshire equity investments) were up 6.8%.  The company has continued to buy back shares rather than make acquisitions, but the pace of buybacks has slowed, both from a year ago and from Q1.  As of June 30, the company had well over $144 billion in cash on hand.

In miscellaneous weekend news, a federal judge ruled that NCLH can require proof of vaccination prior to boarding, granting the company an injunction from Florida’s law that had barred any demand of vaccination proof by businesses.  The first NCLH cruise since before the Pandemic left Florida Sunday after the ruling cleared the way. The Infrastructure bill made some progress over the weekend, but there is still a lot of vote-wrangling to do. However, a Senate vote one way or the other seems likely this week. Elsewhere, the UN published a report, approved by all 195 member states on Friday, delivering a stark warning of the “irrefutable and unequivocal evidence” that climate change is real, has had a major human influence and is very close to being irreversible. The effects impact billions of people (consumers), business operations, and distribution around the globe. As will the mitigation efforts such as converting huge swaths of industry and public consumption from fossil fuels and petroleum-based goods (such as plastics). The economic transformation will likely be massive.

Overnight, Asian markets were mixed, but leaned to the green side. Thailand (+1.21%) and Shanghai (+1.05%) were the clear leaders among gainers.  Meanwhile, Indonesia (-1.22%) was by far the largest loser Monday as Oil prices were down over 4.5%.  The remainder of Asian exchanges saw more modest moves in either direction.  In Europe, prices are also mixed, with most of the smaller exchanges modestly higher so far today, but the “big 3” exchanges all on the red side of the ledger.  This may be due to the impact of data out of China showing that Chinese Exports unexpectedly slowed in July.  Regardless, the FTSE (-0.32%), DAX (-0.08%), and CAC (-0.02%) are all down at mid-day.  As of 7:30 am, US Futures are pointing to a mixed and flat open.  The DIA is implying a -0.27% open, the SPY implying a -0.12% open, but the QQQ is implying a +0.15% open at this point.  As mentioned, commodities are widely down with Oil leading the way as WTI is 4.44% lower early today.  The 10-year bond yield is also down significantly to 1.275% in early trading.

The only major economic news scheduled for release on Monday is June JOLTs (10 am).  The major earnings reports scheduled for the day include APD, AMRX, AVYA, GOLD, BNTX, DISH, ELAN, ENR, GTES, SGMS, SYNH, TGNA, TSN, USFD, VRTV, and VTRS before the open.  Then, after the close, ADV, ACM, CBT, ELY, CF, COMP, CAPL, HE, LU, DOOR, NGL, NTR, STE, and WES report.

Markets seem mixed and unsettled early Monday. The Delta variant continued to run, with the average daily new cases back above 100,000 and deaths beginning to slowly increase. This comes in the face of evidence the recovery may be slowing even as fiscal stimulus and the will for monetary easing is starting to wane. In short, the bear case has control of the conversation to start the week. Beware of volatility as the futures have changed directions a couple of times this morning already. So, the indices have not broken free of the consolidation of the past few weeks and day-to-day chop may continue to be the order of the day.

Remember, you don't have to trade every day or even week. Trading success is about consistently winning more than you lose by following the trend and then keeping your losses small while consistently taking profits when you have them. You don't need to call the turn or have all triple-digit gain trades. So, don't try to predict the market. Neither should you chase price and, above all, stick to your trading rules. Focus on the process and managing what you can control. Discipline will see you through. Also, remember it's Friday. Don't forget to pay yourself and be ready for the weekend news cycle.

Ed

Swing Trade Ideas for your consideration and watchlist: MSI, FOXA, ARKK, QCOM, DEN, DHI, OTIS, VIAC, X, MU, RF, STLD, CLF, NUE, NOK, AA, MT, DVN, NVTA. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

July Jobs Report Tops The Agenda Today

Markets gapped higher fractionally on Thursday and then ground sideways until the last half hour.  The day ended with a rally the last 30-minutes causing prices to go out on the highs in all 3 major indices.  This left strong bullish candles (on light volume) across the major markets.  On the day SPY gained 0.63% (to a new all-time high), DIA gained 0.75%, and QQQ gained 0.63% (to a new all-time high).  It is worth noting that breadth continued to decline.  The VXX fell 2% to 29.05 and T2122 rose to 64.58.  10-year bond yields rose to 1.225% and Oil (WTI) climbed 1.4% to $69.10/barrel.

During the day, in a sign of a very competitive labor market, TGT joined WMT, SBUX, and CMG in offering a program to pay for 100% of employee undergraduate college and book fees. After the close, F told CNBC that it is offering a buyout package intended to reduce its workforce by 1,000 employees.  In separate car industry news, President Biden set a national goal of having 50% of all cars sold to be electric by 2030.  The announcement was made while flanked by the executives of F, GM, and STLA (formerly Fiat-Chrysler), but noticeably absent from the event were representatives of TSLA, NKLA, HMC, TM, etc.

In virus-related news Thursday, AMZN, BLK, and WFC joined the growing ranks of companies that have postponed their workforce’s return to the office.  This came as the daily average of new cases has climbed back to about 95,000, up 50% from one week ago.  UAL also announced it will be among the companies requiring employees to be vaccinated before returning to work.  Meanwhile, after the close, NVAX announced it will delay the submission of its request for FDA authorization of its Covid Vaccine until the fourth quarter.  Oddly enough, the company says it is still on track to be making 100 million doses of the vaccine by the end of Q3, despite not having requested or gotten permission to ship.

In crypto news, JPM (whose CEO Jamie Dimon has been an outspoken critic of cryptocurrencies) had begun offering six crypto funds to its institutional and high-end wealth management customers.  Ethereum (the second-largest cryptocurrency behind Bitcoin) also announced they are moving up the event which will force “miners” to already have Ethereum in order to create new coins from mid-2022 to December 2021. This will make mining that currency essentially impossible at a profit, while still not completely centralizing the crypto coin.  Finally, overnight President Biden joined with the group of Senators that are pushing for stricter tax reporting on cryptocurrency transactions as an amendment to the infrastructure bill, which is headed for a vote this weekend.

Overnight, Asian markets were mixed, leaned to the downside on modest trading.  Australia (+0.36%) and Japan (+0.33%) were the only significant gainers, while Taiwan (-0.44%), Malaysia (-0.40%), and Thailand (-0.39%) led the wider-spread losses.  In Europe, markets are also mixed on very modest moves so far today.  The FTSE (+0.05%), DAX (+0.17%), and CAC (+0.22%) are probably the strongest bourses at this hour, with many of the smaller exchanges showing more significant losses.  As of 7:30 am, US Futures are pointing to a flat and mixed open ahead of Jobs data.  The DIA is implying a +0.10% open, the QQQ implying a -0.10% open, and the SPY implying a +0.07% open.  The dollar is up a bit with 10-year bond yields up notably to 1.257% and Oil (WTI) up 1.5% in early morning trading.

The major economic news scheduled for release on Friday includes July Nonfarm Payrolls, July Avg. Hourly Earnings, July Participation Rate, and July Unemployment Rate (all at 8:30 am).  The major earnings reports scheduled for the day include AMCX, BBU, CLMT, D, SSP, FLR, GCI, GLP, GT, LEA, MGA, MODV, NMRK, NCLH, QRTEA, SPB, SRCL, VTR, and VNT before the open.  There are no scheduled reports for after the close.

The world seems to be waiting on this morning's July Jobs Report. With stocks at their highs, quarterly earnings having been very strong so far, and signs of a peaked recovery, I'm not sure what Mr. Market hopes to see from the report. However, the risk is to the downside. Regardless of the initial reaction, beware of potential whipsaw action as volatility will spike around the binary news event.

Remember, you don't have to trade every day or even week. Trading success is about consistently winning more than you lose by following the trend and then keeping your losses small while consistently taking profits when you have them. You don't need to call the turn or have all triple-digit gain trades. So, don't try to predict the market. Neither should you chase price and, above all, stick to your trading rules. Focus on the process and managing what you can control. Discipline will see you through. Also, remember it's Friday. Don't forget to pay yourself and be ready for the weekend news cycle.

Ed

Swing Trade Ideas for your consideration and watchlist: MT, DVN, DHI, UPRO, CLF, NYCB, NOK. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Earnings Remain Strong and Guidance Key

ADP July Nonfarm Employment came in far below (less than half of) expectations early Wednesday.  Still markets shrugged off the news and only gapped down fractionally.  After that initial move, trading ground sideways in the large-caps and slowly rallied in the QQQ.  The exception was a significant across-the-board selloff the last 5 minutes.  This left us with indecisive candles, a Doji on the SPY and Spinning Top type candles in the DIA and QQQ.  On the day SPY lost 0.48%, DIA lost 0.89%, and QQQ gained 0.14%. However, this left us still in the sideways consolidation in all 3 major indices.  The VXX was flat a 29.77 and T2122 fell to 32.05.  10-year bond yields remained flat at 1.174% and Oil (WTI) fell over 3.5% to $68.04/barrel.

Just before the close, Treasury Sec. Yellen said that she expects monthly inflation to be running at a level consistent with the Fed’s goal (2% per year or 0.1 – 0.2%/ month) by the end of 2021.  However, she believes annual inflation readings will remain “uncomfortably high for some time.”  She also reiterated the administration's position that an eviction moratorium is needed because state and local governments have only managed to disperse 10% of the $47 billion in rental assistance that the Federal government has allocated.  This is due to the program being brand new and multiple levels of government being involved. 

After the close, the torrid earnings pace continued, with the only reported misses being ALB on revenue and BKNG on earnings (loss).  MET, ALL, MCK, WDC, MRO, and APA were among those reporting strong beats.  However, forward guidance continues to be potty as many companies do not believe they can continue to match Q2 performance.

In stock news early today, the strong earnings season continues.  CI, BDX, HBI, XRAY, BLL, and IRM were among those reporting beats, without a single report missing on either line so far among major companies this morning.  MRNA reported that its vaccine booster shot has produced a “robust” immune response against the Delta variant (which now makes up 95% of new cases) in Phase 2 trials. The company also beat on both lines of their earnings report.  HOOD continues to be extremely volatile in its first week of trading as the company amended its filing to say that insiders and pre-IPO investors will sell almost 98 million shares.  This comes after the price soared more than 50% on Wednesday while trading in a 60%-wide range.

Overnight, Asian markets were mixed but leaned to the red side on modest moves.  Thailand (-1.18%) was the biggest mover as their currency fell.  However, outside that anomaly, Hong Kong (-0.84%) and Shenzhen (-0.79%) led the losses.  Indonesia (+0.75%) and Japan (+0.52%) paced the gainers.  In Europe, markets are mostly green on modest moves at mid-day.  The FTSE (-0.25%) and DAX (+0.01%) lag, but the CAC (+0.23%) is fairly typical of the rest of the continent.  As of 7:30 am, US Futures are pointing to green start to the session.  The DIA is implying a +0.13% open, the SPY is implying a +0.19% open, and the QQQ is implying a +0.22% open.  10-year bond yields are flat at 1.172% and commodities are mixed as the dollar is down slightly in early trading.

The major economic news scheduled for release on Thursday includes June Trade Balance and Initial Jobless Claims (both at 8:30 am) and a Fed speaker (Waller at 10 am).  The major earnings reports scheduled for the day include GOLF, AHCO, ADNT, WMS, AES, APTV, ARW, ATH, AAWW. BLL, BCE, BDX, BERY, BV, BEP, BLDR, CAH, CNP, CQP, LNG, CI, XEC, COMM, XRAY, DUK, EPC, EPAM, EVRG, GIL, GTN, HBI, HII, IBP, IRM, ITRI, K, MMS, MRNA, NOMD, NRG, OGE, PAE, PZZA, PH, PRTY, PENN, PPL, PRMW, PWR, REGN, REV, SRE, SRLP, TRGP, TEN, TMX, TRI, VGR, VIAC, VSAT, W, WCC, and ZTS before the open.  Then after the close, IHRT, AL, LNT, AEL, AIG, COLD, AMN, BECN, BHF, BKD, CVNA, CNDT, ED, CTVA, CVET, CWK, DBX, ENDP, EXPE, FND, FLS, G, ILMN, ITT, MTZ, MNST, MSI, NFG, NWSA, ZEUS, OTEX, CNXN, PFSI, POST, PRI, REZI, RMD, SEM, SWX, SFM, TDS, TDC, USM, VOYA, ZG, and ZNGA report.

Weekly Initial Jobless Claims are likely to decide the direction of markets early today as traders look for clues to what Friday's July Jobs data might be (or mean). Jitters over a potential "already peaked" recovery with the Fed policy change down the road has the bulls being hesitant. Yet, the bears have made no headway either as markets just consolidated for two weeks at the all-time highs. With that said, we have drifted close to the longer-term bullish trendlines in all 3 major indices. So, a decision point for the next move may be near.

Remember, trading success is about winning more than you lose by following trend and price action and then keeping your losses small while consistently taking profits when you have them. You don't need to call the turn or have all triple-digit gain trades. So, don't try to predict the market. Nobody ever made a consistent living calling the top (or bottom). Neither should you chase price and above all, stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control.

Ed

Swing Trade Ideas for your consideration and watchlist: No tickers today. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Consolidation Continues Amidst Earnings

Monday was a “fade the gap” kind of day with a modest gap higher at the open met with all-day selling, closing near the lows.  The SPY printed a Bearish Engulfing candle and the DIA printed a Bear Engulfing of a Doji.  However, all 3 major indices stayed in their recent consolidation ranges.  On the day, the SPY lost 0.20%, the DIA lost 0.32%, and QQQ gained 0.01% after having gapped up a bit more than the large-cap indices.  The VXX gained almost 4% t o31.34 and T2122 remains in the mid-range at 52.07.  10-year bond yields fell to 1.174% and Oil (WTI) dropped 3.45% to $71.40/barrel.

During the day there was a bit of news on the virus front.  The 7-day average of new cases in the US has reached almost 73,000 again (surpassing last summer’s peak). While hospital space is an issue in some areas (for example, only 7 available ICU beds for 3 million people in Austin TX and the state of LA report they’ve reached the highest level of hospitalization since the start of the pandemic), fortunately, death rates have not spiked with cases (7-day average is at 317/day).  The White House announced the country had reached the goal of 70% of adults being at least partially vaccinated, albeit about a month later than the goal. 

After the close, Fed (voting) member Waller told CNBC that he could see the possibility of a reduction in bond-buying activity starting as soon as October.  However, he would need to see strong jobs reports in August and September before he agreed to any such tightening.  As with other members of the FOMC, he said that the data the Fed is seeing continues to indicate that inflation is transitory, but that there is some evidence this might not be the case.

It has started off as another good day on the earnings front.  However, it is notable that there are more misses today than any day so far this earnings season.  Chief among those misses were LLY (came in short on the bottom line) and CLX (missed on both lines and guided lower as it says the pandemic surge has passed.  However, there are still plenty of beats, including COP and PSX in the oil space, UAA and RL in clothing, and DISCA in finance. In non-earnings news, PEP announced it will sell its juice brands, including Tropicana to a French private equity firm for $3.3 billion.

Overnight, Asian markets were mixed on modest moves.  Japan (-0.50%), Shanghai (-0.47%), and Shenzhen (-0.41%) paced the losses.  Meanwhile, India (+1.55%), Thailand (+1.01%), and Indonesia (+0.56%) led the gainers.  However, in Europe, markets are green across this board so far today.  The FTSE (+0.30%) and DAX (+0.20%) are typical of the continent, with the CAC (+0.98%) being an outlier to the upside.  As of 7:30 am, US Futures are pointing to a mixed, but modestly green open.  The DIA is implying a +0.46% open, the SPY implying a +0.34% open, and the QQQ implying a +0.09% open.  10-year bond prices are also up and the dollar down in early trading Tuesday.

The major economic news scheduled for release on Tuesday is limited to June Factory Orders (10 am) and a Fed speaker (Bowman at 2 pm).  The major earnings reports scheduled for the day include BABA, ATI, AME, ARNC, BHC, BCC, BP, BHG, CWH, CLX, COP, CRSR, DISCA, DD, DNB, ETN, SATS, LLY, EXPD, FNMA, FIS, FCNCA, BEN, IT, HSC, HSIC, INCY, INGR, IGT, J, KKR, LHX, LCII, LGIH, LDI, LPX, MAR, NVT, OMI, PSX, PBI, PEG, RL, SEE, SUN, BLD, UAA, VNTR, WMG, WAT, WEC, WLK, WLTW, XYL, ZBRA, and ZBH before the open.  Then after the close, ATVI, AKAM, AFG, AMGN, ANDE, AIZ, CAR, CZR, CNR, CW, DK, DVN, ET, ENLC, NVST, FMC, FNF, FRG, HLF, HST, H, JAZZ, KAR, LYV, LYFT, MCY, OI, OXY, OKE, PAA, PRIM, PRU, PSA, RGA, TX, UNM, and XP report.

Jitters over the resurgence of Covid at the same time the economy may have already reached peak recovery mode and stimulus is fading has markets concerned. However, it would be quite a stretch to say we are seeing any panic. Markets seem to want to open Tuesday inside of yesterday's candle...just in the consolidation area. So, again the trend remains bullish and all 3 major indices remain very near their all-time highs. This is letting the moving averages catch up and is a healthy thing for a trend.

Don't get caught trying to predict the market. Nobody ever made a consistent living calling the top (or bottom). Remember, trading success is about winning more than you lose by following trend and price action and then keeping your losses small while consistently taking profits when you have them. You don't need to call the turn or have all triple-digit gain trades. So, don't chase price, predict turns, and above all, stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control.

Ed

Swing Trade Ideas for your consideration and watchlist: TEVA, PSTG, JETS, LEVI, QID, RIOT, GLW. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Treasury to Conserve Cash

Friday saw a gap down across the board for stocks.  However, the bulls stepped in and immediately began rallying.  This early rally held up in the QQQ, while the DIA faded and then all the major indices ground sideways. This left us with a black-bodied Doji in the DIA, a white Inverted Hammer in the SPY, and a nice white-bodied candle in the QQQ.  On the day, SPY lost 0.48%, SIA lost 0.38%, and QQQ lost 0.52%.  The VXX gained 2.5% to 30.21 and T2122 fell back to mid-range at 60.69.  10-year bond yields fell to 1.224% and Oil gained a fraction to $73.76/barrel.

During the day, WMT joined the chorus of companies that will require employees to be vaccinated.  In this case, WMT mandated vaccination only for corporate office workers, regional managerial staff, and anyone who works in multiple stores.  Single location workers, such as hourly store and warehouse workers will not yet be required to comply. 

The Treasury Department announced that it will begin implementing “emergency cash conservation steps” immediately.  These efforts are needed to avoid breaking the federal borrowing limit after a two-year suspension of that limit expired Saturday.  The steps will allow Treasury to shift money in order to keep paying federal bills for two to three months.  Over that time, Congress can either suspend the limit again, drastically cut spending or decide to allow the country to default on debts.  Additional suspension is by far the most likely outcome.

The pandemic ban on evictions also ended Saturday.  Analysts expect a historic wave of evictions to be coming along with a major increase in foreclosure activity.  This will have impacts on REIT, banking, and even homebuilding industries. However, there is not a good indication as to how these impacts will be distributed amongst those industries.

Overnight, Asian markets were mostly strongly green, with a couple of minor and modest exceptions.  Shenzhen (+2.24%), Shanghai (+1.97%), and Japan (+1.82%) led the gains.  However, significant gains were widespread. Europe is following Asia’s lead so far Monday.  Only Denmark is in the red, while the FTSE (+0.69%) and CAC (+0.62%) are typical of the continent.  The DAX (+0.03%) is the laggard at mid-day.  As of 7:30 am, US Futures are pointing to a green open.  The DIA is implying a +0.30% open, the SPY implying a +0.41% open, and the QQQ implying a +0.41% open.  The dollar is down this morning and 10-year bond rates are up modestly as Oil is down well over one percent in early trading.

The major economic news scheduled for release on Monday is limited to Mfg. PMI (9:45 am) and ISM Mfg. PMI (10 am).  The major earnings reports scheduled for the day include ARCB, CAN, RACE, GPN, GPRE, HSBC, JELD, ON, and TKR before the open.  Then after the close, ACHC, AWK, ARGO, ANET, BRKR, BWXT, COLM, CLR, CVI, FANG, EMN, NSP, ITUB, KMT, LEG, MOS, NXPI, PXD, O, REYN, SBAC, SPG, SEDG, TTWO, RIG, TA, UCTT, UNVR, WMB, and WWD report.

The Senate finished the text of a bipartisan infrastructure compromise. The trillion-dollar bill will include $550 billion in new spending on roads, bridges, water distribution infrastructure, etc. This should see votes coming later week in the Senate. However, the big news of the week will be the July Jobs report and more earnings reports. The good news should be that so far earnings have been outstanding this quarter. Forward guidance and whether companies can repeat the feat in the fall is another question. Finally, Covid cases are continuing the recent increase. However, coming off very low levels means that the medical system has more capacity available and while hospitalizations are also up, outcomes are better with deaths not rising again too much at least as of yet.

As the new month begins, traders are hopeful (coming off 6 winning months). Just as I cautioned against letting down days sway you, don't let giddy days hurt your discipline either. Trading success is not made in one trade, one day, or one week. Success is all about batting average and adding up those singles and doubles. So, always manage your current positions first. Don't chase price, predict turns, and above all, stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control.

Ed

Swing Trade Ideas for your consideration and watchlist: PSTG, UNG, TEVA, AAPL, MRVL, BSX, PACB. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

AMZN Partial Miss Reinforced Econ Data

Markets opened basically flat on Thursday before putting in a slow morning rally and a slow afternoon fade.  So, generally, it was a sideways nothing day that continued the consolidation in all 3 major indices.  All 3 indices put in upper wicks and small bodies, but you would NOT call any of them Shooting Star candles.  On the day, SPY gained 0.40%, DIA gained 0.42%, and QQQ gained 0.18%.  All 3 indices are very near all-time highs again. The VXX fell to 29.49 and T2122 rose just into the edge of the overbought territory at 81.99.  10-year bond yields rose back to 1.266% and Oil (WTI) was up 1.5% to $73.53/barrel.

During the day Q2 GDP came in far below expectation.  While we still saw 6.5% GDP growth for the quarter, analysts had estimated the growth would be 8.5%.  Weekly Jobless claims also came in a bit above expectation (400k vs. 380k est.).  Then mid-morning June Pending Home Sales shrank 2%.  However, markets shrugged off this news and traded as if everything was fine.

After hours, AMZN reported a massive beat on earnings and over $113 billion in sales for Q2, but still missed on revenue by over $2 billion.  This comes as the pandemic “stay at home shopping” boost fades.   The stock was hammered hard in post-market trading, down 6.5%.  Almost all the other after-hours earnings reports were beats on both lines.  PINS beat on both lines, but obliterated in post-market trading, down 21% as of 4:30 pm after reporting that it lost users during the quarter.

This morning the incredibly strong earnings season continued.  Almost all reports came in as beats on both lines.  The only misses reported were NWL missing on revenue and JCI barely missing (by 4/100 of a cent) on earnings.  CHTR, AON, LYB, VFC, CPRI, PG, and CVX in particular reported significant beats.  A few buyback plans, such as CVX were announced.  Another great day on reports of the quarter past.

Overnight, Asian markets were red across the board.  Japan (-1.80%) and Hong Kong (-1.35%) led the region lower.  In Europe, there are a few minor exchange exceptions, but in general the continent is also in the red as of mid-day.  The FTSE (-0.82%), DAX (-0.74%), and CAC (-0.09%) are pretty typical of the spread among European bourses.  As of 7:30 am, US Futures are also pointing to a gap lower at the open.  The DIA is implying a -0.33% open, the SPY implying a -0.66% open, and the QQQ implying a 1.04% open following the AMZN disappointment.  10-year bond yields and commodity prices are also down, perhaps unrelated to the dollar which is showing only tepid strength this morning.

The major economic news scheduled for release on Friday is limited to June PCE Price Index, Q2 Employment Cost, and June Personal Spending (all at 8:30 am), Chicago PMI (9:45 am), and Michigan Consumer Sentiment (10 am).  Fed member Brainard also speaks long after the close (8:30 pm).  The major earnings reports scheduled for the day include ABBV, AXL, AON, AVNT, BBVA, BLMN, BAH, COG, CPRI, CRI, CAT, CERN, CVX, CHD, CNHI, CL, DAN, XOM, HRC, HUN, ITW, IMO, JCI, LAZ, LIN, LYB, NWL, PBR, POR, PG, QSR, TU, TIXT, VFC, GWW, and WY all before the open.  Then after the close, there are no major reports scheduled.

It looks like AMZN reporting just their third-ever $100 billion quarter of revenue, but missing by over $2 billion, was the tipping point for fear. Earlier missed economic reports had not moved markets. Still, after a night of reflection, world markets are moving lower so far today. Remember that we are still very near all-time highs and the bullish trend remains in place. So, don't get too far out on a bearish limb over a pullback. Also, keep in mind that it is Friday and month-end. So, be ready for the weekend new cycle, lightening up, evening up, and hedging as appropriate.

Don't let a gap or loss get you down. It happens. Remember, trading success is not made in one trade, one day, or one week. Success is all about batting average and adding up those singles and doubles. So, manage your current positions first. Don't chase, predict turns on one candle, and stick to your trading rules. Discipline will see you through. Focus on the process and managing what you can control. Finally, Friday is payday. So don't forget to pay yourself.

Ed

Swing Trade Ideas for your consideration and watchlist: No Tickers Today. Rick is out but the RWO Room is open. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

GDP, Jobless Claims and Earnings Galore

Wednesday brought us a blah day with a flat open.  That led to a sideways grind as traders waited on guidance from the Fed.  However, the Fed held course and markets just kept drifting sideways into the close.  This left us with Doji-type candles in the SPY and QQQ as well as a small Bearish Engulfing candle in the DIA.  However, in general, you could say the consolidation just continued.  On the day the QQQ gained 0.38%, SPY lost 0.04%, and DIA lost 0.36%. The VXX fell almost 3% to 29.99 and T2122 rose but remained in the mid-range at 68.46.  10-year bond yields were flat at 1.238% and Oil (WTI) rose one percent to $&2.37/barrel as the dollar fell on the day.

As mentioned, the Fed kept its easy policy (not changing its rates or bond-buying programs). However, they did say the economy continues to improve, despite concern over the Delta variant. Some analysts say this is an admission that tightening is coming soon, but Fed Chair Powell went on to say “the Fed is nowhere near considering a rate hike” and “we see ourselves having some ground to cover to get there” in reference to tapering. In either case, markets stayed the course as that news was digested in the afternoon.

Virus impacts were the other story of the day, as both GOOG and FB said that they will require employees to be vaccinated before they return to the office.  The White House also announced that President Biden will (as had been rumored) require that federal employees be vaccinated as well.  In addition to vaccination requirements, GOOG also postponed its “return to office” deadline until at least October.  On the mask front, AAPL said it will adhere to CDC guidelines by requiring masks in many US stores, regardless of vaccination status.  These are all signs the virus may still be a threat to the economy and business performance, but markets have largely moved on for now.

After hours, the vast majority or earnings reports continued to be strong.  FB posted a 19% beat on earnings, but then warned of a significant growth slowdown.  However, it then warned of “significantly decelerating growth” over the second half of the year.  URI missed on the bottom line and PYPL missed on revenue.  The pattern is holding this morning with the vast majority of companies reporting beats on the top and bottom lines.  Many of those were strong beats of 20% or more (including VLO, which beat by 250%).  The only exceptions seems to be MRK and MLM, who both missed on earnings, as well as HLT and CTXS who both missed on revenue.

Overnight, Asian markets were green across the board, with the lone exception of a minor loss in Malaysia (-0.16%).  Shenzhen (+3.05%) and Hong Kong (+3.30%) led the bounce back after their recent “China Regulatory Crackdown” losses, but gains were widespread with Taiwan (+1.56%), Shanghai (+1.49%), and Singapore (+1.24%) also making significant moves.  In Europe, as of mid-day markets are following Asia and leaning strongly to the green.  The FTSE (+0.90%), DAX (+0.39%), and CAC (+0.77%) are typical of the continent so far today.  As of 7:45 am, US Futures are mixed.  The DIA is implying a +0.32% open, the SPY implying a flat +0.09% open, and the QQQ implying a -0.22% open.  The dollar is down this morning, meaning most commodities are strong and 10-year bond yields are unchanged.

The major economic news scheduled for release on Thursday is limited to Q2 GDP and Weekly Initial Jobless Claims (both at 8:30 am) and June Pending Home Sales (10 am).  The major earnings reports scheduled for the day include AER, AGCO, ACI, ADS, AB, MO, AMT, BUD, MT, ARES, AZN, BAX, BC, CARR, CBRE, CX, CTXS, CCO, CMS, CMCSA, DBD, ERJ, EME, FLEX, FTS, FCN, GTX, GVA, GPI, HSY, HLT, HBAN, ICE, IP, JHG, KBR, KDP, KEX, LH, LKQ, MDC, MMP, MLM, MAS, MA, MRK, TIGO, TAP, COOP, NLSN, NOK, NOC, ONEW, OSK, PATK, PBF, BTU, PCG, PPC, PRG, RLGY, RDS.A, SPGI, SAIA, SBH, SNY, SNDR, SAH, SO, STM, TROW, TMHC, TFX, TPX, TXT, VLO, VSTO, VC, WAB, WFRD, WST, WWW, XEL, and YUM all before the open.  Then after the close, AMZN, ATR, AJG, TEAM, AVTR, BZH, CC, DXCM, DLR, EIX, EW, ERIE, FSLR, FTNT, FTV, GILD, GFF, HUBG, KMPR, KLAC, LBTYA, LPLA, MATX, MTD, MHK, MRC, OPK, PINS, QGEN, RSG, SKYW, SWKS, SWN, TMUS, TXRH, TWLO, VRTX, WELL, WERN, and INT report.

Remember that we are very near all-time highs and the bullish trend remains in place. However, the week-long consolidation is still the short-term market direction, possibly indicating resistance above, but more likely just indicating a pause for bulls to gather direction. In this environment, the steady drumbeat of earnings beats, announcements of buyback programs, and rosy guidance give the bulls the decided edge, but certainly no guarantees on a very short-term basis.

Remember, trading success is not made in one trade, one day, or one week. It's about batting your average and adding up those singles and doubles. So, manage your current positions first. Don't chase, stick to your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you control. Limiting your losses and taking profits when we get them is the key.

Ed

Swing Trade Ideas for your consideration and watchlist: OXY, SLV, IAG, NEM, XOP, DKNG, BAC, WFC, PSTG, DISCA, KR. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Fed in Focus as Earnings Keep Rocketing

Tuesday saw markets gap down at the open and then follow through as traders took profits in front of the after-hours big tech reports to come.  However, the bulls could not be kept down all day as they came back in the last couple of hours of the day.  This led us to close well up off the lows, creating Hammer-type candles in the large caps with the DIA even closing as a white body hammer.  Still, on the day SPY closed down 0.46%, DIA down 0.22%, and QQQ down 1.09%.  The VXX gained 3.4% to 30.86 and T2122 remains in mid-range at 53.33.  10-year bond yields fell sharply to 1.238% and Oil (WTI) was down a fraction to $71.78/barrel.  Most other commodities were down as well, even as the dollar was lower on the day.

During the day, the virus made more headlines as Delta variant infections are spiking, although thankfully without a corresponding spike in deaths.  The CDC reported that the new studies indicate that previous infected/recovered or vaccinated people can spread the Delta variant.  As a result, they are now calling for people to again wear masks indoors, regardless of vaccination status in areas where the infection rate is up (essentially the entire South of the country).  Bloomberg also reported several instances of major employers telling employees to “get vaccinated or get a new job.”  This comes as the White House reported it is considering a vaccination mandate for Federal employees.

After hours, AAPL, MSFT, and GOOG all reported massive beats on both lines.  AAPL reported the iPhone sales increased 50% year-over-year and GOOG gave us a 41% beat on earnings as examples.  Beyond those “big 3,” the rest of the after-close reports also all came in positive.  There was not a single miss on earnings among the 20 majors reporting, with only 2 missing on revenue.  So, the strong earnings story continues, although it is not the earnings, but the reaction that matters.  That being the case, all the major tech names and futures fell on the reports.

So far this morning, the strong earnings season continues.  Every report includes a beat on earnings and only GD has missed on revenue.  MCD, BA, PFE, BMY, HUM, TMO, and others all reported very strong quarters, in most cases handily beating the expectations of analysts.  In other morning news, mortgage rates dropped to a 6-month low of 3.01%.  This caused refinance home loans to jump 9% week-over-week. However, new home loan applications fell 2% for the week.

Overnight, Asian markets were mixed but mostly lower on the day.  Hong Kong (+1.54%) led the comeback after successive days of beatings.  On the other hand, Japan (-1.39%) paced the losses after acting as a safe haven the prior couple of days.  In Europe, stocks are mostly green with only Greece and Norway bucking the trend.  The FTSE (+0.19%), DAX (+0.20%), and CAC (+0.69%) were fairly typical of the modestly green trading at mid-day.  As of 7:30 am, US Futures are pointing to a mixed and modest open.  The DIA is implying a -0.14% open, the SPY implying a +0.07% open, and the QQQ implying a +0.28% open.  The dollar is up so far this morning and so are 10-year bond yields, now at 1.261%. 

The major economic news scheduled for release on Wednesday includes June Trade Balance and June Retail Inventories (both at 8:30 am), Crude Oil Inventories (10:30 am), Fed Rate Decision and Fed Statement (both at 2 pm), and Fed Chair Press Conf. (2:30 pm).  The major earnings reports scheduled for the day include AMG, APH, ADP, AVY, BA, BMY, BG, GIB, CME, CSTM, EXP, EEFT, EVR, FMX, GRMN, GNRC, GD, GSK, HES, HUM, LFUS, MHO, MCD, MCO, NSC, ODFL, OC, PAG, PFE, ROL, R, SC, SHOP, SLGN, SPOT, SCL, TEL, TDY, TEVA, TMO, TNL, UMC, VRT, and WNC all before the open.  Then after the close, ACCO, AFL, AEM, ALGN, ALGT, ATUS, NLY, AR, ASGN, AVB, BHE, CP, CG, CHDN, CMPR, CINF, CNO, CTSH, FIX, CYH, ECHO, ESI, ENSG, EQT, EQIX, RE, FB, F, FBHS, GFL, HIG, HOLX, IR, INVH, KGC, KL, LRCX, MTH, MEOH, MAA, MKSI, MOH, MUSA, MYRG, ORLY, OII, PYPL, PTC, QCOM, RJF, RBC, SIGI, SCI, NOW, SAVE, SSNC, SU, TTEK, TROX, TTMI, URI, WH, XPO, and YUMC report.

With the Fed announcements and the presser coming this afternoon, we are likely to see a wait-and-see game most of the morning. Still, earnings continue to be red hot. In fact, they are so hot that Mr. Market is feeling like the companies may not be able to repeat the performance next quarter, despite raised guidance in most cases. This is the likely cause, at least in part, of the selloffs on the great news.

Remember that you don't have to trade every day. Trading pre-Fed is like trading through earnings. It tends to be more of a bet as volatility around the Fed meetings is higher and often comes in multiple moves. This is especially true when there is no heavy consensus on what kind of language change might be coming (as today).

If you are taking positions today, be nimble or hedged. So, be sure to manage your current positions first. Don't chase, stick to your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, or one week. It's about batting your average and adding up those singles and doubles.

Ed

Swing Trade Ideas for your consideration and watchlist: BTBT, REI, BCRX, UAL, XLI, FAS, KR, XHB. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Earnings Strong Ahead of Big Tech Names

On Monday, markets made a very slight gap lower a the open.  However, the bulls took over for the day, thumbing their nose at the Asian markets and driving to new all-time highs.  The large caps put in nice Marubozu-type candles, while the QQQ printed a more “large body Spinning Top” type of candle.  As mentioned, the 5th consecutive up day ended in new all-time high closes for all 3 major indices.  On the day, SPY gained 0.24%, DIA gained 0.24%, and QQQ gained 0.08%.  The VXX fell 1.5% to 29.87 and T2122 dropped back into the mid-range at 57.26.  10-year bond yields rose slightly to 1.293% and Oil (WTI) was flat at $72.16/barrel.

After the close, TSLA reported a massive beat with 50% higher earnings and almost $700 million more in revenue for the quarter than analysts had expected.  The $1.14 billion ins net income was up ten-fold from one year prior and this was the first time the company exceeded $1 billion net income for any quarter.  UHS was another notable beat last night.  The healthcare company reported 40% more earnings than expected on 10% more revenue than expected.  However, it should be noted that all the major earnings were beats Monday evening.

In other stock news, AAL warned about fuel shortages last evening.  The company said it is one of several airlines facing delays in fuel supply due to a lack of truck drivers.  DAL acknowledged some such fuel-related delays in smaller Western airports, but LUV claimed it has not seen any such delays yet.  AAL told CNBC that it expects such delays to continue through August as peak vacation travel takes place.  The company spokesman said that pilots had been asked to conserve fuel although it did not say what impact conservation might have on “flight on time” metrics.

Once again, earnings seem to be extremely good this morning.  Every major reporting stock put in beats, with the lone exceptions on PHM, which missed on both lines.  UPS beat on both lines as did GE, MMM, RTX, BSX, WM, ROK, SWK, etc.  ADM reported huge beats on both lines. So, it appears inflation is not impacting earnings, perhaps with the exception of homebuilders who had not hedged and bought too much lumber at the top of the recent commodity highs.

Overnight, Asian markets were mostly red again as the Chinese markets continue to be routed as investors fear a mass exodus of Western capitol.  Hong Kong (-4.22%), Shenzhen (-3.67%), and Shanghai (-2.49%) led the region lower.  Japan (+0.49%) on Olympics euphoria and Australia (+0.50%) were the only appreciable gainers.  In Europe, markets are red across the board with the lone exception of a flat Russia.  The FTSE (-0.28%), DAX (-0.33%), and CAC (-0.12%) are typical of the region at mid-day.  However, Portugal (-1.33%) is leading the way lower.  As of 7:30 am, US Futures are pointing to a mixed, mostly flat open.  The DIA is implying a -0.19% open, the SPY implying a -0.11% open, and the QQQ implying a +0.09% open at this hour.   

The only major economic news scheduled for release on Tuesday are June Durable Goods Orders (8:30 am) and Conf. Board Consumer Confidence (10 am).  However, it is another heavy earnings day, with a slew of major tech companies reporting after the close.  The major earnings reports scheduled for the day include MMM, AN, ADM, ABG, BSX, CNC, CIT, GLW, CEQP, DTE, ECL, ENTG, FSV, FISV, GE, GPK, HUBB, IVZ, IQV, JBLU, LW, LECO, MLCO, MSCI, PCAR, PNR, PII, PHM, RTX, ROK, ST, SHW, SIRI, SWK, TECK, TRU, UPS, WM, and XRX.  Then after the close, AMD, GOOGL, AAPL, ASH, AXS, BXP, BYD, CHRW, CAKE, CHE, CB, CSGP, EHC, WIRE, EQR, GOOG, THG, IEX, JBT, JNPR, LBRT, MAT, MXIM, MSFT, MDLZ, NBR, NLOK, OLN, OVV, PFG, SBUX, SYK, TDOC, TER, and V reports.

With so much of the market-leading tech sector reporting after the close, the Fed statement coming Wednesday, and with markets at all-time highs; logic would call for a pullback or pause. However, the bulls have been ignoring logic and continuing to push this last week. So, do not count on a rational market. The economy continues to be strong and companies have so far been able to pass along inflation (or at least found ways to offset it to improve earnings). That said, don't be caught off guard by a calm day in front of big tech and the Fed.

If you are taking positions today, be nimble or hedged. It's not known how Mr. Market will react to even the hint of bad news from tech leadership or some non-dovish hint from the Fed. So, manage your current positions first. Don't chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you can control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, or one week.

Ed

Swing Trade Ideas for your consideration and watchlist: GE, JYNT, TSLA, NTNX, AA. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

Earnings Hot And So Are China Relations

The bulls kept their foot on the gas Friday with a half percent gap higher and then follow-through all morning.  The afternoon turned into a sideways grind, but the SPY and QQQ closed very near the highs and the DIA ended up as a white-bodied Spinning Top candle.  On the day, SPY gained 1.03% (new all-time high close), DIA gained 0.66% (new all-time high close), and QQQ gained 1.17% (new all-time high close).  The VXX fell half of a percent to 30.33 and T2122 rose back to near the overbought territory at 76.24.  10-year bond yields rose to 1.281% and Oil (WTI) rose a third of a percent to $72.17.

GM filed a lawsuit against F on Saturday.  The suit was filed on behalf of GM’s “Cruise” driverless taxi subsidiary and is intended to block F from using the name “BlueCruise” for their “hands-free driving technology.” In other stock news, PM told the British press that it plans to stop selling cigarettes in the UK within 10 years as the company attempts to pivot its business. This falls in line with the company's recent acquisitions in the Pharma space.

A US-Chinese meeting ended in a tense manner early today. The Chinese characterize the relationship as “now at a stalemate and facing serious difficulties.”  As a backdrop, the Biden Administration has taken steps against US companies doing business in the Chinese province where it is alleged that an entire minority population of Uighurs are being and otherwise abused.  At the same time, China has cracked down on Chinese businesses that have been listed in US capital markets.  Apparently, the Chinese submitted 2 lists (one of “errors” that must be corrected immediately and one of the issues Beijing sees as very important) and the Americans “raised concerns” as well.  This shifting and tense relationship is taking shape in the new “near-peer” world as China ascends on the back of decades of strong economic growth.

As we start the week, here are some of the major data points that will drop.  Tuesday, we see June Durable Goods Orders and Conf. Board Consumer Confidence. Then on   Wednesday we get June Trade Balance, June Retail Inventories, Crude Oil Inventories and crucially the Fed decisions, statement and presser. On Thursday we see Q2 GDP, Jobless Claims, and June Pending Home Sales.  Finally, Friday brings the PCE Price Index, Q2 Employment Costs, June Personal Spending, Chicago PMI, and Michigan Consumer Sentiment.

Overnight, Asian markets were mostly down, especially the Chinese exchanges.  This came amidst a Chinese crackdown on Hong Kong-listed and US-listed companies including in the paid education, eCommerce, and social media spaces.  Hong Kong (-4.13%), Shenzhen (-2.65%), and Shanghai (-2.34%) paced the losses. Japan (+1.04%) was the lone gainer.  In Europe, markets are a little more reticent but are mostly lower in modest trading so far today.  The FTSE (-0.24%), DAX (-0.43%), and CAC (-0.29%) are typical, but there are half a dozen modestly green exchanges across the continent.  As of 7:30 am, US Futures are pointing to a mildly lower open.  The DIA is implying a -0.36% open, the SPY is implying a -0.23% open, and the QQQ is implying a -0.11% open.

The only major economic news scheduled for release on Monday is June New Home Sales (10 am).  The major earnings reports scheduled for the day include CHKP, HAS, LII, LMT, OTIS, PETS, and RPM before the open.  Then after the close, AMP, AMKR, AXTA, BRO, CDNS, CLS, CR, FFIV, LOGI, PKG, RRC, TSLA, TFII, TBI, and UHS reports.

Despite the tense atmosphere between China and the US, there was little headline news to move markets. That said, stocks that do large parts of their business in China or that are Chinese and listed here are at risk today. With that said, earnings continue to be very strong, and most eyes will be watching the Fed tea leaves for later this week. Also bear in mind that we sit at all-time highs, coming off a strong 4-day run to end last week. So, a little pause or pullback is due soon.

Manage your current positions first and take your time early. Do not chase, stick with your trading rules, and maintain discipline. Success comes from your consistency. This means focusing on the process and managing what you can control. Limiting your losses and taking profits when we get them is the key. Remember, trading success is not made in one trade, one day, one week, or one month.

Ed

Swing Trade Ideas for your consideration and watchlist: SOS, JYNT, LCI, DHI, FSR, ARKK, BMBL, CVS, FLGT, TLIS. You can find Rick's review of tickers on his YouTube Channel here. 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

|607% in just 24 months |

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

Free YouTube Education  •  Subscription PlansPrivate 2-Hour Coaching

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

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