Monday was a brutal day unless you were a bear.  A gap down of well in excess of 1% led to follow-through on the large caps and then a sideways grind along the bottom in all 3 major indices.  However, a late-day rally across the board did pull us up off the lows.  This left us with cap-down Spinning Top (indecisive) candles in all 3 major indices.  On the day, SPY lost 1.44%, DIA lost 1.94%, and QQQ lost 0.82%.  The VXX gained 14% to 34.89 and T2122 dropped deep into the oversold territory at 1.93.  10-year bond yields were absolutely hammered (as buyers flooded into bonds), falling to 1.194% while Oil (WTI) got crushed by 7.4% to $66.51. 

After hours, IBM beat on both the top and bottom lines.  The company reported its strongest revenue growth in 3 years.  JBHT reported similar beats on both lines.  However, PPG missed on earnings while beating on the revenue front.

In other stock news, GM confirmed it will offer a third electric truck.  This one will be a full-sized electric pickup and will sell under the “GMC Sierra” line.  AMC also announced it is adding to its Los Angeles region market presence by taking over two existing theatre locations (a 14-screen and an 18-screen) in the city. And, of course, AMZN CEO Jeff Bezos heads to space this morning with a launch 9 am eastern launch.

Yesterday Treasury Sec. Yellen told regulators they needed to act quickly to control cryptocurrencies and decide how a “dollar-pegged stablecoin” would be regulated.  Then this morning cryptocurrencies took another hit as Bitcoin slipped below $30,000 at 6:30 am.  The other major cryptocurrencies also took a hit in sympathy.

Overnight, Asian markets were red again, but with a little less energy today.  Taiwan (-1.46%), Singapore (-1.30%), and Thailand (-1.10%) paced the losses.  There were no appreciable gains in the region.  In Europe, markets are mixed on modest trading so far Tuesday.  The FTSE (+0.13%), DAX (-0.13%), and CAC (+0.25%) are typical of indecision across the continent.  The only significant move has been by Norway (+1.22%) as of mid-day.  At 7:30 am, US Futures are pointing to a modest gap higher.  The DIA is implying a +0.57% open, the SPY implying a +0.50% open, and the QQQ implying a + 0.52% open.  The dollar is also slightly higher this morning, while 10-year bond yields are down just a bit to 1.184% (but recovering from overnight lows) and commodities are showing modest strength this morning.

The major economic news scheduled for release on Tuesday is limited to June Building Permits and June Housing Starts (both at 8:30 am).  The major earnings reports scheduled for the day include VLVLY, ALLY, CFG, DOV, HAL, HCA, KEY, MAN, OMC, PM, SBNY, SYF, SNV, TRV, and UBS before the open.  Then, after the close, AIR, AGR, CNI, CMG, IBKR, ISRG, NFLX, RXN, RUSHA, SNBR, and UAL report.

The fear of a Covid resurgence economic downturn, coupled with inflation forcing the Fed’s hand to stop easing remains the nightmare scenario on Wall Street. On the financial networks this morning, the talk is of companies possibly starting to lower or being afraid to give forward guidance due to the Delta variant. However, yesterday’s lower wicks and today’s premarket green indicate the bulls have not fled the market yet. To put it in a broader context, all three major indices have only pulled back about 3% from their all-time high closes. So, as bad as yesterday was for the bulls, it is hardly a “the end is near” situation yet.

The bullish trends are broken in the major indices. However, we do not have a new bearish trend in place yet. So, be vary careful. Trading an undecided market is difficult at best. Manage your current positions first and remember that you don’t have to trade every day. If we do get a Bearish trend, remember that those moves tend to happen fast and be over quick. So, do not chase and remain nimble. Stick with your trading rules, don’t bail on your trade plans, and maintain discipline. Trading success is all about consistency and that means taking singles and doubles as well as cutting your losses short.

Ed

Swing Trade Ideas for your consideration and watchlist: LLY, XSPA, BNGO, PTON, EBAY, CHWY, OEG. 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

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