On Thursday, markets gapped about half a percent higher after unexpectedly high Initial Jobless Claims offset optimism stemming from stimulus deal and a second vaccine approval.  After the open, prices ground sideways the rest of the day.  This left us with all three major indices printing indecisive Dojis at new all-time high closes.  On the day, SPY gained 0.56%, DIA gained 0.44%, and QQQ gained 0.65%.  The VXX fell almost 1.5% to 16.75 and T2122 rose deeper into the overbought territory at 94.21.  10-year bond yields rose to 0.935% and Oil (WTI) rose over a percent to $48.33/barrel.

In late afternoon Bloomberg reported that the stimulus deal is being hindered by GOP efforts to end virus lending programs.  However, at the other end of the spectrum, 2 Senators (one from each party) are continuing to fight for a $1,200 direct payment to Americans instead of the $600 agreed by the 4 Leaders on Tuesday night.  So, it seems while the Leaders came to an agreement, the rank and file still have other ideas.  As of early Friday morning, House and Senate leaders said they expect a short government shutdown (funding runs out at midnight Friday), followed by a weekend approval vote on a deal covering both government funding and stimulus.

For the second time in two days (and third time in two months), GOOG was sued for antitrust activities on Thursday.  This time by a bipartisan group of Attorneys General from 38 states.  This suit focuses on allegations GOOG has maintained a monopoly in general search and search advertising.  While all these suits will take years to wind through the courts, the repeated announcements don’t help the stock one bit.

Related to the virus itself, US infections continue to rage as the US.  The totals have risen to 17,627,070 confirmed cases and 317,929 deaths.  Thursday did not see any more bad records but was still a bad day with almost 232,000 new cases and nearly 3,300 deaths.  This brings the 7-day averages to 220,690 new cases and 2,599 deaths per day.  Of course, the FDA Advisory Panel did recommend the MRNA vaccine for emergency use and FDA and FDA Head Dr. Hahn promised swift action (it will be approved today).  If all goes as planned, shipments of MRNA vaccine is expected to start Monday. This comes not a moment too soon as arguments between states, the federal government and PFE surfaced last night over how much vaccine was promised this week and whether shipment allotments have been reduced for the next couple weeks.

Globally, the numbers rose to 75,407,507 confirmed cases and the confirmed deaths are now at 1,671,135 deaths.  As a reference, the world is averaging about 642,000 new cases and almost 11,000 new deaths per day.  In Asia, Australia is beginning new travel bans between some of its states after a new cluster of cases was found around Sydney (at beaches).  In South Korea, 500 Covid-19 patients are waiting on a hospital bed to open up and have waited more than a day at this point.

Overnight, Asian markets leaned heavily to the down side.  Only a flat South Korea and India avoided red ink.  New Zealand (-1.60%), Malaysia (-1.31%), and Australia (-1.20%) led the losses.  In Europe, markets are mostly green so far today.  Only Belgium (-0.12%), Portugal (-0.63%), and Russia (-0.53%) buck the trend.  However, the big 3 bourses are typical of the modestly green overall picture.  Among those, the FTSE (+0.20%), DAX (+0.37%), and CAC (+0.01%) are all up slightly.  As of 7:30 am, US futures are pointing to a flat open.  Right now the DIA is implying a +0.03% open, the SPY implying a +0.12% open, and the QQQ implying a +0.08% open.   

The major economic news for Friday is limited to Q3 Current Account (8:30 am), Fed Bank Stress Test Results (4:30 pm) and a Fed Speaker (Brainard at 11:10 am).  Major earnings releases include DRI and WGO before the open.  Then NKE reports after the close.

Without a ton of economic data, a government stalemate, and sitting on Option Expiration Friday, the market may wait for more news before making its next move. However, we do sit at all-time highs, and a stimulus deal and new vaccine approval are expected very soon. So, the bulls do have the upper hand. Either way, be careful heading into the weekend in front of a holiday-shortened week. It is very possible all the big money has left town already.

Keep working the process and booking those base hits. Money in the bank trumps a “possible lottery ticket” every time. Keep your discipline and respect the trend, support and resistance, and price action. In short, get rich slowly…one trade at a time, just consistently achieving goals.

Ed

Swing Trade Ideas for your consideration and watchlist: PLAN, PAYC, AUY, JNJ, SHAK, KSU, ALEC, TSLA. Trade your plan, take profits along the way, and smart. Also, remember to check for impending earnings reports. Finally, remember that any tickers we mention and talk about in the trading room are not recommendations to buy or sell.

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

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

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

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

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

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

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