Markets gapped down well over a percent and then followed through the first hour of the day. However, this led to a sideways waffle the rest of the session but ended on an up wave that had the 3 major indices closing near their highs of the day.  This volatility left us with gap-down, white Hammer-type candles across the major indices.  On the day, SPY lost 1.06%, DIA lost 1.23%, and QQQ lost 1.10%.  The VXX rose almost 4% to 22.78 and T2122 dove deep into the oversold territory at 4.44.  10-year bond yields rose to 1.426% and Oil (WTI) fell 3.1% to $68.66/barrel.  

In a follow-up to the weekend story of Senator Manchin essentially killing President Biden’s domestic spending and climate agenda, markets reacted to the news during the day.  In particular, electric vehicle (EV) stocks plummeted as the prospect of EV tax incentives, more widely available charging stations, etc. were killed as part of the package.  RIDE lost 8.15%, FFIE lost 9.45%, NKLA lost 7.31%, and recent IPO RIVN lost 7.90%.  TSLA and GM (which no longer qualify for federal tax credits) fared relatively better.  TSLA lost 3.50% and GM lost 2.03% on the day.

After the close NKE and MU both easily beat estimates on both revenue and earnings.   MU spiked 7% in after-hours trading on this news.  Meanwhile, NKE was up almost 3% in the post-market session.  However, this morning GIS easily beat on revenue but missed on earnings.  At the same time, RAD handily beat on earnings but missed on revenue. 

Overnight, Asian markets leaned heavily to the green side on varying moves.  Only Malaysia (-0.09%) showed any red while Japan (+2.08%), Hong Kong (+1.00%), and Shanghai (+0.88%) led the gains.  In Europe, stocks are green across the board at mid-day.  The FTSE (+1.00%), DAX (+1.10%), and CAC (+1.03%) are typical of the continent, with outliers like Russia (+0.35%) and Norway (+1.60%).  As of 7:30 am, US Futures are pointing to a gap higher at the open.  The DIA implies a +0.89% open, the SPY is implying a +0.95% open, and the QQQ implies a +1.08% open at this hour.  10-year bond yields are up strongly to 1.451% and Oil (WTI) is up 1.5% in early trading.

The major economic news scheduled for release Tuesday is limited to Q3 Current Accounts (8:30 am).  The major earnings reports scheduled for the day are limited to GIS and RAD before the open.  Then after the close, AIR reports. 

Once again markets made most of their eventual move in the overnight gap. However, there was just enough intraday whipsaw to put a hurt on chasers. Only the mega-cap DIA has not tested its December lows, as the SPY and QQQ passed their test Monday. It looks like we may be headed back to retest the T-line next. So, consider whether there is a trend at the moment and whether you have an edge. Either way, keep a close eye on volatility and don’t forget that volume is likely to dry up as the week goes on.

When you’re wrong, admit it and take your loss. (That’s why we set stops.) Remember the first rule of making a lot of money in the market is to not lose a lot of money in the market. So, stick to your trade rules and on managing the things you can control. Trade with the trend, keep consistently taking profits when you have them, and move your stops in your favor.

Ed

Swing Trade Ideas for your consideration and watchlist: MCK, JNPR, ABUS, NEM, LSI, CSCO, PGR, CVS, AVGO, VZ, CERN, GILD. 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