Markets gapped about a half percent higher at the open Monday on good vaccine news from AZN.  However, a sharp selloff about 10am lasted an hour and a slow recovery brought the major indices back to close near the gap-ups.  SPY and QQQ both printed indecisive Doji or Spinning Top type candles on the day, while DIA was a little more bullish, but still had quite a bit of wick.  On the day DIA gained 1.16%, SPY gained 0.62%, and QQQ was dead flat.  The VXX lost 1.24% to 18.37 and T2122 rose further into overbought territory at 95.55.  10-year bond yields rose to 0.859% and Oil gained a percent to $42.91/barrel on vaccine-recovery hopes.

President-elect Biden announced several of his cabinet nominees.  The key name for markets is that Biden will nominate former Fed Chair Yellen as his Sec. of Treasury. Financial pundits claim the markets like this nomination. This comes hours before the GSA announced Monday night that the formal transition process can now begin (despite President Trump’s ongoing spate of lawsuits they hope would nullify election results and delay the process).  Futures rose on the GSA news. 

CNBC reports that the top Democrat on the House Judiciary Committee, Rep. Neguse, has called for hearings on regulatory approach (such as the FTC) to approving “big pharma” mergers.  Specifically cited were the ABBV acquisition of AGN and the merger of PFE and MYL.  This news comes in the wake of the committee’s year-long investigation into big tech (AMZN, AAPL, FB, GOOG) anti-trust practices.  However, at this point, it is preliminary and yet to be determined if a full investigation is warranted.

On the virus front itself, infections continue to rage as the US.  This surge has raised the US totals to 12,778,924 confirmed cases and 263,701 deaths.  The 7-day average of new cases to 176,434 while the average deaths rose to 1,577/day.  This surge has put a large strain on the healthcare system nationally.  One example is Cleveland Clinic (a major Hospital Network in the Cleveland area) reported 970 caregivers are out due to the virus, triple the number from just 2 weeks ago.  

Overnight, Asian markets were mixed.  Japan (+2.50%) and Australia (+1.26%) led gainers.  Meanwhile, Thailand (-1.32%) and Malaysia (-1.20%) passed the losers.  In Europe, markets are generally green, with just two small-market exceptions, Denmark (-1.22%) and Switzerland (-0.22%).  However, in general Europe seems to like the news of the official US transition with the 3 major bourses being typical with the FTSE (+0.99%), DAX (+0.92%), and CAC (+1.19%).  As of 7:30 am, US futures are pointing to a mixed gap higher.  The DIA is implying a 0.90% gap up, the SPY a 0.60% gap up and the QQQ just a 0.21% “gap” higher.

The major economic news for Tuesday is limited to Conf. Board Consumer Confidence (10 am), and 3 Fed Speakers (Bullard at 11 am, Williams at noon, and Clarida at 12:45 pm.  Major earnings reports include ANF, ADI, BBY, BURL, DKS, DLTR, DY, HRL, SJM, J, MDT, and TIF before the open.  Then after the close AEO, ADSK, DELL, GPS, HPQ, JWN, VMW report.

As we draw nearer to the holiday break, we may see less volume. However, there is plenty of major earnings today, especially in the retail space. That said, those are backward-looking and we do have the big Black Friday and Cyber Monday retail events coming in days. Also, remember that we have been range-bound for a couple of weeks and the very short-term trend has been a pullback with all-time high resistance above and some support just below.

As always, respect the trend, support/resistance, and price action. Don’t chase moves you have missed (there will be another opportunity) and stick with your trading rules. Our job as traders is consistency, not hitting home runs,

Ed

Swing Trade Ideas for your consideration and watchlist: PEIX, DK, WLL, LUV, SCHW, FORM. 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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