Markets gapped slightly higher Monday, but then diverged.  The DIA surged higher and then pulled back while being able to hold onto a white candle, leaving a high upper wick that could be seen as a shooting star if you squint.  This came largely on a pop by DIS on reports that their Disneyland resort is expected to reopen April 1.  At the same time, the SPY and especially the QQQ sold off hard to put in ugly black candles.  On the day, DIA was up 0.95%, SPY was down 0.50%, and QQQ was down a whopping 2.83% (closing down 11% from the Feb. 12 record high).  The VXX rose a little under 2% to 15.39 and T2122 drove higher, well into the overbought territory at 90.44.  10-year bond yields spiked again to 1.601% and oil (WTI) sold off over 2% to $64.74/barrel.

It was announced Monday that over the last week the US has averaged more than 1 million airline passengers per day.  This is the first time in a year the US has reached that level of travel.  This announcement came the same day that the CDC said it was okay for fully-vaccinated people (at least 2 weeks post-vaccination) to meet indoors without masks.  Small steps, but signs of progress as the country is vaccinating more than 2 million people per day.

Related to the virus, US infections are starting to plateau at a level above the fall level after a month and a half of steep and steady decline in new cases. The totals have risen to 29,744,652 confirmed cases and deaths have now passed half a million at 538,628 deaths.  The number of new cases fell again to an average of 58,798 new cases per day.  Deaths, which have always lagged, also fell again to 1,623 per day.  The Houston Health Dept. found a fairly large amount of the UK variant in their wastewater testing.  The House now plans to vote (pass) on the Covid Relief Bill on Wednesday since the Senate has not yet delivered the bill as passed in their chamber. In good news, lab studies are hinting that the PFE-BTNX vaccine can give protection against the Brazilian mutation.

Overnight, Asian markets were mixed.  China led the losses again as Shenzhen (-2.84%) and Shanghai (-1.82%) were down sharply. However, Japan (+0.99%). Hong Kong (+0.81%), and India (+0.95%) led to the upside.  In Europe, markets are mostly green, with a couple smaller exchanges being just on the red side of flat so far today.  The FTSE (+0.67%), DAX (+0.32%), and CAC (+0.36%) are all positive, with a few of the smaller exchanges being major outliers to the upside, like Denmark (+2.39%) and Portugal (+2.32%).  As of 7:30 am, US Futures are strongly higher across the board as bond yields pulled back (but remains above 1.5%) overnight.  The DIA is implying a +0.50% open, the SPY implying a +0.99% open, and the QQQ implying a +2.19% open.

The only major economic news on Tuesday is a Fed speaker (Kaplan at 6:05 pm).  Major earnings reports before the open include DKS, NAV, and THO.  Then after the close, ABM reports.

Softening bond yields overnight seem to be giving the bulls energy this morning. With no planned economic news and no real major earnings, that may be enough to help them run on the day. However, there is a lot of technical damage to overcome. So, while a “V reversal” could happen, it is more likely we will see some chop as bulls become more sure of the footing before running wild. So, be prepared for volatility and one-day directional moves.

Follow the trend, respect support and resistance, and don’t chase those moves that you miss.  Another trade will come along any minute. Don’t try to predict reversals, just follow the market. Keep taking your trade goals (profits) off the table when you can and stick to your discipline.  Consistency is the key, not ocassinoal home runs.

Ed

Swing Trade Ideas for your consideration and watchlist: WBA, JETS, PM, JWN, UAL, DIS. 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.

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