The Moskowitz Report (AZO, TSLA, CVX, M, ORLY, GOOGL, XOM, JWN, AAP, AMZN, APC, KSS, GPC, AAPL, OXY, WMT, FB, COP, DDS, NFLX, BP, RL, NVDA, PSX, SHLD, RIG, JCP, MPC, MRO, XRT, OILU) - Stock Market Commentary For Thursday, July 06, 2017
Todays’ market tried to get started to the upside until the oil got weak and took the Dow with it. While the S&P 500 and DJIA were down, the NASDAQ started to perform better and we started to rally a bit back to even. At the end of the day DLIA +1, S&P 500 +3.53, Russell -6.54, and the winner is was NASDAQ +41, right near the highs. However, the internals told a different story, with NYSE volume 1.9:1 down while NASDAQ was 1.9:1 UP and A/D both negative at 1.5:1 and 3:4 respectively.
The disaster du jour was a replay of the AutoZone (AZO) earnings miss a couple of weeks ago in O’Reilly (ORLY) with a poor results and guidance. Prior to the open it was trading down 21 @ 199 but followed after the open with a cascade selloff to 173.89 -46.38 (20%) with AZO -46 (10%), AAP -16 (14%) and GPC -4 (5%). These are the biggest names in this business and they are off 30% YTD. With poorer than expected auto sales reported Monday and the average age of used cars of 12-13 years these guys should be hitting it out of the park. All in the group closed at or near their lows.
NASDAQ big names were higher with the exception of TSLA -25.68 or 7.28%. This may turn out to be a problem since it is only another name that has cracked in the FANG group. GOOGL +12.17, AMZN +18.90, AAPL + .60, FB + 1.29, NFLX +1.01, NVDA +3.48.
The oil move ran right through the group with everyone lower on my list; CVX-1.44, XOM-1.10, APC-1.29, OXY-1.51, COP-1.39, BP-.44, PSX-1.01, RIG-.34 (4%), MPC-.20, MRO-.14, HES-2.06 (4.5%) and the XLE-1.33.
As I have mentioned both here and in Weekly Strategies that I don’t “believe” in the oil story other than to trade the range, we followed up our position in the OILU position and got stopped out this morning @ $19.84 for a $3.36 profit or $1344, or 20%. Since the move was so swift today I didn’t have the opportunity to buy the SCO with a decent risk profile I will be looking to see if we rally to a lower high or bounce off the bottom of the range to initiate a new position.
Retail was lower again with M-.20, JWN-.29, KSS-.28, WMT-.04, DDS-.67, RL-1.75, SHLD-.50 (5.4%), JCP-.08 and the XRT -.69.
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Tomorrow is another day...CAM
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