GWO Daily Note 8/19/2019
Market Strategies Newsletter - Special Daily Edition
For Trading August 20th
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Oil Rally on IRAN Actions
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Today’s market was up from the start on comments made by Navarro and Kudlow on Sunday morning shows. The futures were up on Sunday night and just continued to climb as the pajama traders continued to press them higher. I don’t put ANY confidence in what Trump and his minions try to feed us and I bought some SPXU (S&P500 3:1 levered inverse) when they opened down about 25%. It’s a small trade and I believe with limited risk in a low volume, bounce-back rally into resistance. NYSE A/D was 3.8:1 while NASDAQ was 3.7:1. DJIA was 28:2 with the biggest gainers HD +29, HD 26, AAPL 26, MSFT 15, and UTX, UNH, CVX, and CSCO +11 DPs.
Our “open forum” on Discord, which allows me to interact with subscribers and others to allow direct questions and chart opinions on just about any stock, continues to grow with more participants every day. It is informative and allows me to share insights as the market is open and moving. The link is:https://discord.gg/ATvC7YZ and I will be there and active from before the open and all day. It’s a great place to share ideas and gain some insights.
SECTORS: Other names in the news: early morning movers were led by good numbers from Estee Lauder (EL) which beat top and bottom line and opened $195.20 and traded $202.84 before finishing the day $201.81 +22.59 (12.6%) and a new all-time high. WYNN also received a push on the possibility of a trade deal and stimulus in China, and the company with major exposure in Macao moved higher from the open. That said, the stock had fallen from $141 in the last 4 weeks and was due for a bounce off the lows of $102 last week. WYNN opened $109.70 and hit $113.33 before finishing the day $112.41 +6.86 (6.5%).
PCG, Pac. Gas & Electric, which has fallen from $50 last year during the massive fires in California to a low of $5.07 and has filed for bankruptcy, won a suit allowing it to “take control” of their exit from bankruptcy. The market wasn’t happy about the result and the stock, which traded $20 last month opened the day $10.45 -3.83 and finished the day $10.67 -3.61 (25.28%). ARMK was higher when it was disclosed that an activist fund, Mantle Ridge filed with a 9.8% stake in the company and including derivatives they control 20%. The stock, which traded as low as $25.49 in May opened $41.54 and while it closed near the low of the day, it was still $40.18 +3.08 (8.3%).
After the close the big news was a beat by BIDU. Since topping out near $284 in 2018, the stock has fallen to trade $93.39 last week, but the beat sent the stock back to $104.22 +7.52 at the close, and higher yet to trade $114.70 and an overall gain on the day of $18 or 18.7%.
In smaller names, DRYS a Greek “dry bulk” shipping firm that has fallen on VERY hard times and been reverse-split 7 times between 1:4 and 1:15 since 2016, with an adjusted high of $1.778Million and a low of $1.36 was tendered for by the group that held the majority of the shares, @ $5.25 and finished the day $5.18 +1.35 (35.25%). How’s that for equity destruction?
And, THE HOMERUN OF THE DAY,was a little one, Digital Power: DPW, which was also reversed both 1:20 in March and 1:40 just this month, and had also fallen from its adjusted high of $4,720 to close Friday at $2.06 and announced the completed “beta” test of its MonthlyInterest.com, on “online fin-tech portal that facilitates investments that pay monthly interest.” The stock opened $8.00, traded as high as $10.68 (418%), before closing very near its low @ $4.80 +2.74 (133%). No clue what it actually means to the company, but after there are more than even 1 reverse of 1:40, the floats get so small that these kind of moves are possible. NOT NECESSARILY GOOD, JUST POSSIBLE.
BIO/PHARMA:stocks wereHIGHERwith the biggest gainers TEVA +.26 (4.06%), MYL +.66 (3.56%), with the rest of the list CELG +.29, BIIB +4.04, REGN +1.53, VRTX +2.15, BHC +.58, INCY +1.40, ICPT +2.2`, LABU +1.46 and IBB $106.16 +1.19 (1.13%).
CANNABIS:stocks wereLOWERwith TLRY -1.43, CGC -1.44, CRON -.30, GWPH -.02, ACB -.09, PYX +.11, APHA +.04, NBEV +.03, ACRGF -.24, CURLF -.09, KERN +.01 and MJ $26.05 -.20 (.76%).
DEFENSE:wasHIGHERwith LMT +3.48, RTN +2.70, GD +3.24, TXT +.84, UTX +1.25, NOC +2.17, BWXT +.56, TDY +2.52 and ITA $215.32 +2.34 (1.1%).
RETAIL:wasHIGHERwith both the stores and the brands following. M +.14, JWN +.98, KSS +2.29, DDS +1.99, JCP +.02, WMT +.75, TGT +2.29, TJX +.61, RL +.21, UAA -.13, LULU +.84, NKE +.84, TPR +.94, CPRI +.34 and XRT $39.10 +.49 (1.27%).
FAANG: and big cap tech wereHIGHERwith GOOGL +16.79, AMZN +23.28, AAPL +3.75, FB +2.09, NFLX +5.40, NVDA +11.56, TSLA +6.89, BABA +3.45, BIDU (see above), BOX +.40, IBM +1.20, BA +3.33, CAT +.77 and XLK $79.40 +1.12 (1.43%).
FINANCIALS wereHIGHERwith GS +2.77, JPM +.94, BAC +.21, MS +.43, C +.83, PNC +1.36, AIG +.50, TRV +.77, AXP -.23, and XLF $26.60 +.23 (.87%).
OIL, $56.14 +1.33.The Oil seems to have accomplished a cross of the 5 and 20-day moving average to the upside, but it appears as if it has turned back to the downside, or almost anyway. We are back into overhead supply and today’s upside move was geopolitical in nature. I have no position, but frankly, I favor the downside. The stocks were all higher today with the smaller names were the biggest gainers. XLE finished $58.28 +1.26 (2.21%).
METALS, GOLD: $1,511.60 -12.Only the “pajama traders” got to see the Gold make an overnight run toward $1,550 last week and today’s lows at $1,503.30 is near my buy point. The silver also lost a little luster finishing $16.94 - .182.
BITCOIN: closed $10,745 +230.Last week I said this market looks as if it is testing the 9,600 – 10,000 level before it can work its way higher. Thursday’s low was $9.500, and since then we have traded back to $10,890. We own two positions of 250 GBTC @ $9.36 and 500 @ $12.10. We closed out 250 of the $9.36 shares at $16.78 for a gain of $1,855 and GBTC finished $13.74 +.39.
Tomorrow is another day.
CAM
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