GWO Daily Note 9/5/2019
Market Strategies Newsletter - Special Daily Edition
For Trading September 6th
CLEAR BREAKOUT FOR STOCKS
Chips Lead the Way!
GOLD FALTERS
RATES CLIMB, SLIGHTLY
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It amazes me how the same piece of (OLD) news can generate the kind of rally that we have had this week. That said, it has. Today’s rally included a gap higher right through the top of the August range. I hate to be a wet rag, but please remember that September is the worst month and a tweet in the middle of the night can send us right back down. All that said, the DJIA finished mid-range after being +480 at +372.68 (1.41%), NASDAQ +139.95 (1.75%), S&P 500 +38.22 (1.3%), the Russell +25.99 (1.75%) and the DJ Transports, the biggest winner +258.61 (2.56%). The biggest gainers were the chip stocks sending the NAZ higher. Advance/Declines were solid but not excessive with NYSE 2:1 while NAZ was 3:1. The DJIA was 26 up / 4 down with the losers being the stall-worth’s of KO, PG, JNJ and WMT. The biggest gainers were GS +36 and IBM +32 DPs and all the other big names up 16 – 25 DP’s. No really big (over 40 point) gainers. Just a healthy across the board gain.
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: As I said above, the Chips were the leaders today with the SMH finishing $119.45 +3.52 (3.04%) and some of the names; LRCX +5.14 (2.3%) today but up 18% in the last week, MU +2.22 (4.74%) and +20%) for the week, NVDA +8.64 (5.12%) and 13.2% in the week, and AMAT (chip equipment) +.84 (1.7%) and +15% in the past week.After the close yesterday we had Slack (WORK) report for the first time since going public with a “direct listing” in June with a “guide” price of $26.00 that opened $38.50, traded to $42, but has fallen since to make a low of $27.91 yesterday and closed the day today at $31.07 +2.31 (8.03%, but when they reported it had a spike to $33.32 on the headline gain in revenues and number of users, before giving poor guidance and it fell like a rock to $25.82, and is finished $26.80. Today it fell to $26.47 at the open rallied a bit and then tested $26. I used a buy stop and paid $26.88 for the stock. This is not a trading position, but rather a core position since I think this company has monumental potential. It closed $30.01 -1.06 (3.41%).
Before the open we got numbers on SIG, a jewelry chain that is mall based. It beat on its numbers (smaller loss, not as bad revenues as expected) and the stock, down from $152 in late 2015 to make a new low yesterday at $10.40, traded $14.89 and closed $13.97 +2.96 (26.88%). We have traded this one several times from the short side since $134 and it was our best trader in 2016-2017. I am not a believer in this one, so “buyer beware.”
Mallinckrodt (MNK), noted here recently and down from its all-time high of $134.66 to close yesterday $2.59, hired a new law firm to help out with their exposure to the Opioid Crisis opened -1.00 and closed the down 38.61%, obviously on its way to $ .00.
Livongo Health (LVGO) missed on bottom line but beat on revenues. The stock, an IPO in late July @ $28 traded as high as $45.68 has fallen pretty steadily to close yesterday $30.89. It traded a bit higher pre-market but collapsed during the day hitting $23.70 before finishing $25.55 -5.34 (17.29%). Yet another “cloud” company that offer data analytics DOMO had an IPO at $21 last fall. The stock was slightly higher on opening day and after trading down to $13.28 in November, moved much higher hitting $47.00 in late March had sold off to close yesterday $25.21. After the close they reported a beat on earnings but missed on revenues, gave poor guidance for both the next Q and the FY 2020. The stock traded as low as $15.80 and is currently trading $15.83 -9.38 (37.7%).
LULU reported a beat and the stock, closing near its high at $188.41 +7.71 (4.27%) extended its gains to $199.35 and the last is $195.01 +6.68 (3.55%).
Also reporting with a beat was DocuSign (DOCU) which came public in 4/2018 @ $29, and has traded between $68 and $35, closed the day $46.25. It beat both top and bottom lines, gave positive guidance for Q3 and FY 2020, and guided revenues to over $1 billion. The stock traded $57.50 and the last is $56.30 +10.06 or 21.75%.
BIO/PHARMA:stocks wereHIGHERwith the only loser TEVA -.21 (2.96%). The biggest winner was LABU +1.51 (4.3%) followed by MYL +.45 (2.33%), and the IBB $102.39 +1.18 (1.17%).
CANNABIS:stocks wereHIGHERwith a reversal of the loses yesterday. The only 2 lower were CURLF -.44 (5.67%) and KERN -.51 (6.3%), while ACRGF was the biggest gainer at $7.96 +.86 (12.11%) and MJ $25.33 +1.05 (4.32%).
DEFENSE:wasHIGHERwith LMT -4.03, RTN +1.87, GD +1.56, TXT +1.84, UTX +1.98, NOC -3.63, BWXT +.58, TDY +.10 and ITA $223.23 +1.64 (.74%).
RETAIL:wasHIGHERwith all of the brands up and WMT the only loser -.63. The biggest gainers were JWN +1.72 (5.83, JCP +.044 (6.18%), and M +.59 (3.96%). Lulu LEAD THE BRANDS ON EARNINGS (see above) and RL +4.46 (4.97%), TPR +1.76 (8.02%), CPRI +1.84 (5.95%) and XRT $41.07 +1.48 (3.75%).
FAANG and Big Cap:were HIGHERwith GOOGL +28.73, AMZN +42.57, AAPL +4.16, FB +3.76, NFLX +1.28, NVDA +11.01, TSLA +8.62, BABA +4.27, BIDU +1.46, BOX +.32, IBM +4.48, BA +3.47, CAT +4.15, and XLK $81.50 (2.0%).
FINANCIALS: wereHIGHERwith the stocks moving a bit higher with rates. GS +4.87, JPM +2.45, BAC +.81, MS +.94, C +2.00, PNC +2.99, AIG +.28, TRV +1.58, AXP +2.27 and XLF $27.42 +.52 (1.93%).
OIL, $56.20 -.06.The Oil made another assault on the $57-58 level today but again, couldn’t hold that price. We had 2 sets of information with the API inventory showing a build of 400,000 barrels when a draw was expected, and the monthly production showing a decline to just over 12 Million barrels, a drop of 33,000 bar / day. The stocks were higher with the rest of the market in spite of the selloff and the XLE closed $58.72 +.72 (1.24%).
METALS, GOLD: $1,525.50 -34.90.Gold took a well-earned rest and fell back to support at $1,514 in today’s action. I tried to buy some GLD calls but didn’t get then today, and I’ll have a new number tomorrow. Silver also fell back to close $18.807 -.74.
BITCOIN: closed $10,625 -210.Today’s quiet “Inside day” had little meaning to me and I am still quite bullish. We still need a close over $10,945 to break us back to the upside. 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 $12.85 -.32.
Tomorrow is another day.
CAM
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