GWO Daily Note 9/9/2019
Market Strategies Newsletter - Special Daily Edition
For Trading September 10th
Oil and Financials Gain
RATES CLIMB AGAIN
July Consumer Credit Rises
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Today’s market was all over the place, but not actually far in either direction. Futures pointed to a higher open but never really got going and after the initial move + 96 around noon, we spent 2 hours heading back to the lows -40. It was really a day all about nothing important, unless of course the 50 attorneys’ general investigation of the FAANG companies over unfair or antitrust policies! Those states and territories did not include California or Alabama (the later probably missed the filing date due to the hurricane damage). By the close it had all worked back to the DJIA +38.05 (.14%), NASDAQ -15.64 (.19%), S&P 500 -.28 ( .01%), the Russell +19.08 (1.27%) and the DJ Transports, the big winner +207.95 (2.02%). A/D were 1.6:1 on the NYSE and slightly better on NAZ @ 1.8:1. The DJIA was split pretty evenly at 17 Up, 13 Down with the biggest losers, BA & V both -29, MRK -21 and TRV -19 DPs while the winners were GS +32, CAT +31, and WBA +21 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: As I said above, the FAANGs took somewhat of a hit, but it clearly wasn’t an all or nothing deal. And by the close they were all pretty much unchanged. Before the open we had the announcement by Elliot Management that they have taken a position in A.T&T (T) and they have a plan that would value the company at $60 ($55 price +$5 dividend) by 2021. They question some of the acquisitions and feel that they can improve shareholder equity by better management, although they stressed that it was not a wholesale breakup. If you recall earlier this spring (3/18/2019 Weekly Strategies) I created a list of “Stocks for total return with Option coverage, and T is included on that list of 8 names on that list and updated and carried every week. While the stock wasn’t on its low at the time, it was pretty close, closing $30.80 that day. Before the open the stock traded over $39.50 but finished the day on the lows at $36.79 +.54 (1.49%). By the way, another one of our Stocks for Total returned was also mentioned on Closing Bell today. The company is “down and out but also best in breed” and pays 5.8%, and with oil at these prices the stock should be a homerun. The name, Schlumberger: SLB. It finished the day $36.23 +2.03 (5.94%). Also SLB mentioned on FAST MONEY after the close. This has proven to be a great list, including both CAG and CVS, both with returns of well over 20% each.
Also before the open we had news on one name mentioned here often, ACAD. Acadia Pharma announced solid results in their Phase 3 trial of Pimavanserin, an antipsycosis treatment and the stock, up from $14 at the turn of the year had closed $23.80, opened $41.75 and after trading $43.98 finished the day $38.85 +15.05 (63.24%). Another gainer was Changyou.com: CYOU. I tend away from Chinese stocks but this one is a buyout by SOHU, one of the biggest Chinese stocks for $10.00 cash. After trading as high as $9.24, it finished $8.84 +2.92 (49.32%).
Another name mentioned in our DISCORD room was PAYS, Paysign. After a move from $3.53 in January it moved higher to trade $18.67 in mid-July. After a move back to $11.00 it double-topped in August at $17.46 and today, after a poor report, finished the day after a gap down to $9.85 -2.19 (18.19%). GOOD CATCH DALE !!!
And last, the Disaster Du Jour, Neurotrope: NTRP. This one missed on their Phase 2 trial for Bryostatin-1, their treatment for Alzheimer’s did not achieve statistical significance change. The stock, which traded from $3.53 to $8.44 this year had closed $4.40 on Friday gapped down on the news to trade $ .81 before closing $1.00 -3.40 (77.27%).
BIO/PHARMA:stocks wereLOWERwith the only big winners MYL +.67 (3.27%) and TEVA +.38 (5.42%), and BIIB +5.43 (2.42%). The big losers were REGN -13.00 (4.45%), VRTX -6.52 (3.60%), and ISRG -8.57 (1.7%). The IBB finished $101.83 -.41 (.40%).
CANNABIS:stocks wereLOWERwith most of the losers down 2 – 5% on the day. There were two notable exceptions, PYX +.23 (1.69%) and the big winner KERN, which has a broadcast conference and Webinar on Thursday. It finished $8.24 +.44 (5.64%) and MJ $25.66 -.07, (.27%).
DEFENSE:wasLOWERwith LMT -6.56, RTN -1.07, GD -5.49, TXT +1.47, UTX +.41, NOC -11.94 (3.25%) with no news I could find, BWXT -.67, TDY -6.14, and ITA $221.46 -2.84 (1.27%).
RETAIL:wasHIGHERwith M +.82 (5.33%), JWN +1.65 (5.31%), KSS +3.19 (6.57%), DDS -.72, JCP +.08 (10.48%), WMT +1.60, TGT -1.90, TJX +.65, RL +2.27(2.4%), UAA +.46 (2.35%), LULU the biggest loser -8.55 (4.21%), NKE -.02, TPR +.60, CPRI +1.68 (5.99%) and XRT $42.43 +1.42 (3.46%).
FAANG and Big Cap:were HIGHERwith GOOGL -1.05, AMZN -2.16, AAPL +.91, FB +1.11, NFLX +4.17, NVDA +2.35, BABA +.86, BIDU +2.46, BOX +.29, IBM +2.03, BA -4.34, CAT +4.55, and XLK $81.17 -.33 (.40%).
FINANCIALS: wereHIGHERwith the stocks moving with rates. GS + 4.77, JPM +2.79, BAC +.90, MS +.93, C +2.82, PNC +4.57, AIG +.56, TRV -2.79, AXP -.27, and XLF $27.91 +.47 (1.71%).
OIL, $57.85 +1.33.The Oil made another assault on the $58.00 level today and held on to most of the gains. A combination of issues including Saudi comments about keeping production down ahead of the Saudi-Aramco IPO has buoyed prices. My focus, as laid out in last night’s Weekly Strategies is the Natural Gas market. Prices were higher today closing $2.585 + .089 and I am looking for a place to buy UNG to participate. All the stocks on my list were higher with XLE finishing $60.21 +1.18 (2.00%).
METALS, GOLD: $1,511.40 -4.40.Gold dipped on Friday on Chairman Powell’s comments and continued slightly lower today. I am looking for a place to reestablish a position as well as a new position in Silver. As I mentioned in last night’s video (#112) I believe Silver will outperform the gold during this leg of the move. Silver finished the day $18.167 + .048.
BITCOIN: closed $10,370 – 90.Today’s quiet 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 $12.29 -36.
Tomorrow is another day.
CAM
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