GWO Daily Note 9/10/2019
Market Strategies Newsletter - Special Daily Edition
For Trading September 11th
AAPL “Pleases” the Street
Not so much ROKU & NFLX
Gold Lower / Silver Up
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Today’s market was all over the place again, but again not actually very far in either direction. The futures were a bit lower and we opened and made the low -118 around 11:00 after the resignation (firing) of National Security advisor, Bolton by Mr. Trump. Trump sited differences of opinion on many issues, and the fact (mentioned by several staffers that the president) that Mr. Trump never “really warmed to Mr. Bolton,” often fatal in the Trump White house; or maybe it was just the fact that he doesn’t like facial hair, who really knows. This is the 3rd NSA who displeased the president. Regardless, the Oil market turned lower on the announcement, falling from a recent high of $58.76 (+.91) to close near the lows @ $57. .. By noon we had recovered to a high +25 but like yesterday, really never got going in either direction. After spending the next several hours going sideways we had a 20-minute rally into the close taking the DJIA +73.92 (.28%). The NASDAQ, never in the green during the day finished -3.28 (.04%), S&P 500 +.96 (.03%), and the two biggest gainers, the Russell +18.76 (1.23%), and the DJ Transports +161.56 (1.54%) and a nine-day move of almost 1,000 or 10.3%. This takes the DJ Transports +16.4% YTD while DJIA is + 15.3%. The A/D on the NYSE was 4:3 while NAZ was just short of 2:1. The DJIA was split 18 up / 12 down with the biggest losers MCD -51 DPs, V -35, DIS -21, TRV -18 and AXP -17 DPs. The gainers were BA +70, GS +25, CAT & MMM +20, and AAPL & JNJ +17 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.
I also did a short report on the IPO of WeWork today. This is the link: http://www.crweworld.com/article/finance/1232789/gwo-special-report-on-wework-ipo
SECTORS: Other names in the news: As I said above, we never really got going today while everyone waited for the big AAPL reveal on new products. Evidently most were pleased with the results, especially the news that APPLE TV+ will be priced at $4.99/month, substantially lower than its major competitors, including a year free with the purchase of some products. When the news hit it took the biggest competitors in streaming lower with ROKU -16.78 (10.42%), DIS – 3.04 (2.19%) and NFLX (already down from $385 in July) $287.99 – 6.35 (2.16%).
Another cannabis collaboration deal between CANF and Univo Pharma to identify and co-develop formulations sent CANF up 32% premarket and after the stock traded as high as $3.28 it finished the day $2.94 +.55 (23%).
Wendy’s announced that they are going into the breakfast wars in 2020, and that it will be a drag on earnings. The stock, which had rallied from $17.50 in August to a recent high of $22.84 gapped lower and finished the day $19.71 -2.24 (10.21%). After the close, RH (formerly Restoration Hardware) reported a beat and the stock, which had been cut in half from June 2018 to 2019, and had moved back to close $158.88 +5.37, traded $169.95 before coming back down and is currently $155 -3.88. Dave & Busters (PLAY) didn’t fare quite as well reporting a topline beat, inline revenues but gave poor guidance going forward. The stock, which is down from $67.00 last fall had closed $43.72 +1.22 was crushed, trading as low as $37.06, with a last trade of $37.70 – 6.02 (13%).
The last one to report tonight was Zscaler, Inc. (ZS) another cloud-based security software company that came public 3/18/2018 @ $16.00, and never traded below $25. The stock moved to its high of $89.54 in late July on 5 consecutive quarterly reports but gave decidedly poor guidance going forward. After trading down to break its 200-day moving average it closed $61.60 but collapsed to trade $48.30 before a small bounce to be $49.60 -12.00 (19.48%) currently.
In other news, our “HOME RUN OF THE DAY” was Francesca’s Holdings. Premarket FRAN, an apparel and accessories retailer beat on earnings and although they missed on revenues the stock was solidly higher (60%) and opened at $9.94 and finished the day $10.40 +5.24 (101%) and in late trading has moved to $12.20 + 1.72, the stock was reverse split in July 1:12, so the adjusted low was $2.78 last month.
BIO/PHARMA:stocks wereHIGHERwith the two biggest winners TEVA +.69 (9.27%), MYL + .69 (3.26%) with other gainers CELG +.58, BIIB +3.00, ABBV +1.40, REGN +4.72, ISRG +5.61, VRTX -3.80, BHC +.40, INCY -1.06, ICPT +3.09, LABU +3.18 (9.01%) and IBB $102.98 +1.15 (1.13%).
CANNABIS:stocks wereHIGHERwith yesterday’s biggest winner PYX + 1.40 (10.12%), and GWPH +7.74 (5.72%), and TLRY +.45, CGC +.20, CRON +.41, ACB +.27, APHA +.19, NBEV +.09, ACRGF +.41 (4.75%), CURLF +.19, KERN +.33 and MJ $25.49 +.47 (1.88%).
DEFENSE:wasMIXEDwith LMT +1.11, RTN +3.56, GD -.20, TXT +2.28, UTX -.20, NOC -.74, BWXT +.76, TDY -5.95, and ITA $223.50 +2.04 (.92%).
RETAIL:wasHIGHERwith M +.92, JWN +1.47, KSS +.04, DDS +7.80 (12.68%), JCP (who got a new SVP of Finance) was + .17 (19.9%), WMT -.28, TGT +.88, TJX +.13, RL +1.85, UAA +.53 (2.62%), LULU -.58, NKE -1.84 (2.08%), TPR +.88, CPRI +1.65 (5.5%) and XRT $43.61 +1.18 (2.78%).
FAANG and Big Cap:were MIXEDwith GOOGL +.43, AMZN -11.35, AAPL (SEE ABOVE), FB -2.73, NFLX (SEE ABOVE), NVDA +2.50, BABA -2.76, BIDU +5.64 (5.37%), BOX -.01, IBM +2.45, BA +9.97, CAT +2.86 and XLK $80.48 -.41 (.51%).
FINANCIALS: wereHIGHERwith the stocks moving with rates. GS +3.15, JPM +1.35, BAC +.62, MS +.39, C -.03, PNC +1.60, AIG +.09, TRV -2.66 (1.78%), AXP -2.80 (2.33%) and XLF $27.96 +.10 (.36%).
OIL, $57.40 -.45.The Oil made another assault on the $58.00 level today (58.76) before the announcement of the hawkish John Bolton leaving the WH (see above) and it gave up 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 $2.58 - .005, and I am looking for a place to buy UNG to participate. All the stocks on my list were higher with XLE finishing $61.30 +1.09 (1.81%).
METALS, GOLD: $1,499.20 – 11.90.Gold dipped on Friday on Chairman Powell’s comments and continued lower today. I am looking for a place to reestablish a position (1,475 or so) 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 $18.186 + .019.
BITCOIN: closed $10,060 -310.Today’s quiet day had little meaning to me and I am still quite bullish, however I feel like we may be running out of time for this formation to send us higher right now. 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 $12.05 -.24.
Tomorrow is another day.
CAM
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