GWO Daily Note 9/11/2019
Market Strategies Newsletter - Special Daily Edition
For Trading September 12th
Oil Fails to Hold, Again
Rates Continue Firm
AAPL & BA Lead the Way
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Today’s market broke out of its recent narrow ranges and took off on the upside. The futures were quiet overnight and after a minor downtick at the open, the market spent the entire day slowly building on its gains until the last 15 minutes when it took off and put on an additional 75 closing +227 (.85%), NASDAQ +85.52 (1.06%), S&P 500 +21.51 (.72%), the DJ Transports +87.30 (.82%) and the biggest mover, the Russell +32.72 (2.12%). A/D were strong but not climactic with NYSE 2.5:1 and NAZ 2.9:1. DJIA was split with 22 up and 8 down. The heavy lifting was done by BA +90 and AAPL +46 DP’s. The rest were up less than 20 DPs and on the downside there were none down double digits. Clearly the reaction to the AAPL TV + and its discounted (vs. competitors) pricing, and the breakout of BA over the last 2 ½ week consolidation lent just the kind of leadership that was necessary to push the S&P 500 back to 3,000.
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 update on our 8 Stocks for Total Return and it is available with the following link: http://www.crweworld.com/article/finance/1234472/gwo-daily-note-special-edition ...
SECTORS: Other names in the news: As I said above, BA and AAPL were clearly in the forefront of today’s gains, but the gains were pretty broad. Some of the names in the news were, Gamestop: GME, a company that I have no idea why is even still around. Could there be more of a “buggy-whip” company in the world of streaming of everything? They reported last night and citing falling sales, they are closing 180-200 of their 5,700 locations. I would think that it should be the other way around, but that’s just me. The stock, at its peak was $63.77 (split 2:1 in better times) and after falling to $15in 2012 it managed to climb back to a high of $57.74 in 11/2013, but has since traded $3.15 last month. Today’s close was $4.59 -.50 (9.82%).
Another one with not much reason to exist is TOPS, Top Ships, Inc. The company operates as a “ship owner.” This one managed to get back into the good graces of NASDAQ compliance by a reverse split of 1:20 last month. I know this is going to be hard to believe, but this one has been reversed so many times that its “adjusted high” is an astonishing $9,360,468 in 2/2017. Since the total reverse is 1:720M, the company needed to do an offering of $10MM, including 1.58MM shares plus warrants, priced to yield $9,950,000. The stock finished the day $4.33- 3.97 (47.83%).
The last “sterling citizen of the world”, MNK was back on the downside today. This is down from a high over $130 back in 2013 and has been at the center of the Opioid crisis and rallied 85% to $3.88 yesterday when Perdue Pharma agreed to a partial settlement on its way to bankruptcy. Unfortunately for MNK shareholders, S&P downgraded the company and the stock finished $3.36 -.52 (13.4%).
Okay, some good news; furniture maker Lovesac (LOVE) reported solid numbers and has managed to lower their manufacturing from 75% to 44% in China. They beat expectations and confirmed guidance and were rewarded with a gap up this morning to $21.85, traded $23.66 and finished +2.90 (15.75%).
Two little ones made some headway with Arca Biopharma (ABIO) being selected to present their Atrial Fibrillation at the HFSA meeting this month. The stock, which closed yesterday $5.70, opened $7.00 and after trading as high as $7.44, it finished $6.45 +.75 (13.16%). YUMA Energy (YUMA) signed a deal with Red Mountain Capital to purchase all of YUMA’s debt and help in a restructuring. The stock closed $1.82 yesterday and opened today 2.32, traded $5.10 and finished $2.94 +1.12 (61.54%).
After the close we had news from ORCL. The moved up their quarterly report a day to coincide with the announcement that Mark Hurd is taking a leave of absence for medical reasons. Earnings were strong, with the 3rd year of double-digit gains, although revenues were a minor miss. Safra Catz and Larry Ellison said they will fill the void in Mark’s absence. The stock, up from $51 to close $56.29 +.82 fell to a low of $52.45 has recovered to $55.94.
BIO/PHARMA:stocks wereHIGHERwith the biggest winners LABU + 2.55 (6.63%), ISRG +20.52 (4.09%), and MYL +.62 (2.83%). The IBB finished $105.00 +2.02 (1.96%).
CANNABIS:stocks wereMIXEDwith the biggest winners GWPH +7.96 (5.59%), NBEV +.15 (4.7%), and CURLF +.16 (2.03%). The biggest losers were ACB -.46 (7.32%), CRON -.46 (3.92%), CGC -.98 (3.57%), and TLRY -1.20 (3.85%). MJ was $25.41 -.08 (.31%).
DEFENSE:wasHIGHERacross the board with ITA $227.00 +4.23 (1.9%).
RETAIL:wasHIGHERwith TJX the only loser -.22. The biggest gainer was JCP $1.2699 + .2599 (25.73%), UAA +.61 (2.94%), M +.78 (4.56 and XRT $43.90 +.29 (.66%).
FAANG and Big Cap:were HIGHERwith the exception of IBM -1.04 (.72%) while the rest of the list up by 1.25 – 2%, with the exceptions AAPL +8.75 (4.04%) and BA +15.01 (4.06%). XLK was $81.70 +1.22 (1.52%).
FINANCIALS: wereHIGHERwith the stocks moving again with rates. I think that they are getting a bit tired but they finished with GS +2.15, JPM +.45, BAC +.25, MS +.42, C +.27, PNC -1.89, AIG +1.10, TRV -.21, AXP +1.03 and XLF 28.25 +.29 (1.04%).
OIL, $55.75 -1.65.The Oil made another assault on the $58.00 level today (58.30) before the announcement the Mr. Trump was considering the lifting of some Iran sanctions. 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 lower today closing $2.552 - .028, and I am looking for a place to buy UNG to participate. Most of the stocks on my list were higher with XLE finishing $61.44 +.52 (.85%).
METALS, GOLD: $1,503.20 + 4.00.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 $18.17 -.016.
BITCOIN: closed $10,125 + 65.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 $12.22 + .17.
Tomorrow is another day.
CAM
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