GWO Daily Note 11/12/2019
Market Strategies Newsletter - Special Daily Edition
For Trading November 13th
TRUMP Talks About Nothing New
Mostly Just About How Great He Is!
Earnings Continue
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Today’s market started out higher and by 10:30 we had made a high +79. Around 11:30 we had worked sideways for a while and made a new high, literally by $1 as everyone was waiting for what turned out to be a total “non-event,” Mr. Trump’s speech before the Economic Club of N.Y. It was your typical “look how great I am and all of the perfectly wonderful things I’ve done for you.” Some of the numbers he threw out for the increase in earnings for the middle class were so patently bogus that it was laughable. We went sideways and finally lower to make the low of the day around 3:00, -56 before another rally to close positive, and at a new high close, although not a new high of day. DJIA + .37, NASDAQ +21.81 (.26%), S&P 500 +4.83 (.16, the Russell +.35 (.02%) and the DJ Transports the weakest sister (having not actually made a new high) and down for the third day in a row -70.29 (.64%). The A/D was just a touch negative on the NYSE while volume was 3:2 Down and NAZ was 1:1. The DJIA was 17 up, 13 lower with only 3 in double-digits, BA -31 and CAT -12 DPs with DIS +13DPs.
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 the earnings parade continues with some strong performances by ROK $198.01 +18.81 (10.5%), DXC $35.25 +5.85 (19.9%), TSN $88.88 +6.15 (7.4%) while Dean Foods: DF, the biggest Milk and Dairy products company in the U.S. filed for bankruptcy, citing the plant-based alternatives cutting into its business. Sea Ltd: SE reported triple revenues and raised guidance and finished the day $36.76 +5.76 (18.58%) and after the close announced $1Billion in convertible notes. Surprisingly, the stock is $35.69 -1.07.
On the losing side of the earnings parade we have Advanced Auto Parts: AAP, reported disappointing sales and same store comps and fell 12,68 (7.51%), CBS and VIA both fell after CBS disappointed. CBS had already fallen over 20% since announcing the merger between the 2 Redstone controlled companies. CBS finished the day 37.76 -1.42 (3.62%) with VIA -.64 (2.43%).
Another name I’ve covered here, Overstock: OSTK, which has been all over the place this year from $12 to $23, back to $9 to $29 and closing yesterday $9.42, reported a loss, an expanded SEC investigation and a look into their 10b5-1 plan that covers the sales of stock by certain officers and directors. The stock finished the day $7.78 -1.64 (17.14%) a new 7-year low.
Smile Direct: SDC, the incredibly unsuccessful IPO, priced at $23 in September and never trading above $21.10 and fell to $8.73 last month had rallied back to $13.50 this month reported Q3 numbers and after closing 11.08 -.77 (6.5%) fell again to 9.88 and is now $10.25 -.83. Reata Pharma, which I wrote up when it traded up from $74 to $157 in less than a week, and continued to close yesterday $213.67, announced a 2,000,000 share offering of common stock fell back to earth closing $182.83 -30.84 (14.43%) on the news.
There was also some good news today. AMRN got a favorable opinion from the FDA on Vascepa, a cardiovascular drug. The stock, which exploded higher in Sept. 2018 from $3.00 to $23.00 and has spent most of this year between $14 and $17 closed the day $20.94 +4.03 (23.83%).
Cardlytics: CDLX, a bank marketing firm currently doing business with Wells Fargo and Chase reported Q3 numbers and after closing $39.85, traded $50.00 and is last $49.25 + 9.40 (23.6%).
And, the HOMERUN of the Day was Applied DNA: APDN, which was a reverse split 1:40 last week reported successfully “tagged” leather for protection of products, brands and complete supply chains. The stock closed $4.40 and after trading as high as $19.69, closed $19.00 +331.82%).
BIO/PHARMA:stocks wereHIGHERwith TEVA the big winner again + .24 (2.57%), MYL +.29 (1,68%) and IBB $110.38 +.34 (.31%).
CANNABIS:stocks wereLOWERagain with TLRY - .82 (3.74%) on a widening loss even though revenues were up and the company reportedly sold 5 times as much product. The rest of the group pretty much followed except PYX +.18 (1.79%). MJ was $18.56 -.59 (3.08%).
DEFENSE:wasHIGHER with LMT +5.91, RTN +.88, GD +.93, TXT +.25, UTX +.17, NOC +1.69, BWXT -.28, TDY +.25 and ITA $229.59 +.41 (.18%).
RETAILwasMIXEDwith M +.03, JWN -.53, KSS -.56, DDS -.11, JCP +.06 (5.56%), WMT +.29 (REPORTS TOMORROW), TGT -2.10, TJX -.15, KR +.39, RL -2.55 (2.32%), UAA -.28, LULU +.62, NKE -.55, TPR -.30, CPRI +.19 and XRT $44.36 -.08 (.18%).
FAANG and Big Cap:were MIXEDwith GOOGL -1.07, AMZN +5.35, AAPL -.45, FB +4.94, NFLX -2.43, NVDA +1.32, RSLA +4.68, BABA -.18, BIDU +.75, BOX -.85, BA -3.85, CAT -1.69 and XLK $86.45 +.29 (.34%).
FINANCIALS wereLOWERwith GS +1.01, JPM -.77, BAC -.09, MS -.08, C -.53, PNC -.15, AIG +.01, TRV -.19, AXP -.01 and XLF $29.80 +.04 (.13%).
OIL, $56.80 -.06. Today’s action was another almost inside day. We’ve been stuck trading to a new recent high at $57.85 before coming back to support on a daily basis. The narrative seemed to change overnight (not literally) to “signs of strength in Europe and more demand. The stocks were lower with the XLE finishing $60.04 -.31 (.51%), but I feel like it’s more apt to be because the market is tired.
Prices for Natural gas were lower today and closed $2.621 - .016 and have come down from the recent peaks. We have already tested support on the bounce from 2.40 and we have rallied to hit just under $2.90 and if we close that gap I think we can work higher.
METALS,GOLD: $1,453.70 -3.40,We were stopped out of our long position last week and we have fallen right back down to the most recent, and most important area of support around $1,450. We traded below that but rallied up to close above that level. We went long while it was just under $1,450 and finished the day ahead. Gold was also outside the Bollinger Bands for a couple of days, an occurrence that rarely lasts long.
BITCOIN: closed $8835 +85.We broke to the downside recently but turned sharply higher recovering over $2,655 since breaking $7,500. After the rally to just over $10,000 we have been flagging out in a bullish manner and we got stopped out last week. A close above $9,565 is need to send us higher. I am looking for a good spot to re-enter GBTC, probably after another day or two in this area, or if we dip back to $8,500.
Tomorrow is another day.
CAM
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