GWO Daily Note 1/6/2020
Market Strategies Newsletter - Special Daily Edition
For Trading January 7th
Markets Rally Off Early Lows
Bond Rally Fizzles
RAD Continues Slide
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Today’s market started off lower by as much as -216 before the selling pressure subsided and we started back up. By 2:00 we had erased then entire loss and were hanging around unchanged until the last 15 minutes of the day when we sprinted to the high of the day and a close of +68.50 (.24%), NASDAQ +50.69 (.56%, S&P500 +11.43 (.35% while the Russell was a laggard +2.39 (.14%) and the DJ Transports were the standout loser -62.67 (.57%), even though it too closed on the high of the day having been -166 earlier. The transports were pushed lower with JBHT getting a cut in price target to $124 on a downgrade from outperform to market perform, but that wasn’t the only issue. EXPD fell, along with airlines, and at one point all 20 components were lower. Also, even early today, the FAANG stocks turned and pulled many of the large-cap tech sector back to positive. FB +3.93 (1.9%), AMZN +27.91 (1.5%) AAPL +2.37 (.8%) and GOOGL +34.48 (2.53%) led the way. Market internals turned and at the close we were 15:13 on the NYSE and 17:15 on NAZ. These numbers were actually better than several of the up days in the last 10 days. While Oil reversed from almost $65 to close near the lows, Energy was strong, and also a surprise, Bond yields reversed to up on the day, but Banks were mostly lower.
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.
We closed out our TLT position @ $3.04, a gain of $342, and I also covered 100 RAD of the 300 we are short in the $100M account with a gain of $357.
SECTORS: Other names in the news:Today’s market was really all over the place but the early news was not good. Cal-Maine Foods (CALM) reported a loss of $ .21 vs. expectations of a $ .09 profit, and while the stock bounced off its low of $37.00 to close near the high @ $39.11, it was still lower by $3.34 (7.8%).
On the upside were several big names, CRM was raised at RBC to their BEST IDEA, and the stock jumped to a new all-time high finishing the day $173.45 +7.28 (4.38%).
Smile Direct (SDC) probably the worst IPO of the year, pricing above the $19 -22 range at $23, and then opening -1.45 @ $20.55 and finishing the day $16.67 – 6.33 or 28%), and then falling to a low of $7.56, reported that it is in a deal for some of its products at Walmart. The stock was $10.19 +1.81 (21.6%).
Under Armour (UAA) fell on the resumption of coverage at JPM with a neutral, down from over-perform, questioning the company’s ability to compete in the next half with a “full-price hangover.” The stock finished $20.44 -1.41 (6.45%).
The other big gainer was ATyr Pharma (LIFE), which has been trading between $2.70 and $3.05, and had rallied to close $4.26 on Friday with an average trading volume of 32,000, opened $7.19 +2.93 (68.7%) and traded to 7.62 before finishing $6.11 +1.85 (43.43%) on the news that it signed a collaboration and license agreement for the development with Kyorin Pharma to develop of their clinical candidate, ATYR1923 for ILD’s (interstitial lung diseases).
BIOPHARMA:wasMIXEDwith BIIB -.03, ABBV +.79, REGN -.70, ISRG +2.42, MYL +.67, TEVA -.04, VRTX +6.05 (2.78%), BHC -.56, INCY -.56, ICPT -2.49, LABU +1.43 and IBB $119.12 +.76 (.64%).
CANNABIS:stocks wereLOWERwith TLRY -.50, CGC +.20, CRON -.33, GWPH -.18, ACB -.09, PYX -.74 (8.96%), APHA -.14, ACRGF -.05, CURLF -.20, KERN -.36 and MJ $16.45 -.28 (1.67%).
DEFENSE:wasMIXED with LMT -.74, RTN -.11, GD +2.07, TXT -.04, UTX -.34, NOC +.84, BWXT -.16, TDY -1.27, and ITA $231.50 +1.52 (.66%).
RETAILwasHIGHERwith M + .56, JWN +1.32, KSS +.19, DDS +.17, JCP +.01, WMT -.54, TGT -1.21, TJX +.39, KR +.10, RL +1.65, USS (see above), LULU +2.27, TPR +.34, CPRI -.31 and XRT $45.47 +.16 (.35%).
FAANG and Big Cap:were HIGHERacross the board with GOOGL +36.48, AMZN +20.53, AAPL +2.19, FB +3.89, NFLX +10.35 (3.18%), NVDA +1.33, TSLA +8.99, BABA unchanged, BIDU +2.14, BOX +.38, IBM -.04, BA +.93, CAT -.19, and XLK $92.56 +.22 (.24%).
FINANCIALS wereHIGHERwith GS +1.94, JPM -.54, BAC -.14, MS -.29, C -.28, PNC -.32, AIG -.16, TRV +.15, AXP -1.09 and XLF $30.73 -.02 (.07%).
OIL, $63.27 +.22. Today’s action was a rally to almost $65.00 and a fall back to close near the lows. Supply is fairly heavy here, but the stocks wereHIGHER with the XLE $60.87 + .47 (.78%).
METALS,GOLD: $1,560 +16.40after breaking out “of the box” earlier last week, and has moved higher, and although it traded $1,590, the lack of new negative news caused prices to work lower.
BITCOIN: closed $7710 + 255.We broke to the upside but ran into a brick wall just under $8,000. I was very disappointed to see the break, although we were right back to the lower Bollinger Band. I said “I really interested to see what happens with the 5 and 20-day MA’s now since they are within .02 of each other. Well, they resolved to the upside and I believe we will try 8,000 again. We own 750 GBTC with an average of $8.99. GBTC closed $8.99 +.40 today.
Tomorrow is another day.
CAM
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