GWO Daily Note 1/15/2020
Market Strategies Newsletter - Special Daily Edition
For Trading January 16th
“PHASE ONE” SIGNED
YAWN
Target Disappoints
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Today’s market started off higher and made the high of the day before 11:15 +198 and then spent a couple of hours going sideways before we started a sell-off to make a late day low +39 before a last 15-minute rally to close +90.55 (.31%). The NASDAQ +7.36, S&P 500 +6.14 (.19%), the Russell +6.66 (.40%) and the DJ Transports +30.88 (.28%). Clearly, the signing of the Phase One agreement left a bit to be desired since there were no real surprises and the deal is breakable from either side. This has been used to run the market so many times with the same facts, and yet they keep using it. Next comes Phase 2, which nobody has any clue as to when or what will be included. Market internals were 5:4 on NYSE and 3:2 on the NAZ. Healthcare, utilities and consumer staples took the lead with financials and energy the weak ones. The DJIA was 17:13 with UNH +55 and V +25 DPs the big winners and BA-17, JPM -14 and MMM-11 the big losers.
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:We started the day with disappointing numbers from TGT for both toys and electronics. The stock, which doubled last year fell as low as $115.56 finished the day $117 -8.26 (6.59%). The loss was met with more selling in the whole retail group.
We also had disappointment in some financials with GS closing midrange @ $245.23 after trading as low as $239.16. BAC was also lower by just under 2%, even though their numbers were above expectations.
First Solar (FSLR) was downgraded at Barclays with a price objective of $49, down from $66 and the stock headed in that direction closing $54.75 -4.03 (6.86%). Align Tech (ALGN) which had a move from a low of $25 in 2014 to trade as high as $398.88 in 2018 and fell to trade $169.84 in September had rallied to a high of $300 last week, closed $287.61 and fell today as low as $269.46 before closing $274.10 -13.51 (4.7%) on the news from Smile Direct that they had a deal to sell their product directly to dentists and orthodontics offices. SDC, one of the worst performers since its IPO has also moved from over $21 to a low in December of $7.56 has recovered in the last several days to $13.72 +2.02 today.
Last, LMP Automotive (LMPX), an E-commerce retail platform for auto sales and subscription, and rentals of new and used cars, which came public on 12/5 @ $5.00 raising just $2.3 million has traded as high as $44 within day, and fallen back to $17 and rallied to close $29.94 yesterday and traded to $38.66 +8.72 (29.12%).
BIOPHARMA:wasmixedwith BIIB -5.52, ABBV +1.27, REGN +3.13, ISRG -2.29, MYL +.85, TEVA +.50, and IBB $121.76 +.65 (.53%).
CANNABIS:stocks wereHIGHERwith CGC +1.02 (4.28%), CRON +.51 (6.46%), ACB +.32 (17.8%), AND ACRGF +.81 (13.87%), KERN +1.82 (25.14%) and MJ $18.75 +.96 (5.4%). This was the group I called the best chance for a January Effect trade.
DEFENSE:wasHIGHERwith ITA $231 +.64 (.28%).
RETAILwasLOWERwith M -.44, JWN -1.09, KSS +.19, DDA -.20, JCP -.03, WMT -.78, TGT (see above), TJX -.92, RL -1.14, UAA +.06, LULU -.17, TPR +.37, CPRI -.15 and XRT $45.34 -.27 (.59%).
FAANG and Big Cap:were MIXEDwith GOOGL +11.41, AMZN -4.69, AAPL -.48, FB +2.45, NFLX +1.51, NVDA -1.13, TSLA -18.17 (3.38%), BABA -.79, BIDU -.09, IBM +1.03, BA -2.11, CAT -1.11 and XLK $95.19 +.11 (.76%).
FINANCIALS wereLOWERwith GS (see above), JPM -1.87, BAC -.63, MS -.01, C -.35, PNC -5.48 (3.43%), TRV +.92, AXP +1.30 and XLF $30.67 -.17 (.55%).
OIL, $58.06 -.17. Today’s action was a quiet and short-range day. While we may have to test the $55 – 56.00 range again, if we turn higher now, I’d take a shot on this oversold market. The stocks wereLOWER with the market and XLE $59.40 -.44 (.74%).%).
METALS,GOLD: $1,554 +9.40after breaking out “of the box” earlier last week, and the Iran news, we traded as high as $1,613 before turning down. I bought the GLD calls after we traded down to my area of support around $1,545 and after the small consolidation started higher today.
BITCOIN: closed $8,880 + 130.We broke to the upside today and I was looking for a close above $8,280, which we easily cleared. I now expect a test of $9,200 to $9,500. We own 750 GBTC with an average of $8.99. GBTC closed $10.00 -.03 today.
Tomorrow is another day.
CAM
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