GWO Daily Note 1/16/2020
Market Strategies Newsletter - Special Daily Edition
For Trading January 17th
NEW HIGHS ACROSS THE BOARD
TSLA CLOSES LOWER, BUT ON HIGH
BANKS FIRM, EXCEPT BK
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Today’s market started off higher and made the initial high of the day before 10:45 at +187, spent the next several hours going sideways until the last hour when it added an additional 100DPs to close +267.42 (.92%), NASDAQ +98.43 (1.06%), S&P-500 +27.52 (.84%, the Russell +22.82 (1.36%) and the DJ Transports +109.56 (.98%). Market internals were good with both NYSE and NASDAQ both just over 2.5:1, while the volume was just about the same. The DJIA was 26:4 up with no double-digit losers, and the biggest gainers were GS and UNH +30, HD +29, AAPL +27 and MSFT +21DPs. GOOGL breached the $1trillion level for the first time making it the fourth company to do so. The strong sectors include Information Tech, industrials and consumer discretionary while Energy was the big loser.
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 a big surprise from Signet (SIG), a stock that I was short from just over $130 down to the high sixties, long once in a while and then short again into the forties. The company reported a seemingly minor improvement of sales +1.6%, but with the short interest, they rushed to cover and the stock opened $28.41 and rose to $31.44 before closing the day $30.14 +8.64 (40.2%). This has been a typical reaction on the most heavily shorted stock in the current rally.
XPO disclosed that they were considering a spin-off or outright sale of non-core businesses and the stock, which traded down from $116 last fall to trade $41.05 in December and today closed $95.35 +12.53 (15%). And, Morgan Stanly reported a solid beat and the stock rose to prices not seen since early 2018. It closed $56.44 +3.50 (6.6%) and Charles Schwab also beat and closed $49 +1.88 (4%). On the “not so fortunate side” was BNY Mellon (BK) with a miss closing $46.72 -3.97 (7.8%), and TESLA (TSLA) was weak in the morning, trading as low as $492.17 – 26.33, but by the close it was $513.49 -5.01 (.97%) but on the high of the day.
BIOPHARMA:wasMIXEDwith BIIB -7.09, ABBV +.18, REGN -5.18, ISRG +1.05, MYL -.02, TEVA +.08, VRTX +1.35, BHC +.75, INCY +.08, ICPT -2.61, LABU +1.20 and IBB $122.20 +.47 (.39%).
CANNABIS:stocks wereLOWERwith TLRY -.89, CGC -.50, CRON -.23, GWPH +2.94, ACB +.13, PYX +.94 (10.78%), APHA -.03, NBEV +.01, ACRGF -.15, CURLF -.20, KERN -.35 and MJ $18.69 -.06 (.31%).This was the group I called the best chance for a January Effect trade.
DEFENSE:wasHIGHERwith ITA $232.74 +1.85 (.8-0%).%).
RETAILwasHIGHERwith a positive number for retail sales, however, I hold off judgement until we see if they brought anything to the bottom line. XRT finished $45.93 +.59 (1.3%).
FAANG and Big Cap:were HIGHERwith GOOGL +15.00, AMZN +15.18, AAPL +3.95, FB +.62, NFLX +.23, NVDA +3.36, TSLA (see above), BABA -.56, BIDU +.31, IBM +1.36, BA +2.30, CAT +2.43 and XLK $96.47 +1.28 (1.34%).
FINANCIALS wereHIGHERwith GS (see above), JPM +.77, BAC +.12, MS (see above), C -.11, AIG +.58, TRV +1.28, AXPN +1.18, XLF $30.94 +.27 (.88%).
OIL, $58.52 + .71. 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 wereMIXED with the market and XLE $59.60 +.10 (.17%).
METALS,GOLD: $1,550.50 -3.50after 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 $8,790 -90.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 $9.73 -.26 today.
Tomorrow is another day.
CAM
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