GWO Daily Note 1/21/2020
Market Strategies Newsletter - Special Daily Edition
For Trading January 22nd
CORONA VIRUS
SPOOKS MARKET, AIRLINES, HOTELS,
AND GAMING STOCKS
BA BITES THE BULLET ON MAX
TSLA CROSSES $550
ON NEW STREET TARGET OF $800
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Today’s market started off lower and by 11:00 we had made the early low -113 before a rally that took us back to down just 7 before we worked sideways until about 1:30 when the news broke that BA had again pushed out the return of the MAX to June or July and the market fell to the new and final low of the day -202. After a brief rally back to -100 we finally finished -152.06 (.52%), NASDAQ -18.13 (.19%), S&P 500 -8.83 (.27%) the Russell -13.74 (.81%) and the big loser, the DJ Transports -203.11 (1.80%) on the Corona virus news. The A/D was pretty much the same for both NYSE and NAZ at 1.5:1 down, and the DJIA was 17 down, 13 up with the big loser BA -73, GS -25, AAPL -15, CVX -15 and CAT & MM -13DP’s each. The only double-digit gainers were V +18 and UNH +15DPs. IBM was +.86 at the close, but reported and actually beat for the first time in 5 quarters and is currently up $6.68 in real terms, so that will add to the DJIA in the morning.
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 the weekend news that a new Coronavirus has been identified in China and that there were 6 dead and at leastseveral hundred sick. Later in the day that number increased, including at least 1 case in the U.S. in Washington state. The reaction was swift in several industries that cater to travel, including airlines, hotels, gambling, and booking services. In the gaming sector the most exposed to Macao were the worst hit with MLCO which has just recovered from $18.84 to close $25.02 gapped down and finished $22.62 -2.40 (9.59%). WYNN was 142.31 -9.31 (6.4%), LVS 70.07 -$4.00 (5.4%) and MGM $32.39 -2.15 (6.22%). Hotels were led lower with MAR $144.37 -5.89 (3.92, and Carnival Cruise (CCL) $50.69 -1.21 (2.33%). On the booking side, BKNG was as low as $1963 managed a close of $1990.57-64.12 (3.12%) and TRIP 30.49 -.44 (1.42%).
BYND was higher all day with the statement from SBUX wants to expand its “plant-based” offerings. It finished $129.18 +20.06 (18.3%). BA actually opened up this morning but around 2:00 it was slightly lower and the word got out (later confirmed) that the MAX isn’t expected to be back until the summer. The stock was actually halted (news pending) and it had fallen to a low of $305.75 before both a rally to back to 322 and another slide to close $311.64 -12.51 (3.66%).
On the earnings front we had mixed results from NFLX and after a slight gain on the headline of a beat in revenues it fell to -11, then rallied to $352 and is last $346.13 +6.46 (1.9%). IBM broke its 5 consecutive down revenues quarters and had a slight beat on net rallied as high as $144.30 and is last $144.10 +5.79 (4.19%).
And, lastly, early morning news of the FDA fast-tracking Nanoflu for Novavax (NVAX) sent that one up from its close of $5.74 to trade as high as $9.99 and it settled at $9.82 +4.08 (71%), but:
TheHOMERUN OF THE DAYWAS GENPREX (GNPX), who also got a fast track for its treatment for lung cancer, and closed Friday at $ .36, traded as high as $1.74 before giving back a bit but still managing $1.15 +.79 (219%). How many stocks can you recall that finished 40%below its high still up over 200%?
BIOPHARMA:wasLOWERwith BIIB +1.69, ABBV -.08, REGN -21.94 (5.68%) even though they are one of the leaders in the development of a vaccine for the above mentioned virus, ISRG +1.62, MYL +.04, TEVA -.16 (I’m looking to get back into that one), VRTX -1.84, BHC -.52, INCY _1.85, ICPT -5.37 (5.06%), LABU -2.62 and IBB $120.72 -1.16 (.96%).
CANNABIS:stocks wereLOWERwith TLRY +.18, CGC -.65, CRON -.35, GWPH +1.68, ACB -.12, PYX -.36, APHA +.12, NBEV -.08, ACRGF -.39, CURLF +.43, KERN -.74 and MJ $18.30 -.45 (2.4%).
DEFENSE:wasMIXEDwith LMT -.56, RTN -2.35, GD +.91, TXT -.62, UTX -.30, NOC -1.84, BWXT -.86, TDY +11.12, and ITA $229.55 -2.66 (1.15%).
RETAILwasLOWERwith M -.58, JWN -.65, KSS -.99, DDS +.14, JCP -.04 (5.18%), WMT +.64, TGT -2.75, TJX -.29, RL -3.09, UAA -.36, LULU +.97, TPR -.57, CPRI -.12, and XRT $45.64 -.24 (.52%).
FAANG and Big Cap:were MIXEDwith GOOGL +2.48, AMZN +27.38, AAPL -1.40, FB -.48, NFLX +5.53, NVDA -1.13, TSLA +43.90 (8.6%), BABA -4.87, BIDU -2.61, IBM (see above), BA -12.47, CAT -1.94 and XLK $97.35 +.23 (.24%).
FINANCIALS wereLOWERwith the slip in interest rates and GS -3.51, JPM -1.20, BAC -.42, MS -1.51, C -1.14, PNC -2.55, AIG -1.23, TRV +.22, AXP -1.32, and XLF $30.77 -.26 (.84%).
OIL, $58.38 -.20. Today’s action was a catch-up day from the holiday and a fairly big range day. We managed a test of both $58 and $60 and finished barely changed. I think this market is in a “no-man’s land” until we break one-way or the other. The stocks wereLOWER with the market and XLE $58.11 -1.06 (1.79%).
METALS,GOLD: $1,557.90 -2.40after 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. We bought the GLD 2/149 calls @ $1.10 today.
BITCOIN: closed $8,750 -175.We broke to the downside today and managed a close well off the low 8,515. I now expect a test of $9,200 to $9,500. We own 750 GBTC with an average of $8.99. GBTC closed $9.72 -.35 today.
Tomorrow is another day.
CAM
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