GWO Daily Note 3/24/2020
Market Strategies Newsletter - Special Daily Edition
For Trading March 25th
Historic Gain
DJIA + 11.37%
Energy and Gold Explode Higher
Last night I reminded you that were we setting up for a rally even though we had a new closing low -582, and today was that rally. Futures were close to limit up pre-open and we got off to a dramatic start. Gold was +$100, something I had never seen in my 50+ years of trading. The gain in the DJIA was +2112.98 (11.37%), NASDAQ +557.19 (8.12%), S&P 500 +209.93 (9.38%), the Russell +94.14(9.39%) and DJ Transport +829.85 (12.38%). The strongest groups were energy, financials and materials and consumer staples while still up were the weakest. Market internals were positive with NYSE 11:1 and NASDAQ 5.8:1 and while that was impressive, volume was not, being a slower day than we have seen on the downside. DJIA had only 1 stock, VZ on the downside while 9 of the 29 gainers were up triple digits. The top 5 were UNH +175, MCD +168, HD +160, AAPL +152 and BA +150 DP’s. I cannot stress enough that a rally of even 30% on a stock down 70% is nice, but the numbers just don’t work in a meaningful way. If you have a $100 stock, -70% is $30, and a gain of 30% is $9, or $39. That just leaves a little over a 250% move to get back to $100. That should be a sobering thought. And while Mr. Trump may “want” to get America open by Easter (4/12) there is not a scintilla of evidence that could even possibly happen. But you probably knew that. This the link to my closing comment: https://www.youtube.com/watch?v=3FDaMpsB0x4&feature=youtu.be
We also came into the day with calls on GLD, which had closed yesterday @ $ .32, that were sold today $1.11 +208%, and we also bought some SPY puts (a small position) at $3.20 that closed @ $2.91.
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, and we’ve grown to almost 800 members.
SECTORS: Other names in the news:There were plenty of big gainers today, and one of the outstanding issues was Chevron (CVX). The energy group was +16.3% with CVX closing $66.55 +12.33 (22.7%) on the news that it has no intention of cutting their dividend. They have suspended their buyback program (exactly when it probably means buying low priced shares) and are cutting the cap. ex. spending plans by $4billion, also questionable. That’s a fight for another day. There wasn’t much that wasn’t higher today, so I’ll just hit some of the highlights.
BIOPHARMA:wasHIGHERwith TEVA in the news again. It was up again after the news that it is a manufacturer of Hydroxychloroquine Sulfate, a potential treatment for COVID-19 and are donating the tablets to hospitals nationwide. After coming up from $6.25 to close today $8.25 + .80 (10.7%), while REGN, also in the COVID-19 space was – 6.10 (1.34) and ISRG gained $64.15 (17.44%). IBB was $103.50 +6.00 (6.25%).
CANNABIS:Even this group had winners with TLRY +.32 (8.3%), CGC +.55, CRON +.26, GWPH +7.23 (9%), ACB +.032, PYX +.80 (42.11%), NBEV +.14, CURLF +.79 (25.67%), KERN +.19, and MJ $10.50 +.90 (9.38%).
DEFENSE:wasHIGHERwith none up less than 5% and several gainers like RTN +18.59 (16.06%), UTX +12.55 (16.74%), TDY +31.22 (13.22%) and ITA $134.00 +16.49 (14.03%).
RETAILwasMUCH HIGHERwith the big retailer + 19 to 30% but the discounters up a meager 5% and the brands running ahead with RL +4.07 (6.22%), UAA +1.29 (16%), LULU +20.49 (11.89%), TPR +3.37 (31.85%), CPRI +2.08 (22.56%) and XRT $29.90 +2.91 (1.78%).
FAANG and Big Cap:were HIGHERwith GOOGL +58.87, AMZN +19.42, AAPL +21.63, FB +8.90, NFLX -3.27, NVDA +34.31, IBM +10.69, TSLA +75.99 (17.43%), BABA +9.16, BIDU +5.23, BA +29.94 (28.35%), CAT +8.15, DIS +11.34, and XLK $77.61 +7.21 (10.24%).
FINANCIALS wereHIGHERwith GS +17.53 (12.99%), JPM +8.68 (10.98%), BAC +2.80 (15.49%), MS +5.15 (18.52%), C +5.06 (14.30%), PNC +9.61 (11.92%), AIG +3.98 (20.62%), TRV +5.24, AXP +14.68 (21.30%) and XLF $19.85 +2.19 (12.4%).
OIL, $24.01 + .65.The stocks wereHIGHER with the price of Oil trading up slightly but the stocks trading with the overall market. CVX confirmed their dividend and was +12.25 (22.65%).
METALS,GOLD: $1,660 90 + 93.20.After the liquidation of the past few week’s gold made a higher low and broke through resistance at $1,520 and rallied hard right through $1,540 and up towards $1,575. I said I still expect a move back toward $1,600 to unfold. Today’s rally was the biggest I’ve ever seen in 50years of trading. We sold our calls, as noted on page 1.
BITCOIN: closed $6725 +425.We traded in a short range today and finished near the highs of the day. While I want to add the 350 sold just over a week ago, I want to wait and see some stabilization. We still own 400 GBTC with an average of $8.06. GBTC closed $7.64 +.45 today.
Tomorrow is another day.
CAM
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