GWO Daily Note 4/1/2020
Market Strategies Newsletter - Special Daily Edition
For Trading April 2nd
Back to the Doldrums!
All Day Selloff
Banks and Retail Hard Hit
Today was another day the carryover from yesterday never gave it a chance to recover. News was not good really anywhere, but none much worse than what CCL had to pay in the marketplace to raise $4billion. I’m assuming that they are using their ships as collateral and it still cost 12%. From my perspective that is an almost unheard-of number for such an asset rich company, and the stock showed it finishing $8.80 4.37 (33%). There were also a couple of smaller oil deals that chaptered today, leading to the expectation that more will be on the way. All 11 S&P sectors were lower with the surprise being that the leaders on the downside were the normally “safe” groups like Utilities -7.7%, real estate -7.4% and banking -6.4%. There was clearly a “flight to safety with the bonds strong all day and the 10-year falling below .60% and the 5-yr notes .375%. One surprise was a late day rally in the Oil which had briefly broken the $20 level only to rally back and head toward $21.55 +1.05. Market internals were lopsided on NYSE at 13:1 and slightly better on NASDAQ close to 6:1.
Volume picked up a bit but at the end of the day it was roughly 9:1 negative. Also not helping matters was Mr. Trump’s comments on the fact that were we going to have to weather the next two weeks of “very painful” statistics in terms of fatalities. He is meeting with CEOs of major Oil companies on Friday, if they’re not smart enough to travel to Washington. XRX is also withdrawing its offer for HP, Marriott (MAR $69.15 -5.66 (7.6%) confessed to yet another security breach affecting 5.2 million customers and Macy’s (M) is being dropped from the S&P 500 index.
The final numbers were DJIA -973.65 (4.44%), NASDAQ -339.62 (4.41%), S&P500 -114.09 (4.41%), the Russell -81.11 (7.03%) and the DJ Transports -379.74 (4.91%). The DJIA was 29 down and WMT the only gainer. The biggest losers were the usual suspects with BA -125, AAPL -91 and UNH -79 DP’s.
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:
BIOPHARMA:wasLOWERwith only REGN +8.36 (1.71%) AND INCY + .95 (1.3%) the only winners. On the downside we had BIIB -23.11 (7.3%), ABBV -2.77 (3.64%), ISRG -36.95 (7.46%), MYL -.67 (4.69%), TEVA -.47 (5.23, VRTX -12.47 (5.24%), BHC -1.75 (11.29%), ICPT -4.56 (7.24%), LABU -3.24 (14.37%) and IBB $103.75 -3.99 (3.7%).
CANNABIS:This group wasLOWERWith only the software service KERN the only winner +.30 (1.76%) while TLRY -.96 (13.95%), CGC -.84 (5.83%), CRON -.36, GWPH -2.32, ACB -.06, PYX -.32 (10.29%), NBEV -.18 (12.95%), CURLF -.45 (11.45%), and MJ $10.56 -.84 (7.37%).
DEFENSE:wasLOWERwithRTN-7.25 (5.53%) while its merger partner UTX finished an agreement to spin out Otis Elevator and Carrier products in order to qualify for the merger and UTX was $91.45 +35.25 (62.72%). The deal closed Friday. ITA was $136.77 -7.08 (4.92%).
RETAILwasLOWERwith only WMT +1.51 (1.33%) and TGT +2.33 (2.51%) while the rest of the group was lead lower by M -.33 (6.72%) after being kicked out of the S&P500, JWN -2.04 (13.30%), KSS -1.44 (8.87%), JCP -.03 (8.33%), TJX -3.21 (6.71%), RL -1.44 (1.71%, UAA -.72 (7.82%), LULU -4.99 (2.63%), TPR -1.65 (12.74%), CPRI -1.87 (17.33%) and XRT $28.03 -1.75 (5.88%).
FAANG and Big Cap:were LOWERwith GOOGL -58.95, AMZN -40.72, AAPL -11.45, FB -5.82, NFLX -9.80, NVDA -17.90, IBM -5.23, TSLA -38.41 (7.33%), BABA -5.99, BIDU -1.89, BA -16.19, CAT -4.04, DIS -.85, and XLK $76.76 -3.61 (4.44%).
FINANCIALS wereLOWERwith GS -8.11, JPM -5.03, BAC -1.24, MS -2.10, C -3.02, PNC -8.72 (9.11%), AIG -2.26 (9.32%), TRV -4.14, AXP -6.81, and XLF $19.55 -1.27 (6.1(%).
OIL, $20.31 -.17.The stocks wereLOWER even with the price of Oil reasonably stable. The stocks were CVX -2.46, XOM +.14, OXY -.57 (4.92%), OAS -.045, NBL -.04, MRO -.09, MPC -2.33 (9.86%), RIG -.06, APA -.04, BP +.32, and XLE $27.62 -1.44 $.96%).
METALS,GOLD: $1,591.40 -5.20.After the recent gains, Gold has failed to break through the highs around $1700 and have fallen back. I will reassess and look for a new entry point.
BITCOIN: closed $6,210 -265.We traded in another short range again today and finished mid-range on 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 $6.51 -.61 today.
Tomorrow is another day.
CAM
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