Market Strategies Newsletter - Special Daily Edition
For Trading MAY 14th
DJIA -1315 From Yesterday’s High
POWELL Says, “No Neg Rates”
Today’s market was down from the start with PPI numbers and Jay Powell talking about the economy, negative rates, a slower than Trump promises recovery and just in general spooking anyone within the sound of his voice. The futures had been higher, but the rally in afterhours last night had pushed up the “fair value” to the point of a negative open. It only got worse throughout the day as the A/D and volume piled up on the downside finishing 8:1 down on the NYSE and 4:1 on the NAZ, but also on the NY the volume was a solid 7:1 down too. On the DJIA we had only one stock up, MRK, and only $ .74. The losers were spread around with UHN the biggest loser -70, GS -37, MMM -36 AND AXP -35 DPs. Financials, Energy, and Industrials were the weakest with Consumer staples and Utilities the “least weak.”
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 1900 members. I also did this video titled “How to survive being an options trader and not blow up your account,” over the long weekend. I think it’s very informative as a guide to stock selection and option choices. The link is
Tonight’s closing comment video
SECTORS:The news from UBER / GRUB was that there would be no deal at 2.1 shares of UBER for GRUB, but it was disclosed that UBER was considering a ratio of just 1.9:1, so UBER moved up $ .62 while GRUB was lower by $2.25 (3.73%). The good news was that UBER said there were $300 million in cost efficiencies in the deal for them. Not much of a dent in the $2.9 Billion they lost this quarter, but I guess you have to start somewhere.
Cisco reported a beat after the close and the stock, down from a high yesterday of $44.30 had closed $41.95 - $1.27 rallied on the news to $44.45 but closed $42.94 +.99.
ASCO, the Cancer Society annual meeting is in 2 weeks, and Allogene (ALLO) published their findings on a new therapy and the stock shot up from its close of $30.98 -1.56 (4.79%) to trade as high as $46.57 before closing $39.50 + 8.52. There will be a steady stream of these type of announcements in the next 10 days.
FOOD SUPPLY:wasMIXEDwith TSN -1.58, BGS +1.50, FLO +1.29, CAG +.18, MDLZ -.84, KHC -.16, CALM -.55, JJSF -.65, SAFM -.94, LANC +.63, GO -.61, UNFI +7.22 (46.55%) on preliminary reporting of their Q3 sales and several upgrades lead the group, and BYND +1.07.
BIOPHARMA:wasLOWERwith BIIB -4.81, ABBV -1.38, REGN +19.46, ISRG -13.93, GILD -.61, MYL -.53, TEVA -.37, VRTX +1.43, BHC -.64, INCY -.29, ICPT -2.37, LABU -2.69 and IBB $130.00 -1.05 (.80%).
CANNABIS:This group wasLOWERwith TLRY -.21, CGC -1.07, CRON -.28, GWPH -3.95, ACB -.56 (8.67%), PYX -.04, NBEV -.065, CURLF +.06, KERN -.02 and MJ $10.96 -.59 (5.11%).
DEFENSE:wasLOWERwithLMT -5.51, GD -.52, TXT -1.63, NOC -5.05, BWXT -1.69, TDY -5.90, RTX -2.07, and ITA $141.70 -4.37 (2.99%).
RETAILwasLOWERwith M +.06, JWN -.66, KSS -.31, DDS -1.19, JCP +.035 (17.65%), WMT +.42, TGT +.27, TJX -.76, RL -.52, USS -.74, LULU -11.22, TPR -1.21, CPRI -.62, and XRT $36.04 -.96 (2.59%).
FAANG and Big Cap:were LOWERwith GOOGL -20.28, AMZN +15.05, AAPL -2.91, FB -3.80, NFLX +7.79, NVDA +3.29, TSLA -9.62, BABA -.01, BIDU -1.17, CMG -24.73, CAT -.46, BA -2.32, DIS -1.07 and XLK $91.83 -1.61 (1.72%).
FINANCIALS wereLOWERwith GS -4.85, JPM -2.83, BAC -.87, MS -1.24, C -1.40, PNC -3.21, AIG -1.45, TRV -4.12, AXP -4.17, V -1.16 and XLF $20.66 -.63 (2.96%).
OIL, $26.68 -.65.Oil was another short-range day that gave no hint of direction to come as we finished down a bit. The contract was rolled forward so the price is slightly higher but still unable to make any headway against overhead supply. All the stocks on my list were lower with XLE $35.73 -1.70 (4.54%).
METALS,GOLD: $1,716.40 +9.60.After the recent gains, Gold broke below $1,700 yesterday but failed to follow-thru to the downside and closed higher. The 5 and 20-day MAs look like they may cross to the upside, But it was still unable to break the downtrend line at $1,726. We are long NEM.
BITCOIN: closed $9,270 +400.After breaking out over $7500 we have moved as high as just over $10,000 before gapping down overnight to trade as low as $8,400 earlier this week. We continue to recover higher prices and we added 350 shares of GBTC yesterday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $11.21 + .58 today.
Tomorrow is another day.
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