Market Strategies Newsletter - Special Daily Edition
For Trading MAY 21st
DJIA Regains Losses
First 20-year Bond Auction since 1986
Today’s market was stronger, and we started up on the day and never looked back. The DJIA finished +369.04 (1.53%), NASDAQ +190.68 (2.08%), S&P 500 +48.67 (2.05%), the Russell +39.21 (3.0%). Market internals were positive with NYSE 2.5:1 and NASDAQ 2.4:1) with lower volume again. DJIA WAS 24 UP / 6 DOWN, with the biggest winners. The biggest winners were AAPL +41, DIS +39, V +30, MCD +29, CAT +25, GS +24 and CVX +23DPs, with no double-digit losers.
The Treasury brought back the 20-Yr. Bond auction for the first time since 1986, and it was greeted by a “Bid to Cover” of 2.5:1. This would be as if an IPO was coming with 10 million shares and that there were public orders for 25 million shares. It was received better than expected and prices remained stable to higher for the rest of the day. This was bullish for our position in the TLT call position we own.
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 https://youtu.be/6GnGjBQpaKg
SECTORS:The news was pretty scarce this morning and the market didn’t seem to need any excuses to move higher. The early morning earnings from TGT and LOW didn’t do much to help or harm the overall market. TGT and LOW were well withing expectations and slightly positive, but they went in opposite directions. TGT ended -3.52 (2.86%) while LOW traded higher by almost $6 at $122.69 but finished down at $116.99 +.12. The sector that got the most attention came to light in the afternoon when it was announced that there were many of the Chinese companies that have raised money here and trade on our exchanges do not meet either our listing requirements or our accounting standards. BABA and BIDU, both up dramatically this week on solid earnings got caught in the hoopla and fell well off their highs and closed basically unchanged.
FOOD SUPPLY:wasMIXEDwith TSN +2.14, BGS -.69, FLO -.44, CAG -.31, MDLZ -.04, KHC +.41, CALM +1.04, JJSF +2.79, SAFM +2.69, LANC -.23, GO -.57, and PBJ $30.94 +.22 (.72%).
BIOPHARMAwasHIGHERwith BIIB -.55, ABBV -.14, REGN +19.29, ISRG +21.31, GILD +.96, MYL +.22, TEVA +.09, VRTX +2.34, BHC +.47, INCY +3.40, ICPT +5.40, LABU +4.01, and IBB $133.50 +2.29 (1,75%).
CANNABIS:This group wasHIGHERwith TLRY +.03, CGC +.10, CRON +.08, GWPH +3.55, ACB +2.00 on the news of their acquisition for stock of the CBD product company, Reliva, for $40million in stock. MJ was $13.24 +.58 (4.58%).
DEFENSE:wasMIXEDwithLMT -7.48, GD +1.71, TXT +.84, NOC -6.03, BWXT -.18, TDY +5.17, RTX +.06, and ITA $150.07 +.93 (.62%).
RETAILwasLOWERwith the brands higher. M -.03, JWN -.63, KSS -.58, DDS +1.00, WMT +.50, TGT -3.52, TJX +.44, RL +2.14, UAA +.44, LULU +7.99, TPR +.40, CPRI +.55 and XRT $38.24 +.20 (.53%).
FAANG and Big Cap:were HIGHERwith GOOGL +34.76, AMZN +52.66, AAPL +6.02, FB +14.92, NFLX -2.84, NVDA +9.03, TSLA +6.50, BABA -.23, BIDU -1.23, CMG +25.92, CAT +3.45, BA +3.05, DIS +5.40 and XLK $97.50 +2.09 (2.19%).
FINANCIALS wereHIGHERwith GS +3.62, JPM +2.53, BAC +.68, MS +1.52, C +1.07, PNC +3.84, AIG +.41, TRV +2.27, AXP +3.34, V +4.54, and XLF 22.07 +.48 (2.22%).
OIL, $33.49 +1.53.Oil was higher today with the close right on the falling 50-day moving average. I thought that the most recent downside break occurred from just under $29.00 and may stop this move too, but as we saw, it went right through that level. All the stocks on my list were lower with XLE $39.35 +1.51 (3.99%).
METALS,GOLD: $1,752.10 +6.50.After breaking the downtrend line around $1727 we came all the way back to test it this morning, before we continued higher and closing strong.
BITCOIN: closed $9,570 -110.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 today broke above the $10030 close from which we gapped down on Monday. We added 350 shares of GBTC Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $11.23 -.15 today.
Tomorrow is another day.
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