Market Strategies Newsletter - Special Daily Edition
For Trading MAY 27TH
FAANG STALLS, TRANNY’S SURGE
ALL 11 S&P Sectors Higher
Today’s market was up after 2 days of strength in the futures markets, including Monday night while we were closed. There was also move vaccine news out of NVAX, which was +11 to $56.50 but could only manage a close of +2.06 (4.47%). The DJIA was dragged higher by the financials as rates rose. After opening +550 or so the DJIA rallied to +710 before a last hour slide back to +529.95 (2.17%), NASDAQ +150 at the open but slide down to barely higher at +15.63 (.47%), S&P 500 opened +65 but could only manage +36.32 (1.23%) while the Russell was +37.54 (2.77%) and the biggest winner was the Transports +425.52 (5.02%). Market internals were strong on the NYSE at 5:1 while the NASDAQ was just 2.2:1 and volume was just average. The DJIA was 24 up / 6 down and the upside was led by financial with GS +110 DPs and BA and JPM +49 AND 43 respectively while the only double-digit losers was AAPL -15 DPs. Also, a major new piece from Mr. Trump’s very great personal friend with whom he has a perfect relationship Premier Xi, was quoted as saying that “China is going to increase preparation for military combat in Hong Kong. I’m fairly sure with all the good will, like Phase one of the Trade infamous trade agreement under which NO SALE of our agricultural goods have actually been consummated, that Mr. Trump will have no problem sending us another few dozen positive tweets from his perfect, most favorite, great friend President Xi. Asia was +1.5% and Europe was up .7% -1.5% on the news that Germany is relaxing it eurozone travel ban. Consumer confidence came out at 10:00 and was a disappointing 86.6 vs. 88.5% expected.
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/fkb7EemPHI0
SECTORS:The news couldn’t have been either more positive or well timed. MRK with 2 announcements on a COVID-19 corroboration and another anti-viral project and opened +2.40, but finished +.89 (1%), NVAX $56 +989 (19%) but closed only +2.06, and JPM was lauded by it’s CEO at a conference about their fortress balance sheet and their ability to make money regardless of conditions. Airlines were higher and commodities were mixed with the oil hitting a new recovery high at $34.81, while the gold got slammed -$30. And the Bonds were down 1¼.
FOOD SUPPLY:wasHIGHERwith TSN +2.68, BGS +.55, FLO -.12, CAG +.61, MDLZ +.10, KHC +.42, CALM +.43, JJSF +4.79, SAFM +3.57, LANC +5.51, GO -.54 and PBJ $30.75 +.15 (.49%).
BIOPHARMAwasLOWERwith BIIB -7.53, ABBV -1.17, REGN -31.90, ISRG -1.71, GILD -.29, MYL +.41 TEVA + .44, VRTX -14.96, BHC +.39, INCY -.59, ICPT -3.16, LABU -3.70 and IBB $131.02 -2.32 (1.74%).
CANNABIS:This group wasHIGHERwith TLRY +.58, CGC +.67, CRON -.05, GWPH +4.23, ACB -.39, PYX +.13, NBEV -.06, CURLF +.14, KERN +1.20 and MJ $14.38 +.35 (2.49%).
DEFENSE:wasHIGHERwithLMT +6.38, GD +2.01, TXT +.14, NOC +5.70, BWXT +.15, TDY +6.22, RTX +2.30, and ITA $153.34 +3.27 (2.18%).
RETAILwasHIGHERwith M + .96, JWN +1.10, KSS +1.98, DDS +3.00, WMT -.29, TGT -2.34, TJX +1.89, RL +8.66 (11.89%), UAA +.56 (6.71%), LULU +5.27, TPR +.70, CPRI +2.07 (14.28%) and XRT $40.36 +1.18 (3.01%).
FAANG and Big Cap:were LOWERafter being much higher with GOOGL +10.02, AMZN -16.67, AAPL -1.99, FB -2.51, NFLX -15.32, NVDA -11.82, TSLA +2.82,
BABA +2.26, BIDU +4.96, CMG -35.88, CAT +5.53, BA +7.24, DIS +3.32, and XLK $97.00 +.51 (.53%).
FINANCIALS wereHIGHERwith the creep up in interest rates with GS +16.37, JPM +6.53, BAC +1.63, MS +3.68, C +4.20, PNC +5.19, AIG +2.26, AXP +5.07, V +2.68, and XLF $23.14 +1.22 (5.57%).
OIL, $34.35 +1.10.Oil was higher today with the close mid-range. 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. On the rally we bought the US0 6/5 25 puts @ $ .91 and closed them out at $1.29 for a 40%+ gain. The stocks on my list were mostly lower with XLE $39.65 +1.12 (2.91%).%).
METALS,GOLD: $1,705.60 -29.90.After trying to break to new highs Gold failed to follow-thru and opened slightly lower and fell all the way back to trade $1,700. There is good support from here to $1,685 and I’d expect a renewed move higher.
BITCOIN: closed $8785 -390.After breaking down from just over 10,000 and trading 8,220 we started back up and traded all the way back, it failed to make a new recovery high. We broke all the way back to trade 8815 today but managed a move to close just over $9000. We added 350 shares of GBTC last Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $10.18 -.48 today.
Tomorrow is another day.
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