Market Strategies Newsletter - Special Daily Edition
For Trading MAY 28TH
FAANG Slips Again, Russell Surges
ALL 11 S&P Sectors Higher
Today’s market was up after continued strength in the futures and markets around the world and although the DJIA ran well ahead for the first half of the day but by the close the only laggard was the NASDAQ. The DJIA finished +553.16 (2.21%), NASDA +72.14 (.77%), S&P 500 +43.36 (1.48%), the Russell +43.28 (3.11%) and the DJ Transports were +255 (2.86%). The DJIA was 25 up and only 5 down with the biggest winners being GS +92, UNH +60, AXP +48, MMM +41, JPM +38, CAT, BA, and HD all +43 DP’s. Market internals were a bit soft with volume roughly 30% lower than normal and A/D 3:1 on NYSE and NASDAQ >2:1 gainers.
The strong sectors were financial, industrials and home builders while the weaker were Information tech (FAANG), communication services, consumer discretionary, and energy. On the news front we had those two do-nothing groups of legislators actually BOTH pass a bill for sanctions against China for violations of human rights. Unfortunately, that leaves the Orange Emperor still in charge of getting the message across to his very best friend and extreme admirer who has continued to promise to execute on Phase 1 of that perfectly marvelous and magnificent Trade seal, the quality and scope of which has never been seen in the history of the world, that the BS he’s pulling in Hong Kong, withs eyes on Taiwan will not be tolerated. Yeah, right!!!
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/R0VWMEB_rvU
SECTORS:The news was catch-up yesterday and a solid follow-thru today. I find it increasingly difficult to separate the market from the economy, and that has been to my detriment. The two trades we have on right now should, by all rights work out in our favor. I started the position small and I averaged down in both today. The XRT trade in particular seems to me to have the best potential, although there are some earnings this week, AND I HATE TO PLAY EARNINGS, we are so overbought and extended that I set aside that particular worry. We also took some profits in NEM, and re-entered today about $6 lower.
FOOD SUPPLY:wasHIGHERwith TSN ++1.10, BGS +1.15, FLO +.09, CAG +.77, MDLZ +.71, KNC +.91, CALM +.73, JJSF +8.45, SAFM +1.56, LANC +7.59, GO -.13, HRL +1.19, and PBJ $31.62 +.87 (2.83%).
BIOPHARMAwasMIXEDwith BIIB +5.59, ABBV-.71, REGN -2.21, ISRG +3.64, GILD +1.42, MYL +.86, TEVA +.57, VRTZ +12.01, BHC +.40, INCY -.46, ICPT -.97, LABU -.10, and IBB $131.80 +.99 (.76%).
CANNABIS:This group wasLOWERwith TLRY -.26, CGC -.13, CRON +.06, GWPH -5.15, ACB -.31, PYX +.39, NBEV -.06, CURLF -.08, KERN +.27, and MJ $14.25 -.03 (.21%).
DEFENSE:wasHIGHERwithLMT +=25.98, GD +6.73, TXT +1.43, NOC +16.81, BWXT +2.99, TDY +9.71, RTX +3.13, and ITA $167.19 +7.94 (4.99%).
RETAILwasHIGHERwith M +1.73, JWN +3.11, KSS +3.28, DDS +3.05, WMT -1.27, TGT +1.98, TJX +.20, RL -1.16, UAA +.83, LULU +.09, TPR +.65, CPRI +1.60, and XRT $41.64 +1.38 (3.43%).
FAANG and Big Cap:were LOWERafter being higher earlier with GOOGL -1.09, AMZN -18.36, AAPL +1.07, FB -5.05, NFLX+5.23, NVDA -8.51, TSLA -4.47, BABA -.72, BIDU -.14, CMG -24.00, CAT +5.54, BA +12.01, DIS +1.47, and XLK $96.94 +.55 (.57%).
FINANCIALS wereHIGHERwith GS +14.44, JPM +6.32, BAC +1.72, MS +3.39, C +4.53, PNC +7.63, AIG +.52, TRV +3.97, V +.28, and XLF $24.06 +1.00 (4.34%).
OIL, $32.81 -1.54.Oil was unable to make a new high today and after that failure it fell all the way back 31.75 before closing 2/3s down on the range. If we break 30.72 on a closing basis, I think we can work lower. The stocks generally lower and XLE was $40.06 +.51 (1.29%).
METALS,GOLD: $1,710.70 +5.10.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 yesterday, and this morning got only worse hitting $1,684 before turning back up and closing up on the day. We bought back 2 lots of NEM roughly $6.00 lower that our sale yesterday.
BITCOIN: closed $9,170 +385.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 $10.50 +.32 today.
Tomorrow is another day.
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