Market Strategies Newsletter - Special Daily Edition
For Trading JUNE 3RD
JUST ANOTHER UP DAY
LVMH + TIF ??
U.S. DOLLAR CONTINUES TO WEAKEN
Today’s market was just another walk in the park for the market. The US dollar continues to fall, money keeps flooding in, and we get hammered in the new gold position. Something just doesn’t add up to any degree of common sense. The market had another relatively short-range day, but in the last 30 minutes took off from +100 to rally straight to the highs and closed +267.63 (1.05%) NASDAQ +56.33 (.59%), S&P 500 +25.09 (.82%, the Russell +12.84 (.91%), and the big winner, DJ Trans +188.97 (1.88%) on a weak attempt to catch up to the other averages. Market internals were strong on the NYSE with both A/D and volume 3:1 up while the NASDAQ was less so @ 1.6:1. The DJIA was 27/3 advances with the biggest movers HD +37 and GS +29 DPs. All sectors were higher with energy, materials and industrials leading the way and consumer staples bringing up the rear.
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/ZUBzR10BzEI
SECTORS:The big news today was all about the earnings for Zoom (ZM) which absolutely blew away both earnings $.20 v .09 est. and revenues $328MM v. 203M est. and gave guidance for Q2 at +100% over expectations and FY21 even better. The stock had traded as high as $212.69 and finished $208.08 +3.93 after a +$25 day yesterday and after the numbers and guidance ran up to $223.65 but has since fallen back to $197.56 and is currently $204.60 -3.48. Not really surprising for a stock that was $149 5 days ago. RH, formerly Restoration Hardware, reports numbers after the close on Thursday, but they got a big upgrade from JPM to overweight and a 100% price target rise to $270. The stock bottomed in March @ $74.13 and has since moved almost straight up and closed the day $248.26 +35.69 (16.79%), leaving the possibility of a disappointment no matter what the report.
Last, we have Tiffany, which because of it’s takeover by European luxury giant LVMH, really didn’t feel the pain of the selloff, until today when LVMH said they were having a board meeting to take another look at the deal ($134) due to “deterioration in the brands market.” The stock traded down to $111 before a final trade of $117.03 -11.47 (8.93%).
FOOD SUPPLY:wasMIXEDwith TSN -.11, BGS +.01, FLO -.34, CAG -.25, MDLZ -.56, KHC +1.07, CALM -.03, JJSF -2.37, SAFM +3.34, LANC -.88, GO +.07, HRL -.33 and PBJ $31.83 +.04 (.13%).
BIOPHARMAwasMIXEDwith BIIB +1.41, ABBV +.24, REGN +20.21, ISRG +5.22, GILD -1.89, MYL -.14, TEVA -.12, VRTX -2.37, BHC -.01, INCY -.85, ICPT +1.86, LABU +1.98 and IBB $134.45 +.34 (.25%).
CANNABIS:This group wasLOWERwith TLRY -.02, CGC -.37, CRON -.16, GWPH +2.49, ACB .39, PYX -.02, NBEV +.06, CURLF -.11, KERN -.38, and MJ $13.85 -.02 (.14%).
DEFENSE:wasMIXEDwithLMT + 1.54, GD +2.08, TXT +.35, NOC -2.88, BWXT +.08, TDY -5.24, RTX -.37, and ITA $166.64 +.37 (.22%).
RETAILwasHIGHERwith M +.63, JWN +1.14, KSS +.40, DDS +2.39, WMT -.16, TGT -.60, TJX +1.18, RL +1.68, UAA +.17, LULU +3.81, TPR +.31, CPRI +.75, and XRT $42.08 +.96 (2.34%).
FAANG and Big Cap:were HIGHERwith GOOGL +.14, AMZN +1.96, AAPL +1.50, FB +.24, NFLX +1.13, NVDA +1.75, TSLA -16.10, BABA +7.63, BIDU +.18, CMG +15.12, CAT +3.35, BA +3.01, DIS -.02 and XLK $98.86 +.92 (.94%).
FINANCIALS wereHIGHERwith GS +5.07, JPM +.68, BAC +.34, MS +.84, C +1.66, PNC +.83, AIG +1.23, TRV +2.45, AXP +2.65, V +2.63 and XLF $23.87 +.19 (.80%).
OIL, $36.81 +1.37.Oil has managed to trade $37.06 today and has run into the 100-day MA and not even blinked. I will be on watch to get back into the USO puts for a move back to $30-31.00. The stocks were all higher and XLE was $40.54 +1.10 (2.79%).
METALS,GOLD: $1,734 -16.30.After trading 1761 overnight the gold traded down to 1728 and closed near the lows. The action in the US$ is projecting higher prices for the metals, but it certainly didn’t happen today. Support is just below 1721. We bought back the 3rd and final lot of NEM today @ $58.86.
BITCOIN: closed $9,580 -70.After breaking down from just over 10,000 and trading as low as 8630 last Tuesday we have been clawing our way back toward 10,000. Last night and this morning we traded over $10500 but fell all the way back to the lows. 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 $11.41 + .16 today.
Tomorrow is another day.
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