Today’s action was down from the start on Asian, followed by European, and our futures with fairly major declines. I had to think about the word major since even at its worst the DJIA was barely 1% at the absolute lows. The closes were Dow -101.42 (.43%), S&P -9.76 (.38%), NASDAQ -39.07 (.58%) and the Russell -6.72 (.45%). The only index to not rally but just got worse was the Transports -112. We took a nice gain on the BABA positions and when we were near the lows we rebought the calls (11/187.50s) and are up 50% on the new trade. The strength in these names is beyond my expectations but when you make as much on the trade as we did and the stock starts coming back we follow along, just in a smaller (1/2 size ) position. BABA was near the low of $101.08 when we got onboard and climbed back to close almost unchanged @ $185.13, and in late trading is $185.87. The internals weren’t too bad with NYSE 1:1 volume and 9:5 in favor of the losers while NASDAQ was 1.5:1 and 4:3 lower. All in all not a bad day.
Other names in the news, (earnings), were all over the place with an early start for M, a bear that took the stock +1.85 (10.5%), and KSS a bit of a disappointment, but after moving lower to under $38 rallied to close near the highs at $41.25 +.46. Latter we got JCP +.26 (10.5%) followed by JWN +1.11 and also on the upper end of its range. Some less fortunate were TTD which beat top and bottom and had “inline” guidance and fell from $65 to yesterday to a low of $50 and closed @ $52.97 for a 2day loss of over 18%. Disney missed top and bottom and fell from 102.68 to 97.78 before the conference call started and it rallied back from 5% lower to 1% higher. NVDA reported and went from the NY close of 205.32 -3.84 to an extended hour close of $211.90+ 6.
The resilience of these stocks is remarkable, and the buy the dip mentality is clearly in charge. Even if people think that we “might” be near a top or at least a pull back, they still come in and buy them.
Oil, $57.17 + .36, and holding that range tonight @$57.03 -.14, but is still unable to move above $57.50. The stocks are holding pretty well and were mixed with CVX+58, APC + 24, COP -.07, BP +.27, PSX-.13, MPC – 1.48, MRO -.05, RIG + 03, OAS +.04, OXY +.53, XOM +.61, HES +.48, and XLE + .21.
RETAIL, as mentioned above was almost all higher, except for “terminal” SHLD -.10, m +1.85, JWN +1.11, KSS +.46, DDS +8.58 (16%), KORS +.58, WMT +.06, GPS +.68, ANF +.46, LB +.87, TJX +1.27, TGT +1.63, TPR +.08, LULU +2.66 (4.3%), DKS +1.25 and XRT +.64.
FAANG, were lower today with GOOGL – 10.47, AMZN -3.20, FB -.26, AAPL -24 NFLX -2.54, TSLA – 2.29, NVDA +2.74, and we will add BA -1.19, IBM + .63, BABA +0.74 since they will start trading futures on FAANG + these as well as BIDU –1.12.
FINANCIALS, were lower with GS-.72, JPM +.05, BAC -30, C +.16 and the XLF -.09. The decline in BAC has been excessive to my way of thinking (10+ %) and I feel it’s worth a serious look over the weekend.
METALS, GOLD held above $1,275 and now has crossed well above the $1,280 and closed +4, and is -1.3 tonight and has created great support from 1275 and has made 3 lower highs in the past 6 weeks. I believe this could take off to 1308-10 and possibly t0 the $1,320. Silver held over 16.90 and a break over 17.28 tests 17.40- 60. Copper is still testing.05-06 and has built a well-defined “FLAG” but it doesn’t really break out until 3.18.
Tomorrow is another day...CAM
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