Today’s action was not as bad as anyone would have thought with the futures lower across the board and GE announced the cut of the dividend in half. We gapped down in the Dow, S&P500, NASDAQ, Russell and even the transports turned almost immediately. At the close, all but the Russell were up on the day. The internals were a mixed picture with NYSE volume and A/D 4:4 down while NASDAQ was 5:4 up and even on the A/D.
Other names in the news, (earnings), most of the important retail names start to come tomorrow with HD and DKS, with more names like BBY, TGT, and WMT filling out the week. HD is all about the effects of the hurricanes while DKS investors are on edge after a bad last Q it and fell from $35 to $27 and the issue became how much more “competitive “ they could be on brands like UA and NKE. So the issue for tomorrow is how “promotional” they were and what margins they could maintain.
Oil, $56.76 + .02, and holding that level tonight -.08, and it is still unable to move above $57.50. The closing high is $57.35 and we may be back to test the $55 level before being able to move higher. The stocks are holding pretty well and were mostly lower today with CVX +.04, APC -.88, COP -.42, BP -.50, PSX -.44, MPC +.48, MRO -.22, RIG -.48 (4%), OAS -.29, OXY -.19, XOM -.19, HES -.52 and XLE -.40.
RETAIL, as mentioned above has a big week from tomorrow on. With the rally in the XRT and some of the big names moving higher this looks to me to be set up for a fall. We were mostly lower today with M -.68, JWN -1.31, KSS -1.65, DDS -3.09 (5.4%), terminal SHLD and JCP were both lower with losses of 7.9% and 7.2%, WMT +.38, GPS -.51, ANF -.21, TJX +.38, TGT -.71, NKE -.18, LULU -.27, UAA -.34, DKS -.55, and the XRT -.48 91.1%).
FAANG, were mixed today with GOOGL – 4.46, AMZN +3.67, FB +.19, AAPL -.85, NFLX +3.35, TSLA +12.81, NVDA -2.95, and we will add BA +1.08, IBM -.88, BABA – 1.89 (we got stopped out of our small position on 50% down rule) since they will start trading futures on FAANG + these as well as BIDU +.60.
FINANCIALS, were lower with GS +.12, JPM +.31, BAC -14, C -.28 and the XLF +.04. I mentioned on Thursday nights note that I thought that the decline in BAC has been excessive to my way of thinking (10+ %) and I am waiting to get long the calls.
METALS, GOLD continues to hold above $1,275 and now has crossed well above the $1,280 and closed +4, but Friday it was down $13 was up today to $1278, and has created great support from 1265 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 16.80 and was +.17 and a break over 17.28 tests 17.40- 60. Copper is still testing 3.05-06 and has built a well-defined “FLAG” but it doesn’t really break out until 3.18. Today it was + .045.
Tomorrow is another day...CAM
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