Today’s action was another example of pushing the beach ball down, but it just keeps on coming back to the surface. We started down and went to the low at -167 on the DJIA and spent the rest of the day coming back to close -.03%. The rest of the indexes were also lower all by less than .30% except the transports that closed near the lows of the day. Market internals were negative with NYSE volume 2:1 down and A/D 1.5:1and NASDAQ 5:4 and 1:1. The pattern was duplicated by HD on its earnings, which beat but the street was not too enamored until they provided guidance and same-store sales. The same pattern was seen in the 2 stocks we bought between yesterday and today, UTX and GLD.
Other names in the news, (earnings), most of the important retail names HD and DKS came early and HD as mentioned above closed + 2.71(1.6) and DKS which also beat but gave poor guidance and after moving lower finished near the highs -.73 (2.7%). Staying with the retail TJX was also a miss and fell $2.86 (4%), but we have some more tomorrow. AAP beat and gapped up trading well over 102 but finished nearer the lows but still +13.44 (16%), and SORL a Chinese producer of Auto parts and brake systems which has a conference call tomorrow at 8:00AM to discuss their Q3 earnings ripped higher after the close to $8.45 + 2.46 or 41%. This is a beaten down group and today’s rally in AAP leaves it down over 45%. Other news was a bid for BWLD by Roark Foods, owner of Arby’s, Carl’s Jr, and several other easily recognized restaurant brands. BWLD closed $145.3).5 +26.50 (22%)
Oil, $55.34-1.42, and is trading $55.11tonight -.59, and was unable to move above $57.50. The closing high is $57.35 and (as I stated here last night) may be back to test the $55 level before being able to move higher. Today’s low was just under $55 and could easily test $54. The stocks in the group were universally lower with CVX-.53, APC -2.33 (4.6%), COP -1.51, BP -.47, PSX -.47, MPC -.24, MRO-.71, RIG -.58 (5.6%), OAS -.54, OXY -1.42, XOM -.87, HES -1.85 and XLE -1.12.
RETAIL, as mentioned above has more numbers to come this week. With the rally in the XRT and some of the names were higher today with M +.27, JWN +.44, KSS +1.02, DDS -.29, KORS +1.01, SHLD -.38 (9.2%), JCP +.03, WMT +.12, TJX -2.86, TGT +.67 and XRT +.10.
FAANG, were mixed to lower today with GOOGL +.44, AMZN +4.95, FB-.92, AAPL -2.47, NFLX +.37, TSLA -6.70, NVDA +1.08, BA -1.42, IBM -.40, BIDU -2.87, and XLK -.13.
FINANCIALS, were lower again with GS -3.52, JPM - .77, BAC -20, C -.71 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 still waiting to get long the calls.
METALS, GOLD continued to hold above $1,270 and now has crossed above $1,280 and closed at the high of the day @ $1283, and has created great support at 1265. I believe this could take off to 1308-10 and possibly t0 the $1,320. Silver held over 16.80 and was +.08 and again had a higher low and higher high. 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 - .035.
Tomorrow is another day...CAM
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