Today’s action was the first of the week that we didn’t rally to close at or near the highs. We did open down and we tried, but by the late afternoon it was clear that there just wasn’t enough buying to bring it back. Market internals were negative with NYSE volume running 3:4 and A/D 5:9 and NASDAQ was 4:5 and 3:2 negative. In late news it turns out that the firm that does the audit on the P&G’s votes has declared that Nelson Peltz in fact won a board seat by 43,000 votes, and the stock rallied from $88.23 to as high as $91.90 +3.67. The biggest losers were AAPL, CAT, HD, UNH, and MMM. We also had a couple of names in the news were ACOR announced the end of a trial on a new drug due to a death and fell to $17 -11.20 (39.7%) while LEDS which had news of a smaller than expected loss and closed $6.39 +3.59 (128%) after hitting $10.49 and being halted for volatility.
Other names in the news, (earnings), more of the important retail names with TGT coming in with a beat, but very soft Q4 guidance and it sold off to $54.34 -5.75 (9.5%), LB $47.50-1.77(3.6%) and after the close RH reported a beat and is 96.71 +8.02 (9%). On the tech side we had a beat of CSCO and the stock went from $34.11 to $35.93 +1.82 (5%), NTAP closed $45.82 and is now 49.80 +3.98 or 8.9%. YY beat both top and bottom lines with great guidance closed $111.39 +22.16 (24.8%). JASO went the other way -$1.07 (13%).
Oil, $55.31 -.39, and holding that level tonight, as noted last night it was unable to break to the upside and move higher. I was using support levels of $55-54 and we tested $55 and failed to break. If we do break $54.81, $54 is the next support. The stocks were mostly lower again today with CVX -.34, APC -.43, COP -.74, BP -.60, PSX -.26, MCP -.95, MRO -.06, RIG -.24, OAS -.12, OXY -.65, XOM -1.04, HES -1.24, and XLE -.77.
RETAIL, as mentioned above this has been a big week for the sector. WMT reports tomorrow and the options predict a move of roughly 3.5% in either direction. With the rally in the XRT and some of the big names moving higher this has been a very unforgiving market for the losers. WMT was one of the few lower today in a sector that was mostly higher, the other loser was TGT was the other –9.5%. The rest of the group were higher and even “terminal” SHLD gained .36 for a move of 9.45%. The rest were M +.32, JWN +.30, KSS +.07, DDS + .28, KORS +.60, JCP +.09, WMT -1.49, GPS +.32, LB -2.15, TJX +1.08, and XRT +.08.
FAANG, were lower today with GOOGL – 3.74, AMZN -8.87, FB +.58, AAPL -1.99, NFLX -3.11, TSLA +3.00, NVDA -3.51, and we will add BA +1.04, IBM -1.59, BABA – .10 since they will start trading futures on FAANG + these as well as BIDU -.71..
FINANCIALS, were mixed with GS +.71, JPM +1.18, BAC +.58, C +.31, PNC +.90 and the XLF +.07.
METALS, GOLD continues to hold above $1,275 but it was turned back at $1,290 closing $1,277 -$5 and it has created great support from 1265 -1270 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 was turned back at $17.20 but held over 16.90 and was -.09 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 also tested $3.05, the point of breakout from Oct 10. The Chinese have bought massive physical copper in recent years and they continue to use it as an asset for lending.
Tomorrow is another day...CAM
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