Today’s early action took us to new highs in the DJIA, S&P500, and Transports. The Russell and NASDAQ made a gallant effort but both fell short in my opinion, with both moving higher but underperformed. The Russell closed +1.84 (.12%) and the NASDAQ was +49.58 (.73%) but not coming near its loss yesterday. The DJIA was +331 (1.39%), S&P500 +21.51(.82%) and the market internals were solid but not excessive with NYSE volume and A/D were both 1.5:1 while the NASDAQ was1.8 and only 8:7 A/D. The major contributors to the DJIA (in Dow pts) were AAPL +16, CAT +21, MMM +36, HD +17, MCD +11, UNH +42, UTX +23…We had to give up the first half of our UTX call position on the 100% Up Rule.
The Bitcoin story continued as the cryptocurrency tried to rally to just over $10,400 then fell to n$9200 before closing around $9800. The stocks I’ve been watching were slightly higher with RIOT 13.79 +.61 and MARA 4.30 +.25. While they have moved a bit, they are both down 40-75% from the highs. Several of the chips stocks that were “involved” in the mining of Bitcoins have discounted their involvement. NVDA, AMD and SQ have all said it isn’t a meaningful part of their businesses. One more tied to the cyber currencies, OSTK (the discounted merchandise company) has been developing Crypto-currency services and had moved from $14 in August to trade $65.70 earlier this week fell to $47 today.
Other names in the news, there were several earnings reports today with KR the biggest surprise with a major beat and had risen from $20 earlier this month and $23 this week added to those gains and after trading $27.70 and closed $25.86 +1.48 (6%). Another that reported today was AMBA, which for the first time this year had a positive reaction and after closing $54.27 traded as high as $58 was $56.85. LB missed and was lower preopen but managed to not only turn it around, but finished the day $56.79 +4.25.
Oil, $57.40 +.10, after breaking $57 again with an inside day made a higher low by a couple of cents managed an up day. Every test of the $57 mark that rallies higher makes this market look like it wants to move higher. The OPEC meeting today didn’t seem to matter much but we’ll see overnight what the talking heads decide what it means. The stocks were higher again with CVX +1.56, APC +.20, COP +.15, BP +.30, PSX +2.29, MPC +1.23, MRO +.20, RIG +.22, OAS +.58, OXY +.20, XOM +.86, HES +1.07 and XLE +1.02.
RETAIL, continued mixed today as there were a couple of downgrades and in particular GPS, reduced to hold bases on price appreciation. I get that the move from $20 to $32 might be meaningful but let’s remember that this group has been coming down for 2 years and while up 60% this year it is down from $48. The group was mixed to lower with M -.28, JWN -.36, KSS +.20, DDS -3.34 (5.2%), KORS -.20 (but within .26 of a new high for the year), SHLD -.11, after I thought that it might not be terminal at the open at $5.40 +1.15, couldn’t hold any of the rally, JCP -.18 (5%), LB +4.25, WMT -.46, TJX +.45, TGT -1.78, DKS -.01and XRT-.21.
FAANG, were mostly higher with GOOGL -1,21, AMZN +19.33, FB +1.93, AAPL +2.01, NFLX +-.59, TSLA +.48, NVDA +3.88, BA +6.82 (52 Dow pts), IBM +1, BIDU +3.09, BABA -2.41, and XLK +.56.
FINANCIALS, were a feature again today and were responsible for the strength in the Dow. GS +5.76 (44 Dow pts), JPM +.58 (6 Dow pts.) BAC -.05, C +.21, PNC +.83, and XLF +.18.
METALS, GOLD broke to the downside yesterday and the follow-thru took it back to yet another test of $1,270 today and closed $1,273.40 and is slightly higher tonight. Silver, which was sharply lower yesterday tested $16.34 lows from August and managed to hold (SO FAR). $16.00 is the next stop and $15.50 is possible. Copper continues to hold $3.02 as discussed here last night. These are important levels and if they don’t hold we will be looking at another leg lower in the metals.
Tomorrow is another day...CAM
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