Today’s action was positive from the start and after a move of +121 on the DJIA we settled in for some normal backing and filling. At the close the DJIA was +70.57 (.29%), S&P500 +7.71(.29%), NASDAQ +36.46 (.54%) and the Russell +11.55 (.77%), but the big winner was the Transports at +133.58 (1.31%). Market internals were strong with bot NYSE and NASDAQ volume 2:1 and 2.5:1 respectively and the A/D 9:5 on both.
We bought some BABA 12/180 CALLS @ $1.10 via text.
The Bitcoin story continued as the cryptocurrency crossed $15,000 and continued up to $16,000, 17,000 and 18,000. As mentioned last night, this type of price action is indicative of a parabolic move and will not be able to sustain itself much longer. Last night I talked about Silver and how the rules got changed during the game and made it so that you couldn’t be a buyer, and all I heard all day was how there are no sellers in the Coins. The CBOE and CME are set to start trading futures in the electronic market on Sunday night, and that should give us some degree of transparency, but the problem is really the fact that there are many, many cryptocurrencies and they trade on many different exchanges. During the day today I saw Bitcoin trading $18,000 one place and $16,400 in another. Not for my money, or the subscribers of this service. I never said you couldn’t make money, but my methods quantify risk and this one is off the charts.
Other names in the news, there were several earnings reports again today UAL beating and is +$2.40, and a beat by AOBC (formerly Smith & Wesson) was good but the forward guidance was terrible and it was halted @$14.93 and reopened $13.20, traded down to 12 and is currently $12.91-2.02 or 13%.
Oil, $56.69 +.73, after breaking lower yesterday to $56 on the news of a build in oil and decrease in distillates, we continued to be supported just below $56 and down to $55. Yesterday’s low of $55.87 was pierced to $55.82 but the close near the highs and up on the day are very constructive. The stocks were mixed after 2 days lower with CVX -.20, APC +.21, COP +.16, BP -.27, PSX +.27, MPC +.54, MRO +.30, RIG -.05, OAS +.05, OXY +.13, XOM +.27, HES -.07 and XLE +.20
RETAIL, continued mixed to higher today. As mentioned last night the brands are now leading the charge. LULU continued higher again +4.48, YFC +.69, JILL +.44, RL +2.67, UAA +.39, and NKE +.71 and KORS +.10 and a new high for the year. While it didn’t help DKS -.03, it did help FL +.44, M +.25, KSS +.74, SHLD +.27 (6.5%), TGT +.57, TPR +.65 and XRT +.30.
FAANG, were mostly higher with GOOGL +11.85, AMZN +9.15, FB +4.09, AAPL +.37, NFLX -.25, NVDA +3.24, TSLA – 1.97, BA +5.03, BIDU +1.97, IBM -.33, BABA +2.05, and XLK +.39.
FINANCIALS, were a mixed today GS +2.61, JPM -.28, BAC +.17, C -.37, PNC +.41, and XLF +.14.
METALS, GOLD failed again @ $1260 and dell through the support @ $1,260. We’ll have to see how it acts down here near $1240. Silver, which was lower yesterday and broke the lows at $16.00 and the next stop at $15.50 is possible. Copper also broke pretty dramatically and must now test $2.88-2.90. 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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