DJIA,NASDAQ,S&P500, GOOGL,AMZN,FB,AAPL,NVDA,BA,BABA,BIDU,IBM,GOLD,BITCOIN,SILVER,COPPER,OIL,CVX,APC,OXY,XOM,RIG,OAS,COP,BP,HESS,XLE,XLF,GS,JPM,BAC,C,PNC,LVS,FFIV,WHR, CELG,REGN,VRTX,VRX,ICPT,INCY,IBB,CLVS,ISRG,PBIY,M,JWN,SHLD,JCP,TGT,TJX,RL,UAA,NKE.DKS,SIG,XRT,NFLX,OSTK,RIOT,MARA,LBCC,KODK.
Market Strategies Newsletter - Special Daily Edition
Airlines and Tech Lose Steam
FOR TRADING JANUARY 25th
Today’s action was a split affair with the DJIA higher but the rest of the market having problems staying higher. The biggest losers were the Transports, specifically the airlines, who are making plans to increase capacity. This has been (aside from charging all those annoying fees) the way the airlines have slimmed down and been profitable, so the risk of overcapacity and fare wars looms large. Oh, and by the way, oil up here at $66/barrel could easily be a headwind. Transports were -159.61(1.4%) while the DJIA was +41.31, NASDAQ -45.23 (.61%), S&P500 -1.59 (.06%) and the Russell -11.09 (.69%). The internals told the story with NYSE volume just 4:3 positive while A/D was 4:3 negative. NASDAQ was negative with volume almost 2:1 down and A/D 2:1 negative. We took some profits with 100% Up Rule triggers in GLD and XLF and took a small loss on some SPY puts.
Other names in the news,earnings for LVS were a beat with a heavy influence from Macau and the stock was lower on the day but rallied to +2.36 (3%), FFIV also beat and traded +8.00 (5.6%) and LCRX another beat, and traded +6.40 (2.8%). WHR got a lift on news of tariffs on its competitors and was 178.97+7 (4%) but was light on revenues and is currently 174 -5.65. The semiconductor stocks were down as a group and SMH was (ETF) was -2.20 or 2%.
BIO/PHARMA,was mixed to lower with CELG -1.60, BIIB -.17, AMGN -.40, REGN +2.69, VRTX +1.10, VRX -2.37 (10%), ICPT -1.65, CLVS -3.29 (5.1%) but still +10% on the week, PBIY -26 (28.4%) on yesterday’s news of an issue with its breast cancer drug. The IBB fell .91 (.8%).
RETAIL, were mixed to lower with M -.11, JWN -1.38, KSS -1.13, DDS -1.20, KORS +.31, SHLD -.27 (7.9%)and still terminal in my opinion, JCP -.14 (3.5%), WMT -.11, TJX -.07, TGT -1.23, DKS -1.10, RL +1.89, SIG -1.36, and XRT -.34 (.7%).
FAANG,stocks took a break and after making new highs closed slightly lower. In normal times these moves would be considered “key” reversals, but after getting burned on this setup several times over the last year or so, I’m not getting sucked in. It seems like it’s just one day inhale, one day exhale. The stocks were lower with the exceptions of NFLX +11.01 (4.4%) and BABA+3.37. GOOGL -4.88, AMZN -3.04, FB- 2.21, AAPL -2.88, TSLA -5.24, NVDA -2.41, BA -.5, BIDU +.46, IBM -.99 and XLK -.53.
FINANCIALS,were higher with GS +5.81, JPM +1.46, BAC +.23, C +.98, PNC +1.97 and XLF +.20.
Bitcoin,was slightly higher (+220) and is +185 tonight. There were several heads of major banks asked at Davos about their position on Bitcoin, and they were pretty much aligned with the “It’s an interesting speculation but it’s not a currency or a store of value.” The stocks were mostly lower and as pointed out here, there really isn’t much to see to access actual value. RIOT -.45, MARA +.01, GBTC (the fund that contains 1/10 of a Bitcoin) was +17.40 sells for a premium of just 49%. OSTK -1.85, LFIN -1.26, TEUM -.01, FTFT +.02, LBCC +.03, KODK -.70, XNET -.09 and IZEA -.16.
OIL, $65.61 +1.17continues to grind higher and traded as high as $66.05 and is trading $66.17 +.56 tonight. The stocks were mostly higher but some showed a bit of weakness, with PSX -2.21 (2%), MPC -1.53 (2.2%) and RIG -.22 (1.8%). On the upside, CVX +.37, APC +.49, COP +.13, BP +.76, MRO +.06, OAS +.09, OXY +.14, XOM +.21 and XLE -.21.
METALS,Gold was sharply higher today trying the $1,360 area and closing $1,356.3 +19.60. These challenge the high in July 2016, as well as February 2014. If the US$ continues lower we should see new highs near $1,400. Silver was stronger with a move to $17.49 + .576, or 3.4% vs. the 1.4% in the gold, quite a catch-up trade. Copper, which I have been discussing in this spot and yesterday called for a test of $3.10-3.12, had a solid bounce off that support and closed $3.2285 +.1165. I am still looking for a spot to buy the JJC.
Tomorrow is another day.
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