OIL GOES NEGATIVE!
Stocks Pullback
It’s impossible to start this with anything other than the fact that Oil futures for May, expiring tomorrow afternoon actually went into “negative” territory this afternoon, casting a pall over stocks that were recovering after a down opening and a low of -617 in the first 15 minutes. As the market recovered the oil started to sink and by midafternoon, we had cracked the $10.00 level and things picked up speed. By the end of the open-outcry session the oil had fallen to close at a remarkable -37.63/barrel. That’s being paid $37,630 to take away 1000 barrels of oil. The market faltered and fell to a new low for the day and finished -592.05 (2.44%), NASDAQ -89.41 (1.03%), S&P 500 -51.40 (1.79%)the Russell -15.76 (1.28% and the DJ Transports was the big loser -264.08 (3.21%). The DJIA was 26 down, 4 up with the biggest losers BA -69 and UNH -58DP’s. Internals were weak at 3:1 Dow and 1.6:1 NASDAQ. Only healthcare and communication services showed strength and Energy, real estate and utilities were the weakest.
Our “open forum” on Discord, which allows me to interact with subscribers and others to allow direct questions and chart opinions on just about any stock, continues to grow with more participants every day. It is informative and allows me to share insights as the market is open and moving. The link is: https://discord.gg/ATvC7YZ and I will be there and active from before the open and all day. It’s a great place to share ideas and gain some insights, and we’ve grown to almost 1900 members. I also did this video titled “How to survive being an options trader and not blow up your account,” over the long weekend. I think it’s very informative as a guide to stock selection and option choices. The link is https://youtu.be/Y7H9RpWfLlo Enjoy!!
Tonight’s closing comment video (new equipment)
https://www.youtube.com/watch?v=Y_IAo_kmVVY&feature=youtu.be
SECTORS: Airlines were lower for a multitude of reasons, with LUV being downgraded, UAL cutting schedules by 90%, and doing a sale and leaseback on 32 planes to raise more cash. Currently 2/3 of all planes are parked, worldwide. BA had China cancel 29 737MAX’s and there was another cancellation by GE’s leasing services of 69 more planes. Citi had already downgraded BA and the final was 143.61 -10.39 (6.75%). DIS was also a downgrade and finished 102.26 -4.37 (4.1%). After the close IBM reported and managed a surprise gain on earnings, but as usual missed on revenues and after closing 120.41 +.29, fell as low as $115 and finished $116.59 -3.82.
BIOPHARMA: was MIXED with BIIB -3.14, ABBV +1.03, REGN -.80, ISRG -8.00, GILD -2.29, MYL -.11, TEVA +.21, VRTX +4.54, BHC -.01, INCY +1.00, ICPT +1.34, LABU +4.03 (11.39%) and IBB $126.58 +1.94 (1.56%).
CANNABIS: This group was HIGHER with TLRY +.29, CGC +.35, CRON +.11, GWPH +3.75, ACB +.03, PYX -.21, NBEV +.02, CURLF +.06, KERN -.51 (6.49%) and MJ $11.55 +.03 (.26%).
DEFENSE: was LOWER with LMT -15.51, RTX -.51, GD -2.19, TXT -1.07, NOC -14.30 (4.01%), BWXT -.54, TDY -.39, and ITA $152.68 -4.89 (3.1%).
RETAIL: was LOWER with lots of talk about who would and wouldn’t need to file bankruptcy and M -.52, JWN-1.10, KSS -1.28, DDS -1.74, JCP -.02, WMT -1.72, TGT -3.92, TJX -1.33, RL -2.33, UAA-.15, LULU -6.42, TPR-1.02, CPRI +.36 and XRT $33.98 -.39 (1.13%).
FAANG and Big Cap: were MIXED with GOOGL -13.00, AMZN +32.90, AAPL -5.70, FB -.27, NFLX +18.54, NVDA -4.22, TSLA -5.89, BABA +4.60, BIDU +.26, BA -10.01, CAT -1.66, DIS -3.68 and XLK $87.83 -1.43 (1.6%).
FINANCIALS were LOWER with GS -1.49, JPM -3.08, BAC -.71, MS -.55, C -1.36, PNC +1.29, AIG -.70, TRV -1.97, AXP -3.09, V -4.55 and XLF $22.00 -.39 (1.74%).
OIL, $20.43 -4.60. Oil was the BIGGEST STORY of the day (see above) but the new contract for June will now be the forward month. Stocks were not down anywhere near the move in the May Oil, but most were slightly lower. XLE finished $33.21 -.74 (2.18%).
METALS, GOLD: $1,711.20 + 12.40. After the recent gains, Gold broke solidly above $1,700 and traded as high as $1788 last Wednesday. Last night it fell into my buying range of 1680 -1690, hitting $1685.00 before rallying back to over $1700 before our markets were open. I wouldn’t chase it today, but it is a little lower (-4.50) tonight so maybe a buy tomorrow.
BITCOIN: closed $6795 -285. After we traded in the uptrend, I mentioned this weekend that I felt we’d have to test 6750 and today we hit 6465 before turning back up. Last night we tried the upside again trading 7,250 before moving with the market and the other futures to finish in the same area of support as other recent bottoms. While I want to add the 350 I still want to wait and see some stabilization. We still own 400 GBTC with an average of $8.06. GBTC closed $7.30 -.19 today.
Tomorrow is another day.
CAM
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