For Trading April 22nd

For Trading April 22nd

OIL GOES LOWER, AGAIN!

Stock Pullback Continues

Several Solid Earnings Surprises

It’s impossible to start this with anything other than the fact that Oil futures for May, expired today @ 2:30, and the new month, June continued to fall anyway. This put the current delivery as low as $6.50 then doubling to move back and closing $11.57 -8.86. The oil market seems to be the “tail wagging the dog” these days putting the financials back on their heels. DJIA -631.56 (2.67%), NASDAQ -297.50 (3.48%), S&P 500 -86.60 (3.07%), the Russell -28.26 (2.33%) and the DJ Transports -125 36 (1.57%). Market internals were weak with NYSE A/D 4:1 and NASDAQ 3:1 lower and the volume was a bit light. DJIA was 29 down and TRV unchanged after being lower last night on earnings. Strength was only relative with energy, utilities, and real estate down the least and information technology the weakest. The weakest stocks were AAPL -58 DPs, UNH -54, MSFT -49, GS -45, HD -37, CAT -31 and MRK -30 DPs. All 11 S&P sectors were lower.

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 https://youtu.be/a66NiMbuZkw

SECTORS: Earnings hit the tape after the close with NFLX the first, showing a jump in new subscribers up almost double the expectation. The stock rallied up to $485 but fell back and is currently about unchanged @ $433. Next was TXN with beats both top and bottom lines and after closing 106.84 -4.69 (4.2%) it rallied to $112.23 and is $109 now. SNAP was a surprise with a slight beat on revenues and a small miss (.08) vs (.07) expected, but the average daily users beat by 5 million and the stock jumped from a $12.44 close to trade $15.12 and is $14.86 +2.42 (20%). Chipotle: CMG reported a beat @$3.08 vs. 2.90 expected with a minor revenue miss, but strong growth in digital business. As anecdotal evidence, we are eating it more often, ordering it online and using “contactless delivery. It closed $786.69 -22.04 (2.73%) and after trading $843.37 it is currently $834 + 47.32 (6%).

BIOPHARMA: was LOWER with BIIB – 8.41, ABBV -3.15, REGN -23.53, ISRG -21.70, GILD -2.61, MYL -.73, TEVA -.49, VRTX -10.46, BHC -.99, INCY -2.05, ICPT -1.80, LABU -3.14 and IBB $122.39 -3.86 (3.06%).

CANNABIS: This group was MIXED with TLRY +.06, CGC -.11, CRON -.15, GWPH -32, ACB +.001, PYX -.10, NBEV -.06, CURLF +.05, KERN +.44 and MJ $11.51 -.04 (.35%).

DEFENSE: was LOWER with LMT -6.21, RTX -2.08, GD -2.28, TXT +1.22, NOC -4.68, BWXT -1.42, TDY -11.69, and ITA $148.00 -4.68 (3.07%).

RETAIL: was LOWER with the exception of DDS +1.33 (5.43%). M -.11, JWN -.38, KSS -.53, JCP +.01, WMT -.15, TGT -1.73, TJX -1.69, RL -.58, UAA -.10, LULU -11.86 (5.43%), TPR -.46, CPRI -.70 and XRT $33.08 -.90 (2.65%).

FAANG and Big Cap: were LOWER with GOOGL -25.36, AMZN -46.61, AAPL -7.22, FB -3.04, NFLX -3.28, NVDA -17 (5.92%), TSLA -47.88 (6.41%), BABA -4.43, BIDU -2.98, BA -6.21, CAT -4.11, DIS -1.10 and XLK $84.80 -3.03 (3.45%).

FINANCIALS were LOWER with GS -5.65, JPM -2.15, BAC -.75, MS -1.16, C -2.19, AIG -1.40, TRV -.78, AXP -1.77, V -2.72 and XLF $21.40 -.60 (2.73%).

OIL, $11.57 -8.86. Oil was the BIGGEST STORY of the day again with the May expiring this afternoon, almost $50 over yesterday’s low. June is the new forward month and it followed the May contract down, trading as low as $6.50 but bouncing back and it is trading about $13.50 in tonight’s session. Oil stocks were mostly lower but not even close to the oils fall. XLE was $32.31 -.58 (1.76%).

METALS, GOLD: $1,687.80 -23.40. After the recent gains, Gold broke solidly above $1,700 and traded as high as $1788 last Wednesday. Last night it fell and today it hit $1,666 before coming back up $20. Tonight, it has traded back up to $1,705 and is up $17.00.

BITCOIN: closed $6890 +95. 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. Today was a very short range and quiet day. 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 $7.44 + .14 today.

Tomorrow is another day.

CAM