OIL Rebounds!
Stocks Rally
Several Solid Earnings Surprises
As I said in my closing comment (below) there were 3 legs to the stool that supported the market today, oil, earnings, and strong futures. The market in the oil was up a little, down a little, but when the futures rallied off the $10.00 level and moved to as high as $16.18, the turn in the market was right there following it. We finished with the DJIA +456.94 (1.99%), NASDAQ +232.15 (2.81%), S&P 500 +62.75 (2.29%), the Russell +16.43 (1.39%) and the DJ Transports (the only loser -3.78 (.05%). There were only 3 DJIA names lower and only single digits with the gainers MCD +61, AAPL +53, V +40, MSFT +39, and INTC and HD adding 25 DPs. Volume was a little light with A/D 2.5:1 on NYSE and 2.2:1 on NASDAQ. The NASDAQ 100 (QQQ) was the strongest mover with energy number 2. Consumer staples and financials were weak.
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/YOGWiIDX-sM
SECTORS: Earnings were a feature again with SNAP continuing higher after last night’s numbers and finishing $17.01 +4.57 (37%). TXN finished +5.14 (4.8%), and the biggest winner was CMG +95.57 (12.2%) on an earnings beat and a monster gain in digital business.
Expedia (EXPE) is being courted by 2 private equity firms for a $1 Billion investment. The stock is down from $144 last year to hit $40.76 in March but finished the day $61.42 +4.17 after trading as high as $64.12. I’m sure that these two firms are much smarter than I, but I can’t see the upside for a very long time. When restaurants reopen, capacity will be cut, same for hotels and cruise ships. I have no idea how long planes will be required to fly with smaller loads, but there are just too many “unknowns” to plunk $1 billion down for hospitalities. Just saying.
BIOPHARMA: was HIGHER with the big exception being BIIB. It finished – 31.51 (9.58%) on the news that its Alzheimer’s drug will be delayed. ABBV +1.42, REGN +13.26, ISRG +15.50, GILD +3.07, MYL -.21, TEVA +.05, VRTX +6.57, BHC +.24, INCY +1.51, ICPT -.14, LABU +1.96 and IBB $124.16 +1.74 (1.42%)
CANNABIS: This group was MIXED with TLRY +.09, CGC -.14, CRON -.04, GWPH -1.40, ACB -.003, PYX -.09, NBEV +.03, CURLF +.015, KERN +.25 and MJ $11.50 +.21 (1.86%).
DEFENSE: was HIGHER with LMT +9.43, RTX +.80, GD +3.31, TXT +.46, NOC +8.83, BWXT +.94, TDY +6.37 and ITA $148.20 +.74 (.50%).
RETAIL: was LOWER with the exception of the discounters. M -.35, JWN -.48, KSS -1.00, DDS -2.36 (9.16%), JCP -.008, WMT +2.70, TGT +.09, TJX +.35, RL -.32, UAA +.14, LULU -5.37, TPR -.25, CPRI -.35 and XRT $33.19 +.11 (.33%).
FAANG and Big Cap: were HIGHER with only NFLX down $12.94 (2.98%) on its earnings miss. GOOGL +43.94, AMZN +31.88, AAPL +7.58, FB +11.52 (6.74%), NVDA +15.02, TSLA +43.28 (6.3%), BABA +2.99, BIDU +.01, CMG continuing higher in extended hours +104.37 (13.27%), BA -.48, CAT +1.03, DIS +.76, and XLK $87.30 +3.15 (3.74%).
FINANCIALS were SLIGHTLY HIGHER with GS +2.23, JPM +.37, BAC +.16, MS +.90, C +.67 PNC unchanged, AIG +.04, TRV +.01, AXP +.81, V +6.05, and XLF $21.56 +.27 (1.27%).
OIL, $13.78 +2.21. Oil was the BIGGEST STORY of the day again with the June contract taking over and recovering from what was surely forced liquidation in May. Remember, that this will happen again unless the market improves before May 19th. Oil stocks were higher with APA + .85 (9.92%) and HES +3.01 (8.28%) and XLE $33.50 +1.19 (3.68%).
METALS, GOLD: $1,738.00 +50.5 After the recent gains, Gold broke solidly above $1,700 and traded as high as $1788 last Wednesday. Tuesday night it fell and hit $1,666 before coming back up $20. Today it rallied hard and I still expect much higher prices. We are long NEM.
BITCOIN: closed $7115 + 225. 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. 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 $7.70 +.26 today.
Tomorrow is another day.
CAM
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