For Trading April 24th

OIL Rebound Continues!

Stock Rally Falls Short

INTC Beats, But Poor Guidance

Today’s market looked a little better than I thought it should with the 3rd day out of 5 trying to move over the 50-day MA and failed. While the DJIA was +39.44 (.17%), the only other gainer was the Russell +12.54 (1.04%) with NASDAQ -.63 (.01%) and S&P 500 -1.51 (.05%). The DJ Transports were + 39.44 (.17%), but also near the lows. Market internals were positive at 1:6:1 on NYSE and 5:3 on NASDAQ. Volume was in line with the past several days. Energy, industrials and communication services were strong and consumer staples, real estate and utilities were the weak sisters. The DJIA was 15 down, 14 up and PG unchanged. The big losers were MCD -31 and WMT – 21DPs with UNH +55 and BA +20 DPs. In the news today we had new initial claims for unemployment jumped 810,000 to 4.42 million and new home sales were down 15.4%, and slightly worse than expected.

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/mAsxHW461e8

SECTORS: Earnings were a feature again with INTC the big name after today’s close and although there was a beat on both top and bottom lines, guidance was a disappointment and the stock, which has rallied off the lows near $44 to close today $59.04 -1.06 fell further to trade $55.26 and is currently $55.95 -3.35 (5.7%). Edwards Lifesciences beat and after a move from the recent lows at $155 had closed the day $221.04 +4.52 (2.09%) it bolted higher to trade $238.00 and is currently $230 +8.96, an additional 4%. Gilead (GILD) was lower after trading $84.00 earlier in the day, and the World Health Org (WHO) mistakenly published a report that the trial in China was ended and the drug, Remdesivir, was a flop. It immediately fell to -6.2 and was halted at 12:46 for volatility. After hitting 74.40 it moved back to close $77.78 -3.53 (4.34%). ZM had a solid day on the news that it had reached 300MM users. Zoom closed at another new high at $169.09 +18.84 (12.54%). Last, Google reported after hours that they were slashing their marketing budget by 50% in the 2nd half of the year. The stock closed $1217.17 +12.76 (1%) but is now $1240 –29.85 (2.46%).

BIOPHARMA: was MIXED with BIIB -5,76, ABBV +.41, REGN +7.44, ISRG +1.09, GILD (see above), MYL +.39, TEVA +.34, VRTX -1.49, BHC -.04, INCY +.93, ICPT -.14, LABU -.44 and IBB 123.00 -.58 (.47%).

CANNABIS: This group was MIXED with TLRY +.02, CGC -.20, CRON +.05, GWPH +.44, ACB -.001, PYX -.14, NBEV -.01, CURLF +.01, KERN +.49, and MJ $11.50 +.06 (.52%).

DEFENSE: was MIXED with LMT -4.40, RTX -.44, GD -3.37, TXT +1.21, NOC -7.26, BWXT +.62, TDY +3.38 and ITA $149.53 +.50 (.34%).

RETAIL: was HIGHER with the exception of the discounters. M +.06, JWN +1.13, KSS +.53, DDS +3.14 (13.96%), JCP +.01, WMT -3.38, TGT -3.09, TJX -.65, RL +1.92, UAA +.19, LULU -1.13, TPR +.36, CPRI +.62 and XRT $33.18 -.12 (.36%).

FAANG and Big Cap: were LOWER with GOOGL -18.40 (see above), AMZN +25.02, AAPL -2.96, FB -.78, NFLX +2.58, NVDA -5.57, TSLA -31.56 (4.31%), BABA -5.26, BIDU -2.54, CMG -20.26, BA +1.21, CAT +1.61, DIS -.48 and XLK $86.10 -1.29 (1.48%).

FINANCIALS were LOWER with GS -2.48, JPM -.36, BAC -.02, MS -.58, C +.04, PNC +.53, AIG +.04, TRV -1.79, AXP -.04, V -1.09, and XLF $21.28 -.24 (1.12%).

OIL, $16.50 +2.72. 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 CVX +1.94, XOM +1.35, OXY +.78, OAS + .56 (197%), NBL +.64, MRO +.33, MPC +.93, RIG +.04, APA +1.23 (13%), BP -.03, HES +2.40 (6.09%) and XLE $34.47 +1.01 (3.02%).

METALS, GOLD: $1,745.40 +7.10 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 again and I still expect much higher prices. We are long NEM.

BITCOIN: closed $7540 +425. After we traded in the uptrend, I mentioned this weekend that I felt we’d have to test 6750 and yesterday we hit 6465 before turning back up. Today’s action was impressive. 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 $8.63 + .93 today.

Tomorrow is another day.

CAM