For Trading April 28th

OIL Falters, again

Financials Rally

The Russell Leads the Way

Today’s market got off to an upward start and never looked back. Based on news of re-openings in Italy and France in the works and the restarting of repair work on Notre Dame Cathedral were highlights. Around 11:30 we had a small selloff that lasted until 1:45 and we lost about 100 DPs but we rallied again making a new high of the day at +428 before closing +358.51 (1.51%), NASDAQ +95.64 (1.11%), S&P 500 +41.74 (1.47%) and the Russell, the big winner, +48.82 (3.96%) and DJ Transports +225.02 (2.78%). The DJIA was 24 up, 6 down with the biggest gainers were MMM and GS +45, HD +38, DIS +33, V +31, and JPM +27 DPs. There were no double-digit losers. Market internals were good with both NYSE and Nasdaq 3.5:1 with light volume. All 11 S&P 500 sectors were up with financials the leaders followed by industrials and retail also strong. The “least strong” was consumer staples.

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/LfrHz_ROkVw

SECTORS: As I mentioned above, financials lead the way and this is important since for any rally to be sustainable, financials need to participate. I think we may be playing catch-up with today’s move, and we are pretty overextended at this point. I am also adding a sector for food supply chain companies. It is clear that the food supply has problems and since there is no ETF that I know of that covers it, I have put together a short list of the big names. I have left out supermarkets since they are distribution and not production.

FOOD SUPPLY: was HIGHER with TSN +1.18, BGS +.05, FLO +.46, CAG +.42, MDLZ +.09, KHC +.78, CALM +1.95 (4.68%), JJSF +6.72 (5.71%), SAFM +3.66 and LANC +3.74.

BIOPHARMA: was MIXED with BIIB +5.44, ABBV +.76, REGN -22.21 (3.92%), ISRG +2.17, GILD -.14, MYL +.42, TEVA +.50 (4.89%), VRTX -3.84, BHC +1.19, INCY -.50, ICPT +3.22, LABU +1.85 and IBB $127.53 +1.35 (1.07%).

CANNABIS: This group was HIGHER with TLRY +.31, CGC +2.21 (14.81%), CRON +.28, GWPH +.18, ACB +.035, PYX +.39, NBEV -.01, CURLF +.47 (10.9%), KERN +.76 (9.22%), and MJ $12.38 +.48 (4.03%).

DEFENSE: was HIGHER with LMT -2.27, RTX +1.96, GD +5.70, TXT +1.13, NOC +5.50, BWXT +1.72, TDY +3.90 and ITA $151.08 +2.40 (1.61%).

RETAIL: was HIGHER with the exception of WMT -1.06, M +.54, JWN +2.43, KSS +3.05, DDS +2.23, JCP +.014, TGT +2.18, TJX +1.84, RL +6.52 (9.55%), UAA +.50, LULU +11.92 (5.56%), TPR +1.46, CPRI +1.36 and XRT $36.36 +1.82 (5.27%).

FAANG and Big Cap: were LOWER with GOOGL -5.74, AMZN -32.79, AAPL +.29, FB -2.12, NFLX -3.48, NVDA +9.17, TSLA +57.93 (7.99%), BABA -.46, BIDU -.45, CMG -.22, BA +.90, CAT -.03, DIS +4.86 and XLK $89.19 +.56 (.63%).

FINANCIALS were HIGHER with GS +6.60, JPM +3.82, BAC +1.27, MS +1.41, C +3.46, PNC +4.27, AIG +.91, TRV +2.07, AXP +1.73, V +4.48, and XLF $22.48 +.74 (3.4%).

OIL, $16.50 +2.72. Oil was a BIG STORY another day of liquidation coupled with the news that USO will not deal in the front month contract (June) and will “ladder” maturities of the further out months. This is the 4th time that they have made changes with this ETF. From my way of thinking, this will only make it less in line with the actual market moves. Oil stocks were mixed to higher with CVX +2.89, XOM +.26, OXY +.39, OAS - .07, NBL -.06, MRO -.06, MPC +.84, RIG -.10, APA -.04, BP +.86, HES +.71, and XLE $35.40 +.78 (2.25%). Just a quick note, Diamond Offshore (DO) filed for bankruptcy and was $ .365 -.5734 (61.1%) on the day.

METALS, GOLD: $1,723.80 -11.80. After the recent gains, Gold broke solidly above $1,700 and traded as high as $1788 last Wednesday. We have spent the last 3 days consolidating the gains and hit $1,720 today. I will want to get long the GLD if we can probe the $1710 range, or if it turns higher without making another low right here. We are long NEM.

BITCOIN: closed $7,780 + 185. 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 a continuing move higher. 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 $8.79 +.24 today.

Tomorrow is another day.

CAM