For Trading May 12th

For Trading MAY 12th

NASDAQ Up, DJIA Down

Pharma Higher

Today’s market was another big down open followed by sideways action to higher action all day. The standout was again, the NASDAQ +71.02 (.78%) while the DJIA, down 271 early and actually slightly higher (+40) around 1:45 couldn’t hold on and finished -109.33 (.78%), S&P 500 -.39, the Russell -8.40 (.63%) and DJ Transports the biggest loser -98.32 (1.18%). Market internals, even on the NASDAQ were negative with NYSE 2:1 and the NAZ 9:7. Volume was slightly higher than Friday. There were only 12 stocks higher in the DJIA with AAPL the only big winner +33 DPs and on the down-side we had BA -30, AXP -29, CAT -23, MMM -19 and JPM -17 DPs. Strong groups included Healthcare and Information tech and weaker were Financials, Materials, Energy and Industrials.

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/X1m6xoajW4Y

SECTORS: The starts of today’s market were anything whose name ended with “pharma or therapeutics.” The IBB was the leading group on my screens and there was plenty of news to go around. QDEL got FDA approval for their “antigen” test and the stock, already up from $73 in mid-March traded up and closed the day $208.95 +50.35 (31.75%) and moved an additional $20 to 228.80. Novavax, Inc. (NVAX) was also on fire and up from $17 just 3 trading days ago finished the day $24.50 +5.77 (30.81%) and then reported a slight beat on earnings (a smaller loss) and then disclosed that a non-profit will be bankrolling their clinical trials for their experimental COVID-19 drug and to help start production. This sent the stock to $38.90 with a last of $34.48, another 40% higher. There was a surprise from AutoNation (AN), the biggest auto dealership in the country with 325 locations surprised and noted April sales improvements as the reason. The stock, down from $48.85 in early March had fallen as low as $20.59 in 4 weeks has recovered and finished the day today $39.39 +1.07 (after hitting $41.99) and in late trading moved back to $40.15.

On the downside, UAA posted a bigger than expected loss. It laid blame on the closing of all of Dick’s Sporting Goods (DKS) as the main reason. The stock fell from the high $20’s last fall to $17, and fell to $7.39 in April, had recovered a bit but gave back $ .97 (9.72% to close $9.01 today.

FOOD SUPPLY: was MIXED with TSN +.21, BGS +.60 FLO +.06, CAG -.39, MDLZ -.11, KHC -.23, CALM -1.05, JJSF -6.77, SAFM +.52, LANC +.50 and GO +1.69 (4.6%).

BIOPHARMA: was HIGHER as mentioned above was the best overall group with BIIB +13.98, ABBV +4.50, REGN +10.60, ISRG +1.33, GILD +2.78, MYL -.68, TEVA +.09, VRTX +13.72, BHC +.09, INCY +3.41, ICPT +7.00, LABU +6.44 (14.63%) and IBB $133.90 +5.49 (4.28%).

CANNABIS: This group was MIXED with TLRY -.15, CGC -.43, CRON -.17, GWPH +10.58, ACB (left this one out since it was a 1:12 reverse today), PYX -.12, NBEV -.14, CURLF +.36, KERN +.33, and MJ $11.70 -.11 (.93%).

DEFENSE: was LOWER with LMT -1.95, GD -1.60, TXT -1.30, NOC -.15, BWXT -.22, TDY +1.93, RTX -1.32, and ITA $149.57 -2.19 (1.44%).

RETAIL was LOWER with M -.09, JWN -.90, KSS -.70, DDS -1.36, JCP -.017 (10%), WMT +.76, TGT +4.33, TJX +.49, RL -2.88, UAA -.89 (9%), LULU +6.77, TPR -.96, CPRI -.45, and XRT $37.98 -.05 (.13%).

FAANG and Big Cap: were HIGHER with GOOGL +17.16, AMZN +29.37, AAPL +5.08, FB +.65, NFLX +4.85, NVDA +11.00, TSLA -9.21, BABA +4.77, BIDU -.22, CMG +12.67, CAT -3.56, BA -4.87, DIS -1.59, and XLK $95.41 +.63 (.66%).

FINANCIALS were LOWER with GS -2.52, JPM -2.69, BAC -.99, MS -.48, C -2.35, PNC +1.91, AIG +.05, TRV -2.03, AXP -4.17, V -1.34, and XLF $21.86 -.43 (1.93%).

OIL, $25.08 -1.09. Oil was higher over-night and the rally continued early in the day to a lower high of $26.73 before falling back and closing down on the day. The stocks were lower across the board with the XLE $38.10 -.68 (1.75%).%).

METALS, GOLD: $1,698 -15.90. After the recent gains, Gold broke below $1,700 and traded as low as $1692.00 before a small rally to close $6 off the low. We are long NEM.

BITCOIN: closed $8,795 -1235. After breaking out over $7500 we have moved as high as just over $10,000 before gapping down overnight to trade as low as $8,400 this morning. We added 350 shares of GBTC today @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $10.29 -1.16 today. I released this video at the time of the new purchase:
https://youtu.be/ep0PW9CQhVg

Tomorrow is another day.

CAM