DJIA Rallies
POWELL on Sixty Minutes Set-up Rally
Today’s market was strong all night with Jay Powell speaking on Sixty Minutes last night, and it’s well beyond me what they took as so bullish. But clearly, they did. The Bonds losses were the market’s gains as stocks ran up and bonds were down over $2 1/2 right back to the bottom of the 8-week range. If you have anything in your name that sounds like labs, or pharma. Or therapeutics you were on the plus side of todays action. Forget all that stuff about real testing, get 8 people together and give them something and report it as a “trial.” That’s not to denigrate the results from several of the better names, but really folks, if it was so easy to find the right combination of drug, safety, and efficacy, 100,000 people wouldn’t be dead here by June 1. Yet, the DJIA was +1023 at the high and finished +911.95 (3.85%), NASDAQ +220.27 (2.44%), S&P 500 +90.21 (3.15%) and the Russell +76.70 (6.1%). Market internals were 8:1 on NYSE and 4:1 on NASDAQ, and volume was mediocre for a 900-point day. The DJIA was 29:1 with only MRK lower and BA the biggest gainer adding 140 DPs to the average. Pretty interesting since most airline executives say they don’t see things getting back to even 50% of normal for 2 years or more. Oh, yeah, then there’s that pesky issue with their 737 MAX being grounded already 3 times longer than they projected and still no realistic date in sight.
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/TJReOfFcLFU
SECTORS: The news was all about COVID-19 cures and vaccines and tests today. You would think by some of the moves that the cure was here, tested, approved, and distributed. Unfortunately, that’s not the case. The size of the “trials” at some of these newsworthy companies are as small as 8 participants. While it’s great that they are taking place and are showing some promise, the end is out in the distance. Today’s rally bears no reality to what the economy still has in front of it, or what the end result of testing and treatment will make the public more comfortable enough to take any kind of public transportation or spend any time in a restaurant, bar, or movie theater. On the “more good news from UBER,” the stock was higher today closing $33.62 +1.15 (3.5%) and all they had to do was fire another (3700 last week) 3000 workers.
FOOD SUPPLY: was HIGHER with TSN +2.69, BGS -.49, FLO +.71, CAG -.16, MDLZ +1.07, KHC +1.56, CALM -.04, JJSF +5.86, SAFM +7.05, LANC +2.81 and GO +.85.
BIOPHARMA was HIGHER with BIIB -.70, ABBV +.84, REGN -16.44, ISRG +18.00, GILD -1.56, MYL +1.34, TEVA +.59, VRTX -3.69, BHC +1.73, INCY +.34, ICPT +1.39, LABU +4.39 and IBB $133.20 +.95 (.72%).
CANNABIS: This group was HIGHER with TLRY +.35, CGC +.69, CRON +.11, GWPH +3.98, ACB +7.80, PYX +.08, NBEV +.08, CURLF +.64, KERN +.71 and MJ $12.94 +.95 (7.92%).
DEFENSE: was HIGHER with LMT +16.61, GD +8.55, TXT +3.41, NOC +17.15, BWXT +2.74, TDY +15.11, RTX +5.18 and ITA $151.38 +10.68 (7.59%).
RETAIL was HIGHER with M +.12, JWN +.28, KSS +1.50, DDS +.75, JCP -.054 (23), WMT +3.44, TGT +5.34, TJX +3.02, RL +4.55, UAA+.68, LULU +8.61, TPR +1.30, CPRI +1.92, and XRT $38.52 +1.57 (4.25%.
FAANG and Big Cap: were HIGHER with GOOGL +11.44, AMZN +13.26, AAPL +7.99, FB +2.71, NFLX -1.64, NVDA +10.40, TSLA +12.33, BABA +12.67, BIDU +16.52, CMG +29.92, CAT +7.22, BA +16.00, DIS +7.70, and XLK $95.76 +2.29 (2.45%).
FINANCIALS were HIGHER with GS +10.61, JPM +5.14, BAC +1.56, MS +3.06, C +3.83, PNC +7.30, AIG +1.97, TRV +3.91, AXP +6.58, V +7.98 and XLF $22.31 +1.08 (5.13%).
OIL, $31.65 +2.13. Oil was higher today with the close right on the falling 50-day moving average. I thought that the most recent downside break occurred from just under $29.00 and may stop this move too, but as we saw, it went right through that level. All the stocks on my list were higher with XLE $39.19 +3.20 (8.89%).
METALS, GOLD: $1,734.40 -21.90. After breaking the downtrend line around $17.27 we continued higher hitting $1746 before closing strong. Today’s trade up to 1,775 was a failure and we finished down on the day, we sold our long NEM.
BITCOIN: closed $9,745 +350. 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 earlier this week. We continue to recover higher prices and today broke above the $10030 close from which we gapped down on Monday. We added 350 shares of GBTC Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $11.41 + .36 today.
Tomorrow is another day.
CAM
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