For Trading May 22nd

BA & TRV Help a Weak DJIA

10 of 11 S&P Sectors Lower

Today’s market was weaker than it looked with 24 of the 30 DJIA stocks lower and 10 of 11 S&P sectors following suit. The indexes were a split with the DJIA -101.78 (.41%), held up by BA and TRV, while NASDAQ was -90.90 (.97%), S&P-500 -23.10 (.78%). The Russell was -.63 and the Transports were -36 (.43%). Market internals were even on the NYSE while NASDAQ was 3:2 lower and volume was lighter. Tomorrow ought to be a somewhat quiet afternoon ahead of the 3-day weekend, but with everyone already at home or in vacation homes, who knows, might even be busier since no one has to beat the traffic.

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/5Kfl5YgxOL4

SECTORS: The news was negative from the start with the “Tweeter-in-chief” ramping up his anti-China, reelection-based rhetoric and followed by some pretty unpleasant numbers on initial filings for unemployment (2,438,000 v. 2.4million expected) and this week’s “continuing claims” of 25,073,000. After that we had “existing” home sales -17.8% to an annual run-rate of 4.3 million units. That was the lowest number since July 2010. Next came the earnings for TJX, not terrible and looking forward to re-opening and the massive amount of unsold inventory coming their way. The stock finished $54.30 +3.45 (6.8%) and up from $42.52 earlier this month. BJs Wholesale (BJ) blew away the numbers and was rewarded with a $6.28 (22%) move up. BestBuy (BBUY) beat but fell 3.56 (4.4%). After the close we had Palo Alto Networks crushed their numbers and the stock, already up from $125.47 in early March closed $229.50 -4.98 (2.12% and traded up to $247.81 and finished the evening session $245.51 +16.01 (7%). Nvidia (NVDA) was the surprise of the afternoon beating both EPS and revenues but after trading +7 and -7 finished $349.50 -2.00.

FOOD SUPPLY: was LOWER with TSN -.70, BGS -.20, FLO -.05, CAG -.45, MDLZ -.47, KHC -.57, CALM +.13, JJSF -3.03, SAFM -1.10, LANC -2.18, GO -.26, and PBJ $30.56 +.39 (1.24%).

BIOPHARMA was LOWER with BIIB -4.64, ABBV +1.81, REGN -15.91, ISRG -6.36, GILD -.44, MYL -.35, TEVA +.06, VRTX +.38, BHC -.03, INCY +.36, ICPT -.35, LABU -.79 and IBB $132.03 -1.88 (1.40%).

CANNABIS: This group was HIGHER with TLRY +2.30 (28.57%), CGC +1.64, CRON +1.01, GWPH +.34, ACB +4.26 (33.41%), PYX +.18, NBEV +.06, CURLF +.19, KERN -.07 and MJ $13.80 +1.10 (8.66%).

DEFENSE: was HIGHER with LMT +6.38, GD +2.01, TXT +.14, NOC +5.70, BWXT +.15, TDY +6.22, RTX +2.30, and ITA $153.34 +3.27 (2.18%).

RETAIL was HIGHER with M +.36, JWN +1.06, KSS +1.30, DDS +1.29, WMT -.08, TGT -.63, TJX +3.74, RL +3.22, UAA +.54, LULU +10.50, TPR +.98, CPRI +1.08, and XRT $39.02 +.78 (2.04%).

FAANG and Big Cap: were LOWER with GOOGL -2.53, AMZN -46.14, AAPL -1.23, FB +3.22, NFLX -10.92, NVDA -9.78, TSLA 9.94, BABA -3.39, BIDU +2.58, CMG -1.04, CAT -1.49, BA +6.80, DIS -1.73 and XLK $96.14 -1.36 (1.39%).

FINANCIALS were LOWER with GS -1.24, JPM -.93, BAC +.11, MS -.61, C -.25, PNC -.98, AIG +.86, TRV +2.88, AXP -.36, V -2.36 and XLF $22.00 -.07 (.32%).

OIL, $33.92 + .43. Oil was higher today with the close mid-range. 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. On today’s rally we bought the USU 6/5 25 puts @ $ .91 and they closed $1.01. The stocks on my list were mostly lower with XLE $38.72 -.63 (1.6%).

METALS, GOLD: $1,721.90 -30.20. After trying to break to new highs Gold failed to follow-thru and opened slightly lower and fell all the way back to trade $1,715. There is good support from here to $1,685 and I’d expect a renewed move higher.

BITCOIN: closed $9,075 - 495. After breaking down from just over 10,000 and trading 8,220 we started back up and traded all the way back, it failed to make a new recovery high. We broke all the way back to trade 8815 today but managed a move to close just over $9000. We added 350 shares of GBTC last Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $1110.58 -.64 today.

Tomorrow is another day.

CAM