Morning Rally Fades

For Trading MAY 29TH

Morning Rally Fades

Pending Home Sales -21.8%

Initial Claims Up, GDP -5%

Today’s market was up after continued strength in the futures and markets around the world and after opening rally to up 200 we went sideways to higher until it made a new high of the day by all of $6, it faded until the last half hour when it went into a tailspin straight to the low of the day -190 and closed -147.63 (.58%), NASDAQ -43.37 (.46%), S&P 500 -6.40 (.21, the Russell -35.69 (2.48%) and the DJ Transports -145.96 (.59%). Market internals were weak with the NYSE 4:3 down, while NASDAQ was 2:1 lower. Volume was a little higher than yesterday with the DJIA split 25 / 25 and the only big losers were GS -58 and DIS -33DP’s. There were no outstanding losers. The strongest sectors reversed from the last couple of days with healthcare, utilities and real estate higher and financials, energy, consumer discretionary and communication services lower.

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/4fXVqKDBr5I

SECTORS: Earnings were the feature with HP missing and finishing $15.01 -2.11 (12.3%), Workday: WDAY 182.56 +12.18 (7.15%), Dollar Tree: DLTR $97.64 +10.11 (11.55%), followed this afternoon by CRM with a beat of $ .01 but poor guidance $174.70 -6.40 (3.67%), WSM beat while closed most of the quarter thru online and catalog sales and after closing $73.03 it moved higher to $82 before closing $79.21 +6.18 (8.4%), ULTA missed and after closing $243.11 it fell to 227.89 and made the round-trip to close unchanged.

The HOMERUN OF THE DAY was no contest with ARCA Biopharma: ABIO with a novel approach for COVID-19 treatment. It is testing their “selective inhibitor of tissue factor.” It has already completed phase 1 and 2 and if results continue, they are confident that they will file an NDA in the third quarter. The stock is down from $20.45 in 2019 after a 1:18 reverse closed Wednesday $3.95 and opened today $8.50 and traded as high as $22.00 before closing $19.21 +15.26 (386.33%). An easy winner.

FOOD SUPPLY: was LOWER with TSN -.15, BGS -.54, FLO +.29, CAG +.18, MDLZ +1.23, KHC -.13, CALM -.70, JJSF -7.86, SAFM -6.60, LANC -2.43, GO -1.12, HRL +.98, and PBJ $31.50 -.12 (.40%).

BIOPHARMA was MIXED with BIIB -.98, ABBV +.42, REGN +34.99 (6.43%), ISRG +7.66, GILD +.42, MYL -.16, TEVA -.01, VRTX -1.13, BHC +.06, INCY +2.33, ICPT -1.69, LABU -1.34, and IBB $132.61 +.61 (.46%).

CANNABIS: This group was MIXED with TLRY -.33, CGC +3.05 (15.33%), CRON +.18, GWPH -1.03, ACB +.13, PYX -.20, NBEV -.01, CURLF -.08, KERN +.02, MJ $14.38 +.13 (.91%).

DEFENSE: was HIGHER with LMT +1.34, GD -1.95, TXT -.45, NOC +.24, BWXT +1.46, TDY +8.55, RTX +.38, and ITA $166.51 -.68 (.41%).

RETAIL was LOWER with M -.55, JWN -1.56, KSS -2.24, DDS -1.55, WMT +.82, TGT +.61, TJX -1.24, RL -.88, UAA -.39, LULU +2.10, TPR -1.38, CPRI -1.64 (9.19%), and XRT $40.74 -.90 (2.16%).

FAANG and Big Cap: were LOWER after being higher earlier with GOOGL +2.72, AMZN -10.39, AAPL -.01, FB -2.90, NFLX -4.89, NVDA -2.54, TSLA -13.23, BABA -2.30, BIDU -1.90, CMG +6.00, CAT -2.04, BA -2.44, DIS -5.23, and XLK $96.75 -.19 (.20%).

FINANCIALS were LOWER with GS -8.46, JPM -1.68, BAC -1.09, MS -2.51, C -3.28, PNC +.45, AIG -.05, TRV +.77, AXP -3.23, V +1.18 and XLF $23.68 -.38 (1.58%).

OIL, $33.71 +.90. Oil was unable to make a new high today and after that failure it fell all the way back 31.14 before closing near the high on the range. If we break 30.72 on a closing basis, I think we can work lower. The stocks generally lower and XLE was $38.94 -1.12 (2.80%).

METALS, GOLD: $1,728.30. After holding the gains from Wednesday Gold was strong all morning and then faltered, falling into the prior day’s range and finishing barely changed. We bought back 2 lots of NEM roughly $6.00 lower that our sale yesterday.

BITCOIN: closed $9,420 +280. 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 $10.87 +37 today.

Tomorrow is another day.

CAM