For Trading June 23rd

For Trading JUNE 23rd

New Highs For NASDAQ

Market Recovers from -210

Gold and Oil Higher

Today’s market was an ugly open -210 followed by a recovery, and a close near the highs of the day. The DJIA was +153.50 (.59%), NASDAQ +110.35 (1.1%), S&P 500 +20.12 (.65%), the Russell +14.89 (1.05, and the laggard, Transports -15.77 (.17%). Market internals were slightly positive at 1.2:1 on NYSE and 1.4:1 on the NAZ. Volume was good and about even in both directions. The futures had sold off pretty dramatically in late trading Friday, mostly for rebalancing and that was the overall influence early in the day today, but clearly it was overcome. The DJIA was split 16 up / 14 lower with the big leaders AAPL +63, MSFT +37, NKE +26 and UNH and HD +18 DP’s.

We added some CVS 7/67.50 calls on the decline with an average price of $1.16 and they finished $ .88, and the NEM 7/17 $60’s @ 1.55 and added to on Friday @ $1.30 for an average of $1.47 triggered a 100% Up Rule sale at $2.94 this morning. They closed the day $2.16.

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/Uz52U2O-eqI

SECTORS: Airlines and cruise lines were lower early and spent the day going back and forth before closing near the lows on the news that AAL is going to have to raise more money (burn rate of $40million a month) to do nothing for the company but try to survive. To me, it is a sign of deep distress to have to raise billions of dollars just to survive when these companies would probably be better off chaptering. I realize that wouldn’t do anything for the equity holders, but they made their profits during the 8-year run that raised prices and fees, increasing profits for the companies who did absolutely nothing to plan for the future. Political correctness and misdeeds in the recent past were a problem for FB, who still continues to seem to have the attitude that they owe the public absolutely no explanation or carry any responsibility in what kind of advertising they accept, lost several more advertisers and the ire (correctly, I think) from the NAACP. The stock was the only FAANG stock to not participate in a rally that saw double-digit gains for most. It closed + .06. Some big winners today were SONO, maker of great speaker systems, who received a big upgrade from Citron (generally a “short” firm) who main man Andrew Left did a report that called for the acquisition by AAPL as a strong possibility. His pricing was $30, but the stock has never been over $23.60, so I’m not sure it needs to go that high. It finished the day $14.06 +2.20 (18%). Invitae Corp. (NVTA) was a star today announcing the purchase of a genetic testing firm, Archer D/X , and the news sent the acquirer higher by $8.34 to $27.05, or 44%. When they make sense, the market rewards them.

FOOD SUPPLY CHAIN was MIXED with TSN -1.48, BGS -.12, FLO -.39, CPB +.76, CAG +1.44, MDLZ -.21, KHC -.31, CALM +.41, JJSF -.42, SAFM -1.66, JJSF -.42, SAFM -1.66, HRL -.17, SJM -.17, PPC +.18, KR -.19 and PBJ $31.19 +.26 (.84%).

BIOPHARMA was HIGHER with BIIB -6.15, ABBV +.80, REGN -15.12, ISRG +1.43, GILD -1.54, MYL +.30, TEVA +.38, VRTX -.07, BHC +.06, INCY +4.59, ICPT +2.87, LABU +5.51, and IBB $138.14 +.29 (.21%).

CANNABIS: was MIXED with TLRY +.14, CGC +.01, CRON +.03, GWPH -3.86, ACB +.46, NBEV -.08, CURLF +.05, KERN -.48, and MJ $13.50 -.01 (.07%).

DEFENSE: was HIGHER with LMT +5.80, GD -3.12, TXT -.01, NOC +2.90, BWXT +.36, TDY +4.68, RTX +.68 and ITA $169.73 +1.12 (.96%).

RETAIL was HIGHER with M +.25, JWN +.31, KSS -.18, DDS +.21, WMT +2.55, TGT +2.19, TJX +.36, RL +1.95, UAA +.12, LULU +8.61, TPR +.50, CPRI +.15, and XRT $43.05 +.94 (2.24%).

FAANG and Big Cap: were HIGHER with GOOGL +27.56, AMZN +48.49, AAPL +12.48, FB +.06, NFLX +15.05, NVDA +11.79, TSLA -1.90, BABA +1.71, BIDU +.17, CMG +61.44, CAT -.76, BA +.73, DIS +2.47, and XLK $104.57 +2.61 (2.56%).

FINANCIALS were MIXED with GS +3.27, JPM -.51, BAC -.51, MS +.76, C -.54, PNC +2.05, AIG +.20, TRV +1.00, AXP -.79, V +3.70, and XLF $23.71 -.12 (.59%).

OIL, $40.73 + .90. Oil was under pressure early in the day but managed to rally and close near the highs. I mentioned in tonight’s video that it appears that prices are trying to work higher towards $45.00. The stocks were higher with XLE $39.60 +.53 (1.36%).

GOLD $1766.40 +13.40. It was a clean breakout today after a rally last night, a fall to unchanged in the morning and then a hard run all the way up to $1,779 before a close in the upper part of the range. We bought back the 3rd and final lot of NEM @ $58.86. And, we also added a half position in NEM 7/17 60 calls @ $1.55, and additional 50% @ $1.30 on Friday. We sold half on the 100% Up Rule @ $2.94 this morning.

BITCOIN: closed $9,585 +270. After trading back to 9,300 we rallied to new slightly higher ground. A break over 10,000 still sends us higher. 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 $10.58 + .27 today.

Tomorrow is another day.

CAM