For Trading June 2nd

A YAWN OF A DAY

ISM Below 50 for 3rd Month

U.S. DOLLAR WEAKENS

Today’s market was lower at the open but quickly came back to the upside, but spent all day in a fairly narrow range, finishing the session +91.91 (.36%), NASDAQ +62.18 (.66%), SP 500 +11.42 (.38%), the Russell +11.34 (.81%) and the DJ Transports -3.88. The day couldn’t have been more boring if it had been closed. Volume was light and the A/D on NYSE was 3:1 while NASDAQ was only 3:2, and 18 of the 30 DJIA stocks were positive with the biggest mover, BA adding 37 DPs to the average. Financials, Energy, real estate and utilities were the strongest while information tech and healthcare were the weaker groups. Commodities were relatively unchanged while the US$ was weak again having broken below 99 just 3 days ago broke below 98 and closed 97.82 -.52 while all the world’s currencies moved higher.

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/MkHi1Je6hdA

SECTORS: Pharma had a mixed day news wise with more disappointment in GILD with their finding that Remdesivir is not the panacea that was originally thought. It seems to have limited use for a limited number of patients. While the stock was heartily rewarded when it was first discussed, hitting $86, it closed the day $75.16 -2.67 (3.43%). Also a disappointment were the results from PFE on their breast cancer drug, Ibrance, announced after the close on Friday, and after several price targets were lowered, it finished the day $35.46 -2.73 (7.15%).

On Thursday, the HOMERUN OF THE DAY was 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 was as high as $22.00 before closing $19.21 +15.26 (386.33%) but since has had no follow up press and has come back to earth finishing the day $9.20 -3.40 (26.8%). The main reason for the drop was an offering of $9.4million stock offering at $9.00.

FOOD SUPPLY: was MIXED with TSN +1.26, BGS +1.22, FLO -.01, CAG -.07, MDLZ +.13, KHC -.05, CALM -.31, JJSF +2.48, SAFM -4.70, LANC +.65, GO -.49, HRL +.02 and PBJ $31.79 + .10 (.32%).

BIOPHARMA was LOWER with BIIB -5.64, ABBV -1.02, REGN -13.34, ISRG -5.44, GILD -2.67, MYL +.53, TEVA +.56 (4.47%), VRTX -1.32, BHC +.68, INCY -.16, ICPT +1.24, LABU +.74, and IBB $134.00 -.74 (.66%).

CANNABIS: This group was HIGHER with TLRY +.23, CGC -.90, CRON +.07, GWPH +2.07, ACB -.01, PYX unch., NBEV -.01, CURLF -.15, KERN +.43, and MJ $13.87 +.11 (.80%).

DEFENSE: was LOWER with LMT + .52, GD +.57, TXT +.58, NOC -4.53, BWXT -.63, TDY -8.98, RTX -.32 and ITA $166.27 +1.72 (1.05%).

RETAIL was HIGHER with M +.01, JWN +.57, KSS +1.48, DDS -.86, WMT -.29, TGT -2.83, TJX +.57, RL +1.20, UAA +.51, LULU +8.90, TPR +.59, CPRI +1.76 and XRT $41.10 +.30 (.74%).

FAANG and Big Cap: were HIGHER with GOOGL +1.98, AMZN +26.23, AAPL +3.46, FB +6.91, NFLX +5.48, NVDA -3.22, TSLA +61.00, BABA -1.09, BIDU +.60, CMG +41.96, CAT +.37, BA +5.49, DIS +1.20, and XLK 97.95 -.02 (.02%).

FINANCIALS were HIGHER with GS +3.06, JPM +1.02, BAC +.45, MS +.40, C +1.42, PNC +.63, AIG +.69, TRV +2.24, AXP +1.43, V -1.24, and XLF $23.63 +.22 (.94%).

OIL, $35.44 -.05. Oil has managed to trade $35.90 today but has run into the 100-day MA and a top at $36.35 back on 3/11. I will be on watch to get back into the USO puts for a move back to $30-31.00. The stocks were higher and XLE was $39.35 +.59 (1.52%).

METALS, GOLD: $1,750.30 -1.40. After trading 1761 overnight the gold traded down to 1737 and managed to come all the way back to close basically unchanged, The action in the US$ is projecting higher prices for the metals. We bought back 2 lots of NEM roughly $6.00 lower that our sale last week and even when gold was lower today NEM was higher.

BITCOIN: closed $9,443 -7 After breaking down from just over 10,000 and trading as low as 8630 last Tuesday we have been clawing our way back toward 10,000. Today’s close was one of the smallest net changes I’ve seen in quite a while. This continues to look 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 $11.25 +.35 today.

Tomorrow is another day.

CAM