MU and XLNX beat

For Trading JUNE 30TH

Pending Home Sales +44.3% in May

BA Adds 168 Points to the DJIA

MU & XLNX Beat, SPG Reaffirms Div.

Today’s market got off to a good start based on the futures, and within the first few minutes started a selloff to the low of the day (+70) and then turned on a dime and started higher again and by 10:00 were had hit +450. We moved sideways to higher until the last 15 minutes we had rallied to a new high and closed +580.25 (2.32%), NASDAQ +116.93 (1.2%), S&P 500 +44.19 (1.47%), the Russell +42.43 (3.08%) and the Transports +246.90 (2.8%). Market internals were good with the NYSE A/D 3:1 and NAZ 2:1, while NYSE A/D volume was better than 5:1. Overall volume was about unchanged from Friday. The DJIA was 29:1 with the biggest mover BA +168 DP’s and the others a far distant AAPL +56, HD +35 and GS 20 DP’s). The Pending Home sales this morning added to the market as soon as it was released. Homebuilders were up anywhere from 3%, (LEN & DHI) to 8.8% (BZH & TOL), and the ETF, XHB finished $43.45 +1.67 (4%).

We added some CVS 7/67.50 calls on the decline with an average price of $1.16 and they finished $ .66, and the NEM 7/17 $60’s @ 1.55 and added to last Friday @ $1.30 for an average of $1.47 triggered a 100% Up Rule sale at $2.94 this morning. They closed today $2.12.

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 highly 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/AeKKwW1lmKw
SECTORS: The news of COVID-19 surges in cases to new highs has caused the states of both Texas and Florida to halt the progression of their re-openings. In fact, both states have closed bars since it is a place for younger people to gather and the 25 -39 group shows the biggest increases in cases. There are states that have seen increases of up to 300% from where they were when the re-openings began. For a look at how ALL the states are doing use this link: https://rt.live/ There were 2 stars in the market today; the obvious brightest star was Boeing (BA) on the strength of it starting FAA piloted flights of the 737 MAX for re-certification. The flights seem to be okay, but the flights are just the tip of the iceberg since all of the data now has to be analyzed. I’m sure it will be a little while before we hear anything substantive, but it was a start after over 440 days of grounding (March 2019). But buyers wouldn’t be stopped after the recent decline from the recovery high of $234 to close $170.01 Friday. The stock opened $181.65 and traded up to $194.50 before closing on the highs at $194.49 +24.48 (14.4%). The second star was FB, embroiled in the cancellation of ads but some of the world’s biggest and best companies due to racist and hate oriented content. Last Tuesday before the advertisers started pulling ads the stock had made a new all-time high at $245 but started lower the next day. On Friday Unilever and KO had pulled (adding to the list of medium sized firms) and the stock fell to $215. This morning Starbucks adding to the list and the stock fell to $207.11 before the market took off (see above) and by 10:45 it had crossed unchanged and kept moving to close $220.64 +4.56 (2.1%) but $13 from the low. We’ll have to see what it can do when it gets to supply between $224-226. Earning from two chip makers both beat, and both gave solid guidance. MU finished $52.11 +2.96 (6%), while XLNX was $98.47 +6.50 (7%). Simon Property Group (SPG) reaffirmed its earnings quoting the fact that 199 of their 204 properties across 37 states are open and operating. They also declared their dividend and added that they expect to pay $6.00 in cash for 2020. The stock had closed $68.13 +6.23 (10%) but rose further in late trading and was $72.52 + $439 or another 6.4%.
In the financials, after the close several, (BAC, MS, C, and MS) all affirmed current rates while WFC said it will have to cut their payout. The stock fell about $ .25.

FOOD SUPPLY CHAIN was HIGHER with TSN +.97, BGS +.63, FLO +.75, CPB +.85, CAG +1.77, MDLZ +.78, KHC +.81, CALM +.68, JJSF +6.39, SAFM -.64, HRL +.13, SJM +2.07, PPC -.38, KR +1.39, and PBJ $30.87 +.54 (1.81%).

BIOPHARMA was MIXED with BIIB +1.34, ABBV +.16, REGN -.49, ISRG +3.92, GILD +.24, MYL +.12, TEVA -.01, VRTX -.64, BHC -.01, INCY +1.05, ICPT $47.10 -30.39 (39.2%) ON THE FDA HAVING QUESTIONS ABOUT THEIR NASH (LIVER) TREATMENT. IBB was $134.88 -.48 (.36%).

CANNABIS: was MIXED with TLRY -.21, CGC +.55, CRON +.11, GWPH +1.72, ACB -.08, CURLF +.03, KERN +.01 and MJ $13.01 +.19 (1.48%).

DEFENSE: was HIGHER with LMT +11.24, GD +3.29, TXT +1.51, NOC +7.14, BWXT +.91, TDY +5.60, RTX +2.91, and ITA $167.42 +9.04 (5.71%).

RETAIL: was HIGHER with M +.71, JWN +1.21, KSS +2.01, DDS +1.80, WMT +.80, TGT +1.55, TJX +1.47, RL +5.29, UAA +.74, LULU +14.57, TPR +.80, CPRI +1.29, and XRT $42.25 + 1.01 (2.45%).

FAANG and Big Cap: were HIGHER with GOOGL +39.46, AMZN -3.21, AAPL +9.57, FB +4.22, NFLX +4.60, NVDA +6.00, TSLA +46.25, BABA -.11, BIDU -.51, CMG +14.85, CAT +3.61, BA +22.33 (13.2%), DIS +2.90, and XLK $103.19 +1.65 (1.02%).

FINANCIALS were HIGHER with GS +5.81, JPM +1.09, BAC +.28, MS +.56, C +1.26, PNC +2.82, AIG +.97, TRV +1.90, AXP +1.58, V +3.23, and XLF $22.88 +.28 (1.24%).

OIL, $39.70 +1.21. Oil was lower last night trading as low as $37.50 before we rallied well off those levels. I mentioned in last night’s charts with comments section in the Weekly Strategies letter, prices are trying to work higher towards $45.00. The stocks were higher with XLE $37.24 +.74 (2.03%).

GOLD $1781.20 + .90. It was a small pull-back after the strong rally of the end of last week, and after touching $1796 last week we turned back lower and tested $1754 before bursting higher Friday. 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 yesterday and we closed $2.12 today.

BITCOIN: closed $9,200 -20. After trading back to 8985 we rallied back to close – only $5. Since last week we have closed between 9200 – 92.85 every day with narrow ranges. 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 $9.48 - .22 today.

Tomorrow is another day.

CAM