For Trading JUNE 25TH
COVID-19 Sends Market Lower
Oil and Gold Close Lower
Russell & Transports Lead Decline
Today’s market was a debacle from the start and all day it just continued to get worse. The DJIA finished -710.16 (2.72%), NASDAQ -222.20 (2.19%), S&P 500 -80.96 (2.69%), the Russell, the biggest loser was -49.60 (3.45%) followed closely by the Transports -282 (3%). Market internals on the NYSE was 7:1, while NASDAQ was a tamer 4.5:1. On the DJIA all 30 were down with BA -76, UNH -59, GS -47, V -45, AAPL -44 and MMM-40 DP’s. Volume was slightly lower than yesterday. All S&P sectors were lower with energy, financials, & industrials were the weakest while utilities were the least bad…I really hate to put it that way.
We added some CVS 7/67.50 calls on the decline with an average price of $1.16 and they finished $ .69, 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 $1.99.
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/BiGKoiGKXVw SECTORS: The news of COVID-19 surges in cases to new highs has set the market on its ear. There are now 9 “hot-spots” that include CA, AZ, TX, FL, MI, AR, WI, SC, NC., and NY, NJ, and CT have put travelers from those places on 14 quarantine. Later in the day NV started mandatory masks for everyone in casino/hotels. For a look at how ALL the states are doing use this link: https://rt.live/ Airline, cruise lines, hotels and resorts all took it on the chin on the news. As I mentioned in my video (link just above), there was an article in Barron’s online this evening talking about Southwest Air (LUV) having started a fare war. Not exactly the truth since they have 2 annual “Fare Sales” early in the year for summer travel and summer for holiday travel. But the article also mentioned Allegiant Air (ALGT) $107.89, a budget carrier with an all AIRBUS fleet and well positioned to compete in the coming cutthroat recovery. Their margins were 21% and the expected burn rate of only $2 million a month for Q2 turned cash-flow positive as of May. Definitely one to watch since it’s also very close to support around $100. FOOD SUPPLY CHAIN was MIXED with TSN -2.26, BGS +.43, FLO +.09, CPB +.28, CAG +.08, MDLZ -1.28, KHC -.34, CALM +.13, JJSF -5.41, SAFM -3.75, HRL +.10, SJM -.69, PPC -.49, KR +.65 and PBJ $30.70 -.25 (.83%).
BIOPHARMA was LOWER with BIIB -5.09, ABBV -2.12, REGN -23.72, ISRG -33.56, GILD +.74, MYL -.22, TEVA -.36, VRTX -4.62, BHC -.87, INCY -2.19, ICPT -3.26, LABU -3.77, and IBB $136.25 -2.40 (1.73%).
CANNABIS: was LOWER with TLRY -.34, CGC -.51, CRON -.18, GWPH -3.40, ACB +.31, CURLF -.27, KERN -.10 and MJ $13.17 - .39 (2.88%).
DEFENSE: was LOWER with LMT -11.70, GD -7.75, TXT -1.55, NOC -4.10, BWXT -2.07, TDY -8.14, RTX -2.84 and ITA $160.71 -7.38 (4.39%).
RETAIL was LOWER with M -.46, JWN -1.22, KSS -1.50, DDS -.90, WMT -1.08, TGT -1.85, TJX -1.75, RL -2.81, UAA -.50, LULU -6.46, TPR -.90, CPRI -.83, and XRT $41.58 -1.52 (3.53%).
FAANG and Big Cap: were LOWER with GOOGL -31.98, AMZN -39.41, AAPL -7.58, FB -8.74, NFLX -10.21, NVDA -9.60, TSLA -50.78, BABA -2.75, BIDU -2.33, CMG +4.14, CAT -4.24, BA -12.58, DIS -4.74, and XLK $102.26 -2.37 (2.26%).
FINANCIALS were LOWER with GS -7.65, JPM -3.13, BAC -1.09, MS -1.09, C -2.43, PNC -4.48, AIG -1.75, TRV -3.33, AXP -4.17, V -6.22, and XLF $22.98 -.84 (3.53%).
OIL, $38.01 -2.36. Oil was lower all day and couldn’t manage to hold any rally and fell right thru immediate support. I mentioned in last night’s video that it appears that prices are trying to work higher towards $45.00 but it will have to reverse quickly. The stocks were lower with XLE $37.11 -2.18 (5.55%).
GOLD $1775.10 -6.90 It was a clean breakout and a continuation of the rally today, closing practically on the highs. 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 $1.99 today.
BITCOIN: closed $9,285 -375. After trading back to 9,180 we tried to rally and failed. 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 $10.20 -.74 today.
Tomorrow is another day.
CAM
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