Earnings Galore

For Trading JULY 23rd

EARNINGS GALORE!

MSFT & CMG BEAT, STOCKS LOWER

TSLA is Eligible for S&P-500

Today’s market got off to a mixed start with DJIA & S&P-500 up slightly and the NASDAQ down. It didn’t take long for the DJIA to move higher dragging the S&P with it but it took most of the day to get the NASDAQ to go up and stay there. At the close the DJIA was +165.44 (.62%), S&P-500 +18.72 (.57%) and the NAZ +25.77 (.24%), the Russell +2.63 (.18%) and the DJ Transports -13. Volume was light and the A/D were 1.5:1 up on the NYSE and 6:5 Down on the NASDAQ. Real estate, Utilities and materials were the strongest and energy and financials the weaker. On the DJIA we were 23:7 higher but without much action and the biggest winner was MCD +39, and GS -42DP’s each. Tomorrow MSFT will probably take 50 DP’s off the averages based on the extended hours trading after the earnings report.

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 3000 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/GwDLF8SI16k

SECTORS: Earnings were the feature this week and last night TXN reported and had been up a few, but after the conference call it fell and finished today $132.53 -2.97. SNAP beat top and bottom lines but gave poor guidance for next quarters growth of Daily Active Users (DAU’s) and the stock finished $23.20 -1.54 (6.2%). This afternoon’s numbers were better, but MSFT, which beat, disappointed the market by not “blowing away” the numbers after its recent rise and after a brief move up to just over $212, fell back to $204.51 and the last is $207.30 -4.55. The same was true for CMG, which has doubled since the March lows also beat but after a move to $1193 it too fell back, to 1140 before working its way back to $1167.50 -17.06. Whirlpool (WHR) went the other way with a beat of both earnings and revenues and after finishing the day $146.89 +3.13 ran all the way to 162 before falling back to $152.50 +5.61 for a gain on the day of almost $9.00. And TESLA (TSLA) beat on all metrics and after closing $1592 +24, moved to $1716 before it came back in and finished the day $1657 +$65. The numbers were impressive, especially the cash on hand and the 4th Quarter of earnings, but the most impressive point is that it now qualifies for the S&P 500 index with an 8% weighting.

FOOD SUPPLY CHAIN was LOWER with TSN -.29, BGS -.19, FLO -.29, CPB -50, CAG +.17, MDLZ +.51, KHC +.37, CALM -.07, JJSF +.53, SAFM -4.93, HRL _.,03, SJM +1.03, PPC -.08, KR +.37, and PBJ $33.01+.15 (.44%).

BIOPHARMA was HIGHER with BIIB +1.52, ABBV -1.11, REGN +14.15, ISRG +16.80, GILD +.51, MYL -.30, TEVA +.27, VRTX +7.47, BHC -.20, INCY +5.58, ICPT -.58, LABU +2.73, and IBB $145.78 +1.82 (1.26%).

CANNABIS: was LOWER with TLRY -.10, CGC -.33, CRON -.06, GWPH -2.96, ACB -.42, NBEV -.32, CURLF -.22, KERN -.29, and MJ $13.22 -.18 (1.34%).

DEFENSE: was HIGHER with LMT +17.93, GD +5.10, TXT +.34, NOC +7.31, BWXT +1.19, TDY +4.45, RTX +.69, and ITA $167.22 +2.25 (1.36%).

RETAIL: was LOWER with M -.40, JWN -.49, KSS -.86, DDS -1.43, WMT +.17, TGT +2.70, TJX -.07, RL -.16, UAA -.06, LULU +1.33, TPR -.03, CPRI +.07, and XRT $46.85 +.71 (1.54%).

FAANG and Big Cap: were MIXED with GOOGL +7.88, AMZN -55.19, AAPL +.30, FB -2.60, NFLX -1.30, NVDA +3.86, TSLA +88.64, BABA -6.20, BIDU -2.72, CMG +6.90, CAT +1.13, MSFT -1.74, BA +.58, DIS +.13, and XLK $108.93 +.47 (.43%). PLEASE BE AWARE THAT THESE PRICES ARE LATE MARKET QUOTES AND DO NOT REPRESENT THE 4:00 CLOSES.

FINANCIALS were LOWER with GS -6.05, JPM -.90, BAC -.15, MS -1.38, C -.13, PNC -1.07, AIG -.07, TRV +3.04, AXP +.21, V +2.34, and XLF $24.31 unchanged.

OIL, $40.90 -.02. Oil was lower in last night’s trading before we rallied in the morning. I mentioned in last night’s charts with comments section in the Weekly Strategies letter, that it is a toss-up for a move in either direction. The stocks were MIXED with XLE $37.79 -.47 (1.23%).

GOLD $1,865.10 +21.20. It was a continuation rally and a new recovery high of $1,871. I have only the NEM August 65 / 70 spread on in the Gold market. The spread was put on at $1.30 and finished the day @ $1.83.

BITCOIN: closed $9,425 +30. 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 and today was a good start to move higher. A break over 10,000 still sends us higher. We added 350 shares of GBTC @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $10.10 +.23 today.

Tomorrow is another day.

CAM