Tuesday, August 18, 2020

New SP500 closing high ..

For Trading August 19th

NEW S&P-500 CLOSING HIGH!

HOUSING STARTS +22%

U.S.$$ INDEX FALLS, Again!!

Today’s market WAS A SPLIT PERSONALITY RIGHT FROM THE START, again. While the S&P and NASDAQ worked higher, the DJIA was lower. The main reason, from my point of view was the incredible runup in the major earnings reporting companies. In the forefront were HD and WMT, who both had great numbers, but also had solid gains over the past week, and then again last night and this morning in the pre-open trading. The gains were overdone and the HD, which traded as high as $299 (preopen) could only manage $290.59 in the real world and then continued to fall; and WMT hitting $144.75 (preopen) could only manage $137.63 and then broke yesterday’s low of $133.85 and finished lower on the day. The DJIA finished -66.84 (.24%), NASDAQ +81.12 (.73%), S&P +7.79 (.23%), the Russell -15.70 (.99%), and DJ Transports -87.82 (.80%). Market internals were also negative with NYSE 3:2 Down as were the NASDAQ 5:3 and volume was light. The DJIA was 19 down and 11 up and there were no winners or losers bigger than 25 DP’s.

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 over the weekend on a day-trade, (actually 2) that I made in AAPL on Friday. I think it’s highly informative as a guide to under what conditions these kind of trades in expiring options make sense. The link is https://youtu.be/qIV0G-hP3aM Enjoy!!

Tonight’s closing comment video: https://youtu.be/DROKWNfVcm0 Today’s Video on the Coffee/ JO trade: https://youtu.be/JGFQ8iM8CPc

SECTORS: As mentioned, the two biggest disappointments were HD and WMT, both of which were higher pre-open, and finished lower on the day with HD actually making a lower low than Monday. AMZN made a new high close although the all-time high trade is still $3344.29 on a day that it reversed and finished lower by $240. This looks like a solid consolidation formation and a new breakout to the upside. TSLA was again a big winner with both a new high and a new high close at $1887.09 and a high of $1823.90, even though it too traded higher in the extended hours hitting $1939.00. On the downside we had TEVA, being sued by the US government over an 8 year period of illegal kickbacks and it too finished lower after trading down to $9.80 but rallied back to finish $10.48 -1.11 (9.58%). Sorrento Therapeutics also fell on news that their CFO has been discharged immediately (never a good thing) and SRNE closed $12.28 +.18 (1.49%) and fell as low as $10.28 and finished $10.62 – 1.66.

FOOD SUPPLY CHAIN was HIGHER with TSN -.01, BGS +.22, FLO +.33, CPB +.16, CAG +.13, MDLZ +.82, KHC -.27, CALM -4.65, JJSF +.25, SAFM +.35, HRL +.22, SJM +.42, PPC -.01, KR +.52, and PBJ $34.43 +.10 (.27%).

BIOPHARMA was LOWER with BIIB -.26, ABBV -.13, REGN -2.14, ISRG -1.61, GILD -2.46, MYL -.01, TEVA -1.15 (see above), VRTX -2.53, BHC -.58, INCY +.08, ICPT -2.24, LABU -1.91, and IBB $135.20 -.79 (.58%).

CANNABIS: was LOWER with TLRY -.04, CGC -.06, CRON -.07, GWPH -2.37, ACB -.12, NBEV -.05, CURLF -.59, KERN +.57, and MJ $12.69 -.03 (.24%).

DEFENSE: was LOWER with LMT +1.30, GD -.69, TXT -.59, NOC -2.16, BWXT -.09, TDY -10.29, RTX -.80, and ITA $166.68 -1.88 (1.12%).

RETAIL: was LOWER with M -.65, JWN -1.75, KSS -3.44, DDS -1.20, WMT -1.20, TGT -1.98, TJX -2.05, RL -1.90, UAA -.12, LULU +4.13, TPR -.38, CPRI -1.46 (8.45%), and XRT $53.30 -.41 (.78%).

FAANG and Big Cap: were HIGHER with GOOGL +40.65, AMZN +136.59, AAPL +4.42, FB +1.34, NFLX +10.65, NVDA -2.88, TSLA +59.36, BABA +2.32, BIDU +.28, CMG +24.75, BA -2.96, CAT -.07, DIS -.47, and XLK $115.07 +.43 (.38%). PLEASE BE AWARE THAT THESE PRICES ARE LATE MARKET QUOTES AND DO NOT REPRESENT THE 4:00 CLOSES.

FINANCIALS were LOWER with GS - .87, JPM -1.26, BAC -.39, MS -.24, C -1.00, PNC -3.24, AIG -.30, TRV -.98, AXP -.65, V -.23, and XLF $24.60 -.16 (.65%).

OIL, $43.12 -.05. Oil was higher in last night’s trading before we rallied in the morning on news of production cutbacks from Iraq. The stocks were LOWER with XLE $37.49 -.48 (1.26%).

GOLD $2,13.10 +14.40 was a dramatic sell-off last week taking the gold down as low as $1,874.00 before a rally back to $1,950. I am still a bull on the metal, and we have a September bull call spread on using NEM 65/70 calls with a cost of $1.45, which closed today @ $2.51.

BITCOIN: closed $12,035 -450. After breaking out over $10,000 we have had a “running correction” pushing prices toward $12,000, reaching a recovery high of $12220 Thursday, and after a day of rest in between, we resumed the rally touching $12,635. We had 750 shares of GBTC and sold off 250 last week at $13.93 and still have 500 with a cost of $8.45. GBTC closed $14.38 -.37 today.

Tomorrow is another day.

CAM



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