For Trading May 13th

FAANG Cracks, Market Falls

Even Pharma Falls

Today’s market was up at the open but couldn’t hold on to its +160 gain for more than the first half hour and we went negative for good around 1:00PM. I thought that Dr. Fauci might be the fly in the ointment, but he was just as always, measured and calm and had no serious surprises for his Senate questioners. By the last half hour we had broken 24,000 and fell an additional 250 DPs and finished the day -457.21 (1.89%), NASDAQ -189.79 (2.06%), S&P 500 -60.20 (2.05%). The Russell -45.70 (3.46%), and DJ Transports -233.63 (2.84%). The internals were lousy with NYSE 3:1 down and NASDAQ 2.5:1, volume was down in NY and Up in NASDAQ. There were only 2 DJIA stocks higher with UTX +12 DP and WMT up less than one DP. The loss leaders were GS -40, MCD-33, MMM & MSFT -29, V -27, and AAPL, BA, and CAT -26DPs. Strong groups were Consumer staples and Utilities while Real estate, financials and industrials were weak.

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/lRV00FNQe5Y

SECTORS: Is this the redux of the now infamous Sears / Kmart merger? Taking 2 crappy companies that make no money and put them together into one really big crappy company that doesn’t make any money? Of course, I’m talking about the talk of an UBER / GRUB consolidation! Neither company makes money, they are hurting the restaurant owner’s profits and of course, they pay their drivers substandard wages. Seems like a solid plan. At least Eddie Lampert knew that KM had all that real estate he could steal and liquidate. This one, not so much. And of course, there’s no actual money involved since UBER burns it quicker than Trump and Powell can print it.

FOOD SUPPLY: was MIXED with TSN -1.26, BGS +2.24, FLO +.03, CAG +.64, MDLZ -.79, KHC -.01, CALM +.29, JJSF +5.68, SAFM -7.23, LANC -1.75 and GO +.83.

BIOPHARMA: was LOWER with BIIB -8.41, ABBV +2.22, REGN -19.01, ISRG -16.24, GILD -2.40, MYL -.09, TEVA -.15, VRTX -10.56, BHC +.58, INCY -2.59, ICPT -1.44, LABU -3.97, and IBB $130.90 -3.00 (2.24%).

CANNABIS: This group was MIXED with TLRY -.60, CGC -.25, CRON -.09, GWPH +5.35, ACB -.87 (11.74%), PYX -.11, NBEV -.08, CURLF +.35, KERN -.48 and MJ $11.40 -.30 (2.56%).

DEFENSE: was LOWER with LMT -7.66, GD -2.81, TXT -1.08, NOC -4.41, BWXT -2.63, TDY -9.23, RTX -1.29, and ITA $146.06 -3.51 (2.34%).

RETAIL was LOWER with M -.34, JWN -1.09, KSS -.79, DDS -1.71, JCP +.035 (22.98%), WMT +.02, TGT -1.54, TJX -2.90, RL -2.90 (6.28%), UAA -.34, LULU -4.62, TPR -.74, CPRI -.91, and XRT $37.00 -.98 (2.58%).

FAANG and Big Cap: were LOWER with GOOGL -43.59, AMZN -63.99, AAPL -5.76, FB -5.08, NFLX -11.51, NVDA -13.16, TSLA -14.34, BABA -5.73, BIDU -2.58, CMG -9.93, CAT -3.71, BA -4.51, DIS -4.26 and XLK $92.80 -2.61 (2.74%).

FINANCIALS were LOWER with GS -9.16, JPM -3.67, BAC -.93, MS -1.82, C -2.24, PNC -3.12, AIG -.57, TRV -2.79, AXP -2.64, V -6.16, and XLF $21.05 -.81 (3.71%).

OIL, $25.73 +1.25. Oil was higher over-night and the rally continued early in the day to a higher high of $26.87 before falling back and closing up on the day. The stocks were lower across the board with the XLE $37.00 -1.10 (2.89%)

METALS, GOLD: $1,706.80 +8.80. After the recent gains, Gold broke below $1,700 yesterday but failed to follow-thru to the downside and closed higher. The 5 and 20-day Mas look like they may cross to the upside. We are long NEM.

BITCOIN: closed $8,970 +75. After breaking out over $7500 we have moved as high as just over $10,000 before gapping down overnight to trade as low as $8,400 this morning. We added 350 shares of GBTC today @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $10.59 +.30 today.

Tomorrow is another day.

CAM