For Trading May 15th

DJIA Reverses 835

POWELL Says, “No Neg Rates”, BUT

Today’s market was down from the start with the initial and continuing claims numbers, but it only lasted for 45 minutes before the market started back to the unchanged mark. We chopped around until 1:00PM and then we were above the prior close to stay. We finished +377.37 (1.62%), NASDAQ +80.55 (.91%), S&P 500 +32.50 (1.15%), the Russell +4.30 (.32%) and the DJ Transports +37.54 (.48%) and still -471 (5.65%) for the week. Market internals were anemic for an 835 rally at just over 1:1 on both exchanges. DJIA was 25 / 5 higher with no losses of over $3 DPs while gainers were UNH +86, AXP +39, HD +29, V +26, and JPM +24 DPs.

While Jay Powell said, “not looking at negative rates,” they really have no control over the markets. As our rates remain higher than others, we continue to be a magnet for the massive amount of money looking for a home. He may not be considering them, but he can’t really enforce the issue without some very unattractive methods of monetary controls, which, BTW, never work.

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/MKauYKKMqeo

SECTORS: The news Taiwan Semi (TSM) that they were building an “advanced chip” facility in Arizona helped the group early and it finished $52.10 +1.18 (2.3%). AMAT followed with earnings after the close and while they were somewhat a disappointment, the stock, which closed $54.43 +2.94 (5.71%), it moved up to $57.88 and finished $57.01 +2.58.

Last night I mentioned ASCO, the Cancer Society annual meeting is in 2 weeks, and Allogene (ALLO) published their findings on a new therapy and the stock shot up from its close of $30.98 -1.56 (4.79%) to trade as high as $46.57 before closing $39.50 + 8.52. Today it continued higher and finished $42.12 +11.14 (35.96%). There will be a steady stream of these type of announcements in the next 10 days.

FOOD SUPPLY: was MIXED with TSN +1.12, BGS -.61, FLO +.20, CAG -.22 MDLZ -.01, KHC +.05, CALM +.46, JJSF -4.10, DAFM -2.35, LANC -2.17, GO +.73, and BYND +1.49.

BIOPHARMA was LOWER with BIIB +.86, ABBV +.78, REGN -6.26, ISRG +8.34, GILD +.34, MYL -.24, TEVA +.03, VRTX -2.53, BHC +.01, INCY -1.62, ICPT-2.33, LACU -1.19, and IBB $128.80 -.80 (.62%).

CANNABIS: This group was HIGHER with TLRY +.17, CGC +.79, CRON +.27, GWPH +2.45, ACB +1.85 (21.9%), PYX +.18, NBEV +.04, CURLF +.06, KERN -.15, and MJ $11.10 +.14 (1.28%).

DEFENSE: was LOWER with LMT -7.72, GD +1.41, TXT +.07, NOC -8.46, BWXT -2.43, TDY -4.79, RTX +.47, and ITA $141.12 -.58 (.41%).

RETAIL was HIGHER with M -.02, JWN +.62, KSS +.51, DDS +.62, JCP -.036 (16.29%), WMT +.28, TGT +.85, TJX +.58, RL +1.29, UAA +.11, LULU +8.52, TPR +.56, CPRI +.11, and XRT $36.22 +.18 (.50%).

FAANG and Big Cap: were HIGHER with GOOGL +6.42, AMZN +17.08, AAPL +2.55, FB +2.18, NFLX +4.72, NVDA +11.30, TSLA +12.04, BABA +2.14, BIDU +.53, CMG +29.71, CAT +1.71, BA +1.25, DIS +3.26, and XLK $93.00 +1.17 (1.27%).

FINANCIALS were HIGHER with GS +3.25, JPM +4.32, BAC +1.13, MS +1.13, C +1.92, PNC +2.18, AIG +.89, TRV +.43, AXP +6.37 (8.16%), V +4.01, and XLF $21.19 +.53 (2.57%).

OIL, $27.88 +2.20. Oil was higher today with the close right on the falling 50-day moving average. The most recent downside break occurred from just under $29.00 and may stop this move too, but we’ll have to see. All the stocks on my list were higher with XLE $36.38 +.65 (4.13%).

METALS, GOLD: $1,740.90 +24.50. After breaking the downtrend line around $17.27 we continued higher hitting $1746 before closing strong. The 5 and 20-day MAs look like they may cross to the upside, we are long NEM.

BITCOIN: closed $9,725 +405. 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 earlier this week. We continue to recover higher prices and today broke above the $10030 close from which we gapped down on Monday. We added 350 shares of GBTC Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $11.80 + .59 today.

Tomorrow is another day.

CAM