For Trading May 7th

Split Market -NAZ Up, DOW Down

Earnings Galore

Today’s market was a split affair from right after the open. While the NASDAQ was higher, the DJIA and S&P 500 were sloppy at best. While the NASDAQ has regained its entire loss for 2020 (not the highs, but since 1/2/2020), the DJIA is still -5054 or 17.5% and the S&P 500 is -392 or 12%. At the highs today the DJIA was +171 and finished on the lows -218.45 (.91%), NASDAQ +45.27 (.51%), S&P 500 -20.02 (.70%), the Russell -10.50 (.82%) and the DJ Transports -115.47 (1.43%). Market internals were weak with NYSE 2:1 down and NASDAQ 1.5:1 down. Volume was also light. On the DJIA we were decidedly down with 23 lower, 6 higher and PFE unchanged. The gainers were AAPL +21 and MSFT +12 DPs while on the downside we had UNH -29 and BA & TRV -24 DPs. Sectors on the upside included Info tech and consumer discretionary while Financial, Utilities and Energy the weak groups.

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/RQTFwMS1vZk

SECTORS: Earnings played a part in today’s market again. PTON was higher by 1.81 before the numbers and after the beat the stock traded as high as $42.40 and settled $41.76 + 3.73. WYNN missed top and bottom lines with the slower than expected attendance in Macau and the stock, already down from a recovery high of $152 to close the day $79.25 -.42 fell to $76.50 before a $77.40 close -1.85. ETSY was also a disappointment after closing at a new all-time high at $78.24 +5.45 (7.49%) and after hitting $84.01 fell back to $69.11 and finished $74.05 – 4.19.

But the award for the day goes to the analysts who both downgraded Macro-Genics (MGNX) and lowered their price objectives to $13 from $17 (Credit Suisse) and $15 from $16 at SVB Leerink, only to have the stock report and then be halted for volatility several times on its way from last nights close of $7.60 to $27.34 and closed $25.15 +17.55 (230.92%)…GOOD CALL…Got your resume up to date??

FOOD SUPPLY: was MIXED with TSN -2.29, BGS +1.68 (8.6%), FLO -.62, CAG +.38, MDLZ -.18, KHC +.33, CALM +.12, JJSF -6.05, SAFM +.89, and LANC -.83.

BIOPHARMA: was MIXED with BIIB +2.34, ABBV -.05, REGN -19.37, ISRG -.86, GILD -1.89, MYL +.29, TEVA +.51, VRTX -2.27, BHC +.54, INCY -2.74, ICPT +8.65 (10.77%), LABU +.46 and IBB $127.00 +.02 (.02%).

CANNABIS: This group was LOWER with TLRY -.05, CGC -.41, CRON -.18, GWPH +2.48, ACB -.01, PYX +.16, NBEV +.02, CURLF -.09, KERN -.10 and MJ $11.50 -.35 (2.95%).

DEFENSE: was LOWER with LMT -11.85, GD -4.40, TXT -.30, NOC -5.71, BWXT +1.53, RTX -1.35, and ITA $144.00 -3.45 (2.34%).

RETAIL was LOWER with M -.18, JWN -.14, KSS -.52, DDS -.20, JCP -.023, WMT -1.77, TGT +1.73, TJX -.49, RL -1.19, UAA -.13, LULU +4.80, TPR -.70, CPRI -.45 and XRT $36.31 +.10 (.28%).

FAANG and Big Cap: were HIGHER with GOOGL -3.59, AMZN +27.30, AAPL +2.44, FB +.94, NFLX +11.04, NVDA +3.26, TSLA +11.39, BABA +.38, BIDU +.75, CMG -4.23, CAT -1.45, BA -3.70, DIS -.25 and XLK $92.03 +.71 (.78%).

FINANCIALS were LOWER with GS -2.10, JPM -1.97, BAC -.38, MS -.73, C -1.12, PNC -1.27, AIG -1.75, TRV -3.56, AXP -2.75, V -.33 and XLF 21.32 -.47 (2.16%).

OIL, $25.62 -.87. Oil was higher over-night and the rally continued early in the day to a new recovery high of $27.98 before falling back and closing down on the day. The stocks were lower across the board with the XLE $36.15 -.97 (2.61%).

METALS, GOLD: $1,688.50 -22.10. After the recent gains, Gold broke solidly above $1,700 and traded as high as $1788 last Wednesday. We were stopped out of our position in the 5/15 163 calls on the 50% Down Rule. We are also long NEM.

BITCOIN: closed $9340 +355. After breaking out over $7500 we have consolidated and broken over 8,000 and 8,500 and again consolidated. Today’s close is the highest since BTC broke down in early March at $9385 and 9390. $10,000-10,250 seems like the next stop. We still own 400 GBTC with an average of $8.06. GBTC closed $10.76 +.73 today.

Tomorrow is another day.

CAM