For Trading July 2nd

ISM Back Over 50

FEDEX Loss Sends the Stock Up

Pfizer in the Vaccine Race

Today’s market got off to a decent start and rallied to a high of +210 by 9:45 but didn’t hold it and was back down on the day by 11:00 but wouldn’t give up, and spent all day between + / - 100 until the close when it sold off in the last 15 minutes and finished -77.91 (.30%). The DJIA was the outcast with the NASDAQ +95.86 (.95%) at another new high, S&P +15.57 (.50%), the Russell -14.05 (.97%), and the DJ Transports -19.71 (.21%) even though FDX and UPS had added 120 DJT points to the average. Market internals were even on the NYSE while the NASDAQ was actually 9:7 Down, regardless of its new high close. The DJIA was 20:9 down and WMT unchanged with no winners or losers moving over 20 DP’s. Volume on NYSE was average but on the NAZ it was about 20% higher than yesterday. Hong Kong and Covid-19 were the big negatives today and it was the ISM gains to 52.6, well over the 50 break-point, and the excitement of the PFE vaccine news were the big positives that helps us higher.

We added some CVS 7/67.50 calls on the decline with an average price of $1.16 and they finished $ .59, and the NEM 7/17 $60’s @ 1.55 and added to last Friday @ $1.30 for an average of $1.47 triggered a 100% Up Rule sale at $2.94 this morning. They closed today $2.81. We also added a position in SLV 8/21 17 calls @ $ .74, and they closed $ .71.

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 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/dr95ohxzdjo SECTORS: The transports were the sector in the spotlight with FDX earnings (a loss) sending the stock higher by $16.44, although it closed just over its low of the day with a gain of 11.7% after being up over 14% for the biggest one-day gain since coming public in 1978. UPS also gained 2.9% and between them they added 120 point to the average but still couldn’t keep the average in positive territory.

FOOD SUPPLY CHAIN was LOWER with TSN -.53, BGS -.08, FLO -.11, CPB -.32, CAG +.50, MDLZ -.05, KHC -.21, CALM -.54, JJSF -2.80, SAFM -3.21, HRL -.83, SJM -.59, PPC -.15, KR -.20, and PBJ $31.06 -.17 (.54%).

BIOPHARMA was MIXED with BIIB -3.44, ABBV +1.22, REGN -15.55, ISRG +5.71, GILD -.94, MYL -.23, TEVA -.82, VRTX -3.31, BHC +.13, INCY -1.32, ICPT -1.41, LABU +.59, and IBB $137.80 +1.11 (.81%).

CANNABIS: was HIGHER with TLRY -.06, CGC +.25, CRON +.05, GWPH +3.53, ACB -.18, CURLF +.06, KERN -.16, and MJ $12.98 +.11 (.85%).

DEFENSE: was LOWER with LMT -3.92, GD -.86, TXT -.77, NOC +.70, BWXT -.18, TDY -6.76, RTX -.01, and ITA $163.19 -1.53 (.93%)

RETAIL: was LOWER with M -.26, JWN -.29, KSS -.63, DDS -.94, WMT -.23, TGT -.93, TJX +.64, RL -1.85, UAA -.12, LULU -2.82, TPR -.33, CPRI -.37, and XRT $43.06 +.18 (.42%).

FAANG and Big Cap: were HIGHER with GOOGL +23.95, AMZN +122.28 (4.43%), AAPL -.69, FB +10.03, NFLX +31.96, NVDA +1.49, TSLA +58.18 (5.39%), BABA +.60, BIDU +.91, CMG +17.52, CAT +.07, BA -1.85, DIS +1.45, and XLK $104.66 +.17 (.16%).

FINANCIALS were LOWER with GS -.12, JPM -.64, BAC -.44, MS -.74, C -.70, PNC -2.38, AIG -1.55, TRV -1.65, AXP -.84, V +.50, and XLF $22.94 -.20 (.86%).

OIL, $39.82 +.55. Oil was lower in last night’s trading before we rallied midday. I mentioned in last night’s charts with comments section in the Weekly Strategies letter, prices are trying to work higher towards $45.00. The stocks were higher with XLE $36.93 -.92 (2.43%).

GOLD $1,779.30 -20.60. It was a continuation rally and a new recovery high OF $1807.70 Last night I said “we’ve moved $50 since the low on Friday and while the trend and momentum are positive, we may have to test 1790 to consolidate our gains.” Unfortunately, we pulled back to 1,767 instead. We rallied a bit and finished only slightly better. We bought back the 3rd and final lot of NEM @ $58.86. And, we also added a half position in NEM 7/17 60 calls @ $1.55, and additional 50% @ $1.30 on Friday. We sold half on the 100% Up Rule @ $2.94 yesterday and we closed $2.81 - .49 today.

BITCOIN: closed $9,325 + 140. 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 last Wednesday @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97. GBTC closed $9.77 + .17 today.

Tomorrow is another day.

CAM