For Trading JUNE 19th
Init. Claims +1.508 Million
Market recovers from -270
Leading Econ. Ind. +2.8
Today’s market was an ugly open -270 followed by a recovery, another dip to -180 and a rally back to DJIA -39.51 (.15%). With the exception of the DJ Transports -31.46 (.34%), the other indexes were all higher, with NASDAQ +35.52 (.33%), S&P 500 +1.85 (.06%), and the Russell +.54 (.04%). Market internals were pretty even with NYSE 4:3 lower and NASDAQ even @ 1:1. Volume was slightly lower and DJIA were 18 down and 12 up with no major movers to report.
The news of the day was somewhat mixed with Initial unemployment claims adding 1.508 million down 58,000 but still higher than expected, continuing claims topping 20,544,000. The Philadelphia Fed report was 27.5 v. -20 expected, and the biggest winner was the Index of leading indicators showing its first gain since January +2.8 v. 2.5 expected. Unfortunately, last months numbers were revised down from -4.4 to – 6.1. With all these conflicting numbers, no surprise that the market couldn’t make up its mind.
We went back into CVS 6/26 65 calls on the decline with an average price of $1.15 and they finished $1.02 - .50 and the NEM 7/17 $60’s @ 1.55 that finished the day@ $1.36. I am looking for a decline to add to that position.
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/uszMmRey4FM
SECTORS: Kroger (KR) reported earnings, and while they beat all expectations for both earnings and revenues, the stock actually sold off a bit, hitting $30.65 but came back to close $31.81 – 1.00 (3.05%). I would note that this stock has been a great performer and has moved steadily higher from it’s low in 8/2019 of $20.50, stopping at $36.84 before the market break in March and falling back to $27.33, grinding higher to make it back to its current level. Definitely one to watch for further gains. Marathon Petroleum (MPC) was up in afterhours on the news that it has renewed its plan to either sell or spin-off its Speedway stores. The stock, which had climbed back up from the March lows just over $15 to make it back to $44 had closed $38.47 +1.34, has continued higher to $40.79 + 2.12 (5.5%). Airlines and cruise lines were lower early and spent the day going back and forth before closing mid-range and slightly higher. The only exception was Carnival (CCL) which reported numbers and while down as far as $17.80 managed to make it back to close $18.82 -.27 (1.3%). And, the HOMERUN OF THE DAY, was back to UONE. After its move from $1.54 to $40, back to $10.60 this morning, it rallied as high as $35.50 and finished $25.00 +12.99 (97%). All this in a week, and still no news releases except “trading halt for volatility, stock resumed.”
FOOD SUPPLY CHAIN was LOWER with TSN + .04, FLO -.08, CPB -.36, CAG -.06, MDLZ+.29, KHC +.38, CALM unchanged, JJSF -1.16, SAFM -.18, HRL +.14, SJM -.46, PPC -.04, KR -.84, and PBJ $31.11 -.10 (.31%).
BIOPHARMA was HIGHER with BIIB (see above) -19.71 (7%), ABBV +.49, REGN -5.75, ISRG +7.05, GILD+.32, MYL +.53, TEVA +.14, VRTX -.79, BHC +.40, INCY +1.08, ICPT -1.13, LABU +1.60, and IBB $133.00 +.18 (.14%).
CANNABIS: was HIGHER with TLRY +.46, CGC +.38, CRON +.04, GWPH +5.48, ACB -.15, NBEV +.03, CURLF +.34, KERN -.81, and MJ $13.66 +.06 (.44%).
DEFENSE: was LOWER with LMT -2.66, GD +2.71, TXT +.42, NOC -4.26, BWXT -1.32, TDY -4.60, RTX +.62, and ITA $172.83 -.20 (.12%).
RETAIL was MIXED with M +.23, JWN -.38, KSS -.13, DDS +.03, WMT -.83, TGT -.52, TJX -.54, RL +.02, RL +.02, UAA +.01, LULU +.35, TPR -.24, CPRI -.02 and XRT $42.67 -.08 (.19%).
FAANG and Big Cap: were HIGHER with GOOGL -16.54, AMZN +22.07, AAPL +.90, FB +1.12, NFLX +2.73, NVDA +.88, TSLA +17.21, BABA -.,55, BIDU +1.63, CMG +12.12, CAT +.27, DIS +1.20, and XLK $103.25 +.76 (.74%).
FINANCIALS were HIGHER with GS -1.19, JPM +.02, BAC +.19, MS -.01, C +.40, PNC +.20, AIG +.26, TRV +1.24, AXP -1.31, V +.94 and XLF $29.34 +.22 (.91%).
OIL, $3738.79 +.86. Oil was under pressure early in the day but managed to rally and close near the highs. I mentioned in tonight’s video that it appears that prices are trying to work higher towards $45.00. The stocks were higher with XLE $40.85 +1.16 (2.92%).
GOLD $1731.10 -4.50. It was another day of a test of $1,750 followed by another test of $1,720 and a close in the middle of the range. The yellow metal is unchanged tonight. 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, which closed $1.36.
BITCOIN: closed $9,410 +85. After trading another short-range day, we finished mid-range and slightly 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 $10.58 -.12 today.
Tomorrow is another day.
CAM
