For Trading August 6th
DIS +10% on Earnings
ADP Number a MAJOR MISS
Another New High for NASDAQ
Today’s market got off to a positive start even though the ADP payroll number, expected to be +1 million jobs came in at a meager +167,000. This was before the good ISM numbers came in well above both expectations and last months number. By the end of the day the DJIA was +373.05 (1.39%), NASDAQ +57.24 (.52%), S&P 500 +21.26 (.64%), the Russell the big winner +29.02 (1.91%), and the DJ Transports +128.75 (1.28%). Market internals were a sold 2:1 on both NYSE and NASDAQ and NYSE volume was better at 3:1 up. Bond markets were slightly lower with the long end actually gaining a bit and steepening the yield curve. The U.S. Dollar index continues to fall and I will be working on an advisory for the Weekly Insights letter for ways to play the weak dollar using ETFs.
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 3000 members. I also did this video over the weekend on a day-trade, (actually 2) that I made in AAPL on Friday. I think it’s highly informative as a guide to under what conditions these kind of trades in expiring options make sense. The link is https://youtu.be/qIV0G-hP3aM Enjoy!!
Tonight’s closing comment video https://youtu.be/1vHMDfnYaIs
SECTORS: There was plenty of earnings news around with the big name, DIS reporting and after a decline from 117 to 113.50 in last night’s trading it reversed higher and finished higher last night and followed today to hit $130.31, finished the day $127.61 +10.32 (8.8%). Also reporting, SQ with a beat finished the day $146.20 +9.37 (6.9%). CTL beat and was $10.29 +.45 (4.57%), ROKU with a beat, but soft guidance $162.10 -3.32, SONO, with a loss but a revenue beat $15.40 -2.10, WDC with a miss on revenues and poor guidance $38.56 -5.89 (13.25$), and FSLY with a beat top and bottom lines but $93.20 -15.80 (14.5%). Also, in the news, Teladoc (TDOC) and Livongo Health (LVGO) announced a merger that evidently no one likes as both stocks were sharply lower. TDOC $202.01 -47.41 (19%) and LVGO $128.06 -16.47 (11.4%). FOOD SUPPLY CHAIN was LOWER with TSN -2.20, BGS +.84, FLO -.08, CPB -.71, CAG -.48, MDLZ -.43, KHC -.30, CALM -.90, JJSF +2.02, SAFM -1.66, HRL -.75, SJM -2.00, PPC -.35, KR -.36 and PBJ $33.60 -.17 (.51%).
BIOPHARMA was MIXED with BIIB + .09, ABBV -1.03, REGN -23.91, ISRG +9.39, GILD -1.73, MYL +.63, TEVA +.71 (6.02%), VRTX -2.48, BHC +.51, INCY -2.33, ICPT +.46, LABU +1.14, and IBB $137.45 -.23 (.17%). CANNABIS: was LOWER with TLRY -.58, CGC -.11, CRON -.12, GWPH -.27, ACB -.02, NBEV +.06, CURLF -.08, KERN -.,06, and MJ $13.52 -.07 (.52%).
DEFENSE: was HIGHER with LMT +5.51, GD +1.95, TXT +.59, NOC +4.70, BWXT -.77, TDY +7.65, RTX +2.77 (4.82%), and ITA $165.75 +5.56 (3.47%).
RETAIL: was HIGHER with M +.23, JWN +1.09, KSS +1.11, DDS +.70, WMT -1.83, TGT -1.04, TJX +.26, RL +2.57, UAA +.68, LULU +12.29, TPR +.65, CPRI +1/.60, and XRT $50.20 +1.19 (2.43%).
FAANG and Big Cap: were MIXED with GOOGL +6.70, AMZN +59.69, AAPL +.60, FB -.78, NFLX -9.14, NVDA +1.58, TSLA -3.00, BABA +2.80, BIDU -.82, CMG +.43, CAT +3.48, MSFT -.88, BA +10.68, DIS +10.41 (6.41%), and XLK $113.89 +.45 (.40%). PLEASE BE AWARE THAT THESE PRICES ARE LATE MARKET QUOTES AND DO NOT REPRESENT THE 4:00 CLOSES.
FINANCIALS were HIGHER with GS +2.41, JPM +1.60, BAC +.46, MS +.49, C +.87, PNC +1.27, AIG +.40, TRV +1.98, AXP +1.91, V +3.70, and XLF $24.34 +.34 (1.42%).
OIL, $42.19 + .49. Oil was lower in last night’s trading before we rallied in the morning on a bigger than expected drawdown of supplies. We have tried several times to break to the upside and traded as high as $43.52 today before running into supply and turned it back. The stocks were HIGHER with XLE $37.43 +.39 (1.05%).
GOLD $2049.30 +28.30. It was a continuation rally and a new recovery high of $2,070.30. I have only the NEM August 65 / 70 spread on in the Gold market. The spread was put on at $1.30 and finished the day @ $3.38.
BITCOIN: closed $11,850 +480. After breaking out over $10,000 we have had a “running correction” pushing prices toward $12,000, reaching a recovery high of $11980 today. We had added 350 shares of GBTC @ $10.02 to our position of 400 @ $8.06, bringing our average price to $8.97, but sold 250 shares today @ $13.93. GBTC closed $13.84 + .64 today.
Tomorrow is another day.
CAM
