FOR TRADING August 21st DJ Transports lead the Way!
The market started on the upside and spent the day working a bit higher. NASDAQ was the weak sister at the open and while other markets were rallying it spent the first couple of hours trading lower. Around 12:30 it finally went positive and although not on the highs, managed a close of +$4.68 (.06%), while the rest of the indexes were DJIA +89.37 (.35%), S&P 500 +6.92 (.24%), the Russell +5.75 (.34%) and DJ Transports, the best performer +134 (1.19%). Market internals were solid without being excessive with NYSE volume and A/D both 2.5:1 and NASDAQ just slightly less aggressive at 2:1 and 9:5 respectively. The standout stat was new highs / new lows where the NYSE came in the big winner at over 6:1 while over at NASDAQ they were 2:1.
SECTORS:
Other names in the news, premarket we had the announcement of PEP buying SODA as its new entry into the bottled carbonated water paying $3.2 billion or $144/share. This was just about 10% premium but don’t feel bad for holders since when the rumors surfaced 3 weeks ago the stock was just $85 so the real gains were closer to 70%. In other news NKE got several upgrades based on solid inventory controls and more B to C sales (with much better margins) and finished the day +2.43 (3.05%). TSLA took a pounding based on another interview that suggests the Elon Musk take a “medical leave” for a while. The stock broke to $287 from its high just 9 days ago at $387, but managed to reverse its 6% loss from Friday’s close to manage a gain of 2.94 at the close. A small name, SSC, a Chinese block-chain company got a contract to finance $24 billion to upgrade the buses from diesel to electric. I have no clue how this works, but the stock closed $1.97 Friday and was trading $4.18 premarket and finished the day $3.02 at the lows but still +1.05 (53.3%). Lastly, LCI, maker of several generic drug products received notice that it will not have its agreement with its main distribution partner, Jerome Stevens renewed in March 2019. It was down early and at the close was $5.35 – 8.15 (60.3%).
BIO/PHARMA, today they were MIXED with CELG +.51, BIIB -1.11, REGN +.54, ISRG +.44, ABBV -.29, MYL +.26, TEVA +1.43 (5.9%), PRGO +2.54 (3.48%), GILD -.68, VRTX -.92, BHC +.35, INCY +.25, ICPT -.04, INNT +.01 and IBB -.20 (.17%).
RETAIL was MOSTLY HIGHER as earnings for several are due tomorrow. Today’s upgrades for LULU caused quite a stir and sent the yoga / casual clothing company +6.48 (5%) and with NKE’s upgrades this morning sent the rest of the brands flying, with RL +3.50, UAA +.75(3.6%), KORS +1.97, GPS +.89, ANF +.65, URBN +1.10 and drove the stores higher with M +2.08 (5.7%), JWN +2.51 (4.24%), KSS +2.47 (3.23%), DDS +2.57 (3.45%), WMT -1.77, HD +2.11, TJX +1.62, TGT+.46, and DKS +.70. My two favorite terminal retailers were both down with SHLD -.08 (5.7%) and JCP-.12 (6.7%) while the retailer ETF was XRT +.73 (1.43%).
FAANG, surprisingly the group was MIXED today with AAPL making a new all-time high this morning @ $219.18 before closing lower on the day @ $215.45 -2.12The rest of the list was GOOGL +6.10, AMZN -5.82, FB -1.15, NVDA +2.72, TSLA +1.75, NFLX (its first solid day in a while) +11.55 (3.6%), BIDU +.93, BABA +3.32, IBM +.45, BOX +.73 (we bought the 9/27 calls @ $1.15 today and they closed $.94 +.21) and XLK +.07 (.10%).
FINANCIALS, were HIGHER even with the weakness in interest rates with GS +2.40, JPM -.35, BAC +.11, AIG +.47, C +.81, PNC +.33, WFC +.17 and XLF +.06 (.21%).
OIL, $65.42 +.21 Oil was rocked by supply and drawdown numbers last week but after probing the lows for the past few day managed to bounce and spend some time defining the trading range. I have said that I want to see some horizontal trading before making a commitment to the long side again. The stocks were HIGHER with the exception of CVX, down just .05. all the others I follow were up and the XLE +.43 (.59%).
METALS, $1,194.60 +10.80 the gold failed to hold the round number of $1,200. This was partially due to the technical but also the fact that like Oil, it is an international commodity priced in the rising US$. Last Wednesday night the pajama traders took it as low as $1,167 -18 before it came back early Thursday morning. The action last night and the follow thru today are just part of what I’ll need to see before going back into this one on the long side. Copper collapsed to contract lows of $2.55 and it has broken all support going back to May 2017 at $2.50, and I’ll need to see more than an anemic rally. We’ll need better economic numbers to get it started back to the upside.
BITCOIN closed $6,452 -20. After trading down to below test support at 6,800 we collapsed again hitting $6,110 before a minor rally to trade 6,615. Tuesday’s low of $5855 is just $100 above contract lows of $5,755 could easily be breached and the overhead supply is still from 6,900 to 7,300. Today was another narrow “inside day” that I feel will send us down again to test the lows.
Tomorrow is another day.
CAM
Submitted August 21, 2018 at 08:52AM by Dashover https://ift.tt/2MrU6c7
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