Stock Market Update 5-23-2019

Markets are heating up….

Here’s what’s cooking. SPY (SPDR ETF) opened at the bell Thursday with a gap down and continuation, dropping to fresh weekly lows before finding an intraday bottom at 280.57. What’s the reason? The trade war talk is heating up the kitchen. China fired shots Thursday by saying the US needs to right its “Wrong Actions”. Reminds us of the old saying two wrongs don’t make a right! Is this true when it comes to trade wars?

Check out the daily chart of $SPY – red hammer candlestick. Is the short term downtrend over yet? I think a test of the 100SMA and 200 SMA is coming. Watch the Oil charts (CL_F)for early warning signs on where the markets headed.

Hammer Spy

Hammer Time?

G20 June.

Trump is expected to meet with Chinese President Xi Jinping at the next G20 summit in Japan at the end of June. Will markets continue to drop until the two meet and strike a deal? In the past face to face meetings have been fruitful fuel for optimistic investors. May is looking like it may be the first month of losses since we began the year with a bang. Watch the 9EMA on the monthly charts!!!

Best Buy Beats.

Your local brick and mortar store Best Buy (BBY) beat expectations for earnings with 24.4% earnings growth. But why did the stock drop in Thursdays midday action? You guessed it! Fears on the growing trade war threat to retailers across the country. Is Best Buy catching a slice of Amazons pie? This is a thought to ponder as we look forward to Q2 earnings. $66 is a key 50% level for $BBY to hold if its going to bull higher.

MARKETS

Crypto dials for help: Bitcoin (BTC) got a nice boost Thursday morning due to the Telecom Giant AT&T (T) becoming the first major U.S. mobile career to accept cryptocurrency using BitPay.

Marijuana Stocks: New Jersey is the next state looking to make a move towards legal cannabis. 50,000 patients are registered in the New Jersey medical marijuana program, Lawmakers are expected to push through landmark changes this week that would make it easier to qualify, purchase and consume cannabis for medicinal use only. As more and more states pass this type of legislation we can only expect stocks in this sector to produce results that Marijuana investors have waited a lifetime for.

On The Lookout Today

Durable goods orders at 8:30EST

Tomorrow we get the Durable Goods Orders data. Last month we beat, but April was already a pretty strong month. How will tomorrows numbers affect the market? Analysts look at the numbers for a hint at the strength of the economy. Because of our current technical levels below the 50DMA lets see how the bulls react when the data drops..

Footlocker (FL) Earnings

The sneaker heads favorite retailer reports earnings tomorrow at 6:45AM. The stock traded lower Thursday due to trade war fears, dropping below a key support (50% Fibonacci level) of 54.00. Analysts are neutral on the stock the last 3 months, but they may be singing a new tune soon as FL recently declared a quarterly dividend of .38 cents per share. Also, they have been coming up with some pretty fresh new kicks that keep the foot traffic steady in stores.

funkadelic

Earnings

Bj’s Wholesale Club Holdings (BJ) beat expectations Thursday by a penny at .26 per share. The stock dipped in the pre-market then rallied off its daily 200 moving average to close the day above and hang on to its daily gain. CEO’s made remarks that the company saw an increase of 1.9% on sales and expects the momentum to continue. Are more Americans shopping at bulk discount retailers a sign of a strong economy? Everyone likes a bargain, clubs like BJ’s, and Sam’s (WMT) look poised to do well in the foreseeable future.

Earnings tomorrow look quiet. Just stay on your feet and keep your eye on the two F’s. Futures and Footlocker. 

ECONOMY

Crude (CL_F) slipped again today dropping below its 200 daily average. And boy have stocks followed. Oil futures suffered their largest single-session loss of the year on Thursday, dropping to the lowest level in about two months, as the potential for a drawn out conflict between the US and China trade standoff rattled oil traders.

Hot Topic:

Tesla (TSLA) shorts got the lemon squeezed out of them Thursday.in midday trading. A leaked email from CEO Elon Musk showed the car company is on track to beat its benchmark number of deliveries in the second quarter.

Elon’s email, which Reuters reported was authentic, said the company, on average, produced 900 Model 3 cars per day this week, bringing it close to its target of 7,000 per week.The email also stated that the company has 50k new orders for this quarter as of Tuesday. Those kind of numbers shocked investors and they scrambled to cover early before Thursdays bell.

The timely news helped shares of Tesla rise from the dead and end six straight days in the red. The weekly chart of TSLA shows RSI being extremely oversold – which we might add has been an area the bulls have hopped in the driver’s seat.

Raise your hand if you think the TSLA email was a little too conveniently leaked? Either way a short squeeze was underway today. Check out the weekly chart. $TSLA found support on a 50% retracement zone, and an angular support going back to the very first momentum weekly breakout. Checkout our Yahoo stock price.

Tsla Weekly

That channel though

Far out man!