Monday: Late-Day Rally
The S&P 500 index rallied to new all-time high and all-time closing in a bit of an unusual trading pattern. After surrendering all of the premarket gains early, it drifted lower for the most of the session, but found support ahead of Friday’s low (4221.50) at 4224.50 and staged a late day rally.
Being led by big tech, the index rallied over 20 points with most of the gains coming in the last thirty minutes of the session. For the day, the index added 9.25 points to close just off the high for the day (4248.50) at 4245.75.
Apple Inc. (NASDAQ: AAPL) finally moved out of its 24 day trading range ($122.50-$128.50) and surged $3.17 from $127.35 to $130.48. The technical breakout may have been triggered by the announcement that the company has plans for a faster watch, future temperature and glucose sensors to expand its reach in the healthcare arena.
On the downside, Lordstown Motors (NASDAQ: RIDE) continues to bombard investors with negative announcements.
More on Lordstown Motors: https://tinyurl.com/3hj5zhaa
Tuesday: More Intraday Selling
For the second day in a row, there was intraday selling pressure right from the opening in the S&P 500 index. The retreat erased all of the overnight gains until it found support just ahead of Tuesday’s low (4224.50) at 4228.25 and reversed course.
By day’s end, the index was able to trim the losses and only ended the session at 4235, which was 10.75 lower than the all-time closing high made on Monday.
Short-selling firm Hindenburg Research was at it again, this time they put its target on Draftkings (NASDAQ: DKNG). The firm called out the online wagering frim for skirting law and hiding ‘Black Market Operations.’ Also, the firm announced it had taken a position in the issue ahead of the report.
Buyers stepped in off the opening bell as it immediately bottomed at $44.65 and began to move higher. It was able to mount a nice rebound and trimmed the losses considerably, ending the session lower by only $2.11 at $48.51 after being in the red by nearly $6 off the open.
JP Morgan (NYSE:JPM) extended its losing streak to seven days, its worst stretch since mid- January.
More on JP Morgan: https://tinyurl.com/8b7pc7v5
Wednesday: Wacky Wednesday
Volatility reared up today as a result of the Federal Reserve maintaining its accommodating fiscal policy for the remainder of the year and in 2022 as well. The premarket rally ended shortly into the regular, with the index coming within five points of its all-time closing high before turning south.
The slow and steady decline turned into freefall shortly after it was announced that there would be change in policy in the near-term. The S&P 500 index fell under 4200 for the first time in the last four sessions, but buyers came in well under June 8 low (4196.25) at 4190.25 and reversed course.
It managed to get back a portion of its losses ending the day lower by 22.75 at 4213.75
Volatile Cassava Sciences Inc. (NASDAQ: SAVA), who has an Alzheimer’s drug in the pipeline, ignored the decline in the broad market, putting in a double bottom in the $71 handle and ended the day in the green by $8.17 or +11.3% at $80.27. That marked the all-time closing high for the issue.
Investors can only ignore the negative news for so long with an issue in the retreat mode such as Southwest Airlines Co. (NYSE: LUV)
Thursday: Up And Down And Unchanged
In a very choppy session, the S&P 500 index breached Wednesday’s low (4190.25), both in the premarket and intraday, but was able to snap right back again on both occasions. Big tech was the index’s savior as the top six components (all mega-tech) far outpaced the reminder of the index.
A late day rally faded into the close when all said and done, the index was flat 4212.25 vs Wednesday’s close of 4213.
Don’t look now, but Amazon Inc. (NASDAQ: AMZN) is knocking on the door of a new all-time high. The issue which has been in a nauseating trading range over the past 10 months ($3000-$3500) for the most part has been higher in seven of the last nine sessions, with the tow lwo outliers being small losses, has rallied from $3198.01 to $3489.24 on a closing basis.
“Sell the news” in Ford Motor (NYSE: F) after raised guidance.
More on Ford Motor: https://tinyurl.com/4jj65dx2
Friday: Market Gets “Bullarded”
With the markets already in retreat during the premarket St. Louis Fed President Jim Bullard stoked the interest rate hike fears while appearing on CNBC and set the tone for the remainder of the day. The S&P 500 index was unable to even close to Thursday’s closing price of 4212.25. In fact, the intraday high was just over Thursday’s low (4183) at 4183.75.
By day’s end, the index has made a new low for the month and posted its lowest close since May 21, lower by 58.75 at 4153.50. The selling continued in the after-hours, knocking the index to 4141.75, perhaps implying a lower open open in the futures Sunday night.
There are always a few issues that are able to trade higher despite carnage in the markets. Tesla Inc (NASDAQ: TSLA) continued to creep higher. The issue was higher in the four out of the five sessions this week adding on Friday adding $6.71 at $623.31. That is the highest close for the issue this month and in order to make a new high for the rebound needs to clear $635.59.
Has the pre-Prime Day rally for Amazon.com Inc. come to end?
More on Amaxon.com Inc. https://tinyurl.com/khxsyzey
The Week Ahead
With the extremely weak close on Friday, the market is going to have a tough time bouncing right back. Next week is loaded with potential market moving events, which includes speeches from Fed officials, including Jerome Powell who may provide more commentary on inflation. The weekly oil reports on Tuesday and Wednesday will reveal supply and demand levels as price continues to increase.
On Thursday, the Fed will announce the results of the annual Stress Tests that will reveal how the banks have fared during the pandemic. Also, two economic reports, May Durable orders and Q1 GDP will be released.
To end the week, the University of Michigan will release the June Consumer Sentiment Index, which can be a market mover.
Earnings are light again with only a few major reports. All on Thursday, with Accenture (NYSE: ACN) before the bell and Nike Inc, (NYSE: NKE), Darden Restaurant Inc. (NYSE: DRI) and FedEx (NYSE: FDX) after the bell.
Issue With Upcoming Catalyst
JP Morgan is having its worst month since March 2020. After making a new all-time high on June 2 ($167.44) it has been constantly selling pressure. In fact, after posting it’s all-time closing high on June 4 ($166.44), it has been lower in eight of the last ten trading sessions.
Over that course it has swooned to $147.92 or 11 percent decline.
It is now approaching its April low ($146.69) and if the sharp decline continues, its March low is way down at ($128.48).
Shareholders of the issue are sure hoping from some positive results on the bank when iStress test results is revealed on Thursday.