BLUE CHIP DAILY TREND REPORT
TUESDAY, DECEMBER 24, 2019
(free content: published before the launch of our new site)
RECAP
The S & P 500 closed at a new record high, up 2 points at 3224. 10-year US Treasury yields closed up .18 at 1.93. Gold is starting to show some strength, +7.80 to 1488 and the Gold Miners ETF, GDX, closed +3.0% at 27.77, more on this below.
New highs today in “Blue Chip Top 50” Focus names, (listed by market cap):
AAPL, BABA, V, INTC, NVS, NVDA, CAT, MU, JD, AMD, and MAS
OPEN POSITIONS
There were new 52+ week highs today in open positions in AMD, BABA, FB, HAL, MAS, and NVDA.
I scaled back partial gains in AMD at +56%, HL at +37% and NVDA at +21%. I am still mostly long in the positions, but did book gains into this recent strength. I also added a new trend following position long in Transocean (RIG), as it went over the 200-day moving average and the recent December high. I have a wider than average stop, just under 5.25.
The Energy sector has been a long-term turnaround focus group for me going back to August of this year, and the charts are showing signs of having put in a longer-term bottom. My first exposure here was the ETF XOP, I added HAL over the last few weeks and today RIG in the group, which gives me adequate exposure. I still believe this group offers considerable potential upside, with defined risk at the recent lows.
Advanced Micro Devices (AMD)
$45.46
Scaled partial profits here at 18-year highs, long from June 24, 2019, $28.96 entry. Still long.
Hecla Mining (HL)
$3.26
Scaled partial gains today from the November 25, $2.34 entry, still long.
Nvidia (NVDA)
$238.82
Scaled partial gains from the October 24, 196 entry.
“CHART OF THE DAY”
12/24/2019
Transocean (RIG)
$6.54
New long position Monday, 6.36, over the 200-day moving average, with a stop just under 5.25. Bullish 20/50-day moving average cross, and a close above the $6.50 level, which the stock has struggled at since May.
Luckin Coffee (LK)
$35.54
LK, highlighted as a key idea in this weekend’s ‘Weekly Trend Report’, was +10.5% today and made a new all-time high. This is a bullish signal in a recent IPO, and $28 continues to be a solid level to trade against.
“ETF CHART OF THE DAY”
TUESDAY, 12/24/2019
Gold Miners ETF (GDX)
$27.77
GDX closed the day +3.0% at 27.77, and over the 20/50/100 and 200-day moving averages for the first time since late October, and also recently had a bullish 20/50 day cross. Over 28 would trigger a technical buy signal.
Broad market action continues to be bullish, but I did dial back some exposure today, taking advantage of the recent strength. This is not a market call, as much as it is a risk-management, cash allocation move.
Happy Holidays to everyone.
