Invest and Trade Profitably with Jon Johnson

FOMC Remains Hawkish

THE WEEKEND ISSUE

Informing Investors Around The World

Read In All 50 States And Over 100 Countries

Weekend Newsletter for

August 5, 2018

Table Of Contents 1) MARKET SUMMARY from THE DAILY 2) STOCK SPLIT REPORT 3) IH ALERTS 4) SUCCESS TRADING GROUP 5) COVERED CALL SERVICE

Jon Johnson

1) MARKET SUMMARY > >From “The Daily” by Jon Johnson at InvestmentHouse.com

The past week showed some of all the market sides.

– The past week had all the key players present: Fed, Trade, Economy, and of course, the market indices.
– FOMC remains hawkish, even more so, and that is THE market driver now regardless of the trade issues.
– Techs enjoyed a recovery thanks to some salvaging earnings, but once that driver is through, the money rotation likely continues.

Market Summary (continued)
The week started continuing the prior week selling, some sharp selling at that. Wednesday saw the FOMC rate decision where the Fed was more hawkish (and with at best two rate hikes before inversion, it is cutting it close) but not so much the market dropped, instead just holding steady. Thursday the hammer fell with Trump wanting to increase tariffs from 10% to 25% on the first $200B in tariffs on Chinese goods. Stocks flopped — then surged back up intraday. 142 points low to close on the Dow? No! On NASDAQ. The trade issues were no match for AAPL’s earnings as the company’s line of cash cow products produces tons of income even if the company can no longer come up with innovations.
Friday was jobs Friday and it was a clinker of sorts, though revisions to the two prior months more than made up the difference. 157K jobs versus the 190K expected (248K June, from 213K). Disappointing, but then again, Toys-R-Us finally closed its operations in its slow, Ivan Ilyich-like death. That bled 32,000 jobs from the report. Added back in and, voila, 189K, just 1K off expectations. Tomato, tomato. Everything else status quo as well. Wages +2.7% year/year. Participation 62.9%. 57K more of those manufacturing jobs that would never come back came back. 3 month average is 224K per month.
What did stocks do? Not much. After AAPL’s big day, NASDAQ was quiet though TTWO came back to life — for most of the session. SP500 and DJ30 added some decent 0.5%ish gains. The midcaps were up modestly, RUTX lost a half percent. Kind of status quo in terms of the action of late outside of that trade dispute ramp up.

Read “The Daily” Entire Weekend Summary
Watch Market Overview Video
Watch Technical Summary Video

Here’s a trade from “The Daily” and insights into our trading strategy:

Chart by StockCharts.com
Please turn on your ability to receive graphics. We are providing you with a detailed chart of this stock. If you are unable to turn on graphics, please CLICK HERE or on the *Read Our Weekend Report Online* link above.


C
(Citigroup–$72.39; +0.54; optionable)
Company Profile
EARNINGS: 10/12/2018
STATUS: Cup w/handle. As part of its 6+ month base, C has formed a cup with handle from mid-May to late July, currently working on the handle and a breakout move. Friday C moved over the 200 day SMA and held the gains, a positive, but not a definitive move. Well, we are looking for a more definitive move, a breakout that snaps C clearly through the 200 day SMA and on toward the January highs. Our first target, however, is the February highs, and that more conservative move lands an 80%ish gain on the call options.
CHART VIDEO
Volume: 13.537M Avg Volume: 17.162M
BUY POINT: $72.58 Volume=20M Target=$76.97 Stop=$71.15
POSITION: C OCT 19 2018 72.50C – (62 delta)

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2) STOCK SPLIT REPORT Playing stock splits can be very profitable, but it takes know-how. Our stock split service focuses on three main types of plays: 1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).
Listen to Stock Split Report Editor Jon Johnson’sstock split interview on CNBC-TV [ View Here ]
Here’s a leader play and our current analysis.

Chart by StockCharts.com
Please turn on your ability to receive graphics. We are providing you with a detailed chart of this stock. If you are unable to turn on graphics, please CLICK HERE or on the *Read Our Weekend Report Online* link above.


CNI
(Canadian Natl. Railway–$88.35; -0.51; optionable): Rails
Company Profile
EARNINGS: 10/23/2018
STATUS: Transports look good, and while we have a play ready to go on CSX, we really like CNI as well. In July, CNI broke out of a 13 month base/range, gapping upside late month on its earnings report. The past week it has tested back to the upper gap point and the 10 day EMA, holding the move. We will wait for CNI to complete the test, and when it breaks back upside through the buy point, we enter for a run to near 100.
CHART VIDEO
Volume: 866.372K Avg Volume: 1.026M
BUY POINT: $89.26 Volume=1.2M Target=$99.77 Stop=$86.19
POSITION: CNI OCT 19 2018 90.00 C – (48 delta) &/or Stock

Learn more about our Stock Split Report and how we have made gains of 321% with our powerful stock split plays!
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Chart by StockCharts.com
Please turn on your ability to receive graphics. We are providing you with a detailed chart of this stock. If you are unable to turn on graphics, please CLICK HERE or on the *Read Our Weekend Report Online* link above.

3) IH ALERTS
CX
(Cemex SA–$7.47; +0.08; optionable): Cement
Company Profile
EARNINGS: 10/25/2018
STATUS: Trend reversal. CX peaked in July 2017 and sold through May 2018. At that point it bottomed and recovered into early July where it ran into the down trendline from that prior July peak. It stalled and fell to late July, but earnings were hard as cement (give me a break) and CX surged through its down trendline and the 200 day SMA into late July. It tested the earnings move the past week, forming a flag that came back to the 10 day EMA on the Thursday and Friday lows. Friday CX started back up but volume was not there so it was nothing major. The pattern, however, has set up (get it? Cement. Set up) and if CX makes the break higher and shows some volume. we are in for more of the trend reversal breakout move.
CHART VIDEO
Volume: 2.681M Avg Volume: 7.335M
BUY POINT: $7.56 Volume=10M Target=$9.52 Stop=$7.06
POSITION: CX OCT 19 2018 7.00 C – (68 delta) &/or Stock

Save $600 per year and enjoy a 2 week trial of our IH Alerts Service!

Chart by StockCharts.com
Please turn on your ability to receive graphics. We are providing you with a detailed chart of this stock. If you are unable to turn on graphics, please CLICK HERE or on the *Read Our Weekend Report Online* link above.

4) SUCCESS TRADING GROUP–by the MarketFN STG Team
TRV
(Travelers Companies Inc.) Company Profile
Our Success Trading Group members scored another winning trade this week when we closed out a position in Travelers Companies Inc. (Ticker: TRV). We currently like Owens-Illinois, Inc. (Ticker: OI) at its current price for new positions.

Our Success Trading Group closed7 years with 0 losses on our Main Trade Table. In fact, we closed 100% winning trades for the calendar years 2016, 2015, 2013, 2012, 2011, 2010 and 2009 (we still have 1 open position from 2017 (all others were winners) and 1 trade that we opened in 2014 was closed as a losing trade). All of these trades are posted on our Main Trade Table for your review during your free membership trial period.
Get Our Next Trade Free – Save $50 per month! Details Here.

Chart by StockCharts.com
Please turn on your ability to receive graphics. We are providing you with a detailed chart of this stock. If you are unable to turn on graphics, please CLICK HERE or on the *Read Our Weekend Report Online* link above.

5) COVERED CALL PLAY
DK
– Delek US Holdings Inc. is currently trading at $50.35. The September $50.00 Calls (DK20180922C00050000) are trading at $3.00. That provides a return of about 6% if DK is above $50.00 on expiration Friday in September.

Company Profile

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