Invest and Trade Profitably with Jon Johnson

Weekender for 1/28/2024

1. Market Summary

  • Different session, different focus: tech takes a back seat
  • Buyers and sellers fight again with large intraday swings as this upside leg gets a bit extended
  • The market’s narrow group of leaders a bit overbought, plenty of stocks are not, but they have yet to make moves
  • Q4 gross domestic product (GDP) beats handily. Old timers buying drugs and RV’s?
  • Regional Purchasing Managers Indexes (PMIs) continue to implode
  • Fed ends the Bank Term Funding Program (BTFP) arbitrage, will end the facility March 11
  • Personal Consumption Expenditures (PCE) out premarket, earnings afterhours not faring well, leaders are overbought — a bit of profit taking ahead of the weekend?

A different session, a different focus. Again a switch in daily leadership as the transports, mid-caps, small-caps led the move, though DJ30 and S&P 500 were right up there with the mid-caps. Indeed, when you look at it that way, it was more a lag by the large-cap tech and leadership by any one group.

NOTE: The figures and facts above are from the 1/25 report.



NOTE: The videos are from the 1/24 report.

2. Targets Hit

Investment House Daily:

The continuation of the rally allowed us to bank some gains on positions in early leaders that we saw start the move. If the rally has legs, other groups will join the move. If not, then the leaders will test and try to set the next leg. Either way, we moved into some good plays and banked gains after good moves.

Boston Scientific Corporation (NYSE: BSX): 27% gain in the options

Alphabet Inc Class A (NASDAQ: GOOGL): 45% gain in the options

Microsoft Corp. (NASDAQ: MSFT): 70.4% gain in the options

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Technical Trader:

Early 2024 started shaky, rebounded, but then struggled. Even so, there were stocks that held the line to the upside, managing to hold breaks higher. Those were the stocks we put our money toward, and after some back and forth, we were banking some gains.

Harmony Gold Mining Company Ltd. (NYSE: HMY): 50% gain in the options

Meta Platforms Inc. (NASDAQ: META):  77% gain in the options

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Rapid Profits Stock Trader:

Even with the focus on the mega-cap Nasdaq names to start 2024, other areas provided us with solid gains that the flew under the radar of many investors. That is what we like to do: find the areas that are starting to turn, then playing them for quick gains as they make their breaks upside. These were not in tech, but plain old, basic minerals.

Peabody Energy Corp. (NYSE: BTU): 8.2% gain in the stock

Uranium Energy Corp. (NYSEAMERICAN: UEC): 8.73% gain in the stock

Receive a risk-free trial to Rapid Profits Stock Trader and save 50% by clicking here now!

3. Covered Call Options Play

Pure Storage Inc. (NYSE: PSTG) — Pure Storage Inc. is currently trading at $41.94. The March 15 $42 calls (PSTG20240315C00042000) are currently trading at $2.80. That provides a return of about 7% if PSTG is above $42 by the expiration.

Learn more about our Covered Call Tables here!

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