Weekender for 1/7/2024
1. Market Summary
- Day three for 2024 and all the indices were down, but DJ30
- As the first three days of January go, so goes … the January effect?
- Losses are not nearly as bad as Wednesday, but with the early gains and reversals, it was worse than it looked.
- Market in need of leadership. Oil & gas, metals try, but reverse hard
- Jobs report fantasy land continues as Bureau of Labor Statistics (BLS) will again make up 70% of the data.
- Leaders need to start showing up if a January effect rally is going to occur.
Third session 2024 and more of the same: DJ30 higher, everything else lower, but nothing like the pounding on Wednesday that saw the small caps clubbed as if they were in a game of whack-a-mole.
NOTE: The figures and facts above are from the 1/4 report.
MARKET VIDEOS
MARKET SUMMARY
TECHNICAL SUMMARY/NEXT SESSION
NOTE: The videos are from the 1/3 report.
2. Targets Hit
Investment House Daily:
Some of the trends in Q4 started to waiver at year’s end, and that turned into more pressure to start 2024. Never like to see leaders struggle to start a new calendar, even though these stocks had run well and we had already banked excellent gains. We figured we would take the gains, let them test and if they held, we would get some great new entries. If not, well, if the rally was to continue, there would be rotation into new areas and we would initiate positions on them. Thus, we banked more gains and are looking for the groups that are going to lead in Q1.
Arm Holdings PLC – ADR (NASDAQ: ARM): 41.5% gain in the options
ProShares Bitcoin Strategy ETF (NYSEARCA: BITO): 17.7% gain in the stock
Cleveland-Cliffs Inc. (NYSE: CLF): 25.5% gain in the stock
Louisiana-Pacific Corp. (NYSE: LPX): 90.4% gain in the options
Photronics, Inc. (NASDAQ: PLAB): 37.27% gain in the stock
Snap Inc. (NYSE: SNAP): 31.6% gain in the stock, 181% gain in the options
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Technical Trader:
2024 started markets under pressure, not great given many leading stocks started to waffle already just before and after Christmas. We had some nice gains built in, so we banked some gain and was able to defer some taxes into 2025.
Illinois Tool Works Inc. (NYSE: ITW): 54% gain in the options
Masco Corp. (NYSE: MAS): 250% gain in the options
NXP Semiconductors NV (NASDAQ: NXPI): 48% gain in the options
Quanta Services Inc. (NYSE: PWR): 189% gain in the options
Ralph Lauren Corp. (NYSE: RL): 258% gain in the options
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3. Covered Call Options Play
Modine Manufacturing Co. (NYSE: MOD) — Modine Manufacturing Co. is currently trading at $57.97. The Feb. 16 $60 calls (MOD20240216C00060000) are currently trading at $3.70. That provides a return of about 13% if MOD is above $60 by the expiration.
