1. Market Summary
Excerpted from Thursday’s paid content of Investment House Daily by Jon Johnson.
Stocks Surge Across the Board
– After some sluggish action, stocks surge across the board. The market looked ready to test but only a short dip ensued.
– There are still plenty of issues, but the market does not mind.
– Gross domestic product (GDP) misses, as it posted a sharp falloff from the 6.7% growth in Q2.
– Apple and Amazon post earnings misses, and futures were down but not hammered. Since the big names are getting “missy” on earnings, are they now finally too big?
– There are still some great setups, and that may be all the pullback we get.
The Democrats in Congress met with President Biden today in order to try to salvage the tax-and-spend plan. They have trotted out one tax after another, as they are trying to find ones that a majority will agree to. At the same time, they have to appease the progressive groups with huge spending plans on green stuff, etc.
After the meeting, Speaker Pelosi said that she was going to put it up for a vote within the next week, come hell, progressives or moderates. The market appeared to like that, as all indices moved higher. However, growth stocks were way out in front. What a wonderful session! All must be right in the world.
NOTE: The figures and information above are from the 10/28 report.
NOTE: The videos are from the 10/27 report.
2. Targets Hit
Here are five completed trades from Investment House Daily, offering insights into our trading strategy and the targets that we have hit this week:
NVIDIA Corporation (NASDAQ: NVDA): Classic NVDA. After a rally to a new high in late August, NVDA tested into September and early October. Thus, it followed the seasonal pattern of September selling into an October bottom.
It broke the 50-day moving average (MA) in late September, recovered into early October and stalled along the 500day MA. We saw the setup and put the play on the report in order to play the break back over the 50-day MA to continue the seasonal rally.
Sure enough, on Oct. 14, NVDA broke upside over the 50-day MA with a gap. Since that was our signal, we bought December $215 call options for $13.85.
NVDA put in a solid, if less than exciting, move higher into this week. On Tuesday, however, things got quite a bit more exciting. NVDA gapped upside and touched $250, before starting to stall.
We issued the alert to sell half the position for $36.75 in order to bank a 149% gain. We are letting NVDA test after the gap, as we are looking for a continuation of the move.
We also banked gains in the following positions this week:
Advanced Micro Devices, Inc. (NASDAQ: AMD): 150% gain in the options
DigitalOcean Holdings Inc. (NYSE: DOCN): 92% gain in the options
Netflix Inc. (NASDAQ: NFLX): 103% gain in the options
Vulcan Materials Company (NYSE: VMC): 69% gain in the options
Here are several completed trades from Technical Trader Alert, offering insights into our trading strategy and the targets that we have hit this week:
Certara Inc. (NASDAQ: CERT): We love to play newer issues off of their first bases, and CERT certainly fit the bill. A new issue in December 2020 — okay, so it was not that new — it formed a big cup base from February 2021 into August.
It broke higher and rallied into September and then started to test. CERT put in a classic ABCD consolidation of the August move and faded to to the 50-day MA and the 61% Fibonacci retracement. These have historically been excellent levels for the D point in the ABCD pattern. That triggered — in a good way — a new upside move.
We already had the play on the report, and when the move started on Oct. 12, we bought the December $35 call options for $3.40.
CERT surged during that session and the next. Then, things settled down as CERT started the next phase. This was the “grind out the gains” part of the move, where it steadily and methodically rose up the 10-day exponential moving average. On Monday, Oct, 25, CERT gapped upside to the September highs and hit our initial target.
Since it started to back off after pushing to a new high over $40, we issued an alert to sell half of the position for $5.80 and bank a 70.5% gain.
CERT is pushing steadily higher to end the week, solidifying its breakout to a new high. We anticipate letting the position work higher until this next leg starts indicating a stall. Then, we will bank another half of the position.
We also locked in gains in the following positions:
American Superconductor Corporation (NASDAQ: AMSC): 89% gain in the options
Salesforce (NYSE: CRM): 73% gain in the options
Lowe’s Companies Inc. (NYSE: LOW): 113% gain in the options
Netflix Inc. (NASDAQ: NFLX): 159% gain in the options
Sunrun Inc. (NASDAQ: RUN): 49% gain in the options
Suncor Energy Inc. (NYSE: SU): 73% gain in the options
Here are three completed trades from the Success Trading Group, offering insights into our trading strategy and the targets that we have hit this week:
Fastly Inc. (NYSE: FSLY): Cloud software stocks are continuing to perform, and FSLY is a stock we like to play. We like it because, as it name implies, it moves fast.
We saw FSLY break through key resistance on Oct. 19 and start to test. As soon as the test was over, the plan was to move in during the next surge. After a rather classic one-two-three pullback to the 10-day EMA to test the break over the resistance, FSLY took off upside again.
We were ready and bought the stock for $50.05. FSLY rallied well during that session. On Oct. 26, FSLY gapped higher and rallied to a higher breakout high. It then started to waffle. So, we issued the sell alert to sell the position for $52.56 and generate a 5% gain.
We also took gains this past week in the following positions:
Nov Inc. (NYSE: NOV): 4.1% gain in the stock.
Zeta Global Holdings Corp. (NYSE: ZETA): 5.4% gain in the stock.
Now is a good time to become a member of the Success Trading Group. The system is geared towards bringing you consistent, short-term gains of 5-10% and you can expect four to six trades every month.
3. Covered Call Options Play
Century Casinos Inc. (NASDAQ: CNTY) — Century Casinos Inc. is currently trading at $14.96. The Nov. 19 $15 Calls (CNTY20211119C00015000) are trading at $0.75. That provides a return of about 9% if CNTY is above $15 by the expiration.