Weekender for 10/8
1. Market Summary
- Indices volatile intraday again, hold support again.
- Indices move laterally as stocks work on their patterns.
- Jobless claims lower, trade deficit lower: both suggest stronger data using conventional wisdom, but lower imports mean a weaker consumer.
- Gloom suddenly popular. Big money talks gloom to help seasonal push lower as they buy growth.
- Bank of America says no housing crash when likely one of the buys of a lifetime is coming.
- Searches for “Sell My Airbnb” surge, as that housing market driver starts to roll over.
- Jobs report gives the next data as indices show quite solid staying power after looking ready to roll over early week.
Stocks sold from basically flat line ahead of 8:00 a.m. EST, dropping ahead of the data, rallying back after the data, but then dropping once the opening bell rang. They sold into the European close turning decidedly negative. All indices touched down to the Wednesday lows then reversed, marching straight up through most of the penultimate hour. They slid laterally in the last hour, but that was enough to close almost every index flat or close thereto.
Once again, daily volatility spiced even more by intraday volatility. In the end, stocks basically traded flat ahead of Friday’s jobs report. The Russell 2000 (RUT) actually closed higher as the S&P 400 just missed positive as it faded late.
NOTE: The figures and information above are from the 10/5 report.
MARKET VIDEOS
MARKET SUMMARY
TECHNICAL SUMMARY
NEXT SESSION
NOTE: The videos are from the 10/4 report.
2. Targets Hit
Due to the recent volatility in the market, I decided that it would be better to be safe than sorry and continued to hold our current positions. Watch this space for news regarding my picks as soon as the trading skies clear!
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3. Covered Call Options Play
Abercrombie & Fitch Co. (NYSE: ANF) — Abercrombie & Fitch Co. is currently trading at $54.54. The Nov. 17 $55 calls (ANF20231117C00055000) are currently trading at $3.40. That provides a return of about 8% if ANF is above $55 by the expiration.
