1. Market Summary
Excerpted from Thursday’s paid content of Investment House Daily by Jon Johnson.
Another Surge By Some
– Another surge — by some — as the PHLX Semiconductor Sector (SOX) and Nasdaq 100 move to another gain.
– The economic data are still edging lower.
– Semiconductor companies are indicating that the chip shortage is nearing its end.
– There are still really good setups, but the risk/reward is even more skewed toward risk after Thursday’s session.
– We were watching the action after the jobs report was released to see if a test, a much-needed one, to reset for the next leg, would start.
‘Twas the day before the jobs report, and the market was mixed. There were big winners, such as the SOX, solid winners, such as the Nasdaq and others that were mostly flat to lower, such as small-cap and mid-cap stocks.
We also saw another session of rotation on Wednesday. This time, it came from the surging small-cap and mid-cap stocks to the big-name tech stocks and, again, the semiconductors. The chips have been on a tear ever since a CEO commented in his conference call that he believed the chip shortage was coming to an end as automakers are setting themselves up to ramp up production in late Q4 and Q1 2022.
Qualcomm helped things out with its unexpected earnings surge, and it gapped to a 12.73% gain. Nvidia, Advanced Micro Devices, Applied Materials, Inc., Brooks Automation and Marvell Technology Inc. continued their moves, while the Taiwan Semiconductor Mfg. Co. surged higher and tried to post a breakout of its own. Nice!
NOTE: The figures and information above are from the 11/4 report.
NOTE: The videos are from the 11/3 report.
2. Targets Hit
Here are several completed trades from Investment House Daily, offering insights into our trading strategy and the targets that we have hit this week:
This was a bountiful week, as we continued playing the seasonal move higher that followed the seasonal selling from September to early October. The following are some of the trades we closed during the past week.
Adobe Inc. (NASDAQ: ADBE): 63% gain in the options
Albemarle Corporation (NYSE: ALB): 70% and 156% gains in the options
Advanced Micro Devices, Inc. (NASDAQ: AMD): 111% gain in the options (second position on this run)
Advanced Micro Devices, Inc. (NASDAQ: AMD): 311% gain in the options (first position on this run)
Brooks Automation, Inc. (NASDAQ: BRKS): 131% gain in the options
Coinbase Global Inc. (NASDAQ: COIN): 57% and 78% gains in the options
DigitalOcean Holdings Inc. (NYSE: DOCN): 43% gain in the options
Marvell Technology Inc. (NASDAQ: MRVL): 78% and 118% gains in the options
Matterport Inc. (NASDAQ: MTTR): 22% gain in the stock, 150% gain in the options
New Relic Inc. (NYSE: NEWR): 78% gain in the options
Netflix Inc. (NASDAQ: NFLX): 86% on the options
NVIDIA Corporation (NASDAQ: NVDA): 510% and 535% on 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:
We saw a very strong week, as the seasonal rally off of the seasonal selling really kicked in.
Broadcom Inc. (NASDAQ: AVGO): 50% gain in the options
Certara Inc. (NASDAQ: CERT): 135% gain in the options
Coinbase Global Inc. (NASDAQ: COIN): 76% gain in the options
Salesforce (NYSE: CRM): 102% gain in the options
Eaton Corporation PLC (NYSE: ETN): 69% gain in the options
Genesis Energy, L.P. (NYSE: GEL): 76.9% gain in the options
Nordstrom, Inc. (NYSE: JWN): 81% gain in the options
Reliance Steel & Aluminum Co. (NYSE: RS): 66% and 85% gains in the options
Suncor Energy Inc. (NYSE: SU): 134% gain in the options
Here are two completed trades from the Success Trading Group, offering insights into our trading strategy and the targets that we have hit this week:
Nordstrom, Inc. (NYSE: JWN): JWN set up a double-bottom-with-handle pattern after close to a year of going nowhere in a specific range. The pattern that formed at the bottom of the range was a good opportunity to make some money. In addition, retail, overall, has been stirring and bouncing. This pattern indicated that JWN was ready to follow.
JWN formed the handle from mid-October, sliding laterally along the 50-day moving average (MA). On Nov. 1, JWN showed signs of life as it cracked the 50-day MA upside. During the next session, JWN continued the move. So, we bought some stock for $30.06.
At the end of the day, JWN closed at $30.71. During the next session, JWN gapped higher and rallied nicely through the 180-day MA. It started to peak the intraday move and stalled just below $32. We sold the position for $31.41 and banked a 4.49% gain.
We also banked a gain in the following play:
Matterport Inc. (NASDAQ: MTTR): 7.53% gain in the stock. We entered and exited the position in just one session.
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
Aersale Corp. (NASDAQ: ASLE) — Aersale Corp. is currently trading at $22.64. The Nov. 19 $25 Calls (ASLE20211119C00025000) are trading at $1.90. That provides a return of about 22% if ASLE is above $25 by the expiration.