Weekender for 12/10
1. Market Summary
- Stocks start higher, add to gains, as the indices do what was necessary to hang onto the upside
- Jobless claims not too hot, not too cold
- That time of year: Bank of Japan (BOJ) hints at being tougher on interest rates. Someday.
- Bank Term Funding Program (BTFP) Fed facility usage surges as the arbitrage trade grows
- Nasdaq indices, PHLX Semiconductor Sector (SOX) post very solid recoveries form the Wednesday reversals
- Now up to the jobs report
The dollar was again rocked against the Japanese yen as a BOJ governor commented that … monetary policy would get tougher after year’s end (“handling of monetary policy will get tougher from the end of the year”). Oh my, the BOJ is threatening to get tough again — as it has for a couple of years now only to do the opposite. Action over words, right? That said, the market appears to buy into the “we are going to get tough (someday)” rhetoric. Allowing itself to be deceived near term? Perhaps; sometimes markets do that.
NOTE: The figures and facts above are from the 12/7 report.
MARKET VIDEOS
Market Summary
Technical Summary
Note: The videos are from the 12/6 report.
2. Targets Hit
Investment House Daily:
The market spent two weeks attempting a consolidation of the second leg higher off the October low. As the indices moved laterally, there were a few false starts and some less-than-positive upside action, e.g. gaps higher that were reversed intraday. Nonetheless, our positions performed, and we were able to bank some very solid gains through the week.
Cleveland-Cliffs Inc. (NYSE: CLF): 18.5% gain in the stock, 124% gain in the options
Marathon Digital Holdings Inc. (NASDAQ: MARA): 29.3% gain in the stock, 90.5% gain in the options
Riot Platforms Inc. (NASDAQ: RIOT): 31% gain in the stock, 102% gain in the options
Snap Inc. (NYSE: SNAP): 21.6% gain in the stock, 136.9% gain in the options
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Technical Trader:
The market rally has hit a slow spot in the Q4 rally as market participants digested a ton of data that relates to the Fed’s future actions, economic direction and, of course, earnings. The cool thing about this move is that from a narrow initial grouping of leaders, many sectors have contributed with some leaders or at least stocks that built some quality patterns and setups, then delivered on those patterns. We have reaped the reward of stepping into these new areas as they show the “buy me” moves.
Lululemon Athletica Inc. (NASDAQ: LULU): 121% gain in the options
Masco Corp. (NYSE: MAS): 225% gain in the options
Netflix Inc. (NASDAQ: NFLX): 44.8% gain in the options
Quanta Services Inc. (NYSE: PWR): 95.5% gain in the options
Ralph Lauren Corp. (NYSE: RL): 71% gain in the options
Steel Dynamics Inc. (NASDAQ: STLD): 45.75% gain in the options
Workday Inc. (NASDAQ: WDAY): 263% gain in the options
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Rapid Profits Stock Trader:
The great thing about this rally are the wide range of stocks that are moving as waves of groups make their moves to contribute upside. That gives us some fresh areas to work some plays on stocks that are well-positioned and don’t sport the eye-watering prices of some of the big chips, big Nasdaq names, etc. That mix has provided some great entries and some solid moves.
Some positions we banked:
bluebird bio Inc. (NASDAQ: BLUE): 15.5% gain in a four-day play
Opendoor Technologies Inc. (NASDAQ: OPEN): 9.84% gain in a play that is still working higher for us. We banked half the 9.8% gain, and OPEN has continued higher and we let it work as long as it rallies.
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3. Covered Call Options Play
Metropolitan Bank Holding Corp. (NYSE: MCB) — Metropolitan Bank Holding Corp. is currently trading at $43.97. The Jan. 19 $45 calls (MCB20240119C00045000) are currently trading at $1.25. That provides a return of about 7% if MCB is above $45 by the expiration.
