Weekender for 12/3
1. Market Summary
- Stocks flip the Wednesday action, sell, then rally late
- Personal Consumption Expenditures (PCE) tame enough, income & spending lower, jobs claims higher, Chicago Purchasing Managers’ Index (PMI) crazily off expectations
- Techs lag as they struggle but in the end hang on.
- New month, two opposite sessions, a Friday rubber match?
Stocks looked set to blow another upside session. Futures were higher with DJ 30 240+ points upside pre-data. PCE came in better overall and in line on the core; looked like another market-friendly data batch. Futures did not react well, however, and while they did not tank, they definitely sold back some gains.
As the bell rang and stocks traded through the morning session, the selling worsened. By the early afternoon, all indices but DJ30 were lower. A modest afternoon bounce helped, but left the indices off. It took a shot straight up in the last half hour to turn the S&P 500 positive and bring the Nasdaq indices back from below the 10-day exponential moving average (EMA).
Opposite action from Wednesday where a gain was blown. Still, not exactly a satisfying finish given the late-hour heroics, but it did manage to salvage near support for many stocks.
NOTE: The figures and facts above are from the 11/30 report.
MARKET VIDEO
Note: The video is from the 11/29 report.
2. Targets Hit
Investment House Daily:
While we continue looking for new patterns to play as December begins and the fourth quarter rally continues, we also want to bank profits when it is logical to do so. We all know that stocks don’t continue straight line in any direction indefinitely, and as they rally, there are resistance points from prior price highs and lows, consolidations, gaps and just plain old gravity — a move can only go so far before it tests.
Thus, we were looking at the moves thus far, resistance, option expirations, upcoming events — all the factors you have to consider in determining to let a position run. You always want to let strong stocks continue to work, but you also want to bank some gains when logical. There are many reasons to do so, but one that really helps most traders is simply taking the pressure off of having solid gains in a position.
Taking some gains at a logical pullback or resistance point takes the mental pressure off and allows you to let a play work and reach its potential. With that in mind, we banked some gains in the following positions:
Advanced Micro Devices, Inc. (NASDAQ: AMD): 84% gain in the options
Coeur Mining Inc. (NYSE: CDE): 21.8% gain in the stock
Crowdstrike Holdings Inc. (NASDAQ: CRWD): 209% gain in the options
Harmony Gold Mining Company Ltd. (NYSE: HMY): 37% gain in the stock
Zscaler Inc. (NASDAQ: ZS): 45% gain in the options
Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!
Technical Trader:
As the December expiration approaches, we were looking at the rally thus far, and the moves our stocks have made. The exercise was to determine if the patterns showed significant more upside near term to justify holding December expiration options as we moved into that expiration month. Given some extended moves on some positions, we opted to bank some gains. The following are some of the positions where we did take some profits:
Adobe Inc. (NASDAQ: ADBE): 37.5% gain in the options
DexCom, Inc. (NASDAQ: DXCM): 159% gain in the options
Harmony Gold Mining Company Ltd. (NYSE: HMY): 175% gain in the options
Steel Dynamics Inc. (NASDAQ: STLD): 45% gain in the options
Workday Inc. (NASDAQ: WDAY): 218% gain in the options
Receive a risk-free trial to Technical Trader and save 50% by clicking here now!
Rapid Profits Stock Trader:
Precious metals enjoyed a strong week once again, and that drove many positions to our targets. At the same time, we were able to capitalize on some growth areas as well, as this current rally has expanded to favor several sectors. We banked gains this week in the following positions:
Coeur Mining Inc. (NYSE: CDE): 21.8% gain in the stock
Gatos Silver Inc. (NYSE: GATO): 13.97% gain in the stock
Riot Platforms Inc. (NASDAQ: RIOT): 9.54% gain in the stock
iShares Silver Trust (NYSEARCA: SLV): 7.89% gain in the stock
Snap Inc. (NYSE: SNAP): 16.67% gain in the stock
Receive a risk-free trial to Rapid Profits Stock Trader and save 50% by clicking here now!
3. Covered Call Options Play
Six Flags Entertainment Corp. (NYSE: SIX) — Six Flags Entertainment Corp. is currently trading at $24.33. The Jan. 19 $25 calls (SIX20240119C00025000) are currently trading at $1.25. That provides a return of about 9% if SIX is above $25 by the expiration.
