1. Market Summary
Excerpted from Thursday’s paid content of Investment House Daily.
The Threat of War is Imminent
– Imminent war is back on, stocks back off.
– The economic data remain weaker, Goldman Sachs finally admits that the data are weakening. Day-to-day volatility continues, but at this juncture, it is trending lower.
– Oil is tired, despite the news. Gold surges and crosses $1,900.
– The U.S. Secretary of State is scheduled to meet the Russian minister next week. All must be well.
Ah, volatility. Once again, we saw a low to high move one day being met with a bludgeoning the next. With the Fed turning to tightening, as well as inflation, slowing economics and a potential war, what goes up definitely goes down.
War drums dragged stocks lower from early on, as reports from Ukraine regarding artillery shelling ramped up the “imminent attack” talk once again. This was true even though the reports said it was a Ukrainian-government aligned group that fired upon the rebels. However, they were poor shots. It has been said that a shell hit a kindergarten building.
NOTE: The figures and information above are from the 2/17 report.
NOTE: The videos are from the 2/16 report.
2. Targets Hit
Here is one completed trade from Investment House Daily, offering insights into our trading strategy and the target that we have hit this week:
Marathon Oil Corporation (NYSE: MRO): Took a 46% gain in the options.
Here are several completed trade from Technical Trader Alert, offering insights into our trading strategy and the targets that we have hit this week:
FedEx Corporation (NYSE: FDX): This was a classic rollover action. FDX set up a three-month head-and-shoulders pattern from November to early February. After showing a lot of volatility from mid-January, FDX broke the 50-day moving average (MA), worked laterally and then gapped up over the 50-day MA to start the month of February. This was a great recovery!
Then, a test back to the 50-day MA just kept going and eventually broke back below the 50-day MA. That was followed by a one-two-three bear flat test of the 50-day MA. Then, the doji on Feb. 9 tapped the 50-day exponential moving average (EMA) and then reversed. We liked the setup for the above reasons. In addition, however, the upside gap from mid-October, which remained unfilled, was a great target to shoot for.
We put FDX on the report, and on Feb. 10, FDX continued lower off of that doji below its resistance. That was our entry signal, and we moved in. We bought April $240 put options for $12.75. This was nice timing, as the stock fell away from that test and bombed lower on Feb. 11. It continued lower on Monday, tried a modest bounce on Tuesday and rolled back over on Wednesday with a downside gap. It continued lower on Thursday and eventually filled that gap.
We issued an alert to sell half of the options for $19.90 in order to bank a 56% gain. We will see if FDX continues down to the early October low below $220, as that would produce a very nice gain.
We also took gains this week in the following positions:
Freeport-McMoRan Inc. (NYSE: FCX): Took the rest of the 77% gain in the options.
Halliburton Company (NYSE: HAL): Took the rest of a 74% gain in the options.
Newmont Corporation (NYSE: NEM): Took half of the 60% gain in the options.
Valero Energy Corporation (NYSE: VLO): Took a 58% gain in the options.
Here is one completed trade from Success Trading Group, offering insights into our trading strategy and the target that we have hit this week:
HollyFrontier Corp. (NYSE: HFC): Took a solid 5.27% 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
Trade Desk Inc. (NASDAQ: TTD) — The Trade Desk Inc. is currently trading at $79.41. The March 18 $80 Calls (TTD20220318C00080000) are trading at $5.85. That provides a return of about 9% if TTD is above $80 by the expiration.