Weekender for 3/3/2024
1. Market Summary
- Personal Consumption Expenditures (PCE) tamer year/year, incomes higher, stocks respond upside
- Solid, albeit unspectacular moves higher
- The game: headlines are palatable to algorithms, but the data beneath are anything but positive
- PCE actually shows inflation rebounding, incomes are inflated by establishment jobs numbers, spending flags even with supposed stronger wage growth
- Even with the issues, the headlines gave the market what it wanted, but the moves were not commensurate
- The market action left the rally still problematic to resume, though the indices look well-positioned
The PCE headlines were more than market palatable. Futures that were struggling, the PCE and other data released, futures jumped to the upside. The indices gapped higher then fell back to flat, some negative. Midday the market bottomed and the indices recovered.
NOTE: The figures and facts above are from the 2/29 report.
MARKET VIDEOS
Market Summary
Technical Summary
Next Session
NOTE: The videos are from the 2/28 report.
2. Targets Hit
Investment House Daily:
This past week, the market continued a more or less lateral move after the Nvidia earnings report managed to rescue stocks. We were waiting for the leaders to regroup and start to move higher, as well as watching to see if any new areas could finally produce some breaks higher.
Friday that looked as if it was starting. An interesting aspect of the week turned up while waiting for the breaks to come. Indeed some groups joined in, some we dubbed outsiders such as the cryptos. We were able to bank some gains on them as well as some artificial intelligence (AI) stocks that rejoined the upside. There were also the old standby leaders, as well as just some plain, old economy type of stocks. Below are some gains we banked.
C3.ai Inc. (NYSE: AI): 20% gain in the stock
ProShares Bitcoin Strategy ETF (NYSEARCA: BITO): 35% gain in the stock, 230% gain in the options
Fastenal Co. (NASDAQ: FAST): 82% gain in the options
Netflix Inc. (NASDAQ: NFLX): 51% gain in the options
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Technical Trader:
At Technical Traders Alert, we continued the strategy of playing the big leaders from each group in the market – as well as some promising patterns that show up in other areas, just getting some exposure in the event they make more serious upside breaks. That has paid well in this market that continues to feed on the massive federal spending and the notion all that debt will resolve itself. As I often say, it does not matter what we think, it is what the market does that matters. As noted, that has paid well.
ProShares Bitcoin Strategy ETF (NYSEARCA: BITO): 60% gain in the options
Coinbase Global Inc. (NASDAQ: COIN): 90% gain in the options
Marathon Digital Holdings Inc. (NASDAQ: MARA): 23% gain in the options
Trex Co Inc. (NYSE: TREX): 24% gain in the options
Ulta Beauty Inc. (NASDAQ: ULTA): 138% gain in the options
Wells Fargo & Co. (NYSE: WFC): 150% gain in the options
Receive a risk-free trial to Technical Trader and save 50% by clicking here now!
Rapid Profits Stock Trader:
Playing good old-fashioned stock positions … in perhaps not what are considered old-fashioned sectors, pays off. This past week, we banked some excellent returns in new areas with some simple stock trades.
C3.ai Inc. (NYSE: AI): 12.4% gain in the stock
ProShares Bitcoin Strategy ETF (NYSEARCA: BITO): 35% gain in the stock
Marathon Digital Holdings Inc. (NASDAQ: MARA): 20.6% 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
Limbach Holdings Inc. (NASDAQ: LMB) — Limbach Holdings Inc. is currently trading at $48.24. The March 15 $50 calls (LMB20240315C00050000) are currently trading at $1.90. That provides a return of about 11% if LMB is above $50 by the expiration.
