Weekender For 4/10
1. Market Summary
Excerpted from Thursday’s paid content of Investment House Daily.
More Downside
– We saw more downside, but then we saw recoveries to dojis across the board.
– Consumer credit explodes again, casting major doubt on the consumer’s ability to sustain the economy.
– Jobless claims are at 1968 lows, but it is not an apples to apples comparison.
– Chips and transportation stocks are doing so badly that they are ready for a relief bounce.
– A down week might have led to some short covering on Friday.
We saw lots of dojis. That is, each index showed a doji with tail on Thursday. To clarify, the large-cap indices showed their second straight dojis while the Russell 2000 and the S&P 400 showed their first ones after a couple of hard downside sessions. Even DJ20 transportation chart showed a doji.
The large-caps could not bounce off of the Wednesday doji, so perhaps this second round of dojis will do the trick. Many stocks sold off early, rebounded in the afternoon session and faded a bit to the close. They are definitely in position after a week of mostly back-filling on the downside. Now, we will see if the bids buy the dip due to “the bear market is over” mindset. Surely, stocks will rebound, right? Right?
NOTE: The figures and information above are from the 4/7 report.
Watch the Investment House Videos For This Week Here!
NOTE: The videos are from the 4/6 report.
2. Targets Hit
In this market, some sectors are trending high and some are trending lower. We are taking advantage of that in Investment House Daily by playing the upside of those trending higher and trading the puts of those that are trending lower.
Bank of America Corp. (NYSE: BAC): 82% gain in the put options.
Dollar General Corp. (NYSE: DG): 78% gain in the call options.
Micron Technology, Inc. (NASDAQ: MU): 35% gain in the put options.
Skyworks Solutions Inc. (NASDAQ: SWKS): 82% gain in the put options.
Terex Corporation (NYSE: TEX): 34% gain in the put options.
Walmart Inc. (NYSE: WMT): 85% gain in the call options.
Olympic Steel, Inc. (NASDAQ: ZEUS): 38% gain in the call options.
Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!
With the market going through a period of volatility, we used this to our advantage with some downside and upside gains in Technical Trader Alert. During periods of volatility, we do not swing for the fences. Instead, we bank solid gains and take what the market gives.
Kroger Co. (NYSE: KR): 60% gain in the call options.
NXP Semiconductors NV (NASDAQ: NXPI): 35% gain in the put options.
Masco Corp. (NYSE: MAS): 59% gain in the put options.
NetApp Inc. (NASDAQ: NTAP): 31% gain in the put options.
QUALCOMM, Inc. (NASDAQ: QCOM): 32% gain in the put options.
Receive a risk-free trial to Technical Trader and save 50% by clicking here now!
There were no trades in the Success Trading Group this week.
Still, 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.
To receive a risk-free trial and save 50%, click here now!
3. Covered Call Options Play
Whiting Petroleum Corp. (NYSE: WLL) — Whiting Petroleum Corp. is currently trading at $78.75. The May 17 $80 Calls (WLL20220500C00080000) are trading at $4.50. That provides a return of about 9% if WLL is above $80 by the expiration.
