Weekender for 4/14/2024
1. Market Summary
- Overall Producer Price Index (PPI) year/year jumps, but less than expected. A market that overreacted to the Consumer Price Index (CPI) surges back upside even as the core surges
- Bureau of Labor Statistics (BLS) adjusts higher gasoline prices right out of the picture
- Electricity bills surging as demand surges while new green sources cannot keep up
- Techs, precious metals lead – an odd couple to rebound
- Nasdaq indices surge from the range bottom, PHLX Semiconductor Sector (SOX) angling for an important breakout move
After the CPI, it would be hard for PPI to be received worse without a substantial inflation increase. Inflation is still there and moved up higher, but there was enough mitigation to give the market a “whew” day where the data was not as bad as feared. With that, futures flipped form almost -200 Dow points to positive by the open, followed by a long upside drag the entire session. Tech, the relative strength performed Wednesday, easily led the session while the NYSE large-cap indices, while recovering from the early lows, posted relatively mediocre sessions with the DJ30 remaining slightly, slightly negative.
NOTE: The figures and facts above are from the 4/11 report.
MARKET VIDEOS
MARKET SUMMARY
TECHNICAL SUMMARY/NEXT SESSION
NOTE: The videos are from the 4/10 report.
2. Targets Hit
Investment House Daily:
Precious metals proved our mainstay for the week as we remained well-positioned to play gold’s rise. As a result, we were able to bank sizeable gains, taking partial profits as the plays rallied and hit logical pause points.
Coeur Mining Inc. (NYSE: CDE): 50+% gain in the stock
Harmony Gold Mining Company Ltd. (NYSE: HMY): 106% gain in the stock
McEwen Mining Inc. (NYSE: MUX): 27.7% gain in the stock, 123.5% gain in the options
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Technical Trader:
A definite commodities flavor in the plays for much of the week, though the big techs showed some promise for perhaps a new breakout to come. We let many positions work higher as their rallies continued, but did bank some gains at the initial targets for some plays as they high logical pause points. Some gold, some industrial metals, some energy — a good mix.
Freeport-McMoRan Inc. (NYSE: FCX): 81% gain in the options
Harmony Gold Mining Company Ltd. (NYSE: HMY): 62% gain in the options
Teck Resources Ltd Class B (NYSE: TECK): 65.4% gain in the options
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Rapid Profits Stock Trader:
Dancing with those that are treating us well, e.g. the gold stocks. We banked some more gains in these stocks that were “turning the corner,” but are now market leaders.
Coeur Mining Inc. (NYSE: CDE): 51% gain in the stock
Hecla Mining Company (NYSE: HL): 19.29% gain in the stock
First Majestic Silver Corp. (NYSE: AG): 14.99% gain in the stock
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3. Covered Call Options Play
Perimeter Solutions Sa. (NYSE: PRM) — Perimeter Solutions Sa. is currently trading at $7.45. The May 19 $7.50 calls (PRM20240519C00007500) are currently trading at $0.45. That provides a return of about 10% if PRM is above $7.50 by the expiration.
