1. Market Summary
Stocks Sell Again
– Stocks sell again, though it was not the ugly start needed. Instead, it stretched the third leg to match the earlier one.
– Indices dip again and rebound. Meanwhile, the fact that volume is higher means that they are in position to bounce.
– The Producer Price Index (PPI) is not as nasty as the Consumer Price Index (CPI), but not great either.
– The Organization of Petroleum Exporting Countries (OPEC) are saying that there is plenty of product, but they can’t get it out.
– Some key sectors are ready to bounce.
Another day, another downside move. But there was a bit of upside — just a bit — in some growth indices. Even so, it was not the textbook session we wanted, i.e.,, more sharp downside on the open. Futures fell after the PPI was revealed, but they were rebounding into the open and continued upside into 11:00 a.m. EST.
At that point they rolled over, sold to session lows in the mid-afternoon and then rebounded sharply into the close. Sure, that was likely short covering, given the sharp drop on the week and some profit-taking late last session. Even so, the market did put in that additional selling, it just took another drop after the early rebound as discussed in the pre-market alert. That left the indices with dojis on the candlestick charts. So, we will see if this intraday extension of the third downside leg off “the March bear market is over” relief rally.
NOTE: The figures and information above are from the 5/12 report.
NOTE: The videos are from the 5/11 report.
2. Targets Hit
With the market volatile but falling on its third leg in the downtrend, we took advantage of some quick downside plays in Investment House Daily. These were ahead of the next relief rally that we figured would start late this week. Below are some trades that we made on that leg lower.
Apple Inc. (NASDAQ: AAPL): 59% gain in the put options.
Meta Platforms Inc. (NASDAQ: FB): 29% gain in the put options.
KB Home (NYSE: KBH): 30% gain in the put options.
Morgan Stanley (NYSE: MS): 20% gain in the put options.
When the market broke lower on its third leg lower from the March rally — the rally that some said was the “end of the bear market,” we were ready to make some downside plays to take advantage of the move before it bottomed to end the week. The following are trades we made on that move in Technical Traders Alert.
Cadence Design Systems Inc. (NASDAQ: CDNS): 49% gain in the put options.
Salesforce (NYSE: CRM): 26% gain in the put options.
JPMorgan Chase & Co. (NYSE: JPM): 39% gain in the put options.
Newmont Corporation (NYSE: NEM): 42% gain in the put options.
There were no trades in Rapid Profits Stock Trader this week.
Still, now is a good time to become a member of Rapid Profits Stock Trader. 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
Callon Petroleum Co. (NYSE: CPE) — Callon Petroleum Co. is currently trading at $44.01. The June 17 $45 Calls (CPE20220617C00045000) are trading at $4.20. That provides a return of about 14% if CPE is above $45 by the expiration.