Invest and Trade Profitably with Jon Johnson

Weekender for 5/8

1. Market Summary

The Dove Flies Into a Shotgun Blast
– The dove flies into a shotgun blast, as harsh reality does indeed return.
– The “Powell Push”gets shoved back down.
– The indices are near 2022 lows, but we are holding out a flicker of hope that support will be found. It will be . . . someday.
– Productivity is horrid, labor costs are surging, exports are horrid, oil imports  are up by 24% and foreclosures are surging. Yes, the economy is “not anywhere near a downturn.”
– Some areas are actually not bad, but each attempt higher of late has undermined all the sectors, even those that are trending higher. The jobs report was due on Friday, but regardless of if it was up or down, few would take solace in the numbers. If it is is too hot, the Fed will continue tightening. If it is too slow, nothing will change in the near term.

As one commentator noted, “Should it be called Sinko’ de Mayo?” This time, the day after the Federal Open Market Committee (FOMC) did in fact trade the opposite of the post-FOMC session trade. 2.7% gains were turned into 3.1% to 5% losses. Those breaks over the 20-day exponential moving average (EMA) and the one over the 50-day EMA (DJ20) gave up as fast as Private Dewey Ox Oxberger (played by John Candy) surrendered to the Russians in the 1980’s movie “Stripes.”

NOTE: The figures and information above are from the 5/5 report.

Watch the Investment House Videos For This Week Here!

NOTE: The videos are from the 5/4 report.

2. Targets Hit

It was a choppy market that had big moves higher and big moves lower. The overall trend, however, was down.  The FOMC tried to throw a wrinkle with “Pushover Powell” saying that a 75 base point hike was not in the cards and that, indeed, a 25 base point would be the more likely choice between the two. The markets loved it… until they didn’t, and that took place during the next session. Below are some gains that we banked in a volatile market over the past week, as we took the middle parts of moves. We did not want to get caught in the reversals that seem to occur during each session.

Here is one completed trade from Investment House Daily, offering insights into our trading strategy and the target that we have hit this week.

JPMorgan Chase & Co. (NYSE: JPM): 35% gain in the put options.

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Here are two completed trade from Technical Traders Alert, offering insights into our trading strategy and the targets that we hit this week:

Goldman Sachs Group Inc. (NYSE: GS): 27% gain in the put options.

HP Inc. (NYSE: HPQ): 57% gain in the call options.

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There was one trade in Rapid Profits Stock Trader this week.

Kosmos Energy Ltd. (NYSE: KOS): 3.8% gain in the stock.

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.

To receive a risk-free trial and save 50%, click here now!

3. Covered Call Options Play

Centennial Resource Development (NASDAQ: CDEV) — Centennial Resource Development is currently trading at $7.89. The May 17 $8 Calls (CDEV20220517C00008000) are trading at $0.35. That provides a return of about 7% if CDEV is above $35 by the expiration.

Learn more about our Covered Call Tables here!

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