Weekender for 6/11
1. Market Summary
Jobless Claims Jump
- Recent leading small-caps, mid-caps, transports pause, big names bounce modestly.
- Jobless claims jump, highest since Halloween 2021.
- Some sentiment turns more cautious given the gains.
A bit of role swapping Thursday, but not any serious moves. The small-caps, mid-caps and transports paused with doji — continuation doji? — while the large-cap indices that led the move higher added some decent upside. PHLX Semiconductor Sector and the Nasdaq twins added over 1% as they rebounded from the Wednesday selling. Pretty much a day to rest and collect for the next session. Or the Federal Open Market Committee (FOMC) rate decision next week.
NOTE: The figures and information above are from the 6/8 report.
MARKET SUMMARY
TECHNICAL SUMMARY
NEXT SESSION
NOTE: The videos are from the 6/7 report.
P.S. I will be hosting a subscribers-only teleforum on June 15 at 1 p.m. EST entitled “The Best Way to Play AI Stocks.” It is free, but you have to register here to be able to attend. Don’t miss out!
P.P.S. Come join me and my Eagle colleagues on an incredible cruise! We set sail on Dec. 4 for 16 days, embarking on a memorable journey that combines fascinating history, vibrant culture and picturesque scenery. Enjoy seminars on the days we are cruising from one destination to another, as well as dinners with members of the Eagle team. Just some of the places we’ll visit are Mexico, Belize, Panama, Ecuador and more! Click here now for all the details.
2. Targets Hit
Investment House Daily:
As the tech rally continued to its sixth week we were banking gains in some of the big names, as well as some of the hot categories. We banked some gains in several positions:
Palantir Technologies Inc. (NYSE: PLTR): The mega-tech, pure artificial intelligence (AI) and those hangers on started to peak a bit this past week. Accordingly, we anticipate a pullback and took some gains in those positions.
PLTR is one that we have played and have already banked some gains. After the bit surged from the second week of May, the move started to flatten out. When we saw this, we banked the rest of the 280% option gain. We left part of the stock position to continue working.
On Wednesday, June 6, PLTR looked as if it was taking off again, gapping upside and surging higher. Then, not. It started to peel back in the classic move you see at the peak of a leg higher, the gap, rally, reversal. When we saw this, we issued the alert to sell the stock position bidding $15.90, giving us a 57% gain on the stock. Now we will let PLTR test and set up the next leg we can use for us to profit.
We took gains in other positions as well:
Amazon.com, Inc. (NASDAQ: AMZN): 70% gain in the options
Geron Corp. (NASDAQ: GERN): 43.75% gain in the stock
Omeros Corporation (NASDAQ: OMER): 27% gain in the stock
Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!
Technical Trader:
Netflix Inc. (NASDAQ: NFLX): While no one was really paying attention, NFLX set up a really nice four-month base from late January into May. We were watching closely as the stock worked in the second half of May. NFLX surged to the prior highs from January and February, but stalled.
It didn’t reverse, however. NFLX backed off to near support at the 10-day exponential moving average (EMA), paused, putting in what looked to be a higher low after testing resistance. We wanted to play the break higher off the 10-day EMA because this setup typically precedes a breakout move.
On May 24, NFLX started higher off the 10-day EMA. That is what we were waiting for and we issued the alert to buy July $365 call options asking for $25.70. NFLX closed higher that session, backed off the next and then on May 26, it made the breakout move. After the weekend, NFLX gapped higher in the new week. From there it was a steady, albeit a bit slow, move higher.
On June 9, however, NFLX reported its password protection plan was being implemented, and the stock gapped higher over $420. That was our initial target, so we issued the alert to sell half the options that were trading on the bid side at $62.00, a very nice 140% gain.
Receive a risk-free trial to Technical Trader and save 50% by clicking here now!
3. Covered Call Options Play
Zymeworks Inc. (NASDAQ: ZYME) — Zymeworks Inc. is currently trading at $8.73. The July 21 $10 calls (ZYME20230721C00010000) are currently trading at $0.35. That provides a return of about 20% if ZYME is above $10 by the expiration.
