Weekender for 6/18
1. Market Summary
Market Starts Soft
- Market starts soft, edges higher after ostensibly stronger data, then surges.
- Retail sales top expectations, and it is not all inflation.
- Regional manufacturing not as bad as feared. Not good, just not as bad.
- Jobless claims post another solid increase.
- China numbers still discouraging … by China’s standards.
- United States dollar continues its reserve currency status erosion.
- Bank Term Funding Program (BTFP) borrowing up again, at a new record, as banks are using it to offset prior low interest environment investments.
- Transports rushing higher to try and support DJ30’s move.
- Long weekend ahead, stocks up solidly, perhaps some profit taking.
- Still looking for entries as the market action remains solid.
Hotter than expected retail sales on top of a more hawkish than expected Federal Open Market Committee (FOMC) did not hurt stocks. Indeed, futures were lower then when the data was released, but afterward rallied off the lows. When the session opened, stocks jumped higher to midday, took a 1.5 hour pause, then surged through the penultimate hour. The last hour saw some fading, but the indices mostly closed with solid gains, DJ20 leading the way yet again. The PHLX Semiconductor Sector (SOX), after a week of strong upside moves, lagged.
NOTE: The figures and information above are from the 6/15 report.
MARKET SUMMARY
TECHNICAL SUMMARY
NEXT SESSION
NOTE: The videos are from the 6/14 report.
P.S. I am pleased to announce that I will be speaking at the next Wealth365 Summit. This is the largest online wealth summit in the world, and the event is from July 10 – 15. There are 60+ speakers presenting that week, and I will be one of the speakers for the event. Click here to learn more and register.
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:
With the FOMC interest rate decision coming this week, we were ready for a continued move higher into the result, giving us an opportunity to bank some gains in stocks that moved well. As it turned out, we were able to bank gains both before and after the meeting, as the market found the “skip” palatable enough.
We banked gains in the following trades:
C3.ai Inc. (NYSE: AI): 20.9% gain in the stock, 59.7% gain in the options
Geron Corp. (NASDAQ: GERN): 26% gain in the stock
NXP Semiconductors NV (NASDAQ: NXPI): 102% gain in the options
Terex Corp. (NYSE: TEX): 102% gain in the options
Uber Technologies Inc. (NYSE: UBER): 76% gain in the options
ZoomInfo Technologies Inc. (NASDAQ: ZI): 16.5% gain in the stock, 67% gain in the options
Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!
Technical Trader:
The artificial intelligence (AI) stocks continued to win for us, but we also banked gains in the “hard” stocks that we saw form up and make breakouts. You cannot forget the consumer — even with massive credit card debt loads, retail sales were higher and consumer-related stocks were moving higher as well. With the FOMC decision and the good run, we took some gains.
C3.ai Inc. (NYSE: AI): AI: 59.7% gain in the options
Caterpillar Inc. (NYSE: CAT): 70% gain in the options
DoorDash Inc. (NYSE: DASH): 35.4% gain in the options
Microchip Technology Inc. (NASDAQ: MCHP): 48% gain in the options
Netflix Inc. (NASDAQ: NFLX): 197% gain in the options
Nucor Corporation (NYSE: NUE): 48% gain in the options
ZoomInfo Technologies Inc. (NASDAQ: ZI): 67% gain in the options
Receive a risk-free trial to Technical Trader and save 50% by clicking here now!
3. Covered Call Options Play
Option Care Health (NASDAQ: OPCH) — Option Care Health is currently trading at $30.46. The July 21 $32.50 calls (OPCH20230721C00032500) are currently trading at $1.85. That provides a return of about 14% if OPCH is above $32.50 by the expiration.
