Weekender for 6/5
1. Market Summary
Stocks Break Higher
– After a 2-day pause, stocks break higher, starting the second leg.
– Less than good economic data, Microsoft warns, but stocks embrace the upside.
– Jobs report ready as Automated Data Processing misses, initial claims back off some, but labor costs surge.
– Good moves from chips, tech and some materials, as some others set up to help push the second leg.
– Jobs is the wildcard: weaker good, stronger good? We will watch how the good patterns and leaders in this bounce perform.
Something of an opposite session Thursday. Wednesday futures were higher, but stocks gave up gains and closed lower. Thursday futures gave up morning gains heading into the open, but stocks caught a bid and closed very nicely higher. Nice new breaks upside to start leg two on this relief move. Nice break . . . heading right into the Friday May Jobs report.
NOTE: The figures and information above are from the 6/2 report.
Watch the Investment House Videos For This Week Here!
NOTE: The videos are from the 6/1 report.
2. Targets Hit
With the first leg of the relief rally continuing during the early half of the week, we were able to bank some nice gains in Investment House Daily by trading stocks that belong to some old and reliable sectors (e.g. oil), as well as newly recovering areas. With good movement, we were able to bank some solid gains, including the ones below:
Albemarle Corporation (NYSE: ALB): 21% gain in the options.
EQT Corporation (NYSE: EQT): 15.5% gain in the stock.
Kosmos Energy Ltd. (NYSE: KOS): 18.8% gain in the stock 85% gain in the options.
ON Semiconductor Corp. (NASDAQ: ON): 27% gain in the options.
Patterson-UTI Energy, Inc. (NASDAQ: PTEN): 12.9% gain in the stock, 66% gain in the options.
Southwestern Energy Company (NYSE: SWN): 25.9% gain in the stock, 101% gain in the options.
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A mix of energy and growth triggered our targets, as the market continued its first leg of the relief move, tested the move and then attempted a second leg higher on Thursday. When that initial relief rally surge started to stall and test, we banked some energy/oil positions that surged and then started to test, some growth as well.
That was simply prudent, given the bear market, given that the relief move started to slow. The relief rally started higher on Thursday, only to have that move thrown back post-jobs report. We will see if the bids return in the new week and . . . the start of summer. Sometimes they call it the summer doldrums, but something tells us this summer, given all the issues facing the economy and markets, won’t be dull.
Helmerich & Payne, Inc. (NYSE: HP): 44% gain in the options.
Lam Research Corporation (NASDAQ: LRCX): 24% gain in the options.
Marathon Oil Corporation (NYSE: MRO): 60% gain in the options.
Suncor Energy Inc. (NYSE: SU): 76% gain in the options.
United States Oil ETF (NYSEARCA: USO): 45% gain in the options.
Exxon Mobil Corp. (NYSE: XOM): 100% gain in the options.
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There were no new trades in the Rapid Profits Stock Trader this week.
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3. Covered Call Options Play
Earthstone Energy Inc. (NYSE: ESTE) — Earthstone Energy Inc. is currently trading at $19.60. The June 17 $20 Calls (ESTE20220617C00020000) are trading at $0.75. That provides a return of about 7% if ESTE is above $20 by the expiration.
