Weekender for 7/2
1. Market Summary
- Stronger economic data knocks stocks back, but cyclicals recover.
- Techs hold up their gains but have slowed as interest rate pressures, seasonal factors come into play.
- Market focusing on blocking and tackling (economy, earnings) versus hopes of Fed rescues.
- Gross domestic product (GDP) Q1 jumps on the third try as higher exports feature a big revision.
- Bank Term Funding Program (BTFP) usage continues as the “sound and resilient” banking sector continues record usage of the “emergency facility.”
- Cyclicals improve their performance as techs slow, but semiconductors are still important for the market overall.
For the second session the upside confronted an obstacle. On Wednesday, the artificial intelligence (AI) China chip curtailment. On Thursday, it was simply better economic data. Futures were not blowouts, but DJ30 sported +145, Nasdaq +60ish. Stronger GDP (third read from Q1) and fewer jobless claims (even if the four-week average hit a 20-month high) spooked market participants already edgy given the governmental action regarding AI chips and the Fed’s unmitigated hawkish stance. Futures tanked to session lows, gains were disgorged and stocks had to climb out of a pessimism hole.
NOTE: The figures and information above are from the 6/29 report.
MARKET VIDEO
NOTE: The video is from the 6/28 report.
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2. Targets Hit
Investment House Daily:
The market moved in spurts and stalls on the week, with some sectors that rallied and stalled some (tech), while others jumped higher (e.g. industrials, metals). Even so, we banked gains from many sectors, tech included.
Johnson Controls International PLC (NYSE: JCI): 88% gain in the options
Opendoor Technologies Inc. (NASDAQ: OPEN): 35% gain in the stock
Louisiana-Pacific Corp. (NYSE: LPX): 125% and 130% gains in the options
SoundHound AI Inc. (NASDAQ: SOUN): 37% gain in the stock, 68% gain in the options
SoundHound AI Inc. (NASDAQ: SOUN): 50% gain in the stock (separate play)
Uber Technologies Inc. (NYSE: UBER): 34.9% gain in the options
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Technical Trader:
While tech was overall struggling a bit after leading the move higher, some AI stocks still produced well. Moreover, other more industrial plays started making us some money as promising patterns — pretty pictures — started making the moves and turning into profits. Kind of like a butterfly: it turns from a chrysalis to a butterfly to continue the cycle. Or something like that…
Nucor Corporation (NYSE: NUE): 85% gain in the options
SoundHound AI Inc. (NASDAQ: SOUN): 68% gain in the options
Trex Company Inc. (NYSE: TREX): 100% gain in the options
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Rapid Profits Stock Trader:
It is not all big names and glamor when it comes to profits. Rapid Profits Stock Trader turns great profits by looking for stocks that are turning their act around. We love finding stocks that are what I call “turning the corner,” i.e., reversing a trend, often by forming a rounded bottom-type base, whether a cup, double bottom, inverted head and shoulders — all signal accumulation and a change of character. We look for the break, let it test, and if the stock moves up from there, we move in. Two such stocks we banked gains on this week are below.
Opendoor Technologies Inc. (NASDAQ: OPEN): 17.46% gain in the stock.
OPKO Health Inc. (NASDAQ: OPK): 9.84% gain in the stock on a trade initiated on June 29 and closed June 30.
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3. Covered Call Options Play
Vipshop Holdings Ltd. (NASDAQ: VIPS) — Vipshop Holdings Ltd. is currently trading at $16.69. The Aug. 18 $17 calls (VIPS20230818C00017000) are currently trading at $1.00. That provides a return of about 9% if VIPS is above $17 by the expiration.
