Weekender for 7/9
1. Market Summary
- Stocks start weaker, struggle more with the economic data.
- Recovery starting with the European market close reduces the losses though the stock indices still close lower.
- ADP report shows huge jobs growth … is it undershooting the Bureau of Labor Statistics’s (BLS) monthly work of fiction?
- Thursday action not great but hardly fatal, as most indices hold near support or the next level of support.
- Post-jobs we watch how the market views a strong or weak report and see what good stocks can hold support or perhaps make good moves.
The 10-year yield over 4% (4.04%), the two-year at 5%, the Dallas Fed president overshadowing Bostic’s prior dovish tilt, Services Producer Management Index (PMI)/Institute for Supply Management (ISM) hotter, JOLTS just strange (openings tumble, quits surge). The premarket data piled onto already lower futures and stocks opened lower and sold from there. The question was whether stocks would again find support, and the S&P 500 did so just below 4400 right at 11:00 EST. From there stocks recovered into the close, S&P 500 closing over 4,400, yet no index closed positive.
NOTE: The figures and information above are from the 7/7 report. There is no video this week.
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:
The market showed some back and forth action the past week, as market participants reconciled the varied data with a Fed that is adamantly saying that it will continue battling inflation. Market participants vacillate between concern the Fed will tighten too much to worries the economy may not be as strong as touted. Some reports are stronger, many are weaker.
Then you get the jobs report that is feared to be too hot, given a strong ADP report, only to show the weakness that has crept into labor reports the past few weeks. The market wanted more stimulus, then realized that was not coming (well, that is not entirely true: the Fed’s “emergency” lending program for the “sound and resilient” banks continues record increases each week).
The market view has actually moved back to a more normal good news is good and bad news is bad mentality. Full circle.
Even in that back and forth dynamic, we banked some solid gains on the week as we continue to watch how key indices trade at the June highs.
Louisiana-Pacific Corp. (NYSE: LPX): 75% gain in the options
Transocean Ltd. (NYSE: RIG): 19.1% gain in the stock, 71% gain in the options
TMC the metals company Inc. (NASDAQ: TMC): 61.2% gain in the stock
Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!
Rapid Profits Stock Trader:
TMC the metals company Inc. (NASDAQ: TMC): We love finding stocks that are “turning the corner” after long bases or downtrends. Those turns can lead to solid gains and often provide several opportunities to play the surges higher. TMC is one of those stocks that formed a long, quiet base after hitting a rally peak in February. Very quiet, very range-bound, TMC was forgotten. Then, in June, it started coming to life, moving up through the 200-day simple moving average (SMA) as it starting to “turn the corner.”
We saw TMC testing the break higher, coming back to the 10-day exponential moving average (EMA). We wanted to play the rebound that continued the turn.
On June 27, TMC showed a nice doji with tail at the 10-day EMA. After a breakout move followed by a week-long pullback, that candlestick signal at the 10-day EMA often indicates a new breakout leg is ahead. Sure enough, the next session, TMC broke higher. We issued the alert to enter with the stock price at $1.47 on the ask.
TMC paused the next session and then resumed the move. On June 3, the day before Independence Day, the fireworks started. TMC surged past the June peak, hitting our target. We issued the alert to sell the stock when it was bidding $1.71, banking a solid 15.54% gain in the stock.
We also booked profits in the following plays:
Transocean Ltd. (NYSE: RIG): 13.4% gain in the stock
Oceaneering International, Inc. (NYSE: OII): 9.48% 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
Green Brick Partners Inc. (NYSE: GRBK) — Green Brick Partners Inc. is currently trading at $54.68. The Aug. 18 $55 calls (GRBK20230818C00055000) are currently trading at $3.10. That provides a return of about 7% if GBRK is above $55 by the expiration.
