Invest and Trade Profitably with Jon Johnson

Weekender for 8/28

Special Announcement from the Publisher
We are excited to announce the launch of the Eagle Investing Network YouTube Channel.  Lots of great videos to help you navigate the markets and become a better investor and trader.  Click here to check it out — and be sure to subscribe, so you don’t miss any new videos, as we will post them at least weekly.


1. Market Summary

Stocks Modest Early

– Stocks modest early, then catch that expected afternoon bid ahead of Powell’s Jackson Hole address
– Q2 GDP not as bad on the second iteration, but PCE surges to a post-1981 high
– Stocks surge back upside, but frankly the commodities side looks stronger, steadier.
– 2/10 year bond inversion narrowed but now is bouncing back wider
– Personal spending, income, PCE premarket — stronger confirms Powell’s position, but after saying the FFR rate is at neutral, just what is his position?
– We will play off the Powell reaction as there are upside and downside setups at a key point in the bear market rally.

We expected an upside drag into the Friday Powell address at Jackson Hole, and Thursday delivered. Higher in the premarket, the higher open sold into the European close, but from there stocks double bottomed in the early afternoon and rallied to session highs into the close.

W3BX Las Vegas Conference!

I’m excited to announce that I’ll be speaking at the W3BX conference October 10-13 in Las Vegas.  Join some of the biggest names in the industry, including my colleagues Bryan Perry, Jim Woods and our publisher Roger Michalski, to learn more about investing in blockchain, cryptos, NFTs, Metaverse, Mining and all things Web Three.

The Web Three sector is expected to grow from $3.2B to $81.5B by 2030.  The more you know about it, the more potential money you can make from this explosion.

Click here now to learn more about the conference and be sure to enter the code “EAGLE” when you register to save 20%.  I’ll see you in Vegas!

NOTE: The figures and information above are from the 8/25 report.

Watch the Investment House Videos For This Week Here!

NOTE: The videos are from the 8/24 report.

2. Targets Hit

EQT Corporation (NYSE: EQT): We love playing EQT in Investment House Daily.  It sets up nice entries, it delivers on the patterns.  We saw this occurring again in early August as EQT faded back toward the 50-day moving average (MA) to test a nice rally in July after a double bottom. The fade was forming a handle to the overall double bottom, making it a great entry when EQT broke back upside.

Accordingly, EQT went on the report, and on Aug. 9, when EQT broke higher off the 50-day MA, we were ready. We issued the alert to enter the stock at $43.34 and the October $43 call options at $4.89. EQT was just a hair volatile after that, but it held the 10-day exponential moving average (EMA) nicely as it put in a solid if less then exciting move.

It gapped higher Aug. 12, tested on Aug. 15, then again gapped higher Aug. 16. From there, the volatility died off and EQT moved steadily higher into this past week. On Aug. 23, EQT gapped higher, matching the June prior peak.

It surged past that peak. Then, it started to backtrack. After a solid 10 day run, it moved up to a prior all-time high, moved through it and started to backtrack. Time to bank some gains. We issued the alert to sell the stock at $50.68 and a 16.9% gain and the options for $9.60 and a 95% gain.

We also sold the following position:

Comstock Resources Inc. (NYSE: CRK): 61% gain in the options.

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Trex Company Inc. (NYSE: TREX): The housing market is an interesting mix right now. All the data for housing has moved from bad to worse. Homebuilders, however, keep hanging in. The materials used in home building are a mixed bag.

Thus, when we saw TREX gap lower in the second week of August, gapping through the 50-day MA, we put it on the watchlist to keep an eye on the test of the gap to see if it presented an opportunity to make money.

TREX bounced up to the 50-day MA in two sessions. Once there, however, it threw a big tombstone doji on the candlestick chart.  We became very interested in a downside play that continued the gap lower. TREX bumped the 50-day MA for another two days, then gapped lower on Aug. 16.

That was our entry signal, and we issued an entry alert in Technical Trader Alert for October $60 put options at $5.90. From there, it was all downhill — for TREX, not our position.

TREX gapped lower the next session, paused the following session, then gapped lower again. On Aug. 22, TREX hit the June low, our initial target. We issued the alert to sell half the position at $9.77 for a 65% gain.  TREX continued lower below the June lows.  Great.  Then TREX started to firm. It started to rebound, and on Aug. 25 we issued the alert to sell the rest of the position for $10.20 and a 72% gain.

We also took a gain this week in the following position:

Archer-Daniels-Midland Co. (NYSE: ADM): 67.5% gain in the options.

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Kosmos Energy Ltd. (NYSE: KOS): Energy stocks led much of the year then fell into bases, as they needed to consolidate very good moves.  Many of the smaller-caps set up these good bases and thus that had us looking at entries to catch the moves as they rebounded to build the right side of the new bases.

KOS showed this same action as it put in its base. It was bouncing around the 50-day MA, and we were looking for a definitive move over the 50-day to enter.

That move came on Aug. 18 with a gap over the 50-day MAs.  We issued the alert to enter at $6.65. After such a big move, KOS added just a bit the next session, then tested Monday, falling back to the 50-day MA before rebounding to near flat.

After that last shakeout, KOS gapped upside Tuesday.  On Aug. 25, KOS surged to a higher recovery high but then started to back off.  That was at our target, and the price action told you to take some gains. Accordingly, we issued the alert to sell at $7.21 for an 8.4% gain.

We also took gains this week in the following positions:

Murphy Oil Corporation (NYSE: MUR): 7.95% gain in the stock.

Southwestern Energy Company (NYSE: SWN):  8.67% 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.

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3. Covered Call Options Play

Ameresco Inc. (NYSE: AMRC) — Ameresco Inc. is currently trading at $68.31. The Sept. 16 $70 Calls (AMRC20220916C00070000) are trading at $1.95. That provides a return of about 8% if AMRC is above $70 by the expiration.

Learn more about our Covered Call Tables here!

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