Weekender for 7/21
1. Market Summary
- PHLX Semiconductor Sector (SOX) gets the honorary upside index for the day.
- DJ30 tumbles much of the Wednesday move, but still over the 38% Fibonacci retracement, as are other key indices
- Economic data remain mixed but trending lower
- Politics distracting much of the attention from markets
- Ford likes electric vehicles (EVs) so much it is transitioning a plant to large trucks from EVs
- The Wednesday/Thursday fade already setting up some really good-looking indices waiting for the worm to turn back upside.
Thursday the selling continued and it continued across the majority of the market. As with Wednesday, there was upside, but this time not DJ30. The Dow dumped 533 points, giving up 200 of the Wednesday gain and close to leading the market lower. That honor befell the Russell 2000, with DJ20, the transports, right on their heels. Seems they have relapsed into old habits.
NOTE: The figures and facts above are from the 7/18 report.
MARKET VIDEO
NOTE: The video is from the 7/17 report.
2. Targets Hit
Investment House Daily:
With expiration approaching and the market starting to show some overbought volatility, it was another busy week of taking gains as stocks surged, sold, rebounded — lots of activity in different groups as the rotation hit a higher gear. Below are some of the gains we banked.
Amkor Technology, Inc. (AMKR): 49.7% gain in the options
bluebird bio Inc. (NASDAQ: BLUE): 20.54% gain in the stock
Harmony Gold Mining Company Ltd. (NYSE: HMY): 35.28% gain in the stock, 145% gain in the options
Maxlinear Inc. (NASDAQ: MXL): 20.9% gain in the stock, 110% gain in the options
Omeros Corp. (NASDAQ: OMER): 11.11% gain and 19.3% gain in the stock
Ross Stores Inc. (NASDAQ: ROST): 60% gain in the options
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Technical Trader:
As the big techs started to stumble, we banked more gain in those ahead of the drop, but we also scored profits on financials and good old gold.
Barrick Gold Corp. (NYSE: GOLD): 69.4% gain in the options
Kulicke and Soffa Industries Inc. (NASDAQ: KLIC): 22% gain in the options
NXP Semiconductors NV (NASDAQ: NXPI): 32% gain in the options
Morgan Stanley (MS): 78.07% gain in the options
Rapid Stock Trader:
Our method of grabbing gains on stocks coming off downtrends again performed well the past week, as many of the small and mid-cap stocks were left behind in the “Big Four” index run higher led by a few large-caps. When the rotation came, the stocks “turning the corner” provided us plenty of opportunity and plenty of profits in short order.
Arbutus Biopharma Corp. (NASDAQ: ABUS): 8.24% gain in the stock
bluebird bio Inc. (NASDAQ: BLUE): 18.75% gain in the stock
Maxlinear Inc. (NASDAQ: MXL): 10.48% gain in the stock
Omeros Corp. (NASDAQ: OMER): 19.14% gain in the stock
3. Covered Call Options Play
Uber Technologies Inc. (UBER) — Uber Technologies Inc. is currently trading at $68.62. The August 2024 $69 calls (UBER20240800C00069000) are currently trading at $3.85.
