Hoping everyone enjoyed the long 3-Day weekend after a tremendous week of BREXIT gaining. Thanks to those members who took time out of the weekend to do 1-on-1 calls and work on some setups and strategies moving forward into Q2 earnings season and beyond. I know that 2 of you are going to complete the 32Trades Plan this year and have 7-figure accounts and would be willing to bet that the rest of you on or starting the plan will have 7-figure accounts by the end of 2017.
Because of the long weekend, few catalysts were out Friday or prior to later this morning so the list continues to be the core four #OnWatch:
- SPRN 0.41
- LOTE 0.0063
- DAKP 0.07
- RITT 0.09
SPRN we know is being promoted by WallStGiants, the same group that ran BPSR in February up and over $1. Volume has yet to really catch on which makes total sense having just ended July 4 weekend, but as the WRIT promotion by the APS group proved, they still work if and when run correctly.
LOTE is still a sleeper of sorts even though it hit a 52WK Hi on Friday and hasn’t yet seen volume exceed $20K in a day. The details have been posted about the NV SOS reinstatement and the due to be announced website and business model which means if you have shares, you look good, if you are looking to get in, “try” and look for 3’s or less.
DAKP and RITT are both Nasdaq Delisters from late last week. While RITT has the more favorable share structure of the two, DAKP has the better sector boomage being in the oil industry. Neither delisted due to bankruptcy filings which is good news, but both, at their 52Wk Lows, are still sensitive to getting some action thrown their way for a double or better play.
We had an amazing run last week with SPY from 198.50 Monday to 210.50 Friday – a $12 run which happens, but not every week. Now we should and are due to see a pullback of sorts and 207.20 is more than likely a number that will appear by no later than Friday this week.
This week, starting tomorrow, is full of JOBS related reports and the previous FOMC meeting minutes which, although we already heard the highlights, detail their reasoning behind the comments made. With yesterday being a holiday, ES Futures actually looked quite good, peaking at 2104.75, and using Friday’s close as a support line for most of the session until the EU closed. Today is due to begin with a much different sentiment.
A pullback this week on ES Futures to the 2062 support line (SPY 205) would be a superb level to look for a CALLS position 1-2 weeks out being we’re heading into Q2 earnings season and the banks and financials are first to report. Note they all but 1 or 2 passed their recent stress tests and announced share buybacks and/or increased dividends which should indicate they will be beating earnings. Yes they are getting bullied some due to the fall of the British Pound, but the U.S. Dollar strength is likely to compensate for that.
As for now, Oil is getting hammered, -1.37 to 47.62 which makes a bit of sense considering the bombings which took place this weekend, one of which was near the U.S. Consulates office in Saudi Arabia.
TSLA likely won’t be a sponsor for any upcoming Harry Potter sequels after the news that the driver of that deadly crash using auto pilot on the Florida highway in May was watching a Harry Potter movie on a portable DVD player when it happened. The details of the 2 month old investigation trickled out Friday and sent TSLA shares up over $12 from 206 – 218 before coming down to a 216.50 close.
TSLA decided to screw up the fireworks this weekend by announcing ” Due to “extreme production ramp” & ordered vehicles “still on trucks and ship”, its 14,370 Q2 deliveries were lower than expected” and “it produced 18,345 vehicles in Q2; sees output hitting 2,200 vehicles per week in Q3 and 2,400 per week in Q4.”
They did come out and say that “Expects to produce & deliver about 50,000 vehicles in second half of 2016, which is equal to all of 2015’s production & deliveries”, but first prints this morning have TSLA shares trading at 207, -11.25 from Friday’s 218.24 HOD. Long yes, but lets see if 205 can get bounced off before looking 2 weeks out.
FB – Needs to break and close above 115 and get out of this channel
AAPL – After 96.7 is reclaimed, focus can then be given to 98.50
NFLX – Why does 92 seem “probable” this week?
CMG – 400 again but when, this week or next?
AAL – Still below $30, this is a great one for a LONG flight
13F Filings will be flowing this week with updates of major moves taken place by many of the greatest Hedge Funds on Wall Street. We’ve seen these major catalysts for pops and drops so these updates will be posted in the new chat room as and when they are available.
I’m going to trade…
Pretty much nothing as of now. I’d like to see what the first 30 minutes of trading looks like before thinking about getting into something. If I had a gun to my head and had to make a trade at the bell, I’d probably go with SPY 209 PUTS and/or VXX 14 CALLS and play it safe since 207, even 205 looks more likely to happen before 210 does.
However, I am not letting two major facts lead me into being a PERMA BEAR after this week of JOBS reports:
- June 28th and 29th were consecutive 90% up volume days on the NYSE. This has only occurred 7 times in the past 50 years and forward returns are extremely bullish; and
- We are currently entering the two strongest consecutive months during election years, with average gains over the 2 months of 5.1%
All Time Highs This Summer