Rocket Equities & Options Report 03-08-21
Monday Report - March 8th, 2021
Market Volatility continues to be the new normal as the market struggles to figure out the valuations as we come out of COVID and yields have now risen with the 10 Year Note sitting at 1.6%. The VIX has hit at least 30 in 4 of the previous 7 trading days. I don't see this volatility ending any time soon. We have a two way market, which is great for traders of all kinds.
DIS continues to trade higher with strength. News out Friday after the close that Disney Land in California will be able to potentially open April 1st with 15-35% of their capacity, after having been closed for a full year. Disney's next stop is $226 which would complete the large AB = CD formation. Disney has their annual general meeting tomorrow, I don't expect anything dramatic being announced but it's possible considering this event has made headlines in prior years.
CRM traded down to a low of $201.51 last week with lighter volume before bouncing higher, almost reaching a 50% retracement from its entire run from the March lows. We want to see CRM get back above the low made on Feb 26th of $216.34, which had large volume. This correlates closely to the low from December 2nd, which is at $215.63. We want to see CRM accelerate back above both those price points with volume.
WMT pulled back sharply last week. WMT is now back to its breakout area from August 27th, which traded almost 40 million shares. WMT is also back to its 50% retracement from its entire run from the March lows in the market. We will look for WMT to get into its day from August 27th, which is above the $130.90 price point. Keep your stop in place at $125.31. WMT also has a dividend yield of 1.7% right now at this price level.
MCD continues to chop around near the lower end of its consolidation area. We want to see MCD make the run to the higher range of its consolidation with volume. MCD has a dividend yield of about 2.5% right now at this price level.
UBER chopped around last week, catching a bid on the news that LYFT filed with the SEC Tuesday that they had the best week since March, causing them to update their loss to smaller number than expected for the quarter. UBER has pulled back a bit recently on optimism of the market opening back up, potentially hurting their food delivery business. I see this impact overstated right now and expect UBER to accelerate higher as their ride sharing business kicks back into high gear, and their food delivery business is intertwined in our lives even post-COVID. Next stop for Uber is its high of $64.05.
Earnings coming up on our radar:
Monday: Stitch FIX (SFIX) after the market close tonight
Tuesday: Dicks Sporting Goods (DKS) before the bell
Wednesday: Campbell's Soup (CPB), Oracle (ORCL) after the close
Thursday: Docusign (DOCU) after the close
Stay tuned for updates!
DIS continues to trade higher with strength. News out Friday after the close that Disney Land in California will be able to potentially open April 1st with 15-35% of their capacity, after having been closed for a full year. Disney's next stop is $226 which would complete the large AB = CD formation. Disney has their annual general meeting tomorrow, I don't expect anything dramatic being announced but it's possible considering this event has made headlines in prior years.
CRM traded down to a low of $201.51 last week with lighter volume before bouncing higher, almost reaching a 50% retracement from its entire run from the March lows. We want to see CRM get back above the low made on Feb 26th of $216.34, which had large volume. This correlates closely to the low from December 2nd, which is at $215.63. We want to see CRM accelerate back above both those price points with volume.
WMT pulled back sharply last week. WMT is now back to its breakout area from August 27th, which traded almost 40 million shares. WMT is also back to its 50% retracement from its entire run from the March lows in the market. We will look for WMT to get into its day from August 27th, which is above the $130.90 price point. Keep your stop in place at $125.31. WMT also has a dividend yield of 1.7% right now at this price level.
MCD continues to chop around near the lower end of its consolidation area. We want to see MCD make the run to the higher range of its consolidation with volume. MCD has a dividend yield of about 2.5% right now at this price level.
UBER chopped around last week, catching a bid on the news that LYFT filed with the SEC Tuesday that they had the best week since March, causing them to update their loss to smaller number than expected for the quarter. UBER has pulled back a bit recently on optimism of the market opening back up, potentially hurting their food delivery business. I see this impact overstated right now and expect UBER to accelerate higher as their ride sharing business kicks back into high gear, and their food delivery business is intertwined in our lives even post-COVID. Next stop for Uber is its high of $64.05.
Earnings coming up on our radar:
Monday: Stitch FIX (SFIX) after the market close tonight
Tuesday: Dicks Sporting Goods (DKS) before the bell
Wednesday: Campbell's Soup (CPB), Oracle (ORCL) after the close
Thursday: Docusign (DOCU) after the close
Stay tuned for updates!
Options Trades:
None active
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $128.26. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $211.09. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $198.96. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $54.12. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $208.77. Stop is $189.50.
None active
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $128.26. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $211.09. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $198.96. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $54.12. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $208.77. Stop is $189.50.
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