Rocket Equities & Options Report 04-12-21
Monday Report - April 12th, 2021
Markets have started Monday trading slightly lower, with yields somewhat flat at 1.67% for the 10 year note. We get banks earnings kicking things off this week, and CPI data tomorrow will be something we'll be watching as well.
CGC is trading at $27.42. We bought CGC at $31.68 and got stopped out last week at $28.79 for a $2.89 or 9.12% loss. CGC pulled back Thursday, April 8th with volume, and is trading lower again today down by 5.4%. CGC is looking to test the low from its gap in early January at $25.85. Cannabis stocks are highly volatile right now as the market tries to figure out what multiples are appropriate for an industry still dealing with many legal obstacles in the years to come. We will look to get back in this stock or another cannabis equity, as the who industry seems poised to trade higher in the near future.
DIS is trading at $185.83. We bought DIS at $118.63. DIS is trading just off its all-time high as the market waits movie theaters and amusement parks to again reach capacity, which is hopefully not too far in the distant future. Movie theaters still have a few months until showings start delivering thriving crowds this summer. We want to see Disney hold the $181 price area, where it has show some support recently since its December 31st high of $183.40.
CRM is trading at $228.50. We bought CRM at $215.35. CRM charged higher last week in a big way, and is now up about 12% over just the last 10 trading days. We want to see CRM get above the $230.50 price point, which correlates to the high from Feb 26th following their last earnings announcement, with strength. It made it to $231.31 Friday, and has pulled slightly back under that price point today.
WMT is trading at $139.86. We bought WMT at $140.91. WMT looks to be consolidating near the lower price point of the gap from February of earlier this year. It is now also trading just above its wide bar from its breakout area on August 27th, which traded almost 40 million shares. WMT is perfectly positioned to benefit from the stimulus bill, while providing some exciting growth prospects. Next stop for WMT is $144.50, which will close the gap from February. WMT also has a dividend yield of 1.57% right now at this price level.
MCD is trading at $230.95. We bought MCD at $216.91. MCD traded to new all-time highs last week reaching $232.81. MCD is now in an ABC up formation which will take it up to $255.76. MCD passed its B point last week with 14+ million shares traded on a weekly basis, vs. 10.5M and 9.5M at its B point back in October of last year. MCD has a dividend yield of about 2.23% right now at this price level.
UBER is trading at $59.75. We bought UBER at $31.50. UBER gapped higher today on news that its ride hailing business had its best month since March of 2020.
"Uber said its mobility segment, or ride-hailing business, posted its best month since March 2020, with an annualized run rate of $30 billion. That was up 9% from a month earlier. Its delivery unit reached a record annual run rate of $52 billion in March, more than doubling from the previous year." - CNBC
As I stated a couple weeks back in a previous letter... "Uber's food delivery business may take a bit of a short-term hit as we overcome COVID, but their ride sharing business is about to explode and the chart is pushing all time highs rightfully so. Next stop for Uber is its high of $64.05."
Earnings season kicks off this week in a big way with the banks. We also get CPI data tomorrow, which will be especially important to watch considering the poor yearly comps it is going against from March of 2020, which all estimations indicate will result in a 2%+ inflation reading.
Companies reporting earnings that are on our radar this week:
Tuesday: Charles Schwab (SCHW) before the market open - they are a sponsor of TFNN.
Wednesday: JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Bed Bath & Beyond (BBBY) before the market open.
Thursday: Citigroup (C), BlackRock (BLK), PepsiCo (PEP), Delta (DAL), Rite Aid (RAD) before the market open. Alcoa (AA) after the close.
Friday: State Street (STT), Morgan Stanley (MS), Citizens Financial Group (CFG), Ally Financial (ALLY) before the market open.
Stay tuned for updates!
CGC is trading at $27.42. We bought CGC at $31.68 and got stopped out last week at $28.79 for a $2.89 or 9.12% loss. CGC pulled back Thursday, April 8th with volume, and is trading lower again today down by 5.4%. CGC is looking to test the low from its gap in early January at $25.85. Cannabis stocks are highly volatile right now as the market tries to figure out what multiples are appropriate for an industry still dealing with many legal obstacles in the years to come. We will look to get back in this stock or another cannabis equity, as the who industry seems poised to trade higher in the near future.
DIS is trading at $185.83. We bought DIS at $118.63. DIS is trading just off its all-time high as the market waits movie theaters and amusement parks to again reach capacity, which is hopefully not too far in the distant future. Movie theaters still have a few months until showings start delivering thriving crowds this summer. We want to see Disney hold the $181 price area, where it has show some support recently since its December 31st high of $183.40.
CRM is trading at $228.50. We bought CRM at $215.35. CRM charged higher last week in a big way, and is now up about 12% over just the last 10 trading days. We want to see CRM get above the $230.50 price point, which correlates to the high from Feb 26th following their last earnings announcement, with strength. It made it to $231.31 Friday, and has pulled slightly back under that price point today.
WMT is trading at $139.86. We bought WMT at $140.91. WMT looks to be consolidating near the lower price point of the gap from February of earlier this year. It is now also trading just above its wide bar from its breakout area on August 27th, which traded almost 40 million shares. WMT is perfectly positioned to benefit from the stimulus bill, while providing some exciting growth prospects. Next stop for WMT is $144.50, which will close the gap from February. WMT also has a dividend yield of 1.57% right now at this price level.
MCD is trading at $230.95. We bought MCD at $216.91. MCD traded to new all-time highs last week reaching $232.81. MCD is now in an ABC up formation which will take it up to $255.76. MCD passed its B point last week with 14+ million shares traded on a weekly basis, vs. 10.5M and 9.5M at its B point back in October of last year. MCD has a dividend yield of about 2.23% right now at this price level.
UBER is trading at $59.75. We bought UBER at $31.50. UBER gapped higher today on news that its ride hailing business had its best month since March of 2020.
"Uber said its mobility segment, or ride-hailing business, posted its best month since March 2020, with an annualized run rate of $30 billion. That was up 9% from a month earlier. Its delivery unit reached a record annual run rate of $52 billion in March, more than doubling from the previous year." - CNBC
As I stated a couple weeks back in a previous letter... "Uber's food delivery business may take a bit of a short-term hit as we overcome COVID, but their ride sharing business is about to explode and the chart is pushing all time highs rightfully so. Next stop for Uber is its high of $64.05."
Earnings season kicks off this week in a big way with the banks. We also get CPI data tomorrow, which will be especially important to watch considering the poor yearly comps it is going against from March of 2020, which all estimations indicate will result in a 2%+ inflation reading.
Companies reporting earnings that are on our radar this week:
Tuesday: Charles Schwab (SCHW) before the market open - they are a sponsor of TFNN.
Wednesday: JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Bed Bath & Beyond (BBBY) before the market open.
Thursday: Citigroup (C), BlackRock (BLK), PepsiCo (PEP), Delta (DAL), Rite Aid (RAD) before the market open. Alcoa (AA) after the close.
Friday: State Street (STT), Morgan Stanley (MS), Citizens Financial Group (CFG), Ally Financial (ALLY) before the market open.
Stay tuned for updates!
Gold - $1695-$1700 is support
10-Year Note Daily Price Chart
10 Year Note weekly chart back to the highs from 2019
Options Trades:
None
Short Term portfolio:
None active
Long Term portfolio:
We bought CGC at $31.68 and got stopped out last week at $28.79 for a $2.89 or 9.12% profit. CGC is trading at $27.39.wmt
Long half position in WMT at $140.91. WMT is trading at $139.74. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $228.47. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $185.88. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $59.47. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $230.81. Stop is $189.50.
None
Short Term portfolio:
None active
Long Term portfolio:
We bought CGC at $31.68 and got stopped out last week at $28.79 for a $2.89 or 9.12% profit. CGC is trading at $27.39.wmt
Long half position in WMT at $140.91. WMT is trading at $139.74. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $228.47. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $185.88. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $59.47. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $230.81. Stop is $189.50.
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