Rocket Equities & Options Report 05-25-21
Tuesday Report - May 25th, 2021
Markets have started the week off to the upside, with the ES Futures less than 1% from all-time highs made two weeks ago. The upper boundary line of the ES channel could take the market to all-time highs of about 4,300. The VIX continues to decline as markets trade higher, yet the next spike seems like it's always looming. Disney and Uber have had a decent rebound after pulling back. CRM has their earnings this Thursday.
DIS is trading at $174.31. We bought DIS at $118.63. Disney has pulled back right to the .382 of their run from the November lows, and has bounced nicely back above that area. Look for this area to hold support. The next stop for Disney is $183.40, which acted as support, and may now be an area of resistance as we trade up to that level. Disney still has a long way to go to get back to business as normal, with parks and movie theaters still far off their pre-pandemic levels. Over the next 3-6 months look for Disney to accelerate their openings and the stock should begin to recognize that transition.
CRM is trading at $226.99. We bought CRM at $215.35. CRM had a nice sign of strength last Wednesday (May 19th) with higher price and more than 8 million shares traded. Next stop for CRM is the $240 area. CRM reports numbers this Thursday, May 27.
WMT is trading at $141.76. We bought WMT at $140.91. WMT accelerated higher last week on strong earnings, yet pulled back as the market told us all that a lot of that was already factored into the stock price, and it's all about what comes next. WMT jumped above the recent area of resistance we've been talking about, at about the $140 level, and now it will need to show some strength as it looks to trade through the gap area left from their last earnings in February. continues to bump into resistance at about the $140 price point, which correlates to the gap left open from their last earnings announcement. WMT is out with their numbers tomorrow before the open. WMT also has a dividend yield of 1.55% right now at this price level. WMT continues to look strong and well positioned to benefit from stimulus as the country opens back up.
MCD is trading at $231.91. We bought MCD at $216.91. MCD closed yesterday exactly at the previous high from October. MCD is in an ABC up formation which will take it up to $255.76. MCD passed its B point the week of April 5th 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 is consolidating near its B point before trading higher. MCD has a dividend yield of about 2.22% right now at this price level.
UBER is trading at $50.03. Uber has bounced nicely from its recent low of $43.17 just 13 days ago. Uber had pulled back to the .618 from its entire run higher from November of last year. Uber had also pulled back to a .382 of its entire run from the Covid lows from March of 2020. This is a nice area of confluence at about $45, which also correlates to the high from the week of November 2nd. Uber is now running into an area that was support at about $50; we want to see it trade through this area with volume.
Companies reporting earnings that are on our radar this week:
Tonight: Nordstrom (JWN), Toll Brothers (TOL), Urban Outfitters (URBN) after the close
Wednesday: Abercrombie & Fitch (ANF), Dick's Sporting Goods (DKS) before the open; American Eagle (AEO), Nvidia (NVDA), Workday (WDAY) after the close.
Thursday: BestBuy (BBY), Burlington Stores (BURL), Dollar Tree (DLTR), Dollar General (DG) before the open; Costco (COST), Dell (DELL), Gap (GPS), Ulta Beauty (ULTA), Salesforce (CRM) after the close.
Friday: Big Lots (BIG), Hibbett sporting (HIBB) before the open.
Stay tuned for updates!
DIS is trading at $174.31. We bought DIS at $118.63. Disney has pulled back right to the .382 of their run from the November lows, and has bounced nicely back above that area. Look for this area to hold support. The next stop for Disney is $183.40, which acted as support, and may now be an area of resistance as we trade up to that level. Disney still has a long way to go to get back to business as normal, with parks and movie theaters still far off their pre-pandemic levels. Over the next 3-6 months look for Disney to accelerate their openings and the stock should begin to recognize that transition.
CRM is trading at $226.99. We bought CRM at $215.35. CRM had a nice sign of strength last Wednesday (May 19th) with higher price and more than 8 million shares traded. Next stop for CRM is the $240 area. CRM reports numbers this Thursday, May 27.
WMT is trading at $141.76. We bought WMT at $140.91. WMT accelerated higher last week on strong earnings, yet pulled back as the market told us all that a lot of that was already factored into the stock price, and it's all about what comes next. WMT jumped above the recent area of resistance we've been talking about, at about the $140 level, and now it will need to show some strength as it looks to trade through the gap area left from their last earnings in February. continues to bump into resistance at about the $140 price point, which correlates to the gap left open from their last earnings announcement. WMT is out with their numbers tomorrow before the open. WMT also has a dividend yield of 1.55% right now at this price level. WMT continues to look strong and well positioned to benefit from stimulus as the country opens back up.
MCD is trading at $231.91. We bought MCD at $216.91. MCD closed yesterday exactly at the previous high from October. MCD is in an ABC up formation which will take it up to $255.76. MCD passed its B point the week of April 5th 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 is consolidating near its B point before trading higher. MCD has a dividend yield of about 2.22% right now at this price level.
UBER is trading at $50.03. Uber has bounced nicely from its recent low of $43.17 just 13 days ago. Uber had pulled back to the .618 from its entire run higher from November of last year. Uber had also pulled back to a .382 of its entire run from the Covid lows from March of 2020. This is a nice area of confluence at about $45, which also correlates to the high from the week of November 2nd. Uber is now running into an area that was support at about $50; we want to see it trade through this area with volume.
Companies reporting earnings that are on our radar this week:
Tonight: Nordstrom (JWN), Toll Brothers (TOL), Urban Outfitters (URBN) after the close
Wednesday: Abercrombie & Fitch (ANF), Dick's Sporting Goods (DKS) before the open; American Eagle (AEO), Nvidia (NVDA), Workday (WDAY) after the close.
Thursday: BestBuy (BBY), Burlington Stores (BURL), Dollar Tree (DLTR), Dollar General (DG) before the open; Costco (COST), Dell (DELL), Gap (GPS), Ulta Beauty (ULTA), Salesforce (CRM) after the close.
Friday: Big Lots (BIG), Hibbett sporting (HIBB) before the open.
Stay tuned for updates!
ES Daily
VIX daily
DIS Daily
UBER Weekly
UBER Daily
WMT Daily
MCD Daily
CRM Daily
Options Trades:
None active
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $141.76. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $226.99. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $174.31. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $50.03. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $231.91. 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 $141.76. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $226.99. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $174.31. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $50.03. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $231.91. Stop is $189.50.
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