Rocket Equities & Options Report 07-19-21
Monday Report - July 21st, 2021
The market is trading lower this morning as yields are dropping fast. The 10 year Note is now yielding 1.219% as of about 8:45am this morning.
We got a nice short trade off last week using a put spread. We are going to let the market open this morning and see how we trade out of the gate. We may close this trade today. It did not take long to trade back to the lower boundary line of the channel that the SPY has been trading in. Our put spread goes from $437 to $428. The SPY is gonna open below $428 today, yet there will still be plenty of premium as we have 2 full trading weeks until expiration.
Earnings continue the start of the season this week, with the large tech stocks reporting next week.
We got a nice short trade off last week using a put spread. We are going to let the market open this morning and see how we trade out of the gate. We may close this trade today. It did not take long to trade back to the lower boundary line of the channel that the SPY has been trading in. Our put spread goes from $437 to $428. The SPY is gonna open below $428 today, yet there will still be plenty of premium as we have 2 full trading weeks until expiration.
Earnings continue the start of the season this week, with the large tech stocks reporting next week.
ES Daily
VIX
We have a higher high in the VIX for the first time in a long time this morning.
10-Year Note Weekly
We actually got a 1.228% low for the yield already this morning. Rate are moving fast and making new recent highs, correlating to lower yields. When factoring in the inflation numbers, you get a real yield of about -1.1%.
Gold Daily
DIS is trading at $176.19. We bought DIS at $118.63. Disney traded higher on last Monday with volume, breaking above the price point we had been talking about of $183.40 (The high from Dec 31st). Disney had a nice pop higher last week with the news coming out that their most recent movie "Black Widow" took in $60 million in just streaming revenue over the weekend release, and that's in addition to the $80 million domestic box office and $78 million internationally. This is the first time they've released numbers from Disney+ when it comes to releasing movies at almost a $30 premium price to their subscriber base.
DIS Daily
UBER is trading at $45.25. Uber is trading into its area of confluence at about the $45 area, which also correlates to the high from the weekly bar from November 2nd.
UBER Daily
UBER Weekly
WMT is trading at $140.70. We bought WMT at $140.91. WMT continues to trade higher from its recent lows and is looking to trade through the gap left open from their earnings in February. WMT has been struggling to get above the $145 area, which correlates to the gap left open from their earnings in February. WMT also has a dividend yield of 1.55% right now at this price level. WMT also has a dividend yield of 1.55% as of Friday's close.
WMT Daily
MCD is trading at $232.88. We bought MCD at $216.91. MCD traded to new all-time highs last week. 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 has a dividend yield of about 2.20% as of Friday's close.
MCD Daily
CRM is trading at $235.00. We bought CRM at $215.35. CRM pulled back last week but it's basically been a one-way trip to higher prices since May when it was at around $210. CRM has just pulled back to the .382 of the run it had higher. CRM was stuck in a downtrend channel line from the highs of $284.50, and it broke out of that channel May 28th, and came back and tested the channel line on June 3rd before trading higher. A former TFNN host, the channel king Bud Rolfs, used to explain this exact formation of how stocks break out of channel lines and this is a textbook case. Look for CRM to continue the run to the upside as it goes for its all time high of $284.50.
CRM Daily
Earnings on our radar this week:
Monday after the close: IBM (IBM)
Tuesday after the close: Netflix (NFLX), Chipotle Mexican Grill (CMG), United Airlines (UAL)
Wednesday before the open: Johnson & Johnson (JNJ), Coca-Cola (KO), Harley-Davidson (HOG), Verizon (VZ)
Wednesday after the close: Las Vegas Sands (LVS), Whirlpool (WHR), Texas Instruments (TXN), Equifax (EFX) after market close
Thursday before the open: Southwest Airlines (LUV), American Airlines (AAL), DR Horton (DHI), Abbott Laboratories (ABT), AT&T (T), Biogen (BIIB), Blackstone Group (BX), Crocs (CROX), Domino's Pizza (DPZ)
Thursday after the close: Boston Beer Co (SAM), Intel Corp (INTC), Capital One Financial (COF), Twitter (TWTR), Snap (SNAP)
Friday before the open: American Express (AXP)
Options Trades:
SPY $437 - $428 Put spread for $2.91. Expires July 28th.
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $140.66. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $235.00. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $175.60. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $44.94. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $232.30. Stop is $189.50.
Monday after the close: IBM (IBM)
Tuesday after the close: Netflix (NFLX), Chipotle Mexican Grill (CMG), United Airlines (UAL)
Wednesday before the open: Johnson & Johnson (JNJ), Coca-Cola (KO), Harley-Davidson (HOG), Verizon (VZ)
Wednesday after the close: Las Vegas Sands (LVS), Whirlpool (WHR), Texas Instruments (TXN), Equifax (EFX) after market close
Thursday before the open: Southwest Airlines (LUV), American Airlines (AAL), DR Horton (DHI), Abbott Laboratories (ABT), AT&T (T), Biogen (BIIB), Blackstone Group (BX), Crocs (CROX), Domino's Pizza (DPZ)
Thursday after the close: Boston Beer Co (SAM), Intel Corp (INTC), Capital One Financial (COF), Twitter (TWTR), Snap (SNAP)
Friday before the open: American Express (AXP)
Options Trades:
SPY $437 - $428 Put spread for $2.91. Expires July 28th.
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $140.66. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $235.00. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $175.60. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $44.94. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $232.30. Stop is $189.50.
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