Rocket Equities & Options Report 07-25-22
Monday Report - July 25th, 2022
The S&P sits near 4,000 as we come into a very important week for earnings and economic data, along with an expected Fed hike of 75 basis points on Wednesday, which would bring the target range from near 0% to a range of 2.25%-2.50% in less than 5 months.
The last CPI we have is 9.1% from June. Don't expect the chairman to sound too dovish until we see some real data that would allow them to let up off the breaks. We get a chance at some of that data later this week, with 2nd quarter GDP out on Thursday morning, as well as PCE for June on Friday morning, along with personal income, spending, and consumption, and the UMich consumer sentiment ex. It's gonna be non-stop earnings and data all week long and we will know a lot more about this market by Friday than we do today.
We are selling our MCD position today as of this letter. It is currently trading at $249.89. MCD reports earnings tomorrow. MCD has performed well for us, and we have traded lower from an area of resistance at $255 and are heading lower dramatically today with the ES positive as of 1pm ET. On a weekly basis, all the volume in MCD has been at the recent lows from March of this year ($217.68), as well as May ($228.34), and June ($232.17). On a daily basis the volume is also at the lows, with the recent June low registering 7.2M shares, the most since March of 2021. Sell MCD to close our equity positions.
The 10 Year Note is negative 7 ticks at 119.21, with a yield of 2.82%. We had some wild action in the Note and Bond market last week. I expect we have not seen the end of lower price and higher yield just yet.
Notable earnings this week:
Tuesday: MSFT, GOOG, KO, GM, MCD, UPS, CMG, V, RTX, MMM, BXP
Wednesday: META, BA, ETSY, QCOM, F, TMUS, BMY, SHW, CAKE
Thursday: AAPL, AMZN, HON, MA, CMCSA, PFE, INTC, ROKU, MRK, NOC, HOG, HTZ, KDP, VLO
Friday: AZN, SON
Stay tuned for updates as earnings season kicks into full gear!
The last CPI we have is 9.1% from June. Don't expect the chairman to sound too dovish until we see some real data that would allow them to let up off the breaks. We get a chance at some of that data later this week, with 2nd quarter GDP out on Thursday morning, as well as PCE for June on Friday morning, along with personal income, spending, and consumption, and the UMich consumer sentiment ex. It's gonna be non-stop earnings and data all week long and we will know a lot more about this market by Friday than we do today.
We are selling our MCD position today as of this letter. It is currently trading at $249.89. MCD reports earnings tomorrow. MCD has performed well for us, and we have traded lower from an area of resistance at $255 and are heading lower dramatically today with the ES positive as of 1pm ET. On a weekly basis, all the volume in MCD has been at the recent lows from March of this year ($217.68), as well as May ($228.34), and June ($232.17). On a daily basis the volume is also at the lows, with the recent June low registering 7.2M shares, the most since March of 2021. Sell MCD to close our equity positions.
The 10 Year Note is negative 7 ticks at 119.21, with a yield of 2.82%. We had some wild action in the Note and Bond market last week. I expect we have not seen the end of lower price and higher yield just yet.
Notable earnings this week:
Tuesday: MSFT, GOOG, KO, GM, MCD, UPS, CMG, V, RTX, MMM, BXP
Wednesday: META, BA, ETSY, QCOM, F, TMUS, BMY, SHW, CAKE
Thursday: AAPL, AMZN, HON, MA, CMCSA, PFE, INTC, ROKU, MRK, NOC, HOG, HTZ, KDP, VLO
Friday: AZN, SON
Stay tuned for updates as earnings season kicks into full gear!
MCD Weekly
MCD Daily
ES weekly
NQ weekly
VIX Daily
10-Year Note monthly
Gold Weekly
Crude weekly
BTC Weekly
The bold blue line extending from the left is where BTC Futures started trading in 2017
Options Trades:
None.
Equity portfolio:
Long half position in MCD at $216.91. MCD is trading at $249.84. Sell MCD to close our position ahead of earnings tomorrow.
None.
Equity portfolio:
Long half position in MCD at $216.91. MCD is trading at $249.84. Sell MCD to close our position ahead of earnings tomorrow.
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