Rocket Equities & options Report 08-05-21
Thursday Market Report - August 5th, 2021
The market is near all-time highs across the board yet again as we come into an important economic data point with Non-Farm Payroll numbers due tomorrow at 8:30 am EST, which are expected to show about 870,000 jobs added in July. In June we added 850,000 jobs. Wage data will also be important to watch in tomorrow's numbers for any indication of inflation.
The action in the Notes and Bonds yesterday was remarkably volatile, even by today's standards. You had some fed speak causing rates to go from 1.12% to almost 1.2% on the 10-year in about 30 minutes. The 10-year yield currently sits at about 1.22% as of this afternoon.
Some of our equities have been particularly volatile this week, especially DIS & UBER, yet their volatility is a part of why we own them. We've had some steep pull backs in DIS & UBER as the Delta variant causes concerns over lockdowns yet again, but we will get over this period eventually and today's rebound in those particular stocks shows that.
There are a couple equities on my radar that could be setting up nicely for entry possibly tomorrow or Monday, yet I don't feel the need to step in as we are at highs and have an economic data point tomorrow morning that has the potential to make this market very nervous if it doesn't come in at expectations. Stay tuned for updates!
The action in the Notes and Bonds yesterday was remarkably volatile, even by today's standards. You had some fed speak causing rates to go from 1.12% to almost 1.2% on the 10-year in about 30 minutes. The 10-year yield currently sits at about 1.22% as of this afternoon.
Some of our equities have been particularly volatile this week, especially DIS & UBER, yet their volatility is a part of why we own them. We've had some steep pull backs in DIS & UBER as the Delta variant causes concerns over lockdowns yet again, but we will get over this period eventually and today's rebound in those particular stocks shows that.
There are a couple equities on my radar that could be setting up nicely for entry possibly tomorrow or Monday, yet I don't feel the need to step in as we are at highs and have an economic data point tomorrow morning that has the potential to make this market very nervous if it doesn't come in at expectations. Stay tuned for updates!
ES Daily
VIX
VIX continues to make lower lows and lower highs
10-Year Note
10-year was yielding 1.12% yesterday, and up to 1.22% today - very volatile
Gold Daily
BTC
DIS is trading at $176.58. We bought DIS at $118.63. Disney accelerated lower Tuesday before rebounding today from the $170 area (the .382 retracement level from the move that started in early November of last year), which we've been talking about is an area of strength for Disney. Disney reports numbers on August 12th.
DIS 5-minute Chart
DIS Daily
UBER is trading at $43.43. Uber came out with their numbers last night and traded sharply lower after hours before rebounding to positive territory today.
Highlights from their earnings last night:
Highlights from their earnings last night:
- 2Q Adj EBITDA loss of $509M vs. an estimated loss of $324.5M
- Uber forecasts 3Q Adj EBITDA loss of less than $100 million, moving towards profitability, much in line with expectations.
- Uber 2Q revenue $3.93B vs $3.72B expected.
- Uber 2Q bookings $21.90B vs. $20.93B expected
- Uber sees 3Q gross bookings $22B to $24B, Est. was $22.41B
- Uber had 101M monthly active-platform consumers for 2Q vs. 108.9M expected
- Part of the reason for their large adjusted quarterly loss was spending on drivers, which saw Uber add 30% more U.S. drivers from June to July, that will now allow them to pull back incentives in the coming quarters.
We want to see Uber get back above the $45 area with some volume. Uber had a nice rejection of lower price this morning, and now we want to see a continuation of that move higher. Uber will still be susceptible to the swings of COVID outbreaks, yet over time this risk will be eliminated.
UBER 5-Minute Chart
UBER Weekly
We have a nice bullish hammer forming on a weekly chart
WMT is trading at $145.04. We bought WMT at $140.91. WMT continues to trade higher from its recent lows. and just closed the gap left open from February, as well as climbing above its May highs. WMT could be forming an ABC, which could take it up to the $154 price area in the short term. WMT also has a dividend yield of 1.53%. WMT comes out with their earnings August 17th.
WMT Daily
MCD is trading at $234.99. We bought MCD at $216.91. MCD has pulled back into its consolidation area after making new all-time highs. 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%.
MCD Daily
CRM is trading at $250.51. We bought CRM at $215.35. CRM is heading towards its recent high of $253.50, and the next stop after that is all time highs above $280. CRM comes out with their earnings August 24th.
CRM 5-Minute Chart
CRM Daily
Options Trades:
None
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $145.04. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $250.47. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $176.58. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $43.43. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $234.99. Stop is $189.50.
None
Short Term portfolio:
None active
Long Term portfolio:
Long half position in WMT at $140.91. WMT is trading at $145.04. Stop is $125.31.
We are effectively long CRM at $215.35. CRM is trading at $250.47. Stop is $193.64.
Long half position in DIS at $118.63. Disney is trading at $176.58. Stop is $98.45.
Long half position in UBER at $31.50. Uber is trading at $43.43. Stop is $26.24.
Long half position in MCD at $216.91. MCD is trading at $234.99. Stop is $189.50.
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