Weekend Wrap Up for 10/18/2020

You are receiving this email because you signed up to receive Investment House's free e-letter Investment House Wrap Up, or you purchased a product or service from its publisher, Eagle Financial Publications. [Investment House Wrap Up] [IH Daily]( [Technical Traders Alert]( [Success Trading Group]( [About Jon]( In This Issue: - Market Summary - Targets Hit - Pick of the Week - Covered Call Options Play Weekend Wrap Up for 10/18/2020 by Jon Johnson Editor, [Investment House Daily]( [Technical Traders Alert]( & [Success Trading Group]( Sponsored Content [The $1K a Month Approach]( Markay Latimer is a trading mom on the go and needs to make her strategy fit her life. So she's created a new approach that targets $1K a month while trading just 30 minutes a day. She'll reveal how to follow her in an imminent briefing. [Catch it now by clicking here.]( [CLICK HERE...]( 1. Market Summary [Jon Johnson] Excerpted from Thursday’s paid content of [Investment House Daily]( by Jon Johnson. A Big Gap Lower to Near Support – Stocks opened the third selling session with a big gap lower... to near support. – The large amount of negative sentiment accompanying the early downside helped, along with a -10:1 breadth, to bounce stocks back upside. – As the third day of testing rebounded, we will be able see if the leaders will go ahead and make new breaks higher. Alternatively, they could put such a move off until next week and launch a run into some big earnings reports. The post-market headlines tell us that stocks closed lower for a third day (apparently small-cap and mid-cap stocks are not included in financial stations’ definition of "stocks") because of concerns over the U.S. stimulus and a COVID-19 spike in the European Union. That was during afterhours. Before the open, we were given a litany of reasons as to why the market is just bad: Valuations are way too high, whales are leaving the market, there is too much stimulus pessimism, the second virus wave, Goldman Sachs' decision to downgrade tech, the number of jobless claims is rising and just missed a 900,000 handle, figures from the Empire and Philly Purchasing Managers' Indices (PMIs) split the baby, with the former missing (10.5 vs. 14.0 expected vs. 17.0 in September) and the latter beating (32.3 vs. 16.0 expected vs. 15.0 prior). This is a veritable cornucopia of reasons to run from the market and then run some more. Yes, analysts said, the market has put in a good run off of the low, but they also said that it is stalling below its old highs and is likely forming a double top, or something of the sort, that will lead to another selloff. There is no doubt that stocks opened sharply lower with downside gaps. We are two days to the downside already, and I said that there would be at least one more day of downside, maybe two. This is the test I said that the indices would make before the run to the end of the year. It could have occurred at the old high, above the old high, like the PHLX Semiconductor Sector (SOX), or it could be here, below the high, after a second run off of the low that matched the first run. Voila, here we are. Technical Analysis: NASDAQ: The NASDAQ and NASDAQ 100 held and bounced. Volume was lower, however, and there was not a massive rush back into these stocks. There was no heavy selling in terms of volume, but there was also no surge on the way back up. Again, however, some late buying was to the upside. S&P 500: It gapped to the 10-day exponential moving average (EMA), undercut it and reversed to basically flat. There was no heavy selling as volume backed off, and we saw more of a good test lower than a rebound. Indeed, all of the selling volume over the past three days has been light. NOTE: The figures and information above are from the 10/15 report. [Watch the Investment House Videos For This Week Here!]( NOTE: The videos are from the 10/14 report. [[LIVE EVENT] The Surprise Winner of the Presidential Election]( Make no mistake about this… this presidential election may be the most important in the history of America -- not just politically, but financially. With both candidates having different views, which will affect the market, the stakes couldn’t be higher for investors. But under all this mess, there is a “surprise winner” that will be revealed in our live event. Join Wall Street veteran and “Millionaire Maker” Hilary Kramer for her FREE online event as she unveils eight pre-election trades that could make you 50% richer by Inauguration Day. [Click here]( now to reserve your spot for this information-packed presentation. [CLICK HERE...]( 2. Targets Hit The market rebound from the lows caught many investors by surprise, and they spent time piling into stocks. By doing so, they augumented the positions that we had purchased when stocks were showing good patterns in a pessimistic atmosphere. That gave us the opportunity to bank some strong gains. Here are some of the trades that Investment House Daily subscribers took gains in over the course of the past week: Laboratory Corp. of America Holdings (NYSE: LH): 50% gain on the options Fastly Inc. (NYSE: FSLY): 110% gain on the options Chewy Inc. (NYSE: CHWY): 16.5% gain on the stock, 65% gain on the options Nike Inc. (NYSE: NKE): 145% gain on the options Zendesk Inc. (NYSE: ZEN): 226% gain on the options Snap Inc. (NYSE: SNAP): 11% gain on the stock, 86% gain on the options Kirkland's, Inc. (NASDAQ: KIRK): 40% gain on the stock, 50% gain on the options Etsy Inc. (NASDAQ: ETSY): 98% gain on the options HubSpot Inc. (NYSE: HUBS): 60% gain on the options [Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!]( I love it when patterns are great, but pessimism is high. This is because, while many investors are frozen with worry or are turning the worry into selling, we can spot the stocks that have good patterns and show relative strength. We can then use the atmosphere of fear to set up entry points. When stocks show the buy signal, we move in. We did that in September and early October, and as a result, when people finally figured out that stocks were going back up, we benefited greatly. This is because they bought stocks that we held. As a result, we banked more strong gains over the course of the week. The following are some of those gains in Technical Traders Alert: Trade Desk Inc. (NASDAQ: TTD): 168% gain on the options QUALCOMM, Inc. (NASDAQ: QCOM): 41% gain on the options Roku Inc. (NASDAQ: ROKU): 112% gain on the options Amazon.com, Inc. (NASDAQ: AMZN): 37% gain on the options Fate Therapeutics Inc. (NASDAQ: FATE): 19% gain on the stock, 82% gain on the options Paylocity Holding Corp. (NASDAQ: PCTY): 182% gain on the options [Receive a risk-free trial to Technical Trader and save 50% by clicking here now!]( Here is one completed trade from the Success Trading Group, offering insights into our trading strategy and the target that we have hit this week: Chewy Inc. (NYSE: CHWY): This has been one of the hot retail stocks as of late. Thus, we have stacked some plays on CHWY as it rallies. For example, we often enter one day and take a 5% gain the next day. Then, if the setup is still there, we do it again. The most recent time that we executed this plan was this past week. CHWY launched on a good move off of the 50-day moving average (MA) two Thursdays ago. After an initial play, CHWY continued to display strong momentum. So, we bought the stock for $62.67. CHWY moved upward into the close. During the next session, CHWY continued higher and hit our target. Then, we sold the stock for $65.50 and banked a solid 4.5% gain over the course of a day. After this, CHWY pulled back to the 10-day EMA on Thursday and started to move up. We should have entered again -- the stock gapped sharply higher on Friday. Instead, we will look for the next opportunity to do so. After all, this stock gives us quite a few. Now is a good time to become a member of the Success Trading Group. The system is geared towards bringing you consistent, short-term gains of 5-10% and you can expect four to six trades every month. [To receive a risk-free trial and save 50%, click here now!]( [These Three Patterns Are Making Fortunes in Volatile Markets]( There’s a secret why the pros whet their appetites... When individual traders turn-tail and run. And it’s really quite simple. When the markets get volatile, they switch to the three trades that love whipsaws... And I’m going to show you the three different setups that exploit every market swing you’ll see. Here's the thing... I’m not charging you a dime to discover how to quickly bag double and triple-digit wins when the market goes crazy. But I am going to ask you to not watch this unless you are serious enough to commit 30 minutes to it. That’s how fast you can commit these three trading patterns to memory for life. I strongly suggest you [get them now.]( [CLICK HERE...]( 3. Pick of the Week SPOT (Spotify Technology--$266.95, +15.51) EARNINGS: 10/29/2020 STATUS: Cup with handle. SPOT broke higher on Tuesday on strong volume, as it surged out of a seven-week cup-with-handle base that it formed along the bottom of the trading range that it had started in July 2020. As this is a strong move, we are looking to enter as SPOT continues upside. We are looking at a move to the top of the range toward earnings. That move will give us a 60% gain on the options. VOLUME: 1.587M Avg Volume: 1.404M ENTRY POINT: $266.31 Volume=1.8M Target=$298.97 Stop=$259.47 POSITION: SPOT JAN 15 2021 270.00 Calls -- (54 delta) [To see the chart for SPOT, click here!]( [To receive all of Jon’s picks in Investment House Daily, click here now to start your risk-free trial and save 50%!]( --------------------------------------------------------------- 4. Covered Call Options Play Horizon Pharma Inc. (NASDAQ:HZNP) -- Horizon Pharma Inc. is currently trading at $79.33. The Dec. 19 $80 Calls (HZNP20201219C00080000) are trading at $6.70. That provides a return of about 12% if HZNP is above $80 by the expiration. [Learn more about our Covered Call Tables here!]( About Investment House: [Investment House]( Since 1999! Our investment newsletters are designed to reduce your research time and help you invest and trade profitably. Our strategies range in risk from rather conservative covered call writing, trading blue chip stocks, all the way to speculating with options to get quick triple-digit gains. Get to know Investment House with these premium investment services: [Investment House Daily]( [Investment House Daily Pro]( [Investment House Technical Traders Alert]( [Investment House Technical Traders Alert Pro]( [Success Trading Group]( To ensure future delivery of Eagle Financial Publication and emails please add financial@info2.eaglefinancialpublications.com to your address book or contact list. View this email in your [web browser](. 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