Weekend Wrap Up for 10/06/2019

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 10/06/2019 by Jon Johnson Editor, [Investment House Daily]( , [Technical Traders Alert]( & [Success Trading Group]( [Traders are Cashing In on New U.S. Artificial Intelligence Initiative]( An amazing opportunity recently popped up for investors… Business Insider proclaims the United States will fund a new $3.9 billion commitment to artificial intelligence over the next five years. Yet, that’s a mere drop in the bucket compared to the many billions more coming soon. Today, you’re on the ground floor… As the floodgates of cash open wide, traders will ride the waves to make big gains from short-term plays... and this new FREE e-book shows you how to multiply those fast returns up to 10 times more than a stock investment, by using simple options. [Click here now]( to claim your copy. [Click Here to Read More...]( 1. Market Summary [Jon Johnson] Excerpted from Thursday's paid content of ["Investment House Daily"]( by Jon Johnson. Stocks Plunge Post Poor Manufacturing Report - There was a soft start and then a plunge after the release of the Institute for Supply Management (ISM) Services report. - It is nice to see the market act as it should, i.e. without the Fed. At least, we think without the Fed... - ISM Services holds above 50, but missed expectations. Factory orders and durables are as expected even if they are somewhat weak and capital spending has dropped by 0.4%. - Rebound internals are weak, suggesting a relief move. However, we can still make some money on the upside. - We are swinging for singles and doubles on a bounce, not home runs. - Will the Fed let the market work its cycle or will it mess things up again? - We are playing the bounce in anticipation of more downside to come. The session played out pretty much as expected, even though it took a rattling by a weaker-than-expected ISM Services report to get the indices down to test that 200-day SMA. After that, an oversold bounce and a short covering rally ahead of the September jobs report soon ensued. The rebound moved the indices from modestly lower to sharply lower with the Dow off 357 points on the low and undercutting the 200-day SMA. The NASDAQ found the 200-day SMA as well, dropping 185 points on the low. That selling was enough for the market to get sufficiently oversold in the 2.5 session drop (that actually started during the prior week) and rebound. The jobs report was released before the markets opened on Friday, and as jobs tend to lag, there is the possibility that the report provided no signal that the economy is slowing. It won’t be an accurate economic signal, but right now, the markets live in fantasy land and imbue data with certain meanings that they do not really have. Index Discussion: Look at the S&P500, DJ30, NASDAQ and the XLK. They all failed to put in higher highs during the last rally, unlike what they did during the prior move. For instance, the S&P 500 put in a higher high from April to May and then again in July. However, it failed to do so in September and rolled over. The trajectory of the NASDAQ is even clearer. The PHLX Semiconductor Sector (SOX) is the outlier, and it is important as it put in an intraday new high, reversed and tried to put in a higher low. Its uptrend is still intact even though it certainly looks as if it is setting up that same upward pointing wedge that the other indices broke down from. NOTE: The figures and information above are from the 10/3 report. [Watch Market Overview Video]( [Watch Next Session Video]( NOTE: The videos are from the 10/2 report. [Click Here to Read More...]( 2. Targets Hit With the market primed to sell, and with the assumption that the Fed will quit buying bonds and let it do so, most of the trading action remained on the downside. We took some gains on Wednesday and again early on Thursday due to the selling as we were anticipating an oversold bounce once the NASDAQ and the DJ30 hit the 200-day SMA. It paid off. Here are three completed trades from Investment House Daily, which offer insights into our trading strategy and the targets that we have hit this week: Health Insurance Innovations Inc. (NASDAQ:HIIQ): There was an opportunity to make money even during the selling. HIIQ is a stock that set up a big triangle with a double bottom from August to early September. It broke higher, moved through the 50-day estimated moving average (EMA) and then tested the upper trend line in the triangle. Then, it faded to the 50-day EMA inside the triangle and showed a doji. We really like that kind of entry, i.e. the higher low at a key support level in a triangle or trading range usually leads to a breakout. So, when HIIQ gapped to the upside through the trend line during the next session, we entered with some stock at $23.85 and some November $25.00 call options for $2.80. HIIQ paused during the next session, which is not uncommon after a gap, and then started to rally. It even walked right up to near the 200-day SMA and showed a doji in the last hour of trading. We opted to sell half the position. That is, we sold some stock for $26.02 and banked a 9% gain. We also sold half the options for $3.60 and banked a 27% gain. While this is not huge, it was solid for a week in the stock. Pinterest Inc. (NYSE:PINS): During the prior week, we took a nice 75% gain on half of our put options. Since PINS was selling hard, we left the other half to see if it would drop on down to that May low. It started heading that way on Monday and then it reversed and went flat. Dang. While the stock held its ground on Tuesday, it gapped lower and sold on Wednesday. However, it also started to hold and climb. We then sold the rest of the options for $3.55 (which we had purchased for $2.00) and banked a solid 77.5% gain. Starbucks Inc. (NASDAQ:SBUX): We put SBUX on the report on 9/21 as it had broken through the 50-day MA after a weak test of the July high failed. It sold through the 50-day MA and then worked laterally into the third week of September. It looked ready to move lower and to continue moving sideways. This meant that it was literally up one day and down the next as the mood regarding the U.S.-China trade dispute changed during each session. Finally, it made a meaningful break lower on 9/27 and we moved in with some November $90.00 put options for $4.45. As is often the case, when a downside play finally makes its move, it makes it fast. SBUX dived lower on 9/20, paused with a continuation doji on Monday and then moved towards the downside. On Wednesday, it was close to the target. When it broke lower on Friday, it hit the target. We sold the options for $7.40 and a 66% gain. Now, we plan to let it bounce up to the 10-day EMA and play it towards the downside again as there is a lot of downside room to sell. [Receive a risk-free trial to Investment House Daily and save 50% by clicking here now!]( [How Many of These Critical Retirement Decisions Will You Get Right?]( Recently, America’s top-rated expert on retirement planning completed new research on what he considers the seven most critical retirement decisions a person can make. Get them wrong and you’ll find yourself in the poorhouse. Get them right and you’ll find yourself cruising the Caribbean with a pile of dividend checks waiting for you. [Click here now]( to see what the decisions are, and learn how to make the right choices. [Click Here to Read More...]( 3. Pick of the Week URBN (Urban Outfitters--$27.49; -0.68; optionable): Apparel Stores EARNINGS: 11/19/2019 STATUS: URBN is one of those lagging retailers that just recently started coming off its low. Firstly, it formed an inverted head and shoulders in August at the bottom of the base and broke higher through mid-September. It then broke over the 200-day SMA on Monday with some strong volume. Now that it has cleared that resistance, there is some maneuvering room as the market makes its relief bounce. On Wednesday, URBN tested the 200-day SMA on lighter trade. We want to play the move back up through our buy point. A move to the target will give us a gain of around 14% on the stock and a gain of 90% on the options. VOLUME: 2.907M Avg Volume: 3.535M BUY POINT: $27.61 Volume=4M Target=$31.49 Stop=$26.39 POSITION: URBN NOV 15 2019 27.00C - (51 delta) &/or Stock [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 Lattice Semiconductor Corp.(NASDAQ:LSCC) -- Lattice Semiconductor Corp. is currently trading at $18.70. The Nov. 16 $17.50 Calls (LSCC20191116C00017500) are trading at $2.30. That provides a return of about 13% if LSCC is above $17.50 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]( The foregoing is commentary for informational purposes only. All statements and expressions are the opinions of Eagle Products, LLC, or Caron Broadcasting Company. This information is not meant to be a solicitation or recommendation to buy, sell, or hold securities. We are not licensed or registered in the securities industry. The information presented herein and on the related web site has been obtained from sources believed to be reliable, but its accuracy is not guaranteed. The security portfolios of writers for this issue may, in some instances, include securities mentioned herein and on the related web site. Estimates, assumptions and other forward-looking information are subject to the limits of forecasting. Actual future developments may differ materially due to many factors. No one associated herewith receives compensation in any manner from any of the companies that are discussed in this newsletter or on the related websites. This is a commercial email. It may contain advertisement or solicitation. This email was sent to {EMAIL} because you are subscribed to the Investment House Weekend Wrap Up List. To unsubscribe please [click here](. View this email in your [web browser](. All Rights Reserved. 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