Thursday, June 2, 2022

👀We’re Not Out of the Woods Yet – Keep an Eye Out for These Two Opportunities👀

Good morning. Jamie Dimon, CEO of JPMorgan Chase (JPM), helped fuel a drop in stocks yesterday as...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Jamie Dimon, CEO of JPMorgan Chase (JPM), helped fuel a drop in stocks yesterday as he warned that investors should prepare for a financial hurricane. With interest rates being raised into a slowing economy, and with supply chain problems gripping the world, the analysis is fairly spot on, even as stocks have had a relief rally. However, it may be more astute to say that we're already in such a hurricane.

The statement is a reminder that traders should continue to look for some downside opportunities with selected put option trades. But given the extent of the pullback, and an increase in insider buying, taking a longer-term view towards industry-leading companies that have been overly beaten down is also a strategy likely to pay off in time.

Now here's the rest of the news:

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MARKETS
DOW 32,813.23 -0.54%
S&P 4,101.23 -0.75%
NASDAQ 11,994.46 -0.72%
*As of market close
Stocks turned lower again on Wednesday, shaking off morning gains.
Oil traded flat, closing at $114.94 per barrel.
Gold rose 0.2 percent, ending the day at $1,851 per ounce.
Cryptocurrencies generally slid, with Bitcoin at $30,104 at the market close.

Today's TOP TIPS
Continue to Stick with Leading Growth Names When Buying Amid the Tech Rout

While the latest bear market may not be over, traders can start targeting top companies likely to recover in time and outperform the market on the next leg up. One way to do that is to find tech companies that underperformed the market on the way down… even as they've continued to grow.

For many tech companies, that may mean finding a high profit margin or strong revenue growth in today's environment.

» FULL STORY


Insider Trading Report: Old Republic Insurance (ORI)
Lisa Caldwell, a director at Old Republic Insurance (ORI), recently bought 9,920 shares. The buy increased her stake by 1,262 percent, and came to a total purchase price just over $234,000.

This is the first insider activity at the company since March, when two directors also purchases shares. Generally, company insiders have been buyers of shares over the past three years, with some major holders acting as major sellers.

» FULL STORY

Unusual Options Activity: Air Products and Chemicals (APD)
Shares of specialty chemical company Air Products and Chemicals (APD) have been on the decline. One trader is betting on a rebound in the coming months.

That's based on the September $280 calls. With 106 days until expiration, 10,301 contracts traded compared to a prior open interest of 141, for a 73-fold jump in volume on the trade. The buyer of the calls paid $2.95 to get in.

» FULL STORY

IN OTHER NEWS
Gas Prices Hit Record High

Gas prices have risen another 5 cents compared to a week ago, hitting a national average of $4.67 per gallon, according to AAA. Prices at the pump are now up another 48 cents in the past month. Some states are seeing averages in the $5 per gallon range, with California averaging out at $6.19.
Job Openings Show Major Decline

Job openings dropped by 455,000 in April, with overall hirings and quits unchanged compared to the prior month. There still remains a job gap between vacancies and available workers, with 5.46 million more job listings than unemployed workers right now.
US Boosts Economic Ties to Taiwan

The US is moving forward with plans to increase trade and supply chains with Taiwan. Increased bilateral trade in areas such as digital trade and clean energy technologies are a priority in this latest round of trade talks. The move comes as the US has reiterated its military commitment to Taiwan, even amid rising tensions with China.
OPEC Considers Suspending Russia from Output Deal

Oil cartel OPEC is currently making production agreements based on the input of non-member Russia. However, some members have explored the idea of exempting Russia from an agreement to raise oil-production targets. Russia has failed to meet its output quotas following sanctions against the country.
SoftBank Leads Funding Round in InfStones

SoftBank Vision Fund 2 has led a $66 million investment round for InfStones. The startup is looking to build applications across a number of blockchain platforms. This is another sign that interest in the crypto space continues, even as the price of many cryptos is now down over 50 percent from their recent highs.

S&P 500 MOVERS
TOP
CRM 9.879%
BKR 3.974%
HPQ  3.862%
HES 3.559%
COP 3.017%
BOTTOM
ALB 7.795%
MCO 6.363%
MOS 6.096%
PARA  5.768%
IDXX 5.615%

Quote of the Day
It's best to wait and see how the next quarter shakes out. When we get into late July, we'll have a better picture. Until then, I think we're going to see very much a choppy market with a bias towards falling further into a bear market.
- Max Gokhman, chief investment officer at AlphaTrAI, on why investors should stay cautious over the next few months, as data will likely remain mixed for several more months.

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