Thursday, July 21, 2022

⏰Time to Ditch This Winning Trade?

Good morning. The market had an ugly first half of the year, but traders and investors who were...
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. The market had an ugly first half of the year, but traders and investors who were long on energy trades fared well. There was a recent pullback, but now prices appear to be moving higher once again.

Not so far. The data is starting to show that crude production is slowing, and that gasoline inventories are rising. With reduced demand during the traditionally-busy summer driving season, it's possible that energy prices are no longer a slam-dunk trade, at least for now. With investors still looking toward a recession, it's likely oil prices will see a continued decline in the months to come.

Traders may want to look at any bounce in energy stocks as an opportunity to take some profits, and only stay long on energy trades that offer considerable income to weather the increased uncertainty in the space in the months ahead.

Now here's the rest of the news:

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MARKETS
DOW 31,874.64 +0.15%
S&P 3,959.80 +0.59%
NASDAQ 11,897.65 +1.58%
*As of market close
Stocks traded higher again on Wednesday, with the Nasdaq up for a 4th day in a row.
Oil dipped 1.5 percent, closing at $102.61 per barrel.
Gold declined 0.9 percent, last going for $1,695 per ounce.
Cryptocurrencies continued higher, with Bitcoin at $23,655 at the stock market close.

Today's TOP TIPS
Don't Overlook Steady Income Plays in an Unsteady Market
The market may have hit a recent low in the past few weeks. Time will tell. Until we know more, uncertainty continues to reign. And many companies are now starting to report on the unusual conditions of the last quarter, which could lead to a further selloff.

Companies with a large international presence are noting the effect that the strong US Dollar is having on their international operations. That's leading to lower outlooks going forward.

» FULL STORY

Insider Trading Report: Energy Transfer LP (ET)
Richard Brannon, a director at Energy Transfer LP (ET), recently picked up 137,860 shares. The buy increased his holdings by just over 27 percent, and came to a total purchase price just over $1.3 million.

This is the first insider buy in months. Company insiders were more active buyers late last year and into the start of this year. Overall, there have been dozens of buys from directors and executives in the past three years, with only one insider sale.

» FULL STORY

Unusual Options Activity: Bristol Myers Squibb (BMY)
Shares of pharmaceutical giant Bristol Myers Squibb (BMY) are up about 10 percent over the past year. One trader is betting that shares will continue higher in the next month.

That's based on the August $70 calls. With 29 days until expiration, 6,809 contracts traded compared to a prior open interest of 129, for a 53-fold jump in volume on the trade. The buyer of the calls paid $4.23 to make the bet.

» FULL STORY

IN OTHER NEWS
Dollar Drops After Euro Parity

After the US dollar strengthened to reach parity with the Euro last week, the dollar is now starting to decline. The move has occurred as European countries are looking to pull back on their energy use to offset declining supplies, and as traders have been less fearful in recent trading sessions.
Putin Says Russia Will Honor Gas Commitments to Europe

Russian President Vladimir Putin says that his country is committed to supplying natural gas to Europe. However, he has warned that sanctions are impeding the ability to acquire components needed to maintain pipelines, including the Nord Stream pipeline that provides a significant percentage of Russian gas to Europe.
Mortgage Demand Drops to 22-Year Low

A combination of rising interest rates and inflation are reducing demand for housing. According to the latest data from the Mortgage Banker's Association, demand has now hit the lowest rate since 2000, a 22-year low. With mortgage rates nearly double compared to a year ago, the slowdown is likely still in its early stages.
Chipotle Closes Store Where Workers Filed to Unionize

Burrito chain Chipotle (CMG) is closing a store in Augusta, Maine. The company states that the company is too remote to the rest of its supply chain, however, it's also a store where workers voted to form a union last month. The move comes as employees at other food service companies have been unionizing in recent months.
DoorDash To Employ Dual ID Verification for Alcohol Deliveries

Food delivery service company DoorDash is building an in-app service that will allow users providing two IDs to obtain alcohol, provided they're over the age of 21. That is in addition to a pre-order ID verification feature. Drivers are also instructed not to complete deliveries to customers who already appear intoxicated.

S&P 500 MOVERS
TOP
CDAY  8.087%
MELI  7.687%
GNRC 7.676%
NFLX 6.5%
RCL 6.474%
BOTTOM
BKR 7.902%
ELV 7.483%
BIIB 5.916%
NEM 4.035%
NTRS 3.734%

Quote of the Day
The charts, as interpreted by the legendary Larry Williams, suggest that Wall Street has finally thrown in the towel and some powerful seasonal patterns are finally on the side of the bulls. I wouldn't be surprised if he's right again, meaning perhaps the bottom really is in.
- Jim Cramer, CNBC analyst, on why the market may be going through a summer rally, and potentially even a bottom if earnings season holds up better than expected.

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