Hi Traders,
Our first session of the 0 and 1 DTE intensive class on Wednesday was a huge success.
If you didn't join, here's the good news: Today Licia and I are putting on a live trade, and you have the chance to join us. If you're not registered to join us at 2 pm today, change that.
It's official. The S&P 500 closed at a new all-time high.
I didn't anticipate the SPX doing this while we're in the middle of a blockade against Iran, oil still sky high, and the economy softening. But here we are.
So what's pushing the S&P 500 so high? It's not just on the backs of Mag 7 names.
Energy, while weaker of late, is still quite strong. Tech is catching a bid, including some of the OLD tech names like Intel (INTC). Even some of the battered areas are picking up. Financial Select Sector SPDR Fund (XLF) and iShares Expanded Tech-Software ETF (IGV) have been on a heater this week.
Just take a look at the move Microsoft (MSFT) has made over the past few days.
After getting absolutely smacked over the last few months, both MSFT and Amazon (AMZN) are taking off.
As Tim Colby and I discussed on Monday, the markets have moved on from Iran and are now looking at earnings. We have a ton of earnings hitting the tape on a daily basis. What the MegaCap stocks have to say is going to loom large, and it starts with Taiwan Semiconductor (TSM), which is quietly the same size as Meta Platforms (META) and bigger than Tesla (TSLA).
With the market at new highs, we're at a breaking point: we either completely take off or roll back over. And here's some food for thought: what if a peace deal is a top, not a bottom?
The One I Love
I know it's sitting at an all-time high, but the stock with the most aggressive call option buying out there is Intel (INTC). I'm seeing buyers of calls at the 65, 70, and even on the June 80 calls. Earnings are coming soon, but I'm almost certain this one is going to visit 70 dollars a share before those earnings are reported.
The One I Hate
I don't understand the move higher in Super Micro Computer (SMCI). There is absolutely no positive news coming from that company right now: just dead silence. I firmly believe this is going to cascade further. I like this one as a buy-and-hold put play as we wait for the fallout.
Mark Sebastian