Sunday Night Weekly Recap July 21, 2024

Can we bring up a classic here? Anyone else remember when Jerry Garcia sang “What a longggggg, strange trip it’s beeeennnnn???? The markets felt like that this week for sure. Just when everyone was thinking ( it was printed everywhere ) that the tech wreck was settling down, boom, bamm and bang Batman, Microsoft-CrowdStrike managed to shut down the world, or tried to at least.

Rotations like we have had out of tech recently don’t happen this quickly usually, they don’t. Most rotations take time to “phase” and are more gradual. The Russell 2000 which turned 40 this year, saw it’s all time fastest gains ever made this week. Let that sink in for fast rotation.

I’ve said it before and I’ll say it again, this is why it’s a good idea to always have your Watch List updated, and that “Trade Management never goes out of style”

DHI and MSTR were both new additions and both performed for us this week. Again, stocks like those are why it’s so important to keep an updated W.L. and be ready to go when they move.

One that made our W.L tonight that is of particular interest is IRM. The AUG 16, 2024 Options are strong on the Call side. Currently they are sitting at 5,616 contracts for only one strike ITM compared to the Puts 520… Combine that with the I.V. Ranking on those longs which sits at an attractive 29.6. One more thing worthy of mention is that the DTC ( Days To Cover ) sits at 8.6.. Anything above 5 and we look at it is as a possible candidate for a short squeeze or short covering. We’ll have to see what the market offers us this week in the way of IRM. It’s not hard to see that this one builds boxes like we want to see, it could form another box here before lift off again. If it searches for Support here one shouldn’t be surprised if it finds it at the area of the 20 EMA.

As we do every Sunday night we show the Heat Maps for the past week, the past 4 weeks, and the last 12 weeks in that order. If you enjoy the content here please share it with a friend.

Invest wisely, live charitably and be well

Brother Bill