Strong Grades for 3 Bank Stocks With Earnings on Deck
Momentum in the banking sector is building just as the biggest names in the industry are preparing to report earnings.
Meta’s AI Chip Plans Revealed: 8 Key Items Shaping the Stock Market Friday
SK Hynix’s IPO pricing, Micron’s spending, Delta’s earnings, and other headlines are moving stocks this morning.
Not Broadening Out
Despite pleas of broadening out, the equity market is teetering on a disbroadening.
Here were yesterday’s stats:
* $SPY -0.29%
* $QQQ +0.27%
* $IWM -0.89%
* $RSP -1.22%
To me, key to the broadening-out thesis would be continued strength in financials, which was nowhere to be found:
* $JPM -$8
* $C – $3
* $KRE challenging (to the downside) some important support.
Position: Short JPM (S), C (S)
Examining ‘Group Stink’
* And fading it…
I don’t own and am currently short (and have been recently short C, JPM, GS, MS, UBER, NFLX, homebuilders, etc.) some of the most consensus sectors.
I am long some of the most non-consensus sectors.
Consensus Longs:
* Memory: SanDisk ($SNDK), Micron ($MU), Intel ($INTC), AMD ($AMD), Applied Materials ($AMAT) (“it’s different this time”)
* Value Tech: Adobe ($ADBE), Oracle ($ORCL), ServiceNow ($NOW) and Nvidia ($NVDA)
* Tech With Biggest Moat: Apple ($AAPL)
* Value Industrial: Caterpillar ($CAT)
* Best Overall Value: Homebuilders
* Streaming: Netflix ($NFLX)
* Autonomous: Uber ($UBER)
* Entertainment: Disney ($DIS)
* Financials: JPMorgan ($JPM), Citigroup ($C), Goldman Sachs ($GS), Morgan Stanley ($MS)
* Frontier Exposure “For The Long Haul”: SpaceX ($SPCX)
Non-Consensus Longs:
* Cannabis: $MSOS, $VRNOD, $TRLV, $GTBIF, $GLAS
* Private Equity: Apollo ($APO), Blackstone ($BX), KKR ($KKR)
* Consumer Staples: Kimberly-Clark ($KMB), PepsiCo ($PEP), Procter & Gamble ($PG)
Positions:
Long MSOS (L), VRNOD (S), TRLV (S), GTIBF (S), GLAS (S), APO (S), BX (S), KKR (S), KMB (S), PEP (S), PG (S)
Short SPCX (VS), SNDK (VS), MU (VS), INTC (VS), AMAT (VS), AMD (VS), CAT (VS)
Covered Financial Shorts
I have covered my C ($C) $138.88 (-$2) and JPM ($JPM) $333.95 (-$5) shorts for a small profit this morning.
I plan to reshort on any strength.
Positions: None.
An Observation on ‘Newsy’ Events
* Trading opportunistically and dispassionately…
Yesterday, among other activity, we added to shorts in $GRNY, $C and $JPM.
I remain bearish.
Today’s ceasefire news will likely provide an opportunity to cover some shorts — something I like to do in a “newsy” backdrop.
I would anticipate reshorting the inevitable rallies than have followed a breakdown in negotitations with Iran.
Position: Short GRNY (L), C (M), JPM (M)
Chart of the Day: A Close Look at Bank of America as Earnings Approach
The stock is showing strong leadership with Q2 results out next week.
Morning Trades
In the premarket gaps/markups I shorted more C ($C) $145.01 and JPM ($JPM) $340.44 (both had price targets raised by UBS: C $150, JPM $384).
Adding to GRNY ($GRNY) and JOET ($JOET) shorts
Buying MSOS ($MSOS) more aggressively. And individual names.
Positions: Long MSOS L; Short GRNY M JOET S C M JPM M
Things I Did Today
Here are today’s things:
* Re-shorted indices — $SPY at $748.84 and $QQQ at $722.33.
* Added to $GRNY short at $27.87 — moved to large sized.
* Shorted $JPM $337.81 and $C at $142.90.
* Added to $MSOS at $4.77 and selected individual cannabis shares — $TRLV, $VRNOD, $GTBIF and $GLAS.
Position: Long MSOS (M), TRLV (S), VRNOD (M), GTBIF (S), GLAS (S); Short JPM (M), C (S), GRNY (L), SPY (S), QQQ (VS)
JPM Short Update
I moved to medium-sized short JPM ($JPM) (against my private equity longs) at $338.53.
Positions: Long BX S KKR S APO S; Short JPM M