Buy, Buy, Buy!

You might think it’s early, but I’m already hard at working prepping for Independence Day festivities on Lake Superior.

I have to get ready for a crowd of family and friends at my lake compound. As always, no one goes hungry on my watch!

As the grill master, I’m not content to serve just burgers and brats. In fact, I’ve already spent $600 at the meat wholesaler to get ready for the Fourth. It all comes back to commodities! This time is no different. The meat selection at the local grocery stores is poor right now due to supply chain disruptions related to the virus shutdowns. So I went directly to the source. The lower quality and higher cost of inferior meat made me mad enough to take things into my own hands…

ALTTAG

Steak, anyone?

I just spent half a day butchering and trimming boxed beef cuts of hanging tenders and outside skirt steak. Then there’s the 20-pound ribeye (pictured above), out of which I’m hand-carving my own steaks. Trust me, no one at my cookout will be asking “Where’s the beef?”

As you’ve probably already guessed, I take my meat very seriously… and I enjoy every minute of it! Most consumers have totally forgotten about the ranch-to-table process since the grocery stores now do the dirty work. But I highly recommend getting to know your food a little better!

But I’m no finished just yet. Next, I’m getting some seaweed shipped up north for the beach shrimp and clam bake. I don’t think I can use stuff from the Chicago shores…

Keep it In the Money,

Alan Knuckman

Alan Knuckman
Editor, In-The-Money

P.S. The CBOE trading floor reopened Monday, but with very strict admission policies in place. No space for me and my TV commentary. Hopefully we will be back in August!

Chart of the Day: What can stop this market?

Greg GuenthnerBuyers just won’t quit! In what has been a moderately choppy week for stocks, eager traders continue to pound the “buy” button.

In fact, I counted more than 60 optionable stocks that posted new all-time highs Thursday afternoon. Remember, we’ve been talking about how traders were freaking out as some volatility crept back into the picture over the past couple of weeks.

But they seem to be settling in as we approach the weekend, scooping up biotech stocks, China ADRs, and, of course, red-hot software and mega-cap tech names. That’s right — we’re seeing the big tech stocks outperform again. The more things change, the more they stay the same…

Just look at growing e-commerce superstar Shopify Inc. (NYSE:SHOP):

SHOP chart

SHOP wasted no time breaking out this week, capping off a five-day win streak with a 5% rally and new all-time highs. It’s now above $850. To put this in perspective, this stock was trading under $350 per share back during the worst days of the March coronavirus meltdown.

If you’re looking for strength in this market, you can’t go wrong with the tech sector…

Trading Tip of the Day

Don’t outsmart yourself!

Throughout this week, I’ve noticed another influx of analyst upgrades. The so-called professionals are out with countless new company reports, raising price targets and predicting more gains ahead for some of Wall Street’s strongest performers.

The only trouble is these were the same folks who were downgrading companies left and right just a couple of months ago. If you were following the underweight, equal weight, and overweight guidance, your portfolio has probably sunk underwater.

Trash the analyst reports and ratings. Most of them are nothing but contrarian indicators (if not totally useless for trading purposes). More information isn’t the answer – better information is what you should seek out when performing your market research.

— Greg Guenthner

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Alan Knuckman

Alan hails from the home of options trading in Chicago, where he began working as a clerk on the floor of the Chicago Board of Trade (CBOT). Beginning with his days on the floor, Alan’s worked with all aspects of the options markets for the past 25+ years.

Transitioning from a clerk to a floor...

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