DailyPlay Update – June 29, 2022

Yesterday was the cold, slap-in-the-face day that we know can come anytime.  And it stung.  The early strength seen in the lessening of Chinese Covid restrictions quickly disappeared into the ongoing story of rising oil prices, recession, and inflationary pressures – yada yada yada. The SPX got whacked for 2% on the day, closing 124 points off its intraday high. That doubly hurt, for not only did yesterday’s new BIIB bullish call spread collapse after we put in on, but copper also came off after an opening gap higher to then close down on the day (after we covered half early in the session).

For today, let’s look at the July 1 CLF $18/$21 call spread we put on two weeks back. We never got positive traction on this trade, and with it expiring on Friday I have the choice to simply exit it; roll it down to lower strikes, or let it expire worthless. Frankly, I’m apt for the latter, simply because it’s unclear to me if this is going to hold against support that it’s on right now; trade lower to where its weekly Lagging Line (in bold blue) hits its cloud bottom ($14.85 to $14.96 over the next few weeks) and then see if that holds; or just even heads lower than that. (We’re down 99% on the trade so selling it out now doesn’t pay.)

CLF – Weekly

Trading will likely thin out as the week goes on and we head into the 3-day holiday weekend.  It’s not too late to still cull your investment holdings of non-performing names to raise cash for better buying opportunities likely to come later this summer and fall.