Stormy Monday: Take $1500 Profit on Generac Holdings

Take the money and run!

I am recommending selling shares in generator manufacturer Generac Holdings, in which we recently opened a position ahead of the unfortunate developments in North Carolina.  As the new hurricane, Milton, is approaching Florida, the market is responding by bidding up the shares. It’s time to take the money and run.

• SELL - Generac Holdings (GNRC).  Bought 9/30/24: $157.55.  10/7/24 intraday price: $172.72. Return for this trade: $1518/100 shares (9.62%).

Stormy Monday

As I noted in this weekend’s Smart Money Trading Strategy Weekly, we are experiencing a Clash of the Titans, as the bond market is openly betting that the Fed is making the wrong move by lowering interest rates when inflation isn’t quite dead in the water.

This morning, as I’ve been fearing, the U.S. Ten Year Note yield (TNX) climbed above 4%. Some are suggesting that this is a bullish move because it’s a sign that there is no chance of recession now.  I’m not sure if that’s the correct conclusion.  And neither is the stock market.

On the other hand, the TNX price chart shows, the rebound in rates is well overdone, and likely unsustainable.  TNX is well outside its upper Bollinger Band, which means a reversal to the mean (lower yields) are likely, and not too far away.  In addition, the RSI is reaching the 70 area, which makes the trend likely to reverse.

Still, the New York Stock Advance Decline line (NYAD) has rolled over and looks set to test its 20-day moving average.  A break below the 20-day could take NYAD to its 50-day line. Such a move could well spark more aggressive selling.

One sector is attracting money, energy. So, this morning, I am adding an energy trade to the Momentum Plus portfolio.

Tomorrow, I will have a full update on the Extended Stay Portfolio, which is holding up quite nicely in this market.  If you’ve just discovered the Smart Money Passport, this is a good time to take that FREE preview or just make the leap to the FREE or PAID subscriber category.

In this issue, I am updating all the sell stops in the currently open trades in both the Momentum and Extended Stay Portfolios as we wait for further developments.

Still Skeptical? Here is a summary of the Momentum Portfolio’s return since its beginning.

Recently SOLD Momentum Stocks

·           SOLD - Generac Holdings (GNRC).  Bought 9/30/24: $157.55.  10/7/24 intraday price: $172.72. Return for this trade: $1258/100 shares (9.62%).

·           SOLD Aris Water Solutions (ARIS). Bought 9/23/24: $17.25.  SOLD 9/26/24:  $16.35.  Return for this trade: $90/100 shares (5.21%).

·        SOLD - Louisiana Pacific (LPX).  Bought 9/13/24:  $97.50.  9/23/24 intraday price.  $104.50. Return for this trade: $700/100 shares (7.94%).

·        SOLD Sterling Infrastructure (STRL). Bought 9/17/24: $130.05. SOLD 9/19/24 intraday price:  $139.60.  Return for this trade $955/100 shares (0.734%). 

·         SOLD - PulteGroup Inc. (PHM).  Bought 9/10/24:  $131.  SOLD 9/19/24 intraday price: 141.40.  Return for this trade: $1040/100 shares (7.93%).

·         SOLD– Duke Energy (DUKE).  Bought 8/30/24:  $113.50. SOLD 9/18/24:  $116. Return for this trade: $250/100 shares (2.2%).

·        SOLD - ProShares Ultra QQQ ETF (QLD) above $92.50. Bought 8/14/24: $92.50.  SOLD 9/6/24: $92.50. Return for this trade: EVEN.

·        SOLD - Aecom Technology (ACM). Bought 8/23/24: $97.50. 8/26/24 intraday price:  $98.60. SOLD 9/6/24: $95.  Return for this trade: (-) 260/100 shares (2.63%).

·        NVDA Straddle:

o   Leg 1 - CLOSED - September 13, 2024 $136 Call Option. Bought to open 8/26/2024:  $6.15.  SOLD to close. - 8/29/2024 intraday price: $1.79.  Return for this leg: - $436/contract (70%).

o   Leg 2 - CLOSED September 13, 2024 $123 Put Option Bought to open 8/26/24: $6.05.  SOLD to close: 8/29/24: $6.85.  Return for this leg:  $80/contract (+13.22%).

·        Buy to Open the Berkshire Hathaway Class B (BRK/B) October 18, 2024 $460 Call Option Up to $7. Bought 8/19/24: $6.39.   Bid/Ask on 8/26/24: $10.60/$10.80. Sell Stop: $9.50. Stopped out 8/26/24: $9.50. Return for this trade: $311/contract (48.6%).

·        SOLD Simon Property Group (SPG). Bought 8/9/24: $157.  SOLD 8/26/24 intraday price:  $167.89. Return for this trade: $1089/100 shares (6.93%).

·        SOLD - ProShares Ultrashort S&P 500 ETF (SDS). Bought 8/2/92: $23.93.  SOLD 8/8/24: $24.75. Return for this trade: $82/100 shares (4.26%).

·        SOLD Applied Materials (AMAT) Above $190.  Bought: 8/6/24: 190.05.  SOLD: 8/7/24: $183. Return for this trade: (-) $705/100 shares (- 5.%).

·        SOLD -  Sterling Infrastructure (STRL) above $120.  Bought 7/22/24: $120.03.  SOLD 7/24/24: $114. Return for this trade: - $603/100 shares (-5.02%).

·        SOLD: Morgan Stanley (MS). Bought 7/1/24: $98.10.  SOLD 7/15/\:  $107.85.  Return for this trade: $975/100 shares (9.93%).

·        Expired: Texas Instruments (TXN) July 19, 2024 $210 Call Option.  Bought to Open 6/12/2024: $2.03.  Return for this trade: -$203/contract.

·        Expired: Open the Builders First Source (BLDR) July 19, 2024 $175 Call Option up to $4.00.  Bought 5/24/2024: $6.50.  Return for this trade: -$650/contract.

·        SOLD Verizon Communications (VZ). Bought 7/18/24: $42.13.  SOLD 7/22/24:  Stop: $39. Return for this trade: - $313/100 shares (-7.4%).

·        SOLD Celestica Inc. (CLS). Bought 6/18/24: $58.75. SOLD 7/18/24:  $59. Return for this trade: $25/100 shares. Even.

·        SOLD SPX Corp. (SPXC). Bought 6/20/24: $141.35.  SOLD 7/12/24 $156.37:  Return for this trade: $1502/100 shares (10.7%).

·        SOLD Advanced Microdevices above $171.  Bought 7/5/24: $171.05. SOLD 7/11/24 $185.75.  Return for this trade: $1470/100 shares (8.6%).

·        SOLD – Cheniere Energy (LNG). Bought 6/24/24: $165.50.  Sold /28/24: $174.27.  Return for this trade: $877/100 shares (5.29%).

·        SOLD - Clearwater Analytics (CWAN).  Bought 6/5/24: $19.39. SOLD 6/25/24: $18.50. Return for this trade: $89 per 100 shares (-4.81%).

·        SOLD Direxion Semiconductor Bull 3x Shares.  Bought 6/10/24: $53.50.  SOLD 6/17/24:  $59.36.  Return for this trade:  $586/100 shares (9.05%).

·        SOLD - Micron Technology (MU) Above $130. Bought 5/24/24: $130.05. SOLD 6/12/24: $141.34. Return for this trade: $1129/100 shares (8.68%).

·        SOLD - Guidewire Software (GWRE) above $124.  Bought 5/20/24: $124.05.  SOLD 5/29/24 $115. Return for this trade: (-) $905 per 100 shares (-7%). 

·        SOLD - Micron Technology (MU) Above $124.50. Bought 5/15/24: $125.50.  SOLD 5/23/24: $128.50. Return for this trade: $300 per 100 shares $2.4%.

·        SOLD KB Home (KBH). Bought 4/24/2024: $66.05.  Intraday price 5/20/24: $72.88.  Return for this trade: $683 per 100 shares (10.34%).

·        SOLD Texas Instruments Inc. (TXN). Bought 5/6/22024: $180.05.  Intraday price 5/20/24: $196.62. Return for this trade at current price: $1662.57 per 100 shares (4.69%).

Thanks to everyone for your ongoing support.  I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters.  Special shout out to new members who now have access to the Sector Selector ETF Service, which is included, at no extra charge with your Buy Me a Coffee membership.

For active trading, short term trading strategies, check out the Smart Money Passport.

I also appreciate single coffees, which you can buy me here.

And if you like this post, hit the Like Button and Share/Restack it. It helps to spread the word.

You’re the music.  I’m just the band.